Resourcing Strategy 2021/22

Resourcing Strategy 2021/22

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

www.georgesriver.nsw.gov.au

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.

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Contents

Statement of acknowledgement of the Biddegal People....................2

How will we get there?.......................................................................52

Council values and statements..........................................................6

Implementation, monitoring and review..............................................54

Community Vision Statement.............................................................6

Digital Resource Management Action Plan........................................55

Vision..................................................................................................6

Asset Management Plan....................................................................58

Mission...............................................................................................6

What is the Asset Management Plan?...............................................60

Our values..........................................................................................6

Key themes of Council’s Asset Management Plan.............................61

Introduction.........................................................................................8

Where are we now?...........................................................................62

Our 6 Pillars........................................................................................8

Where do we want to be?...................................................................69

Background – Legislative Framework................................................9

Implementation, Monitoring and Review............................................72

Workforce Management Plan.............................................................12

How will we get there?.......................................................................76

What is the Workforce Management Plan?........................................14

Asset Management Improvement Plan..............................................78

Key Themes of Council’s Workforce Management Plan....................15

Long Term Financial Plan...................................................................80

Where are we now?...........................................................................16

Executive Summary...........................................................................82

About our organisation.......................................................................16

Financial Governance Principles........................................................83

Where are we going?.........................................................................26

Financial Sustainability Challenges....................................................84

How will we get there?.......................................................................28

Planning for our Future – Rates Consultation 2020...........................88

Implementation, monitoring and review..............................................30

Planning for our Future – New Rates 2021........................................90

Workforce Management Action Plan..................................................32

Local Infrastructure Contributions and Projects.................................92

Digital Resource Management Plan...................................................38

Socio-Economic Snapshot.................................................................94

What is the Digital Resource Management Plan?..............................40

Financial Models Overview................................................................96

Key themes of Council’s Digital Resource Management Plan...........41

Detailed Financial Models..................................................................98

Where are we now?...........................................................................43 Where are we going?.........................................................................46

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Council values and statements Community Vision Statement In 2021, 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

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Introduction

Our 6 Pillars

Background - Legislative Framework

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.

1.

2.

3.

4.

5.

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

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 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 plan for the future strategically and holistically.

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. The Delivery Program runs for four years to align with the local government election cycle. We are now commencing the final year of this program.

We have also prepared a one-year Operational Plan to show the specific actions and budgets that we propose for 2021/22, consistent with the Delivery Program.

COMMUNITY STRATEGIC PLAN 10 + YEARS

COMMUNITY ENGAGEMENT

DELIVERY PROGRAM 4 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

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

The Plan 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.

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 2021/2022. This Plan will evolve as Council continues its journey from transition to transformation and innovation.

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.

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 Plan 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.

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Workforce Management Plan 2021/22

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What is the Workforce Management Plan?

Key themes of Council’s 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 an annual Operational Plan (and budget). These are informed by a long term Resourcing Strategy that consists of:

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

• • • •

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.

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Georges River Council // Workforce Management Plan 2021/22

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.

Actions to support these themes are outlined in subsequent sections.

Council’s People and Culture team 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

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Where are we now?

About our organisation GENERAL MANAGER

Office of the General Manager

Community and Culture Directorate

Business and Corporate Services Directorate

Environment and Planning Directorate

Assets and Infrastructure Directorate

City Strategy and Innovation Directorate

Legal Services

Manager Office of the General Manager

Director Community and Culture

Director Business and Corporate Services

Director Environment and Planning

Director Assets and Infrastructure

Director City Strategy and Innovation

Director Legal Services General Counsel

Chief Audit Executive

Manager City Life

Manager People and Culture

Manager Development and Building

Executive Manager Engineering Operations

Coordinator Strategy and Innovation

Senior Solicitor

Manager Cultural Engagement and Library Services

Chief Information Officer

Manager Strategic Planning

Manager Infrastructure

Coordinator Communications and Engagement

Chief Financial Officer

Manager Environment, Health and Regulatory Services

Manager Project Delivery

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

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

Manager Community and Early Learning Centres

Manager Governance and Risk Management

Manager Premium Facilities

Head of Strategic Property

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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 2020 is 609 staff with an FTE of 567. Head count fluctuates due to establishment vacancies.

Approximately one quarter (25%) of our staff hold management or leadership roles and 75% are in operational positions.

Category

Subcategory

FTE Employees by status

Gender

Percentage %

Current FTE (excluding casuals)

567

-

Head Count (excluding casuals)

609

-

Permanent

562

91.2%

Temporary

47

7.7%

Casual Staff

72

-

Male Workforce

296

48.6%

Female Workforce

313

51.4%

9

36%

16

64%

Males in Management Females in Management Age

Females (51%) and males (49%) are almost equally represented in Council’s workforce; however, females (64%) account for the largest percentage of employees in management positions.

We face the challenges of an ageing workforce (24% of employees are 55 or over). The highest proportion (65%) of our workforce were born between 1961 and 1984, with 25% born between 1985 and 2002, indicating a wide spread of represented age groups.

