Draft Annual Business Plan and Budget 2023/24

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Consultation has concluded


**** UPDATE ****

This financial year Council is presenting a minor surplus position (excluding subsidiaries) with an on average rates increase of 6.01 per cent for 2023/24 (excluding growth on subdivisions), with an average residential rate of 5.8 per cent.

All the details are in the Business Plan and Budget Summary that you can find in the Document Library to the right of the screen.

********************


Help shape your community

Have your say on the Draft Business Plan and Budget 2023/24 and Long Term Financial Plan 2023/24 - 2032/33

**READ THE FULL DRAFT BUSINESS PLAN AND BUDGET OR LONG TERM FINANCIAL PLAN. YOU WILL FIND THEM IN THE DOCUMENT LIBRARY TO THE RIGHT OF THE SCREEN**


This financial year Council is presenting a near break-even operating position (excluding subsidiaries) with an on average rates increase of 5.8 per cent for 2023/24 (excluding Vacant Land and growth on subdivisions).

This rates increase is lower than the March 2023 Consumer Price Index (CPI) of 7.9 per cent and December 2022 Local Government Price Index (LGPI)* of 6.9 per cent.

Council is very aware of the increased cost of living pressures on the community. However after two years of 0 per cent rates increases and a modest increase of 3.5 per cent last year, it was essential for Council to increase rates to continue delivery of the high levels of service to the community. Council has exercised financial discipline by limiting discretionary project spending to a minimum and undertaking a full review of Council expenditure to be able to keep the proposed rates increase at a much lower rate than both the LGPI and CPI.

A near break-even operating position also demonstrates Council’s commitment to lean financial management, keeping rates low and affordable while maintaining and delivering more than 118 high-quality services for our community.

*the Local Government Price (LGPI) Index is a historical index, whereas a rates increase is for the year ahead. In the LGPI ‘basket’ are wages, heavy equipment, diesel, bitumen, and much greater proportions of power and water than the average household.
**More detail on these projects can be found in the Draft Annual Business Plan and Budget document found on engage.burnside.sa.gov.au

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 2023/24, Council expects a 5.8 per cent increase in costs to maintain its existing service levels.

The Long Term Financial Plan 2023/24 - 2032/33

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:

  • A near break-even operating position (excluding Subsidiaries) in 2023/24, an operating deficit of $212k in 2024/25 and surpluses for all remaining years.
  • Total borrowings as at 30 June 2024 forecast at $26.6m (Current Forecast position for 2022/23 is $23.3m) and at the end of the 10-year period at $27m (based on the set level of Capital spend assumed in the Plan), which is within the financial targets set by the Local Government Association.
  • All financial indicators mostly within acceptable target levels throughout the 10-year period.
  • Renewal and Replacement of $12.1m in existing assets in 2023/24 and $118.9m across the 10-year period.
  • $1.8m of New and Upgraded assets in 2023/24 and $28.9m across the 10-year period.

Rates

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.

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 contract 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 with average rate increases consistently below the LGPI for the past three financial years and for the 2023/24 year.

Rating Policy History

Average per cent increases compared to the preceding Local Government Price Index*



**** UPDATE ****

This financial year Council is presenting a minor surplus position (excluding subsidiaries) with an on average rates increase of 6.01 per cent for 2023/24 (excluding growth on subdivisions), with an average residential rate of 5.8 per cent.

All the details are in the Business Plan and Budget Summary that you can find in the Document Library to the right of the screen.

********************


Help shape your community

Have your say on the Draft Business Plan and Budget 2023/24 and Long Term Financial Plan 2023/24 - 2032/33

**READ THE FULL DRAFT BUSINESS PLAN AND BUDGET OR LONG TERM FINANCIAL PLAN. YOU WILL FIND THEM IN THE DOCUMENT LIBRARY TO THE RIGHT OF THE SCREEN**


This financial year Council is presenting a near break-even operating position (excluding subsidiaries) with an on average rates increase of 5.8 per cent for 2023/24 (excluding Vacant Land and growth on subdivisions).

This rates increase is lower than the March 2023 Consumer Price Index (CPI) of 7.9 per cent and December 2022 Local Government Price Index (LGPI)* of 6.9 per cent.

Council is very aware of the increased cost of living pressures on the community. However after two years of 0 per cent rates increases and a modest increase of 3.5 per cent last year, it was essential for Council to increase rates to continue delivery of the high levels of service to the community. Council has exercised financial discipline by limiting discretionary project spending to a minimum and undertaking a full review of Council expenditure to be able to keep the proposed rates increase at a much lower rate than both the LGPI and CPI.

A near break-even operating position also demonstrates Council’s commitment to lean financial management, keeping rates low and affordable while maintaining and delivering more than 118 high-quality services for our community.

*the Local Government Price (LGPI) Index is a historical index, whereas a rates increase is for the year ahead. In the LGPI ‘basket’ are wages, heavy equipment, diesel, bitumen, and much greater proportions of power and water than the average household.
**More detail on these projects can be found in the Draft Annual Business Plan and Budget document found on engage.burnside.sa.gov.au

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 2023/24, Council expects a 5.8 per cent increase in costs to maintain its existing service levels.

The Long Term Financial Plan 2023/24 - 2032/33

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:

  • A near break-even operating position (excluding Subsidiaries) in 2023/24, an operating deficit of $212k in 2024/25 and surpluses for all remaining years.
  • Total borrowings as at 30 June 2024 forecast at $26.6m (Current Forecast position for 2022/23 is $23.3m) and at the end of the 10-year period at $27m (based on the set level of Capital spend assumed in the Plan), which is within the financial targets set by the Local Government Association.
  • All financial indicators mostly within acceptable target levels throughout the 10-year period.
  • Renewal and Replacement of $12.1m in existing assets in 2023/24 and $118.9m across the 10-year period.
  • $1.8m of New and Upgraded assets in 2023/24 and $28.9m across the 10-year period.

Rates

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.

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 contract 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 with average rate increases consistently below the LGPI for the past three financial years and for the 2023/24 year.

Rating Policy History

Average per cent increases compared to the preceding Local Government Price Index*


  • CLOSED: This survey has concluded.

    Draft ABPB and Draft LTFP Survey

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