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Budget 2013/14 Striking the right balance


Main cover image Bendigo Library redevelopment works are progressing well Sub images 1. Bendigo Botanic Gardens 2. Road construction - Rowena Street, Bendigo 3. Bendigo Theatre project 4. Transport planning


2013/2014 PROPOSED BUDGET


TABLE OF CONTENTS Page Introduction from the Mayor, Cr Lisa Ruffell

Chief Executive Officer’s Summary

Budget Processes

1. Linkage to the Council Plan

2. Activities, Initiatives and Key Strategic Activities

10 

3. Budget Influences

26 

4. Analysis of Operating Budget

29 

5. Analysis of Budgeted Cash Position

35 

6. Analysis of Capital Budget

38 

7. Analysis of Budgeted Financial Position

43 

8. Strategic Resource Plan and Key Financial Indicators

46 

9. Rating Strategy

50 

10. Other Strategies

54 

Appendix A - Budgeted Standard Statements

57 

Appendix B - Statutory Disclosures

62 

Appendix C - Capital Works Program

74 

Appendix D - Maps

83 

Appendix E - Glossary of Terms

86 

Greater Bendigo City Council Proposed Budget - 2013/2014


Introduction from the Mayor, Cr Lisa Ruffell One of the big challenges Greater Bendigo faces is ensuring we can encourage growth while not having to give up the things that make our region the best place to live in Australia. The Budget for 2013/2014 is about getting this balance right. The revenue we raise, together with Government grants and other contributions, will enable us to deliver a $59.9M capital and major works program, while investing $138.1M in service delivery through the City’s operating budget. Council’s Budget includes the funds required to complete the Bendigo Art Gallery expansion and Bendigo Library redevelopment; commence construction of the Community Theatre and the redevelopment of Canterbury Park, Eaglehawk; and further progress planning for the Aquatic Centre at Kangaroo Flat, and Bendigo Airport Development. The Budget invests heavily in ‘grassroots’ infrastructure, including $15.3M for roads, including $2M to continue to re-sheet gravel roads; more than $5M for drainage; and $1.1M for footpaths. In addition, we will invest in our existing facilities to ensure they are well maintained and can meet the needs of our growing City. This includes $7.4M for building improvements; $1.3M towards conserving the City’s heritage properties and $500,000 for swimming pool maintenance ($100,000 more than in 2012/2013). The Budget recognises that service delivery is our core business and that the City provides services across a wide spectrum. In Community Services (including Aged, Disability, Child and Family Services) we have allocated $16.5M, including $3.1M for General Home Care, $1.7M for Personal Care and $1M for Respite Care. The budget includes $2.5M for Maternal and Children’s Health and $4.3M for Child Care. The City collects some 28,000 tonnes of garbage from residential properties each year. In 2013/2014, we plan to spend $18.8M on Waste Services. To help pay for capital works and services we will increase rates by 6.0 per cent, which is in line with Council’s 10-year financial plan. The 4.0 per cent rate rise for farmers will be less than for other ratepayers in recognition that farmers continue to face significant hardship. To assist ratepayers of lower valued properties in meeting financial commitments, Council will reduce the Municipal Charge from $64.80 to $32.40. I am confident that the Budget strikes the right balance between encouraging new growth and maintaining our lifestyle. Cr Lisa Ruffell Mayor

Greater Bendigo City Council Proposed Budget 2013/2014

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Chief E Executive Officer’s Summary S y Council has prepareed a Budget for the 20133/2014 financcial year which seeks to balance the e demand for servvices and inffrastructure with the co ommunity’s capacity to pay. Key buudget inform mation is providedd below abo out the rate e increase, operating result, cash and investm ments, capitaal works, financial sustainabilitty, financial position, and expendituree allocations of the Counncil. Any collumns in graaphs below labelled A2 011/12 refleect Actual figures for 22011/12, A20 012/2013 reflect aactual figurees for 2012/2013, F20122/2013 reflecct Forecast figures for 2012/2013, columns labelled B2013/20144 reflect Budget figures ffor 2013/201 14 and colum mns labelled SRP reflect Strategic Resourcce Plan figurees for the financial years 2015-2017. 1. Rate es

The genneral rates increase by 6.0% for thee 2013/2014 4 year, will raise total rrates and ch harges of $86.49 m million, including $1.5 million generatted from sup pplementary rates. erating Resu ult 2. Ope

The buddgeted operrating result for the 20 13/2014 yeaar is a surplus of $9.177 million, which is a decreasee of $12.62 million overr the forecasst result forr 2012/2013. The decreease is due mainly m to increasees in the cosst of service delivery, addditional con ntract payme ents as a ressult of majorr project expenditture (refer section 4.3..2), increaseed depreciation, and the e impact off receiving additional a Grants Commissionn funding in 2012/2013 resulting in only two quarters budggeted for 20 013/2014 (refer seection 4.2.7)..

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Greaater Bendigo City Council Propposed Budget - 2013/2014


3. Cash h and Invesstments

Cash and investments are expeccted to decreease by $8.87 million durring the yearr to $25.75 million m as at 30 June 2014. This T reflects Council's strrategy of using excess cash c and inveestments to enhance service delivery and d enable the renewal andd upgrade of o existing infrastructuree and the cre eation of new infrrastructure. It also reflects the higheer forecasted cash balance as at 30 JJune 2013 ass a result of the eaarly Grants Commission C payment. 4. Capiital Works

47.36 millionn. In additio on to the The buddgeted Capittal Works prrogram for tthe 2013/2014 year is $4 budgeted Capital Works W prograam, some prrojects will be b carried fo orward for ccompletion from f the wever the caarried forwarrd component is fully fun nded from thhe 2012/2013 3 budget. 2012/20013 year; how Of the $47.36 million in Cap pital fundingg required, $27.60 million will coome from Working W Capital/C Council opeerations, $11.15 million from extern nal grants, contributionss and asset sales, $7 million ffrom loan bo orrowings an nd the balannce from cassh and investtments. Thee capital exp penditure program m has been prioritised p baased on a prrocess that has enabled Council to assess the needs n for projectss. (Note: In addition to t the Capittal Works, Council C will undertake Major Works which equates to $12.5M total t expend diture, of whhich $1.6M is the net fin nancial impacct on COGB B. Major Works aare assets no ot owned by COGB.)

Greater B Bendigo City Co ouncil Proposed d Budget - 20133/2014

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5. Fina ancial Position

The finaancial positio on is expectted to impro ove with neet assets (ne et worth) too increase byy $19.10 million tto $1.17 billiion although net currentt assets (working capital)) will reducee by $14.31m million to $4.80 m million as at 30 3 June 2014 4. This is m mainly due to the use of cash reservees to fund th he capital works pprogram. 6. Fina ancial Susta ainability

A high level Strategiic Resource Plan for thee years 2014/15 to 2016//17 has beenn developed to assist Council in adopting a budget witthin a longerr term prudeent financial framework. f The key objjective of the Plann is financial sustainabilitty in the m edium to lo ong term, while still achhieving the Council’s C strategicc objectives as specified d in the Couuncil Plan. The plan prrojects that Council’s un nderlying result, w which is a measure of fin nancial sustaainability, sho ows an incre easing surpluus over the four f year period. dget deficit expected e to o occur in 2013/2014 2 iss due to thhe timing of financial The undderlying bud transacttions. Thesee being the impact of rreceiving six quarters off Grants Coommission fu unding in 2 (refer section 4.2.7), and payments p 2012/20013 resulting in only two quarters bu dgeted for 2013/2014 in relatiion to the Bendigo Co ommunity T Theatre (reffer section 4.3.2). If tthe timing of these transacttions was adjusted an und derlying surpplus would be budgeted to t occur in 22013/2014.

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Greaater Bendigo City Council Propposed Budget - 2013/2014


7. Council Expend diture Allo ocations

The abo ove chart prrovides an in ndication of how Counccil allocates its expenditture across the core services that it deliveers. This budget has beeen develope ed through a rigorous process of preparation and review w. More detailed budget inforrmation is avvailable throuughout this document. d

Craig N Niemann Chief E Executive Officer O

Greater B Bendigo City Co ouncil Proposed d Budget - 20133/2014

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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 (Finance and Reporting) Regulations 2004 (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 2013/2014 budget is for the year 1 July 2013 to 30 June 2014 and is prepared in accordance with the relevant legislation. The budget includes standard statements, being a budgeted Income Statement, Balance Sheet, Cash Flow and Capital Works, all prepared in accordance with legislation, and are consistent with the annual financial statements which are prepared in accordance with Accounting Standards, and the Act. The budget also includes detailed information about the rates and charges to be levied, the capital works program to be undertaken and other financial information, which Council requires in order to make an informed decision about the adoption of the budget. The preparation of the budget begins with Officers preparing the operating and capital components of the annual budget between January and March. A draft consolidated budget is then prepared and various iterations are considered by Councillors at informal briefings between March and May. A proposed budget is prepared in accordance with the Act and Regulations, and is submitted to Council in June for approval in principle. Council is then required to give public notice that it intends to adopt a 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. Any interested 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. To assist persons to understand the budget and make a submission, Council undertakes media briefings, promotion and displays copies of the proposed budget in the local media and on the City of Greater Bendigo's website. Hard copies are also available at Council offices. The final step is for Council to adopt the budget after receiving and considering any submissions from interested parties. The budget is required to be adopted and a copy submitted to the Minister by 31 August each year. The key dates for the budget process are summarised below:

Budget process

Timing

1. Officers prepare operating and capital budgets

Jan/Mar

2. Council considers draft budgets at informal briefings

Mar/May

3. Proposed budget submitted to Council for approval

5 June

4. Public notice advising of Council’s intention to adopt the budget

8 June

5. Budget available for public inspection and comment 6. Submissions period closes (28 days)

5 July

7. Submissions considered by a Committee of Council

10 July

8. Budget and submissions presented to Council for adoption

31 July

9. Copy of adopted budget submitted to the Minister

6

8 June to 5 July

1 August

Greater Bendigo City Council Proposed Budget - 2013/2014


1. Linkage to the Council Plan This section describes how the Annual Budget links to the achievement of the Council Plan within an overall planning framework. This framework guides the Council in identifying community needs and aspirations over the long term (Greater Bendigo 2036), medium term (Council Plan, Strategic Resources Plan and the Long Term Financial Plan) and short term (Annual Actions and Budget) and then holding itself accountable (Annual Report and Audited Statements). 1.1 Strategic Planning Framework The Strategic Resource Plan, included in the Council Plan, provides a summary of the financial and nonfinancial impacts of the objectives and strategies and determines the sustainability of these objectives and strategies. The Annual Budget is developed and framed within the Strategic Resource Plan, taking into account the activities and initiatives which contribute to achieving the Council’s strategic objectives specified in the Council Plan. The diagram below depicts the strategic planning framework of Council. ENGAGEMENT

ACTION

RESOURCE

PLANNING

PLANNING

REPORTING

Community Plans - Greater Bendigo 2036 - Small Town and Neighbourhood Plans

Community Engagement Framework

Long Term Financial and Council Plan

1. Deliberate Consultation Activities

Workforce Plan (Strategic Resource Plan)

Annual Report to the Community

2. Communications and Media 3. Customer Service Requests

Report to councillors on achievements in

COGB Strategies and Plans

strategies

4. Small Towns Strategies

5. Individual Contacts with Staff/Councillors

Council Plan Annual Actions

Service Plans

Council Budget including Annual Capital Expenditure

Unit Budget

Report to Councillors on progress against Annual Actions and Budget

Progress report to Director

Note: Lighter shades are for "internal only" documents. Individual Work Plans

Progress report to Supervisor

Council's Planning and Reporting framework is underpinned by Federal, State and Regional Strategic Plans, Policies and Legislation. Greater Bendigo City Council Proposed Budget – 2013/2014

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The timing of each component of the planning framework is critical to the successful achievement of the planned outcomes. A new Council Plan, including the Strategic Resource Plan, is required to be completed by 30 June following a general election. It is reviewed each year by the 28 February to ensure that there is sufficient time for officers to develop their Activities and Initiatives and Key Strategic Activities in draft form prior to the commencement of the Annual Budget process in March. It also allows time for targets to be established during the Strategic Resource Planning process to guide the preparation of the Annual Budget. 1.2

Vision and Values

Council Vision Our residents can live healthy and satisfying lives in our vibrant City and region, confident in its growth and future. Council Values Councillors have made a commitment in their Code of Conduct to working and leading together in:  Making informed, balanced and objective decisions  Acting honestly  Taking responsible financial decisions  Ensuring good governance  Being inclusive in their activities and sharing information with others  Learning from each other  Respecting each other's undertakings  Being respectful in their interactions with others  Communicating clearly about decisions that have been made  Fulfilling their undertakings and being clear when this is not possible  Working positively with the media to ensure community members are provided with accurate information Staff Organisational Values Our core values are aspiring to quality and achievement in everything we do by:  Embracing challenges  Encouraging and respecting each other  Nurturing creativity and diversity to make a difference in our community 1.3 Goal Areas and Strategic Objectives The Council delivers activities and initiatives under service categories or functional areas. Each contributes to the achievement of one of the five Goal Areas and the Strategic Objectives as set out in the Council Plan for the 2013-17 years and shown in the following table.

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Goal Area

Strategic Objective

1. Planning for Growth

 Our City undertakes successful lobbying and maintains its excellent reputation  Significant projects that will transform the City over time are completed as planned  Our quality of life is maintained as our City's population and economy grows  Our communities have the space and facilities they need for future growth

2. Liveability Built and Natural Environmen t

 People feel connected to their community  Our communities have active and vibrant places in which to meet  Open space and recreation facilities are well designed, extensively used and well maintained  More people are confident to walk and cycle more often  Our community's health and wellbeing improves over time

Greater Bendigo City Council Proposed Budget - 2013/2014


Goal Area

Strategic Objective  Services and programs support all people to live in our community  Greater Bendigo is known for its vibrant and diverse arts and culture scene

3. Productivity

 Our long-term planning enables the movement of people and freight that is efficient and healthy for individuals and the environment  A diverse, strong and growing economy supports community resilience  Our City is known for creativity, innovation and vitality  Tourism and major events are a significant contributor to our economy  Employers can attract an appropriately skilled workforce and education leads to employment

4. Sustainability

 Existing infrastructure and assets are well maintained and appropriately upgraded to sustain them for future generations  Reduce all waste to landfill and make productive use of by-products  Reduce the impact of changing weather on communities and individuals  Protect the natural environment for future generations  Strengthen the links between Greater Bendigo's past and future by protection and contemporary re-use of our heritage assets

5. Good Governance and Decision Making

 Council demonstrates good governance and leadership  The financial and physical resources of the organisation are managed efficiently  We engage effectively and often with our communities, through excellent customer service and by providing information to enable people to take part in decisions about the changes  Organisational workforce and business system development is undertaken to support staff to be highly productive

Greater Bendigo City Council Proposed Budget – 2013/2014

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2. Activities, Initiatives and Key Strategic Activities This section provides a description of the activities undertaken by Service Units of the City of Greater Bendigo and the key initiatives funded in the Budget for the 2013/2014 year which will be implemented by these Service Units. It also indicates how these initiatives contribute to achieving the strategic objectives specified in the Council Plan. The annual actions from the Council Plan have been referenced below where relevant. In order to demonstrate full cost of Council services, the City of Greater Bendigo allocates the cost of a number of internal support areas to other service units of Council. These include Finance, Information Management, People and Performance and Customer Service. 2.1 Council and Executive

Activity The Executive Services Unit provides administrative and executive support to Council, the Mayor, the CEO and the Executive Management Team. The Unit ensures that systems and processes are in place to provide for good governance. Media, communications, community relations government relations and legal services are supported through activities of the unit.

Council Plan Reference

Initiative 1)

(Expenditure) Revenue Net Cost $'000 (2,873) 60 ($2,813)

Consider the recommendations of the Independent Review 2013 and implement the agreed actions

5.1.1

2.2 Organisation Support Directorate

Activity The Organisation Support directorate enables, strengthens and enhances the organisation’s people, culture, systems, processes and finances to ensure sound corporate decision-making, the achievement of the organisation’s strategic objectives and the delivery of high quality services and programs. Initiatives 2) 3)

10

Complete the Bendigo Library as an integrated community facility Continue to lobby for a change in the superannuation legislation, to minimise the impacts of the Defined Benefits Scheme

(Expenditure) Revenue Net Cost $'000 (396) 0 (396)

Council Plan Reference 1.2.2 5.1.2

Greater Bendigo City Council Proposed Budget - 2013/2014


Library Services

Activity City of Greater Bendigo is one of the four member municipalities of The North Central Goldfields Library Corporation which provides a public library service to four sites throughout the municipality in Bendigo, Kangaroo Flat, Eaglehawk and Heathcote along with the mobile library. With high visitation numbers, the service caters for the cultural, educational and recreational user, as well as research capability through the Regional Archive Centre Reading Room.

(Expenditure) Revenue Net Cost $'000 (2,476) 0 (2,476)

Rating and Valuation Services

Activity The Rating and Valuation Services Unit values properties for rating purposes, annually levies and collects rates and charges, as well as the State Government Fire Services Property Levy. Initiative 4)

Effectively communicate the changes to the collection process for the State Government Victorian Fire Services Property Levy

(Expenditure) Revenue Net Cost $'000 (2,369) 523 (1,846) Council Plan Reference 5.2.2

Finance

Activity The Finance Unit provides sound and professional stewardship over the City of Greater Bendigo's finances. The Unit’s key functions include the development and maintenance of all legislative and government departmental reporting and financial control requirements, and developing financial strategies which provide for sound debt and cash flow management, ensuring that the City of Greater Bendigo is a viable organisation.

Initiatives 5) 6)

Review all user fees and charges to achieve transparent decision making in the setting of fees Continue to focus on improved procurement practice through the development of the Procurement Action Plan

Greater Bendigo City Council Proposed Budget – 2013/2014

(Expenditure) Revenue Net Cost $'000 (1,357) Cost allocated across other units

1,196 (161) 59 (102)

Council Plan Reference 5.2.6 5.2.8

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Information Management

Activity

(Expenditure) Revenue Net Cost $'000 (3.244)

The Information Management Unit is responsible for records management; corporate servers; computers/laptops and the corporate network which includes over 20 sites, mobile networking, telephone systems, mobile phones, Freedom of Information requests and privacy matters.

Cost allocated across other units

Initiatives

Council Plan Reference

7) 8) 9)

Implement upgrades to server storage, telecommunications systems and TechnologyOne Enterprise licensing Introduce the corporate planning and reporting software solution Implement an electronic grants management system

3,128 (116) 9 (107)

5.4 5.4.2 5.2.7

People and Performance

Activity The People and Performance Unit supports the organisation to ensure it has the right people delivering the right outcomes. The Unit achieves its purpose through aligning the workforce availability, capability, and productivity to the organisation's strategy.

