2022-2023 Draft Annual Business Plan and Budget

*****UPDATE*****

Council adopted the 2022/23 Annual Business Plan and Budget and the Long Term Financial Plan 2022/23 - 2031/32 at its Meeting on 28 June 2022.  The final plan and the Annual Business Plan and Budget Summary can be found in the document library (right of screen).

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Open the presentation on the right side of the screen                      

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2022-2023 Draft Annual Business Plan and Budget AND 
Draft Long Term Financial Plan 2022/23 - 2031/32 

The rates freeze for the past two consecutive years has cumulatively saved ratepayers $2.3m in rates with no accompanying reduction in services. This was made possible by Council driving down its cost base and embedding savings and efficiencies into its budget.

Over this period, the Local Government Price Index (LGPI)** has risen by 2.0 per cent, with Council's material costs increasing by $1.3m, without a corresponding increase in rates revenue (excluding growth from subdivisions).

For Council to maintain the quality of its services to the community while balancing its budget, a rate increase of 3.5 per cent is being proposed for 2022/23, which is in line with the December 2021 LGPI Index and below Council's expected cost of business (forecast to be 3.8 per cent).

A 3.5 per cent rate increase will ensure that Council can continue to provide more than 118 quality services to our City, undertake projects to maintain the city's $718m in assets and deliver new community projects in the 2022/23 financial year.

2022/23 highlights of this budget include:

• Maintaining more than 118 services.
• 36 proposed new projects and services.*
• An Operating Surplus of $0.4m.
• $14.4m in new and renewed capital projects for the community.

The cost of business

Every year Council estimates the increase in the 'cost of business' to deliver services to the community (ie construction and maintenance of roads, footpaths, drains, parks, facilities and environmental projects, staff salaries and contractor costs such as waste management and recycling). Other pressures such as cost increases above general inflation (such as fuel costs) are also considered. For 2022/23, Council expects a 3.8 per cent increase in costs to maintain its existing service levels.

Valuations and a proposed increase in the differential rating on vacant land

The City of Burnside has seen property values increase by 2.6 per cent in the current financial year, and this is expected to increase by a further 30 per cent in 2022/23.

An increase in valuations does not mean that Council collects more revenue. The revenue collected will be 3.5 per cent higher than the prior year. What changes is the distribution of how rates are collected. Some ratepayers will experience a lower than average (30 per cent) valuation increase on their property value, thus they will proportionately pay less rates; other ratepayers will see an increase in the value of their property and will proportionately pay more.

This increase in valuations has also caused a decrease in the rates that vacant landowners will pay. To keep the rates consistent with the prior year Council may propose to introduce a higher rating on vacant land.

The Long Term Financial Plan 2022/23-2031/32 

As part of our financial planning process and developing the Draft Annual Business Plan and Budget, Council reviews and updates the Long Term Financial Plan. This review helps provide a high level of certainty in our ability to meet the ongoing costs of services and capital works, maintained over a 10-year planning horizon.

This review also considers the funding approaches for asset renewals, new assets and significant upgrades, and the approach to borrowings.

This draft Long Term Financial Plan achieves a number of outcomes for the community, including a total of $103m in capital renewal and $36m in new capital projects across the 10-year period. Borrowings are forecast to be $27.5m at the end of the 2023 year and $26.7m at the end of the 10-year period, which is within the financial targets set by the Local Government Association.

Where do your weekly rates go?

An average rate of $38* per week:

Your feedback on the proposed 2022/23 Draft Annual Business Plan and Budget and the Long Term Financial Plan is welcome. You will find all of the reading material in the Document Library (top right of screen) and the Online Survey (below).

A Public Meeting will be held on Thursday 19 May 2022. It will be in the Council Chambers, 401 Greenhill Road, Tusmore, 6 pm - 7.30 pm.

If you are unable to attend the meeting, you can still tune into the live stream.

Please provide feedback by 5 pm Friday 20 May 2022. 

For more information please phone Bernie Auricht on 8366 4200.

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HELP SHAPE YOUR COMMUNITY AND HAVE YOUR SAY

2022/23 Draft Annual Business Plan and Budget and Draft Long Term Financial Plan 2022/23-2031-32

Council will always need to find the balance between what residents expect Council to deliver and what is appropriate and affordable for Council to provide with the revenue available. 

Rates

In setting rates each year, Council balances the increasing costs that Council must pay to deliver services and maintain infrastructure for the community; and other factors such as the current economic climate, Council's debt profile, changes in legislation, increased utility and fuel costs, and the need to manage, maintain and improve the community's physical infrastructure assets for current and future generations.

The rating history for the City of Burnside over the past 10 years is shown below. The rates freeze over the past two years has saved ratepayers a cumulative $2.3m.