Ararat Rural City Council Draft Budget 2017/18 · Ararat Rural City Council Draft Budget – 2017/18 4 Executive summary Council has prepared a Budget for 2017/18 which is aligned

Ararat Rural City Council Draft Budget – 2017/18 1


Contents Page

Message from the Mayor and Chief Executive Officer 3

Executive summary 4

Budget reports

1. Link to the Council Plan 8

2. Services and service performance indicators 10

3. Financial statements 29

4. Financial performance indicators 36

5. Other budget information (grants and borrowings) 38

6. Detailed list of capital works 40

7. Rates and charges 43

Budget analysis (best practice and optional)

8. Summary of financial position 48

9. Budget influences 51

10. Analysis of operating budget 53

11. Analysis of budgeted cash position 59

12. Analysis of capital budget 62

13. Analysis of budgeted financial position 66

Long term strategies

14. Strategic resource plan 70

15. Rating information 72

16. Summary of other strategies 76

Appendices

A Fees and charges schedule 79

B Budget process 96


Message from the Mayor and Chief Executive Officer It gives us great pleasure to present the Budget 2017/18 to the Community for comment and public submissions. This budget builds on our Council Plan 2017-2021 vision which focuses on the following four pillars - Our Community, Our Lifestyle, Our Economy, Our Environment; and one foundation - Our Organisation The Council Plan 2017-2021 (Year 1), sets out our strategic plan to deliver our vision over the full term of the Council. As this is the first year of the current Council term, the focus over the next year will be on planning and design activities to deliver current commitments. The proposed budget details the resources required over the next year to fund the large range of services we provide to the community. It also includes details of proposed capital expenditure allocations to improve and renew our Council’s physical infrastructure, buildings and operational assets as well as funding proposals for a range of operating projects. As Council, it is our job to listen to community sentiment and understand your priorities. During and following the Council elections in 2016 we have consistently heard that Council’s services are valued by the community, and that Council also needs to be financially responsible and keep its rates as low as possible. In response, Council has continued an enterprise wide approach to identify savings that don’t impact on its services, to provide increased value for money to ratepayers. Council will continue to focus on identifying sustainable cost savings that will enable it to deliver on our Council Plan to deliver high quality, responsive and accessible services to the community The proposed budget proposes a rate increase of 2.0 per cent. This is in line with the Fair Go Rates System (FGRS) which has capped rates increases by Victorian Councils. To ease the impact on ratepayers and ensure users help pay for Council services, we are proposing to increase most fees and charges by 2.0 per cent, in line with projected inflation. The total Capital Works program will be $11.10 million. Of the $11.10 million in Capital funding required, $3.99 million will come from Council operations, $4.62 million from external grants, $0.07 million from community contributions, $1.00 million from loan borrowings, $1.17 million transferred from Council reserves and $0.25 million from asset sales. Highlights of the Capital Works program includes:

$5.81 million for buildings: – including the Ararat Arts Precinct and the buildings renewal

program.

$3.69 million for roads – Including road reconstructions, reseals, re-sheeting, bridge

improvements, culvert replacement and footpaths (including new kerb ramps for disabled

access)

$0.20 million for drains – Including road drainage replacement works.

$1.40 million for plant and equipment – Including major items of plant and vehicles.

The proposed budget was developed through a rigorous process of consultation and review and Council endorses it as financially responsible. I encourage you to read the remainder of this document, in conjunction with our Council Plan 2017-2021 and we look forward to receiving your submission. Cr Paul Hooper Andrew Evans Mayor Chief Executive Officer


Executive summary Council has prepared a Budget for 2017/18 which is aligned to the vision in the Council Plan 2017/2021. It seeks to maintain and improve services and infrastructure as well as deliver projects and services that are valued by our community, and do this within the rate increase mandated by the State Government. This Budget projects a surplus of $1.95 million for 2017/18, however, it should be noted that the adjusted underlying result is a deficit of $1.73 million after adjusting for non-recurrent capital grants and contributions (refer Sections 5 and 10.1).

1. Key things we are funding

1) Ongoing delivery of services to the Ararat Rural City community funded by a budget of $30.53 million. These services are summarised in Section 2.

2) Continued investment in Infrastructure assets ($3.89 million) primarily for renewal works.

This includes roads ($2.77 million); bridges ($0.56 million); footpaths and bicycle paths ($0.36 million); and drainage ($0.20 million). The Statement of Capital Works can be found in Section 3 and further details on the capital works budget can be found in Sections 6 and 12.

Strategic Objective 1: Our Community Construct the Ararat Men’s Shed.

Strategic Objective 2: Our Lifestyle Commence Ararat Arts Precinct Redevelopment.

Design and costing for Heritage Fountain Restoration.

Strategic Objective 3: Our Economy Completion of Ararat Freight and Logistics Study.

Request planning scheme amendment for Ararat Rural Heritage Study.

Strategic Objective 4: Our Environment Review and undertake essential works at McDonald Centre.

Design and planning for Willaura Hall access improvements upgrade.

Complete Recreation Reserve Irrigation System Projects, for Gordon Street Oval, Pomonal Recreation Reserve and Lake Bolac Recreation Reserve.

2. The Rate Rise

a. The average rate will rise by 2.0% in line with the order by the Minister for Local Government on 16 December 2016 under the Fair Go Rates System.

b. Key drivers

i. To fund ongoing service delivery – business as usual (balanced with greater service demands from residents)

ii. To fund renewal of infrastructure and community assets

iii. To cope with cost shifting from the State Government.

iv. To cope with a reduction in funding from the Commonwealth Government via the Victoria Grants Commission, caused by freezing of indexation of the grant

c. This is not a revaluation year. Valuations will be as per the General Revaluation dated 1 January 2016 (as amended by supplementary valuations).

d. The waste service charge incorporating kerbside collection and recycling will increase by 2% per property.


e. Note that for every $100 in taxes paid by Victorian residents, rates make up approximately $3.50. The other $96.50 goes to the State and Federal Governments.

f. Refer Section 7 for further Rates and Charges details.

3. Key Statistics

Total Revenue: $30.53M (2016/17 = $33.62M)

Total Expenditure: $28.58M (2016/17 = $26.92M)

Accounting Result: $1.95M Surplus (2016/17 = $6.69M Surplus)

(Refer Income Statement in Section 3)

Underlying operating result: Deficit of $1.73M (2016/17 = Deficit of $1.19M) (Refer Analysis of operating Budget in Section 10.1) (Note: Underlying operating result is an important measure of financial sustainability as it excludes income which is to be used for capital, from being allocated to cover operating expenses)

Cash result: $0.009M Deficit (2016/17 = $0.467 Deficit)

(Refer Statement of Cash Flows in Section 3) This is the net funding result after considering the funding requirements to meet loan principal repayments and the reserve transfers.

Total Capital Works Program of $11.10M (2016/17 = $15.30M) o $3.99M from Council operations (rates funded) o $1.00M from borrowings o $0.25M from asset sales o $4.62M from external grants o $1.17M from cash and reserves o $0.07M from community contributions

4. Budget Influences

External Influences

The 2017/18 Budget has been influenced by the following external factors:

The Victorian State Government has introduced a cap on rate increases from 2016/17. The cap for 2017/18 has been set at 2.0% (2016/2017: 2.5%).

CPI for Victoria is forecast to be 2.0% for the 2017/18 year (Victorian Department of Treasury & Finance, 2016-17 Budget Update).

The Victorian Wage Price Index is projected to be 2.5% in 2017/18 (Victorian Department of Treasury & Finance, 2016-17 Budget Update).

Council has renegotiated a new Enterprise Agreement during 2016/17. An allowance of 2% has been factored in to the budget for wage increases;

Receipt of significant capital works funding of $4.62 million for the Ararat Arts Precinct Redevelopment and the completion of Roads to Recovery projects

Ongoing cost shifting. This occurs where Local Government provides a service to the community on behalf of the State and Federal Government. Over time the funds received by local governments do not increase in line with real cost increases.

Councils across Australia raise approximately 3.5% of the total taxation collected by all levels of Government in Australia. In addition Councils are entrusted with the maintenance of more than 30% of the all Australian public assets including roads, bridges, parks, footpaths and public buildings. This means that a large proportion of Council’s income must be allocated to the maintenance and replacement of these valuable public assets in order to ensure the quality of public infrastructure is maintained at satisfactory levels.


The Fire Services Property Levy will continue to be collected by Council on behalf of the State Government with the introduction of the Fire Services Property Levy Act 2012.

Internal Influences

As well as external influences, there are also a number of internal influences which are expected to have a significant impact on the 2017/18 Budget.

Excluding municipal rates and waste collection charges, Council is only able to exert some control over approximately 4% of its income. Council relies heavily on raising rates to fund its services and facilities.

It is well recognised that Council provides a number of regional city type services such as performing arts centre, art gallery, Chinese heritage museum, indoor and outdoor pools, Alexandra Oval Community & Recreation Centre, but the rate revenue is derived from a small rate base. This has a flow-on effect, with higher recurrent operating costs associated with maintaining the key commercial areas at regional standard, including signage, footpaths, streetscape, cleaning and public conveniences.

As Council has limited ability to fund major capital works from its operating activities, Council relies heavily on government grants, loans and contributions from the community to fund the proposed capital works over the next four years.

Increased debt servicing costs as a result of new borrowings.


Budget Reports

The following reports include all statutory disclosures of information and are supported by the analysis contained in sections 8 to 16 of this report. This section includes the following reports and statements in accordance with the Local Government Act 1989 and the Local Government Model Financial Report.

1 Links to Council Plan

2 Services and service indicators

3 Financial statements

4 Financial performance indicators

5 Grants and borrowings

6 Detailed list of capital works

7 Rates and charges


1. Link to the Council Plan This section describes how the Annual Budget links to the achievement of the Council Plan within an overall planning and reporting framework. This framework guides the Council in identifying community needs and aspirations over the long term (Vision 2030), medium term (Council Plan) and short term (Annual Budget) and then holding itself accountable (Annual Report).

1.1 Planning and accountability framework The Strategic Resource Plan, part of and prepared in conjunction with the Council Plan, is a rolling four year plan that outlines the financial and non-financial resources that Council requires to achieve the strategic objectives described in the Council Plan. The Annual Budget is framed within the Strategic Resource Plan, taking into account the services and initiatives which contribute to achieving the strategic objectives specified in the Council Plan. The diagram below depicts the planning and accountability framework that applies to local government in Victoria.

Source: Department of Environment, Land, Water and Planning

In addition to the above, Council has a long term plan (Vision 2030) which articulates a community vision, mission and values. The Council Plan is prepared with reference to Council's long term Community Plan. The timing of each component of the planning framework is critical to the successful achievement of the planned outcomes. The Council Plan, including the Strategic Resource Plan, is required to be completed by 30 June following a general election and is reviewed each year in advance of the commencement of the Annual Budget process.


1.2 Our purpose Our vision

Our communities, our opportunities Our mission

We will demonstrate leadership through social responsibility, openness and transparency by actively working with our community to achieve shared goals. Our values

Respect - Respect for each other and the wider community. Excellence - Striving for ongoing professionalism and organisational excellence. Passion - Passion for our people, community and services.

1.3 Strategic objectives Council delivers activities and initiatives under numerous major service categories. Each contributes to the achievement of one of the four pillars and one foundation, as set out in the Council Plan for the years 2017-2021. The following table lists the four pillars and one foundation as described in the Council Plan.

Pillar/Foundation Description

1. Our Community We value our people and our community, their sense of place, resilience and connectedness and we target our services to meet their needs.

2. Our Lifestyle We strengthen the underlying community fabric by celebrating and nurturing the culture and heritage which defines our identity.

3. Our Economy We enhance our community’s prosperity through encouraging sustainable growth.

4. Our Environment We value our natural and built environment and want to manage, enhance and protect it, now and for future generations.

Our Organisation Our Council is open, fair and honest, engaging with the community to provide leadership and supporting our community through efficient and effective service provision.


2. Services and service performance indicators This section provides a description of the services and initiatives to be funded in the Budget for the 2017/18 year and how these will contribute to achieving the strategic objectives outlined in the Council Plan. It also describes a number of major initiatives, initiatives and service performance outcome indicators for key areas of Council’s operations. Council is required by legislation to identify major initiatives, initiatives and service performance outcome indicators in the Budget and report against them in their Annual Report to support transparency and accountability. The relationship between these accountability requirements in the Council Plan, the Budget and the Annual Report is shown below.

Source: Department of Environment, Land, Water and Planning

Services for which there are prescribed performance indicators to be reported on in accordance with the Regulations are shown in bold and underlined in the following sections.


2.1 Strategic Objective 1: Our Community Strategies to work with communities to develop and prosper

Provide community development support and facilitate partnerships.

Support service and sporting clubs to be inclusive and sustainable.

Support, develop and recognise the vital role and contribution of volunteers and achievers in our communities.

Pursue initiatives that promote learning, literacy and information needs of the community.

Support cultural group connections.

Provide leadership and focus towards achieving the outcomes of the Victorian Early Years Learning and Development framework.

Strategies to develop community services that are accessible, inclusive and responsive to the community’s needs

Work in partnership with government and other providers to ensure that family and child development services and programs are delivered.

Support and develop youth development programs and services.

Ensure Council’s services and facilities are accessible.

Active conversations with residents via a program of community engagement activities. Strategies to develop community safety

Support the community in emergency management planning, response, recovery and in the prevention and mitigation of risks.

Deliver public safety and health programs in accordance with relevant legislation.

Support police and other community safety programs including initiatives that prevent violence against women.

Promote and administer Council's Local Laws and other relevant legislation. To achieve our Community objectives (incorporating Community Development, Community Safety and Diversity and Inclusion) we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The initiatives, major initiatives and service performance indicators for each service category are described below. Major Initiatives

Provide the Ararat Men’s Shed. ($0.11 million net cost)

Initiatives

Review and redevelop two Community Action Plans

Implement the Small Towns Strategy

Advocate for Pedestrian Improvements for Western Highway/Elizabeth Park Service Performance Outcome Indicators Supporting Our Community

Service Indicator Performance Measure Computation

Animal Management

Health and safety

Animal management prosecutions (Number of successful animal management prosecutions)

Number of successful animal management prosecutions

Food safety

Health and safety

Critical and major non-compliance notifications (Percentage of critical and major non-compliance notifications that are followed up by Council)

[Number of critical non-compliance notifications and major non-compliance notifications about a


food premises followed up / Number of critical non-compliance notifications and major non-compliance notifications about food premises] x100

Home and Community Care

Participation

Participation in HACC service (Percentage of the municipal target population who receive a HACC service)

[Number of people that received a HACC service / Municipal target population for HACC services] x100

Participation in HACC service by CALD people (Percentage of the municipal target population in relation to CALD people who receive a HACC service)

[Number of CALD people who receive a HACC service / Municipal target population in relation to CALD people for HACC services] x100

Maternal and Child Health

Participation Participation in the MCH service (Percentage of children enrolled who participate in the MCH service)

[Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service] x100

Participation in MCH service by Aboriginal children (Percentage of Aboriginal children enrolled who participate in the MCH service)

[Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100

2.2 Strategic Objective 2: Our Lifestyle Strategies to develop community & cultural connectedness

Recognise cultural history and heritage.

Work in partnership with local service clubs and organisations.

Promote the municipality’s wine and food opportunities.

Support and develop local activities which activate spaces and enhance lifestyle.

Support community and cultural events.

Support Indigenous Heritage within our community. Strategies to respect our Sister City and Friendship Cities international relationships

Foster and further develop our Sister City Relationship with Taishan and our Friendship City relationships.

Strategies to develop promotion of regional living

Promote the proximity and location of our Municipality to Melbourne and major regional centres.

Promote regional living benefits.


Strategies to develop a strong performing and visual arts program

Promote the Ararat Performing Arts Centre as a major regional Performing Arts Centre, including the diverse performing arts program.

Promote the Ararat Regional Art gallery along with its nationally recognised textile collection.

Deliver an innovative, diverse and accessible program of exhibitions and associated events. Strategies to support participation in diverse sport, recreation and leisure activities

Pursue efficiencies in managing sporting and recreational facilities.

Encourage local and State organisations to deliver community based programs. Strategies to support Ararat Active City Strategy

Promote community health and wellbeing through the provision of recreation facilities and programs for all ages.

Provide and promote walking and cycling trails for recreation and commuter use.

Support schools and workplaces to be health promoting environments

Lead and participate in systems based approaches to wellness.

Promote the Ararat Active City pillars of Active Community, Active Economy and Active Lifestyle.

Support Healthy Eating/Active Living and Improving Mental Health as local priorities for Health & Wellbeing across the municipality.

Planning for passive and active public spaces.

Work with the Health Promoting Leadership Advisory Group to develop an Action Plan focussed on the goals of the community.

To achieve our Lifestyle objectives (incorporating Heritage/History, Arts and Culture, Regional living, Community Events, Sport and Recreation and Passive and Active Public Spaces) we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The initiatives and major initiatives and service performance indicators for each service category are described below. Major Initiatives

Commence Ararat Arts Precinct Redevelopment ($0.49 million net cost).

Design and costing for Heritage Fountain Restoration ($0.15 million net cost)

Complete Waterslide project at Ararat Outdoor Olympic Pool ($0.06 million net cost

Initiatives

Undertake planning and feasibility for Ararat Hills Mountain Bike and Trails Project.

Participate in the Grampians Region Cycling and Trails Master Plan

Complete planning and seek funding for the Ararat Skate and Recreation Link


Aquatic Facilities

Utilisation Utilisation of aquatic facilities (Number of visits to aquatic facilities per head of municipal population)

Number of visits to aquatic facilities / Municipal population

Libraries Participation Active library members (Percentage of the municipal population that are active library members)

[Number of active library members / municipal population] x100


2.3 Strategic Objective 3: Our Economy Strategies to develop a strong and diverse local economy

Work in partnership with businesses and organisations to develop and promote business activity.

Advocate for the active use and preservation of Aradale.

Pursue appropriate investment opportunities to diversify and strengthen the municipality’s economic base.

Encourage tourism, major events, business events and marketing initiatives through local and regional stakeholders.

Collaborate with other agencies in pursuing agricultural industry initiatives and innovation. Strategies to develop economic growth within the municipality

Promote Ararat Rural City as a regional living destination.