Initiatives 10) Negotiate the 2013 Enterprise Agreement 11) Undertake a pilot, structured continuous improvement program and from that make a decision on the preferred continuous improvement framework 12) Improve organisational performance reporting 13) Review the corporate approach to injury management and return to work 14) Review the Municipal Emergency Management Plan

(Expenditure) Revenue Net Cost $'000 (3.217) Cost allocated across other units

1,522 (1,695) 470 (1,225)

Council Plan Reference 5.4.1 5.4.4 5.4.2 5.4.6 5.4.5

Contracts and Project Coordination

Activity The Contracts and Project Coordination Unit provides services, governance and capacity development to the organisation in the areas of tendering, contracts and project management. 12

(Expenditure) Revenue Net Cost $'000 (611) 1 (610)

Greater Bendigo City Council Proposed Budget - 2013/2014


Initiatives 15) Improve project management processes

Council Plan Reference 5.2.4

2.3 Planning and Development Directorate

Activity The Planning and Development Directorate ensures a better quality of life for all members of the Greater Bendigo community by fostering sustainable development and enhancing public safety.

(Expenditure) Revenue Net Cost $'000 (384) 0 (384)

Statutory Planning

Activity The Statutory Planning Unit facilitates quality development including buildings and subdivision, while maintaining and protecting the municipality’s environmental assets and respecting residents/community rights and amenities. Many of the services delivered by the Statutory Planning Unit are in accordance with State Government legislation and local strategies and policies adopted by Council following intensive community consultation. Initiatives 16) Better protect properties at risk of flood by starting the Planning Scheme Amendment process to implement the Bendigo Flood Study.

(Expenditure) Revenue Net Cost $'000 (2,908) 680 (2,228)

Council Plan Reference 4.1.8

Building and Property

Activity The Building and Property Unit ensures that the community assets (buildings and properties) are developed, upgraded, maintained and utilised to ensure the greatest benefit and lifestyle for the members of the community. Delivering capital works projects that meet the current community needs and for the future is also a key objective for the team. The Unit ensures that Council owned facilities, as well as other businesses, are safe for public use and ensures the public comply with relevant building codes and standards.

Greater Bendigo City Council Proposed Budget – 2013/2014

(Expenditure) Revenue Net Cost $'000 (7,543) 1,557 (5,986)

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Council Plan Reference

Initiatives 17) Consider and implement, where appropriate, Stage 1 of the security audit on Council buildings 18) Finalise a Building Asset Management Plan (BAMP) to provide strategic direction to manage Council's significant property portfolio 19) Implement the Surplus Property Disposal Plan

4.1.5 4.1.6 5.2.1

Parking and Animal Control

Activity The Parking and Animal Control Unit manages the City's Parking and Animal Services Program. This is to ensure safe and equitable use of parking resources, and to promote and maintain community safety, and public amenity and wellbeing in relation to the keeping of domestic animals and livestock.

(Expenditure) Revenue Net Cost $'000 (3,849) 5,698 1,849

Council Plan Reference

Initiatives 20) Update the Domestic Animal Management Plan implement agreed priorities

for 2012-2016 and

2.5.4

Environmental Health and Local Laws

Activity The Environmental Health and Local Laws Unit keep the community safe through a variety of preventative and proactive actions and respond to issues raised by the community. The Unit improves the public health, wellbeing and safety of the community by reducing exposure to hazards associated with our surrounding environments through responsible and sustainable City development, protecting surrounds, setting standards for civic behavior and ensuring good business practices of registered premises and major events. Initiatives 21) Conduct a review of the Fire Prevention responsibilities and delivery

(Expenditure) Revenue Net Cost $'000 (2,010) 1,073 (937)

Council Plan Reference 4.1.7

Strategy

Activity The Strategy Unit facilitates and coordinates the development of strategies. The Unit’s integrated planning approach incorporates strategic land use planning, community and social planning, corporate planning, heritage planning, sustainable transport planning, and facilitating the renewal and implementation of the Greater Bendigo 2036 Community Plan.

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(Expenditure) Revenue Net Cost $'000 (2,040) 48 (1,992)

Greater Bendigo City Council Proposed Budget - 2013/2014


Initiatives 22) Implement the Eaglehawk Structure Plan Planning Scheme Amendment 23) Implement the Bendigo Landscape Project - Big Hill and Mandurang Valley Significant Landscape Overlay Planning Scheme Amendment 24) Complete the White Hills Heritage Study and commence the Planning Scheme Amendment 25) Complete the Integrated Transport & Land Use Plan, encompassing private transport; public transport logistics and freight; impact on health; integration and development, and commence implementation of agreed development tasks. 26) Collect, understand and communicate a range of current population information to inform the development of strategies that improve the quality of life of residents, including completing the 2nd Community Wellbeing Survey 27) Complete the Rosalind Park Master Plan 28) Complete the review of Community Plans for Redesdale, Raywood, Axedale and Marong 29) Complete the Residential Development Strategy Review, encompassing the urban growth boundary, new growth areas, housing diversity and medium density infill residential options 30) Complete the Hospital Precinct Structure Plan and commence implementation

Council Plan Reference 1.4.2 1.4.3 4.4.1 3.1.1

1.3.2 2.3.3 2.1.1 1.3.1 1.2.5

2.4 Community Wellbeing Directorate

Activity The Community Wellbeing Directorate comprises the functional areas of Community Services, Customer Support, Active and Healthy Communities and Community Partnerships. The Community Wellbeing directorate will support our people in our community to live their lives fully and be active, creative, engaged and healthy. Initiatives 31) Review the City's role in delivery of Early Years Services, including Maternal & Child Health and immunisation 32) Implement the agreed recommendations of the Aged & Disability Services Review 33) Continue to support major recreational organisations to increase their financial independence

Greater Bendigo City Council Proposed Budget – 2013/2014

(Expenditure) Revenue Net Cost $'000 (400) 0 (400)

Council Plan Reference 2.6.4 2.6.3 2.3.4

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Customer Support

Activity The Customer Support Unit is often the first point of contact for our customers. Committed to making a difference in our community, the Unit connects our customers to information, services, people and places. It is the "public face" of the Council as they interact with the community, and is also the thread that connects the internal organisation, assisting colleagues to respond to our community requests in a respectful and courteous way.

(Expenditure) Revenue Net Cost $'000 (1,627) Cost allocated across other units

789 (838) 20 (818)

Community Services

Activity The Community Services Unit delivers a broad range of services for the early childhood target group and their families including health promotion, prevention, care, education and advocacy. It provides support to frail older people, people with disabilities and their carers, whose capacity for independent living is at risk, or who are at risk of premature or inappropriate admission to long term residential care.

(Expenditure) Revenue Net Cost $'000 (16,021) 12,737 (3,284)

Council Plan Reference

Initiatives 34) Implement the agreed outcomes of the review into Council's role in childcare and preschool support 35) Assist in the implementation of the agreed recommendations of the Aged & Disability Services Review

2.6.1 2.6.3

Active and Healthy Communities

Activity The Active and Healthy Communities Unit is a multi-disciplinary team for the planning, design, management, maintenance, and creation of public access to sport and leisure opportunities for the residents of and visitors to Greater Bendigo. The Unit improves the health and wellbeing of residents in the Greater Bendigo region by encouraging and supporting healthy lifestyles in order to increase physical activity, fruit and vegetable consumption, and decrease smoking and harmful alcohol use. The Healthy Communities team connects with early year centres, primary and secondary schools, as well as medium to large scale businesses to assist in achieving and promoting healthy environments. Initiatives 36) Update the Aquatic Strategy 2009, including pool management models 37) Complete construction of the Long Gully Splash Park 16

(Expenditure) Revenue Net Cost $'000 (5,364) 1,559 (3,805)

Council Plan Reference 2.3.1 2.3.5

Greater Bendigo City Council Proposed Budget - 2013/2014


Initiatives 38) Complete detailed design and documentation for Barrack Reserve 39) Update the Active and Healthy Communities Framework to determine future community priorities 40) Undertake open space improvements

Council Plan Reference 2.3.7 2.5.2 2.3.2

Community Partnerships

Activity The Community Partnerships Unit has an overarching community engagement, social inclusion, building capacity and advocacy focus. The Unit encourages and supports active engagement in community and civic life, strengthens community resilience by building social capital, and supports the planning and development of accessible and inclusive community facilities, programs and services that are responsive to identified community need and aspirations. It also recognises and celebrates culture and cultural diversity, encourages and supports community artistic/creative endeavor, as well as social enterprise, facilitates a range of accessible and inclusive community events, promotes community safety and advocates for identified community needs and aspirations. Initiatives 41) Implement the Violence Prevention, Bendigo Safe Communities and Community Access and Inclusion Plans 42) Implement three agreed priority initiatives from the Youth Strategy 2.5

(Expenditure) Revenue Net Cost $'000 (4,591) 1,683 (2,908)

Council Plan Reference 2.5.5 2.6.2

City Futures

Directorate

Activity The role of the City Futures Directorate is to contribute to the economic, cultural and social prosperity of our region by identifying and supporting investment opportunities, employment generation and development of major projects, and in so doing continue to raise Greater Bendigo’s profile as an exceptional place in which to live, work, invest and visit.

Greater Bendigo City Council Proposed Budget – 2013/2014

(Expenditure) Revenue Net Cost $'000 (377) 0 (377)

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Tourism

Activity The Tourism Unit provides support and leadership to the Greater Bendigo and region tourism industry. With over 1,600 (mainly small) tourism businesses in the region, the role of the Tourism Unit is to work with the industry to promote Greater Bendigo as a visitor and events destination, and work with local businesses to co-operatively market the destination across Melbourne, Victoria, Nationally and at times Internationally. The Unit provides professional marketing services across the broad industry sector, delivers quality visitor services and works with the tourism industry to develop attractive visitor experiences.

(Expenditure) Revenue Net Cost $'000 (3,528) 1,056 (2,472)

Council Plan Reference

Initiatives 43) Continue to grow the Bendigo region as a major visitor destination, through the Regional Tourism Board and Bendigo Tourism 44) Develop a "family friendly" marketing campaign for a range of familyoriented tourism activities 45) Broaden the experiences available to visitors and locals through development of walking tours and apps on cultural activities 46) Market cycling and walking experiences based on the O'Keefe Rail Trail and Goldfields Track 47) In partnership with relevant businesses, develop strategies which build the mutual benefits between tourism and retail

3.4.1 3.4.2 3.4.3 3.4.4 3.4.6

Major Events

Activity The Major Events Unit retains, attracts and nurtures major events that deliver social and economic benefit for Greater Bendigo, particularly in the high priority areas of sport, arts and culture, food and wine, agriculture, car clubs, music and business events. The Unit organises, manages and presents the annual Bendigo Easter Festival in conjunction with sponsors, community partners, volunteers, media and other interest groups.

Council Plan Reference

Initiatives 48) Attract, retain and nurture Major Events that deliver substantial economic, promotional and social benefit for Greater Bendigo.

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(Expenditure) Revenue Net Cost $'000 (1,497) 251 (1,246)

3.4.5

Greater Bendigo City Council Proposed Budget - 2013/2014


Major Projects

Activity The Major Projects Unit focusses on major projects that involve significant funding from external sources, significant stakeholder engagement and require detailed planning, design and delivery. The Unit contributes to the economic, cultural and social prosperity of our region by effectively delivering identified major projects; successfully co-operating and proactively developing the Bendigo Airport; and in doing so, continue to raise Greater Bendigo's profile as an exceptional place in which to live, work, invest and visit. Initiatives 49) Completion of the Bendigo Art Gallery extension project 50) Develop the Community Theatre Project by working with DEECD and BSSC to achieve a mutually agreed name, construction program and budget that encompasses streetscape/public realm design and documentation 51) Plan for the Kangaroo Flat Aquatic Centre by completing schematic design and documentation and lodge planning permit and funding submissions 52) Plan for the Bendigo Airport Redevelopment (airport and business park) by preparing the Planning Scheme Amendment and lodging funding submissions

(Expenditure) Revenue Net Cost $'000 (787) 100 (687)

Council Plan Reference 1.2.1 1.2.3 1.2.4 1.2.7

Economic Development

Activity The Economic Development Unit supports economic growth by business building, including existing business growth and the attraction of new industries. The Unit attracts and supports the provision of key infrastructure, supports initiatives that improve the attraction and retention of skilled workforce to meet the needs of Bendigo's diverse economy, strengthens existing business stakeholder engagement, and facilitates new investments in the region. Initiatives 53) 54)

Progress the Marong Business Park by lodging the Planning Scheme Amendment documentation Complete the review of the Economic Development Strategy and implement agreed priorities including lobbying State Government for more jobs to be located in the Bendigo region

Greater Bendigo City Council Proposed Budget – 2013/2014

(Expenditure) Revenue Net Cost $'000 (1,448) 262 (1,186)

Council Plan Reference 1.2.10 3.2.1

19


The Capital, Bendigo Town Hall and Bendigo Exhibition Centre

Activity The Capital provides performing arts and venue management services to the City of Greater Bendigo. The Unit provides a diverse program of performing arts, high quality co-ordination and management services for a range of venues and facilities, custodianship and interpretation of significant heritage buildings, and contributes to the economic development of the city through excellent facilities and programs.

Council Plan Reference

Initiatives 55)

(Expenditure) Revenue Net Cost $'000 (3,616) 2,324 (1,292)

Conserve, interpret and increase activity and use of important Bendigo venues including the Bendigo Town Hall and The Capital

2.7.6

Bendigo Art Gallery

Activity The Bendigo Art Gallery exhibits artworks, oversees the acquisition of artwork, manages bequests, and encourages philanthropy for the institution. The Gallery has an art collection of national significance housed within a facility that meets international standards.

Council Plan Reference

Initiatives 56)

(Expenditure) Revenue Net Cost $'000 (4,322) 2,413 (1,909)

Launch the new exhibition spaces following completion of the redeveloped Art Gallery

1.2.1

2.6 Presentation and Assets Directorate Activity The Presentation and Assets Directorate provides and maintains high quality assets and services that help make the region a great place to live now while planning and delivering new assets and services to support Bendigo’s ongoing growth. Demonstrating environmentally responsible thinking and practices and encouraging this throughout the organisation and community is an important focus for the group. Business units include Engineering & Public Spaces, Presentation & Works (including Waste Services, the Livestock Exchange and Bencon), Parks & Natural Reserves and Sustainable Environment.

20

(Expenditure) Revenue Net Cost $'000 (23,351) 0 (23,351)

Greater Bendigo City Council Proposed Budget - 2013/2014


Engineering and Public Space

Activity The Engineering and Public Space Unit develops and delivers physical infrastructure to support a broad range of services to the community. This includes the development of capital works projects to provide renewal and new assets to meet the expanding population of Bendigo and increasing community expectations, and the strategic planning of infrastructure through asset management and development of strategic plans for asset groups. The Unit also provides support services across the organisation in areas of asset management and GIS. Initiatives 57) 58)

59) 60) 61)

Progress implementation of the Canterbury Gardens Master Plan through construction of the Central Activity Area Continue to implement the Bendigo Botanical Gardens Master Plan including further upgrade of the heritage gardens, commencing development of the contemporary gardens and upgrading the play space Implement Mitchell Street streetscape works to improve facilities for pedestrians, public transport users and traders Continue to progress cycle and walking path links and footpaths to commercial centres, recreation facilities and schools Implement the next stage of the East Bendigo Link Road (Rohs Road) to improve freight movements

(Expenditure) Revenue Net Cost $'000 (5,973) 1,936 (4,037)

Council Plan Reference 1.2.9 1.2.8 4.1.9 2.4.1 4.1.10

Waste Services

Activity The Waste Services team provides the collection of garbage from domestic and commercial properties, collection and sorting of kerbside recycling, operation of landfills and transfer stations, street cleaning, and drain and pit cleaning.

(Expenditure) Revenue Net Cost $'000 (15,588) 5,472 (10,116)

Infrastructure Services (Bencon)

Activity Bencon Maintenance includes maintenance and development of sealed and unsealed roads, drains, concrete footpaths, kerb and channel, and bridges. It also includes traffic and pedestrian management, emergency response, supply of labour, plant and traffic management for community events.

(Expenditure) Revenue Net Cost $'000 (8,854) 12 (8,842)

Bencon Construction undertakes new civil construction projects for Council including roads, drainage, sporting fields and car parks, and undertakes civil works for other service authorities. Greater Bendigo City Council Proposed Budget – 2013/2014

21


Bendigo Livestock Exchange

Activity The Bendigo Livestock Exchange provides for the efficient operation and management of weekly lamb/sheep and cattle sales, and fortnightly pig/calf sales.

(Expenditure) Revenue Net Cost $'000 (955) 1,047 92

Parks and Natural Reserves

Activity The Parks and Natural Reserves Unit manages a large portfolio of parks, gardens, reserves, sports fields and areas of open space for the City of Greater Bendigo. The diversity of these assets requires a skilled and committed team that is responsible for the implementation of a range of specialist park management, horticultural and environmental techniques and practices.

Council Plan Reference

Initiatives 62)

(Expenditure) Revenue Net Cost $'000 (8,470) 120 (8,350)

Develop a proactive Tree Management and Maintenance Contract for trees managed by the City.

2.3.8

Sustainable Environment

Activity The Sustainable Environment Unit provides a coordinated approach to the development of environmental policies, strategies, programs and processes to articulate clear directions to improve service delivery and enhanced environmental outcomes for the community. The Unit aims to reduce corporate carbon emissions, promote ecologically sustainable outcomes, identify effective and efficient directions for the management of municipal waste streams, and increase awareness of environmental matters.

Council Plan Reference

Initiatives 63) 64) 65) 66)

22

(Expenditure) Revenue Net Cost $'000 (1,275) 110 (1,165)

Continue to deliver "Creating a Climate Resilient Southern Loddon Mallee" Project Implement energy efficient works in City of Greater Bendigo buildings Implement Lighting Up the Regions bulk change over to energy efficient street lights (grant funding dependent) Commence implementation of agreed priorities in the Waste & Resources Management Strategy encompassing: reducing resource consumption, a local landfill decision, reducing waste to landfill and waste management including diverting waste to resources

4.3.2 4.3.4 4.3.1

4.2.1

Greater Bendigo City Council Proposed Budget - 2013/2014


2.7 Key Strategic Activities Council Plan Strategic Outcome/ Action No.

Key Strategic Activities

Measure

Target 2013/2014

Theme: Planning for Growth 1.2.5

1.2.11 1.3.1

Complete the Hospital Precinct Structure Plan.

Progress the Marong Business Park by lodging the Planning Scheme Amendment documentation. Complete the Residential Development Strategy Review, encompassing the urban growth boundary, new growth areas, housing diversity and medium density infill residential options.

Time: Plan adopted on time

By 30 June 2014

Cost: Plan completed within budget Time: Lodgment of documentation on time Time: Plan adopted on time

Net cost to Council less than $136,000 30 June 2014

Cost: Construction completed within budget

Net cost to Council less than $650,000

Time: Construction completed on time Quantity: Percentage of survey respondents reporting positive wellbeing

Construction complete by 30 June 2014 Greater than 77%

Quantity: Rate of primary immunisation for whole of Bendigo population

Greater than 93.9%

Quantity: Rate of primary immunisation for Indigenous persons

Greater than 50%

Time: Plan adopted on time

Adopted by Council by 30 June 2014

Cost: Plan completed within budget

Net cost to Council less than $212,000

Time: Strategy adopted by EMT, on time

Adopted by 30 June 2014

30 June 2014

Theme: Liveability 2.3.6

2.5

2.5

Construct the Long Gully Splash Park.

