Georges River Council Resourcing Strategy 2020/21

Resourcing Strategy 2020/21

Workforce Management Plan Digital Resource Management Plan Asset Management Plan Long Term Financial Plan

www.georgesriver.nsw.gov.au

2

Georges River Council // Resourcing Strategy 2020/21

Statement of acknowledgement of the Biddegal People Georges River Council acknowledges that the Biddegal people of the Eora Nation are the traditional inhabitants and custodians of all land and water in which the Georges River region is situated.

Council recognizes Aboriginal people as an integral part of the Georges River community and highly values their social and cultural contributions.

Georges River Council is committed to showing respect for Aboriginal people as Australia’s First Peoples. Council has adopted the practice of acknowledging the Traditional custodians of Country at events, ceremonies, meetings and functions.

3

Council values and statements Community Vision Statement In 2020, the Georges River area is known as a clean, green and welcoming place with beautiful and accessible bushland and waterways.

It offers a diversity of active, connected places and heritage areas that we plan for in collaboration with our community.

People attend many events and activities and can access a choice of housing and a mix of jobs and economic opportunities near where they live.

Vision A progressive, environmentally and culturally rich community enjoying a unique lifestyle.

Mission A leading, people-focused organisation delivering outstanding results for our community and city.

Values United

We will work collaboratively as one team with common purpose and respect

Professional

We will act with integrity and seek opportunities to learn and grow

Honest

We will be open and truthful with each other and our community

Accountable

We will own our decisions and actions as we strive for excellence

4

Georges River Council // Resourcing Strategy 2020/21

5

Contents

Statement of acknowledgement of the Biddegal People..............3 Council values and statements.......................................................4 Community Vision Statement.............................................................4 Vision..................................................................................................4 Mission...............................................................................................4 Our values..........................................................................................4 Introduction.......................................................................................8 Our 6 Pillars......................................................................................8 Background – Legislative Framework............................................9 Workforce Management Plan..........................................................12 What is the Workforce Management Plan?........................................14 Key Themes of Council’s Workforce Management Plan....................15 Where are we now?...........................................................................16 Where are we going?.........................................................................26 How will we get there?.......................................................................28 Implementation, monitoring and review..............................................31 Workforce Management Action Plan..................................................32 Digital Resource Management Plan...............................................37 What is the Digital Resource Management Plan?..............................38 Key themes of Council’s Digital Resource Management Plan...........39 Where are we now?...........................................................................41 Where are we going?.........................................................................44 How will we get there?.......................................................................50

6

Georges River Council // Resourcing Strategy 2020/21

Implementation, monitoring and review..............................................52 Digital Resource Management Action Plan........................................53 Asset Management Plan..................................................................56 What is the Asset Management Plan?...............................................58 Key themes of Council’s Asset Management Plan.............................59 Where are we now?...........................................................................60 Where do we want to be?...................................................................67 Implementation, Monitoring and Review............................................70 How will we get there?.......................................................................74 Asset Management Improvement Plan..............................................76 Long Term Financial Plan................................................................79 Executive Summary...........................................................................80 Financial Governance Principles........................................................81 Financial Sustainability Challenges....................................................82 Planning for our Future – Changes to Rates......................................83 Financial Models Overview................................................................84 Detailed Financial Models..................................................................86

7

Introduction The Resourcing Strategy forecasts Council’s ability to deliver assets and services to the community over the next 10 years in line with the adopted Community Strategic Plan 2018-2028.

8

Georges River Council // Resourcing Strategy 2020/21

Our six pillars 1

A protected environment and green open spaces

2

Quality, well planned development

3

Active and accessible places and spaces

4

A diverse and productive economy

5

A harmonious and proud community with strong social services and infrastructure

6

Leadership and transparency

Background - Legislative Framework Like all Councils, Georges River Council operates under the Local Government Act 1993. The Act requires us to produce a suite of documents as part of an Integrated Planning and Reporting Framework.

The Framework brings together Council's various plans, giving both Council and the community a clear understanding of how each of the plans interact. This process maximises Council efforts to strategically and holistically plan for the future.

This Resourcing Strategy has been developed alongside our first-ever Community Strategic Plan, which is based on extensive community engagement during 2017.

The Community Strategic Plan 2018-2028 contains the community’s priorities and aspirations as well as the strategies for achieving these goals.

Our Delivery Program sets out the proposed actions to achieve the goals and strategies in the Community Strategic Plan. Normally, the Delivery Program runs for four years; as a recently merged Council, our first Delivery Program is for three years to align with the local government election cycle. We are now commencing the third year of this program.

We have also prepared a one-year Operational Plan to show the specific actions and budgets that we propose for 2020/21, consistent with the Delivery Program.

COMMUNITY STRATEGIC PLAN 10 + YEARS

COMMUNITY ENGAGEMENT

DELIVERY PROGRAM 3 YEARS

OPERATIONAL PLAN 1 YEAR

RESOURCING STRATEGY Contains the Workforce Management Plan, Digital Resource Management Plan, Asset Management Plan and Long Term Financial Plan

PERPETUAL MONITORING AND REVIEW

ANNUAL REPORT 9

Resourcing Strategy Workforce Management Plan

Long Term Financial Plan

The Workforce Management Plan identifies the people requirements, including skills and employment practices, needed to implement our Delivery Program which is informed by the Community Strategic Plan.

The plan integrates principles of human resource management, workforce planning and capability building. It outlines how we will develop and maintain a high-calibre employee base that meets current and future organisational and community needs.

The Finance Strategy and Long Term Financial Plan (LTFP) are key components of Georges River Council (GRC) Resourcing Strategy.

Digital Resource Management Plan The Digital Resource Management Plan outlines Council’s commitment to utilising the best digital framework possible to enable responsive and timely services and information. It aligns with Council’s corporate planning and reporting framework. Its four year lifespan will ensure that our commitment to digital efficiency and evolution continues throughout the life of the current Resourcing Strategy. It will also support new priorities as they are identified through a review of the Community Strategic Plan and Delivery Program in 2020/2021. This Plan will evolve as Council continues its journey from transition to transformation and innovation.

Asset Management Plan The Asset Management Plan sets out the broad framework for undertaking structured and coordinated management of Council’s infrastructure assets. It outlines key principles that underpin our approach to providing the assets that are essential to our community. The Strategy highlights the long-term funding challenges Council must address to meet the commitments outlined in the Community Strategic Plan and deliver the level of service desired by the community over the next 10 years.

10

Georges River Council // Resourcing Strategy 2020/21

The Resourcing Strategy details the overall plan on how Council will resource its planned activities over the next decade through the use of its money, people and assets, to meet the community’s needs and desires.

The LTFP of Council presents a financial projection of the longer term outlook of its operations. The LTFP takes into account known and projected events over the next 10 years and compiles the best estimates of its operating results and financial position.

These projections form a roadmap of the operations and give Council an opportunity to: • Assess different courses of corrective action and quantify the potential outcomes • Ensure sustainability through positive net results • Structure the operations, based on affordability and financial sustainability.

11

12

Georges River Council // Workforce Management Plan 2020/21

Workforce Management Plan 2020/21

13

What is the Workforce Management Plan?

Every council in NSW operates within the Office of Local Government’s Integrated Planning and Reporting (IP&R) Framework. The Framework requires councils to deliver a suite of strategic documents that support a holistic approach to planning for the future, including a long-term Community Strategic Plan, a four-year Delivery Program and annual Operational Plan (and budget). These are informed by a long-term Resourcing Strategy that consists of: • Workforce Plan • Digital Resource Management Plan • Asset Management Plan • Long-Term Financial Plan.

In line with these requirements, we have developed this Workforce Plan as a key component of the broader Resourcing Strategy.

14

Georges River Council // Workforce Management Plan 2020/21

This document integrates principles of human resource management, workforce planning and capability building.

It outlines how we will develop and maintain a highcalibre employee base that meets current and future organisational and community needs.

This Plan identifies objectives and strategies that focus on staff retention, skills and capability development.

They cultivate strong leadership and position Council as an employer of choice.

This Plan includes ten themes that followed consultation with managers, staff, unions, local government and industry bodies; analysis of our current workforce demographic; and an understanding of challenges and future requirements to support our goal to be an employer of choice.

Key themes of Council’s Workforce Management Plan 1. Capability mobility 2. Continuous learning 3. Flexible resource allocation 4. Information management 5. Iterative business improvement processes 6. Leadership development 7. Open physical and virtual environment

Actions to support these themes are outlined in subsequent sections.

Council’s People and Culture Department is responsible for implementing the actions. The Plan will evolve as the community and the organisation reviews and evaluates its needs. At a minimum, it will be reviewed every year alongside our Operational Plan to ensure its objectives reflect the changing workforce, community and Council priorities.

8. Partnerships and networking 9. Performance centric 10. Technology, systems and tools

15

Where are we now?

About our organisation

Office of the General Manager

Community and Culture Directorate

Business and Corporate Services Directorate

Manager Office of the General Manager

Director Community and Culture

Director Business and Corporate Services

Chief Audit Executive

Manager Customer Experience and Events

Acting Executive Manager People and Culture

Manager Community and Cultural Development

Chief Information Officer

Acting Manager Library Services

Chief Financial Officer

Manager Children’s Services

Manager Governance and Risk Management

Georges River Council has 15 Councillors across five wards. Council’s management structure is divided into five permanent Directorates: • • • • • •

16

Office of the General Manager Business and Corporate Services Community and Culture Assets and Infrastructure Environment and Planning City Strategy and Information (Temporary)

Georges River Council // Workforce Management Plan 2020/21

GENERAL MANAGER

Environment and Planning Directorate

Assets and Infrastructure Directorate

City Strategy and Innovation Directorate

Legal Services

Director Environment and Planning

Director Assets & Infrastructure

Director City Strategy and Innovation

Director Legal Services General Counsel

Manager Development and Building

Acting Executive Manager Engineering Operations

Coordinator Strategy and Innovation

Senior Solicitor

Manager Strategic Planning

Manager Infrastructure

Coordinator Communications and Engagement

Manager Environment, Health and Regulatory Services

Manager Project Delivery

Executive Manager Premium Facilities and Properties

17

Workplace demographics Our people are crucial to how we demonstrate our values and achieve our mission, which are described later in this chapter.

Consisting of permanent, temporary and casual staff, our head count workforce as at 31 December 2019 is 612 staff with an FTE of 567.

Head count fluctuates due to establishment vacancies.

Our workforce is a mix of local and non-local employees with 45.10% of staff traveling less than five kilometres to get to work (Georges River Council, 2019).

Approximately one quarter (26%) of our staff hold management or leadership roles and 74% are in operational positions.

Females (51.47%) and males (48.53%) are almost equally represented in Council’s workforce; however, females (62.50%) account for the largest percentage of employees in management positions, which is higher than the NSW median.

We face the challenges of an ageing workforce (22% of employees are 55 or over). The highest proportion (42%) of our workforce were born between 1965 and 1980, with the remaining workforce born between 1980 to 2001, indicating a wide spread of represented age groups.

18

Georges River Council // Workforce Management Plan 2020/21

Category

Subcategory

Count (n=)

Percentage %

FTE

Current FTE (excluding casuals)

567

-

Head Count (excluding casuals)

612

-

Permanent

561

91.67%

Temporary

51

8.33%

Casual Staff

66

-

Male Workforce

297

48.53%

Female Workforce

315

51.47%

9

37.50%

Females in Management

15

62.50%

18-24

31

5.07%

25-34

119

19.44%

35-44

155

25.33%

45-54

170

27.78%

55-64

115

18.79%

65 +

22

3.59%

Less than 5km distance

276

45.10%

Employees by status

Gender

Males in Management Age

Distance travelled to work

5km to 10km distance

188

30.72%

10km to 15km distance

38

6.21%

15km to 20km distance

27

4.41%

20km + distance

83

13.56%

-

15.00%

Turnover

Rolling Annual as at 30 June 2019

Length of service

Less than 5 years

315

51.47%

5 to 10 years

104

16.99%

11 to 15 years

83

13.56%

16 to 20 years

42

6.86%

20 + years

68

11.11%

5

0.82%

Diversity and inclusion

% Of staff with a disability % Aboriginal or Torres Strait Islander % Language other than English at home % Culturally diverse

**

**

53

8.66%

165

26.96%

19

Workforce skills Our broad occupational base delivers 150 different services to the local community and requires staff from professional, technical, operational and administrative occupations.

Directorate

Department

Roles

Georges River Council Leadership

General Manager Directors Managers Coordinators

Team Leaders Supervisors Executive Assistants Personal Assistants

Assets and Infrastructure

Projects

Building Projects Project Delivery Administration

Environmental and Open Space Officer Civil Works Projects Officer

Engineering Operations

Business Projects City Presentation Trades Procurement Officer

Service Delivery North Service Delivery South Service Delivery East Service Delivery West Cleansing Field Health and Safety Specialist

Infrastructure

Administration Design Survey & Drainage Parks and Waterways Traffic and Transport

Security & Emergency Assets & Restorations Officer Building Maintenance Officer Property & Assets Officer

Premium Facilties & Properties

Specialist Administration and Marketing Officer Head of Events Operations Officers

Operations Supervisor

Customer Service and Events

Communications Officers Customer Service Officers

Events Officers

Children’s Services

Administration Officers Childcare Assistants Childcare Workers

Cooks, Cleaners Early Childhood Teachers/ Educators

Community and Culture

Community and Cultural Community Development Development Officers Cultural Services Officers Library Services

20

Library Assistants Library Officers Librarians

Georges River Council // Workforce Management Plan 2020/21

Administration Officers Technical Officers Curators

Directorate

Department

Roles

Environment and Planning

Development and Building

Building Certification Officers Development Assessment Officers Development & Building Administration Officers

Consultant Arborist Senior Planner Business Improvement

Environmental Health and Regulatory Services

Compliance Officers Sustainability and Waste Officers

Parking/Rangers Licensing and Permits Officers

Strategic Planning

Economic Development Officer Economic Strategic Planner Administration Officer

Strategic Planners Strategic Project Officer Information Management Officer

General Manager’ s Office

Executive Services Senior Corporate Planner

Community Engagement Officer Corporate Support

Audit

Internal Auditor

Legal Services

General Counsel

Senior Solicitor

City Strategy and Innovation

City Strategy and Innovation Officers Communications Officers

Community Engagement

Financial Reporting

Financial Reporting Finance Officers Rates Management Reporting Officers Accountants Systems, Revenue and Analysis

Information Management

Business Systems Specialists/ Officers Information Management Officers Records Project Officers

IT Projects Officers Geospatial Information Systems Officers

People and Culture

Employee Engagement Officer People & Culture Officers Human Resource Business Partners Payroll Officers

Organisational Capability Officers Human Resource Information Systems Officers Project Support Officer

Governance and Risk

Project Officers Governance Procurement Officers Claims Officers Work Health and Safety Officers Procurement Policy Specialists Policy Officers and Systems Specialist

Office of the General Manager

Business and Corporate Services

21

Financial considerations Employment costs are estimated to account for 41.7% of our total draft estimated 2019/20 operating expenditure and have been developed under the following assumptions: •

continuation of current agreed service levels for delivering outputs, functions and actions

•

a stable workforce number with no significant changes to functions and services

•

an annual turnover rate of between 10 and 20%

•

continued internal focus to develop and grow staff skills, experience and knowledge programs

•

minimal industrial activity

•

no significant labour policy changes

•

appropriate workforce and resources to complete the delivery program and operational plan actions

•

completion of asset management annual programs.

•

using these assumptions, employment costs have been projected to support business as usual service delivery.

With 22% of Council employees aged 55 or over and long tenure we need to plan for impending liabilities associated with staff exiting the workforce. The forecast balance of the Employee Leave Entitlements (ELE) 30 June 2019 is $9.5 million. We will continue to monitor the ELE over the coming years and will actively manage Council’s leave liability.

Ongoing capacity to fund rising employment costs will require a strategic approach that maximises revenue streams, reviews service provisions and models, and increases resource capabilities.

Increase in employee costs can be attributed to:

22

•

Local Government Award salary/wage and performance review increases

•

changes to employee leave entitlements

•

superannuation costs

•

workers compensation costs

•

staff training costs

•

other employment costs.

Employee costs

2018/19 $’000

2019/20 $’000

2020/21 $’000

Total Employee Costs

58,730

58,730

58,930

Georges River Council // Workforce Management Plan 2020/21

A people culture A strong, positive organisational culture will help us to achieve our community goals, as established through the Community Strategic Plan. We are committed to an engaged and community-focused workforce that is geared toward excellence in service delivery while optimising the customer experience. We proactively encourage a positive culture through engagement with staff and the community.

Our organisational culture is guided by our mission and values.

The annual staff survey gauges the organisational climate and gives a voice to the satisfaction levels of our workforce. Based on these results, we have developed several programs and initiatives to increase employee satisfaction and drive a positive workplace culture.

These are: •

Mission and values: These were adopted in June 2017, to drive our workplace culture.

•

Social events (mufti days, fundraising, community events, international events): Our social calendar encourages staff from different areas of the business to intermingle and support a charitable cause as well as celebrate the diversity of our workforce.

•

Performance excellence reviews: This program focuses on continuous development and feedback and fosters performance excellence. The process will involve continuous conversations with staff, continuous feedback on their performance and continuous alignment of their performance and behaviour with the values of the organisation.

•

Rewards and recognition program: The program acknowledges high achieving employees recognising outstanding customer service, performance, innovation and demonstration of Council’s mission, vision and values. The program is driven by both people managers and amongst staff at a peer-to-peer level.

•

Learning and development program: The River Runs Deep learning and development plan launched in 2017 ensures our people are informed, adaptable and prepared with the skills and knowledge to effectively do their job both now and in the future.

•

Design thinking workshops: These take a bottom-up approach to problem solving and require employees to think collaboratively about solutions to organisational issues.

•

Wellness and Belonging: The Wellness and Belonging Program will include employee wellbeing policies, flexible working strategies to support work/ life balance, a drug and alcohol policy, quit smoking policy and strategies to manage the ageing workforce. All strategies to further enhance Council’s employee value proposition (EVP).

We will continue to monitor our organisational culture and provide opportunities for staff to identify areas of concern and develop appropriately timed and targeted initiatives that improve the workplace culture.

23

Staff Survey Results

24

Georges River Council // Workforce Management Plan 2020/21

Internal workforce challenges A number of local constraints affect our workforce: •

Ageing workforce: 22% of our staff is 55 years or older, meaning a high number of staff will consider retirement in the next 10 years. This may result in staff and skills shortages and the need for more flexible working arrangements.