Count (n=)

Distance travelled to work based on Staff Engagement Survey 2020 data

18-24

31

5.1%

25-34

112

18.4%

35-44

151

24.8%

45-54

166

27.3%

55-64

128

21%

65 +

21

3.4%

Less than 5km distance

99

21.8%

6km to 10km distance

144

25.2%

11km to 15km distance

90

19.9%

16km to 20km distance

48

10.6%

102

22.5%

-

14.4%

21km + distance Turnover

Rolling Annual as at 31 December 2020

Length of service

Less than 5 years

321

52.7%

5 to 9 years

101

16.6%

10 to 14 years

82

13.5%

15 to 19 years

42

6.8%

20 + years

63

10.4%

% of staff with a disability

**

-

% Aboriginal or Torres Strait Islander

1

-

Diversity and inclusion

% Language other than English at home % Culturally diverse

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Georges River Council // Workforce Management Plan 2021/22

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5.3%

165

26.96%

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Workforce skills

Directorate

Department

Roles

Environment and Planning

Development and Building

Building Assessment/ Certification Officers Development Assessment Officers Development and Building Advisory Officers Administration Officers

Consultant Arborist Development Engineers Senior Planners Principle Planners Business Improvement

Environmental Health and Regulatory Services

Compliance Officers Senior Sustainability Officer Senior Environment Officer Waste Investigations and Field Officers Environmental Health Officers

Parking Officers Rangers

Strategic Planning

Strategic Planners Senior Strategic Planners Executive Strategic Planner Administration Officer

Strategic Planner/Information Management Development Contributions Planners

General Manager’ s Office

Executive Services Officers Integrated Planning and Reporting Officer

Research and Project Officer

Audit

Chief Audit Executive

Legal Services

General Counsel

Senior Solicitor Law Graduate

Solicitor Paralegal

City Strategy and Innovation

Strategy and Innovation Communications

Senior Project Officers City Image and Brand Officer Marketing and Strategic Partnerships Officer

Communications Officers Community Engagement Officers Website and Digital Officer

Business and Corporate Services

Finance

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

Information Management Technology

IMT Assistants Business Systems Specialists/ Officers Information Management Officers Archivists Web and Intranet Specialist/ Officer

IMT Projects Officers Geographical Information Officers Technology Systems Officers

People and Culture

Head of People and Performance Head of Employee Experience Human Resource Business Partners Organisational Capability Partners/Officers Payroll Officers

Organisational Capability Partner/Officer Payroll Officers Human Resource Information Systems Officer

Governance and Risk

Head of Work Health and Safety Work Health and Safety Specialists Claims and Insurance Risk Advisor

Governance and Risk Specialist Team Leader Procurement and Contracts Procurement and Contracts Governance Partners Procurement Officer Senior Policy Specialist

Strategic Property

Property Approvals Officers Strategic Property Specialist

Administration Officer

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

Directorate

Department

Georges River Council Leadership

General Manager Directors Managers Coordinators

Team Leaders Supervisors Executive Assistants Personal Assistants

Assets and Infrastructure

Projects

Site Supervisors - Building Projects Project Delivery Administration

Environmental and Open Space Projects Engineers Civil Works Projects Engineers

Engineering Operations

Administration Officers Business Projects City Presentation Fleet, Trades and Procurement Work Health and Safety Specialist

Service Delivery North Service Delivery South Service Delivery East Service Delivery West Operations Specialists

Administration Officers Design and Drainage Engineers Survey Technician Parks and Waterways Officer Tree Management Officers Sport and Recreation Officer Traffic Engineers

Road Safety Officer Head of Security and Emergency Assets and Restorations Officers Building Maintenance Officers Interns

Premium Facilities

Events and Administration Officer Events and Marketing Officer Head of Events and Operations

Operations Supervisor

City Life

Customer Experience Officers Customer Experience Advocates Events Officers Sponsorship Specialist

Technical Officers Open Space Officer Community Property Officer/ Assistant

Community and Early Learning Services

Administration Officers Childcare Assistants/Workers Cooks, Cleaners Early Childhood Teachers/ Educators Grants Officer

Community Development Project Officer Social Justice Officer Diversity and Inclusion Officer Child Protection and Youth Services Officer

Library Assistants/Officers Librarians Curators

Arts and Entertainment Programming Assistant Arts Project Officer Chinese Engagement Assistant

Infrastructure

Community and Culture

Cultural Engagement and Library Services

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Roles

Georges River Council // Workforce Management Plan 2021/22

Office of the General Manager

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Financial considerations

A people culture

Employment costs are estimated to account for 39% of our total draft estimated 2021/22 operating expenditure and have been developed under the following assumptions:

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 towards excellence in service delivery while enhancing the customer experience. We proactively encourage a positive culture through engagement with staff and the community. Our organisational culture is underpinned by our mission and values.

•

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 15%

•

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 24% of Council employees aged 55 or over and long tenure we need to plan for impending liabilities associated with staff exiting the workforce. The Employee Leave Entitlements (ELE) liability as at 30 June 2020 was $14.5 million, which was an increase of $100,000 from the prior year. Council aims to hold over 30% in cash to satisfactorily fund this liability. We will continue to monitor the ELE over the coming years and will actively manage Council’s leave liability.

The annual staff survey, ExChange Ideas, gauges the organisational climate and gives a voice to the satisfaction levels of our workforce. In 2020, with a staff response rate of approximately 80%, our results showed continued improvement in most areas comparative to similar surveys conducted since Council amalgamated.

Engagement and progress indicators were 3% higher than in the previous year and are 2% and 11% higher respectively, when compared to industry.

Analysing these results at an organisational and business unit level we continue to revise and develop programs and initiatives aimed at increasing employee engagement and driving a progressive workplace culture. These include: •

Performance Excellence Program: This focuses on continuous development and feedback and fosters performance excellence. The process involves continuous conversations with staff, building a culture of continuous, agile and transparent goal setting and continuous alignment of performance and behaviour with the values of the organisation.