Improvement in overall wellbeing of Bendigo residents as reported in the Bendigo Wellbeing Survey 2014, compared to previous survey. Proportion of infants born annually that receive primary immunisations

Theme: Productivity 3.1.1

3.2.1

Complete the Integrated Transport & Land Use Plan, encompassing private transport; public transport logistics and freight; impact on health; integration and development, and commence implementation of agreed development tasks. Complete the review of the Economic Development Strategy

Greater Bendigo City Council Proposed Budget – 2013/2014

23


Council Plan Strategic Outcome/ Action No.

Key Strategic Activities

Measure

Target 2013/2014

Theme: Sustainability 4.1.6

4.2

Finalise the Building Asset Management Plan (BAMP) to provide strategic direction to manage Council's significant property portfolio. Reduce all waste to landfill and make productive use of byproducts

Time: Plan adopted by Adopted by 30 June Executive Management 2014 Team on time Quantity: Average kilograms of waste generated per household

Less than 610kg

Theme: Good Governance and Decision Making 5.2

The financial and physical resources of the organisation are managed efficiently and well

Quality: Risk rating for all financial sustainability measures issued by the Victorian Auditor General (Underlying result, Liquidity, Self-financing, Indebtedness, Capital replacement)

Low or medium rating for the financial year ended 30 June 2014.

5.3.9

Review the Community Engagement Policy and Framework 2011, especially with regards the use of social media.

Time: Policy and Framework reviewed and adopted by Executive Management Team

Adopted by 30 June 2014

2.8 Performance Statement The Key Strategic Activities (KSA) detailed above, their performance measures, targets and results are audited at the end of the year and are included in the Performance Statement as required by Section 132 of the Act. The Annual Report for 2013/2014 will include the audited Performance Statement which is presented to the Minister for Local Government and the local community.

24

Greater Bendigo City Council Proposed Budget - 2013/2014


2.9

Reconciliation with Budgeted Operating Result (Net Cost) Expenditure Revenue $’000 $’000

Revenue $’000

Council and Executive

(2,813)

2,873

60

Organisation Support

(4,903)

9,255

4,352

Planning and Development

(9,678)

18,734

9,056

(11,216)

27,215

15,999

(9,170)

15,575

6,405

(55,770)

64,466

8,696

(93,550)

138,118

44,5068

Community Wellbeing City Futures Presentation and Assets Total activities and initiatives Other non-attributable Deficit before funding sources Rates and charges

7,355 (86,195) 86,492

Capital grants

6,795

Contributions to capital works

2,079

Total funding sources

95,366

Surplus for the year

Greater Bendigo City Council Proposed Budget – 2013/2014

9,171

25


3. Budget Influences This section sets out the key budget influences arising from the internal and external environment within which the Council operates. 3.1 Snapshot of Greater Bendigo City Council Located within central Victoria, Greater Bendigo has a catchment of over 200,000 people and a population of 103,550 (ABS, Estimated Resident Population) as at 30 June 2012. The population is projected to be around 150,000 by 2036. The area of the municipality covers 2,999kms. Greater Bendigo is the second largest city in regional Victoria. Its gross economic output is attributable to major industries and employment sectors including health and community services, retail, manufacturing, education, construction, property and business services, government administration, accommodation and hospitality, and banking and financial services. Bendigo has a proud gold mining heritage, with some of the finest examples of Victorian architecture and streetscapes in Australia. Bendigo is the home of Australia's longest running annual festival, The Bendigo Easter Festival. The City's cultural attractions include Bendigo Art Gallery, The Capital - Bendigo's Performing Arts Centre, Golden Dragon Museum, Central Deborah Mine, Bendigo Tramways and Bendigo Pottery. The municipality includes two National Parks - Greater Bendigo and Heathcote Greytown, both of which protect large areas of Box-Ironbark forest. 3.2 Challenges and Opportunities The Council Plan has been a significant influence in preparing the 2013/2014 budget. In that document the challenges and opportunities for Council are outlined in detail, and listed below:  Regional Growth and Sustainability  Financial Sustainability  Increasing expectations of service availability  Community engagement and consultation  Adapting to changing weather patterns  Performance reporting  Population growth and change  Access to communications technology  Skills replacement, succession planning and knowledge retention  Maintenance of essential infrastructure 3.3 External Influences In addition, external budget influences are:  Constrained Federal and State Government fiscal environment  Substantial increases in utility costs  Substantial increases in insurance premiums  The increasing regulatory environment which requires City of Greater Bendigo to meet legislation standards, including the introduction of the Fire Services Property Levy required to be collected by local government  Managing the impact of being a growing city with associated community needs  Pilot project funding such as the MAV funded project to develop regional capability for disaster planning across the region  Opportunities/incentives provided through government grant programs to deliver further programs and projects such as Street lighting conversion project  Potential future liability related to the Defined Benefit Superannuation Fund 26

Greater Bendigo City Council Proposed Budget - 2013/2014


 Increase in the Environmental Protection Authority levy to be applied to landfill operations 3.4 Internal Influences There are a number of internal influences which have had a significant impact on the preparation of the 2013/2014 Budget being:  Budget principles adopted by Council on 13 February, 2013  The Independent Review of the City of Greater Bendigo. The consultant report is to be completed by June 30, 2013  Prioritisation by Council of several large capital works projects that will require increased funding both through rate revenue and loan borrowings  Recognition that the achievement of Strategic Objectives must allow for the organisational capacity to deliver them in an environment of limited financial resources and the availability of appropriately skilled staff  Additional pressures resulting from the growth in service requirements  Investment in developing workforce capability  The need to replace and upgrade ageing infrastructure  Improvement to on-line presence through website development  Commitment to maintain service standards  Ongoing focus on greater efficiency 3.5 Budget Principles Theme

Principle

1

Best Value

Take account of Best Value Principles from the Local Government Act:  All services must meet quality and cost standards  All services must be responsive to the needs of the community  Each service must be accessible by those members of the community for whom the service is intended  Council must achieve continuous improvement in the provision of services to the community  Council must develop a program of consultation with the community in relation to the services it provides and report regularly to the community.

2

Alignment

Council's budget will take account of Council Plan and other strategic plans.

3

Balance

The budget will aim to balance the demand for services and infrastructure with the community's ability to pay. Proposals for service delivery expansion or capital works projects must demonstrate consideration of social, economic and environmental impacts on the community.

4

Capital Works

Council supports investment in the renewal and upgrade of Council Assets and will use Asset Management Plans and depreciation to guide the level of investment on an annual basis.

5

Borrowings

Debt servicing costs will be less than 10% of rate revenue.

Greater Bendigo City Council Proposed Budget – 2013/2014

27


Theme

Principle

6

User Fees and Charges

Progress toward achieving full cost recovery for the major nonstatutory fees and charges for services unless justification for another method is provided. Fees and charges (other than the major fees and charges), are to be increased in line with CPI or market levels, unless an alternative business case is approved.

7

Revenue sources

New revenue sources are to be identified where possible.

8

New staffing positions

New employee proposals which are not cost neutral are to be justified through a business case that demonstrates increased service demand or the development of a new service/initiative which is aligned with the Council Plan. Council can request information relating to new positions in determining the Budget.

9

Working capital ratio

Aim to maintain a working capital ratio of no less than 150%: every $1 of current liabilities, CoGB has $1.50 of current assets to achieve the Victorian Auditor General's low financial risk rating

10

Managing Service Growth

There is a focus on the efficient use of resources; continually seeking to increase productivity.

11

Efficiency Target

Council will use the results of the Independent Review to guide achievable productivity improvements and that these will be negotiated as part of the Enterprise Bargaining Agreement process.

12

Community Capacity Work is to be undertaken with the community in building its Building capacity to contribute to the economic growth and wellbeing of the CoGB.

3.6 Long Term Strategies The budget includes consideration of a number of long term strategies to assist Council in adopting the Budget in a proper financial management context. These include a Strategic Resource Plan for the years 2012/2013 to 2015/2016 (Section 8), Rating Strategy (Section 9) and Other Strategies (Section 10) which include borrowings, infrastructure and service delivery.

28

Greater Bendigo City Council Proposed Budget - 2013/2014


4. Analysis of Operating Budget 4.1 Budgeted Operating Statement

Ref

Forecast Actual 2012/2013 $’000

Budget 2013/2014 $’000

Variance $’000

Operating Revenue

4.2

162,082

165,125

3,043

Operating Expenditure

4.3

140,297

155,954

15,657

21,785

9,171

12,614

(12,938) (5,770) 3,077

(6,795) (11,500) (9,124)

6,143 (5,730) (12,201)

Surplus (Deficit) for the year

Grants – Capital Contributions – Non Monetary Underlying Result – Surplus/(deficit)

4.2.8

4.1.1 Underlying surplus ($12.20 million decrease) The underlying result is the net surplus or deficit for the year adjusted for capital grants, contributions of non-monetary assets and other once-off adjustments. It is a measure of financial sustainability as it is not impacted by non-recurring or once-off items of revenues and expenses which can often mask the operating result. The underlying result for the 2013/2014 year is a deficit of $9.12 million compared to the 2012/2013 forecast surplus of $3.08 million. This decrease is heavily influenced by the timing of the Victorian Grants Commission funding which is based on receipt of six quarterly payments in 2012/2013 which reduces the number of quarters budgeted to be received in 2013/2014 to two quarters only. 4.2 Operating Revenue Forecast Budget Actual Variance 2013/2014 2012/2013 $’000 $’000 $’000

Revenue Types

Ref

Rates and charges Statutory fees and fines User charges, fees and fines Reimbursements Contributions - cash Contributions - non monetary assets Government Grants - operating Government Grants - capital Interest revenue Total Operating Revenue

4.2.1 4.2.2 4.2.3 4.2.4 4.2.5

79,814 3,172 21,134 274 7,092

86,492 3,286 24,071 334 4,295

6,678 114 2,937 60 (2,797)

4.2.6 4.2.7 4.2.8 4.2.9

6,370 25,598 12,938 1,472 157,864

11,500 24,252 6,795 1,820 162,845

5,130 (1,346) (6,143) (348) 4,981

Greater Bendigo City Council Proposed Budget – 2013/2014

29


The belo ow graph demonstrates the t movemeent in operatting revenue from 2012/22013 forecasst to the 2013/20014 budget. ($0 equals no difference to the 2012 2/2013 forecaast).

Rates and Charges C ($6.68 million increase) 4.2.1 R Rates annd charges reepresent the e Council's inncome from general rate es, municipall charge, garrbage and recyclingg charges. The T overall raates and chaarges incomee reflects an increase of 88.3% or $6.6 68 million over thee 2012/2013 forecast. Supplementa S ry rates are expected to o contributee $1.5 million n to rate revenuee in 2013/2014. Section 9 'Rating Strrategy' includ des a more detailed anallysis of the rates r and charges to be levied for 2013/20 014. ees and Fin nes ($0.11 m million incrrease) 4.2.2 Sttatutory Fe d in accordaance with leg egislation and d include Statutorry fees and fines relate to fees andd fines levied animal rregistrationss, parking fin nes, Health Act registrrations and fines and vvarious planning and building fees. Increaases in statuttory fees are made in acccordance witth legislative requirements. Statutorry fees and fines are projected p to o increase by b 3.5% or $114,000. Fees appliccable for 2013/20014 are availlable on Co ouncil’s web site and can also be in nspected at Council’s Customer C Service C Centres. User Charge es, Fees and Fines ($2 2.94 million n increase) 4.2.3 U User chaarges relate to the recovvery of servi ce delivery costs c through the charginng of fees to o users of Council’’s services. These servvices includee use of leisure, entertainment annd other co ommunity facilities and the pro ovision of hu uman servicees such as home h care and child carre services. In setting the budgget, the key principle for determininng the level of user charrges has bee n to increase by CPI where ppossible, takinng into account the econnomic climatte. a fines are e projected tto increase by b 13.9% or $2,937,000 over the 20 012/2013 User charges, fees and forecastt. The maiin areas contributing to o the increease are the e Bendigo A Art Gallery ticketed exhibitio ons which will increase significantly inn 2013/2014 resulting in a $1.5 millioon increase in n income and a co orrespondingg increase in shop sales o of $136,000.. The increaased exhibitioons also imp pacts The Capital B Box Office $200,000. $ There T is increeased income from Child dren’s Servicces $554,000 0, Landfill Fees $2661,000, and Property Rental Income of $224,000 0. ouncil’s web site and can n also be The appplicable fees and chargess for 2013/20014 are avaiilable on Co inspecteed at Council’s Customerr Service Ceentres. 30

Greaater Bendigo City Council Propposed Budget - 2013/2014


4.2.4 Reimbursements ($.06 million increase) Reimbursements include amounts from work cover and insurance claims. 4.2.5 Contributions - cash ($2.80 million decrease) Contributions include monies paid by developers in accordance with planning permits issued for property development, and contributions made by various parties towards provision of services and Capital/Major Projects. Cash contributions are projected to decrease by $2.80 million or 39.40% compared to the 2012/2013 forecast. This includes a decrease of $2.54 million in contributions towards Capital/Major Projects due to the nature of the projects in the 2012/2013 forecast such as the Bendigo Community Theatre development and infrastructure works associated with ViewPoint, Huntly. Also the bi-annual contribution from Valuer General towards revaluation information $490,000 was received in 2012/2013. 4.2.6 Contributions – non monetary assets ($5.13 million increase) Non-monetary assets include developer constructed assets contributed by developers in accordance with planning permits issued for property development including land, roads and drainage. The increase reflects the trend of developers constructing assets and transferring ownership to City of Greater Bendigo. 4.2.7 Grants – operating ($1.35 million decrease) Operating grants include all monies received from State and Federal sources for the purposes of supporting the delivery of Council’s services to ratepayers. Overall, the level of operating grants has decreased by 5.3% or $1.35 million compared to 2012/2013 forecast. Significant movements in grant funding are summarised below:

Grant Funding Types Major Project Funding – Finn Street Industrial Major Project Funding – Bendigo Community Theatre Victorian Grants Commission

Forecast Actual 2012/2013 $’000 659 2,100 13,691

Budget 2013/2014 $’000

Variance $’000

0

(659)

5,655 7,122

3,555 (6,569)

Decreased grants will be received in 2013/2014 as Council will be continue to act as the auspice body for the construction of the Bendigo Community Theatre. State and Federal funding will be received however this will be offset by the expenditure incurred in the development of the facility. The decrease in Victorian Grants Commission funding is based on receipt of four quarterly payments in 2012/2013 which reduces the number of quarters budgeted to be received in 2013/2014 to two quarters only, based on current Federal Government advice.

Greater Bendigo City Council Proposed Budget – 2013/2014

31


4.2.8 G Grants - cap pital ($6.14 million deccrease) de all moniess received frrom State an nd Federal Governments G s for the purrposes of Capital ggrants includ funding the Capital Works proggram. Overa rall the level of capital grrants has deccreased by 47.5% 4 or million compared to the 2012/2013 forecast du ue to specificc funding foor some largge capital $6.14 m works pprojects in 2012/2013 2 su uch as the $ $4.23 million for the Ben ndigo Art G allery Expan nsion and $2.72 m million for Beendigo Libraary Redevelo opment. In 2013/2014 $1.80 millioon and $650 0,000 are expected to be recceived for th hese projectts respectiveely. Section 6 “Analysiss of Capital Budget” includes a more dettailed analysiss of the grannts and contrributions exp pected to bee received during the 2013/20014 year. 4.2.9 In nterest Rev venue ($.35 5 million inccrease) Interest revenue inccludes interest on investm ments and raate arrears. Interest is bbudgeted to increase by 23.6% % or $348,0000 comparred to the 22012/2013 forecast. f This T is attribbutable to cash c flow predictio ons, particularly in relation to Cappital Works funding and d corresponnding expenditure in 2013/20014. 4.3 Op perating Ex xpenditure

Expen nditure Typ pes

Ref

Employyee benefits Contraacts, materials and servicces Plant and equipmennt operating costs Borrow wing costs Bad debts Net losss on sale/wrrite off of asssets Deprecciation and amortisation a Total Operating Expenditu ure

4.3.11 4.3.22 4.3.33 4.3.44 4.3.55

32

4.3.66

Fore ecast Budget B Actual A Vaariance 2013/2014 2012//2013 $’000 $’000 $’000 $ 48,612 4 52,265 5 4,027 821 100 2,537 27,717 2 136 6,079

51,110 63,838 4,331 1,432 124 3,000 29,839 153,674

2,498 11,573 304 611 24 463 2,122 17,595

Greaater Bendigo City Council Propposed Budget - 2013/2014


4.3.1 Employee Benefits ($2.50 million increase) Employee benefits include all labour related expenditure such as wages and salaries and on-costs which includes allowances, leave entitlements and employer superannuation. Employee benefits are forecast to increase by 5.14% or $2.50 million compared to 2012/2013 forecast. This increase relates to the following key factors:  Council’s Enterprise Agreement (EA)  Reclassification of staff as prescribed by the relevant awards  Impact of full year employment of staff who took up positions part way through 2012/2013. (approved in the 2012/2013 budget)  Approved new positions to enable efficient and increased service delivery  Increase in superannuation payments as a result of the impact of changes in relation to the Superannuation Guarantee  Approved new positions fully funded by State Government  The increases in staff numbers are detailed in the following table  One new position is supported by external funding Cost 2013/2014 $’000

External Funding

1.00 Full time

83

Yes

0.60 Part Time – convert from Casual

41

No

0.25 FT Part Year

12

No

Presentation and Assets Road Worker

0.80 FT Part Year

48

No

Total

2.65

Department/Unit City Futures Development Officer – Bendigo Art Gallery Community Wellbeing Civic Events Officer

Planning and Development Assistant Municipal Fire Prevention Officer

FTE

Greater Bendigo City Council Proposed Budget – 2013/2014

Full Time/Part Time

184

33


4.3.2 Contracts, Materials and Services ($11.57 million increase) Contracts, materials and services include the purchases of consumables, payments to contractors for the provision of services and utility costs. Contracts, materials and services are forecast to increase by 22.13% or $11.57 million compared to the 2012/2013 forecast. The increase is significantly due to the contribution to major works. Capital expenditure on nonCouncil assets are accounted for as operational expenditure, with the major project in 2013/2014 being the commencement of construction of the Bendigo Community Theatre $11.10 million. The majority of these funds are being received from both Federal and State Government, and although the Council will operate the facility, ownership will remain with the State Government. Other items contributing to the increase include insurance charges $391,000, and utilities $838,500. A number of large exhibitions were not staged at the Bendigo Art Gallery during 2012/2013, however exhibitions will return during 2013/2014, therefore the level of expenditure increases $1.49 million. There has been a decrease of $934,000 in the budgeted payments to Consultants throughout the organisation. 4.3.3 Plant and Equipment Operating Costs ($0.30 million increase) There is an increase in plant operating costs due to additional cost of diesel fuel $101,500, and additional expenditure on leasing of plant $128,500. 4.3.4 Borrowing Costs ($0.61 million increase) Borrowing costs relate to interest charged by financial institutions on funds borrowed. The increase in borrowing costs results from the planned additional borrowings, and commitment of current loan portfolio. 4.3.5 Bad Debts ($0.02 million increase) There is a minor increase in bad and doubtful debts in line with current trends. All debts are managed under the Revenue and Debt Collection Policy. 4.3.6 Depreciation and Amortisation ($2.12 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 $2.12 million for 2013/2014 is due to the revaluation of some asset classes and the full year effect of the 2012/2013 capital works program.