•

Differing needs of a multigenerational workforce: We have five generations in our workforce, each with unique traits that define them and influence their attitudes and expectations regarding their work. Varying attitudes and expectations directly impact attraction and retention strategies that we must develop to build an agile and resilient long- term workforce.

•

Trends towards limited tenure: Results from the most recent staff survey indicated that 33% of staff are planning to change employers within the next five years, placing corporate knowledge, organisational capability and operational efficiency at risk.

-

Skill gaps: Specific skill shortages have been identified in:

-

Strategic Planning and Community Engagement

-

Development Assessment and Compliance Services

-

Corporate Services

-

Children’s Services.

In general the overall market for attracting professionals is increasingly competitive as councils seek to source employees with local government experience. While older workers may retire, younger employees may not have the acquired skills and experience necessary for promotion to senior and managerial roles, which indicates a need for ongoing succession planning.

25

Where are we going?

10-year focus

Over the next year we will:

Consultation on the Community Strategic Plan identified six pillars that underpin our future planning:

•

implement this Workforce Plan

•

implement performance excellence and people capability strategies and programs

•

implement a workplace health and safety system to support a well and safe workplace.

•

a protected environment and green open space

•

quality, well planned development

•

active and accessible places and spaces

•

a diverse and productive economy

•

a harmonious and proud community with strong social services and infrastructure

•

leadership and transparency.

Associated goals and strategies for each pillar will direct our focus over the next 10 years. To make this happen, we need a capable, resilient and diverse workforce, driven by leading people practices (CSP Goal 6.5).

This Workforce Plan also targets other Community Strategic Plan goals, such as developing leadership that focuses on customer service and innovation.

Rising to the challenges Our people are key to our strategic objectives.

Therefore, our Workforce Strategy incorporates community expectations for our workforce and identifies the priorities that will assist and motivate our workforce to achieve Council's long-term aspirations. It guides how we can mobilise our workforce to be resilient, sustainable and competent.

We will collaboratively attract and retain the necessary skills for an adaptable and accountable workforce that responds to customers, demonstrates respect for all, and gets the job done ethically and safely. Our strategic approach to workforce engagement focuses on: 1. Capability mobility 2. Continuous learning 3. Flexible resource allocation 4. Information management 5. Iterative business improvement processes 6. Talent management 7. Open physical and virtual environment 8. Partnerships and networking 9. Performance centric 10. Technology, systems and tools

26

Georges River Council // Workforce Management Plan 2020/21

Our workforce strategy 1. Capability mobility

Implement temporary, planned mobility of targeted employees across functional business areas to build capability and develop a more experienced and engaged workforce.

2. Continuous learning

Regularly review the learning needs of our workforce and commit to upgrading their skills so that we can successfully adapt to the changing environment, increased demands and ever-expanding functionality of Council.

3. Flexible resource allocation

Proactively coordinate our human resources, systems and tools, to enable business continuity and real-time responses to changing circumstances.

4. Information management

Streamline and maintain complete and integrated data management to effectively fulfil our functions and store information in a safe and accessible way.

5. Iterative business improvement processes

Constantly strive to improve our processes and services in accordance with industry standards to achieve customer centricity, increased productivity and the capability embrace new developments or technologies.

6. Talent management

Persistently attract, recruit, hire and retain the most talented and superior employees available, regardless of age or diversity, and provide opportunities for continuous development.

7. Open physical and virtual environment

Create a fit-for-purpose environment that influences a positive workplace culture and supports work/life balance.

8. Partnerships and networking

Actively encourage internal and external stakeholder relationships to share knowledge and utilise skills to supplement expertise and accomplish mutual goals.

9. Performance centric

Motivate our workforce through feedback mechanisms, role clarity and a rewards and recognition program.

10. Technology, systems and tools

Identify opportunities to invest in new technologies or to upgrade, streamline and perfect our systems and tools.

27

How will we get there?

Supporting our Workforce Plan Acknowledging that day-to-day Council operations are influenced by the highly politicised and regulated environment in which we work, changes are often beyond our control. In addition, local government in NSW faces contemporary challenges relating to its structure, ongoing financial sustainability and community relevance.

Our workforce should be able to effectively respond to potential changes at a local and industry level.

In response, additional social planning and strategy documents complement this Workforce Plan by incorporating identified community needs to address specific areas: • learning and development program • talent management strategy • work health and safety strategy.

We developed these documents following extensive community consultation.

28

Georges River Council // Workforce Management Plan 2020/21

Learning and Development Program: The River Runs Deep Our vision is to create a learning culture that supports our mission, vision and values. The Ready, Set, Grow Program for 2018-2020 will promote an adaptive, digitally literate and customer- focused workforce where managers and leaders foster ongoing learning and continual improvement.

This Program structures development programs and activities into six streams. The programs to manage compliance and ongoing training will aim to reduce non-compliance instances, reduce accidents and injuries, and sustain a safe, healthy and productive work environment.

Our goal is to create a culture of continuous learning through developing a dynamic workforce with the tools and capabilities required to respond to rapid change.

The program expands learning beyond the traditional classroom by focusing: • 70% of learning towards on-the-job training •

20% of learning via coaching and mentoring relationships

•

10% of learning by formal training courses, long term education programs, conferences and seminars.

This approach relies on the support of leaders throughout the organisation to free up their talent to provide and share their skills with others. This will improve learning experiences and build deeper cross- unit collaboration, which is a priority under our Performance Excellence Program.

The program’s success will be measured through relevant metrics around cross-functional project initiatives, successful internal secondment and promotion movements, successful skill development of staff and feedback through leadership and performance reviews.

We will continually review our learning and development suite based on the annual workforce training needs

analysis to ensure relevancy and quality. This includes investigations into relevant programs that directly link to nationally-accredited and government-funded training programs.

Our leadership drives our culture. Great leadership is having the courage to make difficult decisions that benefit the whole community and the skills to engage our teams in providing quality service. Sustainable leadership is about engaging and inspiring leaders to develop, contribute and perform at an optimum level across all layers of the organisation.

Leadership Development at Council focuses on emotional intelligence, technical and people skills to help managers motivate and develop staff, model and promote positive leadership behaviour and improve talent retention rates. Our goal is to create a thriving organisation driven by leaders who inspire and lead staff and teams to achieve our operational and strategic goals that go to providing quality outcomes for our community.

29

Work Health and Safety Strategic Plan We are committed to a safetyfirst approach by providing and maintaining a safe and healthy workplace for staff, contractors and visitors. Our Work Health and Safety (WHS) Strategic Plan aims to achieve high standards of health, safety and risk management in all operations by: •

taking a systematic approach to safety

•

reducing and managing WHS risks

•

building a robust safety culture

•

developing innovative consultation platforms

•

measuring safety performance.

The Strategy also aims to exceed the requirements of the Australian Work Health and Safety Strategy 20122022 which details a 10-year national framework to improve workplace health and safety. It sets out four outcomes to be achieved by 2022: •

reduced incidence of work-related death, injury and illness

•

reduced exposure to hazards and risks

•

improved hazard controls

•

an improved work health and safety infrastructure.

Our Strategy will continuously grow our safety culture, focus on employee health and wellbeing, and apply best practice strategies in workplace health, safety and risk management to maintain sound safety and risk management practices that protect the community and service agency staff.

30

Georges River Council // Workforce Management Plan 2020/21

Embracing opportunities Despite our challenges, we recognise a number of opportunities that may assist in developing our sustainable workforce.

Using new technologies can increase efficiencies, streamline processes and facilitate information exchange. Identifying opportunities to review and install systems upgrades where appropriate will allow us to remain modern and relevant as both an employer and as a service provider.

Through annual performance reviews, we will continue to understand the capacity of our staff and identify opportunities to create our own professionals to address skills shortages. Combining this approach with our Learning and Development Program will equip employees with the newest information and principles for best practice.

Continuous business improvement ensures service delivery meets the needs of internal and external stakeholders and allows us to mobilise resources in ways that maximise efficiencies, reduce administrative burden and ultimately position Council services as essential to the lifestyle of the local community.

To effectively embrace opportunities as they become apparent, this Plan will be reviewed and adjusted annually to create a workforce that is relevant to the present and ready for the future.

Implementation, monitoring and review Measuring success

•

Learning and development: Audit the number of training modules circulated against staff participation for future comparison.

Workforce Plan We will measure our performance against this Plan every year by reviewing the following factors:

•

Human resources: Measure and compare key performance indicators relating to human resources such as position vacancies, staff turnover, new recruits between review cycles (one year).

•

Workforce succession: Assess the number of internal/external secondment, transfer and promotions within the review period.

•

Implementation: Measure the number of strategies in this document that have been implemented by the beginning of the next review cycle.

•

Streamlined internal processes: Measure time and cost savings of streamlined internal processes in conjunction with customer feedback including complaint and end user experience of new processes.

•

Employee engagement, organisational culture and satisfaction with leadership: Collect and analyse data on these measures via the staff survey and compare to previous survey results.

31

Workforce Management Action Plan Goal 1

2

32

Capability mobility

Continuous learning

Objective

Priority

Action

Timeline

Progress

Implement temporary, planned mobility of employees across business areas to build capability and develop a more experienced and engaged workforce that responds to the challenges of a changing industrial landscape, the shifting needs of our community, and Council’s directions.

2

Establish a secondment program for employees to work in higher-level or new roles and to address skills gaps and skills shortages

2018/2019

Completed

1

Work with other divisions to anticipate future challenges and engage with all stakeholders for all workplace change from their inception through formal surveys with leadership team and alignment with operational plan outcomes.

2018/2019

Completed

1

Develop and deliver The River Runs Deep.

2018/2019

Completed

2

Include The Captains Collective as part of the learning and development plan to provide opportunities for the development of leadership teams.

2018/2019

Completed

1

Deliver a whole-oforganisation conference focused on values and compliance

2018/2019

Completed

2

Create opportunities and career paths to retain technical experts through mapping career paths vertically and horizontally and implementing project opportunities.

2018/2021

Completed

3

Explore opportunities to cultivate our professionals through support for tertiary qualifications under our study assistance program.

2018/2019

Completed

Develop a dynamic workforce with the required tools and capabilities required to respond to rapid change

Georges River Council // Workforce Management Plan 2020/21

Goal 3

4

5

Flexible resource allocation

Information management

Iterative business improvement processes

Objective

Priority

Action

Timeline

Progress

Proactively predict and mobilise resources to address changing circumstances to enable real time responses and business continuity

2

Investigate employment arrangements to optimise workforce flexibility and responsiveness through further use of technology.

2020/2021

In progress

2

Embed, where appropriate, contemporary and fitfor-purpose workforce scheduling models.

2020/2021

In progress

2

Review and update People and Culture policies and procedures including harmonisation of forms and templates

2018/2019

Completed

1

Implement a new Human Resource Information System (HRIS).

2018/2020

In progress

3

Implement a project management system for accurate progress reporting on People and Culture projects.

2018/2019

Completed

2

Assess leadership needs in relation to reporting and data analysis and streamline report production.

2018/2019

Completed

1

Ensure internal communications are open, frequent, targeted and multidirectional to share understanding and harness employee commitment.

2018/2019

Completed

1

undertake service delivery review of key Council functions.

2018/2019

Completed

1

Regularly review our systems, policies, processes and procedures to identify opportunities for improvement.

2018/2019

Completed

1

Encourage a culture that embraces feedback for business improvements to enhance flexibility and agility of operations.

2018/2020

In progress

Streamline and integrate our information management ensuring we collect the information we require, store information safely and intuitively; and share information to create mutual understanding.

Engage in continual review of our systems, processes and procedures to realise opportunities for improvement.

33

Goal 6

34

Talent management

Objective

Priority

Action

Timeline

Progress

Attract and retain the right people who have the right mix of skills and experience to fulfil Council’s functions.

3

Develop a fit-for-purpose apprenticeships and traineeships program.

2018/19

Completed

2

Investigate ways to expand our use of social media and other technologies to promote Council as an attractive employer.

2019/20

Completed

1

Develop a diversity and inclusion program that incorporates: CALD employee plan, workplace accessibility plan, equal opportunity plan, diversity inclusion action plan and mature age employee plan.

2019/20

Completed

2

Establish a talent management program that identifies talent gap analysis aligned with a succession planning strategy, retention strategy and leadership growth program.

2020/21

In progress

2

Conduct exit interviews with employees to gain insight into their experience of Council and address recurring themes.

2018/19

Completed

1

Provide a human resources presence on leadership forums to factor people matters into all decisions and promote human resources as a trusted, centralised source of advice and reference point on people- related matters.

2018/19

Completed

2

Streamline our recruitment processes for easier candidate selection and onboarding.

2019/20

Completed

Georges River Council // Workforce Management Plan 2020/21

Goal 7

8

Open physical and virtual environments

Partnerships and networking

Objective

Priority

Action

Timeline

Progress

Create a fit for purpose workplace environment that assists to develop a positive workplace culture and allows flexibility to support work/life balance.

1

Actively support a workplace culture that reflects our values by establishing and delivering an organisational culture program and wellbeing and belonging program that enables staff to achieve their potential.

2019/20

Completed

1

Continue to conduct employee satisfaction surveys.

2018/19

Completed

2

Co-locate and update workspaces with collaboration ‘break-out’ areas as part of Project Fusion.

2018/19

Completed

3

Enhance the flexible nature of our workplace to alleviate commuting pressures on people and their work/life balance.

2020/21

In progress

1

Build stable and cooperative relationships with employees that foster trust and minimise conflict by communicating effectively across the whole organisation.

2019/2020

Completed

2

Increase opportunities to build professional relationships by promoting cross-divisional projects and investigate creative ways to share knowledge and expertise and generate opportunities for crosscollaboration.

2019/2020

Completed

2

Develop sustainable partnerships that support operational outcomes – for example, by facilitating opportunities for joint procurement of technologies or services to minimise costs for council.

2020/2021

In progress

Actively encourage the development of relationships with both internal and external stakeholders, to share knowledge and utilise skills to supplement each other’s expertise and accomplish mutual goals.

35

36

Georges River Council // Digital Resource Management Plan 2020/21

Digital Resource Management Plan 2020/21

37

What is the Digital Resource Management Plan?

A focus on our digital resources This Digital Resource Management Plan demonstrates Council’s commitment to utilising the best digital framework possible to enable responsive and timely services and information. It is one of four components of Council’s Resourcing Strategy, 2019/2020. The Resourcing Strategy articulates how Council’s finances, workforce, infrastructure and technology will support the implementation of our Delivery Program 2018/19 2020/21. The Delivery Program works towards meeting the aspirations and expectations expressed in the Community Strategic Plan 2018-2028 for the Georges River Local Government Area (LGA).

Council’s digital infrastructure is a critical enabler that supports the whole of our operations. It facilitates the delivery of all services to our community and customers.

Internally, it also ensures our workforce, governance, Councillor and corporate support functions run smoothly.

We have identified that our digital assets and resources are a key area to consider strategically for both our current operations and when planning for the future.

This Digital Resource Management Plan defines our digital starting point, aim and the roadmap by which

38

Council will leverage information and digital technology to transform the nature of services to our community and customers to deliver on Community Strategic Plan outcomes and targets. Our digital assets and resources are integrated into all parts of Council and throughout our Local Government Area. It is important to identify these components and ensure that systems are performing to produce maximum benefit for our community and organisation.

Its implementation up until 2022 will support digital transformation and innovation for both organisation and the community we serve. We aim to be a leading Council, demonstrating best practice for digital asset resource delivery and management. This Strategy has been built with the considerations for the future including: •

Expectations and usage

•

Governance

•

Rapid change and obsolescence

•

Funding and staffing

•

Asset management

•

Location flexibility

•

Environmental and market influences.

Georges River Council // Digital Resource Management Plan 2020/21

Key themes of Council’s Digital Resource Management Plan Our Aim:

Our Strategic Objectives

To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient, easy to use services.

Four strategic objectives underpin this Plan which drives our digital priorities and subsequent actions.

For our community, this means greater flexibility and certainty in dealing with Council and they are receiving the service they expect from Council.

1. Enable Committed Governance – Keeping our Information Safe Proactively commit to outcomes and actions that will build a sustainable and resilient Council.

We will: • Continue to adapt information security governance against an everchanging threat landscape • Support business sustainability and resilience • Proactively manage risks • Commit to responsible sourcing and asset management.

2. Empower Digital Government – Improving the ways we interact Deliver digital and automated services enabling a mobile and flexible Council.

We will: • Provide digital first user centric services • Provide technology to support a flexible workforce and make services available anywhere, anytime on any device to staff so they can better service our community and customers • Enable process automation and artificial intelligence.

3. Undertake Continuous Improvement Culture - Exploring and

adapting to new technologies Create a move to improve culture by continuous review and improvement of processes and digital assets, systems and resources to deliver increased productivity, innovation and customer satisfaction.

We will: • Drive a digitally skilled and capable workforce • Support a culture of continuous improvement and digital transformation • Cultivate strategic partnerships with core vendors • Enable innovation across Council function and services.

4. Embed Business Analytics – Creating meaningful performance data Build deliver and support tools and reporting capabilities to enable an open and transparent reporting framework facilitating a data driven, transparent and accountable Council.

We will: • Build and maintain automated business intelligence tools and dashboards • Build and maintain an open data exchange • Ensure data integrity through formalising a data policy and enforcing compliance 39

Our Digital Resource Management Plan on a page To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient, customer centric services.

40

Enable committed governance

Empower digital government

Keeping our information safe

Improving ways to interact with Council

Georges River Council // Digital Resource Management Plan 2020/21

Undertake continuous improvement and innovation Exploring and adapting to new technologies

Embed business analytics Creating meaningful performance data

Where are we now?

Organisational context In planning for the future, it is important to understand where we have come from and set the baseline of the current situation. During the harmonisation of the two former councils we committed to a transition plan – the ICT Strategic Plan 2016-2018 which ensured that within 30 months of proclamation all technical infrastructure and systems would be consolidated. An information and communications technology (now digital) strategic approach drove this Plan and the associated program.

We took a progressive, incremental approach which was promoted by the Department of Premier and Cabinet at that time. The foundations of Council’s digital architecture have now been established. We have finalised the first three steps in our roadmap to one Council transformation. This Digital Resource Management Plan builds upon the foundations of the ICT Strategic Plan 2016-2018. It sets our strategic digital technology objectives and will drive our new future state of technology.

Figure 1: Our digital transformation journey

2016

Setting the Foundation and Productivity Improvements

2019

Continuous improvements and migration to digital services

2017

Simplifying IT complexity and joining up services

2018

Joining up Services and enabling new cloud service and support models

beyond

Transformation and Innovation

41

Working together This Plan was developed in consultation with staff from across Council through a series of workshops. These workshops gathered insights into staff needs across two categories: business and systems improvements and tools of the trade. The results indicated our staff considers the following to be important in undertaking their jobs and improving the way they work.

