Draft Annual Business Plan and Budget 2019/20

Help shape your community

Draft Annual Business Plan and Budget 2019/20 and Draft Long Term Financial Plan 2019/20 - 2028/29

The Draft Annual Business Plan and Budget sets out the services, functions and proposed projects for the City of Burnside in the 2019/20 financial year and the corresponding proposed increase in rates needed to deliver these services.

This year, Council is also consulting on its Long Term Financial Plan (LTFP) which is a forward looking plan that is focused on maintaining and renewing assets Council already has, investing in new assets and delivering a diverse range of services and programs, while keeping rates low and affordable.

The Annual Business Plan and Budget is a 'snapshot' year from the rolling 'bigger picture' of the 10 year LTFP - and is developed in accordance with the sustainability principles of the LTFP.

Community feedback received through past Annual Community Surveys has assisted in the development of Plans and this survey is another opportunity for you to have your say on what's important to you.

What happens to my feedback?

All community comments received through this survey will be presented to Council for its consideration before the adoption of the Annual Business Plan and Budget on 25 June 2019.

Click the graphic below to enlarge:

Highlights

• 2.40* per cent average rate increase which is lower than the Dec 2018 Local Government Price Index of 2.70 per cent and the forecast 2019/20 CPI which is expected to be 2.75 per cent.
• $0.37m in targeted savings in addition to the $430k savings expected from the LED Lighting Project.
• maintenance of Council's 119 services and provision of additional increases in services/service levels as mentioned below:
• $0.5m in new services and projects such as upgrading the internet connection at Pepper Street Arts Centre and the Regal Theatre, and undertaking an upgrade of the verge on Glynburn Road, pedestrian crossing on Greenhill Road and funding to conduct the Your Neighbourhood Budget participatory budgeting project for a second year.
• $5.34m investment in new or upgrade capital projects such as Conyngham Street Depot development, the Magill Village PLEC works, further work at Constable Hyde Memorial Garden and the Penfold Park facilities.
• $9.7m investment in renewal and replacement capital projects such as the community transport fleet replacement, playgrounds, tennis courts, creek rehabilitation works, footpath and kerb renewals.

*average rate increase for all properties except vacant land

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.

Cost of Business

Every year, Council estimates the increase in the 'cost of business' (COB) to deliver services to the community such as the construction and maintenance of roads, footpaths, drains, parks, facilities and environmental projects, staff salaries and contractor costs such as waste management and recycling.

Other cost pressures such as state government cost shifting and cost increases above general inflation (such as for electricity) are also considered. For the 2019/20 financial year the estimated cost of business increase is 3.30 per cent.

This year Council is able to propose a 2.40* per cent average rate increase instead of 3.30 per cent due to its commitment to achieving financial savings through employee costs and materials and contracts.

Rate increases

A rates increase reflects the increasing costs that Council must pay to deliver services and maintain infrastructure for the community. Also taken into account are factors such as the current economic climate, Council's debt profile, changes in legislation, increased utility costs, and the need to manage, maintain and improve the community's physical infrastructure assets for current and future generations.

While the COB is usually higher than the Local Government Price Index (LGPI), Council aims to keep rates increases equitable, affordable and close to the LGPI. The LGPI is more relevant to local government rather than the Consumer Price Index (CPI) because it measures items like wages, heavy equipment, diesel, bitumen, and much greater proportions of power and water than the average household.

Council has made a conscious effort to keep rates increases low and in line with the LGPI and Council's net COB. The rating history for the City of Burnside over the past 10 years is shown below.

Council's rating policy does not aim to achieve cash reserves which could be used to fund infrastructure projects. For this to be achieved, rates increases would need to be as high as 12 per cent. Council uses debt to fund projects such as these.

Click the graphic below to enlarge:

During the planning of the 2019/20 draft business plan and budget Council considered a number of different rating scenarios that have varied impacts on the operating surplus and net debt. The scenarios that were considered in early 2019 can be found in the Document Library.

The Fees and Charges for 2019/20 were adopted by Council at their meeting on 30 April 2019. These can be found in the Document Library (above right) for information.