Support and encourage infrastructure, land use planning, events and services that support economic development and lifestyle opportunities.

Strategies to develop effective, efficient and safe transport networks

Advocate, plan and develop transport, road and pedestrian networks, services and connectivity between and within communities.

Advocate for increased passenger rail services from Ararat to Melbourne and return.

Maintain and develop roads, bridges and footpaths to agreed standards.

Plan and implement road safety and traffic control improvements.

Develop a freight strategy. Strategies to develop effective and efficient land use planning and building control

Develop and apply a Planning Scheme that facilitates land use and development to support the social, economic and environmental well-being of the municipality.

Provide a high quality and timely development application processing system.

Preserve local heritage through planning controls.

Incorporate integrated urban design principles in township planning to guide safe and active communities and support the existing character of townships.

To achieve our Economy objectives (incorporating Economic Activity, Tourism, Major Events, Digital Connectivity and Planning and Development), we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The major initiatives and service performance indicators for each service category are described below. Major Initiatives

Completion of Ararat Freight and Logistics Study (nil net cost)

Request planning scheme amendment for Ararat Rural Heritage Study ($0.03 million net cost) Service Performance Outcome Indicators Supporting Our Economy


Roads

Satisfaction

Satisfaction with sealed local roads (Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads)

Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads.



Statutory planning

Decision making

Council planning decisions upheld at VCAT (Percentage of planning application decisions subject to review by VCAT and that were not set aside)

[Number of VCAT decisions that did not set aside Council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications] x100

2.4 Strategic Objective 4: Our Environment

Strategies to develop attractive streetscapes, town entrances, parks and gardens

Develop and maintain Council owned and managed parks, gardens, playgrounds and open space.

Develop and maintain township entrances and streetscapes.

Provide and maintain public toilets and other amenities at established standards. Strategies to develop effective management of municipal waste and safe and effective disposal of domestic wastewater/stormwater

Manage and maintain stormwater infrastructure.

Plan and regulate on-site domestic wastewater disposal.

Deliver municipal waste and recycling collection services.

Provide and manage waste transfer stations.

Promote recycling, reuse and minimisation of waste. Strategies to provide community facilities that are planned, developed and maintained based on the needs and aspirations of the community

Maintain facilities for the benefit of the community within asset management and resource constraints.

Plan for the renewal of existing facilities through a prioritised approach by pursuing service and funding partnerships.

Strategies to support a protected and enhanced natural environment

Promote initiatives to conserve and enhance biodiversity and sustainable land management practices.

Identify and pursue initiatives to reduce greenhouse gases, energy and water consumption and to conserve water.

Strategies to support long-term asset management

Develop long term Strategic Asset Management Plans for all Council assets to manage current and future needs.

Manage and deliver a long term Capital Works Program to improve community infrastructure and facilities.

To achieve our Environment objectives (incorporating Building and Facilities, Environmental Sustainability, Natural and Built Environment) we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The initiatives, major initiatives and service performance indicators for each service category are described below. Major Initiatives

Review and undertake essential works at McDonald Centre ($0.16 million net cost)

Design and planning for Willaura Hall access improvements upgrade

Complete Recreation Reserve Irrigation System Projects, for Gordon Street Oval, Pomonal Recreation Reserve and Lake Bolac Recreation Reserve. ($0.04 million net cost)


Initiatives

Complete project evaluation for the Small Towns Wastewater Study.

Seek funding for Ararat Fitness Centre access improvements.

Plan for and make improvements to Town Entrance and way finding Signage Service Performance Outcome Indicators Supporting Our Environment


Waste collection

Waste diversion

Kerbside collection waste diverted from landfill (Percentage of garbage, recyclables and green organics collected from kerbside bins that is diverted from landfill)

[Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins] x100

2.5 Strategic Objective 5: Our Organisation

Strategies to develop good governance through leadership

Strengthen the role of Councillors by informing, resourcing, skilling and supporting them.

Ensure policies and good governance are in accordance with legislative requirements and best practice.

Support the Audit Committee to provide Council with pro-active management of corporate governance.

Work with our communities to encourage open communication and participation.

Pursue strategic alliances, regional partnerships, stakeholder forums and advisory committees that assist Council in policy development and service delivery planning.

Strategies to deliver services and infrastructure that meets the municipality’s existing and future needs

Identify infrastructure and service funding gap priorities and appropriate solutions and funding options.

Develop and maintain partnerships and advocate for improved service provision by government, the private sector and not-for-profit providers.

Strategies to manage Organisational Risk

Plan for and manage Council's strategic, reputational and operational risks.

Refine and implement a project management framework and processes to guide project prioritisation and delivery.

Strategies to develop professional and skilled staff in a safe and supportive environment

Implement a program of continuous improvement in service delivery.

Support employment opportunities such as traineeships, apprenticeship and tertiary course work placements.

Provide a safe and effective work environment.

Pursue the integration and management of information, communication and technology systems.

Exhibit a commitment to the organisational values of respect, excellence and passion. Strategies to develop sustainable, long-term financial management

Develop and maintain a financial planning, management and reporting system, that protects the long-term interests of the municipality.


Actively pursue external funding for Council's services, assets and operations. To achieve our Organisation objectives (incorporating Organisational Processes and Systems, Leadership and Governance, Health and Wellbeing, Financial Sustainability and Civic Events), we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The service performance indicators for each service category are described below. Service Performance Outcome Indicators Supporting Our Organisation


Governance Satisfaction Satisfaction with Council decisions (Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community)

Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community


2.6 Service Categories The service categories to deliver the initiatives are described below. The figures presented are based on the cash basis of accounting.

Planning & Public Health

Business Area Description of services provided

2016/17 Budget

Expenditure (Revenue) Net Cost

$'000

2017/18 Budget


$'000

Planning This statutory planning service is responsible for administering the Ararat Rural City Council Planning Scheme including the strategic land use and policy planning. The Department processes planning permit applications including subdivision compliance certificates and planning permit amendments. The Department also manages planning activities compliance. The Planning Department also considers new planning scheme amendment proposals and reviews the Municipal Strategic Statement of the Ararat Planning Scheme.

737 (171)

566

646 (91) 555

Building Control This service provides statutory building services to the Council community including processing of building permits, fire safety inspections, audits of swimming pool barriers and investigations of complaints and illegal works.

253 (170)

83

318 (200)

118

Environmental Health

This service protects the community’s health and well-being by coordinating food safety programs, Tobacco Act activities, oversees wastewater systems and installations. The service also works to rectify any public health concerns relating to unreasonable noise emissions, housing standards and pest controls.

145 (77)

68

155 (78)

77

Waste Management

This service provides waste collection including kerbside collections of garbage from all properties in the designated collection districts. This service provides kerbside collections of recyclable materials from residential properties in the designated collection districts. This service also manages the transfer stations situated throughout the municipality.

2,111 (2,436)

(325)

2,183 (2,513)

(330)

Natural Resources & Sustainability

This service promotes environmentally sustainable development principles, coordinates and implements environmental projects and works with other services to improve Council’s environmental performance. Reducing greenhouse gas emissions within Council operations and the community are a key priority through Council’s ongoing involvement in the Cities for Climate Protection

165 (55) 110

162 (50) 112



2016/17 Budget


$'000

2017/18 Budget


$'000

Plus program. Projects include roadside pest, plant and animal and renewable energy projects.

Waste Management Capital

This service includes capital expenditure on waste management.

170 (0)

170

170 (0)

170


Community Life


2016/17 Budget


$'000

2017/18 Budget


$'000

Community Development

This service provides for the employment of Community Development Staff who work with communities to develop community action plans and implement other community building initiatives. This service also provides for the amenity of public spaces including tree planting, street decorations and footpath cleaning.

378 (27) 351

400 (0)

400

Community Grants

This service provides grants to community organisations for projects, sponsorships and minor capital & community infrastructure.

114 (0)

114

114 (0)

114

Home and Community Care - Aged Services

This service provides a range of home and community care services for the aged and disabled including home delivered meals, personal care, transport, dementia care, home maintenance, housing support and senior citizen centre.

704 (645)

59

709 (599)

110

Home and Community Care - Commercial Care

This service provides a range of services on behalf of external agencies for the aged and disabled including home delivered meals, personal care, transport, dementia care and home maintenance. External agencies include Department of Veteran Affairs, Villa Maria and Grampians Community Health.

229 (220)

9

237 (235)

2

Children Services

This service provides family oriented support services including maternal and child health, immunisation and early childhood education and support. The service also provides baby capsule hire to residents.

197 (167)

30

239 (167)

72

Recreation Services

This service includes providing a range of recreational facilities including aquatic facilities, indoor (1) and outdoor swimming pools (3), employment of a municipal recreation officer. It also includes an operating grant allocated to operate the Ararat Fitness Centre. This indoor sports centre provides an extensive range of recreational programs and opportunities accessible to individuals of all ages, sexes and abilities which contribute to the general wellbeing of the community. This service also provides facilities maintenance grants for recreation reserves & public halls.

721 (2)

719

878 (28) 850

Art Gallery This service includes the operations, projects, exhibitions, acquisitions and administration of the Ararat Regional Art Gallery.

300 (99) 201

298 (97) 201

Library Services This service provides public library services at the Ararat Library and the Lake Bolac Business and Information Centre. This provides a customer focused service that caters for the cultural, educational and recreational needs of

354 (140)

214

358 (141)

217



2016/17 Budget


$'000

2017/18 Budget


$'000

residents and provides a focal point for the community where they can meet, relax and enjoy the facilities and services offered. A library outreach service is offered to residents in rural townships that involves library staff delivering ordered books.

Performing Arts Centre

This service operates and manages the performing arts centre which provides artistic programs for the region.

535 (163)

372

498 (105)

393

Community Development - Capital

This service provides for capital expenditure on Council's assets including buildings, streetscapes and footpaths based on community needs.

1,037 (0)

1,037

738 (0)

738

Recreation Projects - Capital

This service provides funding for various recreation projects, including pool safety improvements, facility upgrades and drought proofing works. It also provides for the loan borrowing costs associated with the Alexandra Oval Community & Recreation Centre and the upgrade to the Ararat Arts Precinct..

8,140 (7,630)

510

6,739 (6,183)

556

Library - Capital This service covers Capital works relating to Library Services e.g Library books.

58 (0) 58

58 (0) 58

Ararat Performing Arts Centre

This service covers Capital works relating to the Ararat Performing Arts Centre e.g sound equipment.

10 (0) 10

10 (0) 10


Operational Services


2016/17 Budget


$'000

2017/18 Budget


$'000

Infrastructure This service conducts capital works planning for Council’s main civil infrastructure assets in an integrated and prioritised manner in order to optimise their strategic value and service potential. These include roads, laneways, car parks, foot/bike paths, drains and bridges. This service undertakes design and supervision of various works within Council’s capital works program.

458 (0)

458

410 (0)

410

Property Maintenance

This service prepares maintenance management programs for Council’s property assets in an integrated and prioritised manner in order to optimise their strategic value and service potential. These include municipal buildings, pavilions and other community buildings. The service also includes emergency building and facility maintenance.

273 (0)

273

276 (0)

276

City Services This service includes street lighting and Aerodrome operations.

182 (6)

176

144 (6)

138

Infrastructure – miscellaneous

This service includes private works, maintenance of water supplies and emergency bores.

69 (41)

28

86 (41)

45

Road Maintenance

This service provides for maintenance on Council's infrastructure incorporating roads, bridges, drainage, footpaths, kerb and channel, street furniture, line marking and signage. This service also includes the program of road inspections as part of the Road Management Act and Council's Road Management Plan for Council managed local roads. Oncosts and overhead recoups are included in this service.

2,878 (3)

2,875

3,092 (3)

3,089

Major Plant This service operates and maintains Council’s major plant and equipment, to meet functionality and safety needs and to maximise the performance and minimise operational cost of the fleet.

1,207 (0)

1,207

1,095 (0)

1,095

Major Plant Recoups

Plant used on works generates plant hire income used to fund operations and maintenance and the replacement of the major plant.

(1,697) 0

(1,697)

(1,731) 0

(1,731)

Minor Plant This service purchases and maintains Council’s minor plant and equipment, including trailers

65 (59)

6

70 (59)

11

Parks and Gardens

This service covers a range of areas such as grass and turf cutting, tree pruning, planting, removal, planning and street tree strategies, management of conservation and parkland areas, creeks and other areas of environmental

1,117 (15)

1,102

1,118 (15)

1,103



2016/17 Budget


$'000

2017/18 Budget


$'000

significance. Also includes playground maintenance and safety improvement programs.

Property – Capital

This service includes capital expenditure on Council’s property assets in order to optimise their strategic value and service potential. These include municipal buildings, pavilions and other community buildings. This service also allows for a transfer to Building Capital Works Reserve to fund future capital works.

381 (0)

381

375 (0)

375

Infrastructure Capital

This service provides for capital expenditure on Council's infrastructure incorporating roads, bridges, drainage, footpaths, kerb and channel, streetscapes and car parks.

6,403 (5,687)

716

4,383 (3,294)

1,089

Major Plant Capital

This service purchases Council’s major plant and equipment, to meet functionality and safety needs and to maximise the performance and minimise operational cost of the fleet.

600 (110)

490

795 (159)

636

Parks and Gardens - Capital

This service covers Capital works relating to Parks and Gardens.

31 (0) 31

31 (0) 31


Assets, Finance & Corporate Services


2016/17 Budget


$'000

2017/18 Budget


$'000

Financial Services This service predominantly provides financial based services to both internal and external customers including the management of Council’s finances, raising rates and charges and the processing of accounts payable and receivables. This service also includes property management and records management.

1,147 (17,326) (16,179)

1,125 (18,125) (17,000)

Corporate Support This service includes corporate expenses including stationery, telecommunications, revenue collection fees and valuation contract management.

294 (66) 228

315 (77) 238

Property Operations This service is responsible for the operations of Council’s assets, including insurances and utility charges including water and electricity. The service also includes Council’s building, land and property leases and licenses.

76 (119)

(43)

76 (119)

(43)

Assets/ Procurement

This service predominantly provides asset management services. It includes services to both internal and external customers including the management of procurement practices and contracting of services, including the operations and maintenance of the cleaning of public conveniences throughout the municipality. The service also approves and supervises private development activities such as subdivisions and infrastructure associated with unit developments.

474 (1)

473

500 (1)

499

Vehicles This service operates and maintains Council vehicles, excluding major plant and equipment, to meet functionality and safety needs and to maximise the performance and minimise operational cost of the fleet.

145 (0)

145

158 (0)

158

Information Services

This service provides, supports and maintains reliable and cost effective communications and computing systems, facilities and infrastructure to Council staff enabling them to deliver services in a smart, productive and efficient way.

797 (0)

797

825 (0)

825

Finance Capital This service includes purchasing office equipment including photocopiers.

11 (0) 11

11 (0) 11

Property Operations Capital

This service includes capital improvements to Council buildings including those subject to leases.

40 (10)

30

35 (10)

25



2016/17 Budget


$'000

2017/18 Budget


$'000

Property Capital This service includes a transfer to the Building Capital reserve following the sale of Council properties.

30 (30)

0

30 (30)

0

Vehicles Capital This service purchases Council vehicles, excluding major plant and equipment, to meet functionality and safety needs and to maximise the performance and minimise operational cost of the fleet.

320 (90) 230

320 (90) 230

Information Technology Capital

This service includes expenditure of a capital nature relating to information technology.

120 (0)

120

303 (100)

203


Corporate Strategy, Risk & Governance

Business Area

Description of services provided

2016/17 Budget


$'000

2017/18 Budget


$'000 Governance This area of governance includes Mayor,

Councillors, Chief Executive Officer, executive support, and Council publicity. This service provides statutory and corporate support services to Council, including coordination of business papers for meetings of the Council and maintenance of statutory registers. It includes Council elections, subscriptions, publicity, legal expenses, support of civic functions, ceremonies and events, hospitality management and coordination of arrangements for Council and workshop meetings.

1,252 (50)

1,202

1,222 (0)

1,222

Risk and Emergency Services.

This service includes Risk Management, Emergency Services Management, fire prevention and Council’s insurances.

423 (79) 344

372 (63) 309

Local Laws This service includes Local Laws enforcement. This service includes parking fees and fines, public safety and traffic control. This service maintains and improves the health and safety of people, animals and the environment in Council by providing animal management services including a cat trapping program, a dog and cat collection service, a pound service, a registration and administration service, and an after-hours emergency service. This service also includes the operations of the school crossings.

248 (238)

10

372 (202)

170

People and Culture

This service provides Council with strategic and operational organisation development support. The service develops and implements strategies, policies and procedures through the provision of human resources and industrial relations services. The service includes training programs and business excellence. This service also includes payment of salaries and wages to Council employees.

491 (0)

491

499 (0)

499

Tourism & Community Information

This service includes the following:-

Visitor Information Centre operations

Tourism & Event Marketing

Grampians Tourism contribution

Community event development and support.

Customer Service operations of Council including the Municipal Office, Visitor Information Centre and Gum San

Communications and Media requirements of

925 (28) 897

862 (35) 827


Business Area

Description of services provided

2016/17 Budget


$'000

2017/18 Budget


$'000

Council.

Alexandra Oval Community & Recreation Centre

This service operates and maintains the recently completed recreation and community centre at Alexandra Oval. The facility provides the Ararat and greater Grampians community, clubs and businesses with a centrally located new high quality, modern, flexible and dynamic multipurpose community and recreation space.

216 (70) 146

219 (70) 149

Economic Development

The economic development service assists the organisation to facilitate an environment that is conducive to a sustainable and growing local business sector and provides opportunities for local residents to improve their skill levels and access to employment. Provides an advisory information and support service for local and potential businesses and community groups.

475 (10) 465

479 (1)

478

Gum San Chinese Heritage Museum & Great Hall

This service includes the operations and marketing of the Gum San Chinese Heritage Museum. It also includes the operations of the Great Hall function centre located at the Gum San Chinese Heritage Museum.

195 (66) 129

201 (68) 133

Local Laws Capital

This service includes the capital cost to replace the parking meters.