34

Greater Bendigo City Council Proposed Budget - 2013/2014


5. Analysis of Budgeted Cash Position This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2013/2014 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 services 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. 5.1 Budgeted Cash Flow Statement

Ref

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received

Budget 2013/2014 $’000

Variance $’000

109,070 (114,504) 1,472

119,028 (119,279) 1,820

9,958 (4,775) 348

38,536 34,574

31,047 32,616

(7,489) (1,958)

4,218 (50,848) (46,630)

2,280 (47,355) (45,075)

(1,938) 3,493 1,555

11,300 (2,125) 0 (834) 8,341

7,134 (1,957) (196) (1,432) 3,549

(4,166) 168 (196) (598) (4,792)

(3,715) 38,377

(8,910) 34,662

(5,195) (3,715)

34,662

25,752

(8,910)

5.1.1

Government receipts Net cash provided by operating activities Cash flows from investing activities 5.1.2 Proceeds from sales of property, plant & equipment Payments for property, plant and equipment Net cash used in investing activities Cash flows from financing activities 5.1.3 Proceeds from borrowings - interest bearing Repayment of borrowings - interest bearing Trust funds Borrowing costs Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of the year 5.1.4/5.2 Source: Appendix A Greater Bendigo City Council Proposed Budget – 2013/2014

Forecast Actual 2012/2013 $’000

35


5.1.1 Operating Activities ($1.96 million decrease) The decrease in cash inflows from operating activities is a combination of increased revenue from rates (refer note 4.2.1) offset by decreased operating grants (refer note 4.2.7), increased employee costs (refer note 4.3.1), and increased contracts, materials and services (refer note 4.3.2). The net cash flows from operating activities does not equal the operating result 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.

Surplus (deficit) for the year Depreciation Net non-cash movement in current assets and liabilities Cash flows available from operating activities

Forecast Actual 2012/2013 $’000 21,785 27,717 (14,928) 34,574

Budget 2013/2014 $’000

Variance $’000

9,171 29,839 (6,394) 32,616

(12,614) 2,122 8,534 (1,958)

5.1.2 Investing Activities ($1.56 million decrease) The overall reduction in cash used for investing activities is as a result of decreased payments for property, plant and equipment due to the level of capital expenditure for 2013/2014 compared to forecast 2012/2013. This is partially offset by a budgeted decrease in proceeds from sale of assets. The forecast for capital expenditure 2012/2013 includes the completion of a number of projects carried forward from 2011/2012. 5.1.3 Financing Activities ($4.79 million decrease) For 2013/2014 the total principal repayment is $1.96 million and other finance charges are $1.63 million. The 2013/2014 budget includes new borrowings of $7 million. Financing activities also includes lending of and repayment of approved loans for private heritage works and community organisations. 5.1.4 Cash and Cash Equivalents at End of the Year ($8.91 million decrease) Overall, total cash and investments are forecast to decrease by $8.91 million to $25.75 million as at 30 June 2014, reflecting Council’s strategy of using excess cash and investments to enhance service delivery and enable the renewal and upgrade of existing infrastructure, and the creation of new infrastructure.

36

Greater Bendigo City Council Proposed Budget - 2013/2014


5.2 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 (refer note 5.1) indicates that Council is estimating at 30 June 2014 it will have cash and investments of $25.75 million, which are restricted as shown in the following table.

Ref Total cash and investments Restricted cash and investments - Statutory & Discretionary reserves - Trust Deposits Unrestricted cash and investments

Forecast Actual 2012/2013 $’000 34,662

5.2.1 5.2.2 5.2.3

17,200 2,649 14,813

Budget 2013/2014 $’000

Variance $’000

25,752

(8,910)

17,170 2,649 5,933

30 0 (8,880)

5.2.1 Statutory and Discretionary Reserves ($17.17 million) Statutory funds must be applied for specified statutory purposes in accordance with various legislative and contractual requirements. While these funds earn interest revenues for Council, the funds are not available for other purposes. Discretionary reserves have been earmarked for specific utilisation in future years. Discretionary reserves include funds for waste disposal facility development, strategic property purchases, Bendigo Theatre development, long service leave, and future funding for defined benefit superannuation. $30,000 is the budgeted decrease in Statutory and Discretionary Reserves for the 2013/2014 year. 5.2.2 Trust Deposits ($2.65 million) These funds are deposits or retention amounts controlled by Council and recognised as Trust Funds until they are returned or forfeited. 5.2.3 Unrestricted Cash and Investments ($5.93 million) These funds are free of all specific Council commitments and represent funds available to meet daily cash flow requirements and unexpected short term needs. The lower level of unrestricted cash and investment reflects Council’s commitment to utilising existing cash resources, minimisation of rate impacts and borrowing to fund Capital Works. The low level is also a result of determining that all discretionary reserves should be cash backed at 30 June each year – these funds immediately become available for use on 1 July.

Greater Bendigo City Council Proposed Budget – 2013/2014

37


6. Ana alysis of Ca apital Budg get This secction analyses the planned capital exppenditure budget for the 2013/2014 yyear and the e sources of fundinng for the caapital budget.. apital Work ks 6.1 Ca Fore ecast Ac ctual 2012/2 2013 $’000 $

Budget B 2013 3/2014 $’000

V Variance $’000

Capita al Works Areas A

Ref

Capita al Works Land Land Im mprovementts Buildinggs Plant, EEquipment annd Other Roads and Bridges Drainagge Public FFurniture and Fittings Total Capital Works

6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7

4 2,701 2 17 7,130 3,556 3 18 8,494 7,447 7 1,467 50 0,799

0 3,894 13,475 5,559 16,541 4,695 3,191 47,355 4

(4) 1,193 (3,655) 2,003 (1,953) (2,752) 1,724 (3,444)

Repre esented by: New asssets Asset rrenewal/upgrrade Asset eexpansion Total capital worrks

6.1.8 6.1.8 6.1.8

9,968 9 29 9,550 11,281 50 0,799

7,313 34,209 5,833 47,355 4

(2,655) 4,659 (5,448) (3,444)

Source: Appendix A. A A more detailed listing of the capitaal works pro ogram is incluuded in Appe endix C.

38

Greaater Bendigo City Council Propposed Budget - 2013/2014


6.1.1 La and ($0) y no speccific land parccels have been identified for purchasse. For the 2013/2014 year, 6.1.2 La and Improv vements ($ $3.89 millio on) The mo ore significannt projects budgeted fo or 2013/2014 include th he continuattion of the Bendigo Botanic Gardens master m plan implementaation $740,0 000, develop pment of thhe Canterbu ury Park Central Activity Areea $693,000 and continuaation of the Rail Trail Extension $7550,000. Buildings ($13.48 millio on) 6.1.3 B y $13.48 8 million willl be spent on building co onstruction projects. The T more For the 2013/2014 year, significannt projects include co ompletion off the Bendigo Library Redevelopm ment $2.73 million, complettion of the Bendigo B Art Gallery Exppansion $3.1 15 million, works w at Caanterbury Paark $2.81 million, and works on various pool facilitiies $1.05 million m including the Lonng Gully Splash Park $600,0000. 6.1.4 Plant, Equip pment and Other ($5. 60 million)) For the 2013/2014 year, $5.60 million will be expendeed on plant, equipment, and IT asse ets. The more siggnificant pro ojects include e ongoing cyyclical replaccement of th he plant and vehicle fleet of $4.1 million, upgrade and d replaceme ent of inform mation techn nology $732,,000 and paarking ticket machine replacem ment $160,0000. Roads and Bridges B ($16 6.54 million n) 6.1.5 R hs, kerb and channel, bikke/walking paths p and This classsification inncludes local roads, bridgges, footpath traffic co ontrol. 4 million wil l be expended on road and bridge projects. The T more For the 2013/2014 year, $16.54 significannt projects innclude renew wal of variouus road consstruction, traaffic managem ment and strreetscape works $ $7.7 million, Mitchell Stre eet upgrade $3.6 million,, footpath an nd kerb and channel worrks $1.30 million, bike/walkingg paths $1.03 3 million and $745,000 fo or bridge works.

Greater B Bendigo City Co ouncil Proposed d Budget – 201 3/2014

39


6.1.6 Drainage ($4.70 million) For the 2013/2014 year, $4.70 million will be expended on drainage projects. The need for a continued increased commitment to drainage works has been identified from Council's 5 Year Capital Works Plan, with major works to be conducted at Rathbones Lane $775,000 and Osborne Street $525,000. The balance is made up of various drainage works around the municipality. 6.1.7 Public Furniture and Fittings ($3.20 million) For the 2013/2014 year, $3.20 million will be expended on additional public furniture and fittings throughout the municipality, including seating, lighting, shade structures, bus shelters, and playground equipment. Major projects include the upgrading of streetlights to more energy efficient models $987,500 and installation of sport lighting at Epsom-Huntly Recreation Reserve $429,000. 6.1.8 New Assets ($8.2 million), Asset Renewal/Upgrade ($34.2 million), Expansion ($5.8 million) A distinction is made between expenditure on new assets, expenditure on asset renewal/upgrade and expansion. Expenditure on asset renewal/upgrade is expenditure on an existing asset, which improves the service potential or the life of the asset. Expenditure on new assets does not have any element of expansion of existing assets but will result in an additional burden for future operation, maintenance and capital renewal. The major projects included in the above categories, which constitute expenditure on new assets, are components of the Canterbury Park Central Activity Area development $1.7 million, the Long Gully Splash Park $600,000, components of the Bendigo Library Redevelopment $500,000, and installation of sporting lights at Epsom-Huntly Recreation Reserve $429,000. 6.2 Funding Sources Forecast Actual 2012/2013 $’000

Budget 2013/2014 $’000

Variance $’000

Sources of funding

Ref

External Grants – Capital Contributions Proceeds on sale of assets

6.2.1 6.2.2 6.2.3

12,938 2,846 4,218 20,002

6,795 2,079 2,280 11,154

(6,043) (767) (1,938) (8,848)

Internal Reserve Investments Loan funds Working Capital/Operations

6.2.4 6.2.5 6.2.6

1,502 11,300 17,995 30,797 50,799

1,622 7,000 27,579 36,201 47,355

120 (4,300) 9,584 5,404 (3,444)

Total Funding Sources

40

Greater Bendigo City Council Proposed Budget - 2013/2014


Source: Appendix A 6.2.1 G Grants - Cap pital ($6.78 8 million) Capital ggrants and contributions c s include all monies receeived from State and Fedderal sources for the purposees of fundingg the capital works proggram. Significcant grants are a budgetedd to be rece eived for Bendigo Art Galleryy Expansion n $1.28 milliion, Roads to t Recoveryy projects $$1.5 million, Mitchell Street development $830,000 an nd Streetlightt upgrades $607,000. $ 6.2.2 C Contributions ($2.08 million) m om various sources to support th he delivery of specific projects. Contributions are received fro Includedd in the budgget for 2013 3/2014 is $5500,000 conttribution from the Nortth Central Goldfields G Library Corporationn towards the t Bendigo o Library Reedevelopmen nt, $525,0000 from Bendigo Art Gallery Board towaards the Be endigo Art G Gallery expaansion, $319 9,000 contri ribution tow wards the upgrade of the Heatthcote East Baynton Roaad Bridge fro om adjoiningg Council, annd $195,000 towards recreatio on and sportting facilities. 6.2.3 Proceeds on n Sale of Asssets ($2.28 8 million) Proceedds from the sale s of assets include plaant and moto or vehicle saales in accord rdance with Council's C fleet rennewal progrram of $930 0,000. A fu rther $1.35 million will be generatted from the e sale of Council owned surpplus propertties. These proceeds will w be transfferred to thee Land and Buildings Reserve. 6.2.4 R Reserve Inve estments ($1.62 millio on) The Co ouncil has significant s caash reservees. During the budgett preparatioon process, Council determines how muuch of these reserves willl be used to o fund its ann nual capital w works program. The onies set aside for speciific purposess such as Waste W Manageement Facilities, Car reservess include mo Parking, Building Red developmentt, and Drainaage Works. For 2013/20 014, $1.62 m million will be e used to fund parrt of the capital works prrogram incluuding Recreaation Works $550,000 annd $434,000 towards Drainagee Works.

Greater B Bendigo City Co ouncil Proposed d Budget – 201 3/2014

41


6.2.5 Loan Funds ($7 million) New borrowings of $7 million will be used to assist in the overall delivery of the capital works program including significant projects such as the Bendigo Art Gallery Expansion, Bendigo Library Redevelopment, Canterbury Park development and the Bendigo Botanic Garden Masterplan implementation. 6.2.6 Working Capital/Operations ($27.58 million) In addition to reserve investments, City of Greater Bendigo also have uncommitted cash and investments which represent working capital and funds preserved from the previous financial year. Cash is also generated from operating activities. $27.58 million will be available from operations and previously held cash investments to fund the 2013/2014 capital works program. Refer to section 5. ’Analysis of Budgeted Cash Position’ for more information on funds from operations.

42

Greater Bendigo City Council Proposed Budget - 2013/2014


7. Analysis of Budgeted Financial Position This section analyses the movement in assets, liabilities and equity between 2012/2013 and 2013/2014. 7.1 Budgeted Balance Sheet

Ref

Current assets Cash and cash equivalents Trade and other receivables Inventory Other assets Total current assets

Budget 2013/2014 $’000

Variance $’000

34,662 10,845 111 393 46,011

25,752 6,914 116 381 33,163

(8,910) (3,931) 5 -12 (12,848)

4,181 390 806 1,154,533 498 1,160,408 1,206,419

4,681 390 806 1,191,642 498 1,198,017 1,231,180

500 0 0 37,109 0 37,609 24,761

11,725 10,681 1,843 2,649 26,898

12,336 10,895 2,031 2,649 27,911

611 214 188 0 1,013

5,607 22,402 28,009 54,907 1,151,512

5,810 27,257 33,067 60,978 1,170,202

203 4,855 5,058 6,071 18,690

537,013 597,299 17,200 1,151,512

545,733 607,299 17,170 1,170,202

8,720 10,000 (30) 18,690

7.1.1

Non-current assets 7.1.1 Investments in Associates Trade and other receivables Forestry plantations Property, infrastructure, plant and equipment Intangibles Total non-current assets Total assets Current liabilities Trade and other payables Provisions Interest-bearing loans and borrowings Trust funds Total current liabilities

7.1.2

Non-current liabilities Provisions Interest-bearing loans and borrowings Total non-current liabilities Total liabilities Net assets

7.1.2

Equity Accumulated surplus Asset revaluation reserve Other reserves Total equity Source: Appendix A

Forecast Actual 2012/2013 $’000

7.1.3 7.1.3

Greater Bendigo City Council Proposed Budget – 2013/2014

43


7.1.1 Current Assets ($12.85 million decrease) and Non-Current Assets ($37.61 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 held in deposits or other highly liquid investments with short term maturities of three months or less. These balances are projected to decrease by $8.91 million between the 2012/2013 forecast and 2013/2014 budget year mainly due to early payment of the 2013/2014 Victorian Grants Commission funds being received in 2012/2013, which increases the 30 June 2013 cash balance and reduces the number of quarters to be received in 2013/2014 to two quarters only. Also contributing towards the reduction in cash is payment of construction of the Bendigo Community Theatre, with $11.1 million expenditure expected in 2013/2014, $5.65 million will be received in Government grants this financial year to offset, in addition to funds received in 2012/2013. Trade and other receivables are monies owed to Council by ratepayers and others. Short term debtors continue to be managed under tight financial controls. Long term debtors (non-current) include loans to community organisations. Investments in Associates reflect Council's investment in the North Central Goldfields Regional Library Service. Property, infrastructure, plant and equipment is the largest component of Council’s worth and represents the value of all land, land improvements, buildings, artworks, plant and equipment, roads, bridges, drainage, and public furniture and fittings, which has been built up by the Council over many years. The increase in this balance is attributable to the net result of the capital works program ($47.3 million), gifted developer assets ($10.95 million), depreciation of assets ($29.84 million), and the sale and disposal of property, plant and equipment ($2.28 million). 7.1.2 Current Liabilities ($1.01 million increase) and Non-Current Liabilities ($5.06 million increase) Trade and other payables are those to whom Council owes money as at 30 June. These liabilities are budgeted to increase slightly due to timing of capital works payments. Provisions include accrued long service leave and annual leave owing to employees. These employee entitlements are expected to increase slightly after factoring in an increase for Enterprise Bargaining outcomes. Interest-bearing loans and borrowings are the balance of borrowings held by the Council. The Council is budgeting for new borrowings of $7 million and to repay $1.96 million of its loan portfolio over the year. 7.1.3 Total Equity ($18.69 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 budgeted valuations as at 30 June 2014.  Other reserves are funds that Council 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.

44

Greater Bendigo City Council Proposed Budget - 2013/2014


During the year a net amount of $30,000 will be transferred from other reserves to accumulated surplus. This net amount consists of $5.44 million to be transferred to reserves and $5.47 million to be transferred from reserves to offset project costs. This is a transfer between equity balances only and does not impact on the total balance of equity. 7.1.4

Working Capital ($14.9 million decrease)

Current assets Current liabilities Working Capital Reserves Unrestricted Working Capital

Forecast Actual 2012/2013 $’000

Budget 2013/2014 $’000

Variance $’000

46,011 26,898 19,113

33,163 27,911 5,252

(12,848) 1,013 (13,861)

17,200 1,913

17,170 (11,918)

(30) (13,831)

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. Council has also committed further current assets to specific and restricted purposes, represented by reserves, which may not yet be represented as current liabilities at 30 June. The low level is also a result of determining that all discretionary reserves should be cash backed at 30 June – these funds immediately become available for use on 1 July each year. 7.2

Key Assumptions

In preparing the Budgeted Balance Sheet for the year ending 30 June 2014 it was necessary to make a number of assumptions about assets, liabilities and equity balances. The key assumptions are as follows:  A total of 97.5% of total rates and charges raised will be collected in the 2013/2014 year.  Trade creditors to be based on total capital and operating expenditure. Payment cycle is 30 days.  Other debtors and creditors to remain consistent with 2012/2013 levels.  Employee entitlements to be increased by the Enterprise Agreement outcome offset by the impact of continued active management of leave entitlements of staff.  Repayment of loan principal to be $1.96 million.  Total capital expenditure to be $47.35 million.  A total of $5.44 million to be transferred to reserves from accumulated surplus, representing the accumulation of reserve funds via Developer Levies, Grants, Proceeds from Sale of Properties and Garbage Charges, offset by a transfer from reserves of $5.47 million towards the 2013/2014 capital works program.