•

Devices for a flexible and mobile workforce

•

Mobile applications

•

Improved website functionality

•

Connectivity and easy access to Wi-Fi

•

More accessible hardware, for example larger printers at childcare centres

•

Communication tools

•

System support

•

Digital literacy and system training

•

Ease of access to information across all systems.

This feedback has informed our Strategic Objectives, Priorities and subsequent Action Plan.

42

Georges River Council // Digital Resource Management Plan 2020/21

Snapshot of Current Situation

Cyber Security Cyber Security Cyber Security 12,999,645 Cyber Security

Information Management Information Management Information Management 88,362 Information Management

88,362 Correspondence registered 88,362 Correspondence registered 88,362 Correspondence registered 746 registered Correspondence 746 Information requests 746processed Information requests processed Information746 requests processed Information requests processed

382 Training sessions facilitated 382 382 Training sessions facilitated to Training enable effective use of sessions facilitated Training sessions facilitated to enable effective use of of Digital Resources to enable effective use to enable effective use Digital Resources Digital Resourcesof Digital Resources

Sustainability Sustainability Sustainability 93kgs Sustainability

Digital Assets and resources Digital Assets and resources Digital Assets and resources 1,841 Digital Assets and resources

Data Integrity Data Integrity Data Integrity 1,435 Data Integrity

12,999,645 Threats prevented/blocked 12,999,645 12,999,645 Threats prevented/blocked Threats prevented/blocked Threats prevented/blocked

Printing93kgs consumables 93kgs 93kgs Printing consumables Printing consumables 910kgs Printing consumables 910kgs eWaste recycling of 91 devices 910kgs 910kgs eWaste recycling of 91 devices eWaste recycling of 91 devices 15,500kgs eWaste recycling of 91 devices 15,500kgs Use of 100% recycled paper 15,500kgs UseUse of 100% recycled paper - 1193 reams of paper of15,500kgs 100% recycled paper Use1193 of 1193 100% recycled paper reams of paper reams of paper 16,500kgs 1193 reams of paper 16,500kgs Total waste diverted from landfill 16,500kgs 16,500kgs Total waste diverted from landfill Total waste diverted from landfill Total waste diverted from landfill

System availability System availability System availability 99.97% System availability

99.97% Availability of Digital 99.97% 99.97% Availability of Digital Infrastructure performance Availability of Digital Availability Digital Infrastructure performance Infrastructureofperformance Infrastructure performance

1,841 Hardware and software applications 1,841 1,841 Hardware and software applications managed and maintained Hardware and software applications Hardware and software applications managed and maintained managed and maintained 877 and tasks managed maintained 877 tasks Technology Infrastructure 877 tasks 877Infrastructure tasks Technology Maintenance Technology Infrastructure Technology Infrastructure Maintenance Maintenance Maintenance

Digital Resource Digital Resource Digital Resource Management Plan progress Digital Resource Management Plan progress Management Plan progress 19/20 Management Plan progress

Programme on19/20 track to meet 80% 19/20 19/20 Programme onwith track 80% compliance 14to ofmeet themeet 25 Programme on track to 80% Programme on track meet compliance with 14 to ofcompleted the 2580% Digital Resource projects compliance with 14 of the 25 . compliance with 14 ofcompleted the 25 . .

Digital Resource projects Digital Resource projects completed Digital Resource projects completed.

Training Training Training 382 Training

1,435 Properties created 1,435 1,435 Properties created Properties created 1,631created Properties New1,631 addresses 1,631 1,631 New addresses New addresses 2,367 New addresses 2,367 Changes of address 2,367 2,367 Changes of address Changes of address 651,374 Changes of address 651,374 Property attributes 651,374 651,374 Property attributes Property attributes Property attributes

Move to Improve Move to to Improve Move Improve Move82% to Improve

82% of agreed initiatives 82% were 82% of agreed initiatives were implemented of agreed initiatives were of agreed initiatives implemented implementedwere implemented 43

Where are we going?

Our current and future state It is important that Council continues to deliver efficient technology to our staff to ensure appropriate and timely services are provided to the community. This includes mobile and flexible digital services as well as troubleshooting and training. We are continually undertaking projects that aim to improve both internal Council and community processes.

With technology use continuously expanding, society now significantly relies on personal devices such as smart phones, laptops and tablets to carry out tasks and access information. Council believes we should be supporting this shift in the norm with a focus on delivering reliable, efficient and adaptable technology.

This means ensuring that Council services are mobile, not only for the community but for Council staff, so that they enjoy a flexible working environment and work-life balance.

We want to make sure that our actions deliver a relevant and viable digital infrastructure framework which will pave the way for future digital advancements, benefiting our community, customers and staff.

Figure 2: Digital technology current and future state

44

Now

Future

STATE OF DIGITAL TECHNOLOGY JUNE 2019

STATE OF DIGITAL TECHNOLOGY JUNE 2022

Established technology governance framework

>>>

Technology framework responsive to legislative framework

One Council protected technology network, connected across location

>>>

One Council protected and resilient technology network connected with the world

Established Hybrid Cloud Enterprise Architecture function

>>>

ReceptiveCloud offering and enterprise hybrid Cloud architecture framework

Mobility and productivity challenges

>>>

Availability of services anywhere, anytime on any device to customers and staff

Established continuous improvement focus across Council functions and services

>>>

Innovation enabled across Council functions and services

Established vendor management

>>>

Strategic partnerships with core vendors and effective Service & Vendor Management Framework

Established performance reporting to help drive accountability

>>>

A data driven, transparent and accountable organisation enabled by digital technology

Georges River Council // Digital Resource Management Plan 2020/21

45

Emerging global trends in technology In planning for the future Council has considered what is driving transformation, change and innovation in the government sector across Australia, as well as global trends and emerging technologies. We need to remain informed of these emerging or evolving global trends and while not all will affect us directly or immediately, strategic planning should manage the expectations of these future influences. Leading worldwide information communication technology research agency Gartner publish their findings annually about technology trends and influences that are intended to assist and guide high level strategic thinking by organisations and assist in planning for the future. The top 10 Gartner strategic technology trends for 2019 are outlined below.

1. Autonomous things Autonomous things are robotics, vehicles, drones, appliances or agents that use artificial intelligence to interact with their environments. They can operate with various levels of automation, from semi-automation which requires human assistance to fully automated objects. Gartner predicts that as autonomous things rapidly become more available, there will be a shift from stand-alone intelligent things to a swarm of collaborative intelligent things, with multiple devices working together, with or without human input. As an example, if a drone surveyed one of Council’s parks and determined it was ready for mowing in a semi-automation process this would log a service request and add the work to the works schedule. In a fully autonomous space, the drone would dispatch an autonomous mower or tracker to mow the grass. Council will investigate and explore the possibilities of autonomous capabilities across the organisation, keeping in mind the concerns around the capacity of artificial intelligence to make decisions that a human brain is capable of computing.

2. Augmented analytics Across Council there are increasing amounts of data from various sources and systems which need to be prepared, analysed and transformed into conclusions which shape the way we manage our business.

46

Resourcing, skillsets and capability gaps can mean that key data insights are not readily available across the organisation. Creating these business insights can be a manual process and currently relies on a person preparing the data to create these conclusions from the information available to them. The person preparing the data has the potential to miss key business insights or to unconsciously create a bias when reporting on this data.

By exploring augmented analytics there is the potential for Council to use automated algorithms to transform how Council generates analytical insights. This would identify hidden patterns while removing personal bias.

Changing the way Council manages data would ensure accurate and timely data insights will be more broadly available across the organisation to inform our decisions.

3. Artificial Intelligence (AI) driven development The market is rapidly shifting from an approach in which professional data scientists must partner with application developers to create AI-enhanced solutions.

This provides the developer with an ecosystem of AI algorithms and models, as well as development tools tailored to integrating AI capabilities and models into a solution. For Council this could herald the creation of Georgie, our helpful virtual assistant that could respond to general enquiries including planning related queries.

This assistant would be available round the clock to provide better outcomes and service to our community.

AI bots could also be developed to take on the grunt work for very manual processes. An example in the registration of digital records, a bot could be developed to automate this registration process and remove manual handling, releasing staff to manage more complex task and enquiries.

4. Digital twins A digital twin is a digital representation that mirrors a real-life object, process or system. Digital twins integrate internet of things, artificial intelligence, machine learning and software analytics with spatial network graphs to create living digital simulation models that update and change as their physical counterparts change. A digital twin continuously learns and updates itself from multiple sources to represent its near real-time status, working condition or position.

Creation of a Digital twin for Council would enable city planners to better plan for future needs. Data on energy

Georges River Council // Digital Resource Management Plan 2020/21

consumption could be used to influence planning decisions and meet environmental targets. Modelling for traffic light phases or air flow around proposed buildings could influence more efficient options. We could also use this technology to improve our digital citizen experience to personalise and transform how Council delivers services.

5. Empowered Edge (IoT) The edge refers to endpoint devices used by people or embedded in the world around us. Edge computing describes a computing framework in which information processing, content collection and delivery, are placed closer to the endpoints. It tries to keep the data processing local, with the goal being to reduce traffic and delays. Gartner expects that over the next five years, specialised AI chips, along with greater processing power, storage and other advanced capabilities, will be added to a wider array of edge devices. The diversity of this internet of things world and the long-life cycles of assets such as industrial systems will create significant management challenges for Council. Longer term, as 5G matures, the expanding edge computing environment will have more robust communication back to centralised services. Council must be ready to respond and enable community expectation on core digital assets, such as closed circuit television (CCTV), public WiFi,- sensor technology and electric vehicle charging stations. The explosion of end point devices will also mean we need to be ready to handle not only the devices but also the data that will need to be centrally managed and turned into information to support Council’s effective decision making.

6. Immersive technologies Conversational platforms are changing the way in which people interact with the digital world. Virtual reality, augmented reality and mixed reality are changing the way in which people perceive the digital world. This combined shift in perception and interaction models leads to the future immersive user experience. Gartner suggests that we will begin to shift from thinking about individual devices and fragmented user interfaces to multichannel and multimodal experiences. The multimodal experience will connect people with the digital world across hundreds of edge devices that surround them, including traditional computing devices, wearables, automobiles, environmental sensors and appliances. The multi-channel experience will use all

human senses as well as advanced computer senses (such as heat, humidity and radar) across these multimodal devices. This multi-experience environment will mean that the environment we are in becomes the computer rather than our individual devices. For Council this means a shift in how we engage with our community and partner agencies. It means we can expand our services for our community as they need. Expanding our capability to provide real time transactional service will mean people will receive improved customer service, information and dialogue from Council.

7. Blockchain Blockchain, a type of distributed ledger, promises to reshape industries by enabling trust, providing transparency and reducing friction across business ecosystems potentially lowering costs, reducing transaction settlement times and improving cash flow. Today, trust is placed in banks, clearinghouses, governments and many other institutions as central authorities with the “single version of the truth” maintained securely in their databases. Council will need to be open to collaborate on supporting block chain technology to enable Local, State and Federal Government initiatives.

8. Smart Spaces A smart space is a physical or digital environment in which humans and technology-enabled systems interact in increasingly open, connected, coordinated and intelligent ecosystems. Gartner states that there has been a trend merging elements such as smart cities, digital workplaces, smart homes and connected factories. They believe the market is entering a period of the accelerated delivery of robust smart spaces with technology becoming an integral part of our daily lives, whether as employees, customers, consumers, community members or citizens. Council has already received two grants for creating smart spaces under the Australian Government’s Smart Cities and Suburbs Program. Through these spaces we aim to create smart social spaces that connect people physically and provide them with free WiFi and access to technology solutions in the public realm. These spaces provide an opportunity for Council to monitor user frequency and needs so that we can better service them. We are also able to streamline the maintenance scheduling of this infrastructure. We will continue to deliver and build on these projects in line with the Georges River

47

2050 Strategy as well as individual place making and innovation strategies currently being developed.

9. Digital ethics and privacy The importance of organisational ethics in dealing with people’s personal information is critical for Council’s relationships and reputation both with our community and beyond. Council collects, stores and utilises a plethora of information which we ensure is not circulated inside or outside our organisation. Gartner suggests that people are becoming more concerned about how their personal information is being used by organisations in both the public and private sector and that the backlash will only increase for organisations that are not proactively addressing these concerns. An organisation’s position on privacy must be driven by its broader position on ethics and trust. Gartner suggests a shift from the concept of privacy to ethics will move organisations from a position of compliance to doing the right thing and more closely meeting people’s expectations. This will become increasingly important for Council to respond to as people’s and our own expectations shift.

10. Quantum computing Quantum computing (QC) is a type of non-classical computing that operates on the quantum state of subatomic particles (for example, electrons and ions) that represent information as elements denoted as quantum bits (qubits).

The parallel execution and exponential scalability of quantum computers means they excel with problems too complex for a traditional approach or where traditional algorithms would take too long to find a solution.

Industries such as automotive, financial, insurance, pharmaceuticals, military and research organisations have the most to gain from the advancements in quantum computing. Council will learn about and monitor quantum computing technology as it matures through 2022 and look to implement from 2023. We will increase our understanding of how it can apply to our operations so that we are in a position to benefit from QC.

48

Georges River Council // Digital Resource Management Plan 2020/21

49

How will we get there?

Our guiding principles We have developed clear principles to guide the way that our digital resources are implemented and managed. These principles underpin and frame our decision making on digital projects.

Customer Centric We will be a customer centric delivering system availability, capacity and quality of service.

Financially responsible We will source and assess technology and software delivering excellent return on investment and business sustainability and look for opportunities to leverage for profitability.

Sustainable, resilient and compliant We will be committed to good governance by driving a sustainable, resilient and compliant organisation.

Business Intelligence We will develop and commit to utilise business reporting that facilitates open, transparent and accountable decision making.

Move to Improve We will support and deliver a continuous improvement and innovative culture.

Our priorities Strategic Objective 1

Priority

Enable Committed Governance

1.1 Continuously adapt Council’s information security framework against an ever-changing legislative compliance and threat landscape 1.2 Deliver sustainable, resilient systems and technical infrastructure to support our City 1.3 Leverage cost optimisation and enable proactive procurement of all Council digital assets

Empower Digital Government

2.1 Improve citizen engagement, communication and services 2.2 Continue to expand mobile technology and digital workplace program 2.3 Continue to invest and enhance Artificial Intelligence and automated solutions 2.4 Support interoperability with State and Federal Digital Government initiatives

3

Undertake Continuous Improvement and Innovation

3.1 Grow a digitally skilled and capable workforce 3.2 Continue to cultivate key strategic strategic and collaborative partnerships 3.3 Enable Council’s priority strategies 3.4 Continue iterative improvements in business process, staff and operational efficiencies through the Move to Improve Program

4

Embed Business Analytics

4.1 Embed business reporting that facilitates an open, transparent and accountable organisation 4.2 Establish an open data exchange for our community 4.3 Ensure governance framework exists to maintain data integrity for Council data.

The actions Council will undertake to support these objectives and priorities are outlined in the detailed Action Plan in Section 5. The Digital Resource Management Plan will evolve as Council continues its journey from transition to transformation and innovation.

50

Georges River Council // Digital Resource Management Plan 2020/21

Challenges and Risks Recognising the challenges that impact Council’s ability to deliver and maintain digital assets and resources is important when planning for the future, this gives us an opportunity to build a robust Plan. The priorities and actions developed under each Strategic Objective in our Action Plan aim to mitigate these challenges and risks.

1. Resources In order to deliver the desired outcomes, adequate resources need to be assigned. With competing priorities and expectations, people, budget and time resourcing is the biggest challenge in the digital environment. While Council is aiming to increase the use of autonomous things, the systems and infrastructure still need human resources to build, support and maintain them.

2. Security With the increase of online services and cloud computing, maintaining privacy and security is a high priority to ensure the digital safety of Council, its customers and our community. The increase in cyber threats and changing legislation requires Council to remain vigilant to ensure electronic safety through compliance.

3. Change In improving and innovating digital assets and resources Council needs to ensure that good change management is employed so that we can focus on digital literacy of staff, customers and the community. We need to make sure that as the complexity of systems and technology increases it is responsive to both our organisation and community.

4. Reputation An increase in the use of social media and the online distribution of unreliable information creates reputational challenges for Council. Providing correct and real time information that can be disseminated widely is becoming increasingly important and challenging. Our users may create filter bubbles for social media, website content and other digital services in which case they will only follow or search for the content they choose and may miss the whole picture.

5. e-Inclusion

One of the challenges in an increasingly digital world is creating e-inclusion. It is important to ensure that users who do not have the same access to these digital services or required devices are not disadvantaged.

Council also recognises that not everyone will have the same interest or access and that innovation does not mean leaving these people behind, but rather finding inclusive solutions and creating a balance between people and a system focus.

6. Capacity Gaps Council recognises capacity gaps within the organisation is another barrier towards our digital evolution that needs to be mitigated. Council’s workforce needs to be digitally literate and have access to the systems and tools that they need. We have staff of varying capability levels and need to ensure we support and up-skill our teams to embrace new technologies and devices that will benefit their ability to work smarter, not harder.

Critical to our success is that we attract the right skillset to ensure digital assets and resources can be delivered, supported and maintained in house rather than relying on third parties or external consultants. This also impacts resourcing in terms of people, budgets and time. A mixed digital literacy creates capacity gaps in levels of training required in the introduction of new systems and tools.

7. Autonomous Things and Decision Making Although the future of autonomous things is exciting, there are still numerous challenges and risks that need to be considered including societal acceptance. While many people will be happy to move to automated information and services, many may still trust human interaction and to be able to speak to a person who they feel will understand their needs. At this time, artificial intelligence does not yet have the same capability for decision-making and therefore cannot take into consideration unique circumstances and situations.

8.Sustainability and Resilience Despite technological advances in e-government, the digital world still caries challenges and risks to the sustainability and resilience of an organisation and community. Increased use of technology has social, economic and environmental effects that need to be considered as we progress on our digital journey.

51

Implementation, monitoring and review We have developed a comprehensive Action Plan to ensure we meet our strategic objectives for effective digital resource management. This Plan will help us to make sure the actions are undertaken at the right time to build on our digital capability and respond to organisational and community requirements. Council’s Chief Information Officer (CIO) is responsible for the implementation, monitoring and review of this Plan. Each action will be implemented by the CIO in collaboration with relevant teams across the organisation.

We will review this Plan and our success in meeting our strategic objectives in 2022 against the following targets.

Our progress will be reviewed annually.