35 (0) 35

35 (0) 35


2.7 Performance Statement The service performance indicators detailed in the preceding pages will be reported on in the Performance Statement, which is prepared at the end of the year as required by Section 132 of the Act and included in the 2017/18 Annual Report. The Performance Statement will also include reporting on prescribed indicators of financial performance (outlined in Section 8) and sustainable capacity, which are not included in this budget report. The prescribed performance indicators contained in the Performance Statement are audited each year by the Victorian Auditor General who issues an audit opinion on the Performance Statement. The major initiatives detailed in the preceding pages will be reported in the Annual Report in the form of a statement of progress in the Report of Operations.

2.8 Reconciliation of cash budget with budgeted operating result Net Cost

(Revenue) Expenditure Revenue

$’000 $’000 $’000

Planning & Public Health 729 3,661 2,932 Community Life 3,687 11,242 7,555 Operational Services 6,614 10,328 3,714 Assets, Finances & Corporate Services -14,855 3,697 18,552 Corporate Strategy, Risk & Governance 3,783 4,222 439

Total services and initiatives -42 33,150 33,192

Capital Expenditure on fixed assets 11,102 Loan borrowings -1,000 Depreciation -7,925 WDV on assets sold -223 Transfer to reserves 1,198 Transfer from reserves -1,249

Surplus for the year 1,945


3. Financial statements This section presents information in regard to the Financial Statements and Statement of Human Resources. The budget information for the years 2017/18 to 2020/21 has been extracted from the Strategic Resource Plan.

This section includes the following financial statements in accordance with the Local Government Act 1989 and the Local Government Model Financial Report: 3.1 Comprehensive Income Statement 3.2 Balance Sheet 3.3 Statement of Changes in Equity 3.4 Statement of Cash Flows 3.5 Statement of Capital Works 3.6 Statement of Human Resources


Comprehensive Income Statement

For the four years ending 30 June 2021

Forecast Actual

Budget Strategic Resource Plan

Projections

2016/17 2017/18 2018/19 2019/20 2020/21

$’000 $’000 $’000 $’000 $’000

Income

Rates and charges 15,909 16,385 16,713 17,047 17,388

Statutory fees and fines 195 222 226 231 236

User fees 1,527 1,495 1,525 1,556 1,587

Grants - Operating 6,924 7,140 6,787 6,821 6,855

Grants - Capital 5,005 4,621 1,054 1,054 1,054

Contributions - monetary 60 110 30 30 30

Net gain/(loss) on disposal of property, infrastructure, plant and equipment

54 56 58 60 63

Other income 452 496 506 516 526

Total income 30,126 30,525 26,899 27,315 27,739

Expenses

Employee costs 11,034 11,628 11,861 12,098 12,340

Materials and services 8,945 8,570 8,439 8,692 8,953

Depreciation and amortisation 7,548 7,925 8,321 8,737 9,174

Borrowing costs 140 140 140 140 140

Other expenses 282 317 330 343 357

Total expenses 27,949 28,580 29,091 30,010 30,964

Surplus/(deficit) for the year 2,177 1,945 (2,192) (2,695) (3,225)

Comprehensive result 2,177 1,945 (2,192) (2,695) (3,225)


Balance Sheet


Forecast

Actual Budget Strategic Resource Plan

Projections

2016/17 2017/18 2018/19 2019/20 2020/21

$’000 $’000 $’000 $’000 $’000

Assets

Current assets

Cash and cash equivalents 12,273 12,264 13,182 13,915 14,454

Trade and other receivables 2,348 2,348 2,348 2,348 2,348

Inventories 105 105 105 105 105

Other assets 9 9 9 9 9

Total current assets 14,735 14,726 15,644 16,377 16,916

Non-current assets

Property, infrastructure, plant & equipment 170,461 173,415 170,305 166,877 163,113

Investment property 1,258 1,258 1,258 1,258 1,258

Total non-current assets 171,719 174,673 171,563 168,135 164,371

Total assets 186,454 189,399 187,207 184,512 181,287

Liabilities

Current liabilities

Trade and other payables 697 697 697 697 697

Trust funds and deposits 373 373 373 373 373

Provisions 3,116 3,116 3,116 3,116 3,116

Interest-bearing loans and borrowings 0 0 0 0 2,000

Total current liabilities 4,186 4,186 4,186 4,186 6,186

Non-current liabilities

Provisions 187 187 187 187 187

Interest-bearing loans and borrowings 2,000 3,000 3,000 3,000 1,000

Total non-current liabilities 2,187 3,187 3,187 3,187 1,187

Total liabilities 6,373 7,373 7,373 7,373 7,373

Net assets 180,081 182,026 179,834 177,139 173,914

Equity

Accumulated surplus 74,459 76,455 73,325 69,692 65,529

Reserves 105,622 105,571 106,509 107,447 108,385

Total equity 180,081 182,026 179,834 177,139 173,914


Statement of Changes in Equity


Total

Accumulated Surplus

Revaluation Reserve

Other Reserves

$’000 $’000 $’000 $’000

2017

Balance at beginning of the financial year 177,904 71,377 96,298 10,229

Surplus/(deficit) for the year 2,177 2,177 - -

Net asset revaluation increment/(decrement) - - - -

Transfer to other reserves - (1,805) - 1,805

Transfer from other reserves - 2,710 - (2,710)

Balance at end of the financial year 180,081 74,459 96,298 9,324

2018


Surplus/(deficit) for the year 1,945 1,945 - -


Transfer to other reserves - (1,198) - 1,198

Transfer from other reserves - 1,249 - (1,249)


2019


Surplus/(deficit) for the year (2,192) (2,192) - -


Transfer to other reserves - (938) - 938

Transfer from other reserves - - - -


2020







2021








Statement of Cash Flows


Forecast Actual


Projections

2016/17 2017/18 2018/19 2019/20 2020/21

$’000 $’000 $’000 $’000 $’000

Inflows Inflows Inflows Inflows Inflows

(Outflows) (Outflows) (Outflows) (Outflows) (Outflows)

Cash flows from operating activities

Rates and charges 15,909 16,385 16,713 17,047 17,388

Statutory fees and fines 195 222 226 231 236

User fees 1,680 1,645 1,678 1,712 1,746

Grants - operating 6,924 7,140 6,787 6,821 6,855

Grants - capital 5,005 4,621 1,054 1,054 1,054

Contributions - monetary 60 110 30 30 30

Interest received 337 382 390 398 406

Other receipts 115 114 116 118 120

Net GST refund / payment 742 707 691 714 737

Employee costs (11,034) (11,628) (11,861) (12,098) (12,340)

Materials and services (9,840) (9,427) (9,283) (9,562) (9,849)

Other payments (282) (317) (330) (343) (357)

Net cash provided by/(used in) operating activities 9,811 9,954 6,211 6,122 6,026

Cash flows from investing activities

Payments for property, infrastructure, plant and equipment

(10,408) (11,102) (5,443) (5,551) (5,661)

Proceeds from sale of property, infrastructure, plant and equipment

270 279 290 302 314

Net cash provided by/ (used in) investing activities (10,138) (10,823) (5,153) (5,249) (5,347)

Cash flows from financing activities

Finance costs (140) (140) (140) (140) (140)

Proceeds from borrowings 0 1,000 0 0 0

Net cash provided by/(used in) financing activities

(140) 860 (140) (140) (140)

Net increase/(decrease) in cash & cash equivalents

(467) (9) 918 733 539

Cash and cash equivalents at the beginning of the financial year

12,740 12,273 12,264 13,182 13,915

Cash and cash equivalents at the end of the financial year

12,273 12,264 13,182 13,915 14,454


Statement of Capital Works


Forecast Actual


Projections

2016/17 2017/18 2018/19 2019/20 2020/21

$’000 $’000 $’000 $’000 $’000

Property

Buildings 2,068 5,807 196 200 204

Total property 2,068 5,807 196 200 204

Plant and equipment

Plant, machinery and equipment 920 1,115 1,137 1,160 1,183

Fixtures, fittings and furniture 35 235 87 89 91

Library books 58 58 58 58 58

Total plant and equipment 1,013 1,408 1,282 1,307 1,332

Infrastructure

Roads 5,441 2,770 2,826 2,883 2,941

Bridges 1,341 560 571 582 594

Footpaths and cycleways 309 357 364 371 378

Drainage 236 200 204 208 212

Total infrastructure 7,327 3,887 3,965 4,044 4,125

Total capital works expenditure 10,408 11,102 5,443 5,551 5,661

Represented by:

New asset expenditure 517 1,452 49 50 51

Asset renewal expenditure 7,758 6,164 4,701 4,795 4,889

Asset upgrade expenditure 2,133 3,486 693 706 721

Total capital works expenditure 10,408 11,102 5,443 5,551 5,661


Statement of Human Resources


Forecast Actual


Projections

2016/17 2017/18 2018/19 2019/20 2020/21

$’000 $’000 $’000 $’000 $’000

Staff expenditure

Employee costs 11,034 11,628 11,861 12,098 12,340

Total staff expenditure 11,034 11,628 11,861 12,098 12,340

FTE FTE FTE FTE FTE

Staff numbers

Employees 135.9 134.8 134.8 134.8 134.8

Total staff numbers 135.9 134.8 134.8 134.8 134.8

A summary of human resources expenditure categorised according to the organisational structure of Council is included below: Comprises

Department

Budget 2017/18 $’000

Permanent Full time

$’000

Permanent Part Time

$’000 Planning & Public Health 1,125 739 386 Community Life 1,971 943 1,028 Operational Services 4,197 4,197 0 Assets, Finances & Corporate Services 1,447 1,447 0 Corporate Strategy, Risk & Governance 2,385 1,967 418

Total permanent staff expenditure 11,125 9,293 1,832 Casuals and other expenditure 503

Total expenditure 11,628

A summary of the number of full time equivalent (FTE) Council staff in relation to the above expenditure is included below: Comprises

Department

Budget FTE

Permanent Full time

Permanent Part Time

Planning & Public Health 10.1 7.0 3.1 Community Life 23.8 10.0 13.8 Operational Services 57.0 57.0 0.0 Assets, Finances & Corporate Services 15.0 15.0 0.0 Corporate Strategy, Risk & Governance 22.5 18.0 4.5

Total permanent staff 128.4 107.0 21.4 Casuals and other 6.4

Total staff 134.8


4. 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 interpreted in the context of the organisation’s objectives.

Indicator Measure

No

tes

Actual Forecast Budget Strategic Resource Plan

Projections Trend 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 +/o/-

Operating position

Adjusted underlying result Adjusted underlying surplus (deficit) / Adjusted underlying revenue

1 (14.2%) (7.0%) (6.5%) (8.3%) (10.0%) (11.7%) -

Liquidity Working Capital

Current assets / current liabilities 2 383.6% 352.0% 351.8% 373.7% 391.2% 273.5% o

Unrestricted cash Unrestricted cash / current liabilities

291.5% 268.3% 282.1% 303.5% 320.6% 225.3% o

Obligations

Loans and borrowings Interest bearing loans and borrowings / rate revenue

3 13.1% 12.6% 18.3% 18.0% 17.6% 17.3% +

Loans and borrowings Interest and principal repayments on interest bearing loans and borrowings / rate revenue

1.0% 0.9% 0.9% 0.8% 0.8% 0.8% o

Indebtedness Non-current liabilities / own source revenue 12.5% 12.1% 17.1% 16.8% 16.5% 6.0% +

Asset renewal Asset renewal expenses / Asset depreciation 4 67.3% 102.8% 61.9% 56.5% 54.9% 53.3% -

Stability

Rates concentration Rate revenue / adjusted underlying revenue 5 65.9% 52.9% 53.9% 62.2% 62.5% 62.8% +

Rates effort Rate revenue / CIV of rateable properties in the municipality

0.7% 0.7% 0.7% 0.7% 0.7% 0.7% o

Efficiency

Expenditure level Total expenses/ no. of property assessments $3,720 $3,785 $3,935 $4,015 $4,101 $4,189 +

Revenue level Residential rate revenue / No. of residential $1,746 $1,781 $1,472 $1,492 $1,513 $1,535 +


Indicator Measure

No

tes

Actual Forecast Budget Strategic Resource Plan

Projections Trend 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 +/o/-

property assessments

Workforce turnover No. of permanent staff resignations & terminations / average no. of permanent staff for the financial year

8.94% 7.94% 7.94% 7.94% 7.94% 7.94% o

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 – An indicator of the sustainable operating result required to enable Council to continue to provide core services and meet its objectives. Rate Capping will continue to have a significant impact on Council’s financial performance over the period, with continued losses expected if services are to be provided at the current levels. 2 Working Capital – The proportion of current liabilities represented by current assets. Working capital is forecast to increase as Council transfers funds to reserves each year to pay out the loans raised under the Local Government Funding Vehicle. 3 Debt compared to rates - Council has interest only loans using the Local Government Funding Vehicle so no debt compared to rates is consistent over the life of the plan. 4 Asset renewal - This percentage indicates the extent of Council's renewal of assets 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 extent of reliance on rate revenues to fund all of Council's on-going services. This indicator proves Council relies heavily on rates as a source of income. The trend indicates Council will become more reliant on rate revenue compared to all other revenue sources. Rate capping has restricted Council’s capacity to raise income at an appropriate level to fund Council’s operations.


5. Other budget information (required by the Regulations) This section presents other budget related information required by the Regulations This section includes the following statements and reports: 5.1.1 Grants operating 5.2.1 Grants capital 5.1.3 Statement of borrowings 5.1.1 Grants - operating ($0.22 million increase)

Operating grants include all monies received from State and Federal sources for the purposes of funding the delivery of Council’s services to ratepayers. Overall, the level of operating grants is projected to increase by 3.0% or $0.22 million compared to 2016/17. A list of operating grants by type and source, classified into recurrent and non-recurrent, is included below. Operating Grants

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Recurrent - Commonwealth Government Victoria Grants Commission 5,581 5,581 - General home care 45 45 - Commonwealth Home Support Programme 411 411 - Recurrent - State Government Aged care 128 73 (55) School crossing supervisors 9 9 - Libraries 127 128 1 Maternal and child health 165 165 - Community health 12 12 - Culture 140 140 -

Total recurrent grants 6,618 6,564 (54) Non-recurrent - Commonwealth Government - - - Non-recurrent - State Government Community development 27 - (27) Culture 1 1 - Employment 3 3 - Environment 60 55 (5) Libraries 6 6 - Planning and development 110 - (110) Recreation - 412 412 Emergency Management 60 60 - Other 39 39 -

Total non-recurrent grants 306 576 270

Total operating grants 6,924 7,140 216


5.1.2 Grants - capital ($0.38 million decrease)

Capital grants include all monies received from State and Federal sources for the purposes of funding the capital works program. Overall the level of capital grants has decreased by 7.7% or $0.38 million compared to 2016/17 due to a one-off increase in Roads to Recovery Funding received in 2016/17 and partly offset by the funding for the Ararat Arts Precinct Redevelopment to be received in 2017/18). Section 12. “Analysis of Capital Budget” includes a more detailed analysis of the grants and contributions expected to be received during the 2017/18 year. A list of capital grants by type and source, classified into recurrent and non-recurrent, is included below. Capital Grants

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Recurrent - Commonwealth Government Roads to recovery 1,054 1,054 - Recurrent - State Government - - -

Total recurrent grants 1,054 1,054 - Non-recurrent - Commonwealth Government Buildings 189 567 378 Roads to recovery 2,423 - (2,423) Non-recurrent - State Government Buildings 1,339 3,000 1,661

Total non-recurrent grants 3,951 3,567 (384)

Total capital grants 5,005 4,621 (384)

5.1.3 Statement of Borrowings

The table below shows information on borrowings specifically required by the Regulations.

2016/17 2017/18

$’000 $’000 Total amount borrowed as at 30 June of the prior year 2,000 2,000 Total amount proposed to be borrowed 0 1,000 Total amount projected to be redeemed 0 0 Total amount of borrowings as at 30 June 2,000 3,000


6. Detailed list of capital works This section presents a listing of the capital works projects that will be undertaken for the 2017/18 year.

Capital works program For the year ending 30 June 2018 6.1 Capital works

Asset expenditure types Summary of Funding sources

Capital Works Area Project

Cost New Renewal Upgrade Expansi

on Grants Contribu

tions Council

Cash Borrowi

ngs

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $'000 $'000

PROPERTY

Buildings Ararat Arts Precinct Redevelopment 5,611 0 0 5,611 0 3,567 70 974 1,000 Olver Stand 100 0 100 0 0 0 0 100 0 Willaura Hall Roof Replacement 96 0 96 0 0 0 0 96 0

Total Buildings 5,807 0 196 5,611 0 3,567 70 1,170 1,000

TOTAL PROPERTY 5,807 0 196 5,611 0 3,567 70 1,170 1,000

PLANT AND EQUIPMENT

Plant, Machinery and Equipment Global Vehicle Purchases 320 0 320 0 0 0 0 320 0 Global Major Plant Purchases 795 0 795 0 0 0 0 795 0

Total Plant, Machinery and Equipment 1,115 0 1,115 0 0 0 0 1,115 0

Fixtures, Fittings and Furniture Virtual Desktop Replacement 200 0 200 0 0 0 0 200 0 Parking Meters 35 0 35 0 0 0 0 35 0

Total Fixtures, Fittings and Furniture 235 0 235 0 0 0 0 235 0





on Grants Contribu

tions Council

Cash Borrowi

ngs

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $'000 $'000

Library books Bookstock 58 0 58 0 0 0 0 58 0

Total library books 58 0 58 0 0 0 0 58 0

TOTAL PLANT AND EQUIPMENT 1,408 0 1,408 0 0 0 0 1,408 0

INFRASTRUCTURE

Roads Mount William Road 460 0 460 0 0 460 0 0 0 Back Bolac Road 200 0 0 200 0 200 0 0 0 Challicum Road 90 0 0 90 0 90 0 0 0 Resheeting capital 700 0 700 0 0 0 0 700 0 Reseal works over $10,000 1,150 0 1150 0 0 304 0 846 0 Alexandra Oval Carpark 60 60 0 0 0 0 0 60 0 Willaura Kerb & Channel Renewal 110 0 110 0 0 0 0 110 0

Total Roads 2,770 60 2,420 290 0 1,054 0 1,716 0

Bridges Bridge Guard Rail 60 60 0 0 0 0 0 60 0 Bridge Strengthening 20 0 20 0 0 0 0 20 0 Denicull Creek 30 0 30 0 0 0 0 30 0 Elmhurst-Landsborough Rd Bridge 450 0 450 0 0 0 0 450 0

Total Bridges 560 60 500 0 0 0 0 560 0

Footpaths and Cycleways Barkly Link 22 0 22 0 0 0 0 22 0 Minor Footpath Renewal 25 0 25 0 0 0 0 25 0 Footpath Connections 75 75 0 0 0 0 0 75 0 Streatham & Buangor Pathway Renewal 35 0 35 0 0 0 0 35 0 Golf Links Pathway Extension 100 100 0 0 0 0 0 100 0 Condition Assessment Program 100 0 100 0 0 0 0 100 0





on Grants Contribu

tions Council

Cash Borrowi

ngs

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $'000 $'000

Total Footpaths and Cycleways 357 175 182 0 0 0 0 357 0

Drainage Tatyoon Road Drainage 80 0 80 0 0 0 0 80 0 Buangor-Ben Nevis Drainage 120 0 120 0 0 0 0 120 0

Total Drainage 200 0 200 0 0 0 0 200 0

TOTAL INFRASTRUCTURE 3,887 295 3,302 290 0 1,054 0 2,833 0

TOTAL CAPITAL WORKS 2017/18 11,102 295 4,906 5,901 0 4,621 70 5,411 1,000

6.2 Summary

Asset expenditure types Funding sources



on Grants Contribu

tions Council

Cash Borrowi

ngs

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $'000 $'000

PROPERTY 5,807 0 196 5,611 0 3,567 70 1,170 1,000 PLANT AND EQUIPMENT 1,408 0 1,408 0 0 0 0 1,408 0 INFRASTRUCTURE 3,887 295 3,302 290 0 1,054 0 2,833 0

TOTAL CAPITAL WORKS 11,102 295 4,906 5,901 0 4,621 70 5,411 1,000


7. Rates and charges

This section presents information about rates and charges which the Act and the Regulations require to be disclosed in the Council’s annual budget.