Greater Bendigo City Council Proposed Budget – 2013/2014

45


8. Strategic Resource Plan and Key Financial Indicators This section considers the long term financial projections of the Council. The Act requires a Strategic Resource Plan to be prepared covering both financial and non-financial resources, and including key financial indicators for at least the next four financial years to support the Council Plan. 8.1 Plan Development Council has prepared a Strategic Resource Plan (SRP) for the four years 2013/2014 to 2016/2017 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 Plan, 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 Long Term Financial Plan, are:  Achieving current or enhanced levels of service.  Maintenance of cash reserves to enable the City of Greater Bendigo to meet its cash outlays as they fall due.  Maintain a capital expenditure program of at least $40 million per annum, and ensuring renewal expenditure is not less than depreciation.  Achieve a balanced budget on a cash basis.  Return surplus operating results annually in order to maintain capacity to finance current and future Council strategies and meet capital investment and renewal requirements. In preparing the SRP, the 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 Plan 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. 8.2 Financial Resources The following table summarises the key financial results for the next four years as set out in the SRP for years 2013/2014 to 2016/2017. Appendix A includes a more detailed analysis of the financial resources to be used over the four year period.

Operating result Underlying operating result Cash and investments Cash flows from operations Capital works 46

Strategic Resource Plan Forecast Budget Projections Actual 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 $’000 $’000 $’000 $’000 $’000 21,785 9,171 19,376 27,722 21,181 3,077 (9,124) 4,316 4,552 4,899

Trend +/o/+ o

34,662

25,752

29,632

26,028

29,029

o

34,574

32,616

41,920

53,741

50,226

+

50,799

47,355

41,350

58,046

46,437

o

Greater Bendigo City Council Proposed Budget - 2013/2014


Key to FForecast trennd above: + Forecaasts improveement in Council’s financcial performaance/financial position inddicator o Forecaasts that Council’s financcial performaance/financial position ind dicator will bbe steady – Forecaasts deteriorration in Cou uncil’s financcial performaance/financial position inddicator. The follo owing graph shows the general g financcial indicatorrs over the four f year perriod.

The keyy outcomes of o the SRP arre as follows :  Financial susstainability y (Section 5 5) - Cash an nd investmen nts are foreccast to decre ease over thhe four yearr period from m $34.66 miillion to $29 9.03 million. Cash held at 30 June is simply reeflective of thhe timing of our cash infllows and outtflows.  R Rating strattegy (Section 9) – Raates increasees are forecast to remaain at 6.0% over the thhree years 20014/2015 to 2016/2017.  Se ervice deliv very strate egy (Section n 10) – Servvice levels haave been incrreased in some areas thhroughout thhe four year period. Deespite this, op perating surp pluses are foorecast in all years as a result of co ontinued operating and capital gran nt revenue being b receiveed to fund both the he underlyingg result is a measure off financial annnual operatting and capiital works p rograms. Th suustainability and is an im mportant meeasure as on nce-off items can often mask the operating o reesult.  B Borrowing strategy s (S Section 10)) – Borrow wings are forecast to inncrease from m $24.25 m million to $366.16 million over the fo our year perriod. This in ncludes new w borrowingss of $7.0 m million in 2013/2014, $6.5 50 million in 2014/2015, $4.50 millio on in 2015/22016 and $3.5 million inn 2016/2017. These proposed borro owings are in n line with Council’s C borrrowing straategy and reeflect the ideentified requiirements to meet forwarrd capital wo orks budgetss.  In nfrastructure strategy y (Section 10) - Capitaal expenditurre over the ffour year pe eriod will to otal $194 milllion at an avverage of $488.51 million.

Greater B Bendigo City Co ouncil Proposed d Budget – 201 3/2014

47


8.3 Key Financial Indicators The following table highlights Council’s current and projected performance across a range of key financial indicators. These provide a useful analysis of Council’s financial position and performance and should be used in the context of the organisation’s objectives.

Financial performance Underlying result/Underlying rev Rate revenue/Underlying revenue Debt servicing/Total revenue Grants/Total revenue Fees & charges/Total revenue Financial position Indebtedness/Rate revenue Underlying result/Total assets Current assets/Current liabilities Capital expenditure Capital works - New assets - Asset renewal/upgrade - Asset expansion Capital works/Rate revenue Asset renewal/Total depreciation

Notes

Indicator

Strategic Resource Plan Projections Projections 2014/15 2015/16 2016/17

Forecast Actual 2012/2013

Budget 2013/2014

1

2.2%

(5.7%)

2.7%

2.7%

2.8%

2

57.6% 0.5% 24.4% 15.4%

59.8% 0.9% 19.1% 16.8%

59.3% 1.0% 18.7% 16.4%

60.3% 1.1% 21.6% 15.6%

61.3% 1.1% 18.1% 16.0%

3

30.4% 0.3%

33.9% (0.7%)

36.1% 0.3%

35.4% 0.3%

33.4% 0.4%

4

171%

119%

141%

126%

131%

5

$50,799 $9,968 $29,550 $11,281 63.6% 106.6%

$47,355 $7,313 $34,209 $5,833 54.8% 114.6%

$41,350 5,406 $30,851 $5,093 44.3% 100%

$58,046 $8,964 $41,932 $7,150 53.5% 128.8

$46,437 $6,371 $34,346 $5,720 39.8% 100%

Notes to indicators 1. Underlying result - Improvement in financial performance expected over the period, through utilisation of Council's cash reserves and/or additional borrowings. 2. Rate revenue/Underlying revenue - Reflects extent of reliance on rate revenues to fund all of Council's on-going services. Trend indicates Council reliance on rate revenue will remain at a similar level over the reported period. 3. Indebtedness/Rate revenue - Trend is reflective of Council's borrowing strategy and includes some new borrowings in the future offset by continued repayment of borrowings. 4. Current Assets/Current Liabilities – Working capital is forecast to decrease in 2013/2014 year due to a reduction in cash reserves to fund the capital program. The trend in latter years is to gradually increase. 5. Asset renewal/Total depreciation - This percentage indicates the extent of Council's renewals 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. 48

Greater Bendigo City Council Proposed Budget - 2013/2014


8.4 Non-Financial Resources In addition to the financial resources to be consumed over the planning period, Council will also utilise non-financial resources, in particular human resources. The following table summarises the human resources for the next four years. Strategic Resource Plan Forecast Projections Actual Budget Projections 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 $’000 $’000 $’000 $’000 $’000 48,612 51,110 55,562 60,044 64,888

Indicator

Employee costs 8.5 Staffing Resources

The current breakdown of staff numbers for the City of Greater Bendigo is outlined below:

Full Time

No of Male Employees 272

No of Female Employees 173

Total No of Employees 445

Total Employee % 42.7

Part Time

55

285

340

32.6

Casual

60

133

193

18.5

Temp Full Time

13

23

36

3.5

Temp Part Time

2

26

28

2.7

402

640

1,042

100%

Total

Greater Bendigo City Council Proposed Budget – 2013/2014

49


9. Rating Strategy This section considers the Council’s rating strategy including strategy development and assumptions underlying the current year rate increase and rating structure. 9.1 Strategy Development In developing the Council Plan and the Strategic Resource Plan (referred to in Section 8), rates and charges were identified as an important source of revenue, accounting for approximately half of the total revenue received by Council annually. A key component of the strategy is to ensure the surplus on operations when added to depreciation, funds an acceptable level of capital works without the need for excessive borrowing. The Council Plan assumes a rate increase of 6.00% in 2013/2014, then an ongoing rate increase of 6.00% over the years 2014/2015, 2015/2016 and 2016/2017 plus additional rate revenue from growth. This enables the City of Greater Bendigo to embark upon a significant level of new capital works each year and a manageable level of borrowings. Planning for future rate increases has therefore been an important component of the long term financial planning process. The City of Greater Bendigo also actively reviews fees and charges each year to minimise pressure on rates to ensure users are paying a reasonable price for services. The City of Greater Bendigo also pursues all available opportunities for grants and subsidies. As provided under Section 129 of the LGA, Council gives public notice of having prepared a budget and that a person has a right to make a submission under Section 223 of the LGA. A submission can comment on the rating structure. In determining rate increases each year it is necessary to balance the importance of rate revenue as a funding source with community sensitivity to increases, including the impact of a bi-annual general revaluation, which alters property valuations and subsequently rates for some properties in the municipality. The latest revaluation of properties was applied in the 2012/2013 year. To ensure that deliberations about future rate increases have been made on an informed basis, comparisons of historical rate increases for the City of Greater Bendigo have been made. The following table shows the rate increases over five years and the average rate per capita. Year 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Average increase

50

Rate Increase 5.00% 4.00% 4.50% 5.90%

Average Rate Per Capita $578 $614 $653 $699

5.50%

$730

6.00% 5.15%

$778 $675

Greater Bendigo City Council Proposed Budget - 2013/2014


9.2 Current Year Rate Increase It is predicted that the 2013/2014 operating position will be impacted by growth in services, labour costs and general cost increases. It will therefore be necessary in the future to carefully monitor the revenue growth from rates and charges while containing costs in order to maintain capital expenditure at a reasonable level and a sound financial position. The contribution from working capital/operations towards capital investments for the 2013/2014 year is adequate with the balance of funds required coming from reserves and loan borrowings. In order to achieve the objectives of maintaining service levels and a substantial capital expenditure program, total income from general rates and the municipal charge will increase by 6.00% with the municipal charge being reduced from $64.80 to $32.40. The reduction in municipal charge income is allocated into each differential rate. The farm rate will increase by 4.00%, and the burden of the difference between a 4% and a 6% increase, $42,000, has been passed on to the vacant land rate which will increase by 7.60%. The rates in the dollar, taking into account the reduced municipal charge in 2011/2012, 2012/2013 and 2013/2014, maintain the approximate differential between the various rate categories as follows:     

Farm Rate is 85% of the general rate Commercial/industrial A is 185% of the general rate Commercial/industrial B is 180% of the general rate Commercial/industrial C is 190% of the general rate Vacant land is 125% of the general rate

The garbage charge will increase by 4.06% for 140 litre bins, 4.28% for 240 litre bins, and the recycling charge will increase by 2.56%, raising a total of $86.49 million total rates and charges, including $1.5 million generated from supplementary rates. Garbage charges increase annually to cover additional waste management costs, EPA Environmental Landfill Levy increase and continued carbon pricing costs. 9.3

Rating Structure

City of Greater Bendigo has established a rating structure which is comprised of four key elements. These are:  Property values, which reflect capacity to pay  A municipal charge being a uniform charge on all properties to cover some of the administrative costs of the City of Greater Bendigo  A user pays component to reflect usage of waste collection services provided by City of Greater Bendigo  A user pays component to reflect usage of recycle waste collection services provided by the City of Greater Bendigo In establishing this rating structure, City of Greater Bendigo has taken account of section 3C(1) of the Local Government Act – “The primary objective of a Council is to endeavor to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions” and section 3C(2)(f) requires Council must ensure the equitable imposition of rates and charges”. City of Greater Bendigo has had regard to the Ministerial Guidelines for Differential Rating as required by section 161(2A) of the LGA. The City of Greater Bendigo makes a further distinction within the property value component of rates based on the purpose for which the property is used to assist in achieving the objective of equity, efficiency and simplicity, to meet its obligations under the LGA. The rating structure comprises four broad differential rates being general, commercial/industrial, farm, and vacant land and a rate concession for recreational land. The detailed description of each differential rate is included in Appendix B of this document.

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The commercial/industrial properties are divided into three differential rates based on geographic locations. The three commercial/industrial rates and the vacant land rate are higher than the general rate, the farm rate is lower than the general rate. These rates are structured in accordance with the requirements of Section 161, Differential Rates, of the LGA. Under the Cultural and Recreational Lands Act 1963, provision is made for a Council to grant a rating concession to any recreational lands which meet the test of being rateable land under the LGA. Differential rates were introduced by City of Greater Bendigo in 1995. No significant alterations have been made to the rating structure since 1995, and given the rates collection rate of in excess of 97%, the lack of submissions made in relation to the rating structure from annual budget to annual budget, and the Council re-affirming in its Rating Strategy review carried out in 2011 that the rating structure meets Council’s objectives together with complying with the Act, no further consultation with ratepayers has occurred. In compiling the 2011 Rating Strategy review, Council considered the degree of differentiation between the rate categories supported the three principles of benefit, capacity to pay and incentive to be supportable and reaffirmed its decision that the six differential rates levied achieve the objectives of equity, efficiency and simplicity. Striking a proper balance between these elements provides equity in the distribution of the rate burden across ratepayers, which allows the efficient carrying out of the functions of Council compared to the use of a uniform rate. The result is an equitable distribution of rates across sectors with the aim of optimal flexibility in collection of rates to deal with changing needs within the wider community. These distinctions are based on the concept that commercial/industrial properties should pay a fair and equitable contribution to rates, taking into account the benefits those businesses derive from the local community, the services Council provides and their ability to pay. The three different levels of commercial industrial differential rates, based on locality within the municipality, takes into account the differing levels of service provided by Council to commercial industrial properties in each locality. Vacant residential and vacant rural residential land are levied a rate higher than the general rate to encourage development of such land. Council has determined rates and charges in respect of farming properties should take account of the restricted access to many City of Greater Bendigo services and are appropriately discounted to the general rate. The farm rate generates 3.1% of rates, and Council has determined that the 15% concession in the rate in the dollar for Farm Rate to the General Rate does not create any adverse effect to the other five differential rate categories. Council has given consideration to reducing the rate burden for retirement village land and considers a reduced rate burden is not warranted as most residents of retirement villages are able to utilize the wide range of Council services as well as those provided by the villages. The City of Greater Bendigo levies rates on the Capital Improved Valuation (CIV) of properties being the value of the land plus all improvements, on the basis that CIV provides an equitable distribution of rates across the municipality. Since 1994 the City of Greater Bendigo has levied a municipal charge. This charge is a contribution towards the administrative costs of the Council. An outcome of the 2011 Rating Strategy Review was that Council acknowledged that the municipal charge is regressive in nature in that it places an unnecessary burden on those with a lesser capacity to pay. As a result, the municipal charge has been reduced by a further 25% of the 2010/2011 level of $129.60 to $32.40 in 2013/2014, having been reduced by $32.40 in both 2011/2012 and 2012/2013. This decision has been taken to provide rate relief to ratepayers of lower valued properties. The municipal charge accounts for 2.34% of the total rates and municipal charge levied, the LGA allows for a maximum of 20%. In respect to residential properties, this rate relief will affect ratepayers of lower valued properties while the ratepayers of higher valued properties will have a higher than 6.00% rate increase in 2013/2014. Administrative costs are incurred across all Directorates of Council and include salaries, printing and stationery costs, service of rate notices and collection of rates.

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Greater Bendigo City Council Proposed Budget - 2013/2014


The City of Greater Bendigo also has a kerb side waste collection charge and a kerb side recyclable waste charge as provided for under the LGA. Increases in these charges are 4.06% for a 140 litre bin and 4.28% for a 240 litre bin for waste collection, and 2.56% for recycle collection, and reflect recovery of associated costs. There is also a waste collection charge for commercial properties in selected areas of the municipality. These charges are based on the levels of service received by users of the service and range from $219.00 to $1,533.00. An additional recycle bin is available at an annual charge of $45.00 per additional bin. The following table summarises the rates to be raised for the 2013/2014 year. A more detailed analysis of the rates to be raised is contained in Appendix B “Statutory Disclosures”. Rate type General (formerly Residential) rate Commercial/industrial rate A Commercial/industrial rate B Commercial/industrial rate C Farm rate Vacant land - residential & rural residential Municipal charge Garbage Charge – 120/140 Litre per bin per property Garbage Charge - 240 Litre per bin per property Recyclable Garbage per bin per property Additional Recyclable Garbage per bin per property Garbage - (Specified Commercial Areas)  One day per week service - per bin (Ex GST)  Two day per week service - per bin (Ex GST)  Three day per week service - per bin (Ex GST)  Five day per week service - per bin (Ex GST)  Seven day per week service - per bin (Ex GST) Figures are GST exclusive if applicable.

How applied Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV $/ property $/ property $/ property $/ property $/ property

2012/2013

2013/2014

0.353% 0.660% 0.640% 0.690% 0.308% 0.433% $64.80 $123.00 $210.00 $58.50 $45.00

0.3866% 0.7060% 0.6890% 0.7360% 0.3250% 0.4890% $32.40 $128.00 $219.00 $60.00 $45.00

$210.00 $420.00 $630.00 $1050.00 $1470.00

$219.00 $438.00 $657.00 $1095.00 $1533.00

9.4 General Revaluation of Properties The revaluation of all properties within the municipality returned as at 1 July 2012 is utilised for raising rates for the 2012/2013 and 2013/2014 rating years. Property revaluation helps to make sure property owners pay their fair share of rates based on the principle of ability to pay determined by the value of properties, and people with more expensive properties pay more than people with less expensive properties. Revaluation does not generate extra revenue for Council; it redistributes the existing rate revenue across each differential rate based on property values.

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10. Other Strategies This section sets out the strategies that have been developed and incorporated into the Strategic Resource Plan including borrowings, infrastructure and service delivery. 10.1 Borrowings In developing the Strategic Resource Plan (SRP), (see Section 8), borrowings were identified as an important funding source for capital works programs. In the past, Council has used a mix of borrowings and cash and investment reserves to fund the capital works program. For the 2013/2014 year, Council has decided on new borrowings of $7 million to partly fund the capital works program. After making loan repayments of $1.96 million, total borrowings will increase to $29.29 million at 30 June 2014. It is likely that in future years, further borrowings will be required to fund new infrastructure initiatives. The following table sets out future proposed borrowings, based on the forecast financial position of Council as at 30 June 2014.

Year 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

New Borrowings $’000 11,300 7,000 6,500 4,500 3,500

Principal Paid $’000 2,125 1,957 2,155 2,498 2,972

Interest Paid $’000 1,146 1,432 1,735 2,001 2,116

Balance 30 June $’000 24,245 29,288 33,633 35,635 36,163

10.2 Infrastructure The key aspects of the Capital Works program development are as follows:  Identification of capital projects through the preparation of asset condition and management programs.  Prioritisation of capital projects within classes on the basis of evaluation criteria.  Business Case template for officers to document capital project submissions. A key objective of the Capital Works Program is to maintain or renew Council’s existing assets at desired condition levels. If sufficient funds are not allocated to asset renewal through the Capital Works Program then Council’s investment in those assets will reduce, along with the capacity to deliver services to the community. In preparing the Capital Works program for the 2013/2014 year, the following influences have had a significant impact:  Council's commitment to construct projects of a very substantial nature including the completion of the Bendigo Library Redevelopment and Bendigo Art Gallery Expansion, as well as significant expenditure in relation to Canterbury Park, and the Bendigo Botanic Gardens.  Growing demand for sporting facilities in growth areas of the municipality.  Availability of Federal funding for upgrade of roads and to undertake infrastructure projects.  Continued commitment to address community concerns regarding the standard of drainage infrastructure.  More rigorous assessment process for capital works projects has identified the need for increased effort in planning prior to construction.