Strategic Objective 1

3

Enable Committed Governance

2022 Target - - -

100% compliance with regulatory requirements 99.5 % availability of digital infrastructure performance. (Including CCTV and public WiFi network) 80% digital assets replaced in line with Digital Resource Asset Plan

Empower Digital Government

- - - -

100% of agreed key services digitally transformed 90% of staff services available on any device, anytime 90% of agreed automation and artificial intelligence initiatives implemented 80% compliance with State and Federal interoperability requirements

Undertake continuous improvement and innovation

-

100% of new staff trained in the use of digital resources.

100% of digital resource courses available for refresher training 80% of budgeted priority strategy projects enabled (Georges Rive 2050, Innovation and Smart Cities) 80% of Move to Improve endorsed initiatives implemented 80% of budgeted Digital Resource Management Plan implemented

- - -

4

Embed business analytics

- - -

52

90% of real time data analytics dashboards for operational plan KPIs established to support accountability 100% compliance to Government Open Data Exchange Standards 90% compliance with Data Integrity measure

Georges River Council // Digital Resource Management Plan 2020/21

Digital Resource Management Action Plan This Action Plan was informed by extensive organisational engagement and has strong synergies with the Community Strategic Plan (CSP) 2018-2028, specifically the goal directly relates to the CSP. Our Action Plan focuses on the priorities and actions linked to each Strategic Objective and articulates timeframes for completion.

Goal 1

Digital Resource Management

Objective

Priority

Action

Timeline

Progress

Enable Committed Governance

Continuously adapt Council's information security governance against an ever changing legislative compliance and threat landscape

Comply with changes in legislation and government policy

19/20

In Progress

Educate staff, customers and community to increase awareness of cyber security

19/20

In Progress

Implement Annual Audit agreed recommendations

19/20

In Progress

Deliver sustainable, resilient systems and technical infrastructure to support our City

Conduct a review of Council's enterprise architecture

20/21

Not commenced

Review and communicate Council's Digital Resource portfolio and software catalogue

20/21

Not commenced

Establish Technical Infrastructure resilience

19/20

Completed

2

3 4 5

Digital Resource Management

Enable Committed Governance

6 7

Digital Resource Management

Enable Committed Governance

Leverage cost optimisation and enable proactive sourcing of all Council assets

Forward procurement plans for digital resources

19/20

In Progress

Undertake a cost optimisation review

20/21

In Progress

Demonstrate a culture of continuous improvement 10 and effective governance

Empower Digital Government

Improve citizen engagement and services

Establish and implement Council's Digital Communication Strategy

21/22

In Progress

Continuous Review and improvement to Council's website presence ensuring relevance, performance and responsiveness.

19/20

In Progress

8 9

53

Goal

Objective

Priority

Action

Timeline

Progress

Empower Digital Government

Continue to expand mobile technology and digital workplace program

Establish digital workplace to enable work anywhere, anytime on any device

20/21

In Progress

Establish a common digital signage framework to enable effective citizen engagement

19/20

Completed

Improve citizen engagement and services

Enable Customer Request Management

19/20

In Progress

Enable Digital transformation for key services

21/22

In Progress

Establish Electronic Lodgement

20/21

Not Commenced

Enable interoperability of State and Federal digital government initiatives

20/21

In Progress

Automate invoice processing and payment

21/22

Not Commence

Automate incoming receipting of customer documents

20/21

In Progress

Enable digital signatures

20/21

Not Commence

20

Automate Data Integrity

20/21

In Progress

21

Streamline Application Management processing

21/22

In Progress

Develop digital skills literacy program

21/22

In Progress

Review eLearning platform

20/21

Not Commenced

Develop effective, diverse and accessible digital resource training program

21/22

In Progress

Establish roadmaps for key digital resources

21/22

In Progress

11 Digital Resource Management 12

13 Demonstrate a culture of continuous 14 improvement and effective governance 15

Empower Digital Government

16

17 Demonstrate a culture of continuous 18 improvement and effective governance 19

54

Empower Digital Government

22 Demonstrate a culture of continuous 23 improvement and effective governance 24

Undertake continuous Improvement and Innovation

25 Digital Resource Management

Undertake continuous Improvement and Innovation

Continue to invest and enhance Artificial Intelligence and automated solutions

Grow a digitally skilled and capable workforce

Continue to cultivate key strategic partnerships

Georges River Council // Digital Resource Management Plan 2020/21

Goal 26 Demonstrate a culture of continuous improvement and effective governance

Objective

Priority

Action

Timeline

Progress

Undertake continuous Improvement and Innovation

Enable Council’s strategic and priority plans (e.g.

Georges River 2050, Innovation and Smart cities strategies)

Review Digital Resource Management Plan to ensure that it supports the Innovation Strategy and aligns with Georges River 2050 Leading for Change

21/22

Not Commenced

Review Digital Resource Management Plan to ensure that it supports Council’s priority strategies and plans e.g.

Cultural, Innovation and Smart City Strategies

21/22

In Progress

27

28 Digital Resource Management

Undertake continuous Improvement and Innovation

Continue iterative improvements in business process, staff and operational efficiencies through the Move to Improve Program

Facilitate Move to Improve Program with all management groups

21/22

In Progress

28 Demonstrate a culture of continuous improvement and effective 30 governance

Embed Business Analytics

Embed business reporting that facilitates an open, transparent and accountable organisation

Establish operational real time reporting dashboards to support efficient services to our community

21/22

In Progress

Facilitate data sources to enable City dashboard for our community and customers

21/22

Not Commenced

31 Digital Resource Management

Embed Business Analytics

Ensure governance framework exists to maintain data integrity for Council data

Establish data integrity to ensure our community has up to date information

20/21

In Progress

32 Demonstrate a culture of 33 continuous improvement and effective governance

Embed Business Analytics

Enable an open data exchange for our Community

Formalise a City Data Policy

19/20

In Progress

Establish an open data exchange for our community

21/22

Not Commenced

55

56

Georges River Council // Asset Management Plan 2020/21

Asset Management Plan 2020/21

57

What is the Asset Management Plan?

The Asset Management Plan sets out the broad framework for undertaking structured and coordinated management of Council’s infrastructure assets. It outlines key principles that underpin our approach to providing the assets that are essential to our community. The Strategy highlights the long-term funding challenges Council must address to meet the commitments outlined in the Community Strategic Plan and deliver the level of service desired by the community over the next 10 years.

Overview Georges River Council manages over $1.2 billion of infrastructure assets that provide essential services to our community. These assets include roads, buildings, footpaths, drainage, sporting facilities and recreational open space. The level of service delivered by these assets is largely determined by the way they are maintained and managed.

The Asset Management Strategy guides the planning, construction, operation and maintenance of community infrastructure to meet the commitments outlined in the Community Strategic Plan. The Asset Management Strategy will continue to evolve as the strategic objectives of Council develop and change.

The Strategy highlights the long term funding challenges Council must address to deliver the level of service desired by the community now, and in the future. Council will continue to improve on its asset management practices thereby demonstrating an ongoing commitment to the effective and responsible administration of public infrastructure.

Asset Planning & Reporting Council is committed to meeting the requirements of the NSW Integrated Planning and Reporting Framework.

This document has been prepared in accordance with the IP&R guidelines.

This is the second review of the Asset Management Strategy and Plan for Georges River Council and forms an integrated component of Council’s overall Resourcing Strategy.

58

Georges River Council // Asset Management Plan 2020/21

Asset Management Framework The Asset Management Framework consists of a number of components including an Asset Management Policy, Asset Management Strategy and Asset Management Plan. The Asset Management Policy and Strategy are provided in the Resourcing Strategy along with relevant sections of the Asset Management Plan.

This allows the document to be presented in a way that facilitates understanding and engagement with the community.

Asset Management Policy Council’s Asset Management Policy guides the strategic management of Council’s assets. The Policy defines the Council’s vision and service delivery objectives for asset management in accordance with legislative requirements, community needs and affordability.

The Asset Management Policy applies a corporate approach to asset management within all operational areas of Council. The infrastructure asset categories covered under the policy are considered critical to the council’s operations and include: •

Roads

•

Buildings

•

Stormwater Drainage

•

Open Space & Recreation

Key themes of Council’s Asset Management Plan The Asset Management Policy was adopted by council in 2016. The strategic objectives of the policy are as follows:

Asset Management Strategy

•

Ensuring that Council’s services and infrastructure are provided in a sustainable manner, with the appropriate levels of service to residents, visitors and the environment.

Georges River Council’s asset management strategy has been developed in the context of the following key questions:

•

Safeguarding Council assets including physical assets and employees by implementing appropriate asset management strategies and appropriate financial resources for those assets.

•

Creating an environment where all Council employees take an integral part in overall management of Council assets by creating and sustaining asset management awareness throughout the Council.

•

Ensuring resources and operational capabilities are identified and responsibility for asset management is allocated.

•

Demonstrating transparent and responsible asset management processes that align with best practice.

•

Meeting legislative requirements for asset management.

•

Where are we now? Our current asset management situation and current asset management practices?

•

Where do we want to be? - The desired future state and strategic outcomes

•

How will we get there? Strategies, actions and performance measures to bridge the gap between current and desired positions?

https://www.georgesriver.nsw.gov.au/Council/ Governance/Codes,-Policies-and-Registers

59

Where are we now?

Our Assets 1 Stadium 10 boat ramps

Roads and Footpaths 394km roads 487km footpaths Asset Value = $693 million

281 parks and reserves 3 tidal pools 41 bushland reserves 117 playgrounds 2 golf courses 7 wi-fi hotspots

Stormwater 254km stormwater pipes 8229 stormwater pits 132 stormwater quality devices Asset Value = $150 million

Buildings and other structures 154 Buildings

18 operational buildings

(Civic centre and works depot, SES Facilities)

Open Space 473 hectares

15 tennis courts 28 netball courts 57 sporting Fields Synthetic Fields

2 full fields and 2 mini fields

Asset Value = $80 million

60

Georges River Council // Asset Management Plan 2020/21

5 libraries

6 childcare facilities 7 community halls and facilities

2 swimming pools/leisure centres and associated buildings 92 toilets, amenities and park facilities 19 other buildings

(sports stadiums, water treatment plant, etc.)

4 investment properties

Asset Value = $273 million

The following tables provide a snapshot of Council’s Asset portfolio in terms of quantity, condition and value.

Inventory Asset Class

Quantity

Asset Class

Quantity

Roads - Pavement

394 km

Parks & Reserves

281- (473Ha)

Roads - Kerb

785 km

Playgrounds

117

Roads – Traffic devices

15,977

Buildings

154

Roads - Carparks

103

Foreshore infrastructure

257

Roads - Footpath

487 km

Trees

26,800

Stormwater Drainage

254 km

Stormwater - Pollution Devices

132

Value Major Asset Class

Replacement Cost (CRC)

Depreciated Replacement Cost (WDV)

Depreciation Expense

Buildings

$257,129,000

$179,312,000

$4,463,000

Other Structures

$15,836,000

$9,442,000

$383,000

Roads

$589,246,000

$409,528,000

$6,033,000

Footpaths

$103,824,000

$65,522,000

$973,000

Stormwater Drainage

$149,530,000

$75,669,000

$1,196,000

Open Space & Recreation

$79,642,000

$51,868,000

$2,609,000

Total

$1,195,207,000

$791,341,000

$15,657,000

Asset class value as a percentage of total replacement cost 7% 7%

22% 22%

13% 13%

Buildings - $257M Buildings - $257M

9%

1% 1%

9%

Other Structures - $16M

Other Structures - $16M

Roads - $589M

Roads - $589M

Footpaths - $104M

Footpaths - $104M

Stormwater Drainage - $150M

Stormwater Drainage- -$80M $150M Open Space & Recreation

49%

Open Space & Recreation - $80M

49% 61

0% 0% 0% 0% 2% 0%

Very poor

Condition Asset Condition by Asset Class

Chart Title

Overall Condition

Open Space

Stormwater Drainage

Footpaths

Roads

105 448 451 892 744 119 759

Buildings 0%

20% Very Good

62

40% Good

Georges River Council // Asset Management Plan 2020/21

Fair

60% Poor

Very poor

80%

100%

2 2.00 2 4 2 1.00 2 5 2 3.00 2 (blank) 2 2.00 2 Grand Total 2 1.00 2 2 3.00 2 2 1.00 2 Pavement Condition Index 3 2.00 3 2% 1% 2 2.00 2 Roads are Council’s2.00 largest asset to manage, both in 2 2 asset quantity and asset value. An important measure 18% 2 1.00 2 18% of road assets is the Pavement Condition Index (PCI).

2 PCI is a rating of 2.00 2 The 1 to 5 using a standardised system Very Good 1 Pavement Management.

1.00 1 months for In the past 12 Good Council has undertaken 1 1.00 significant work 1to improve the Fair pavement management 1 1.00 process including 1 predictive modelling of long-term changes in PCI based on a Poor 3 1.00 3 variety of funding scenarios. Figure 2 provides the PCI Very poor 2 3.00 in 2016 and 2018.

2 profile for all road assets 1 1.00 1 61% 1.00of roads at each 2PCI level. As It 2shows the proportion demonstrated, a large are at 1 2.00proportion of the assets 1 the higher end of the PCI profile noting overall good 1 2.00 1 condition. The average PCI for the road network in 2016 2 2.00 2 was 1.69 and in 1.46 in 2018, this out performs Council’s 2 2 remains target PCI of 2.8 out1.00 of 5. While overall PCI 3 2.00 3 deteriorated favourable, individual data on cracking has 2 2 Additional which is an indicator2.00 of inadequate funding. pavement base testing 1 3.00is identified as a 1key action in the upcoming asset management program to 3 1.00 3 validate the concerns relating to pavement distress parameters.

1 2.00 1 3 3.00 3 2 1.00 2 Average2.00 condition - PCI 2 2 Whole network 2 5 2.00 2 Very poor 1.00 2 2 3 1.00 3 4 2 1.00 2 Poor 3 1.00 3 Annual_Do_nothing 1 3 1.00 1 Annual_4M Fair 2 2.00 2 Annual_4.5M 2 1.00 2 Annual_5M 2 2 1.00 2 Good Annual_PCI_2.83 1 1.00 1 Annual_Unlimited 3 1 3.00 3 Very good1.00 2 2 2 2.00 2 0 Figure 3 Predictive modelling 2 2018 1.00 2020 2022 2024 2 2026 2028 2030 of long-term changes in PCI 2 3.00 2 based on a variety of funding Year 2 2 2.00 scenarios.

3 3.00 3 2 2.00 2 1 1.00 1 Based on the current and projected network 2 1.00 2 status, Council should consider annual spending of $5.5M to maintain the network 2 1.00 2 within a PCI range of 2.5 to 2.8 over the next 3 10 years.

2.00 3

2549

PCI

2018 Pavement Condition

2 1.00 2 Without additional road renewal funding each year the predictive modelling suggests 1 1.00 1 that the network average pavement condition will fall below the community desired 4 2.00 4 service level of 2.8 in approximately 7 years.

1 2.00 1 2 1.00 2 2 2.00 2 2 2.00 2 2 1.00 2

63

Community Strategic Plan Council conducted a program of extensive community engagement to develop Georges River's first Community Strategic Plan (CSP). The Community Strategic Plan was adopted by Council on 25 June 2018.

The Community Strategic Plan identifies the following six pillars that underpin our work for the community.

1.

2.

3.

4.

5.

6.

A protected environment and green open spaces Quality, well planned development Active and accessible places and spaces A diverse and productive economy A harmonious and proud community with strong social services and infrastructure Leadership and transparency

The Asset Management Strategy has been prepared in line with the six pillars outlined in the Community Strategic Plan. Council’s asset portfolio plays both a direct and an indirect role in achieving the strategic objectives of Council and supporting the service delivery needs of the community.

64

Georges River Council // Asset Management Plan 2020/21

The following table indicates how Council’s assets link to the key strategies and goals of the CSP. Pillar

Goal

Roads

Stormwater Drainage

Open Space & Recreation facilities

Buildings

A protected environment and green open spaces 1.1

Council's environmentally sustainable practices inspire everyone to protect and nurture the natural environment





1.2

The LGA's waterways are healthy and accessible



1.3

Everyone has access to beautiful parks and open spaces

 

1.4

Local heritage is protected and promoted

 

Quality, well planned development 2.3

Council-led development and assets provide quality, long-term benefits to Everyone























Active and accessible places and spaces 3.1

The LGA has a range of transport options to connect people, goods and businesses.



3.2

Roads, footpaths and cycleways are safe, accessible and free of congestion.



3.3

Everyone, including people with disability, navigates The LGA in safety.



3.4

Everyone has access to a range of active and passive recreation facilities

A diverse and productive economy 4.1

Local businesses are supported to help protect jobs and create employment opportunities.





A harmonious and proud community with strong social services and infrastructure 5.1

We create and support events that celebrate community and cultural identity and benefit the economy.

5.2

Affordable and quality housing options are available.

5.3

The community is socially and culturally connected.

5.4

Diverse, vibrant community facilities and spaces are connected, well maintained and accessible.

5.5

The community is safe and healthy.









  





Leadership and transparency 6.2

Open, informed and transparent decision-making supports The interests of The community.









6.4

Council's assets and resources are managed responsibly and with accountability









6.6

Council has a regional-approach to service delivery and facilities.







 65

Risk Management Plans Council recognises that risk exists in all aspects of its operations. It takes seriously the impact of risk on business continuity and service delivery, and is committed to an approach that embraces a strong risk management culture and fulfils Council’s duty to provide a safe environment.

Council has adopted an Enterprise Risk Management Strategy and corporate risk register, which is used to identify and manage significant risks. The framework is founded on principles from the Australian and New Zealand ISO Standard on Risk Management (AS/NZ ISO 31000:2009). It guides the monitoring and reporting of risk profiles and the required actions to reduce the level of risk presented to Council and the community. Linked to the corporate risk register are asset specific risk management plans that have been incorporated into the asset management plans. These assist in the identification and management of significant risks for each asset class.

They provide detailed evaluation of the significant risks, risk treatments and risk monitoring activities.

66

Georges River Council // Asset Management Plan 2020/21

Bus Shelters Very Important

Children's Playground

Quite Important

Sporting Facilities

Not Really Important

Commercial Streetscapes

Not Important at all

Picnic Facilities in Local Parks

Where do we want to be?

Community Buildings

Cycleways

0

20

40

60

80

100

Desired levels of service

14 13 12 11 10 9 8 7 6 5 4 3 2 1

The chart below displays the respondents’ satisfaction with the existing assets on a scale of 0-10 where 0 is dissatisfied is extremely Asset Very Satisfied extremely Overall Satisfied and 10Very Dissatisfiedsatisfied. Check!