In developing the Strategic Resource Plan (referred to in Section 14.), rates and charges were identified as an important source of revenue, accounting for 57.9% of the total revenue received in 2015/16. Planning for future rate increases has therefore been an important component of the Strategic Resource Planning process. The State Government have introduced the Fair Go Rates System (FGRS) which sets out the maximum amount councils may increase rates in a year. For 2017/18 the FGRS cap has been set at 2.0%. The cap applies to both general rates and municipal charges and is calculated on the basis of council’s average rates and charges. Whilst the 2017/18 budget delivers a rate determination surplus of $0.042 million, the following three years (2018/19 to 2020/21) will be significantly impacted by rate capping, wages growth, increases in material & services and reductions in government funding. Rate capping has limited Council’s capacity to raise the income required to fund operations and maintain infrastructure. From 2017/18 to 2019/20 the cumulative rate determination deficit is forecast to be $0.582 million. The cumulative operating deficit from 2018/19 to 2020/21 is forecast to be $6.167 million. The Rating Strategy adopted in June 2016 was been reviewed as part of the budget process and a new Rating Strategy will be adopted in June 2017. The new Rating Strategy is proposing to abolish differential rates and the municipal charge and raise rates by applying a uniform rate across all property types. Refer to Section 15 for more information. 7.1 The rate in the dollar to be levied as general rates under Section 158 of the Act for each type or

class of land compared with the previous financial year

Type or class of land 2016/17 2017/18

cents/$CIV cents/$CIV Change

General rate for rateable residential properties 0.7185 0.5975 -16.8% General rate for rateable commercial properties 1.1496 0.5975 -48.0% General rate for rateable industrial properties 0.9341 0.5975 -36.0% General rate for rateable farm properties 0.3952 0.5975 51.2%

7.2 The estimated total amount to be raised by general rates in relation to each type or class of land,

and the estimated total amount to be raised by general rates, compared with the previous financial year


$ $ Change

Residential 6,644,600 5,563,900 2.7% Commercial 1,209,200 624,500 1.3% Industrial 197,900 131,500 5.9% Farm 5,124,600 7,766,600 2.2%

Total amount to be raised by general rates 13,176,300 14,086,500 2.4%

7.3 The number of assessments in relation to each type or class of land, and the total number of

assessments, compared with the previous financial year.


Number Number Change

Residential 4,954 4,966 0.2% Commercial 336 328 -2.4% Industrial 84 91 8.3% Farm 1,740 1,718 -1.3%

Total number of assessments 7,114 7,103 -0.2%


7.4 The basis of valuation to be used is the Capital Improved Value (CIV) 7.5 The estimated total value of each type or class of land, and the estimated total value of land,

compared with the previous financial year

Type or class of land 2016/17 2017/18 Change

$ $

Residential 924,794,200 931,204,700 0.7% Commercial 105,183,800 104,512,300 -0.6% Industrial 21,188,200 22,001,700 3.8% Farm 1,296,700,000 1,299,844,500 0.2%

Total value of land 2,347,866,200 2,357,563,200 0.4%

7.6 The municipal charge under Section 159 of the Act compared with the previous financial year

Per Rateable

Property Per Rateable

Property

Type of Charge 2016/17 2017/18 Change

$ $

Municipal 90 0 -100.0%

7.7 The estimated total amount to be raised by municipal charges compared with the previous

financial year


$ $

Municipal 575,640 0 -100.0%

7.8 The rate or unit amount to be levied for each type of service rate or charge under Section 162 of

the Act compared with the previous financial year

Per Rateable

Property Per Rateable

Property


$ $

Kerbside collection - Waste - 240 litre 383 391 2.1% Kerbside collection - Waste - 120 litre 293 299 2.0% Kerbside collection - Recycling 107 109 1.9% Bunnugal Drainage - High rating zone - charge per hectare

1.65 1.65 0.0%

Bunnugal Drainage - Low rating zone - charge per hectare

1 1 0.0%

Water Supply - Mininera, Rossbridge, Tatyoon,& Travellers Rest

421 429 1.9%

7.9 The estimated total amount to be raised by each type of service rate or charge, and the

estimated total amount to be raised by service rates and charges, compared with the previous financial year


$ $

Kerbside collection - Waste - 240 litre 447,727 452,387 1.0% Kerbside collection - Waste - 120 litre 1,126,292 1,153,542 2.4% Kerbside collection - Recycling 378,673 386,950 2.2% Bunnugal Drainage 2,529 2,529 0.0% Water Supply - Mininera, Rossbridge, Tatyoon,& Travellers Rest

5,894 6,006 1.9%

Total 1,961,115 2,001,414 2.1%


7.10 The estimated total amount to be raised by all rates and charges compared with the previous

financial year

2016/17 2017/18 Change

$’000 $’000

General rates 13,176,300 14,086,500 6.9%

Municipal charge 575,640 0 -100.0%

Council pension rebate -120,245 -124,023 3.1%

In lieu of Rates (wind farm) 114,762 428,357 273.3%

Kerbside collection and recycling 1,961,115 2,001,414 2.1%

Total Rates and charges 15,707,572 16,392,248 4.4%

7.11 Any significant changes that may affect the estimated amounts to be raised by rates and charges There are no known significant changes which may affect the estimated amounts to be raised by rates and charges. However, the total amount to be raised by rates and charges may be affected by:

The making of supplementary valuations

The variation of returned levels of value (e.g. valuation appeals)

Changes in use of land such that rateable land becomes non-rateable land and vice versa

Changes in use of land such that residential land becomes business land and vice versa.

Granting single farm enterprises the exemption from payment of the municipal charge

Valuation objections 7.12 Differential/Uniform rates Rates to be levied The new Rating Strategy is proposing to abolish differential rates and the municipal charge and raise rates by applying a uniform rate across all property types. Refer to Section 15 for more information. 7.12.1 Cultural Recreational Lands The original rating strategy contained provisions that specified a rate for recreation and culture land at half the General rate. In1996 Council adopted the following policy: 1. All cultural and recreational lands and indoor cultural and recreational facilities shall be exempt

from the payment of municipal rates, except where:

the land is subject to a grazing lease, in which case it will attract the general rate (or the farm rate if applicable);

the land is used for housing gaming machines, in which case the portion of the premises used for housing gaming machines shall attract the commercial rate, and the balance of the property shall be exempt from the payment of municipal rates.

2. All cultural and recreational lands and indoor cultural and recreational facilities shall be liable for

the annual service charges for the provision of specific services such as garbage collection and water supply, where those services are provided to the property by Council.

Rationale: This option provides a blanket exemption for all land currently used for cultural and recreational activities. It also provides for recreation reserves that are currently used for commercial purposes (e.g. grazing) to be rated, and addresses the commercial nature of land used for housing gaming machines.


7.13 Fair Go Rates System Compliance Ararat Rural City Council is fully compliant with the State Government’s Fair Go Rates System.

Budgeted general rates (2016-17) $13,176,300

Budgeted municipal charges (2016-17) $575,640

Annualised supplementary general rates (2016-17) $58,366

Annualised supplementary municipal charges (2016-17) $1,260

Total $13,811,566

Number of rateable properties as at 30 June 2017 7,103

Base average rate (2016/17) $1,944

Rate cap announced by the State Government 2%

Rate cap plus % increase $1,983

Number of rateable properties as at 1 July 2017 7,103 Forecast maximum general rate and municipal charges revenue that can be levied in 2017/18 $14,087,797

Budgeted general rate and municipal charges (2017/18) $14,086,500


Budget Analysis

The following reports provide detailed analysis to support and explain the budget reports in the previous section. This section includes the following analysis and information:

8 Summary of financial position 9 Budget influences 10 Analysis of operating budget 11 Analysis of budgeted cash position 12 Analysis of capital budget 13 Analysis of budgeted financial position 14 Strategic resource plan 15 Summary of other strategies 16 Rating strategy


8. Summary of financial position Council has prepared a Budget for the 2017/18 financial year which seeks to balance the demand for services and infrastructure with the community’s capacity to pay. Key budget information is provided below about the rate increase, operating result, services, cash and investments, capital works, financial position, financial sustainability and strategic objectives of the Council.

8.1 Total rates and charges

A = Actual F = Forecast B = Budget SRP = Strategic Resource Plan estimates

It is proposed that the average rate increase by 2.0% for the 2017/18 year, raising total rates and charges of $16.39 million. This will result in an increase in total revenue from rates and service charges of 3.0%. This rate increase is in line with rate cap set by the Minister for Local Government. (The rate increase for the 2016/17 year was 2.5%). Refer also Sections 7 and 15 for more information.

8.2 Operating result

The expected operating result for the 2017/18 year is a surplus of $1.95 million, which is a decrease of $0.23 million over 2016/17. Total income has increased by $0.40 million but total expenses have increased by $0.63 million. The adjusted underlying result, which excludes items such as non-recurrent capital grants and non-cash contributions is a deficit of $1.73 million, which is a decrease of $0.10 million over 2016/17. (The forecast operating result for the 2016/17 year is a surplus of $2.18 million).

15.3 15.9 16.4 16.7 17.0 17.4

0.0

5.0

10.0

15.0

20.0

A2015/16 F2016/17 B2017/18 SRP2018/19 SRP2019/20 SRP2020/21

$ m

illio

ns

3.55

2.18 1.95

-2.19 -2.70-3.23

-4.0

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2.0

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A2015/16 F2016/17 B2017/18 SRP2018/19 SRP2019/20 SRP2020/21

Sur

plus

/ -

defic

it $M


8.3 Cash and investments

Cash and investments are expected to decrease by $0.01 million during the year to $12.26 million as at 30 June 2018. The reduction in cash and investments is in line with Council's Strategic Resource Plan. Cash and investments are forecast to be $12.27 million as at 30 June 2017. Refer also Section 3 for the Statement of Cash Flows and Section 11 for an analysis of the cash position.

8.4 Capital works

The capital works program for the 2017/18 year is expected to be $11.10. Of the $11.10 million of capital funding required, $4.62 million will come from external grants, $0.07 million from community contributions, $1.00 million from borrowings, with the balance of $5.41 million from Council cash. The Council cash amount comprises asset sales ($0.25 million), cash held at the start of the year ($1.17 million) and cash generated through operations in the 2017/18 financial year ($3.99 million). The capital expenditure program has been set and prioritised based on a rigorous process of consultation that has enabled Council to assess needs and develop sound business cases for each project. This year's program includes a number of major building projects including the Ararat Arts Precinct Redevelopment. (Capital works is forecast to be $10.41 million for the 2016/17 year).

Refer also Section 3 for the Statement of Capital Works, Section 6 for the detailed list of capital

works and Section12 for an analysis of the capital budget.

12.74 12.27 12.2613.18

13.9214.45

0.0

5.0

10.0

15.0

A2016 F2017 B2018 SRP2019 SRP2020 SRP2021

cash

on

hand

$M

7.74

10.4111.10

5.44 5.55 5.66

0.0

5.0

10.0

15.0

A2015/16 F2016/17 B2017/18 SRP2018/19 SRP2019/20 SRP2020/21

capi

tal w

orks

$M


8.5 Financial position

The financial position is expected to improve with net assets (net worth) to increase by $1.95 million to $182.03 million although net current assets (working capital) will reduce by $0.01 million to $10.54 million as at 30 June 2018. (Net assets is forecast to be $182.03 million as at 30 June 2018).

Refer also Section 3 for the Balance Sheet and Section13 for an analysis of the budgeted financial

position.

8.6 Financial sustainability

A high level Strategic Resource Plan for the years 2017/18 to 2019/20 has been developed to assist Council in adopting a budget within a longer term prudent financial framework. The key objective of the Plan is financial sustainability in the medium to long term, while still achieving the Council’s strategic objectives as specified in the Council Plan. The adjusted underlying result, which is a measure of financial sustainability, shows an increasing deficit over the four year period. Rate Capping has affected Council’s ability to generate sufficient income to fund the current level of expenditure. Refer Section 14 for more information on the Strategic Resource Plan.

11.87

10.55 10.5411.46

12.19

10.73

0.00

5.00

10.00

15.00

A2016 F2017 B2018 SRP2019 SRP2020 SRP2021

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-1.83 -1.73

-2.22

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F2016/17 B2017/18 SRP2018/19 SRP2019/20 SRP2020/21adju

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9. Budget influences This section sets out the key budget influences arising from the internal and external environment within which the Council operates.

9.1 Snapshot of Ararat Rural City Council Ararat is located 198 kilometres north-west of Melbourne in the heart of Victoria, strategically located at an important junction of the Western and Pyrenees highways. Ararat is centrally located to the Grampians National Park, the Goldfields, the southern coast, and to metropolitan Melbourne, covering an area of 4,230 square kilometres. The Ararat Rural City Council was created in September 1994 by the amalgamation of the former Shire of Ararat and the former City of Ararat. There were minor boundary adjustments with Northern Grampians Shire, Southern Grampians Shire and Moyne Shire. Population

In the 2011 Census, there were 11,183 people in the municipality. This is a reduction of 72 people since the 2006 Census. The population is ageing with 62.7% of the population being over 35 years of age at the time of the last census in 2011 (61% in the census 2006). Main Towns The municipality is comprised of a series of rural townships, including Buangor, Elmhurst, Lake Bolac, Maroona, Mininera, Moyston, Pomonal, Streatham, Tatyoon, Warrak, Westmere, Wickliffe and Willaura. Of these, Willaura and Lake Bolac are among the larger settlements. Willaura, which is located 34 kilometres south of Ararat, services a predominantly agricultural community. Lake Bolac takes its name from the 1,460-hectare freshwater lake upon the shores of which the township was built. Moyston and Pomonal are the rural growth centres of the municipality.

9.2 External influences The following external influences have, or may have, an impact the 2017/18 budget:

Introduction of the Fair Go Rates system which caps rate increases to 2.0% for 2017/18. Excluding municipal rates and waste collection charges, Council is only able to exert some control over approximately 4% of its total income. Traditionally, Council has relied heavily on raising rates to fund its services and facilities.

Continued financial commitment to the employee Enterprise Agreement which expired in October 2016.

State-wide Consumer Price Index (CPI) is forecast to be 2.5% for the 2016/17 year (Victorian Budget Papers 2015/16).

Materials and services typically used by Council are expected to rise above CPI.

Receipt of significant capital works funding for the upgrade to the Ararat Performing Arts Centre/Ararat Regional Art Gallery, the upgrade to the Moyston Community Hall, the construction of the Ararat Men’s Shed and the completion of Roads to Recovery projects.

Cost Shifting occurs where Local Government provides a service to the community on behalf of the State and Federal Government. Over time the funds received by local governments do not increase in line with real cost increases. Examples of services that are subject to Cost Shifting include school crossing supervision, Library services and Home and Community Care for aged residents. In all these services the level of payment received by Council from the State Government does not reflect the real cost of providing the service to the community.

Councils across Australia raise approximately 3.5% of the total taxation collected by all levels of Government in Australia. In addition Councils are entrusted with the maintenance of more than 30% of the all Australian public assets including roads, bridges, parks, footpaths and public buildings. This means that a large proportion of Council’s income must be allocated to the


maintenance and replacement of these valuable public assets in order to ensure the quality of public infrastructure is maintained at satisfactory levels.

The Fire Services Property Levy will continue to be collected by Council on behalf of the State Government with the introduction of the Fire Services Property Levy Act 2012.

Other state government imposed levies, including the Landfill Levy, which impost on Council.

9.3 Internal influences As well as external influences, there are also a number of internal influences which are expected to have a significant impact on the preparation of the 2017/18 Budget.

The Ararat Rural City Council provides a number of regional city type services such as performing arts centre, art gallery, Chinese heritage museum, botanical gardens, indoor and outdoor pools, Alexandra Oval Community & Recreation Centre, but the rate revenue is derived from a small rural base. This regional city focus then has a flow-on effect with higher recurrent operating costs associated with maintaining the key commercial areas at regional standard, including signage, footpaths, streetscape, cleaning and public conveniences.

As Council has limited ability to fund major capital works from its operating activities, Council continues to rely heavily on government grants, loans and contributions from the community to fund the proposed capital works over the next four years.

Increased debt servicing costs as a result of new borrowings.

Wage increases resulting in additional employee costs

9.4 Budget principles In response to the external and internal influences, guidelines were prepared and distributed to all Council officers with budget responsibilities. The guidelines set out the key budget principles upon which the officers were to prepare their budgets. The principles included:

Any increase in service delivery is required to be considered by the Director responsible for the service;

Increasing controllable fees and charges by 2.0% or in line with market levels;

New revenue sources to be identified where possible;

Service levels are to be maintained at 2016/17 levels, with the aim to use less resources with an emphasis on innovation and efficiency;

Salaries and wages to be increased in line with Council’s Enterprise Bargaining Agreement;

New initiatives require a Business Case; and

Recruitment requires the approval of the Chief Executive Officer.