•

Rewards and Recognition Program: This acknowledges high achieving employees who go above and beyond in delivering outstanding customer service, work 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.

Service milestones are formally celebrated for 10 years of continuous service (including continuous service with the former Kogarah and Hurstville City Councils) and every 5 years thereafter. This acknowledgement takes place at social events and is presented by the General Manager.

•

Learning and Development Program: As learning needs and priorities change over time, several iterations of our learning program have been introduced including River Runs Deep (2017-18) followed by Ready, Set Grow (2019-20) which set the learning strategy for Council for the respective years to ensure our people are informed, adaptable and prepared with the skills and knowledge to effectively do their job both now and in the future.

Starting in 2021 the LEAP (Learn Exceed Achieve Progress) program defines a new framework which encompasses Council’s holistic approach to building the capability of our people.

•

Wellness and Belonging Program: In 2020, the BENE-FIT 360 program was launched to actively support our employees from a holistic outlook for total wellbeing, including mental, physical and emotional wellbeing through a framework that is designed to promote complete workplace wellness.

The objective behind BENE-FIT 360 is to actively support our employees mental fitness, health and wellbeing to drive a healthier, happier and more engaged and productive workforce. Georges

Employee Engagement

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: •

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.

Moderate/Strongly Disagree

Employee costs Budget

2018/19 $’000

2019/20 $’000

2020/21 $’000

2021/22 $’000

Total

58,700

58,700

59,500

60,495

Organisational Progress

Moderate/Strongly Disagree

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Georges River Council // Workforce Management Plan 2021/22

Agree/Strongly Agree

Agree/Strongly Agree

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Internal workforce challenges River Council is only as good as it’s people and by developing a mentally healthy, supportive and positive place to work, decreasing absenteeism and increasing presenteeism, not only will we get the best out of our staff, we will also attract and retain top talent further and promote Council as an employer of choice.

The framework consists of three overarching pillars: M-FIT - a commitment to a mentally fit workforce WELL-FIT - a commitment to wellness and belonging FLEX-FIT - a commitment to a flexible and agile workforce •

Diversity and Inclusion: We are a diverse workforce that reflects our contemporary, multicultural community. We celebrate and promote this diversity as a strength of our organisation. Our Equal Employment Opportunity Diversity and Inclusion Action Plan 2019 -2021 outlines the actions and goals our Diversity and Inclusion Committee and other teams at Council are working towards achieving.

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 employee performance and experiences.

A number of local constraints affect our workforce: •

Ageing workforce: 24% 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 31% of staff do not expect to still be working at Georges River Council in 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.

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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

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.

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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 strategy • work health and safety strategy These strategies have been developed alongside community and staff consultation and feedback.

Learning and Development Strategy Our vision is to create a learning culture that supports our mission, vision and values. Since 2017, several iterations of an organisation wide learning and development program have been implemented reflecting changing priorities and learning needs. Learn Exceed Achieve Progress (LEAP) is a program that highlights the evolution of the organisation’s commitment to learning and establishes different streams of learning that staff can access throughout the trajectory of their careers at Georges River Council to achieve learning excellence. It is highly adaptive with defined core learning for all staff and takes into account identified needs of the organisation placing accountability on staff to also drive their development.

This program structures capability development into four streams: 1. Corporate Excellence defines essential learning for new starters and mandating critical training that exposes Council and our staff to risks, whether they be related to governance, work health and safety or wellbeing. It also captures organisation wide initiatives that contribute to the achievement of our Vision, Mission and Values including the opportunities to learn from our staff engagement survey.

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Georges River Council // Workforce Management Plan 2021/22

2. Professional Excellence specifically addresses the learning demands that emerged from the performance review data. It encompasses the current processes that allow staff to apply for CPD or Business Critical Training which address more unique position-based requirements. On a wider scale it focuses on three thematic areas of learning that has been prioritised for the organisation over a two year period.

3. Leadership Excellence recognises the importance of investing in emerging and current leaders. The Australasian Management Challenge remains the core program for our emerging leaders, which gives the opportunity to five to six staff members across Council to participate in a national competition, learn from mentors, build leadership skills and challenge themselves in solving Local Government issues. For existing leaders, a program will be designed and customised to meet immediate leadership skill gaps.

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.

4. Personal Excellence captures learning that is readily accessible to all staff and empowers them to undertake autonomous learning. This fosters a learning culture that is supportive not only just of professional ambitions, such as undertaking further tertiary studies, but also personal goals such as skills that can be applied at home. This is an opportunity for Council to create informal social learning events for staff to build cross-unit collaboration.

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 also expands on 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.

cross unit collaboration. 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.

Work Health and Safety Strategic Plan We are committed to a safety-first 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: 1. reduced incidence of work-related death, injury and illness 2. reduced exposure to hazards and risks 3. improved hazard controls 4. an improved work health and safety infrastructure.

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.

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.

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

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Implementation, monitoring and review Measuring success We will measure our performance against this Plan every year by reviewing the following factors:

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•

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.

•

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

•

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.

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Workforce Management Action Plan Goal 1

2

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

2020/2021

Completed

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.

1

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

1

3

4

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.