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Greater Bendigo City Council Proposed Budget - 2013/2014


10.3 Service Delivery The key objectives in Council’s Strategic Resource Plan (referred to in Section 8) which directly impact the future service delivery strategy are to maintain and enhance existing service levels. The Rating Strategy (see Section 9) also refers to modest rate increases into the future. A number of internal and external influences have been identified through discussions with Council which will have a significant impact on the scope and level of services to be provided over the next four years. 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. Park and Natural Reserves Increased commitment to grass slashing to address fire risks, increased resources required to maintain new and upgraded passive and active recreation facilities, increasing power line clearance measures as well as playground facilities given the growth of housing within the municipality. Waste Services Increasing costs associated with the disposal of waste, and the increases to the EPA landfill levy, while planning for future waste disposal. A number of costs will be recovered through increased waste services fees. Child Care State Government regulations have a significant impact on the delivery of Child Care services. These costs will be offset by increases to the child care fees and charges. Art Gallery Expansion works on the Art Gallery have negated the opportunity to stage significant exhibitions in 2012/2013, however a number of significant exhibitions are programed for 2013/2014. Utilities The increasing cost of utilities such as gas, electricity and water is impacting the organisation. It is forecast that utilities costs will increase by $638,575 or 22%. The significant impact is in electricity costs, particularly street lighting. Work is on-going by staff within the organisation, to ensure costs are minimised. Insurances Factors that have increased our insurances by an expected $392,000 (29%) include the general cost of insurance products and revaluation of Councils assets increasing the value of assets. The insurance costs account for the elimination of the Fire Service Property Levy through insurance premiums.

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Appendices The following appendices include voluntary and statutory disclosures of information which provide support for the analysis contained in sections 1 to 10 of this report. This information has not been included in the main body of the budget report in the interests of clarity. Council has decided that while the budget report needs to focus on the important elements of the budget and provide appropriate analysis, the detail upon which the annual budget is based should be provided in the interests of open and transparent local government. The contents of the appendices are summarised below: Appendix A B C D E

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Nature of information Budgeted standard statements Statutory disclosures Capital works program Maps Glossary

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX A

Appendix A - Budgeted Standard Statements This appendix presents information in regard to the Budgeted Standard Statements. The budget information for the years 2014/2015 to 2016/2017 has been extracted from the Strategic Resource Plan. The appendix includes the following budgeted information:  Budgeted Standard Income Statement  Budgeted Standard Balance Sheet  Budgeted Standard Cash Flow Statement  Budgeted Standard Capital Works Statement Standard Statement Assumptions

Standard Statement Assumptions

Forecast Forecast Forecast 2014/2015 2015/2016 2016/2017

CPI

3.19%

3.19%

3.19%

Rates increases Supplementary rates ($’000’s)

6.0% 1,500

6.0% 1,607

6.0% 1,607

Grants Commission increases Recurrent grants % increase Capital Grants ($’000’s)

2.75% 2.75% 4,000

2.75% 2.75% 12,000

2.75% 2.75% 5,000

% increase in User/Statutory Fees & Fines

4.19%

4.19%

4.19%

8.1%

8.1%

8.1%

6,500 5.84% 5.50%

4,500 6.50% 5.50%

3,500 6.50% 5.50%

41,350

58,046

46,437

% increase in employee costs New borrowings ($’000’s) Interest on borrowings Interest on investments Capital Expenditure ($’000’s)

Greater Bendigo City Council Proposed Budget - 2013/2014

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Budgeted Standard Income Statement - for the four years ending 30 June 2017

Forecast Strategic Resource Plan Projections Actual Budget 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 $’000 $’000 $’000 $’000 $’000 Revenues Rates and charges Statutory fees and fines User charges, fees and fines Reimbursements Contributions – cash Contributions – non monetary Government grants - operating Government grants - capital Interest on investments Total revenues Expenses Employee costs Contract payments, materials and services Plant and equipment operating expenses Borrowing costs Bad debts Net Loss on disposal of property, plant, infrastructure and assets held for resale Depreciation Total expenses Operating Result Share of other comprehensive income of Associates accounted for by the equity method Net asset revaluation increments Comprehensive Result

58

79,814 3,172 21,134 274 7,092 6,370 25,598 12,938 1,472 157,864

86,492 3,286 24,071 334 4,295 11,500 24,252 6,795 1,820 162,845

93,295 3,424 24,941 347 5,179 11,060 28,284 4,000 1,920 172,450

100,623 3,567 25,990 358 5,179 11,170 29,062 12,000 2,026 189,975

108,398 3,717 27,081 370 5,179 11,282 29,861 5,000 2,137 193,025

48,612 52,265 4,027 821 100

51,110 63,838 4,331 1,432 124

55,562 57,274 4,543 1,735 110

60,044 59,766 4,766 2,001 130

64,888 62,365 4,999 2,117 138

2,537 27,717 136,079

3,000 29,839 153,674

3,000 30,850 153,074

3,000 32,546 162,253

3,000 34,337 171,844

21,785

9,171

19,376

27,722

21,181

500

500

125

129

133

7,865

10,000

5,865

9,403

12,462

30,150

19,671

25,366

37,254

33,776

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX A

Budgeted Standard Balance Sheet - for the four years ending 30 June 2017

Forecast Strategic Resource Plan Projections Actual Budget 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 $’000 $’000 $’000 $’000 $’000 Current assets Cash and cash equivalents Trade and other receivables Inventory Other assets Total current assets

34,662 10,845 111 393 46,011

25,752 6,914 116 381 33,163

29,632 9,790 112 405 39,939

26,028 11,411 113 417 37,969

29,029 11,715 114 429 41,287

4,181 390 806

4,681 390 806

4,306 394 815

4,436 398 830

4,569 402 845

1,154,533

1,191,642

1,215,646

1,258,019

1,290,094

498 1,160,408 1,206,419

498 1,198,017 1,231,180

515 1,221,676 1,261,615

527 1,264,210 1,302,179

539 1,296,449 1,337,736

Current liabilities Trade and other payables Provisions Interest-bearing loans and borrowings Trust funds Total current liabilities

11,725 10,681 1,843 2,649 26,898

12,336 10,895 2,031 2,649 27,911

12,405 10,895 2,445 2,675 28,420

13,291 11,113 2,930 2,702 30,036

14,086 11,335 3,374 2,729 31,524

Non-current liabilities Provisions Interest-bearing loans and borrowings Total non-current liabilities Total liabilities

5,607 22,402 28,009 54,907

5,810 27,257 33,067 60,978

6,159 31,188 37,347 65,767

6,336 32,705 39,041 69,077

6,516 32,789 39,305 70,829

Net assets

1,151,512

1,170,202

1,195,848

1,233,102

1,266,907

Equity Accumulated surplus Asset revaluation reserve Other reserves Total equity

537,013 545,733 597,299 607,299 17,200 17,170 1,151,512 1,170,202

562,434 613,164 20,250 1,195,848

593,785 622,567 16,750 1,233,102

612,598 635,029 19,250 1,266,907

Non-current assets Investments in Associates Trade and other receivables Forestry plantations Property, infrastructure, plant and equipment Intangibles Total non-current assets Total assets

Greater Bendigo City Council Proposed Budget – 2013/2014

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APPENDIX A

Budgeted Standard Cash Flow Statement - for the four years ending 30 June 2017

Forecast Strategic Resource Plan Projections Actual Budget 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 $’000 $’000 $’000 $’000 $’000 Cash flows from operating activities Receipts from customers Payments to suppliers and employee Interest received Government receipts Net cash inflow (outflow) from operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment Payments for property, infrastructure, plant and equipment Net cash inflow (outflow) from investing activities Cash flows from financing activities Borrowing cost Trust funds Proceeds from borrowings – interest bearing liabilities Repayment of borrowings – interest bearing liabilities Net cash inflow (outflow) from financing activities Net increase (decrease) in cash & cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

60

109,070 (114,504) 1,472 38,536

119,028 (119,279) 1,820 31,047

123,802 (115,177) 1,869 31,426

134,446 (123,390) 2,007 40,678

144,454 (131,152) 2,133 34,791

34,574

32,616

41,920

53,741

50,226

4,218

2,280

700

700

800

(50,848)

(47,355)

(41,350)

(58,046)

(46,437)

(46,630)

(45,075)

(40,650)

(57,346)

(45,637)

(834) 0

(1,432) (196)

(1,735) 0

(2,001) 0

(2,116) 0

11,300

7,134

6,500

4,500

3,500

(2,125)

(1,957)

(2,155)

(2,498)

(2,972)

8,341

3,549

2,610

1

(1,588)

(3,715)

(8,910)

3,880

(3,604)

3,001

38,377

34,662

25,752

29,632

26,08

34,662

25,752

29,362

26,028

29,029

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX A

Budgeted Standard Capital Works Statement - for the four years ending 30 June 2017

Forecast Actual Budget 2012/2013 2013/2014 $’000 $’000

Strategic Resource Plan Projections 2014/15 $’000

2015/16 $’000

2016/17 $’000

Capital works areas Land Land improvements Buildings Plant, equipment and other Roads and bridges Drainage Public furniture and fittings Total capital works

4 2,701 17,130 3,556 18,494 7,447 1,467 50,799

0 3,894 13,475 5,559 16,541 4,695 3,191 47,355

0 3,400 11,766 4,854 14,443 4,100 2,786 41,350

0 4,773 16,517 6,814 20,275 5,755 3,911 58,046

0 3,819 13,214 5,451 16,220 4,604 3,129 46,437

Represented by: New Assets Renewal Expansion/Upgrade Total capital works

9,968 29,550 11,281 50,799

7,313 34,209 5,833 47,355

5,406 30,851 5,093 41,350

8,964 41,932 7,150 58,046

6,371 34,346 5,720 46,437

Greater Bendigo City Council Proposed Budget – 2013/2014

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APPENDIX B

Appendix B - Statutory Disclosures This appendix presents information which the Act and the Regulations require to be disclosed in the Council’s annual budget. The appendix includes the following budgeted information:  Borrowings  Rates and charges  Differential rates

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Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

Statutory disclosures 1. Borrowings

New borrowings (other than refinancing) Debt redemption

2012/2013 Budget $’000 11,300 2,125

2013/2014 Budget $’000 7,000 1,957

2. Rates and Charges 2.1 The proposed rate in the dollar for each type of rate to be levied. Type of Property A differential rate for rateable general properties A differential rate for rateable commercial/industrial properties Class A A differential rate for rateable commercial/industrial properties Class B A differential rate for rateable commercial/industrial properties Class C A differential rate for rateable farm properties A differential rate for rateable vacant land properties – residential & rural residential Rate concession for rateable recreational properties Class 1 Rate concession for rateable recreational properties Class 2 Rate concession for rateable recreational properties Class 3 Rate concession for rateable recreational properties Class 4 Rate concession for rateable recreational properties Class 5

2012/2013 cents/$CIV 0.353%

2013/2014 cents/$CIV 0.3866%

0.660%

0.7060%

0.640%

0.6890%

0.690% 0.308%

0.7360% 0.3250%

0.433% 0.1765% 0.08825% 0.0353% $258.00 $359.00

0.4890% 0.1933% 0.09665% 0.03866% $309.40 $416.00

2.2 The estimated amount to be raised by each type of rate to be levied.

Type of Property General Commercial/industrial Farm Vacant – residential & rural residential Recreational Rating agreements Total rates to be raised

Greater Bendigo City Council Proposed Budget – 2013/2014

2012/2013 Budget $ 44,061,279 14,641,734 2,119,631 2,978,474 38,472 38,121 63,877,711

2013/2014 Budget $ 50,367,503 15,880,445 2,232,904 3,224,733 47,973 41,169 71,794,727

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APPENDIX B

2.3 The proposed percentage change in the rate in the dollar for each type of rate to be levied compared to that of the previous financial year.

Type of Property General Commercial/industrial Class A Commercial/industrial Class B Commercial/industrial Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Class 1 Cultural and Recreation Class 2 Cultural and Recreation Class 3 Cultural and Recreation Class 4 Cultural and Recreation Class 5

2012/2013 Change % (1.95) (4.61) (3.73) (4.906) (4.17) .0003 (1.95) (1.95) (1.95) 16.74 11.49

2013/2014 Change % 9.52 6.97 7.66 6.66 5.52 12.93 9.52 9.52 9.52 19.92 15.88

Notes: 2012/2013 - A general revaluation was applied in 2012/2013 which had the effect of reducing the rate in the dollar for the majority of property types against the 2011/12 year. 2013/2014 - The 25% reduction in the Municipal Charge has an impact on the % change on all property types in that the redistribution of some income from the Municipal Charge to each Differential Rate, together with natural growth, creates a higher than 6.00% increase to the rate in the dollar. The proposed differential rate in the dollar factor compared to the general rate for each type of rate to be levied compared to that of the previous financial year.

Type of Property General Commercial/industrial Class A Commercial/industrial Class B Commercial/industrial Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Class 1 Cultural and Recreation Class 2 Cultural and Recreation Class 3 Cultural and Recreation Class 4 Cultural and Recreation Class 5

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2012/2013 Differential to General Rate

2013/2014 Differential to General Rate

1.00 1.87 1.81 1.95 .87 1.22 0.50 0.25 0.10 N/A N/A

1.00 1.83 1.78 1.90 .84 1.26 0.50 0.25 0.10 N/A N/A

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

2.4 The number of assessments for each type of rate to be levied compared to the previous year. Type of Property General Commercial/industrial Class A Commercial/industrial Class B Commercial/industrial Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Class 1 Cultural and Recreation Class 2 Cultural and Recreation Class 3 Cultural and Recreation Class 4 Cultural and Recreation Class 5 Total number of assessments

2012/2013 No 43,077 2,108 271 1,114 1,256 4,361 6 10 7 18 20

2013/2014 No 44,426 2,120 275 1,121 1,246 4,101 6 10 7 18 20

52,248

53,350

2.5 The basis of valuation to be used is the Capital Improved Value (CIV). 2.6 The estimated total value of land in respect of which each type of rate is to be levied, compared with the previous year. Type of Property General Commercial/industrial Class A Commercial/industrial Class B Commercial/industrial Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Land Total

2012/2013 $’000 12,481,949 1,217,158 80,236 883,332 688,192 687,869 48,775 16,087,511

2013/2014 $’000 13,030,237 1,230,211 95,946 888,072 687,545 659,288 58,697 16,649,996

2.7 The proposed Municipal Charge is $32.40, a reduction of 75% from the 2010/2011 year charge of $129.60, and a reduction of 50.00% from the 2012/2013 year charge of $64.80.

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65


APPENDIX B

2.8 The proposed unit amount to be levied for each type of charge under Section 162 of the Act for both rateable and non-rateable properties. Per Bin Per Bin Type of Charge 2012/2013 2013/2014 $ $ Kerbside garbage collection – 120/140Litre bin 123.00 128.00 Kerbside garbage collection - 240Litre bin 210.00 219.00 Kerbside recycling collection 58.50 60.00 Recycling bin collection in excess of one bin (per additional bin) 45.00 45.00 Garbage Collection and Disposal – Commercial/Industrial Properties as specified in Council’s Garbage and Recycling Charge policy Kerbside collection - Commercial properties - 240Litre bin* 231.00 240.90 Kerbside collection - Commercial properties - 120/140Litre bin* 135.30 140.80 Garbage Collection and Disposal in Specific Commercial Areas as specified in Council’s Garbage and Recycling Charge policy Kerbside collection - 1 day per week* 231.00 240.90 Kerbside collection - 2 days per week* 462.00 481.80 Kerbside collection - 3 days per week* 693.00 722.70 Kerbside collection - 5 days per week* 1,155.00 1,204.50 Kerbside collection - 7 days per week* 1,617.00 1,686.30 (*Amounts are GST inclusive) 2.9

The estimated amounts to be raised for each type of charge to be levied compared to the previous year.

2012/2013 2013/2014 $ $ Municipal 3,369,730 1,721,671 Kerbside garbage collection – 120/140 Litre bin 3,151,744 3,323,392 Kerbside garbage collection - 240 Litre bin 4,074,057 4,071,429 Kerbside recycling collection 2,601,504 2,752,710 Garbage Collection and Disposal – Commercial/Industrial Properties as specified in Council’s Garbage and Recycling Charge policy Kerbside collection – Commercial/industrial properties 240 Litre bin* 708,969 713,787 Kerbside collection – Commercial/industrial properties – 120/140 Litre bin* 67,443 71,104 Garbage Collection and Disposal in Specific Commercial Areas as specified in Council’s Garbage and Recycling Charge policy Kerbside collection - 1 day per week* 218,015 219,701 Kerbside collection - 2 days per week* 52,998 52,998 Kerbside collection - 3 days per week* 169,835 172,003 Kerbside collection - 5 days per week* 122,859 131,291 Kerbside collection - 7 days per week* 91,060 99,492 Total $14,628,214 $13,329,578 Less GST ($130,109) ($132,763) TOTAL $14,498,105 $13,196,815 (*amounts are GST inclusive) Type of Charge

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Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

2.10 The estimated total amount to be raised by rates and charges:

Rates and charges Supplementary rates Total

2012/2013 Budget $ 78,375,816 1,335,108 79,710,924

2013/2014 Budget $ 84,991,542 1,500,000 86,491,542

2.11 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; and  Changes in use of land such that residential land becomes commercial/industrial land and vice versa. 3. Differential Rates 3.1 Rates to be levied The rate and amount of rates payable in relation to land in each category of differential are:  A differential rate of 0.3866% (0.3866 cents in the dollar of CIV) for all rateable general properties. The total amount raised from the general differential rate in 2013/2014, exclusive of supplementary rates will be $50,367,503. General rate type properties include properties with residences erected.  A differential rate of 0.7060% (0.7060 cents in the dollar of CIV) for all rateable commercial/industrial A properties. The total amount raised from the commercial/industrial A differential rate in 2013/2014, exclusive of supplementary rates will be $8,683,515.  A differential rate of 0.6890% (0.6890 cents in the dollar of CIV) for all rateable commercial/industrial B properties. The total amount raised from the commercial/industrial B differential rate in 2013/2014, exclusive of supplementary rates will be $660,879.  A differential rate of 0.7360% (0.7360 cents in the dollar of CIV) for all rateable commercial/industrial C properties. The total amount raised from the commercial/industrial C differential rate in 2013/2014, exclusive of supplementary rates will be $6,536,051.  A differential rate of 0.3250% (0.3250 cents in the dollar of CIV) for all rateable farm properties. The total amount raised from the farm differential rate in 2013/2014, exclusive of supplementary rates will be $2,232,904.  A differential rate of 0.4890% (0.4890 cents in the dollar of CIV) for all rateable non commercial/industrial zoned vacant land properties. The total amount raised from the vacant land differential rate in 2013/2014, exclusive of supplementary rates will be $3,224,733.  A rating concession of 0.1933% (0.1933 cents in the dollar of CIV) for all rateable class 1 cultural and recreational properties. The total amount raised from the cultural and recreational class 1 differential rate in 2013/2014, exclusive of supplementary rates will be $10,894.  A rating concession of 0.09665% (0.09665 cents in the dollar of CIV) for all rateable class 2 cultural and recreational properties. The total amount raised from the cultural and recreational class 2 differential rate in 2013/2014, exclusive of supplementary rates will be $19,409.