9.5 Long term strategies The budget includes consideration of a number of long term strategies and contextual information to assist Council to prepare the Budget in a proper financial management context. These include a Strategic Resource Plan for 2017/18 to 2020/21 (Section 14.), Rating Information (Section 15.) and Other Long Term Strategies (Section 16.) including borrowings, infrastructure and service delivery.


10. Analysis of operating budget This section analyses the operating budget including expected income and expenses of the Council for the 2017/18 year. 10.1 Budgeted income statement

Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Total income 10.2 30,126 30,525 399 Total expenses 10.3 (27,949) (28,580) (631) Surplus (deficit) for the year 2,177 1,945 (232) Grants - capital non-recurrent 10.2.6 (3,951) (3,567) 384 Contributions - non-monetary assets 0 0 0 Capital contributions - other sources 10.2.4 (60) (110) (50)

Adjusted underlying surplus (deficit) 10.1.1 (1,834) (1,732) 102

10.1.1 Adjusted underlying deficit ($0.10 million decrease)

The adjusted underlying result is the net surplus or deficit for the year adjusted for non-recurrent capital grants, non-monetary asset contributions, and capital contributions from other sources. It is a measure of financial sustainability and Council’s ability to achieve its service delivery objectives as it is not impacted by capital income items which can often mask the operating result. The adjusted underlying result for the 2017/18 year is a deficit of $1.73 million which is a decrease of $0.10 million from the 2016/17 year. In calculating the adjusted underlying result, Council has excluded grants received for capital purposes which are non-recurrent and capital contributions from other sources. Contributions of non-monetary assets are excluded as the value of assets assumed by Council is dependent on the level of development activity each year.

10.2 Income Income Types

Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000

Rates and charges 10.2.1 15,909 16,385 476 Statutory fees and fines 10.2.2 195 222 27 User fees 10.2.3 1,527 1,495 (32) Contributions - monetary 10.2.4 60 110 50 Grants - operating 5.1.1 6,924 7,140 86 Grants - capital 5.1.2 5,005 4,621 (254) Net gain on disposal of property, infrastructure, plant and equipment 10.2.5

54 56 2

Other income 10.2.6 452 496 44

Total income 30,126 30,525 399


10.2.1 Rates and charges ($0.48 million increase)

It is proposed that income raised by all rates and charges be increased by 2.0% or $0.48 million to $16.39 million. This includes increases in general rates of 2.0%, the Municipal Charge of 2.0%; kerbside waste charge of 2.0%, recycling waste charge of 2.0%, and income from supplementary rates income that is generated by growth in Council’s rate base. Section 7 – Rates and Charges - includes a more detailed analysis of the rates and charges to be levied for 2017/18 and the rates and charges information specifically required by the Regulations. 10.2.2 Statutory fees and fines ($0.03 million increase)

Statutory fees relate mainly to fees and fines levied in accordance with legislation and include animal registrations, Public Health and Wellbeing Act 2008 registrations and parking fines. Increases in statutory fees are made in accordance with legislative requirements. Statutory fees are forecast to increase by 13.8% or $0.03 million compared to 2016/17. Statutory Planning fees are forecast to increase by $0.02 million due to the new planning and subdivision fee regulations.

Rates & charges

Stat feesUser fees

Contributions

Grants - oper.Grants - cap.

Net gain on sale Other

0

5,000

10,000

15,000

20,000

$'000

Budget 17/18 Forecast 16/17

Rates and charges54%

Stat fees and fines1%

User fees5%

Grants - operating23%

Grants - capital15%

Other income2%

Budgeted income 2017/2018


A detailed listing of statutory fees is included in Appendix A. 10.2.3 User fees ($0.03 million decrease)

User charges relate mainly to the recovery of service delivery costs through the charging of fees to users of Council’s services. These include separate rating schemes, use of leisure, entertainment and other community facilities and the provision of human services such as family day care and home help services. In setting the budget, the key principle for determining the level of user charges has been to ensure that increases do not exceed CPI increases or market levels. User charges are projected to decrease by 2.1% or $0.03 million over 2016/17. Council has anticipated a reduction in fees from parking meters ($0.05 million) resulting from ageing parking meters. In addition, Council plans to increase most user charges by 2.0% in line with expected inflationary trends over the budget period to maintain parity between user charges and the costs of service delivery. A detailed listing of fees and charges is included in Appendix A. 10.2.4 Contributions - monetary ($0.05 million increase)

Contributions relate to monies paid by the community in regard to community projects. Contributions are projected to increase by $0.05 million or 83.3% compared to 2016/17 due mainly to the Ararat Arts Precinct Redevelopment.

10.2.5 Net gain on disposal of property, infrastructure, plant and equipment ($no change)

Proceeds from the disposal of Council assets is forecast to remain consistent for 2017/18 and relate mainly to the planned cyclical replacement of part of the plant and vehicle fleet ($0.25 million) and sale of properties including surplus land ($0.03 million). The written down value of assets sold is forecast to be $0.22 million. 10.2.6 Other income ($0.04 million increase)

Other income relates to a range of items such as property rentals and other miscellaneous income items. It also includes interest revenue on investments and rate arrears. Other income is forecast to increase by 9.7% or $0.04 million compared to 2016/17. Interest on investments is forecast to increase by 14.7% or $0.04 million compared to 2016/17. This is mainly due to a forecast increase in cash reserves held to fund works carried forward from previous year and for other specific purposes.


10.3 Expenses Expense Types

Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Employee costs 10.3.1 11,034 11,628 594 Materials and services 10.3.2 8,945 8,570 (375) Bad and doubtful debts 10.3.3 0 0 0 Depreciation and amortisation 10.3.4 7,548 7,925 377 Borrowing costs 10.3.5 140 140 0 Other expenses 10.3.6 282 317 35

Total expenses 27,949 28,580 631

Emp.costs

Mat &serv

Bad & D/Debts

Deprec'n

Borrowing costs

Otherexp's

0

5,000

10,000

15,000

$'000

Budget 17/18 Forecast 16/17

Employee costs41%

Materials and services

30%

Bad and doubtful debts0%

Depreciation and amortisation

28%

Borrowing costs0%

Other expenses1%

Budgeted expenses 2017/2018


10.3.1 Employee costs ($0.59 million increase)

Employee costs include all labour related expenditure such as wages and salaries and on-costs such as allowances, leave entitlements, employer superannuation, rostered days off, etc. Employee costs are forecast to increase by 5.4% or $0.59 million compared to 2016/17. Movements in employee costs are influenced by a number of factors:

Renegotiation of Council’s Enterprise Bargaining Agreement (EBA) which expired in October 2016.

Movement of some staff to a higher band upon their anniversary

Various externally funded positions impact on employment staff costs from year to year

Increased demand for services provided to the community, including home & community care A summary of human resources expenditure categorised according to the organisational structure of Council is included below: Comprises

Department

Budget 2017/18 $’000

Permanent Full time

$’000

Permanent Part Time

$’000 Planning & Public Health 1,125 739 386 Community Life 1,971 943 1,028 Operational Services 4,197 4,197 0 Assets, Finances & Corporate Services 1,447 1,447 0 Corporate Strategy, Risk & Governance 2,385 1,967 418

Total permanent staff expenditure 11,125 9,293 1,832 Casuals and other expenditure 503

Total expenditure 11,628

A summary of the number of full time equivalent (FTE) Council staff in relation to the above expenditure is included below: Comprises

Department

Budget FTE

Permanent Full time

Permanent Part Time

Planning & Public Health 10.1 7.0 3.1 Community Life 23.8 10.0 13.8 Operational Services 57.0 57.0 0.0 Assets, Finances & Corporate Services 15.0 15.0 0.0 Corporate Strategy, Risk & Governance 22.5 18.0 4.5

Total permanent staff 128.4 107.0 21.4 Casuals and other 6.4

Total staff 134.8


10.3.2 Materials and services ($0.38 million decrease)

Materials and services include the purchases of consumables, payments to contractors for the provision of services and utility costs. A number of specific, one-off projects included in the budget for 2016/17 do not require the same level of funding in 2017/18. These include Councillor Elections, service excellence framework and allowance for the development of a new Council Plan. Consequently, materials and services are forecast to decrease by 4.2% or $0.38 million compared to 2016/17. 10.3.3 Bad and doubtful debts ($no change)

Bad and doubtful debts are not expected in 2016/17. 10.3.4 Depreciation and amortisation ($0.38 million increase)

Depreciation is an accounting measure which attempts to allocate the value of an asset over its useful life for Council’s property, plant and equipment including infrastructure assets such as roads and drains. The increase of $0.38 million for 2017/18 is due mainly to the completion of the 2016/17 capital works program and the full year effect of depreciation on the 2016/17 capital works program. Refer to Section 6. ‘Analysis of Capital Budget’ for a more detailed analysis of Council’s capital works program for the 2017/18 year. 10.3.5 Borrowing costs ($no change)

Borrowing costs relate to interest charged by financial institutions on funds borrowed. The $1 million loan included in this budget will not be taken up until late 2017/18. 10.3.6 Other items of expense ($0.04 million increase)

Other items of expense relate to a range of unclassified items including Councillors allowances, Mayoral allowance and audit fees. Other expenses are forecast to increase by 12.4% or $0.04 million compared to 2016/17.


11. Analysis of budgeted cash position This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2017/18 year. Budgeting cash flows for Council is a key factor in setting the level of rates and providing a guide to the level of capital expenditure that can be sustained with or without using existing cash reserves. The analysis is based on three main categories of cash flows:

Operating activities - Refers to the cash generated or used in the normal service delivery functions of Council. Cash remaining after paying for the provision of services to the community may be available for investment in capital works, or repayment of debt

Investing activities - Refers to cash generated or used in the enhancement or creation of infrastructure and other assets. These activities also include the acquisition and sale of other assets such as vehicles, property and equipment

Financing activities - Refers to cash generated or used in the financing of Council functions and include borrowings from financial institutions and advancing of repayable loans to other organisations. These activities also include repayment of the principal component of loan repayments for the year.

11.1 Budgeted cash flow statement

Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Cash flows from operating activities 11.1.1 Receipts Rates and charges 15,909 16,385 476 User fees and fines 1,875 1,867 (8) Grants - operating 6,924 7,140 216 Grants - capital 5,005 4,621 (384) Interest 337 382 45 Other receipts 917 931 14

30,967 31,326 359 Payments Employee costs (11,034) (11,628) (594) Other payments (10,122) (9,744) 378

(21,156) (21,372) (216)

Net cash provided by operating activities 9,811 9,954 143

Cash flows from investing activities 11.1.2 Payments for property, infrastructure, plant and equipment (10,408) (11,102) (694)

Proceeds from sales of property, infrastructure, plant and equipment 270 279 9

Net cash used in investing activities (10,138) (10,823) (685)

Cash flows from financing activities 11.1.3 Finance costs (140) (140) - Proceeds from borrowings - 1,000 1,000 Repayment of borrowings - - -

Net cash used in financing activities (140) 860 1,000

Net decrease in cash and cash equivalents (467) (9) 458 Cash and cash equivalents at the beginning of the year 12,740 12,273 (467)

Cash and cash equivalents at end of the year 11.1.4 12,273 12,264 (9) Source: Section 348-.25


11.1.1 Operating activities ($0.14 million increase) The increase in cash inflows from operating activities is due mainly to a $0.48 million increase in rates and charges, partly offset by a $0.25 million decrease in capital grants to fund the capital works program. The net cash flows from operating activities does not equal the surplus (deficit) for the year as the expected revenues and expenses of the Council include non-cash items which have been excluded from the Cash Flow Statement. The budgeted operating result is reconciled to budgeted cash flows available from operating activities as set out in the following table.

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Surplus (deficit) for the year 2,177 1,945 (232) Depreciation 7,548 7,925 377 Loss (gain) on disposal of property, infrastructure, plant and equipment (54) (56) (2) Finance costs 140 140 0 Net movement in current assets and liabilities 0 0 0

Cash flows available from operating activities 9,811 9,954 143

11.1.2 Investing activities ($0.69 million increase) The increase in payments for investing activities represents the planned increase in capital works expenditure disclosed in Section 6 of this budget report. Proceeds from sale of assets are forecast to increase by $0.01 million during 2017/18. 11.1.3 Financing activities ($1.00 million increase) Council proposes to borrow $1.00 million in late 2017/18 to fund capital works for the Ararat Arts Precinct Redevelopment. This will be an interest-only loan so no principal is paid and finance charges on total borrowings are projected to be $0.14 million. 11.1.4 Cash and cash equivalents at end of the year ($0.01 million decrease) Overall, total cash and investments is forecast to decrease by $0.01 million to $12.26 million as at 30 June 2018.

11.2 Restricted and unrestricted cash and investments Cash and cash equivalents held by Council are restricted in part, and not fully available for Council’s operations. The budgeted cash flow statement above indicates that Council is estimating at 30 June 2018 it will have cash and investments of $12.26 million, which has been restricted as shown in the following table.

Forecast

Actual Budget Variance

Ref 2016/17 2017/18

$’000 $’000 $’000 Total cash and investments 12,273 12,264 (9) Restricted cash and investments - Statutory reserves 11.2.1 (183) (83) 100 - Cash held to fund carry forward capital works 11.2.2 (484) - 484 - Trust funds and deposits (373) (373) -

Unrestricted cash and investments 11.2.3 11,233 11,808 575 - Discretionary reserves 11.2.4 (8,656) (9,189) (533)

Unrestricted cash adjusted for discretionary reserves 11.2.5 2,577 2,619 42


11.2.1 Statutory reserves ($0.08 million) These funds must be applied for specified statutory purposes in accordance with various legislative requirements. While these funds earn interest revenues for Council, the funds are not available for other purposes. 11.2.2 Cash held to fund carry forward capital works There is no amount shown as cash held to fund carry forward works at 30 June 2018, as it is expected that the capital works budget in the 2017/18 financial year will be fully expended. An amount of $0.48 million is forecast to be held at 30 June 2017 to fund capital works budgeted but not completed in the financial year. Section 6.2 contains further details on capital works funding. 11.2.3 Unrestricted cash and investments ($11.81 million) The amount shown is in accordance with the definition of unrestricted cash included in the Regulations. These funds are free of statutory reserve funds and cash to be used to fund capital works expenditure from the previous financial year. 11.2.4 Discretionary reserves ($9.19 million) These funds are shown as discretionary reserves as, although not restricted by a statutory purpose, Council has made decisions regarding the future use of these funds and unless there is a Council resolution these funds should be used for those earmarked purposes. The decisions about future use of these funds has been reflected in Council’s Strategic Resource Plan and any changes in future use of the funds will be made in the context of the future funding requirements set out in the plan. 11.2.5 Unrestricted cash adjusted for discretionary reserves ($2.62 million) These funds are free of all specific Council commitments and represent funds available to meet daily cash flow requirements, unexpected short term needs and any budget commitments which will be expended in the following year such as grants and contributions. Council regards these funds as the minimum necessary to ensure that it can meet its commitments as and when they fall due without borrowing further funds.


12. Analysis of capital budget This section analyses the planned capital works expenditure budget for the 2017/18 year and the sources of funding for the capital budget. Further detail on the capital works program can be found in Section 6. 12.1 Capital works expenditure Capital Works Areas Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Property 12.1.1 Buildings 2,068 5,807 3,739

Total property 2,068 5,807 3,739

Plant and equipment 12.1.2 Plant, machinery and equipment 920 1,115 195 Fixtures, fittings and furniture 35 235 200 Library books 58 58 0

Total plant and equipment 1,013 1,408 395

Infrastructure 12.1.3 Roads 5,441 2,770 (2,671) Bridges 1,341 560 (781) Footpaths and cycleways 309 357 48 Drainage 236 200 (36)

Total infrastructure 7,327 3,887 (3,440)

Total capital works expenditure 10,408 11,102 621

Represented by: New asset expenditure 12.1.4 517 295 (222) Asset renewal expenditure 12.1.4 7,758 4,906 (2,852) Asset upgrade expenditure 12.1.4 2,133 5,901 3,768 Asset expansion expenditure 12.1.4 0 0 0

Total capital works expenditure 10,408 11,102 694


Source: Section 3. A more detailed listing of the capital works program is included in Section 6.

12.1.1 Property ($5.81 million) The property class comprises buildings and building improvements including community facilities, municipal offices, sports facilities and pavilions.

52%

13%

35%

Budgeted capital works 2017/2018

Property

Plant and equipment

Infrastructure

3%

44%53%

Budgeted capital works 2017/2018

New asset expenditure

Asset renewal expenditure

Asset upgrade expenditure


For the 2017/18 year, $5.81 million will be expended on building and building improvement projects. The more significant projects include the Ararat Arts Precinct Redevelopment ($5.61 million), Olver Stand works ($0.10 million) and Willaura Hall roof replacement ($0.10 million). 12.1.2 Plant and equipment ($1.41 million) Plant and equipment includes plant, machinery and equipment, computers and telecommunications, and library books. For the 2017/18 year, $1.41 million will be expended on plant, equipment and other projects. The more significant projects include ongoing cyclical replacement of the plant and vehicle fleet ($1.12 million) and upgrade and replacement of information technology ($0.20 million) and library material purchases ($0.06 million). 12.1.3 Infrastructure ($3.89 million) Infrastructure includes roads, bridges, footpaths and cycleways, drainage, recreation, leisure and community facilities, parks, open space and streetscapes, off street car parks and other structures. For the 2017/18 year, $2.77 million will be expended on road projects. The more significant projects include local road reseals ($1.12 million), road resheeting ($0.70 million), Mount William Road reconstruction ($0.46 million) and Back Bolac Road ($0.20 million). Bridge expenditure will be $0.56 million, including $0.45 million to reconstruct the Elmhurst-Landsborough Bridge. The Elmhurst-Landsborough Bridge will be built by Pyrenees Shire Council. Other infrastructure expenditure includes $0.20 million on drainage and $0.36 million on footpaths and cycleways. 12.1.4 Asset renewal ($4.91 million), new assets ($0.29 million), upgrade ($5.90 million) and

expansion ($0.00 million) A distinction is made between expenditure on new assets, asset renewal, upgrade and expansion. Expenditure on asset renewal is expenditure on an existing asset, or on replacing an existing asset that returns the service of the asset to its original capability. Expenditure on new assets does not have any element of expansion or upgrade of existing assets but will result in an additional burden for future operation, maintenance and capital renewal.