2020/2021

2020/2021

2

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

2020/2021

Completed

1

Deliver a whole-of-organisation conference focused on values and compliance

2020/2021

Completed

2

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

2020/2021

Completed

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

2020/2021

Georges River Council // Workforce Management Plan 2021/22

Flexible resource allocation

Information management

Completed

Develop and deliver The River Runs Deep.

3

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Goal

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

Completed

2

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

2020/2021

Completed

2

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

2020/2021

Completed

1

Implement a new Human Resource Information System (HRIS).

2020/2021

Completed

3

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

2020/2021

Completed

2

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

2020/2021

Completed

1

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

2020/2021

Completed

1

undertake service delivery review of key Council functions.

2020/2021

Completed

1

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

2020/2021

Completed

1

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

2020/2021

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.

Completed

Completed

5

Iterative business improvement processes

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

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Goal 6

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.

2020/2021

Completed

2

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

2020/2021

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.

2020/2021

Completed

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

2020/2021

2

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

2020/2021

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.

2020/2021

Completed

Streamline our recruitment processes for easier candidate selection and onboarding.

2020/2021

2

2

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Georges River Council // Workforce Management Plan 2021/22

Goal 7

Open physical and virtual environments

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.

2020/2021

Completed

1

Continue to conduct employee satisfaction surveys.

2020/2021

Completed

2

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

2020/2021

Completed

3

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

2020/2021

Completed

1

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

2020/2021

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.

2020/2021

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

In progress

8

Partnerships and networking

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

Completed

35

Goal 9

Performance centric

10 Technology, systems and tools

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Objective

Priority

Action

Timeline

Progress

Motivate our workforce towards achievement through feedback mechanisms, role clarity and a rewards and recognition program that acknowledges excellence.

1

Educate leaders to understand the importance of sharing their expectations, goals and accountabilities with employees.

2020/2021

Completed

1

Promote regular feedback as a day-to-day activity to help bridge gaps in performance, rather than simply a response to poor performance.

2020/2021

In progress

1

Establish and implement a rewards and recognition program strongly linked to skills and performance reviews.

2020/2021

Completed

1

Establish and implement a performance excellence program that streamlines performance appraisal scheduling to coincide with budgets, rewards and training and to enable managers to evaluate and benchmark their workforce as a group.

2020/2021

In progress

1

Implementation of ATO single-touch payroll process (including software update and business process review).

2020/2021

Completed

2

Advocate for investment in technology to increase workplace productivity and to facilitate further flexibility in the organisation of work.

2020/2021

Completed

2

Deliver technical skills training to help the workforce adapt to new technologies in the workplace.

2020/2021

Completed

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

Georges River Council // Workforce Management Plan 2021/22

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Digital Resource Management Plan 2021/22

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Georges River Council // Digital Resource Management Plan 2021/22

39

What is the Digital Resource Management Plan?

Key themes of Council’s Digital Resource Management Plan

A focus on our digital resources

Our Aim:

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, 2021/22. The Resourcing Strategy articulates how Council’s finances, workforce, infrastructure and technology will support the implementation of our Delivery Program 2018/19 2020/22. 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 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.

To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient and customer centric services.

For our community, this means greater flexibility and certainty in dealing with Council.

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

1. Enable Committed Governance – Keeping our Information Safe

Commit to delivering outcomes and take actions that will build a digital framework and system that is sustainable and resilient.

We will: • Continue to adapt information security governance to meet the challenges of an ever-changing threat landscape • Support business sustainability and resilience • Proactively manage risks • Commit to responsible procurement 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 to improve operational efficiencies.

3. Undertake Continuous Improvement Culture - Exploring and adapting to new technologies

Through collaboration support innovation across our corporate and customer services. We will also create a move to improve culture through continuous review and improvement of our processes and digital assets, systems and resources to deliver increased productivity, efficiency, effectiveness 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 functions and services.

4. Embed Business Analytics – Creating meaningful performance data

Build support tools and reporting capabilities to create a reporting framework to support 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.

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Georges River Council // Digital Resource Management Plan 2021/22

41

Where are we now?

Our Digital Resource Management Plan on a page

Organisational context

To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient, customer centric services.

Enable committed governance

Empower digital government

Keeping our information safe

Improving wayswe interact

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.

Undertake continuous improvement and innovation Exploring and adapting to new technologies

Embed business analytics Creating meaningful performance data

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

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Georges River Council // Digital Resource Management Plan 2021/22

43

Working together

Snapshot of Current Situation Figures relate to the 12 month period 1/5/20-30/4/21

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

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 89,592 Correspondence registered 89,592 Correspondence registered 746 registered Correspondence 746 Information requests 796processed 796 Information requests processed Information requests processed Information requests processed

382 Training sessions facilitated 261 261 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 13,097,840 13,097,840 Threats prevented/blocked Threats prevented/blocked Threats prevented/blocked

Printing93kgs consumables 72kgs 72kgs Printing consumables Printing consumables 910kgs Printing consumables 910kgs eWaste recycling of 91 devices 740kgs 740kgs eWaste recycling of 9162 devices e Waste recycling devices 15,500kgs e Waste recycling 62 devices 15,500kgs Use of 100% recycled paper 21,346kgs 21,346kgs UseUse of 100% recycled paper - 1193 reams of paper of 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 22,158kgs 22,158kgs 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

1,841 Hardware and software applications 1,695 1,695 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 607 tasks 607Infrastructure 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 20/21 Management Plan progress