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APPENDIX B

 A rating concession of 0.03866% (0.03866 cents in the dollar of CIV) for all rateable class 3 cultural and recreational properties. The total amount raised from the cultural and recreational class 3 differential rate in 2013/2014, exclusive of supplementary rates will be $3,768.  A rating concession of $309.40 for all rateable class 4 cultural and recreational properties. The total amount raised from the cultural and recreational class 4 differential rate in 2013/2014, exclusive of supplementary rates will be $5,569.  A rating concession of $416.00 for all rateable class 5 cultural and recreational properties. The total amount raised from the cultural and recreational class 5 differential rate in 2013/2014, exclusive of supplementary rates will be $8,320. Each differential rate (excepting class 4 and class 5 cultural and recreation properties) will be determined by multiplying the Capital Improved Value of each rateable land (categorised by the characteristics described below) by the relevant percentages indicated above. City of Greater Bendigo considers that each differential rate will contribute to the equitable and efficient carrying out of City of Greater Bendigo functions. Details of the objectives of each differential rate, the types of classes of land, which are subject to each differential rate and the uses of each differential rate, are set out below. 3.2 Rebates and Concessions In accordance with the provisions of Section 169 of the Local Government Act, and in keeping with agreements that bind the Council, City of Greater Bendigo grants a concession to each owner (or, where applicable, occupier) of rateable land described below, in the amount authorised by any Agreement binding Council for:  Lords Raceway, 646-650 McIvor Highway, Junortoun, Victoria  Department of Human Services Aged Person’s Units located at: 20 Mackenzie Street West, Golden Square, Victoria 15 Burrowes Street, Golden Square, Victoria 2 Jeffrey Street, Elmore, Victoria 3 Carpenter Street, Kangaroo Flat, Victoria 18 Camp Street, Kangaroo Flat, Victoria 159 Retreat Road, Spring Gully, Victoria 32 Castle Street, North Bendigo, Victoria 17-19 Kirkwood Road, Eaglehawk, Victoria 2 Virginia Street, Eaglehawk, Victoria 51 Bannister Street, North Bendigo, Victoria In accordance with the provisions of Section 169 of the Local Government Act, City of Greater Bendigo grants a rebate to each owner (or, where applicable, occupier) of rateable land, upon successful application, that meets the criteria of the City of Greater Bendigo Bushcare Incentive (Rate Rebate) Program. The rebate is 100% of the rates calculated on the site value of the protected land as declared in the required Trust for Nature conservation covenant. A Trust for Nature conservation covenant provides the highest level of protection to land. The protection of private remnant native vegetation is a high priority recognised by all levels of government, as some of the highest value native vegetation is found on private property. The benefit to the community as a whole is to preserve privately owned natural bushland containing remnant native vegetation. 3.3 Discount In accordance with the provisions of Section 168 of the Local Government Act, City of Greater Bendigo will grant a discount of 1.5% of the 2013/2014 rates and charges (exclusive of any rebates and Victorian Government Fire Services Property Levy) should full payment (including any arrears) be made on or before Monday 30 September 2013.

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Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

3.4 General Differential Rate Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the General Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is commercial/industrial, farm land or vacant residential or vacant rural residential land, which are subject to separate differential rates) to: a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act).

 

General Land is any land, which is not: Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial Land C; Farm Land or Vacant Land; and which is:  Used primarily for residential purposes; or  Less than 1500m2 in area and used primarily for indoor, cultural or recreational purposes by a body which applies its profits to promote its objects and otherwise prohibits the payment of a dividend or amount to its members. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.5 Commercial/Industrial Land A Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land A Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is general, commercial/industrial land B, commercial/industrial land C, farm land or vacant residential or vacant rural residential land which are subject to separate differential rates) to:

Greater Bendigo City Council Proposed Budget – 2013/2014

69


APPENDIX B

a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act).

 

Commercial/industrial Land A is any land, which is not: General Land; Commercial/industrial Land B; Commercial/industrial Land C; Farm Land or Vacant Land and which is used primarily for:  Sale of goods or services; or  Other commercial purposes; or  Industrial purposes; or  Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and located in the area depicted in Appendix D Annexure D-1 (excluding the Bendigo CBD as depicted in Appendix D-2). The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.6 Commercial/industrial Land B Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land B Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is general, commercial/industrial land A, commercial/industrial land C, farm land or vacant residential or vacant rural residential land which lands are subject to separate differential rates) to: a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act). 70

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

 

Commercial/industrial Land B is any land, which is not: General Land; Commercial/industrial Land A; Commercial/industrial Land C; Farm Land or Vacant Land; and which is used primarily for:  Sale of goods or services; or  Other commercial purposes; or  Industrial purposes; or  Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and not located within the area depicted in Appendix D-1 and D-2. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.7 Commercial/Industrial Land C Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land C Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is general, commercial/industrial land A, commercial/industrial land B, farm land or vacant residential or vacant rural residential land which lands are subject to separate differential rates) to: a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act).

 

Commercial/industrial Land C is any land, which is not: General Land; Commercial/industrial Land A; Commercial/industrial Land B; Farm Land or Vacant Land; and which is used primarily for:  Sale of goods or services; or  Other commercial purposes; or Greater Bendigo City Council Proposed Budget – 2013/2014

71


APPENDIX B

 Industrial purposes; or  Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and located in the area depicted in Appendix D Annexure D-2. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.8 Farm Land Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the Farm Land Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is general, commercial/industrial land A, commercial/industrial land B, commercial/industrial C or vacant residential or vacant rural residential land which lands are subject to separate differential rates) to: a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act).

 

Farm Land is any land, which is not: General Land; Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial C or Vacant Land; and which is “farm land” within the meaning of Section 2(1) of the Valuation of Land Act 1960. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year.

72

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX B

The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.9 Vacant Land Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing a Rating Strategy: A guide for Councils, the objective of the Vacant Land Differential Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal district (except rateable land which is general, commercial/industrial land A, commercial/industrial land B, commercial/industrial C or farm land which lands are subject to separate differential rates) to: a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for the local community having regard to the long term and cumulative effects of Council’s decisions (section 3C(1) of the Act); b. To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective in section 3C(2)(c) of the Act); and c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in section 3C(2)(f) of the Act).

 

Vacant Land is any land, which is not: General Land; Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial Land C or Farm Land; and which is land on which no dwelling is erected. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2013/2014 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme.

Greater Bendigo City Council Proposed Budget – 2013/2014

73


APPENDIX C

Appendix C - Capital Works Program This appendix presents a listing of the capital works projects that will be undertaken for the 2013/2014 year. The capital works projects are grouped by Strategic Goal Areas.

74

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX C

Capital Works Program For the year ending 30 June 2014 Internal Capital Works Area

Responsible

Council

Externally

Reserve

Internally

Project

Plan

Funded

Funding

Funded

Total Cost

$'000

$'000

$'000

$'000

Directorate Action Ref PLANNING FOR GROWTH Open Space

210

740

-

1,963

2,584

-

-

300

300

1.2.1

1,800

-

1,350

3,150

1.2.2

650

-

2,077

2,727

Bendigo Botanic Gardens Master Plan Implementation

PA

1.2.8

30

Canterbury Park Central Activity Area

PA

1.2.9

621

CF

1.2.4

Bendigo Art Gallery Extension

CF

Bendigo Library Redevelopment

OS

500

Pools Indoor Aquatic and Leisure Centre Detailed Design Property

Bendigo Community Theatre

CF

1.2.3

5,655

3,845

1,600

11,100

Bendigo Airport Redevelopment

CF

1.2.7

-

-

50

50

Canterbury Oval Grandstand Restoration

PD

1.2.9

-

-

320

320

PD

1.2.9

Recreation Facilities Canterbury Park Oval Grandstand - Change rooms Total Planning For Growth

-

-

8,756

4,345

600

600

8,469

21,570

LIVEABILITY Bike/Walking Paths O'Keefe Rail Trail Extension

PA

2.4.3

500

-

250

750

Shared Path Construction Back Creek (Havlin St)

PA

2.4.1

-

-

280

280

PA

2.3.9

-

200

25

225

Parks and Reserves Renewal Program

PA

2.3.3

-

-

90

90

Upgrade and Renewal of Irrigation Systems

PA

2.3.3

-

-

210

210

Bendigo Botanical Gardens Playspace

PA

2.3.7

-

-

170

170

Heathcote Playspace

PA

2.3.7

-

-

100

100

Environmental Street Trees Purchase and Planting Open Space

Playgrounds

Implementation of Playspace Strategy - Renewal/Upgrade Only

PA

2.3.7

-

-

New Playspace Development

PA

2.3.7

-

165

-

50

165

50

Long Gully Splash Park

CW

2.3.6

-

-

600

600

Peter Krenz - Air Handling System Design

CW

2.3.1

-

-

40

40

Swimming Pool Maintenance Program

CW

2.3.1

-

-

500

500

Swimming Pool Site Rehabilitation

CW

2.3.1

-

-

50

50

PD

2.4.2

-

-

70

70

BBQ Maintenance Works

PD

2.3

-

-

30

30

Replacement of Park Furniture

PA

2.3.3

-

-

150

150

PA

2.3

210

-

-

210

Pools

Property Building Works - Audit and Compliance Public Furniture

Public Toilets Bushfire Memorial Stage 2

Greater Bendigo City Council Proposed Budget – 2013/2014

75


APPENDIX C

Internal Capital Works Area Responsible

Council

Externally

Reserve

Internally

Project

Plan

Funded

Funding

Funded

Total Cost

$'000

$'000

$'000

$'000

Directorate Action Ref LIVEABILITY (continued) Recreation Facilities

-

150

150

-

20

24

-

23

23

-

30

60

138

-

292

429

-

-

200

200

Barrack Reserve Stadium Design Documentation

CW

2.3.8

Bendigo Table Tennis Stadium - Storage Shed

CW

2.3

Building Works - Audit and Compliance

CW

2.3.3

Dower Park - Design Social Room

CW

2.3.2

30

Epsom Huntly Recreation Reserve - Lighting Pitch 5

CW

2.3.2

Epsom Huntly Recreation Reserve - Safety Works

PA

2.3.2

Goal Netting at Wade Street Recreation Reserve

CW

2.3.3

Lockwood South Tennis Resurfacing

CW

2.3.3

LUBAC - Upgrade Works

CW PA CW

2.3.3

-

PA

2.3.2

LUBAC Hammer Throw Cage North Bendigo Netball Court Resurfacing QEO - Audio System

4 -

-

40

60

-

20

-

150

150

2.3.2

-

-

10

10

2.3.2

-

-

45

45

-

60

60

-

40

50

10

QEO Grandstand Brick Restoration

PD

2.3.2

-

-

35

35

Reserve Lighting Upgrades

CW

2.3.3

-

-

70

70

Small Town Recreation Reserves - Various Works

CW

2.3.2

-

PA

2.3.2

South Bendigo Bowling Club - Lighting upgrade

-

55

55

5

-

55

60

Strathdale Park Cricket Wickets

CW

2.3.3

3

-

37

40

Strathfieldsaye Dodgers Facilities

CW

2.3.3

52

-

28

80

Upgrade existing Coaches Boxes - Various

CW

2.3.2

-

25

25

PA

2.3.2

-

75

85

CW

2.3.2

Upgrade existing scoreboards to LED Upgrade Regional & State Rec Facilities - Various Total Liveability

10 -

-

982

365

-

-

30

30

4,084

5,431

20

20

20

20

PRODUCTIVITY Property Bendigo Airport Terminal Building - Stage 2 & 3

CF

3.2

Total Productivity

-

-

SUSTAINABILITY Bridges PA

4.1.1

319

-

426

745

Bendigo Creche (Park Rd) Improvements

CW

4.1.1

-

-

27

27

Bendigo Preschool (Myrtle Street) - Painting

CW

4.1.1

-

-

7

7

PA

4.1.1

-

-

16

16

Eaglehawk Preschool - Covered Outdoor Area

CW

4.1.1

11

-

3

14

Eaglehawk Preschool - Cubby and Storage Shed

CW

4.1.1

6

PA

4.1.1

Bridge Renewal Program (see attached list) Child Services

Bendigo Preschool Landscape Works

Eaglehawk Preschool Landscape Works

-

5

11

-

-

8

8

Epsom M&CH Centre - Office Accommodation

CW

4.1.1

-

-

16

16

Havilah Road Preschool - Accessible Ramp

CW

4.1.1

-

-

20

20

Havilah Road Preschool - Covered Outdoor Area

CW

4.1.1

-

6

26

Helen Jesson Childcare Centre - Change Table

CW

4.1.1

-

-

1

1

Helen Jesson Childcare Centre - Various Works

CW

4.1.1

-

-

2

2

Preschool and Childcare Centre Playgrounds

CW

4.1.1

-

-

100

100

Preschool Various - Painting

CW

4.1.1

-

-

12

12

PA

4.1.1

-

-

32

32

CW

4.1.1

-

-

60

60

Strathdale Childcare Centre Landscape Works Strathfieldsaye Early Learning Centre

76

20

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX C

Internal Capital Works Area

Responsible

Council

Externally

Reserve

Internally

Project

Plan

Funded

Funding

Funded

Total Cost

$'000

$'000

$'000

$'000

Directorate Action Ref SUSTAINABILITY (continued) Drainage Development Related Drainage

PA

4.1.3

-

434

139

573

Drainage Program (see attached list)

PA

4.1.3

-

273

4,162

4,435

PA

4.3.3

150

-

Environmental Community Energy Efficiency Program

-

150

Footpaths Footpath Access Various

PA

4.1.1

-

-

20

20

Footpath Program (see attached list)

PA

4.1.1

-

-

915

915

Footpath Symonds St Golden Square

PA

4.1.1

-

-

184

184

OS

4.1.1

-

-

40

40

Barkly Street, Bendigo

PA

4.1.1

-

-

28

28

Minor Extensions & Renewals Various

PA

4.1.1

-

-

50

50

Various Replacements

PA

4.1.1

-

-

100

100

Heavy Vehicle Safety and Productivity Program

PA

4.1.1

111

-

28

139

Livestock Exchange Pavement Renewal

PA

4.1.1

-

-

50

50

PA

4.1

-

-

160

160

Furniture & Equipment Renewals Furniture and Office Equipment Kerb & Channel

Livestock Exchange

Parking Control Parking Machine Renewal Plant & Equipment Additional Plant Purchases

PA

4.1.1

-

-

277

277

Art Gallery Vertical Lifter

CF

4.1.1

-

-

18

18

Plant Replacement Program

PA

4.1.1

330

-

2,258

2,588

Renewals Plant and Equipment

PA

4.1.1

600

-

668

1,268

PA

4.1.1

150

-

150

300

Property Abel Street Poppet Head Structural Works Art Gallery - Roof Repairs

PD

4.1.1

-

-

80

80

Asbestos

PD

4.1.1

-

-

80

80

Bendigo Exhibition Centre Fire Sprinklers

PD

4.1.1

-

-

156

156

Bendigo RSL Upgrade

PD

4.1.1

-

20

40

20

Bendigo Town Hall External Render

PD

4.1.1

-

-

15

15

Bendigo Town Hall Roof Repairs

PD

4.1.1

-

-

50

50

Bendigo Trust Upgrade Improvement Works

PA

4.1.1

-

-

450

450

Boardwalk Cafe - Structural

PD

4.1.1

-

-

25

25

Building Security and Access Upgrade

PD

4.1.5

-

-

80

80

California Gully Mechanics Institute - CMP

PD

4.1.1

-

-

15

15

Capital Theatre - Chiller Replacement

PD

4.1.1

-

-

150

150

Deferred Works Planning Budget

PD

4.1.1

-

-

10

10

Eaglehawk Town Hall Upgrade Works

PD

4.1.1

-

-

290

290

Essential Services

PD

4.1.1

-

-

70

70

Heritage Various

PD

4.1.1

-

-

50

50

Investigate Structural Cracking

PD

4.1.1

-

-

50

50

JB Osborne Capital Theatre Upgrade

PD

4.1.1

125

-

125

250

Kitchen & Kiosk Upgrades

PD

4.1.1

-

-

40

40

Greater Bendigo City Council Proposed Budget – 2013/2014

77


APPENDIX C

Internal Capital Works Area

Responsible

Council

Externally

Reserve

Internally

Project

Plan

Funded

Funding

Funded

Total Cost

$'000

$'000

$'000

$'000

Directorate Action Ref SUSTAINABILITY (continued) Property (continued) Multi Storey Carpark - Lift Upgrade

PD

4.1.1

North Bendigo Kindergarten Carport

PD

4.1.1

Office Accommodation

PD

4.1.1

7

-

140

-

-

140 7

-

-

75

75

QEO Cottage Restoration Works

PD

4.1.1

-

-

25

25

Removal of Surplus Assets

PD

4.1.1

-

-

45

45

Thermal Imaging

PD

4.1.1

-

-

20

20

Unforseen Property Works

PD

4.1.1

-

-

96

96

Visitor Information Centre

PD

4.1.1

-

-

80

80

Bus Shelters - Urban & Rural

PA

4.1.1

-

-

100

100

Public Furniture and Fixtures

PA

4.1.1

-

-

45

45

Public Lighting (Streets & Parks) including Green

PA

4.1.1

-

-

200

200

Streetlight Upgrade

PA

4.1.1

607

-

380

987

Hargreaves Mall - Toilet Structure

PD

4.1.1

-

-

8

8

Kangaroo Flat Lions Park Toilet Upgrade

PD

4.1.1

-

-

60

60

Public Toilets Various

PA

4.1.1

-

-

30

30

Public Furniture

Public Toilets

Roads Intersection Realignment High St Calder Hwy Marong

PA

4.1.1

-

-

100

100

Putting Locals First Program

PD

4.1.1

500

-

-

500

Road Renewals Sealed Pavement (see attached list)

PA

4.1.1

830

-

4,276

5,106

Road Renewals Sealed Roads (see attached list)

PA

4.1.1

1,521

-

4,479

6,000

Road Renewals Unsealed Roads (see attached list)

PA

4.1.2

-

-

2,500

2,500

Road Works East Bendigo Link Rd Andrews St

PA

4.1.1

-

-

406

406

Roundabout Alder & Aspinall St

PA

4.1.1

418

-

-

418

Roundabout Carolyn Way / Lower Beckhams

PA

4.1.1

273

-

-

273

Various Traffic Intersection Works

PA

4.1.1

-

-

50

50

Building Signage - Various

PD

4.1.1

-

-

10

10

Civic Signage - Other

PA

4.1.1

-

-

45

45

PA

4.1.1

-

-

100

100

Signage

Statues & Monuments Alexandra Fountain Refurbishment of Fountains and Water Features

PA

4.1.1

-

-

50

50

Renewal of Public Statues and Monuments

PA

4.1.1

-

-

10

10

Upgrade and Renewal of Traffic Devices Landscapes

PA

4.1.1

-

-

150

150

PA

4.1.1

120

50

-

170

6,119

757

25,220

Waste Management Projects Mobile Bin Purchases Total Sustainability

78

32,096

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX C

Internal Capital Works Area

Responsible

Council

Externally

Reserve

Internally

Project

Plan

Funded

Funding

Funded

Total Cost

$'000

$'000

$'000

$'000

Directorate Action Ref GOOD GOVERNANCE & DECISION MAKING Information Management OS

5.4

-

-

38

38

Corporate Planning, Performance Monitoring & Report

OS

5.4.2

-

-

95

95

Grants Management Software

OS

5.4

-

-

50

50

Conquest Asset Management Upgrade

Microsoft Office renewals

OS

5.4

-

-

50

50

Microsoft Server Licences

OS

5.4

-

-

64

64

Parking Officer PDA's

OS

5.4

-

-

25

25

Replacement Personal Computers

OS

5.4

-

-

250

250

Technology One Licensing

OS

5.4

-

-

200

200

Ticketing, Venue & Customer Relation Software

OS

5.4

-

-

20

20

Sale of Various CoGB Properties

PD

5.2.1

1,350

-

-

-

Sale of Various CoGB Properties (trf to reserve)