12.2 Funding sources Sources of Funding Ref

Forecast Actual

2016/17 $’000

Budget 2017/18 $’000

Variance

$’000 Grants 12.2.1 5,005 4,621 (384) Contributions 30 70 40 Borrowings 0 1,000 1,000 Council cash - operations 12.2.2 4,299 3,988 (311) - proceeds from sale of assets 12.2.3 200 249 49 - reserve cash and investments 12.2.4 874 1,174 300

Total funding sources 10,408 11,102 694


Source: Section 6

12.2.1 Grants - capital ($4.62 million) Capital grants include all monies received from State and Federal sources for the purposes of funding the capital works program. Significant grants and contributions are budgeted to be received for the Ararat Arts Precinct Redevelopment ($3.57 million) and Roads to Recovery projects ($1.05 million). 12.2.2 Council cash - operations ($3.99 million) Council generates cash from its operating activities, which is used as a funding source for the capital works program. It is forecast that $3.99 million will be generated from operations to fund the 2017/18 capital works program. 12.2.3 Council cash - proceeds from sale of assets ($0.25 million) Proceeds from sale of assets include motor vehicle sales in accordance with Council’s fleet renewal policy of $1.12 million. 12.2.4 Council cash - reserve cash and investments ($1.17 million) Council has significant cash reserves, which it is currently using to fund its annual capital works program. The reserves include monies set aside for specific purposes such as Building Capital Reserve and non-specific reserves such as the Capital Works Reserves. The proceeds from the sale of land & building is transferred in the year of sale to use on future capital works. For 2017/18 $1.17 million will be used to fund part of the new capital works program including Ararat Arts Precinct Redevelopment ($0.97 million) which includes $0.48 unspent grant funds forecast to be transferred to the Capital Works Reserve at 30 June 2017 and upgrade and replacement of information technology ($0.20 million).

20%

0%

29%

5%

34%

12%

Budgeted total funding sources 2017/18

Grants

Contributions

Operations

Proceeds on sale of assets

Reserve cash and investments

Unrestricted cash and investments


13. Analysis of budgeted financial position This section analyses the movements in assets, liabilities and equity between 2016/17 and 2017/18. It also considers a number of key financial performance indicators. 13.1 Budgeted balance sheet

Ref

Forecast Actual

2017 $’000

Budget 2018 $’000

Variance

$’000 Current assets 13.1.1 Cash and cash equivalents 12,273 12,264 (9) Trade and other receivables 2,348 2,348 - Financial assets - - - Other assets 114 114 -

Total current assets 14,735 14,726 (9) Non-current assets 13.1.1 Trade and other receivables - - - Property, infrastructure, plant and equipment 170,461 173,415 2,954 Investment property 1,258 1,258 -

Total non-current assets 171,719 174,673 2,954

Total assets 186,454 189,399 2,945 Current liabilities 13.1.2 Trade and other payables 697 697 - Trust funds and deposits 373 373 - Provisions 3,116 3,116 - Interest-bearing loans and borrowings - - -

Total current liabilities 4,186 4,186 - Non-current liabilities 13.1.2 Provisions 187 187 - Interest-bearing loans and borrowings 2,000 3,000 (1,000)

Total non-current liabilities 2,187 3,187 (1,000)

Total liabilities 6,373 7,373 (1,000)

Net assets 180,081 182,026 1,945 Equity 13.1.4 Accumulated surplus 74,459 76,455 1,996 Reserves 105,622 105,571 (51)

Total equity 180,081 182,026 1,945 Source: Section 3

13.1.1 Current Assets ($0.01 million decrease) and Non-Current Assets ($2.95 million increase) Cash and cash equivalents include cash and investments such as cash held in the bank and in petty cash and the value of investments in deposits or other highly liquid investments with short term maturities of three months or less. These balances are projected to decrease by $0.01 million during the year. Trade and other receivables are monies owed to Council by ratepayers and others. Short term debtors are not expected to change significantly in the budget.


Other assets includes items such as prepayments for expenses that Council has paid in advance of service delivery, inventories or assets held for sale or consumption in Council’s services and other revenues due to be received in the next 12 months. Property, infrastructure, plant and equipment is the largest component of Council’s worth and represents the value of all the land, buildings, roads, vehicles, equipment, etc which has been built up by Council over many years. The $2.95 million increase in this balance is attributable to the net result of the capital works program ($11.10 million of new assets), depreciation of assets ($7.93 million) and the sale through sale of property, plant and equipment ($0.22 million). 13.1.2 Current Liabilities ($no change) and Non-Current Liabilities ($1.00 million increase) Trade and other payables are those to whom Council owes money as at 30 June. These liabilities are budgeted to remain consistent with 2016/17 levels. Provisions include accrued long service leave, annual leave and rostered days off owing to employees. These employee entitlements are only expected to increase marginally due to more active management of entitlements despite factoring in an increase for Collective Agreement outcomes. Interest-bearing loans and borrowings are borrowings of Council. Council is budgeting to borrow $1.00 million late in 2017/18, with no repayments of principal. 13.1.3 Working Capital ($0.01 million decrease) Working capital is the excess of current assets above current liabilities. This calculation recognises that although Council has current assets, some of those assets are already committed to the future settlement of liabilities in the following 12 months, and are therefore not available for discretionary spending. Some of Council’s cash assets are restricted in that they are required by legislation to be held in reserve for specific purposes or are held to fund carry forward capital works from the previous financial year. Forecast

Actual 2017 $’000

Budget 2018 $’000

Variance

$’000 Current assets 14,735 14,726 9 Current liabilities 4,186 4,186 -

Working capital 10,549 10,540 9 Restricted cash and investment current assets - Statutory reserves (183) (83) (100) - Cash held to fund carry forward capital works (484) - (484) - Trust funds and deposits (373) (373) -

Unrestricted working capital 9,882 10,457 (575)

In addition to the restricted cash shown above, Council is also projected to hold $9.19 million in discretionary reserves at 30 June 2018. Although not restricted by a statutory purpose, Council has made decisions regarding the future use of these funds and unless there is a Council resolution these funds should be used for those earmarked purposes. 13.1.4 Equity ($1.95 million increase) Total equity always equals net assets and is made up of the following components:

Asset revaluation reserve which represents the difference between the previously recorded value of assets and their current valuations

Other reserves that are funds that Council wishes to separately identify as being set aside to meet a specific purpose in the future and to which there is no existing liability. These amounts are transferred from the Accumulated Surplus of the Council to be separately disclosed.

Accumulated surplus which is the value of all net assets less Reserves that have accumulated over time. $1.95 million of the $2.00 million increase in accumulated surplus results directly from


the surplus for the year. An amount of $0.05 million (net) is budgeted to be transferred from other reserves to accumulated surplus. This reflects the usage of investment cash reserves to partly fund the capital works program. This reflects the allocation to cash reserves to fund future capital works and repay the interest-only loan raised under the Local Government Funding vehicle. This is a transfer between equity balances only and does not impact on the total balance of equity.

13.2 Key assumptions In preparing the Balance Sheet for the year ending 30 June 2018 it was necessary to make a number of assumptions about assets, liabilities and equity balances. The key assumptions are as follows:

100% of all rates and charges raised will be collected in the 2017/18 year

Trade and other creditors to remain consistent with 2016/17 levels

Other debtors and creditors to remain consistent with 2016/17 levels

Employee entitlements to be increased by the Collective Agreement outcome, offset by the impact of proactive management of leave entitlements of staff

New borrowings of $1 million for the upgrade works at the Ararat Performing Arts Centre/Ararat Regional Art Gallery

Repayment of loan principal to be $nil as the loans are interest-only “bullet loans”

Total capital expenditure to be $11.10 million

Transfer to reserves of $1.20 million and transfer from reserves of $1.25 million. Transfers to reserves includes $0.39 million transferred to a Loan Repayment reserve to repay the interest-only loan raised under the Local Government Funding Vehicle (payment of the entire principal of the loan is due at the end of the loan term).


Long Term Strategies

This section includes the following analysis and information 14 Strategic resource plan 15 Rating information 16 Other long term strategies


14. Strategic resource plan This section includes an extract of the adopted Strategic Resource Plan (SRP) to provide information on the long term financial projections of the Council.

14.1 Plan development The Act requires a SRP to be prepared describing both financial and non-financial resources (including human resources) for at least the next four financial years to achieve the strategic objectives in the Council Plan. In preparing the SRP, Council must take into account all other plans and strategies in regard to services and initiatives which commit financial and non-financial resources for the period of the SRP. Council has prepared a SRP for the four years 2017/18 to 2020/21 as part of its ongoing financial planning to assist in adopting a budget within a longer term framework. The SRP takes the strategic objectives and strategies as specified in the Council Plan and expresses them in financial terms for the next four years. 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

Maintain a strong cash position, ensuring Council remains financially sustainable in the long-term

Achieve a balanced budget on a cash basis in 2017/18 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 SRP is updated annually through a rigorous process of consultation with Council service providers followed by a detailed sensitivity analysis to achieve the key financial objectives.

14.2 Financial resources The following table summarises the key financial results for the next four years as set out in the SRP for years 2017/18 to 2020/21. Section 3 includes a more detailed analysis of the financial resources to be used over the four year period.

Forecast

Actual Budget Strategic Resource Plan

Projections Trend

Indicator 2016/17 2017/18 2018/19 2019/20 2020/21 +/o/-

$’000 $’000 $’000 $’000 $’000

Surplus/(deficit) for the year 2,177 1,945 (2,192) (2,695) (3,225) - Adjusted underlying result (1,834) (1,732) (2,222) (2,725) (3,255) - Cash and investments balance 12,273 12,264 13,182 13,915 14,454 + Cash flow from operations 9,811 9,954 6,211 6,122 6,026 o Capital works expenditure 10,408 11,102 5,443 5,551 5,661 o

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

The following graph shows the general financial indicators over the four year period.


The key outcomes of the SRP are as follows:

Financial sustainability (Section 11) - Cash and investments is forecast to increase over the four year period from $12.26 million to $14.45 million. This is consistent with Council’s intention to replenish the $2.45 million used in 2012/13 to pay the shortfall in Vision Super Defined Benefits Scheme. The budget includes an annual allocation of $0.37 million to be transferred to a Loan Repayment Reserve established to enable the interest-only loans raised under the Local Government Funding vehicle to be paid on maturity.

Rating levels (Section 15) – Rate increases are forecast over the four years at an average of 2.0% which is the rate cap set by the State Government for 2017/18.

Service delivery strategy (Section 16) – Service levels have been maintained throughout the four year period. An operating surplus is forecast in 2017/18 but deficits are forecast for the remaining years. Significant capital grant revenue is expected in 2017/18 to fund the capital works program but this revenue has not been budgeted in the remaining years. The adjusted underlying result (deficit) is increasing from $1.73 million in 2016/17 to $3.26 million in 2020/21. The adjusted underlying result is a measure of financial sustainability and is an important measure as one-off capital items can often mask the operating result

Borrowing strategy (Section 16) – Borrowings are forecast to increase from $2.00 million to $3.00 million over the four year period. This includes new borrowings of $1.00 million in 2017/18.

Infrastructure strategy (Section 16) - Capital expenditure over the four year period will total $27.76 million at an average of $6.94 million. Excluding the Performing Arts Centre development works, the average is $5.54 million.

(5,000)

0

5,000

10,000

15,000

2016/17 2017/18 2018/19 2019/20 2020/21

$'0

00

Surplus/(deficit) for the year Adjusted underlying result

Capital Works Expenditure Cash flows from operations

Cash and investments balance


15. Rating information This section contains information on Council’s past and foreshadowed rating levels along with Council's rating structure and the impact of changes in property valuations. This section should be read in conjunction with Council’s Rating Strategy which is available on Council’s website.

15.1 Rating context In developing the Strategic Resource Plan (referred to in Section 14.), rates and charges were identified as an important source of revenue, accounting for 57.9% of the total revenue received in 2015/16. 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 community. Council provides a number of regional city type services such as performing arts centre, art gallery, Chinese heritage museum, botanical gardens, indoor and outdoor pools, Alexandra Oval Community and Recreation Centre, but the rate revenue is derived from a small rural base and its ability to raise income through user fees and charges is limited. This regional city focus then has a flow-on effect with high recurrent operations and maintenance costs per assessment

15.2 Future Rates and Charges The following table sets out future proposed increases in revenue from rates and charges and the total rates to be raised, based on the forecast financial position of Council as at 30 June 2017, and the forecast rate increase used for financial planning purposes

General Rate

Municipal Charge

Garbage Charge

Recycling Charge

Total Rates

Year Increase Increase Increase Increase Raised

% % % % $’000

2016/17 2.50 2.50 2.50 2.50 15,909

2017/18 2.00 2.00 2.00 2.00 16,358

2018/19 2.00 2.00 2.00 2.00 16,713

2019/20 2.00 2.00 2.00 2.00 17,047

2020/21 2.00 2.00 2.00 2.00 17,388


15.3 Rating structure Council is reviewing the rating strategy adopted in June 2016 and has sought feedback from the community. Two options were widely advertised through Council’s website and the Ararat Advertiser. At the Special Council meeting held 2 May 2017 Council resolve to adopt a third option Draft Rating Strategy that abolishes differential rates and municipal charge and raise the municipal rates by the application of a uniform rate. A rating strategy is the method by which Council systematically considers factors of importance that informs its decisions about the rating system. The rating system determines how Council will raise money from properties within the municipality. It does not influence the total amount of money to be raised, only the share of revenue contributed by each property The Rating Strategy documents principles in relation to differential rates, uniform rates, municipal charges, special rates and charges, rebates and/or incentives and service charges. This strategy has guided Council in its decision making as part of the annual budget setting process. Having reviewed the various valuation bases for determining the property value component of rates, Council has determined to apply a Capital Improved Value (CIV) basis on the grounds that it provides the most equitable distribution of rates across the municipality. There are currently no plans to change this. The proposed rating structure comprises one uniform rate in accordance with the requirements of Section 161 ‘Uniform Rates’ of the Act. The same rate of 0.5975 cents/$CIV will apply to all classes of property. The following differential rates raised under Section 161 “Differential Rates” of the Act applied in 2016/17:

commercial rate of 1.1496 cents/$CIV was set at 160% of the general rate,

the industrial rate of 0.9341 cents/$CIV was set at 130% of the general rate and

the farm rate of $0.3952 cents/$CIV was set at 55% of the general rate.

the general rate was $0.7185 cents/$CIV

15.3.1 Changing the differential rate and municipal charge to a uniform rate The effects of discontinuing the differential rates and municipal charge, and applying a uniform rate in 2017/18 is summarised in the following graph. The figures are based on a 2% increase in rates which is the maximum rate rise allowed under the State Government’s Rate Capping Framework. Farms will be contributing 55% of the total rates in 2017/18 compared with 38% in 2016/17; whilst the general class of properties will be paying 40% of the total rates in 2017/18 compared to 52% in 2016/17.

52%

40%

9%

4%

2%

1%

38%

55%

Status Quo – Leave farm differential at 55% of the general rate and Municipal Charge (MC) increase from $90 to $92

Discontinue Differerential Rates andapply a Uniform Rate across all property

classes

% Share of the total Rates & Municipal Charges A Uniform Rate across all property classes and no

Municipal Charge in 2017/18

General Commercial Industrial Farm


The dollar effects of discontinuing the differential rates and municipal charge, and applying a uniform rate in 2017/18 is summarised in the following table. Based on a 2% rate increase for the 2017/18 budget, the total amount raised from the farming sector would be $2,432,665 more, the general sector would be $1,716,493 less, the commercial sector would be $631,140 less and the industrial sector $86,464 less.

Rate Differential

No. CIV '000 2016/17

% share of CIV

Rates & MC Revenue 2016/17 existing

differentials ‘000*

Rates Revenue 2017/18 –

uniform rate, no municipal

charge ‘000

Share of Revenu

e

$ Change

‘000

% change

General 4,966 $931,205 39% $7,280 $5,564 46% -$1,716 -24%

Commercial 328 $104,512 4% $1,256 $625 9% -$631 -50%

Industrial 91 $22,002 1% $218 $132 2% -$86 -39%

Farm 1,718 $1,299,845 55% $5,334 $7,767 43% $2,433 46%

Totals 7,103 $2,357,563 100% $14,088 $14,088 100% -$0

* The comparative figures for 2016/17 have been artificially inflated by the assumed 2% rate rise to allow the reader to gain a better understanding of the impact of the proposed 2017/18 differential rate changes. Council believes these changes are required to ensure the equitable imposition of rates and charges as required by Section 3C(2)(e) of the Local Government Act 1989. Council also has a kerbside collection charge and a recycling charge as allowed under the Act. Council Rebate The Rating Strategy adopted by Council in June 2016 provided that Council grant a Council funded rebate of $90 for the 2016/17 year for ratepayers entitled to receive the State Government Concession under Section 171 of the Local Government Act 1989. The rebate has been increased to $92 for 2017/18 in the reviewed Strategy. The rebate is granted in accordance with Section 169 of the Local Government Act 1989. The rebate was introduced to assist in the proper social development of Council’s municipal district and give rise to a community benefit because it facilitates greater equity for pensioner ratepayers.


The following table summarises the rates to be determined for the 2017/18 year. A more detailed analysis of the rates to be raised is contained in Section 7.