Training Training Training 382 Training

1,435 Properties created 701 701 Properties created Properties created 1,631created Properties New1,631 addresses 1008 1008 New addresses New addresses 2,367 New addresses 2,367 Changes of address 2660 2660 Changes of address Changes of address 651,374 Changes of address 651,374 Property attributes 707,926 707,926 Property attributes Property attributes Property attributes

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

99.97% 82% Availability of Digital of agreed initiatives 99.96% 86% were 99.96% Availability of Digital 86% of agreed initiatives were Infrastructure performance implemented Availability of Digital Programme on20/21 track to meet 80% of agreed initiatives were 20/21 Availability of Digital Infrastructure performance of agreed initiatives implemented Programme on track meet Infrastructure performance compliance with of20/21 the 33toDigital Resource implementedwere Program on29 track to meet 80% 80% compliance Infrastructure performance implemented Program track tothe meet 80% compliance with 29 of 33 Digital Resource projectson completed orof on schedule with 29 the 33compliance with 29projects oforthe projects completed on33 schedule or on to be completed.

Digital Resource completed Digital Resource projects completed to be completed. schedule to be completed. or on schedule to be completed.

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Georges River Council // Digital Resource Management Plan 2021/22

45

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

Now STATE OF DIGITAL TECHNOLOGY JUNE 2019 Established technology governance framework One Council protected technology network, connected across location Established Hybrid Cloud Enterprise Architecture function Mobility and productivity challenges Established continuous improvement focus across Council functions and services Established vendor management Established performance reporting to help drive accountability

Future STATE OF DIGITAL TECHNOLOGY JUNE 2022 Robust technology governance framework One Council protected and resilient technology network connected with the world Strong and resilient Hybrid Cloud Enterprise Architecture function Customers and staff access services and information anywhere, anytime from any device Technology enables innovation across all Council functions and services A strong, strategic service and vendor management framework Technology facilitates a data driven, transparent and accountable organisation

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Georges River Council // Digital Resource Management Plan 2021/22

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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.

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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.

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.

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 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.

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

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

Georges River Council // Digital Resource Management Plan 2021/22

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 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.

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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.

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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

Enable Committed Governance

2 Empower Digital Government

Priority 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 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.

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.

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.

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Implementation, monitoring and review

Digital Resource Management Action Plan

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 accountable for the monitoring, reviewing and the overall delivery of this Plan. The CIO will support each relevant team in delivering elements of this Plan and will ensure projects comply with and are aligned to the strategic direction of this 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.

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.

Goal 1

1

Enable Committed Governance

Empower Digital Government

3

Undertake continuous improvement and innovation

-

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

- - - -

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

-

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

- - -

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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 2021/22

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

Annually

In Progress

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

19/20

Completed

Implement Annual Audit agreed recommendations

Annually

Completed

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

Conduct a review of Council's enterprise architecture

21/22

Not commenced

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

20/21

In Progress

Establish Technical Infrastructure resilience

19/20

Completed

3

2022 Target - -

Priority

2

4 Strategic Objective

Digital Resource Management

Objective

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

Completed

Undertake a cost optimisation review

20/21

Completed

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.

Annually

In Progress.

8 9

55

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

Completed

Establish a common digital signage framework to enable effective citizen engagement

19/20

Completed

Improve citizen engagement and services

Enable Customer Request Management

20/21

Completed

Enable Digital transformation for key services

21/22

In Progress

Establish Electronic Lodgement

20/21

In Progress

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

In Progress

20

Automate Data Integrity

20/21

In Progress

21

Streamline Application Management processing

21/22

In Progress

Develop digital skills literacy program

21/22

Completed

Review eLearning platform

21/22

Not Commenced

Develop effective, diverse, and accessible digital resource training program

21/22

In Progress

Establish roadmaps for key digital resources

21/22

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

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

25 Digital Resource Management

56

Empower Digital Government

Undertake continuous Improvement and Innovation

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 2021/22

In Progress

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

In Progress

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

In Progress

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

20/21

In Progress

Establish an open data exchange for our community

21/22

Not Commenced

57

Asset Management Plan 2021/22

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Georges River Council // Asset Management Plan 2021/22

59

What is the Asset Management Plan?

Key themes of Council’s 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..

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.

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.

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Georges River Council // Asset Management Plan 2021/22

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.

•

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?

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

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

61

Where are we now?

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

Inventory

Our Assets 1 Stadium 10 boat ramps

Roads and Footpaths 394km roads 499km footpaths Asset Value = $695 million

281 parks and reserves 3 tidal pools 41 bushland reserves

Asset Class

Quantity

Asset Class

Quantity

Roads - Pavement

394 km

Parks & Reserves

281- (473Ha)

Roads - Kerb

785 km

Playgrounds

118

Roads – Traffic devices

16,000

Buildings

154

Roads - Carparks

101

Foreshore infrastructure

257

Street Trees

27,600

Roads - Footpath

499 km

Stormwater Drainage

254 km

Stormwater - Pollution Devices

132

Value

118 playgrounds

Major Asset Class

Replacement Cost (CRC)

Depreciated Replacement Cost (WDV)

Depreciation Expense

2 golf courses

Buildings

$271,948,000

$191,410,000

$4,920,000

Other Structures

$11,999,000

$8,418,000

$477,000

Roads

$589,633,000

$413,098,000

$7,711,000

Footpaths

$105,486,000

$65,931,000

$1,338,000

Stormwater Drainage

$156,586,000

$78,265,000

$1,303,000

Open Space & Recreation

$103,377,000

$61,072,000

$3,113,000

Total

$1,239,029,000

$818,194,000

$18,862,000

7 wi-fi hotspots

Stormwater 254km stormwater pipes 8229 stormwater pits 132 stormwater quality devices Asset Value = $157 million

Buildings and other structures

Asset class value as a percentage of total replacement cost

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 = $103 million

62

5 libraries

8%

22%

13%

Buildings - $271M

6 childcare facilities

7 community halls and facilities

2 swimming pools/leisure centres and associated buildings 93 toilets, amenities and park facilities

1%

8%

Stormwater Drainage - $156M Open Space & Recreation - $103M

(sports stadiums, water treatment plant, etc.)