Council’s service levels have been developed through Overall, of satisfaction. The Public Amenities community consultation process to gauge 0 it shows very high levels 0 0 an extensive areas of Local Footpaths of the infrastructure assets that Council 0 higher dissatisfaction 0 will be investigated to 0 expectations target 0the service level improvements that would best Entertainment Centre / Museum 0 0 provide. The project involved a representative telephone improve the level of satisfaction. survey of 400 residents to explore the importance of, and Picnic Facilities 0 0 0 satisfaction with, existing assets as well as priorities for Community Buildings 0 0 0 When0asked about construction of new assets, most the construction of new assets. A deliberative community Commercial Streetscapes 0 0 respondents indicated that it was very important or0quite forum was also held with ratepayers to explore the Local Roads 0 0 important all the type of assets acceptable condition levels for the asset categories and Other Sporting Facilities 0 to continue to construct 0 0 Council provides. where funds should be spent in the future.

Drainage 0 0 0 Kerb and Gutters The Field/ survey demonstrated Sports Playing Surfaces that ratepayers felt that all services provided Children`s Playground by Council’s infrastructure assets are important and they were generally satisfied with the Libraries current condition and service provided.

Parks

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

Parks Libraries Children`s Playground Sports Field/ Playing Surfaces Kerb and Gutters Drainage Very Satisfied

Other Sporting Facilities Local Roads

Overall Satisfied

Commercial Streetscapes

Very Dissatisfied

Community Buildings Picnic Facilities Entertainment Centre / Museum Local Footpaths Public Amenities 0

2

4

6

8

10

Figure 4: Community satisfaction with assets

Scale of 0-10 where = 10 is extremely satisfied and 0 = extremely dissatisfied

67

Asset category

The Community Wants (Community LOS)

How we Deliver this (Technical LOS)

Average Acceptable Condition Rating (in a scale 1-5)

Sealed Roads

Sound smooth road surface to travel safely on

Sealed roads will be resealed or 2.9 rehabilitated when roughness counts exceeds 150 or more

Kerb and Gutter

Water doesn’t pond in driveways for more than 2 days after a storm

K&G rehabilitated or renewed at 2.5 or prior to condition 3

Footpaths

Safe, sound, non-slippery pathways provided to enable safe travel throughout the network

No more than 50% of all identified trip hazards have a step greater than 20mm.

Parking & Bus Shelters

Provide an efficient parking Annual condition assessments and bus shelter areas that are to ensure these assets are aesthetically pleasing maintained at condition 3 or above

2.7

Stormwater Drainage Assets

Level of flood protection provided to properties and roads;

Annual condition assessments to ensure these assets are contained at condition 3 and adopt a robust Floodplain Risk Management plan

2.5

Buildings Assets

Serviceable and accessible throughout the year with safety and comfort

Compliance with building & fire safety regulations

2.7

Buildings Assets

Serviceable and accessible throughout the year with safety and comfort

Compliance with building & fire safety regulations

2.7

2.7

The deliberative community forum included 102 ratepayers based on quotas set on age, gender, location and language spoken at home to reflect community make-up. The forum focused on footpaths, local roads, stormwater drainage, kerb and gutters, community buildings, and parks and reserves. The community was presented with photographs representing each of the five condition levels for each asset type and feedback was sought as to what they felt was an acceptable standard.

For each of the asset classes the community agreed that a condition rating between 2 and 4 was the acceptable standard.

68

Georges River Council // Asset Management Plan 2020/21

9 8 7 6 5 4 3 2 1

Asset Subclass Cycleways Community Buildings Picnic Facilities in Local Parks Commercial Streetscapes Sporting Facilities Children's Playground Bus Shelters Public Amenities Local Footpaths Figure #: community satisfaction with assets

Very Important Quite Important Not Really Important Not Impo 23 39 28 25 42 29 27 37 30 33 41 21 36 42 18 42 38 16 43 41 14 44 38 17 57 33 8 scale of 0-10 where 0 is extremely dissatisfied and 10 is extremely satisfied

Local Footpaths Public Amenities Bus Shelters Very Important

Children's Playground

Quite Important

Sporting Facilities

Not Really Important

Commercial Streetscapes

Not Important at all

Picnic Facilities in Local Parks Community Buildings Cycleways 0

20

40

60

80

100

Figure 5: Perceived importance of constructing new assets

14 13 12 11 10 9 8 7 6 5 4 3 2 1

This feedback forms the basis for future asset maintenance and renewal funding allocations. Deterioration models are used to determine the optimal amount of funding required for each asset class to maintain the assets at the average condition level Asset Very Satisfied determined by the community.

Public Amenities Local Footpaths Entertainment Centre / Museum Picnic Facilities Community Buildings Commercial Streetscapes Local Roads Other Sporting Facilities Drainage Kerb and Gutters Sports Field/ Playing Surfaces Children`s Playground Libraries Parks

Overall Satisfied 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Very Dissatisfied 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Check!

0 0 0 0 0 0 0 0 0 0 0 0 0 0

Parks Libraries Children`s Playground Sports Field/ Playing Surfaces Kerb and Gutters Drainage Other Sporting Facilities

Very Satisfied

69

Implementation, monitoring and review Monitoring Asset Management Performance Council will monitor asset performance through the following performance indicators:

Indicator

Purpose

Benchmark

2019

2018

2017

1

Infrastructure Renewals Ratio

To assess the rate at which these assets are being renewed relative to the rate at which they are depreciating.

Min 100%

104.04%

76.62%

116.27%

2

Infrastructure Backlog Ratio

This ratio shows what proportion the backlog is against the total value of a Council’s infrastructure.

Max 2.00%

1.58%

2.14%

1.81%

3

Asset Maintenance Ratio

Compares actual v’s required annual asset maintenance. A ratio above 1.0 indicates Council is investing enough funds to stop the infrastructure backlog growing.

Min 100%

105.35%

114.60%

127.91%

Table 5. shows the industry benchmark and Council’s results for the past 3 years.

The ratios provide an indication as to whether present budgets are funding the correct share of the consumption of the assets each year.

The following commentary was provided for the 2019 Asset Management Performance result.

Council had a large number of carry over projects from 2018 that were completed in 2019 increasing the renewal ratio. There was also an increase in renewals spent on Buildings and Stormwater. The 2019 result offsets the result in 2018.

With regard to Backlog Ratio, comprehensive conditions reports were performed for Roads and Footpaths in 2019 which indicated conditions in these categories were better than expected. Assets were externally revalued upwards in 2019.

70

Georges River Council // Asset Management Plan 2020/21

Maintenance The annual operating and maintenance costs of Council’s assets for the past 3 years is presented in table 6.

Asset Class

2016-17

2017-18

2018-19

Open Space

$8,781,000

$11,428,000

$12,119,000*

Buildings

$5,422,000

$4,008,000

$5,744,000

Roads

$5,608,000

$4,076,000

$4,105,000

Footpaths

$2,488,000

$2,208,000

$2,892,000

Street Lighting

$2,794,000

$2,155,000

$2,448,000

Stormwater Drainage

$1,114,000

$1,476,000

$1,451,000

Annual Total

$26,207,000

$ 25,351,000

$28,759,000

71

Life cycle management and expenditure forecasts The long term priority presented in this strategy reflects Council’s objective to manage its assets at the identified levels of service while optimising life cycle costs. Life cycle management involves consideration of all management options over the life of an asset from creation to disposal. This includes operational and maintenance activities, restoration and renewal activities, enhancement and finally decommissioning and disposal.

The following table presents a summary of ten-year expenditure forecast for Council’s infrastructure assets.

Financial Indicator

10yr Financial Projection1 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Operations ($M)

13,534

13,845 14,163

14,489

14,822

15,163

15,512

15,869

16,234

16,607

Maintenance ($M)

15,149

15,498 15,854

16,219

16,592

16,973

17,364

17,763

18,172

18,589

Projected Actual Renewals ($M)

16,665

9,361

9,797

10,022

10,253

10,488

10,730

10,976

11,229

9,577

Funding allocated towards the rolling works program will be determined each year when the annual budget is formulated and adopted. The size of Council’s annual budget allocations for its capital works and, importantly, how these budgets are apportioned to the various assets, will have major implications for Council’s future financial liability.

72

Georges River Council // Asset Management Plan 2020/21

Infrastructure sustainability Council’s forecasted maintenance budget is in line with required maintenance expenditure for the next 10 years achieving an asset maintenance ratio above 100%.

However without additional funding allocation towards asset renewal expenditure, projections indicate that Council will fall below the asset performance indicators for Infrastructure Renewals Ratio and Infrastructure Backlog Ratio. As of 30 June 2019, Council’s infrastructure backlog was reported at $14.3 million.

Council’s infrastructure backlog is projected to grow at approximately $2.3 million per year.

Financial Indicator

Recent Council spending on asset renewal has been significantly improved by the high value of additional capital grants Council has been successful in receiving in the past 4 years. Whilst these projects will have many positive benefits for our community it is important to differentiate between expenditure that has effectively renewed an existing asset and those which have created new assets. The creation of new assets with grant funding only adds to the challenge of funding Council’s operating, maintenance and renewal responsibilities.

Council’s annual renewal expenditure is projected to significantly reduce following the completion of this large grant funded capital works program.

10yr Financial Projection1 2019/20

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Projected Required Renewals($M)

15,466

17,817 20,186

22,574

24,980

27,404

29,846

32,305

34,781

37,274

Projected Actual Renewals($M)

16,665

9,361

9,577

9,797

10,022

10,253

10,488

10,730

10,976

11,229

Projected Depreciation($M)

16,080

16,290 16,762

16,948

17,542

17,632

18,359

18,345

19,213

19,086

Infrastructure Backlog($M)

15,466

17,817 20,186

22,574

24,980

27,404

29,846

32,305

34,781

37,274

Renewals ratio Infrastructure Backlog ratio

103.638% 57.468%57.131% 57.806% 57.131% 58.147% 57.131% 58.489% 57.131% 58.834% 1.67%

1.88%

2.09%

2.28%

2.47%

2.64%

2.81%

2.98%

3.13%

3.28%

Notes: Projected Figures are the 10 year annual average $ amounts Council’s infrastructure assets have very long useful lives. This means that they deteriorate at an extremely slow rate. As a result it can take many years of underfunding asset renewal to become apparent to Council and the community. This can lead to complacency in decision making. A failure to set aside appropriate funding for assets today has a compounding effect (backlog) and will lead to the deferral of significant costs to future operating and capital budgets. The funding strategy, scenarios and challenges are detailed in the Long-Term Financial Plan.

73

How will we get there?

Improvement Plan

This is the first Asset Management Maturity Assessment for the amalgamated Georges River Council.

To meet the challenges outlined above and ensure that Council’s services and infrastructure are provided in a financially sustainable manner, Council must continue to improve our asset management practices.

Council’s maturity assessment for the core competencies is summarised in Figure 7. The Maturity Score Spider Graph shows the Current maturity for each maturity element as assessed by the organisation in blue below compared to the ‘core’ competencies (Level 3) required under the Australian National Assessment Framework (NAF) which are shown by the red line. It is expected that Council’s asset management maturity will change to core levels in all areas and develop towards advanced levels in the next 3 years.

This includes confirming resources and operational capabilities are identified and responsibility for asset management is allocated.

Georges River Council undertook an asset management maturity assessment to gain an improved understanding of the current asset management capability in order to improve the overall performance of the Council and it operations. The maturity assessment is based on the International Infrastructure Management Manual (IIMM).

As such this assessment provides Council with the opportunity to understand how its asset management practices, systems and processes compare with industry standards and other councils and also to measure their improvement in various areas of asset management capability.

74

Georges River Council // Asset Management Plan 2020/21

Current status of the council’s asset management practices, procedures, systems and training processes, asset data and information systems).

Specific actions to be undertaken to improve or enhance councils asset management capability, including resource requirements and timeframes is provided below.

Strategic Actions – Improvement Plan Council has developed high level strategic actions and specific operational actions to improve asset management practices. These actions, described in table 9, are closely aligned with the Community Strategic Plan and Delivery Program and form the asset management improvement plan.

75

Asset Management Improvement Plan Strategic Actions Council has developed high level strategic actions and specific operational actions to improve asset management practices. These actions, described in table 9, are closely aligned with the Community Strategic Plan and Delivery Program and form the asset management improvement plan.

Action

76

Responsibility

Priority

Timeframe

1

Demonstrate a culture of continuous improvement and effective governance throughout Council services. Implement an Innovation Strategy to provide a strategic approach to improvements to customer service, service delivery and performance improvement.

ET

High

Ongoing

2

Continue to develop transparent and responsible asset management processes that align with best practice. Convey consistency across the Asset Management Strategy, Asset Management Plan, Long Term Financial Plan, Asset Systems, data collection, condition reporting and service levels.

AE,MI,CFO

High

Ongoing

3

Develop asset accounting processes to identify all asset expenditure requirements into renewal, growth, maintenance or operational categories. Review corporate chart of accounts to establish cost centres and classifications for each category.

Document processes to reduce processing time for annual financial reporting requirements and external valuation processes.

AE,AA,SF

High

Year 1 2020/21

4

Review roles, resources and responsibilities for asset management. This includes establishing a good understanding of asset data, finance and budgets. Build capacity specifically in capitalisation reporting. Document communication protocols between Finance and Infrastructure departments.

AE,MI,CFO

High

Year 1 2020/21

5

Establish clear expectations and a consistent approach to calculating depreciation and backlog. Apply this approach across all asset classes to obtain the most accurate backlog. Assess the backlog against Council’s infrastructure priorities, financial budgets and Long Term Financial Planning.

AE,AA

High

Year 1 2020/21

6

Review and update established service levels by conducting follow up consultation program with the community including asset maintenance funding in the context of Council’s overall budget imperatives. Use this to inform a review of asset ownership and maintenance standards.

AE

High

Year 1 2020/21

7

Update inspection process for Maintain marine and foreshore assets to develop maintenance, renewal and upgrade program on prioritised marine and foreshore assets.

AE

High

Year 1 2020/21

Georges River Council // Asset Management Plan 2020/21

Action

Responsibility

Priority

Timeframe

8

Deliver Works, Assets and Mobility program to capture engineering operations activities with corporate asset management platform.

CIO,EO

High

Year 1 2020/21

9

Update asset management plan for Road and Footpath assets classes based on full network data capture.

AE

Medium

Year 1 2020/21

10 Incorporate pavement base deflection testing into pavement management to allow more detailed approach to deterioration modelling and treatment selection.

AE

Medium

Year 1 2020/21

11 Undertake pavement ‘health check’ at critical high traffic locations to determine structural assessment and allow eligibility for external funding opportunities.

AE

Medium

Year 1 2020/21

12 Develop maintenance and renewal programs for building asset class based on contractor asset inspections.

AE

Medium

Year 1 2020/21

13 Prioritise and plan asset maintenance renewal works to meet agreed service levels based on site inspections, infrastructure priorities and community importance.

AE

Medium

Year 2 2021/22

14 Review processes for making capital investment decisions. To be driven by Council’s strategic long term planning documents, Long Term Financial Plan and Community Strategic Plan. Explicitly detail the impact on the future operations and maintenance budgets, “whole of life” costs and risk management assessments.

ET,CFO,ME, SF, AE

Medium

Year 2 2021/22

15 Undertake bridge inspections compliant with level 3 structural assessment to allow eligibility for external funding opportunities.

AE

Medium

Year 2 2021/22

16 Include Kerb and gutter condition assessment as part of routine pavement management inspection program.

AE

Medium

Year 2 2021/22

Abbreviations of key roles

AA Asset Engineer CIO Chief Information Officer AA Asset Accountant ET Executive Team

SF EO CFO MI

Strategic Financial Management Specialist Executive Manager Engineering Operations Chief Financial Officer Manager Infrastructure 77

78

Georges River Council // Long Term Financial Plan 2020/21

Long term Financial Plan 2020/21

79

Executive Summary The Georges River community, along with the rest of Australia, is facing extraordinary challenges due to the current COVID-19 pandemic. Changes have been moving quickly and this is likely to impact our 2020/21 budget. Over the coming months Council will better understand the longer-term impact of COVID-19 on our community and on our operations. If major changes are required, these will be factored into the final adoption of the 2020/21 budget and/or quarterly reviews.

In light of the current events, Council has prepared a budget ready to deliver valued community services, projects and programs during the 2020/21 financial year.

The Long Term Financial Plan (LTFP) has been built using the budget for 2020/21 as the base and presents a financial projection of the next ten years based on the Community Strategic Plan and Delivery Program. The 10 year forecast illustrates the operating results and is based on projected known events.

These projections form a roadmap of the operating results, which provides Council an opportunity to: •

Assess different courses of corrective action and quantify the potential outcomes

•

Ensure sustainability through positive net results

•

Structure the operations, based on affordability and financial sustainability.

Over the past two financial years, the LTFP has illustrated Council’s poor and deteriorating financial outlook over the 10 year period. Prior to the events of COVID-19, Council has an adopted forecasted operating deficit (before capital grants) for 2020/21 of $13 million.

Failure to address the unsustainable financial position places Council in contravention of S.8b of the Local Government Act 1993 and will compel Council to cut and/or reduce services to ease the unfavourable gap between income and expenditure.

In preparing the draft 2020/21 Budget some difficult decisions have been required during this unpredictable time.

Therefore, in order to minimise Council’s projected operating deficit, protect cash reserves and weather any adverse impact of COVID-19, programs, services and projects have been reduced, deferred or deleted.

80

Georges River Council // Long Term Financial Plan 2020/21

The approach to these decisions has been balanced, in that they have been made across all areas of Council’s operations, including employee costs, Councillor costs and community assets.

In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $9 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted.

Based on this approach the adopted forecast deficit of $13 million has been reduced to a projected deficit of $3.2 million. Though these measures have been introduced and the projected deficit for 2020/21 has been reduced, the projection over 10 years still results in a deteriorating financial potential, accelerating in 2021/22.

Financial Governance Principles In preparing the Long Term Financial Plan (LTFP) and guiding financial decisions are the Integrated Planning and Reporting documents, the Local Government Act 1993 and financial principles.

Council conducted a program of extensive community engagement to develop Georges River's first Community Strategic Plan. The Community Strategic Plan and associated documents were adopted by Council on 25 June 2018.

The Community Strategic Plan was developed around six themes or pillars which were identified in the consultation process as important to the community.

These six pillars, which underpin our future work, are: 1.

2.

3.

4.

5.

A protected environment and green open spaces Quality, well planned development Active and accessible places and spaces A diverse and productive economy A harmonious and proud community with strong social services and infrastructure 6. Leadership and transparency The Community Strategic Plan is part of a suite of documents which include the Delivery Program and Operational Plan, which outlines our key actions over the next three years and annual budget, Fees and Charges.