Rate type How applied 2016/17 2016/17

Differential 2017/18

2017/18 Uniform

rate

General rate Cents in $ of CIV 0.7185 100% 0.5975 100%

Commercial rate Cents in $ of CIV 1.1496 160% 0.5975 100%

Industrial rate Cents in $ of CIV 0.9341 130% 0.5975 100%

Farm rate Cents in $ of CIV 0.3952 55% 0.5975 100%

Municipal charge $ per rateable property

$90 $0

Kerbside collection charge – 240 litre

$ per property $383 $391

Kerbside collection charge – 120 litre


Recycling charge $ per property $107 $109

Water charge – Mininera $ per property $421 $429

Water charge – Rossbridge


Water charge – Tatyoon $ per property $421 $429

Water charge – Travellers Rest



16. Summary of other strategies This section sets out summaries of the strategies that have been developed and incorporated into the

Strategic Resource Plan including borrowings, infrastructure and service delivery. 16.1 Borrowings In developing the Strategic Resource Plan (SRP) (see Section 14), borrowings was identified as an important funding source for capital works programs. In determining an appropriate debt level, the following factors are seen as important:

level of debt servicing costs as a proportion of rate revenue;

ability to raise revenue in addition to rates;

level of realisable assets to support the indebtedness;

achieving the right mix of capital works and debt commitments, population growth and demographics; and

community needs. The relative debt levels of councils within the small shire councils group are shown in the graph below. Ararat Council’s total debt at 30 June 2016 was $2.00 million compared to an average of $2.506 million.

Council borrowed $2 million to finance the Alexandra Oval Community & Recreation Centre projects. The budget for 2017/18 allows for further borrowings of $1 million to finance major upgrade works for the Ararat Arts Precinct Redevelopment. Council obtained the new loans using the Local Government Funding Vehicle. Under this arrangement the new loans are interest-only loans with a balloon payment at the end of the loan period. To assist with the future repayment of the principal, Council has created a Loan Repayment Reserve, and makes an annual allocation to this reserve.


It is likely that new borrowings and external grants will be required to fund future infrastructure initiatives. The following table sets out future proposed borrowings, based on the forecast financial position of Council as at 30 June 2017.

Year New

Borrowings Principal

Paid Interest

Paid Balance 30 June

$’000 $’000 $’000 $’000 2016/17 - - 140 2,000 2017/18 1,000 - 140 3,000 2018/19 - - 140 3,000 2019/20 - - 140 3,000 2020/21 - - 140 3,000

The table below shows information on borrowings specifically required by the Regulations.

2016/17 2017/18

$’000 $’000 Total amount borrowed as at 30 June of the prior year 2,000 2,000 Total amount proposed to be borrowed - 1,000 Total amount projected to be redeemed - - Total amount of borrowings as at 30 June 2,000 3,000


16.2 Service delivery The key objectives in Council’s Strategic Resource Plan (referred to in Section 14.) which directly impact the future service delivery strategy are to maintain existing service levels and to achieve financial sustainability in the short to long term. The Rating Information (see Section 15.) also refers to future rate increases that are based on the rate cap set by the State Government for 2017/18. 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. The general influences affecting all operating revenue and expenditure include the following: 2017/2018 2018/2019 2019/2020 2020/2021

% % % %

Materials and services cost increases

3.00 3.00 3.00 3.00

Rate increases 2.00 2.00 2.00 2.00

Property growth 0.08 0.08 0.08 0.08

Wages growth 2.00 2.00 2.00 2.00

Government funding 0.50 0.50 0.50 0.50

Statutory fees 2.00 2.00 2.00 2.00

User fees 2.00 2.00 2.00 2.00

Investment return 2.00 2.00 2.00 2.00

Borrowing rate 4.65 4.65 4.65 4.65

As well as the general influences, there are also a number of specific influences which relate directly to service areas or activities. The most significant changes in these areas are summarised below. Waste Management Services Landfill levies charged by the State Government are increasing by 2%. Valuation Services The Council is required to revalue all properties within the municipality every two years. The last general revaluation was carried out as at 1 January 2016 effective for the 2017/18 year and the next revaluation will be undertaken as at 1 January 2018. An allowance of $0.043 million has been made every year to meet the additional cost of resources to complete the revaluation process. The State Revenue Office reimburses Council half the cost of the revaluation, as the valuations are also used to raise State land tax. Ararat Arts Precinct Redevelopment The Ararat Arts Precinct will be upgraded and it is expected services will be affected during the upgrade.


Appendix A Fees and charges schedule This appendix presents the fees and charges of a statutory and non-statutory nature which will be charged in respect to various goods and services provided during the 2017/18 year. Statutory fees and charges may be subject to change during 2017/18.

DESCRIPTION 2016/2017

GST INCLUSIVE 2017/2018

GST INCLUSIVE

CUSTOMER SERVICES

Plan Printing & Copying

A0 (841mm x 1189mm) $13.50 $13.50

A1 (594mm x 841mm) $6.75 $6.75

A2 (420mm x 594mm) $3.60 $3.60

A3 Black & White $0.55 $0.55

A3 Colour $1.00 $1.00

A4 Black & White $0.30 $0.30

A4 Colour $1.00 $1.00

B1 (707mm x 1000mm) $9.75 $9.75

B2 (707mm x 500mm) $7.25 $7.25

Aerial Image (A4) $22.00 $22.00

Aerial Image (A3) $33.00 $33.00

FINANCE

Freedom of Information $27.20 $27.74

Land Information Certificate $24.80 $25.30

Direct Debit Rejection Fee $5.50 $5.50

LIBRARY

Library fines (per item per day) $0.25 $0.25

Library Reservations no charge no charge

Library photocopying/printing/faxes:

A4 Black & white $0.30 $0.30

A4 Colour $1.00 $1.00

A3 Black & White $0.30 $0.30

A3 Colour $1.00 $1.00

Fax

send first page $2.20 $2.20

every other page $1.10 $1.10

receive $0.30 $0.30

Scan document to USB or email $0.30 $0.30

Printing

Black & white $0.20 $0.20

Colour $1.00 $1.00

Library Sales as advertised as advertised

Library - lost cards $2.00 $2.00

Library - Damaged/lost items cost of

replacement cost of

replacement

Library - Activities no charge no charge

Library - Public telephone $0.50 $0.50




GST INCLUSIVE

Library - Donations n/a n/a

Library - Processing $5.50 $5.50

Library - Miscellaneous n/a n/a

Library - Book Club per person $44.00 $44.00

Library - Book Sales (deleted book stock) (on arrangement

with Ballarat) (on arrangement

with Ballarat)

Library - Bags $2.50 $2.50

Library - Loans (non swift public libraries) $2.00 $2.00

Library - Loans (from academic libraries) $18.50 $18.50

Library - Debt collection $15.00 $15.00

GUM SAN

Gum San Admissions

Adult $10.00 $10.00

Concession $8.00 $8.00

Child $8.00 $8.00

Family $28.50 $28.50

Gum San Group Admissions (over 10 people)

Adult $8.00 $8.00

Child $7.00 $7.00

GREAT HALL HIRE Gum San Great Hall Hire Day Rate Community Not applicable $210.00

Commercial Not applicable $262.50

1-80 attendees

$218.28 for first 4 hours, and $29.07

per extra hour Not applicable

81-120 attendees



Over 120 attendees



Evening Rate

Community Not applicable $300.00

Commercial Not applicable $375.00

1-80 attendees



81-120 attendees



Over 120 attendees



Exhibition $278.46 Not applicable

Upstairs Meeting Room (Department of Justice) $137.50 Not applicable

ART GALLERY

Gallery membership




GST INCLUSIVE

Single $30.00 $30.00

Double/Family $45.00 $45.00

Single (Concession) $20.00 $20.00

Corporate $50.00 $50.00

School - Rural $30.00 $30.00

School - Primary $40.00 $40.00

School - Secondary $50.00 $50.00

PERFORMING ARTS CENTRE

Auditorium Hire

Auction $267.00 $267.00

Conference/Meeting

Local


per extra hour


per extra hour

Non-Local


per extra hour


per extra hour

Exhibition $327.00 $327.00

Function Room

1-100 attendees


per extra hour


per extra hour

101-200 attendees


per extra hour


per extra hour

201-300 attendees


per extra hour


per extra hour

Over 300 attendees


per extra hour


per extra hour

Funeral $238.00 $238.00

Other depends on event depends on event

Project Hall Hire $380.00 $380.00

Rehearsals

Debutante Ball


per extra hour


per extra hour

School


per extra hour


per extra hour

Theatre/Concert


per extra hour


per extra hour

School Formal Ball


per extra hour


per extra hour

Theatre Set-up Tiered Seating

Local $267.00 $267.00

Non-Local $380.00 $380.00

Art & Craft Room Hire

Auction $190.00 $190.00




GST INCLUSIVE

Exhibition

Local $65.00 $65.00

Non-Local $91.50 $91.50

Green Room $22.00 $22.00

Meetings $41.50 $41.50

Party $327.50 $327.50

Reception $190.00 $190.00

Rehearsal $33.50 $33.50

Wedding $327.50 $327.50

Workshop

Local $24.00 $24.00

Non-Local $41.50 $41.50

Foyer Hire

Immunisations $77.00 $77.00

Meeting


per extra hour


per extra hour

Reception $190.00 $190.00

Supper Room Hire

Auction $190.00 $190.00

Meetings


per extra hour


per extra hour

Other depends on event depends on event

Kitchen Hire

Heavy Use $131.00 $131.00

Light Use $65.00 $65.00

Dressing Room Hire $30.00 $30.00

Auxiliary Equipment Hire $65.50 $65.50

Portable PA and microphone

$40 per day plus a $100 deposit for

community hirers

$40 per day plus a $100 deposit for

community hirers

Ticket Selling Commission (per ticket) $3.30 $3.30

Crowd Controllers at cost (currently

$58 per hour) at cost (currently

$58 per hour)

PLANNING

Request copies of Planning permits $55.00 $60.00

Request copies of Endorsed Plans - standard search fee of $60.00 plus $3.50 per plan A2 size & above $55.00 $60.00

Reg 6 Fees for Amendment to Planning Schemes




GST INCLUSIVE

Stage 1 Considering a request to amend a planning scheme; and Taking action required by Division 1 of Part 3 of the Planning & Environment Act 1987; and Considering any submissions which do not seek a change to the amendment; and If applicable, abandoning the amendments.

$2,871.60 $2,929.30

Stage 2 Considering Submissions which seek a change to an amendment, and where necessary referring the submissions to a panel; and Providing assistance to a panel in accordance with Section 158; and Making a submission to a panel appointed under Part 8 at a hearing referred to in Section 24(b); and Considering the panel’s report in accordance with Section 27; and After considering submissions and the panel’s report, abandoning the amendment.

Up to 10 submissions $14,232.70

11 - 20

submissions $28,437.60

Over 20


Up to 10 submissions $14,518.60

11 - 20


Over 20


Stage 3 Adopting the Amendment or a part of the amendment in accordance with Section 29; and Submitting the amendment for approval by the Minister in accordance with Section 31; and Giving the notice of the approval of the amendment required by Section 36(2). $453.10 $462.20

Reg 9 Applications for permits under Section 47

Class 1 An application for use only $1,240.70 $1,265.60

Class 2 An application to develop land for a single dwelling per lot or use and develop land for a single dwelling per lot and undertake development ancillary to the use of the land for a single dwelling per lot included in the application (other than a class 7 permit or a permit to subdivide or consolidate land) if the estimated cost of development is $10,000 or less. $188.20 $192.00

Class 3 An application to develop land for a single dwelling per lot or use and develop land for a single dwelling per lot and undertake development ancillary to the use of the land for a single dwelling per lot included in the application (other than a class 8 permit or a permit to subdivide or consolidate land) if the estimated cost of development is more than $10,000 but not more than $100,000. $490.00 $490.00

Class 4 An application to develop land for a single dwelling per lot or use and develop land for a single dwelling per lot and undertake development ancillary to the use of the land for a single dwelling per lot included in the application (other than a class 8 permit or a permit to subdivide or consolidate land) if the estimated cost of development is more than $100,000 but not more than $500,000. $1,212.80 $1,237.10




GST INCLUSIVE

Class 5 An application to develop land for a single dwelling per lot or use and develop land for a single dwelling per lot and undertake development ancillary to the use of the land for a single dwelling per lot included in the application (other than a class 8 permit or a permit to subdivide or consolidate land) if the estimated cost of development is more than $500,000 but not more than $1,000,000. $1,310.40 $1,336.70

Class 6 An application to develop land for a single dwelling per lot or use and develop land for a single dwelling per lot and undertake development ancillary to the use of the land for a single dwelling per lot included in the application (other than a class 8 permit or a permit to subdivide or consolidate land) if the estimated cost of development is more than $1,000,000 but not more than $2,000,000. $1,407.90 $1,436.20

Class 7 VicSmart application if the estimated cost of development is $10,000 or less. $188.20 $192.00

Class 8 VicSmart application if the estimated cost of development is more than $10,000. $404.30 $412.40

Class 9 VicSmart application to subdivide or consolidate land. $188.20 $192.00

Class 10 An application to develop land (other than a class 2, class 3, class 7 or class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is less than $100,000. $1,080.40 $1,102.10

Class 11 An application to develop land (other than a class 4, class 5 or class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is more than $100,000 and not more than $1,000,000. $1,456.70 $1,486.00

Class 12 An application to develop land (other than a class 6 or class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is more than $1,000,000 and not more than $5,000,000. $3,213.20 $3,277.70

Class 13 An application to develop land (other than a class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is more than $5,000,000 and not more than $15,000,000. $8,189.80 $8,354.30

Class 14 An application to develop land (other than a class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is more than $15,000,000 and not more than $50,000,000. $24,151.10 $24,636.20

Class 15 An application to develop land (other than a class 8 or a permit to subdivide or consolidate land) if the estimated cost of development is more than $50,000,000. $54,282.40 $55,372.70

Class 16 An application to subdivide an existing building (other than a class 9 permit). $1,240.70 $1,265.60




GST INCLUSIVE

Class 17 An application to subdivide land into 2 lots (other than a class 9 or class 16 permit). $1,240.70 $1,265.60

Class 18 To effect a realignment of a common boundary between lots or consolidate 2 or more lots (other than a class 9 permit). $1,240.70 $1,265.60

Class 19 To subdivide land (other than a class 9, class 16, class 17 or class 18 permit).

$1,240.70 per 100 lots created


Class 20 An application to create, vary or remove a restriction within the meaning of the Subdivision Act 1988; or Create or remove a right of way; or Create, vary or remove an easement other than a right of way; or Vary or remove a condition in the nature of an easement (other than right of way) in a Crown grant. $1,240.70 $1,265.60

Class 21 A permit not otherwise provided for in the regulation. $1,240.70 $1,265.60

Reg 10 For Combined Permit Applications Sum of the highest of the fees which would have applied if separate applications were made and 50% of each of the other fees which would have applied if separate applications were made

Reg 11 Amend Permits under Section 72

Class 1 Amendment to a permit to change the use of land allowed by the permit or allow a new use of land. $1,240.70 $1,265.60

Class 2 Amendment to a permit (other than a permit to develop land for a single dwelling per lot or to use and develop land for a single dwelling per lot or to undertake development ancillary to the use of land for a single dwelling per lot) to change the statement of what the permit allows or to change any or all of the conditions which apply to the permit. $1,240.70 $1,265.60

Class 3 Amendment to a class 2 permit $188.20 $192.00


Class 5 Amendment to a class 4 permit $1,212.80 $1,237.10

Class 6 Amendment to a class 5 or class 6 permit $1,310.40 $1,336.70









GST INCLUSIVE

Class 12 Amendment to a class 12, 13, 14 or 15 permit $3,213.20 $3,277.70




Class 16 Amendment to a class 19 permit





Reg 12 Amendment of Application

a) Under section 57A(3)(a), the fee to amend an application for a permit after notice is given

40% of the application fee for that class of permit set out in the Table at Reg 9

b) Under section 57A(3)(a), the fee to amend an application to amend a permit after notice is given

40% of the application fee for that class of permit set out in the Table at Reg 11 and any additional fee at c) below

c) If an application to amend an application for a permit or amend an application to amend a permit has the effect of changing the class of that permit to a new class, having a higher application fee set out in the Table to Reg 9

An additional fee being the difference between the original class of application and the amended class of permit

Reg 13 For Combined Application to Amend Permit Sum of the highest of the fees which would have applied if separate applications were made and 50% of each of the other fees which would have applied if separate applications were made

Reg 14 For a Combined Permit and Planning Scheme Amendment

Under section 96A(4)(a), the sum of the highest of the fees which would have applied if separate applications were made and 50% of each of the other fees which would have applied if separate applications were made

Reg 15 For a Certificate of Compliance $306.70 $312.80

Reg 16 For an Agreement to a Proposal to Amend or End an Agreement under Section 173 $620.30 $632.80

Reg 18 Where a Planning Scheme specifies that a matter must be done to the satisfaction of a responsible authority, Minister, public authority or municipal Council. $306.70 $312.80

Reg 6 For Certification of a Plan of Subdivision $164.50 $167.80

Reg 7 Alteration of plan under section 10(2) $104.60 $106.70

Reg 8 Amendment of certified plan under section 11(1) $132.40 $135.10

Public Open Space Valuation $385.00 $385.00

Statement of Compliance Final Inspection $220.00 $220.00




GST INCLUSIVE

Advertising of Planning Application $280.00 $320.00

Extension of Time $102.00 $188.20

Secondary Consent $102.00 $188.20

ENVIRONMENTAL HEALTH

Septic Tank Application Fees

Installation $382.00 $390.00

Alteration $228.00 $240.00

Alteration to Application $154.00 $160.00

Food Act Registrations

Class 1 Nursing Homes, Hospitals, etc - Food premises that predominantly handle ready-to-eat potentially hazardous food to vulnerable populations

$375 plus $16 per FTE employee

over 10


over 10

Class 2 Food premises handling any potentially hazardous unpackaged foods


over 10


over 10

Class 2a Class 2 Premises, where the premises is primarily a community group or not for profit organisation $175.00 $175.00

Class 2b Class 2 Premises, where the premises is a short term seasonal kiosk $100.00 $100.00

Class 2c Community Group - per event $30.00 $30.00

Class 3 Food premises handling unpackaged low risk foods or selling potentially hazardous pre-packaged foods, or a warehouse/ distributor handling pre-packaged foods $175.00 $200.00

Class 3a Class 3 Premises, where the premises is primarily a community group or not for profit $100.00 $100.00