Asset Value = $271 million

Roads - $590M Footpaths - $105M

19 other buildings

4 investment properties

Other Structures - $12M

48%

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Georges River Council // Asset Management Plan 2021/22

1%

Condition

Pavement Condition Index

Asset Condition by Asset Class

Roads are Council’s largest asset to manage, both in asset quantity and asset value. An important measure of road assets is the Pavement Condition Index (PCI).

The PCI is a rating of 1 to 5 using a standardised system for Pavement Management. In the past 12 months Council has undertaken significant work to improve the pavement management process including predictive modelling of long term changes in PCI based on a variety of funding scenarios. Figure 2 provides the PCI profile for all road assets in 2016 and 2018. It shows the proportion of roads at each PCI level. As demonstrated, a large proportion of the assets are at the higher end of the PCI profile noting overall good condition. The average PCI for the road network in 2016 was 1.69 and in 1.46 in 2018, this outperforms Council’s target PCI of 2.8 out of 5. While overall PCI remains favourable, individual data on cracking has deteriorated which is an indicator of inadequate funding. Additional pavement base testing is identified as a key action in the upcoming asset management program to validate the concerns relating to pavement distress parameters.

Overall Condition Open Space Very Good

Stormwater Drainage

Good Footpaths

Fair Poor

Roads

Very poor

Buildings 0%

20%

40%

60%

80%

100%

2% 1% 18%

18%

Very Good Good Fair Poor Very poor

61%

Local Footpaths Public Amenities

Very Important Quite Important

Bus Shelters

Not Really Important

Children's Playground

Not Important at all

Sporting Facilities Commercial Streetscapes Picnic Facilities in Local Parks Community Buildings Cycleways 0

20

40

60

80

100

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

Figure 3 Predictive modelling of long term changes in PCI based on a variety of funding scenarios.

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

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Georges River Council // Asset Management Plan 2021/22

65

Community Strategic Plan

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

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.

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

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Georges River Council // Asset Management Plan 2021/22

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.









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Risk Management Plans

Where do we want to be?

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.

Desired levels of service

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.

Council’s service levels have been developed through an extensive community consultation process to gauge expectations of the infrastructure assets that Council provide. The project involved a representative telephone survey of 400 residents to explore the importance of, and satisfaction with, existing assets as well as priorities for the construction of new assets. A deliberative community forum was also held with ratepayers to explore the acceptable condition levels for the asset categories and where funds should be spent in the future.

current condition and service provided.

The chart below displays the respondents’ satisfaction with the existing assets on a scale of 0-10 where 0 is extremely dissatisfied and 10 is extremely satisfied.

Overall, it shows very high levels of satisfaction. The areas of higher dissatisfaction will be investigated to target the service level improvements that would best improve the level of satisfaction.

When asked about construction of new assets, most respondents indicated that it was very important or quite important to continue to construct all the type of assets Council provides.

The survey demonstrated that ratepayers felt that all services provided by Council’s infrastructure assets are important and they were generally satisfied with the

Parks Libraries Children`s Playground Sports Field/ Playing Surfaces Very Satisfied

Kerb and Gutters Drainage

Overall Satisfied

Other Sporting Facilities

Very Dissatisfied

Local Roads Commercial Streetscapes 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

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Georges River Council // Asset Management Plan 2021/22

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0%

Asset category

Sealed Roads

The Community Wants (Community LOS)

How we Deliver this (Technical LOS)

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

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

2.7

20%

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

60%

80%

100%

Local Footpaths Public Amenities

Very Important Quite Important

Bus Shelters

Not Really Important

Children's Playground

Not Important at all

Sporting Facilities Commercial Streetscapes Picnic Facilities in Local Parks Community Buildings Cycleways 0

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

40%

20

40

60

80

100

Figure 5: Perceived importance of constructing new assets

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 determined by the community.

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.

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Implementation, monitoring and review

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

Monitoring Asset Management Performance

Asset Class

Council will monitor asset performance through the following performance indicators:

Indicator 1

Infrastructure Renewals Ratio

Purpose

Benchmark

2020 %

2019 %

2018 %

2017 %

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

Min 100%

83.30

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%

1.54

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%

101.33

105.35%

114.60

127.91

2016-17

$

2017-18 $

2018-19 $

2019-20 $

Open Space

8,781,000

11,428,000

12,119,000*

10,660,000

Buildings

5,422,000

4,008,000

5,744,000

7,326,000

Roads

5,608,000

4,076,000

4,105,000

3,144,000

Footpaths

2,488,000

2,208,000

2,892,000

5,228,000

Street Lighting

2,794,000

2,155,000

2,448,000

2,422,000

Stormwater Drainage

1,114,000

1,476,000

1,451,000

1,988,000

Annual Total

26,207,000

25,351,000

28,759,000

30,768,000

Table 5. shows the industry benchmark and Council’s results for the past 4 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 2020 and 2019 Asset Management Performance results.