These key documents feed into the Resourcing Strategy and Council’s long-term financial plan.

The Local Government Act 1993 (the Act), outlines the principles of sound financial management in which Council is governed by. Section 8B of the Act states that: • Council spending should be responsible and sustainable, aligning general revenue and expenses.

•

Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.

•

Councils should have effective financial and asset management, including sound policies and processes for the following: - - - -

•

Councils should have regard to achieving intergenerational equity, including ensuring the following: -

policy decisions are made after considering their financial effects on future generations, - the current generation funds the cost of its services.

In addition to the legislated principles of sound financial management, Council’s actions and strategies are balance on the following principles; Sustainability, Affordability, Accountability and Growth.

Sustainability

Ensure the long term sustainability of Georges River Council – this involves putting in place measures to fortify its income base (without depending on one-off receipts of grants or contributions) and managing its expenditure to optimum levels, maintain positive Net Operating Results.

Affordability

Operate within the realms of affordability by structuring expenditure within the boundaries of income received.

Plan and execute programs and projects after taking into account the affordability of the long term ongoing impact on future revenue and expenditure.

Accountability

Continue to be accountable to ratepayers for optimum management of income generated and expenditure incurred. Continue to be accountable to ratepayers for optimum management of Council assets and resources.

Growth

Approach all activities from the perspective of constantly improving the quality of services provided Deliver services that benefit the larger community.

performance management and reporting, asset maintenance and enhancement, funding decisions, risk management practices 81

Financial Sustainability Challenges Georges River Council takes great pride in its role of providing and maintaining high quality local services for our community. If Council is to continue to deliver the current level of services and facilities, we need to effectively plan for the future.

these funds are excluded, the Operating Results show increasing negative returns each year. This means that Council, in its current form, is unable to fund its operating expenditure from the operating income it receives.

Following extensive consultation with our community in 2018, Council adopted its first ever Community Strategic Plan which details the community’s aspirations for the Georges River area over the next 10 years. This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality.

It has also been demonstrated that there is an adverse widening gap between the increases to operating income and the increases to operating expenditure each year.

Council, in preparing the LTFP, recognised a number of challenges it will face in the near future.

The challenges, if unaddressed, will have an adverse impact on the long term financial sustainability of Council. These challenges are summarised: •

Experiencing declining profitability, amplified by the loss of income of $2.2m from the former Hurstville Council Special Rate Variation (SRV). Due to stop in 2021.

•

The compounded impact of the expiring SRV results in a forecast loss of $19.5m from 2021/2022 to 2028/2029.

•

Operating performance, net of capital grant income, remains negative with the deficit increasing each year.

•

Increase in Council’s Net Worth is dependent on the quantum of Capital Grants received and not on the operations being cost effective.

The operating results (actual and forecast), display a downward trend leading to negative results from 2021/22 onwards. There is a dramatic reduction in Rates income from 2021/22 onwards, due to the termination of the SRV that commenced over 10 years ago. The impact on the operating results is a loss of $2.2m income in that year, compounded each year thereafter.

In addition, Council's operating results are augmented by the value of capital grants received. These grants are for exclusive use on capital expenditure and are not to be used to fund operating expenditure. When 82

Georges River Council // Long Term Financial Plan 2020/21

There are two fundamental problems facing Council’s finances: 1. Council does not generate sufficient operating income to fund operating expenditure for its current service portfolio and program of works 2. Each year, increases in operating income are less than the increases in operating expenditure.

When reviewing the actual results of Georges River Council so far, Council has generated surpluses each year since amalgamation. However, these actual results have been favourably impacted by additional operating and capital grants received from the State Government, to assist with the transition to functioning as an amalgamated council. Despite the receipt of these additional operating grants, when capital grants are excluded, the operating results show a negative outcome.

In examining the financial statements relating to the former councils, the operating performance ratios in the 4 years leading up to 2014/15, are shown to be negative, with the exception of 2012/13 (for Hurstville) and 2014/15 (for Kogarah). In 2014/15, both Councils recorded depreciation charges which were considerably lower than the previous year. There were no statements or reasons provided for the lower depreciation charge, in either sets of financial statements.

Planning for our Future – Changes to Rates The amalgamation of two organisations whilst maintaining everyday services is a complex task that requires the involvement of the entire organisation and the support of the community.

Georges River Council has embraced the fresh start that the merge of the former Hurstville City and Kogarah City Councils presented, building the foundations for a strong organisation that will deliver outstanding results to our community and city.

Current legislation requires Council to have a harmonised rating structure adopted for the financial year commencing 1 July 2021. Therefore, Council is legally obligated to commence the harmonisation process again and will undertake extensive new community consultation over the coming year.

While Council’s income has increased and we have made savings as a result of the amalgamation of the former Kogarah and Hurstville Council in 2016, these changes have not kept pace with the increase in costs in providing services, especially as our population continues to grow.

The terms of the amalgamation specified the preservation of the rates structures of the Hurstville and Kogarah City Councils for a period of four years plus 1 year optional extension.

At the Extraordinary Council Meeting held on Monday 10 February 2020, Council considered whether to proceed with an application to Independent Pricing and Regulatory Tribunal (IPART) to introduce in 2020/21 a harmonised minimum rate, harmonised rate in the dollar and also a new Special Rate Variation (SRV) to improve Council’s financial sustainability and replace the expiration of the former Hurstville Council SRV. The SRV application was prepared to reduce Council’s operating deficit by $8 million.

At that meeting, Council considered the results of the community consultation which outlined there were more than 6,000 responses received from residents.

The consultation found that 78% of respondents were supportive of introducing a consistent minimum rate across the city and 66% supported a minimum rate increase to $965.80. Additionally, 54% of respondents were supportive of Council applying to IPART for a SRV of 8.1% plus a rate peg of 2.5%.

Council resolved not to proceed with the application for the SRV or the harmonisation of rates in 2020/21 and instead to investigate staff reductions and salary savings as part of future cost saving measures.

83

Financial Models Overview Model 1 - Draft 2020/21 Budget for Exhibition Council has an adopted forecasted operating deficit (before capital grants) for 2020/21 of $13 million. In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $9 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted. The model outlines the forecast result based on the reduced 2020/21 budget. Based on this approach the adopted forecast deficit of $13 million has been reduced to a projected deficit of $3.2 million in 2020/21. However, in 2021/22 Council will have to reduce its rate income by $2.2 million (expiring former Hurstville SRV) and this results in the action taken in 2020/21 simply delaying the worsening results by one year.

Model 2 – Retain the Expiring Special Rate Variation (SRV) and Reinstate 2020/21 Budget Savings As outlined in model 1, a number of items were removed from the 2020/21 budget to reduce the projected operating deficit. Model 2 provides a forecast of a scenario in which a portion of the operational items removed in 2020/21 are reinstated and the expiring SRV of $2.2 million is retained in Council’s total rate income. This model highlights that even with retaining the $2.2 million in rate income in 2021/22, the operational savings items reinstated result in an accelerated worsening financial forecast compared to model 1.

Model 3 - $60 million Capital Program Expansion and Financially Sustainable Correction This model provides a forecast of a scenario in which Council resolved to increase the standard capital program by $60 million over a number of years and correct the worsening operating performance deficit. This involves additional funding for the capital expansion via a $30 million loan and $30 million in additional capital grants or contributions.

In addition this scenario a portion of the operational items removed in 2020/21 being reinstated, the expiring SRV of $2.2 million being retained in Council’s total rate income and a multi-year cumulative Special Rate Variation which resolves Council’s forecast operating deficits and enables Council to repay a loan (whether internal or external).

Outlined below is the multi-year cumulative special rate increase for this scenario (including a projected rate peg): 2021/22

2022/23

2023/24

2024/25

2025/26

8.5%

10.0%

12.5%

14.5%

7.0%

Model Sensitivity These models are based on assumptions which represent the most likely outcome, given the prevailing economic and operating environment. In the context of marginal (and adverse) operating results, particularly from 2021/22, any actual divergent outcomes (by a major extent) to the assumptions could have a material impact on the results.

For example, a one per cent increase in the inflation factor each year in the 10-year period will see the cumulative negative operating result adversely affected by 5.6 times. Interest on investments has been estimated at 1.5% each year.

84

Georges River Council // Long Term Financial Plan 2020/21

The proposed 2020/21 budget has not factored in impacts to income and expenditure of COVID-19 pandemic on key affected services. This decision is based critical factors being unknown, such as the scale of the financial impact, the length of time of government orders will stay in place and financial support packages required.

Over the coming months Council will better understand the longer-term impact of COVID-19 on our community and on our operations. Therefore, if major changes are required, these will be factored into the final adoption of the 2020/21 budget and/or quarterly reviews. Services that will be potentially materially affected include; Strategic Property, Parking Enforcement, Childcare, Premium Facilities, Events, Sport and Recreation and Library Services.

Key Performance Indicators A number of key performance indicators are used by the Office of Local Government to help determine the sustainability of NSW councils. These indicators, together with others that are in use in the commercial environment are shown. The indicators relevant to each stage of operations are shown in the tables. This is to provide a snapshot of the state of Council’s current financial position and the comparative results relating to each model.

As is evident from the key performance indicators, the longer term outlook for Council (based on the service portfolio) is not favourable. While surpluses are being generated over the short term, the 10 year trend, as projected in the Long Term Financial Plan is downward.

Council is now working towards introducing corrective measures to arrest the decline in performance and ensure long term financial sustainability.

•

The Operating Performance, Unrestricted Current and Cash Coverage ratios highlight the essential ingredients for sustainable financial operations.

•

The Operating Performance Ratio measures the extent of Council’ Revenue (net of Capital Grants) coverage of Expenditure. This needs to be a positive figure and ideal growing.

•

The Unrestricted Current Ratio measures Council’s liquidity. The benchmark based on successful organisations is set at 1.5 to 2.0. An increasing ratio over time shows improve liquidity and an environment where there is sufficient coverage of Current Liabilities from Current Assets.

•

The Cash Coverage Ratio measures Council’s cash coverage of expenditure. This shows the number of months that Council will be able to operate unhindered, in the event that Council is unable to generate any additional cash through its operations.

The greater the number of months shown, the more comfortable the operating environment.

•

Council’s Current Ratio is maintained at a healthy level throughout the 10-year period. While there is a projected decrease in Council’s cash balances, there is sufficient buffer to maintain adequate (above benchmark) levels of working capital.

85

86

Georges River Council // Long Term Financial Plan 2020/21 52,114

113,652

(3,270)

Result Net of Capital Grants – Surplus/(Deficit)

80,618

551

32,483

(74)

(19,557)

Net Surplus/(Deficit)

Adjustment on amalgamation

Other adjustments / Revaluation

Net gains/(losses) from Disposal of Assets

Prior year adjustments

Net Operating Result for period - Surplus/(Deficit)

Financing costs (Interest Expenses)

Depreciation

Surplus/(Deficit) prior to Depreciation & Financing Costs

(120,568)

(7,944)

6,124

1,061

5,063

(71)

(20,631)

25,765

(120,256)

(21,935)

Total Operating Expenditure

Other Expenses

(21,606)

(58,730) (39,591)

(56,508) (42,454)

Employee Costs

Materials and Contracts

Operating Expenditure

146,021

9,175

172,682

11,871

Total Operating Revenue

Other revenues

14,068

36,304

Grants and Contributions - Capital

8,877

3,426

11,153

5,891

94,979 15,496

Grants and Contributions - Operating

Interest and investment revenue

92,784 14,679

$ '000

$’000

Rates and Annual Charges

2019/20 BUDGET

2018/19 ACTUAL

User Charges and Fees

Operating Revenue

Model 1 Income Statement

Model 1 - Draft 2020/21 Budget for Exhibition

Detailed Financial Models

2020/21

(3,225)

18,141

5,000

13,141

(55)

(24,014)

37,210

(124,537)

(23,109)

(41,928)

(59,500)

161,747

11,355

21,366

11,360

2,190

16,657

98,819

$ '000

BUDGET

2021/22

(11,797)

10,054

10,054

(22)

(24,895)

34,971

(128,502)

(24,200)

(42,623)

(61,679)

163,473

11,613

21,851

11,617

2,425

17,034

98,933

$ '000

ESTIMATE

2022/23

(12,062)

10,340

10,340

(2)

(26,135)

36,477

(130,957)

(23,888)

(43,698)

(63,371)

167,434

11,906

22,402

11,909

2,447

17,464

101,306

$ '000

ESTIMATE

2023/24

(14,499)

8,467

8,467

0

(27,413)

35,880

(135,279)

(24,446)

(44,798)

(66,035)

171,159

12,206

22,966

12,209

2,239

17,903

103,636

$ '000

ESTIMATE

2024/25

(15,661)

7,879

7,879

0

(28,691)

36,570

(138,336)

(24,648)

(45,918)

(67,770)

174,906

12,511

23,540

12,514

2,075

18,350

105,916

$ '000

ESTIMATE

2025/26

(18,918)

5,208

5,208

0

(29,979)

35,187

(143,506)

(26,362)

(47,062)

(70,082)

178,693

12,823

24,126

12,826

1,975

18,808

108,139

$ '000

ESTIMATE

2026/27

(21,074)

3,631

3,631

0

(31,286)

34,917

(147,495)

(26,369)

(48,192)

(72,934)

182,412

13,130

24,705

13,133

1,882

19,261

110,301

$ '000

ESTIMATE

2027/28

(21,843)

3,431

3,431

0

(32,601)

36,032

(150,112)

(26,462)

(49,301)

(74,349)

186,144

13,433

25,274

13,435

1,792

19,703

112,507

$ '000

ESTIMATE

2028/29

(23,917)

1,939

1,939

0

(33,929)

35,868

(154,089)

(27,073)

(50,436)

(76,580)

189,957

13,742

25,856

13,745

1,701

20,156

114,757

$ '000

ESTIMATE

87

(1,419,106) (103,712)

(1,522,818)

Total Equity

1,522,818

(1,528,942)

(1,425,230) (103,712)

1,528,942

(38,129)

(625)

(1,125) (40,406)

(625)

(20,318) (596) (500) (16,090) (37,504)

1,567,071

1,393,139 17,660 1,975 1,412,774

(1,125)

EQUITY Retained Earnings Revaluation Reserve

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

(23,468) (596) (500) (14,717) (39,281)

1,563,224

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,366,713 17,660 1,362 1,385,735

143,338 10,479 (290) 185 585 154,297

$ '000

$’000

166,710 10,707 (538) 155 455 177,489

2019/20 BUDGET

2018/19 ACTUAL

Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets

ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets

Model 1 Statement of Financial Position 2020/21

(1,547,083)

(1,443,371) (103,712)

1,547,083

(36,335)

(125)

(125)

(19,628) (596) (500) (15,486) (36,210)

1,583,418

1,409,388 17,660 1,827 1,428,875

130,661 23,475 (368) 190 585 154,543

$ '000

BUDGET

2021/22

(1,557,137)

(1,453,425) (103,712)

1,557,137

(37,057)

0

0

(20,283) (596) (125) (16,053) (37,057)

1,594,194

1,425,004 17,660 2,816 1,445,480

129,476 18,827 (368) 194 585 148,714

$ '000

ESTIMATE

2022/23

(1,567,477)

(1,463,765) (103,712)

1,567,477

(35,923)

0

0

(19,701) (596) 0 (15,626) (35,923)

1,603,400

1,439,530 17,660 3,655 1,460,845

126,224 15,915 (368) 199 585 142,555

$ '000

ESTIMATE

2023/24

(1,575,944)

(1,472,232) (103,712)

1,575,944

(36,026)

0

0

(19,147) (596) 0 (16,283) (36,026)

1,611,970

1,452,928 17,660 4,344 1,474,932

123,617 13,000 (368) 204 585 137,038

$ '000

ESTIMATE

2024/25

(1,583,823)

(1,480,111) (103,712)

1,583,823

(36,368)

0

0

(19,062) (596) 0 (16,710) (36,368)

1,620,191

1,465,198 17,660 4,883 1,487,741

120,047 11,977 (368) 209 585 132,450

$ '000

ESTIMATE

2025/26

(1,589,031)

(1,485,319) (103,712)

1,589,031

(36,706)

0

0

(18,830) (596) 0 (17,280) (36,706)

1,625,737

1,476,342 17,660 5,510 1,499,512

114,002 11,792 (368) 214 585 126,225

$ '000

ESTIMATE

2026/27

(1,592,662)

(1,488,950) (103,712)

1,592,662

(37,221)

0

0

(18,641) (596) 0 (17,984) (37,221)

1,629,883

1,486,354 17,660 5,962 1,509,976

107,663 11,808 (368) 219 585 119,907

$ '000

ESTIMATE

2027/28

(1,596,093)

(1,492,381) (103,712)

1,596,093

(36,747)

0

0

(17,818) (596) 0 (18,333) (36,747)

1,632,840

1,495,239 17,660 6,476 1,519,375

101,206 11,818 (368) 224 585 113,465

$ '000

ESTIMATE

2028/29

(1,598,032)

(1,494,320) (103,712)

1,598,032

(36,566)

0

0

(17,087) (596) 0 (18,883) (36,566)

1,634,598

1,502,996 17,660 6,790 1,527,446

94,829 11,877 (368) 229 585 107,152

$ '000

ESTIMATE

88

Georges River Council // Long Term Financial Plan 2020/21 (48,972) (28,859)

(70,245) (24,355)

(15,326) 182,036 166,710

Cash and Cash Equivalents - End of the Year

143,338

(23,372) 166,710

(500) (500)

1,763

3,443

(500) (500)

4,282 14,068

6,143 36,304

5,987

(57,357) (40,095) (24,141) (71) 0

(57,877) (42,989) (19,448) (74) 140 9,529

95,098 16,881 8,548 0 7,372 (248)

$ '000

$’000

92,586 13,325 11,644 238 11,736 248

2019/20 BUDGET

2018/19 ACTUAL

Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of the Year

Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Net Cash from Financing Activities

Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities

Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities

Model 1 Statement of Cash Flows 2020/21

130,661

(12,677) 143,338

(500) (500)

(40,529) (11,541)

5,000

2,622 21,366

(60,104) (42,059) (23,259) (55) 0 0 (636)

88,144 16,527 11,088 0 9,004 78

$ '000

BUDGET

2021/22

129,476

(1,185) 130,661

(500) (500)

(41,386) (17,174)

0

2,361 21,851

(61,112) (42,504) (23,782) (22) 0 0 16,489

102,983 17,038 11,621 0 12,267 0

$ '000

ESTIMATE

2022/23

126,224

(3,252) 129,476

(125) (125)