Class 3b Community Group - per event $30.00 $30.00

Class 4 Retail business selling pre-packaged low risk foods No Charge No Charge

Requested Inspection and Report on a Premises 50% of Relevant Registration Fee

50% of Relevant Registration Fee

Urgent Requested Inspection and Report on a Premises $280.00 $280.00

Transfer of Registration 50% of Relevant Registration Fee

50% of Relevant Registration Fee

Initial Registration of New Premises Additional 50% of Registration Fee

Additional 50% of Registration Fee

Late Payment Fee 50% of

Registration Fee 50% of

Registration Fee

Additional Fee for inspection due to non compliance $200.00 $220.00

Additional Fee for Sampling non compliance At Cost + 40% At Cost + 40%

Health Act Registrations

Prescribed Accommodation $375.00 $380.00




GST INCLUSIVE

Hairdressers/ Tattooist/ Ear Piercing/ Beauty & Physical Therapies/ Barbers/ Electrolysis $300.00 $300.00

Mobile/Part Time $150.00 $150.00

Private Caravan Park

As Prescribed in the Residential

Tenancies (Caravan Parks)

Regulations 2010

As Prescribed in the Residential

Tenancies (Caravan Parks)

Regulations 2010

Archive Search of Documents & copy of plans/permits Minimum $55.00

plus printing Minimum $60.00

plus printing

BUILDING

Building Permit Application Fees

Item 1 Class 1B & 2-9 Residential & Commercial works other than Class 1A

Up to $50,000 $731.30 $753.20

$50,001 to $100,000 $978.50 $1,007.90

$100,001 to $150,000 $1,462.60 $1,506.50

$150,001 to $200,000 $1,823.10 $1,877.80

> $200,000 4x(Value/2000 +

√Value)+GST 4x(Value/2000 +

√Value)+GST

Item 2 Class 1A All Dwellings - Single Detached Houses or attached Multi-Units Development

Up to $100,000 $978.50 $1,007.90

$100,001 to $150,000 $1,462.60 $1,506.50

$150,001 to $200,000 $1,823.10 $1,877.80

$200,001 to $250,000 $2,441.10 $2,514.30

$250,001 to $300,000 Value/120+GST Value/109+GST

> $300,000 Large Projects

Negotiable Large Projects

Negotiable

Item 3 Class 1A Dwellings - Extensions/ Alterations (including Demolitions)

Up to $10,000 $484.10 $498.60

$10,001 to $20,000 $612.85 $631.20

$20,001 to $50,000 $849.75 $875.20

$50,001 to $100,000 $1,153.60 $1,188.20

$100,001 to $150,001 $1,462.60 $1,506.50

> $150,000 Value/120+GST Value/109+GST

Item 4 Class 1A Dwellings - Internal Alterations/ Minor Works

Up to $10,000 $365.65 $376.60

$10,001 to $20,000 $484.10 $498.60

$20,001 to $50,000 $731.30 $753.20

$50,001 to $100,000 $978.50 $1,007.90

> $100,000 Value/120+GST Value/109+GST

Item 5 Class 10A/10B Minor Works - Garages, Carports, Pools, Fences, etc

Up to $5,000 $247.20 $254.60

$5,001 to $10,000 $365.65 $376.60

$10,001 to $20,000 $484.10 $498.60

$20,001 to $50,000 $612.85 $631.20




GST INCLUSIVE

$50,001 to $100,000 $849.75 $875.20

> $100,000 $1,096.95 $1,129.90

Item 6 Class 10B Pool Fence (without pool) $180.25 $185.70

Item 7 Sundry Any Additional Inspections

Domestic $144.20 $148.50

Commercial $180.25 $185.70

State Building Levy (Construction Value > $10,000) $1.28 per $1000

Construction Value $1.28 per $1000

Construction Value

Regulation 320 Lodgement Fees under section 30(2) of the Act and clause 1(d) of Schedule 2 to the Act $38.34 $38.34

Building Certificate Fees $51.16 $51.16

Regulation 327 Fees for Requests for Information under Regulation 326(1), 326(2) or 326(3) of the Regulations $51.16 $51.16

Additional Building Fees

Regulation 312 - Maximum Fee for Report and Consent (1) Under section 29A of the Act $64.12 $64.12

(2) Permit referred under Parts 4, 5 or 8 or under Regulation 604(4) $256.91 $256.91

(3) Permit referred under regulation 610(2) (Legal Point of Discharge) $64.10 $65.40

Amendment and/or extension of Building Permits, Amendment of Approved Plans $175.00 $180.30

Building Notice

$170 + double building permit fee

if applicable


if applicable

Building Order


if applicable


if applicable

Temporary Structure Siting Approval $360 min. $370 min.

Places of Public Entertainment Occupancy Permit $958.00 min Low Risk $350.00 min

Medium Risk $450.00 min

High Risk $650.00 min

Pool Safety Fence Inspections $170.00 $175.00

Provide Copy of Building Permit or Occupancy Permit (with owners consent)

minimum $55 + print + additional

search costs


search costs

Provide Copy of Building Permit including plans (with owners consent)


search costs


search costs

Additional Inspection Fee - eg for non-compliance $170 minimum + travel at 74c/km

$180 minimum + travel at 74c/km

Essential Services Determination Report $170 min. $180 min.

Reports other $113/hr $116/hr

Request for Building Permits / Occupancy Certificate or Plans

minimum $55.00 plus printing

minimum $60.00 plus printing




GST INCLUSIVE

HOME & COMMUNITY CARE

Delivered Meals Charges $8.90 $9.10

Property Modification Charges (per hour) $11.80 $12.00

Home Care Charges (per hour) $5.90 $6.00

Personal Care (per hour) $4.40 $4.50

Respite Care (per hour) $3.00 $3.10

COMMERCIAL CARE

Delivered Meals Charges $13.00 $13.60

Property Modification Charges (per hour) $55.00 $56.10

Home Care Charges (per hour) $51.40 $52.40

- Saturday Rate (per hour) $77.10 $78.60

- Sunday Rate (per hour) $102.90 $105.00

Personal Care Charges (per hour) $51.40 $52.40



Respite Care Charges (per hour) $51.40 $52.40



MATERNAL & CHILD HEALTH

Bassinet Hire Charges $55.00 $55.00

Immunisation Charges $25.00 $25.00

WASTE MANAGEMENT

Transfer Station Charges

Air conditioners, Refrigerators, Freezers Free Free

Aluminium, brass, copper, steel, scrap metals Free Free

Batteries (lead acid vehicle batteries) Free Free

Chemical containers (drumMUSTER) triple rinse or pressure wash, dry, no lids

Free Free

Oil (waste automotive oil domestic quantities only - maximum 20 litres)

Free Free

Other recyclables (mixed/commingled): Cans, cardboard, glass bottles, drink cartons, paper, milk containers, plastics numbered 1-7

Free Free

Building or commercial waste per (m3) maximum load 3m3 $40 $40

Concrete/bricks (uncontaminated) per (m3) Ararat only. maximum load 3m3 $30 $30

E-Waste per item (E.g TVs, DVDs, PCs, printers) Ararat only $10 $10

Photocopiers $20 $20




GST INCLUSIVE

Gas bottles $5 $5

General waste (household/domestic and contaminated green waste):

120 Litre Bin $3 $3

240 Litre bin $5 $5

Car boot load $10 $10

Single axle trailer / utility $15 $15

Tandem axle trailer $26 $26

Truck load per (m3) maximum 3m3 $20/m3 $20/m3

Green waste (uncontaminated):

Minimum load / car boot $6 $6

Single axle trailer / utility $10 $10

Tandem axle trailer $12 $12

Truck load per (m3) $10/m3 $10/m3

Mattresses:

Single mattress or smaller $15 $15

Double / queen / king $20 $20

Tyres (not taken in commercial quantities, add $3.00 if on rim):

Motor cycle $5 $5

Cars $10 $10

Light truck $15 $15

Heavy truck $30 $30

Super single $45 $45

Small tractor / grader (up to 1m diameter) $80 $80

Large tractor (more than 1m diameter) $170 $170

Earth movers (# obtain price from site staff- dependant on tyre size). # #

LOCAL LAWS

State Government Animal Levy (included in Registrations)

Dog $3.50 $3.50

Cat $2.00 $2.00

Dog Registrations

Dogs (within category of reduced fee - prescribed by Act) $34.00 $34.00

with Pensioner Concession $17.00 $17.00

Dogs full fee $110.00 $110.00


Restricted breed/declared menacing/dangerous $160.00 $160.00

Cat Registrations

Cats (within category of reduced fee - prescribed by Act) $28.00 $28.00


Cats full fee $84.00 $84.00


Domestic Animal Business Registrations $150.00 $180.00

Registered Community Foster Care Network Registration $5.00 $5.00




GST INCLUSIVE

Pound Fees

$110 first day, plus $20 for each

additional day

$120 first day, plus $30 for each

additional day

Replacement Dog/Cat Registration Tags $10.00 $15.00

Parking Meter Fees (per hour) $1.50 $1.60

Local Laws Permit Fees, Charges and Bonds Schedule 10

GLL.26, Fires in the open air - residential $15.00 $20.00

GLL.27, Burn offensive materials $50.00 $80.00

GLL.28, Use of vehicles and recreation vehicles $30.00 $40.00

Bond if required to protect Council asset (refundable) as determined as determined

GLL.29, Advertising, bill posting Council asset as determined as determined

GLL.30, Noise in a public place $30.00 $50.00

GLL.32, Camping on Council land $50.00 $60.00

GLL.32(3), Camp on private land longer than specified $50.00 $60.00

GLL.33, Temporary dwellings $100.00 $110.00

GLL.34, Circuses, carnival and festivals as determined as determined

GLL.35, Keeping animals – residential - per year $40.00 $50.00

or for life of animal or time kept at property $200.00 $250.00

GLL.38, Graze animals on Council land $30.00 $50.00

GLL.50, Drainage tapping – dependant on works required as determined as determined

GLL.56, Consumption and possession of liquor Municipal. Reserves as determined as determined

GLL.62, Vehicle crossings $30.00 $50.00

Bond if required to protect/reinstate asset (refundable) as determined as determined

GLL.70, Collections on roads $50.00 $60.00

Registered charities, religious or not for profit groups $0.00 $0.00

GLL.71, Placing “A” frame or advertising sign $40.00 $50.00

GLL.73, Roadside trading $100.00 $115.00

GLL.76, (71),76) Locating goods for sale or $40.00 $50.00

Locating goods and “A” frame sign $40.00 $50.00

GLL.77, Outdoor eating facilities - 3 tables & 12 chairs $50.00 $60.00

plus extra table & 4 chairs $15.00 $20.00

plus place menu board $25.00 $30.00

GLL.79, Place rubbish container or skip bin - limit 14 days $30.00 $50.00

each subsequent 7 days $15.00 $20.00

GLL.80, Road occupation for works $30.00 $40.00

Bond if required to protect/reinstate assets (refundable) as determined as determined

GLL.81, Road cropping or planting $20.00 $50.00

GLL.85, Street parties, street festivals and processions $30.00 $50.00

GLL.86, Busking and street entertainment $30.00 $50.00

GLL.87, Droving or movement of livestock $50.00 $75.00

Bond if required to protect/reinstate Council asset (refund) as determined as determined

GLL.89, Heavy vehicle parking in residential zones $100.00 $110.00




GST INCLUSIVE

GLL.90, Asset protection permit $100.00 $110.00

Bond if required to protect/reinstate asset (refundable) as determined as determined

Disabled Parking Permit Fees $10.00 $15.00

Fire Prevention Notice Contractor appointment administration $150.00 $160.00

Schedule 13 Permit to Burn $100.00

ALEXANDRA OVAL RESERVE Ground Hire - Not for profit (Full Day Rate) $98.23 $100.20

Ground Hire - Not for profit (Training Session) (2 Hrs) $32.72 $33.30

Ground Hire - Not for profit (Pre Season Training Session) (2 Hrs) $32.72 $33.30

Commercial Group - more than 4 hrs $196.45 $200.30

Commercial Group - half day rate $117.87 $120.20

Football Finals $147.34 $150.30

Netball Courts - Not for profit (Day Rate) $27.05 $27.60

Netball Courts - Not for profit (Training Session) (2 Hrs) $16.23 $16.55

Netball Courts - Not for profit (Pre Season Training Session) (2 Hrs) $16.23 $16.55

Junior Clinics (SSA Provider) $16.27 $16.60

Group Fitness (2 Hrs) $32.72 $33.40

School groups(ARC Only) 50% discount 50% discount

Lights towers (Casual User)

1 x tower $12.36/hour $12.60/hour

2 x towers $22.56/hour $22.80/hour



Lights towers (Seasonal User)

1 x tower Incl in Agreement Incl in Agreement

2 x towers Incl in Agreement Incl in Agreement



Change rooms (Fiscalini pavilion)

Training Session - half day up to four hours $36.72 $37.50

Full day more than four hours $62.20 $63.40

Junior Clinics (SSA Provider) $20.40 $20.80

Group Fitness $24.48 $25.00

Pre/post event inspection service $48.69 $49.70

Canteen $31.52 $32.15

Function Centre

Community/Not For Profit

Day Rate $210.00

Evening Rate $262.50

Commercial/Private

Day Rate $300.00

Evening Rate $375.00

Regular Community not for profit Local




GST INCLUSIVE

Half day (four hours) $64.87 Not applicable

Full Day (eight hours) $108.10 Not applicable

Evening (Sunday to Thursday) $108.10 Not applicable

Evening (Friday/Saturday) $144.77 Not applicable

Regular Community not for profit non local





Casual Community not for profit local





Casual Community not for profit non local





Commercial / Private





Meeting Room

Community/Not For Profit Not applicable $42.80

Commercial/Private Not applicable $64.30

Regular Community not for profit local

Half day/Evening (Four hours) $15.75 Not applicable

Full day (eight hours) $26.27 Not applicable

Regular Community not for profit non local



Casual Community not for profit local



Casual Community not for profit non local



Commercial/Private



MISCELLANEOUS

Road Discontinuance Fee Not applicable $750.00

Work Within Municipal Road Reserves

Works within carriageway or pathway >50km/h (statutory)* $600.81 $612.88

Works within carriageway or pathway >50km/h (council) $450.00 $460.00




GST INCLUSIVE

Works within carriageway or pathway ≤ 50km/h (statutory)* $327.59 $334.17

Works within carriageway or pathway ≤ 50km/h (council) $245.00 $250.00

Minor works within carriageway or pathway >50km/h (statutory)* $126.50 $132.25

Minor works within carriageway or pathway >50km/h (council) $100.00 $100.00

Minor works within carriageway or pathway ≤50km/h (statutory)* $126.50 $132.25

Minor works within carriageway or pathway ≤50km/h(council) $100.00 $100.00

Works within the verge > 50km/h (statutory)* $327.59 $334.17

Works within the verge > 50km/h (council) $245.00 $250.00

Works within the verge ≤ 50km/h (statutory)* $83.64 $85.32

Works within the verge ≤ 50km/h (council) $65.00 $65.00

Minor works within the verge > 50km/h (statutory)* $83.64 $85.32

Minor works within the verge > 50km/h (council) $65.00 $65.00

Minor works within the verge ≤ 50km/h (statutory)* $83.64 $85.32

Minor works within the verge ≤ 50km/h (council) $65.00 $65.00

*Statutory fees apply if council conditions are not met


Appendix B Budget processes This section lists the budget processes to be undertaken in order to adopt the Budget in accordance with the Local Government Act 1989 (the Act) and Local Government (Planning and Reporting) Regulations 2014 (the Regulations).

Under the Act, Council is required to prepare and adopt an annual budget for each financial year. The budget is required to include certain information about the rates and charges that Council intends to levy as well as a range of other information required by the Regulations which support the Act.

The 2017/18 budget, which is included in this report, is for the year 1 July 2017 to 30 June 2018 and is prepared in accordance with the Act and Regulations. The budget includes financial statements being a Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows and Statement of Capital Works. These statements have been prepared for the year ending 30 June 2018 in accordance with the Act and Regulations, and consistent with the annual financial statements which are prepared in accordance with Australian Accounting Standards and the Local Government Model Accounts. The budget also includes information about the rates and charges to be levied, the capital works program to be undertaken, the human resources required, and other financial information Council requires in order to make an informed decision about the adoption of the budget. A ‘proposed’ budget is prepared in accordance with the Act and submitted to Council in May for approval ’in principle’. Council is then required to give ’public notice’ that it intends to ’adopt’ the budget. It must give 28 days notice of its intention to adopt the proposed budget and make the budget available for inspection at its offices and on its web site. A person has a right to make a submission on any proposal contained in the budget and any submission must be considered before adoption of the budget by Council. With the introduction of the State Governments Rate Capping legislation in 2015 Councils are now unable to determine the level of rate increase and instead must use a maximum rate increase determined by the Minister for Local Government which is announced in December for application in the following financial year. If a Council wishes to seek a rate increase above the maximum allowable it must submit a rate variation submission to the Essential Services Commission (ESC). The ESC will determine whether the rate increase variation submission has been successful within two months of receipt of application. In many cases this will require Councils to undertake ‘public notice’ on two separate proposed budgets simultaneously, i.e. the Ministers maximum rate increase and the Council’s required rate increase. The final step is for Council to adopt the budget after receiving and considering any submissions from interested parties. The budget is expected to be adopted by 30 June and a copy submitted to the Minister within 28 days after adoption. The key dates for the budget process are summarised below:

Budget process Timing

Officers prepare operating and capital budgets November 2016

Minister of Local Government announces maximum rate increase By 31 December 2016

Council does not advise ESC it intends to make a rate variation submission

Jan/Feb 2017

Council considers major projects, operating budgets and recurrent capital budgets at a series of Council Assemblies

November 2016-April 2017

Officers revise operating and capital budgets Feb-April 2017

Public notice advising Special Council meeting will be held to approve draft budget

21 April 2017


Brief Council on draft budget at an assembly of Council 2 May 2017

Special Council meeting held to resolve to prepare a budget and give public notice

2 May 2017

Public notice advising intention to adopt budget 5 May 2017

Budget available for public inspection and comment for 28 days 5 May 2017 to 2 June 2017

Submissions period closes 2 June 2017

Public notice advising Special Council meeting will be held to consider budget submissions

2 June 2017

Special Council meeting held to hear budget submissions (if required)

6 June 2017

Budget and submissions presented to Council at Council Assembly to consider budget submissions

13 June 2017

Budget and submissions presented to Council at Ordinary Council meeting for adoption, with or without amendment

27 June 2017

Copy of adopted budget submitted to the Minister

By 30 June 2017

Place an ad in paper to advise public the budget has been adopted and are available for public

30 June 2017


End of Ararat Rural City Council Budget Report