Numerous renewal projects were still in progress at 30 June 2020 which resulted in lower infrastructure renewal ratio result for 2020. Council had a large number of carry over projects from 2018 that were completed in 2019 increasing the renewal ratio. The renewal ratio result is dependent on timing of infrastructure projects across multiple years.

With regard to Backlog Ratio, Comprehensive condition reports in the 2018/19 and 2019/20 financial years indicated that the infrastructure asset conditions were better than expected. Overall, infrastructure assets were revalued upwards in both years.

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Life cycle management and expenditure forecasts

Infrastructure sustainability

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.

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 2020, Council’s infrastructure backlog was reported at $14.38 million.

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

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 five 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.

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

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.

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

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.

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How will we get there?

Improvement Plan Parks

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

Libraries To meet the challenges outlined above and ensure that Council’s services and Playground infrastructure are provided in a Children`s financially sustainable manner, Council must continue to Sports Field/ Playing Surfaces improve our asset management practices.

Kerb and Gutters This includes confirming resources and operational Drainage capabilities are identified and responsibility for asset Other Sporting Facilities management is allocated.

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 theVery ‘core’Satisfied competencies (Level 3) required under the Australian National Assessment Overall Satisfied Framework (NAF) which are shown by the red line. It is expected that Council’s asset management Very Dissatisfiedmaturity will change to core levels in all areas and develop towards advanced levels in the next 3 years.

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

Entertainment Centre / Museum Local Footpaths As such this assessment provides Council with the opportunity to understand how its asset management Public Amenities practices, systems and processes compare with industry standards and other councils 0 and also 2 to 4 measure their improvement in various areas of asset management capability.

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Strategic Actions – Improvement Plan

Georges River Council // Asset Management Plan 2021/22

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.

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 council’s asset management capability, including resource requirements and timeframes is provided below.

6

8

10

77

Asset Management Improvement Plan

Action

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

78

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

Ongoing

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

Commenced

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

Commenced

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

Georges River Council // Asset Management Plan 2021/22

Responsibility

Priority

Timeframe

7

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

AE

High

Commenced

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

Complete

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

AE

Medium

Ongoing

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

AE

Medium

Complete

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

AE

Medium

Commenced

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 Strategic Financial Management Specialist EO Executive Manager Engineering Operations CFO Chief Financial Officer MI Manager Infrastructure

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Long term Financial Plan 2021/22

80

Georges River Council // Long Term Financial Plan 2021/22

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Executive Summary This year will be a critical year for securing Council’s future. The 2021/22 Budget has been prepared assuming Council receives the approval from the NSW Government for the Special Rate Variation and also implements a single, fair, equitable and consistent rating system for the entire Georges River Area.

The 2021/22 budget is an important year for Council and the community. The budget has been prepared with a focus on the feedback received from the Community during our New Rates 2021 consultation. It has incorporated the service standards that are expected, identified savings, and assumes the special rate variation.

Without the special rate variation, Council’s future would be at risk, with immediate staff and service reductions being required. The 2021/22 budget is a considered budget that places Council on the path to securing its long-term financial sustainability in future years.

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.

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/services.

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.

In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $6 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted.

Model 2 of the Long Term Financial Plan (LTFP) has been built using the budget for 2021/22 as the base and presents a financial projection of the next ten years.

Model 1 highlights to forecast of Council should no action be taken to resolve the ongoing operating deficits.

Based on this outlook the implementation of Council’s financial strategies, outlined within this document, are essential in securing the sustainability of Council.

•

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 three 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 had an adopted forecasted operating deficit (before capital grants) for 2021/22 of $12 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.

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In preparing the draft 2021/22 Budget, continuation of savings from prior years and the deferment of projects has been required to improve the prospect of achieving financial sustainability into the future.

Based on this approach the adopted forecast deficit of $12 million has been reduced to a projected deficit of $4.5 million. Though these measures have been introduced and the projected deficit reduced the Council’s financial results improving, depend on an increase to rates income or substantial service reductions.

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:

Georges River Council // Long Term Financial Plan 2021/22

Financial Governance Principles

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

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Financial Sustainability Challenges Georges River Council takes great pride in its role of 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.

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.

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 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.

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

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.

Experiencing declining profitability, amplified by the loss of income of $2.3m from the former Hurstville Council Special Rate Variation (SRV). Due to stop on 1 July 2021.

•

The compounded impact of the expiring SRV results in a forecast loss of $19m from 2021/2022 to 2028/2029.

•

Dramatic decline in the cash rate and the loss of investment income used to fund operations of $5m in 5 years.

•

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.

Georges River Council // Long Term Financial Plan 2021/22

In examining the financial statements relating to the former councils, over the past 10 years, there have been cumulative losses in excess of $200 million without grants and contributions.

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.

•

If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards.

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 operating results (actual and forecast); display a downward trend leading to increasingly negative results from 2021/22 onwards. There is a dramatic reduction in Rates income from 2021/22 onwards, due to the

84

termination of the SRV that commenced over 10 years ago. The impact on the operating results is a loss of $2.3m income in that year, compounded each year thereafter.

The COVID-19 pandemic presented fresh challenges to Council’s efforts to improve its financial position, with the financial impact of the pandemic accelerating the financial deficits that were forecast in future years.