(41,500) (16,590)

0

2,508 22,402

(63,798) (43,511) (24,662) (2) 0 0 13,463

103,854 17,417 11,910 0 12,255 0

$ '000

ESTIMATE

2023/24

123,617

(2,607) 126,224

0

(41,500) (16,183)

0

2,351 22,966

(65,378) (45,221) (24,582) 0 0 0 13,576

106,316 17,855 12,211 0 12,375 0

$ '000

ESTIMATE

2024/25

120,047

(3,507) 123,617

0

(41,500) (15,792)

0

2,168 23,540

(67,343) (45,739) (24,917) 0 0 0 12,222

106,983 18,301 12,518 0 12,419 0

$ '000

ESTIMATE

2025/26

114,002

(6,045) 120,047

0

(41,729) (15,558)

0

2,045 24,126

(69,512) (47,523) (26,159) 0 0 0 9,513

108,072 18,758 12,830 0 13,047 0

$ '000

ESTIMATE

2026/27

107,663

(6,339) 114,002

0

(41,750) (15,097)

0

1,948 24,705

(72,230) (48,027) (26,728) 0 0 0 8,758

110,236 19,211 13,104 0 13,192 0

$ '000

ESTIMATE

2027/28

101,206

(6,457) 107,663

0

(41,980) (14,852)

0

1,854 25,274

(74,000) (49,814) (26,797) 0 0 0 8,395

112,440 19,655 13,406 0 13,505 0

$ '000

ESTIMATE

2028/29

94,829

(6,377) 101,206

0

(42,000) (14,433)

0

1.711 25,856

(76,030) (50,977) (27,268) 0 0 0 8,056

114,690 20,106 13,715 0 13,820 0

$ '000

ESTIMATE

89

< 30

Repairs & Maintenance as a % of WDV of Assets

(Expressed as a % of Gross Cost of Assets)

Remaining useful Life of Assets

(Measures Council's Cash coverage of Expenditure)

Cash Coverage Ratio

1%

> 60%

> 3 Mths

= > 100%

Debtor Collection Rate - Other Debtors (net of Rates)

(Measures Council's Collection Rate of Debtors)

= > 100%

Debtor Collection Rate - Rates

(Measures Council's management of Debtors)

< 30

Debtor Days Outstanding - Other Debtors (net of Rates)

> 0%

> =1.0x

Debtor Days Outstanding - Rates

(Measures Council's increase of own source revenue)

Own Source Revenue Growth

(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)

Capital Works & Asset renewals

(Measures Council's capacity to service debt)

Debt Service Cover Ratio

> 2.0x

0.6%

71.9%

6.2

101.3%

99.8%

35.3

11.7

5%

1.0

27.3

3.7

> 1.5x

Unrestricted Current Ratio

(Measures Council's liquidity)

72.5%

-2.9%

ACTUAL

2018/19

> 80%

0%

Benchmark

(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)

Operating Performance Ratio

Key Performance Indicators

Model 1

0.5%

67.6%

5.2

100.5%

99.9%

54.5

11.0

-2%

1.0

45.1

1.9

84.3%

-6.8%

BUDGET

2019/20

0.6%

66.5%

3.9

96.3%

89.2%

58.0

50.0

5%

0.9

28.5.0

1.8

79.8%

-5.9%

BUDGET

2020/21

0.6%

65.6%

3.8

100.9%

104.1%

53.0

35.0

1%

0.8

25.1

1.6

79.5%

-8.3%

ESTIMATE

2021/22

0.6%

64.9%

3.5

100.6%

102.5%

50.0

25.0

2%

0.8

110.8

1.5

79.5%

-8.3%

ESTIMATE

2022/23

0.6%

64.1%

3.1

100.3%

102.6%

47.0

15.0

2%

0.8

No Debt

1.3

79.4%

-9.8%

ESTIMATE

2023/24

0.7%

63.3%

2.7

99.9%

101.0%

46.0

11.0

2%

0.7

No Debt

1.2

79.4%

-10.3%

ESTIMATE

2024/25

0.7%

62.5%

2.0

100.4%

99.9%

44.0

11.0

2%

0.7

No Debt

1.0

79.3%

-12.2%

ESTIMATE

2025/26

0.7%

61.6%

1.3

100.1%

99.9%

43.0

11.0

2%

0.7

No Debt

0.8

79.3%

-13.4%

ESTIMATE

2026/27

0.7%

60.7%

0.6

100.1%

99.9%

42.0

11.0

2%

0.6

No Debt

0.5

79.2%

-13.6%

ESTIMATE

2027/28

0.7%

59.7%

(0.1)

100.0%

99.9%

41.0

11.0

2%

0.6

No Debt

0.3

79.2%

-14.6%

ESTIMATE

2028/29

90

Georges River Council // Long Term Financial Plan 2020/21 $ '000

%

Depreciation as a % of Gross Cost of Assets

Capital Works Program

%

Employee Costs as a % of Total Expenditure

$ '000

%

Interest Rate on investments

Interest payments on loans

%

Rates and Annual Charges as a % of Total Revenue

$ '000

%

Rate of Inflation

Loans outstanding

%

68,530

74

1,625

1.7%

40.3%

3.3%

53.7%

1.90%

2.30%

ACTUAL

Assumptions

Rate Pegging Limit

2018/19

Model 1

45,057

71

1,125

1.7%

41.7%

2.5%

65.0%

2.00%

2.70%

BUDGET

2019/20

38,370

55

625

1.8%

40.0%

1.5%

61.1%

2.02%

2.60%

BUDGET

2020/21

35,000

22

125

1.9%

40.2%

1.3%

60.5%

2.27%

2.50%

ESTIMATE

2021/22

35,000

0

0

1.9%

40.3%

1.5%

60.5%

2.52%

2.40%

ESTIMATE

2022/23

35,000

0

0

1.9%

40.6%

1.5%

60.5%

2.52%

2.30%

ESTIMATE

2023/24

35,000

0

0

1.9%

40.6%

1.5%

60.6%

2.50%

2.20%

ESTIMATE

2024/25

35,000

0

0

2.0%

40.4%

1.5%

60.5%

2.49%

2.10%

ESTIMATE

2025/26

35,000

0

0

2.0%

40.8%

1.5%

60.5%

2.40%

2.00%

ESTIMATE

2026/27

35,000

0

0

2.0%

40.7%

1.5%

60.4%

2.30%

2.00%

ESTIMATE

2027/28

35,000

0

0

2.0%

40.7%

1.5%

60.4%

2.30%

2.00%

ESTIMATE

2028/29

91

11,871

Other revenues

52,114

113,652 (3,270)

Result Net of Capital Grants – Surplus/(Deficit)

80,618

551

32,483

(74)

(19,557)

Net Surplus/(Deficit)

Adjustment on amalgamation

Other adjustments / Revaluation

Net gains/(losses) from Disposal of Assets

Prior year adjustments

Net Operating Result for period - Surplus/(Deficit)

Financing costs (Interest Expenses)

Depreciation

Surplus/(Deficit) prior to Depreciation & Financing Costs

(120,568)

(21,606)

Other Expenses

Total Operating Expenditure

(56,508) (42,454)

Employee Costs

Materials and Contracts

Operating Expenditure

172,682

36,304

Total Operating Revenue

11,153

Grants and Contributions - Capital

5,891

Grants and Contributions - Operating

Interest and investment revenue

92,784

(7,944)

6,124

1,061

5,063

(71)

(20,631)

25,765

(120,256)

(21,935)

(39,591)

(58,730)

146,021

9,175

14,068

8,877

3,426

15,496

94,979

$ '000

$’000

14,679

BUDGET

ACTUAL

Rates and Annual Charges

2019/20

2018/19

User Charges and Fees

Operating Revenue

Model 2 Income Statement

(8,942)

12,424

5,000

7,424

(55)

(24,014)

31,493

(129,017)

(23,589)

(43,098)

(62,330)

160,510

11,355

21,366

11,360

2,153

16,657

97,619

$ '000

BUDGET

2020/21

(15,213)

6,638

6,638

(22)

(24,895)

31,555

(132,953)

(24,692)

(43,820)

(64,441)

164,508

11,613

21,851

11,617

2,333

17,034

100,060

$ '000

ESTIMATE

2021/22

(15,645)

6,757

6,757

(2)

(26,135)

32,894

(135,542)

(24,392)

(44,925)

(66,225)

168,436

11,906

22,402

11,909

2,295

17,464

102,460

$ '000

ESTIMATE

2022/23

(18,247)

4,719

4,719

(27,413)

32,132

(140,001)

(24,963)

(46,056)

(68,982)

172,133

12,206

22,966

12,209

2,033

17,903

104,816

$ '000

ESTIMATE

2023/24

Model 2 – Retain the Expiring Special Rate Variation (SRV) and Reinstate 2020/21 Budget Savings

(19,581)

3,959

3,959

0

(28,691)

32,650

(143,201)

(25,178)

(47,208)

(70,815)

175,851

12,511

23,540

12,514

1,814

18,350

107,122

$ '000

ESTIMATE

2024/25

(23,011)

1,115

1,115

0

(29,979)

31,094

(148,516)

(26,905)

(48,384)

(73,227)

179,610

12,823

24,126

12,826

1,655

18,808

109,372

$ '000

ESTIMATE

2025/26

(25,338)

(633)

(633)

0

(31,286)

30,653

(152,643)

(26,925)

(49,546)

(76,172)

183,296

13,130

24,705

13,133

1,509

19,261

111,558

$ '000

ESTIMATE

2026/27

(26,281)

(1,007)

(1,007)

0

(32,601)

31,594

(155,400)

(27,031)

(50,686)

(77,683)

186,994

13,433

25,274

13,435

1,358

19,703

113,791

$ '000

ESTIMATE

2027/28

(28,537)

(2,681)

(2,681)

0

(33,929)

31,248

(159,523)

(27,655)

(51,853)

(80,015)

190,771

13,742

25,856

13,745

1,205

20,156

116,067

$ '000

ESTIMATE

2028/29

92

Georges River Council // Long Term Financial Plan 2020/21 (1,419,106) (103,712) (1,522,818)

Total Equity

1,522,818

(1,528,942)

(1,425,230) (103,712)

1,528,942

(38,129)

(625)

(1,125) (40,406)

(625)

(20,318) (596) (500) (16,090) (37,504)

1,567,071

1,393,139 17,660 1,975 1,412,774

(1,125)

EQUITY Retained Earnings Revaluation Reserve

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

(23,468) (596) (500) (14,717) (39,281)

1,563,224

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,366,713 17,660 1,362 1,385,735

143,338 10,479 (290) 185 585 154,297

$ '000

$â&#x20AC;&#x2122;000

166,710 10,707 (538) 155 455 177,489

2019/20 BUDGET

2018/19 ACTUAL

Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets

ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets

Model 2 Statement of Financial Position 2020/21

(1,541,366)

(1,437,654) (103,712)

1,541,366

(37,464)

(125)

(125)

(20,020) (596) (500) (16,223) (37,339)

1,578,830

1,409,388 17,660 1,827 1,428,875

126,248 23,300 (368) 190 585 149,955

$ '000

BUDGET

2021/22

(1,548,004)

(1,444,292) (103,712)

1,548,004

(38,179)

0

0

(20,686) (596) (125) (16,772) (38,179)

1,586,183

1,425,004 17,660 2,816 1,445,480

121,382 18,910 (368) 194 585 140,703

$ '000

ESTIMATE

2022/23

(1,554,761)

(1,451,049) (103,712)

1,554,761

(37,024)

0

0

(20,099) (596) 0 (16,329) (37,024)

1,591,785

1,439,530 17,660 3,655 1,460,845

114,567 15,957 (368) 199 585 130,940

$ '000

ESTIMATE

2023/24

(1,559,480)

(1,455,768) (103,712)

1,559,480

(37,136)

0

0

(19,531) (596) 0 (17,009) (37,136)

1,596,616

1,452,928 17,660 4,344 1,474,932

108,259 13,004 (368) 204 585 121,684

$ '000

ESTIMATE

2024/25

(1,563,439)

(1,459,727) (103,712)

1,563,439

(37,506)

0

0

(19,449) (596) 0 (17,461) (37,506)

1,600,945

1,465,198 17,660 4,883 1,487,741

100,815 11,963 (368) 209 585 113,204

$ '000

ESTIMATE

2025/26

(1,564,554)

(1,460,842) (103,712)

1,564,554

(37,852)

0

0

(19,200) (596) 0 (18,056) (37,852)

1,602,406

1,476,342 17,660 5,510 1,499,512

90,686 11,777 (368) 214 585 102,894

$ '000

ESTIMATE

2026/27

(1,563,921)

(1,460,209) (103,712)

1,563,921

(38,390)

0

0

(19,012) (596) 0 (18,782) (38,390)

1,602,311

1,486,354 17,660 5,962 1,509,976

80,104 11,795 (368) 219 585 92,335

$ '000

ESTIMATE

2027/28

(1,562,914)

(1,459,202) (103,712)

1,562,914

(37,922)

0

0

(18,171) (596) 0 (19,155) (37,922)

1,600,836

1,495,239 17,660 6,476 1,519,375

69,211 11,809 (368) 224 585 81,461

$ '000

ESTIMATE

2028/29

(1,560,233)

(1,456,521) (103,712)

1,560,233

(37,748)

0

0

(17,422) (596) 0 (19,730) (37,748)

1,597,981

1,502,996 17,660 6,790 1,527,446

58,226 11,863 (368) 229 585 70,535

$ '000

ESTIMATE

93

(57,357) (40,095) (24,141) (71) 95,098

(57,877) (42,989) (19,448) (74) 92,586 140 9,529

(48,972) (28,859)

(70,245) (24,355)

(15,326) 182,036 166,710

Cash and Cash Equivalents - End of the Year

143,338

(23,372) 166,710

(500) (500)

1,763

3,443

(500) (500)

4,282 14,068

6,143 36,304

5,987

95,098 16,881 8,548 0 7,372 (248)

$ '000

$â&#x20AC;&#x2122;000

92,586 13,325 11,644 238 11,736 248

2019/20 BUDGET

2018/19 ACTUAL

Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of the Year

Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Net Cash from Financing Activities

Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities

Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities

Model 2 Statement of Cash Flows 2020/21

126,248

(17,090) 143,338

(500) (500)

(40,529) (11,568)

5,000

2,595 21,366

(62,197) (43,021) (23,555) (55) 87,109 0 (5,022)

87,109 16,527 11,088 0 9,004 78

$ '000

BUDGET

2021/22

121,382

(4,866) 126,248

(500) (500)

(41,386) (17,251)

0

2,284 21,851

(63,892) (43,695) (24,269) (22) 103,837 0 12,885

103,837 17,038 11,621 0 12,267 0

$ '000

ESTIMATE

2022/23

114,567

(6,815) 121,382

(125) (125)

(41,500) (16,730)

0

2,368 22,402

(66,668) (44,734) (25,175) (2) 105,037 0 10,040

105,037 17,417 11,910 0 12,255 0

$ '000

ESTIMATE

2023/24

108,259

(6,308) 114,567

0

(41,500) (16,381)

0

2,153 22,966

(68,302) (46,490) (25,102) 0 107,526 0 10,073

107,526 17,855 12,211 0 12,375 0

$ '000

ESTIMATE

2024/25

100,815

(7,444) 108,259

0

(41,500) (16,048)

0

1,912 23,540

(70,363) (47,024) (25,449) 0 108,202 0 8,604

108,202 18,301 12,518 0 12,419 0

$ '000

ESTIMATE

2025/26

90,686

(10,129) 100,815

0

(41,729) (15,872)

0

1,731 24,126

(72,632) (48,858) (26,706) 0 109,304 0 5,743

109,304 18,758 12,830 0 13,047 0

$ '000

ESTIMATE

2026/27

80,104

(10,582) 90,686

0

(41,750) (15,471)

0

1,574 24,705

(75,446) (49,376) (27,288) 0 111,492 0 4,889

111,492 19,211 13,104 0 13,192 0

$ '000

ESTIMATE

2027/28

69,211

(10,893) 80,104

0

(41,980) (15,290)

0

1,416 25,274

(77,310) (51,214) (27,369) 0 113,724 0 4,397

113,724 19,655 13,406 0 13,505 0

$ '000

ESTIMATE

2028/29

58,226

(10,985) 69,211

0

(42,000) (14,922)

0

1,222 25,856

(79,440) (52,408) (27,854) 0 115,998 0 3,937

115,998 20,106 13,715 0 13,820 0

$ '000

ESTIMATE

94

Georges River Council // Long Term Financial Plan 2020/21 < 30

Repairs & Maintenance as a % of WDV of Assets

(Expressed as a % of Gross Cost of Assets)

Remaining useful Life of Assets

(Measures Council's Cash coverage of Expenditure)

Cash Coverage Ratio

1%

> 60%

> 3 Mths

= > 100%

Debtor Collection Rate - Other Debtors (net of Rates)

(Measures Council's Collection Rate of Debtors)

= > 100%

Debtor Collection Rate - Rates

(Measures Council's management of Debtors)

< 30

Debtor Days Outstanding - Other Debtors (net of Rates)

> 0%

> =1.0x

Debtor Days Outstanding - Rates

(Measures Council's increase of own source revenue)

Own Source Revenue Growth

(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)

Capital Works & Asset renewals

(Measures Council's capacity to service debt)

Debt Service Cover Ratio

> 2.0x

71.9%

6.2

101.3%

99.8%

35.3

11.7

1%

5%

1.9

27.5

1.9

> 1.5x

Unrestricted Current Ratio

(Measures Council's liquidity)

72.5%

-2.8%

ACTUAL

2018/19

> 80%

0%

Benchmark

(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)

Operating Performance Ratio

Key Performance Indicators

Model 2

67.6%

5.2

100.2%

100.1%

54.5

11.0

7%

-2%

1.1

20.5

1.9

84.3%

-6.8%

BUDGET

2019/20

66.5%

3.4

96.3%

89.2%

58.0

50.0

9%

4%

0.9

18.2

1.6

79.6%

-10.0%

BUDGET

2020/21

65.6%

2.9

101.0%

103.8%

53.0

35.0

12%

2%

0.8

18.6

1.4

79.7%

-10.7%

ESTIMATE

2021/22

64.9%

2.3

100.6%

102.5%

49.0

25.0

6%

2%

0.8

82.6

1.2

79.6%

-10.7%

ESTIMATE

2022/23

64.1%

1.7

100.4%

102.6%

47.0

15.0

6%

2%

0.8

No Debt

0.9

79.6%

-12.2%

ESTIMATE

2023/24

63.3%

1.0

99.9%

101.0%

46.0

11.0

6%

2%

0.7

No Debt

0.6

79.5%

-12.9%

ESTIMATE

2024/25

62.5%

0.0

100.4%

99.9%

44.0

11.0

7%

2%

0.7

No Debt

0.3

79.4%

-14.8%

ESTIMATE

2025/26

61.6%

(0.9)