PD

5.2.1

-

(1,350)

-

-

1,350

(1,350)

Property

Total Good Governance & Decision Making TOTAL CAPITAL AND MAJOR WORKS 2013/2014

792

792

38,586

59,909

17,206

4,117

6,052

3,845

2,657

12,554

11,154

272

35,929

47,355

Less Projects accounted for as operating items but managed as part of the Capital Works Program TOTAL CAPITAL WORKS 2013/2014

Legend - Responsible Director CF City Futures CW Community Wellbeing OS Organisation Support PA Presentation & Assets PD Planning & Development

Greater Bendigo City Council Proposed Budget – 2013/2014

79


APPENDIX C

Road

Locality

Extent

Externally

Internally

Funded

Funded

Total Cost

Bridge Works Airstrip Road

WOODVALE

West of Three Chain Road

Heathcote East Baynton Road

ARGYLE

Smiths Bridge

Various

VARIOUS

Various

Total Bridge Works

319,000 319,000

40,000

40,000

336,000

655,000

50,000

50,000

426,000

745,000

Drainage Works Caldwell Street

HEATHCOTE

Mollison Street to Shakespere Street through 92 Caldwell Street

-

74,000

74,000

Carpenter Street / Carolin Street

QUARRY HILL

115 Carpenter St

-

70,000

70,000

Greenwood Drive / Inorom Place

KENNINGTON

Greenwood Drive to Inorom Place

-

184,000

184,000

Harley Street

STRATHDALE

Harley Street to Sovereign Court

-

150,000

150,000

High Street Service Road

KANGAROO FLAT

Lansell Plaza Outfall Drain from Service Road to Bendigo Creek

-

50,000

50,000

Highett Street

EPSOM

3, 9, 15, 29, 21, 32 Highett Street

-

52,000

52,000

Howard Street

EPSOM

Rear No 25/27 Howard Street

-

70,000

70,000

Kneebone Street

EAGLEHAWK

Bright St down through 12 Kneebone

-

35,000

35,000

Lansell Terrace

EAST BENDIGO

101 Lansell Terrace

-

13,500

13,500

Lockwood Road

KANGAROO FLAT

High Street to Bendigo Creek

-

112,000

112,000

Myrtle Road

ASCOT

From Elandra Drive to Ironstone Road

-

23,000

23,000

Napier Street

BENDIGO

From railway reserve to Lake Weeroona via road reserve beside vet

-

418,500

418,500

Needlewood Drive

KANGAROO FLAT

Road Reserve opposite 10-14 Needlewood Drive

-

50,000

50,000

Olympic Pde / Austin Court

KANGAROO FLAT

In reserve

-

24,000

24,000

Osborne Street / Friswell Avenue

FLORA HILL

Crown land west of Wirth Street to open drain west of Osborne Street

-

525,000

525,000

Panton Street

GOLDEN SQUARE

Intersection of Panton & Cedar St

-

390,000

390,000

Pratts Park Road / Strickland Road

STRATHDALE

Northmoor Drive to Strickland Road

-

148,000

148,000

Rathbones Lane 16

MAIDEN GULLY

Rathbones Lane West of Yvonne Court

502,000

775,000

Rosalind Street

BENDIGO

Bancroft Street to Waterloo Street

-

422,500

422,500

Rowan and Forest Streets

BENDIGO

View St to Barnard St

-

310,000

310,000

80

273,000

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX C

Road

Locality

Extent

Externally

Internally

Funded

Funded

Total Cost

Drainage Works (continued) Victoria Lane

EAGLEHAWK

South of railway line

-

80,000

80,000

Victoria Street

EAGLEHAWK

Church Street to 128 Victoria Street

-

248,000

248,000

Various

VARIOUS

Various

-

102,000

102,000

View Street

BENDIGO

Intersection of View and Rosalind Sts

-

60,000

60,000

View Street

BENDIGO

Within QEO Barnard Street to Rowan Street

-

10,000

10,000

Wingoon Drive

CALIFORNIA GULLY At the cul de sac of Wingoon drive through to the creek.

-

38,500

38,500

4,162,000

4,435,000

Total Drainage Works

273,000

Footpath Works Barkly Terrace West Carpenter Street

BENDIGO

Replace asphalt footpath

-

60,000

60,000

QUARRY HILL

Replace asphalt footpath with concrete

-

79,500

79,500

QUARRY HILL

Replace asphalt footpath with concrete

-

68,000

68,000

High Street

BENDIGO

South side CBD type footpath

-

100,500

100,500

Hodgkinson Street

KENNINGTON

Replace asphalt footpath with concrete

-

29,000

29,000

McCrae Street

BENDIGO

Replace asphalt paving with CBD asphalt bluestone pavers

-

108,000

108,000

McCrae Street

BENDIGO

Footpath replacement plus relay gutter and flank reconstruction

-

166,000

166,000

Mundy Street

BENDIGO

Replace asphalt paving with CBD asphalt bluestone pavers & relay kerb

-

117,000

117,000

Sternberg Street East

KENNINGTON

Replace asphalt footpath with concrete

-

60,000

60,000

Sternberg Street West

KENNINGTON

Replace asphalt footpath with concrete

-

44,000

44,000

Various

VARIOUS

Minor Extensions / footpath renewals

-

83,000

83,000

-

915,000

915,000

Gladstone Street

Total Footpath Works

Greater Bendigo City Council Proposed Budget – 2013/2014

81


APPENDIX C

Road

Locality

Extent

Externally

Internally

Funded

Funded

Total Cost

Road Works Allingham Street

GOLDEN SQUARE

South of Hattam Street

-

100,000

100,000

Furness Street

KANGAROO FLAT

Furness Street

-

383,000

383,000

Lansell Street

KANGAROO FLAT

High Street to Benjamin Street

-

266,000

266,000

Mitchell Street

BENDIGO

Pall Mall to Wills Street

3,000,000

3,830,000

Myrtle Road

ASCOT

Howard Street to Ombana Crt

-

215,000

215,000

Station Street

EPSOM

Ironstone Road

-

312,000

312,000

Various

VARIOUS

Final Seals

-

200,000

200,000

Various

VARIOUS

Minor Extensions / widening's / renewals in conjunction with Developments

-

100,000

100,000

VARIOUS

Major patching for resurfacing

-

2,000,000

2,000,000

VARIOUS

Reseals and asphalt resurfacing

-

3,700,000

3,700,000

VARIOUS

Gravel Resheeting

2,000,000

2,000,000

VARIOUS

Gravel sheeting of shoulders

500,000

500,000

12,776,000

13,606,000

Various Roads Various Roads Various Various Total Road Works

82

830,000

830,000

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX D

Appendix D - Maps D – 1: Business Land A D – 2: Business Land C Maps attached.

Greater Bendigo City Council Proposed Budget – 2013/2014

83


APPENDIX D

D–1

COMMERCIAL/INDUSTRIAL LAND A RATE

Commercial/Industrial Land A

84

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX D D–2

COMMERCIAL/INDUSTRIAL LAND C RATE

Commercial/Industrial Land C

Greater Bendigo City Council Proposed Budget – 2013/2014

85


APPENDIX E

Appendix E - Glossary of Terms Term Accounting Standards Activities and initiatives

Annual budget Annual operating budget (Budgeted income statement) Annual report Annual reporting requirements Asset renewal

Asset upgrade

Asset expansion

Borrowing strategy Budgeted balance sheet (Budgeted balance sheet)

Budgeted cash position (Budgeted cash flow statement)

86

Definition Accounting standards are issued from time to by the professional accounting bodies and are applicable to the preparation of general purpose financial reports. Section 127 of the Act requires a budget to contain a description of the activities and initiatives to be funded by the budget, along with a statement as to how they will contribute to the achievement of the Council’s strategic objectives as specified in the Council Plan. The activities of Council are those services which it undertakes to meet the needs of the community as reflected in the Council Plan. They tend to be ongoing in nature and have internal and external customers. Initiatives are tasks or actions that are once-off in nature and lead to improvements in services or service levels. This document is framed within the Council’s strategic resource plan and sets out the short term goals and objectives as part of the overall strategic planning framework. The budgeted income statement shows the expected operating result in the forthcoming year with a distinction made between revenue received for operating purposes and revenue received for capital purposes. The annual report prepared by a Council under section 131 of the Act. Annual reporting requirements include the financial reporting requirements of the Act, Accounting Standards and other mandatory professional reporting requirements. Expenditure on an existing asset, which returns the service potential or the life of the asset, up to, that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time. Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the asset base. Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. Expansion expenditure is discretional which increases future operating and maintenance costs because it increases council’s in the asset base, but may be associated with additional revenue from the new user group. A borrowing strategy is the process by which the Council’s current external funding requirements can be identified, existing funding arrangements managed and future requirements monitored. The budgeted balance sheet shows the expected net current asset, net non-current asset and net asset positions in the forthcoming year compared to the forecast actual in the current year. The budgeted balance sheet should be prepared in accordance with the requirements of AASB 101 - Presentation of Financial Statements. The budgeted cash flow statement shows the expected net cash inflows and outflows in the forthcoming year in the form of reconciliation between opening and closing balances of total cash and investments for the year. Comparison is made to the current year’s expected inflows and outflows. The budgeted cash flow statement should be prepared in accordance with the requirements of AASB 107 Cash Flow Statements.

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX E Term Budgeted income statement

Budget preparation requirement Capital contributions Capital expenditure

Capital works budget (Budgeted capital works statement) Capital works program Carry forward capital works Carry forward surpluses Council plan Community satisfaction survey Current year rate increase (Rating strategy) Differential rates Discretionary reserves External funding sources (Analysis of capital budget) External influences in the preparation of a budget Financial sustainability Financing activities Infrastructure

Definition The budgeted income statement shows the expected operating result in the forthcoming year compared to the forecast actual result in the current year. The budgeted income statement should be prepared in accordance with the requirements of AASB101 Presentation of Financial Statements. Under the Act, a Council is required to prepare and adopt an annual budget by 31 August each year. Capital contributions include assets contributed by developers, government grants and contributions received for capital purposes and contributions from developers such as open space. Capital expenditure is relatively large (material) expenditure that produces economic benefits expected to last for more than 12 months. A pre-determined ‘threshold’ may be used which indicates the level of expenditure deemed to be material in accordance with Council’s policy. Capital expenditure includes renewal, expansion and upgrade. Where capital projects involve a combination of renewal, expansion and upgrade expenditures, the total project cost needs to be allocated accordingly. The capital works budget shows the expected internal and external funding for capital works program and the total proposed capital works program for the forthcoming year with a comparison with forecast actual for the current year. Capital works projects that will be undertaken during the 2012/2013 year. Carry forward capital works are those that that are incomplete in the current budget year due to unavoidable delays and will be completed in the following budget year. Inappropriately recognised by many Councils at the end of the current year as the critical starting point in the development of the budget for the following year. This document sets out the medium term goals and objectives as part of the overall strategic planning framework and strategic resource plan and is prepared under section 125 of the Act. A survey conducted on an annual basis by every Council. A statement included in the budget quantifying the amount of the rate change for the forthcoming year and disclosing any significant factors influencing the rate change. When a Council intends to declare a differential rate (eg business and residential), information prescribed by the Act under section 161 must be disclosed in the Council budget. Discretionary reserves are funds earmarked by Council for various purposes. Councils can by resolution change the purpose of these reserves. External funding sources relate to capital grants or contributions, which will be received from parties external to the Council. It also includes the proceeds of assets sold to fund the capital works program. Matters arising from third party actions over which Council has little or no control, eg. change in legislation. A key outcome of the strategic resource plan. Longer term planning is essential in ensuring that a Council remains financially sustainable in the long term. Financing activities means those activities which relate to changing the size and composition of the financial structure of the entity, including equity, and borrowings not falling within the definition of cash. Physical assets of the entity or of another entity that contribute to meeting the public’s need for access to major economic and social facilities and services.

Greater Bendigo City Council Proposed Budget – 2013/2014

87


APPENDIX E

Term Infrastructure strategy

Internal funding sources (Analysis of capital budget) Internal influences in the preparation of a budget Investing activities

Key assumptions

Key budget outcomes Key strategic activities

Legislative framework Local Government (Finance and Reporting) Regulations 2004

New assets

Non-financial resources

Operating activities Operating expenditure

88

Definition An infrastructure strategy is the process by which current infrastructure and ongoing maintenance requirements can be identified, budgeted capital works implemented and future developments monitored. The key objective of an infrastructure strategy is to maintain or preserve Council’s existing assets at desired condition levels. If sufficient funds are not allocated to asset preservation then Council’s investment in those assets will reduce, along with the capacity to deliver services to the community. Internal sources relate to cash and investments held in reserves or which are uncommitted and cash that will be generated from the operations of Council during the budget year. The latter should equate to the cash inflows from operating activities less capital revenue. Matters arising from Council actions over which there is some element of control (eg approval of unbudgeted capital expenditure). Investing activities means those activities which relate to acquisition and disposal of non-current assets, including property, plant and equipment and other productive assets, and investments not falling within the definition of cash. When preparing a budgeted balance sheet of financial position, key assumptions upon which the statement has been based should be disclosed in the budget to assist the reader when comparing movements in assets, liabilities and equity between budget years. The key activities and initiatives that will be achieved in line with the Council Plan. Section 127 of the Act requires the budget to separately identify the Key Strategic Activities (KSAs) to be undertaken during the financial year and performance targets and measures in relation to each KSAs. Section 132 of the Act states that the KSAs and performance targets and measures specified under Section 127 of the Act must be included in the Performance Statement in the Annual Report and be subject to audit. KSAs are those significant activities and/or initiatives which will directly contribute to the achievement of the Council Plan during the current year. KSA’s can be major new initiatives over and above normal service delivery or a combination of activities and initiatives which have a major focus for the budget year and lead to significant outcomes for the organisation and community. The Act, Regulations and other laws and statutes which set a Council’s governance and reporting requirements. The objective of these Regulations, made under section 243 of the local Government Act 1989 and which came into operation on 20 April 2004, is to prescribe for the purposes of the Local Government Act 1989: (a) The manner in which the standard statements and financial statements of a Council are to be prepared and their contents (b) The information to be included in a Council Plan, budget, revised budget and annual report (c) Other matters required to be prescribed under Parts 6 and 7 of the Act. New assets do not have any element of expansion or upgrade of existing assets. New capital expenditure may or may not result in additional revenue for Council and will result in an additional burden for future operation, maintenance and capital renewal. Resources of a non-financial nature (such as human resources, information systems and processes, asset management systems) which are consumed by a Council in the achievement of its strategic resource plan goals. Operating activities means those activities that relate to the provision of goods and services. Operating expenditure is defined as consumptions or losses of future

Greater Bendigo City Council Proposed Budget - 2013/2014


APPENDIX E Term

Operating performance (Impact of current year on 2012/2013 budget Operating revenue

Performance statement

Prudential ratios and thresholds (Borrowing strategy) Rate structure (Rating strategy) Rating strategy Regulations Restricted funds and discretionary reserves Revised budget Road Management Act Service delivery (in strategic resource plan) Standard statements

Statutory reserves Strategic planning framework Strategic resource plan (SRP)

Definition economic benefits, in the form of reductions in assets or increases in liabilities; and that result in a decrease in equity during the reporting period. This statement shows the expected operating result as compared to the budget result in the current year separating operating and capital components of revenue and expenditure. Operating revenue is defined as inflows or other enhancements or savings in outflows of future economic benefits in the form of increases in assets or reductions in liabilities and that result in an increase in equity during the reporting period. Required by section 132 of the Act, a performance statement must be included in the annual report of a Council and include: (a) The key strategic activities and performance measures specified in the budget under section 127 for that financial year (b) The actual results achieved for that financial year having regard to those performance targets and measures. Used by the Department of Planning and Community Development in assessing a Council’s borrowing capacity as part of the annual Australian Loan Council borrowing allocation. Site value (SV), capital improved value (CIV) or net annual value (NAV) are the main bases upon which rates will be levied. These should be detailed in the budget statement. A rating strategy is the process by which the Council’s rate structure is established and how the quantum of rate change has been determined, taking into consideration longer term philosophy issues and framework. Local Government (Finance and Reporting) Regulations 2004. Monies set aside for statutory and discretionary purposes. Section 128 of the Act permits a Council to prepare a revised budget if circumstances arise which cause a material change in the budget and which affects the financial operations and position of the Council. The purpose of this Act which operates from 1 July 2004 is to reform the law relating to road management in Victoria and to make relating amendments to certain Acts, including the local Government Act 1989. A key outcome of a strategic resource plan, service delivery must be linked with performance strategies in order to assess the adequacy of service delivery and the impact on long term budget preparation. Prepared under section(s) 126(2)(a), 127(2)(a) and / or 131(1)(b) of the Act, standard statements are required in the: -Strategic resource plan -Budget -Annual report While the same set of statements (detailed below) is required in each of these reports, they have different focuses due to the differing purposes of each report. The formats of these statements therefore need to reflect these different focuses being strategic, management and reporting, while remaining comparable. The standard statements are the: -Standard Income Statement -Standard Balance Sheet -Standard Cash Flow Statement -Standard Capital Works Statement Statutory reserves are funds set aside for specified statutory purposes in accordance with various legislative and contractual requirements. These reserves are not available for other purposes. A “community owned” document or process which identifies the long term needs and aspirations of the Council, and the medium and short term goals and objectives which are framed within the long term plan. The Act requires that a Council plan should include a strategic resource

Greater Bendigo City Council Proposed Budget – 2013/2014

89


APPENDIX E

Term

The Act Underlying result

Unrestricted cash and investments Valuation of Land Act 1960

90

Definition plan that includes financial and non-financial resources including human resources. The strategic resource plan outlines the resources required to achieve the Council plan. As a minimum a strategic resource plan must include in respect of at least the next four years: (a) Standard statements describing the required financial resources (b) Statements describing the required non-financial resources including human resources. Such planning is essential in ensuring that an organisation remains financially sustainable in the long term. The annual budget should be consistent with the first projected year of a strategic resource plan. Local Government Act 1989 The underlying result is a measure of financial sustainability of the Council which can be masked in the net surplus (deficit) by nonrecurring or capital related items. It is equal to the net surplus (deficit) adjusted for capital grants, non-monetary contributions and other onceoff adjustments. This definition differs from the underlying surplus as determined by the Victorian Auditor General in his report “Local Government: Results of the 2009-10 Audits� issued in February 2011 which includes capital contributions in the calculation. In this Guide, capital grants are excluded from the definition on the basis that they are recorded as income but are reflected in assets capitalised on Council's balance sheet and depreciated in later years. Unrestricted cash and investments represents funds that are free of all specific Council commitments and are available to meet daily cash flow requirements and unexpected short term needs. The Valuation of Land Act 1960 requires a Council to revalue all rateable properties every two years.

Greater Bendigo City Council Proposed Budget - 2013/2014


Proposed Budget 2013 2014