100.1%

99.9%

43.0

11.0

7%

2%

0.7

No Debt

0.0

79.4%

-16.0%

ESTIMATE

2026/27

60.7%

(1.9)

100.1%

99.9%

42.0

11.0

5%

2%

0.6

No Debt

-0.3

79.3%

-16.3%

ESTIMATE

2027/28

59.7%

(2.9)

100.0%

99.9%

41.0

11.0

5%

2%

0.6

No Debt

-0.7

79.2%

-17.3%

ESTIMATE

2028/29

95

$ '000

%

Depreciation as a % of Gross Cost of Assets

Capital Works Program

%

Employee Costs as a % of Total Expenditure

$ '000

%

Interest Rate on investments

Interest payments on loans

%

Rates and Annual Charges as a % of Total Revenue

$ '000

%

Rate of Inflation

Loans outstanding

%

68,530

74

1,625

1.7%

40.3%

3.3%

53.7%

1.90%

2.3%

ACTUAL

Assumptions

Rate Pegging Limit

2018/19

Model 2

45,057

71

1,125

1.7%

41.7%

2.5%

65.0%

0.00%

2.7%

BUDGET

2019/20

38,370

55

625

1.8%

40.7%

1.5%

60.8%

2.02%

2.6%

BUDGET

2020/21

35,000

22

125

1.9%

40.8%

1.3%

60.8%

2.27%

2.5%

ESTIMATE

2021/22

35,000

2

0

1.9%

41.0%

1.5%

60.8%

2.52%

2.4%

ESTIMATE

2022/23

35,000

0

0

1.9%

41.2%

1.5%

60.9%

2.52%

2.3%

ESTIMATE

2023/24

35,000

0

0

1.9%

41.2%

1.5%

60.9%

2.50%

2.2%

ESTIMATE

2024/25

35,000

0

0

2.0%

41.0%

1.5%

60.9%

2.49%

2.1%

ESTIMATE

2025/26

35,000

0

0

2.0%

41.4%

1.5%

60.9%

2.40%

2.0%

ESTIMATE

2026/27

35,000

0

0

2.0%

41.3%

1.5%

60.9%

2.30%

2.0%

ESTIMATE

2027/28

35,000

0

0

2.0%

41.4%

1.5%

60.8%

2.30%

2.0%

ESTIMATE

2028/29

96

Georges River Council // Long Term Financial Plan 2020/21 11,871

Other revenues

52,114

113,652

(3,270)

Result Net of Capital Grants â&#x20AC;&#x201C; Surplus/(Deficit)

80,618

551

32,483

(74)

(19,557)

Net Surplus/(Deficit)

Adjustment on amalgamation

Other adjustments / Revaluation

Net gains/(losses) from Disposal of Assets

Prior year adjustments

Net Operating Result for period - Surplus/(Deficit)

Financing costs (New Loan)

Financing costs (Interest Expenses)

Depreciation

Surplus/(Deficit) prior to Depreciation & Financing Costs

(120,568)

(21,606)

Other Expenses

Total Operating Expenditure

(56,508) (42,454)

Employee Costs

Materials and Contracts

Operating Expenditure

172,682

36,304

Grants and Contributions - Capital

Total Operating Revenue

11,153

(7,944)

6,124

1,061

5,063

(71)

(20,631)

25,765

(120,256)

(21,935)

(39,591)

(58,730)

146,021

9,175

14,068

8,877

3,426

15,496

14,679 5,891

94,979

$ '000

$â&#x20AC;&#x2122;000 92,784

2019/20 BUDGET

2018/19 ACTUAL

Grants and Contributions - Operating

Interest and investment revenue

User Charges and Fees

Rates and Annual Charges

Operating Revenue

Model 3 Income Statement

(8,718)

12,648

5,000

7,648

(55)

(24,014)

31,717

(129,017)

(23,589)

(43,098)

(62,330)

160,734

11,355

21,366

11,360

2,377

16,657

97,619

$ '000

BUDGET

2020/21

2022/23

(558)

(13,617)

18,234

(10,060)

22,342

22,342

(582) 18,234

(2)

(27,885)

50,787

(135,542)

(24,392)

(44,925)

(66,225)

186,329

11,906

32,402

11,909

2,543

17,464

110,105

$ '000

ESTIMATE

(22)

(24,895)

43,733

(132,953)

(24,692)

(43,820)

(64,441)

176,686

11,613

31,851

11,617

2,677

17,034

101,894

$ '000

ESTIMATE

2021/22

Model 3 - $60 million Capital Program Expansion and Financially Sustainable Correction 2023/24

(4,935)

28,031

28,031

(533)

(30,163)

58,727

(140,001)

(24,963)

(46,056)

(68,982)

198,728

12,206

32,966

12,209

2,291

17,903

121,153

$ '000

ESTIMATE

2024/25

5,717

29,257

29,257

(508)

0

(31,691)

61,456

(143,201)

(25,178)

(47,208)

(70,815)

204,657

12,511

23,540

12,514

2,371

18,350

135,371

$ '000

ESTIMATE

2025/26

8,624

32,750

32,750

(482)

0

(32,979)

66,211

(148,516)

(26,905)

(48,384)

(73,227)

214,727

12,823

24,126

12,826

2,662

18,808

143,482

$ '000

ESTIMATE

2026/27

7,514

32,219

32,219

(456)

0

(34,286)

66,961

(152,643)

(26,925)

(49,546)

(76,172)

219,604

13,130

24,705

13,133

3,023

19,261

146,352

$ '000

ESTIMATE

2027/28

7,815

33,089

33,089

(429)

0

(35,601)

69,119

(155,400)

(27,031)

(50,686)

(77,683)

224,519

13,433

25,274

13,435

3,394

19,703

149,280

$ '000

ESTIMATE

2028/29

6,834

32,690

32,690

(402)

0

(36,929)

70,021

(159,523)

(27,655)

(51,853)

(80,015)

229,544

13,742

25,856

13,745

3,780

20,156

152,265

$ '000

ESTIMATE

97

$ '000

$’000

(1,419,106) (103,712)

(1,522,818)

Total Equity

1,522,818

(1,528,942)

(1,425,230) (103,712)

1,528,942

(38,129)

(625)

(1,125) (40,406)

(625)

(1,125)

(16,090) (37,504)

(14,717) (39,281)

EQUITY Retained Earnings Revaluation Reserve

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Borrowings – New Loan Provisions Total Non-Current Liabilities

(20,318) (596) (500)

1,567,071

1,393,139 17,660 1,975 1,412,774

(23,468) (596) (500)

1,563,224

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Borrowing – New Loan Accruals & Provisions Total Current Liabilities

1,366,713 17,660 1,362 1,385,735

143,338 10,479 (290) 185 585 154,297

BUDGET

ACTUAL

166,710 10,707 (538) 155 455 177,489

2019/20

2018/19

Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets

ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets

Model 3 Statement of Financial Position

(1,541,590)

(1,437,878) (103,712)

1,541,590

(67,464)

(28,893)

(125) (28,768)

(20,020) (596) (500) (1,232) (16,223) (38,571)

1,609,054

1,409,388 17,660 1,827 1,428,875

156,411 23,361 (368) 190 585 180,179

$ '000

BUDGET

2020/21

(1,559,824)

(1,456,112) (103,712)

1,559,824

(68,591)

(27,512)

0 (27,512)

(22,330) (596) (125) (1,256) (16,772) (41,079)

1,628,415

1,445,004 17,660 2,816 1,465,480

143,344 19,180 (368) 194 585 162,935

$ '000

ESTIMATE

2021/22

(1,582,166)

(1,478,454) (103,712)

1,582,166

(67,002)

(26,231)

0 (26,231)

(22,565) (596) 0 (1,281) (16,329) (40,771)

1,649,168

1,487,780 17,660 3,655 1,509,095

123,116 16,541 (368) 199 585 140,073

$ '000

ESTIMATE

2022/23

(1,610,198)

(1,506,486) (103,712)

1,610,198

(64,188)

(24,924)

0 (24,924)

(20,353) (596) 0 (1,306) (17,009) (39,264)

1,674,386

1,508,428 17,660 4,344 1,530,432

129,802 13,731 (368) 204 585 143,954

$ '000

ESTIMATE

2023/24

(1,639,455)

(1,535,743) (103,712)

1,639,455

(62,430)

(23,592)

0 (23,592)

(19,449) (596) 0 (1,332) (17,461) (38,838)

1,701,885

1,517,698 17,660 4,883 1,540,241

148,296 12,922 (368) 209 585 161,644

$ '000

ESTIMATE

2024/25

(1,672,205)

(1,568,493) (103,712)

1,672,205

(61,444)

(22,234)

0 (22,234)

(19,200) (596) 0 (1,358) (18,056) (39,210)

1,733,649

1,525,842 17,660 5,510 1,549,012

171,235 12,971 (368) 214 585 184,637

$ '000

ESTIMATE

2025/26

(1,704,424)

(1,600,712) (103,712)

1,704,424

(60,624)

(20,849)

0 (20,849)

(19,012) (596) 0 (1,385) (18,782) (39,775)

1,765,048

1,532,854 17,660 5,962 1,556,476

195,085 13,051 (368) 219 585 208,572

$ '000

ESTIMATE

2026/27

(1,737,513)

(1,633,801) (103,712)

1,737,513

(58,771)

(19,437)

0 (19,437)

(18,171) (596) 0 (1,412) (19,155) (39,334)

1,796,284

1,538,739 17,660 6,476 1,562,875

219,866 13,102 (368) 224 585 233,409

$ '000

ESTIMATE

2027/28

(1,770,203)

(1,666,491) (103,712)

1,770,203

(57,185)

(17,997)

0 (17,997)

(17,422) (596) 0 (1,440) (19,730) (39,188)

1,827,388

1,543,496 17,660 6,790 1,567,946

245,760 13,236 (368) 229 585 259,442

$ '000

ESTIMATE

2028/29

98

Georges River Council // Long Term Financial Plan 2020/21 (15,326) 182,036 166,710

Cash and Cash Equivalents - End of the Year

143,338

(23,372) 166,710

(500)

(500)

(48,972) (28,859)

(70,245) (24,355)

(500)

1,763

3,443

(500)

4,282 14,068

156,411

13,073 143,338

29,500

(500)

30,000

(40,529) (11,405)

5,000

2,758 21,366

0 0 (5,022)

0 0 5,987

140 9,529

6,143 36,304

(62,197) (43,021) (23,555) (55)

(57,357) (40,095) (24,141) (71)

(57,877) (42,989) (19,448) (74)

87,109 16,527 11,088 0 9,004 78

$ '000

95,098 16,881 8,548 0 7,372 (248)

$ '000

$’000

2020/21 BUDGET

92,586 13,325 11,644 238 11,736 248

2019/20 BUDGET

2018/19 ACTUAL

Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of the Year

Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Repayment of Borrowings – New Loan Principal Net Cash from Financing Activities

Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities

Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Borrowing Costs – New Loan Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities

Model 3 Statement of Cash Flows 2021/22

143,344

(13,067) 156,411

(500) (1,232) (1,732)

(59,742) (25,296)

0

2,595 31,851

(63,892) (43,695) (24,269) (22) (582) 0 0 13,961

105,495 17,038 11,621 0 12,267 0

$ '000

ESTIMATE

2022/23

123,116

(20,228) 143,344

(125) (1,256) (1,381)

(70,678) (35,627)

0

2,649 32,402

(66,668) (44,734) (25,175) (2) (558) 0 0 16,780

112,335 17,417 11,910 0 12,255 0

$ '000

ESTIMATE

2023/24

129,802

6,686 123,116

0 (1,281) (1,281)

(53,144) (17,762)

0

2,416 32,966

(68,302) (46,490) (25,102) 0 (533) 0 0 25,729

123,715 17,855 12,211 0 12,375 0

$ '000

ESTIMATE

2024/25

148,296

18,494 129,802

(1,306) (1,306)

(42,322) (16,364)

0

2,418 23,540

(70,363) (47,024) (25,449) 0 (508) 0 0 36,164

136,270 18,301 12,518 0 12,419 0

$ '000

ESTIMATE

2025/26

171,235

22,939 148,296

(1,332) (1,332)

(41,729) (14,924)

0

2,679 24,126

(72,632) (48,858) (26,706) 0 (482) 0 0 39,195

143,238 18,758 12,830 0 13,047 0

$ '000

ESTIMATE

2026/27

195,085

23,850 171,235

(1,358) (1,358)

(41,750) (13,998)

0

3,047 24,705

(75,446) (49,376) (27,288) 0 (456) 0 0 39,206

146,265 19,211 13,104 0 13,192 0

$ '000

ESTIMATE

2027/28

219,866

24,781 195,085

(1,385) (1,385)

(41,980) (13,270)

0

3,436 25,274

(77,310) (51,214) (27,369) 0 (429) 0 0 39,436

149,192 19,655 13,406 0 13,505 0

$ '000

ESTIMATE

2028/29

245,760

25,894 219,866

(1,412) (1,412)

(42,000) (12,406)

0

3,738 25,856

(79,440) (52,408) (27,854) 0 (402) 0 0 39,712

152,175 20,106 13,715 0 13,820 0

$ '000

ESTIMATE

99

< 30

Repairs & Maintenance as a % of WDV of Assets

(Expressed as a % of Gross Cost of Assets)

Remaining useful Life of Assets

(Measures Council's Cash coverage of Expenditure)

Cash Coverage Ratio

1%

> 60%

> 3 Mths

= > 100%

Debtor Collection Rate - Other Debtors (net of Rates)

(Measures Council's Collection Rate of Debtors)

= > 100%

Debtor Collection Rate - Rates

(Measures Council's management of Debtors)

< 30

Debtor Days Outstanding - Other Debtors (net of Rates)

> 0%

> =1.0x

Debtor Days Outstanding - Rates

(Measures Council's increase of own source revenue)

Own Source Revenue Growth

(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)

Capital Works & Asset renewals

(Measures Council's capacity to service debt)

Debt Service Cover Ratio > 2.0x

> 1.5x

Unrestricted Current Ratio

(Measures Council's liquidity)

> 80%

0%

Benchmark

(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)

Operating Performance Ratio

Key Performance Indicators

Model 3

0.6%

71.9%

6.2

101.3%

99.8%

35.3

11.7

5%

1.9

27.5

1.9

72.5%

-2.8%

ACTUAL

2018/19

0.5%

67.6%

5.2

100.2%

100.1%

54.5

11.0

-2%

1.1

20.5

1.9

84.3%

-6.8%

BUDGET

2019/20

0.6%

66.5%

6.2

96.2%

89.2%

58.0

50.0

4%

0.9

18.7

2.3

79.6%

-9.8%

BUDGET

2020/21

0.6%

67.1%

5.0

100.8%

103.5%

46.0

35.0

4%

1.2

5.1

1.8

75.4%

-9.0%

ESTIMATE

2021/22

0.6%

67.5%

3.8

100.5%

102.0%

43.0

25.0

6%

1.3

9.5

1.5

76.2%

-6.2%

ESTIMATE

2022/23

0.6%

65.8%

4.0

100.3%

102.1%

41.0

15.0

8%

0.9

14.2

1.6

77.3%

-2.7%

ESTIMATE

2023/24

0.6%

64.3%

5.5

99.9%

100.7%

47.0

11.0

9%

0.7

20.9

2.0

82.4%

3.4%

ESTIMATE

2024/25

0.6%

63.3%

7.0

100.3%

99.8%

44.0

11.0

5%

0.6

23.2

2.6

82.8%

4.8%

ESTIMATE

2025/26

0.6%

62.2%

8.6

100.0%

99.9%

43.0

11.0

2%

0.6

23.3

3.1

82.8%

4.1%

ESTIMATE

2026/27

0.6%

61.1%

10.2

100.0%

99.9%

42.0

11.0

2%

0.6

24.2

3.7

82.8%

4.1%

ESTIMATE

2027/28

0.7%

60.0%

11.7

99.9%

99.9%

41.0

11.0

2%

0.6

24.3

4.3

82.7%

3.6%

ESTIMATE

2028/29

100

Georges River Council // Long Term Financial Plan 2020/21 % % % % %

Rate of Inflation

Rates and Annual Charges as a % of Total Revenue

Interest Rate on investments

Employee Costs as a % of Total Expenditure

Depreciation as a % of Gross Cost of Assets

Capital Works Program

Interest payments on loans â&#x20AC;&#x201C; New Loan

Interest payments on loans

Loans outstanding - New Loan

$ '000

$ '000

$ '000

%

Gross SRV (including Rate Peg)

Loans outstanding

%

68,530

74

1,625

1.7%

40.3%

3.3%

53.7%

1.90%

2.3%

ACTUAL

Assumptions

Rate Pegging Limit

2018/19

Model 3

45,057

71

1,125

1.7%

41.7%

2.5%

65.0%

0.00%

2.7%

BUDGET

2019/20

38,370

0

55

30,000

625

1.8%

40.7%

1.5%

60.7%

2.02%

8.5%

2.6%

BUDGET

2020/21

55,000

582

22

28,768

125

1.9%

40.8%

1.3%

57.7%

2.27%

10.0%

2.5%

ESTIMATE

2021/22

65,000

558

2

27,512

0

2.0%

40.5%

1.5%

59.1%

2.52%

12.5%

2.4%

ESTIMATE

2022/23

45,000

533

0

26,230

0

2.0%

40.5%

1.5%

61.0%

2.52%

14.5%

2.3%

ESTIMATE

2023/24

35,000

508

0

24,924

0

2.1%

40.5%

1.5%

66.1%

2.50%

7.0%

2.2%

ESTIMATE

2024/25

35,000

482

0

23,592

0

2.1%

40.3%

1.5%

66.8%

2.49%

2.0%

2.1%

ESTIMATE

2025/26

35,000

456

0

22,234

0

2.1%

40.7%

1.5%

66.6%

2.40%

2.0%

2.0%

ESTIMATE

2026/27

35,000

429

0

20,849

0

2.1%

40.7%

1.5%

66.5%

2.30%

2.0%

2.0%

ESTIMATE

2027/28

35,000

402

0

19,437

0

2.2%

40.7%

1.5%

66.3%

2.30%

2.0%

2.0%

ESTIMATE

2028/29

78 101

RESOURCING STRATEGY 2020/21 www.georgesriver.nsw.gov.au