Recovery is anticipated to be slow and gradual rather than an immediate bounce back.

Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable. Council’s service portfolio is complex and diverse. It provides 200 services which our community members value, and are essential to a thriving and growing community.

85

Financial Strategy Based on the challenges presented in this Long Term Financial Plan, Council is building on the strong foundations established to ensure the delivery of community aspirations outlined in the Community Strategic plan. To achieve this, Council will take the following steps: 1. Establish a Financial Sustainability Working Group 2. Engage with the community on Council’s discretionary service portfolio and the level of support to maintain service levels.

3. Review the rates structure to bring equity of rates charged to ratepayers 4. Seek the views of the community in applying for a Special Rate Variation that will maintain the expiring SRV and contribute towards reducing operating losses 5. Make an application to the Independent Pricing and Regulatory Tribunal (IPART) to increase Council’s rate income 6. Explore potential avenues to raise new streams of income and increase current income levels through a wider application of the user pays model 7. Explore potential savings in operating expenditure by reviewing operating processes 8. Apply strategic assets management principles, ensuring compliance with relevant legislation 9. Continue to benchmark activities and align operations where necessary, to yield optimum results 10. Introduce and implement changes in focus, to view activities as “commercial” or “non-commercial” 11. Evaluate affordability of capital projects from a “long term operating impact” point of view 12. Continue to identify and implement initiatives that improve service efficiency and productivity 13. Evaluate the feasibility of major projects from a cost/benefit perspective and understand the affordability payback period in respect of each 14. Focus on bridging the gap between increases in income and expenditure 15. Mitigate the impact of external factors on Council’s financial sustainability 16. Provide financial hardship support to those adversely impacted 17. Focus on works projects that are funded from externally restricted reserves.

86

Georges River Council // Long Term Financial Plan 2021/22

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Planning for our Future – Rates Consultation 2020 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.

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.

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. Information on Council efficiencies to date can be further explored in the Amalgamation Journey Final Report.

Following the adoption of the budget in June 2020 and the presentation of the revised LTFP, Council resolved to recommence consultation with the community on a New Rates 2021 proposal.

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.

The three options consulted on with the community in 2019 are outlined on the right:

The recommendations to Councillors in February 2020, was based on extensive community consultation that took place in October and November 2019, through face-to-face community information sessions, surveys to all rate payers and other engagement activities.

The consultation undertaken last year was comprehensive in that three options were presented to the community. The preferred option was option 1, Financially Sustainable and was developed after reviewing multiple options with a varying degree of impact, along with comparative metropolitan rating information. The preferred option is based on utilising our stable income source to close the gap between income and expenditure, along with reviewing services to improve efficiency.

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%.

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Georges River Council // Long Term Financial Plan 2021/22

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Planning for our Future – New Rates 2021

For the average residential ratepayer, the proposed changes will mean around 60 cents extra per week in the first year followed by $1.35 per week increases each year for the following 4 years.

For the average business ratepayer, the proposed changes will mean $4.30 extra per week in the first year followed by $5.50 week increases each year for the following 4 years.

Following the decision of Council in February 2020 to defer the 2020 proposal, consultation recommenced in September 2020.

The new proposal's total increase is equivalent to Council’s 2019 proposal of a permanent one-off 10.6% increase (rate peg of 2.5% and 8.1% SRV) that did not proceed. The new proposal is a permanent multi-year SRV spread over 5 years. The total Council rate income increase is 29% (inclusive of 16.5% SRV and assumed rate pegs of 2.5% per year or total of 12.5%). The proposed SRV will result in additional rate income of approximately $23 million over 5 years.

All ratepayers were provided with a brochure outlining the proposed new rating system. The brochure was comprehensive and was complimented by online videos, a rates calculator, webinars and frequently asked questions on Council’s website.

If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards.

Former council's average rate

per

Currrent Year

2021/22

2.6%

5.8%

Kogarah

$1,221

$1,251

Hurstville

$1,081

$1,110

Kogarah

$3,167

$3,006

Hurstville

$3,043

$3,477

Total council rate income increase %

Residential

Business

If the proposed new rating system is not approved the average residential rate would be $1,136, the average business rate would be $3,074 and the minimum rate would be $598.

Houses in the old Kogarah Council area will pay almost three times what an apartment currently pays (an average increase of $300) and apartments will drop – broadening the inequity instead of addressing it.

Houses in the old Hurstville Council area will have an average decrease of $25 and those who had a large rate increase in 2020/21 will not receive a reduction. Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable.

On 8 February 2021, Council resolved to submit the New Rates 2021 proposal to IPART. The 2021/22 Integrated Planning and Reporting documents have been prepared incorporating and guided by the New Rates 2021 proposal.

The illustrations below summarise the impact of the proposed rate increase and minimum changes.

Current average and minimum annual rates

Proposed 2021/22 average and minimum annual rates

Hurstville

$586

Hurstville

$586

Georges River

$1,139 Average

$967 Minimum

Residential

90

Georges River

$967 Minimum

$3,087 Average

Business

Georges River Council // Long Term Financial Plan 2021/22

$1,500

Georges River

Kogarah

Kogarah

Strategic Centre

Georges River

$1,169

$965.80 Minimum

Average

Residential

Current Year

2021/22

2022/23

2023/24

2024/25

2025/26

$1,139

$1,169

$1,233

$1,300

$1,372

$1,447

$966

$990

$1015

$1,040

$1,066

$3,311

$3,558

$3,822

$4,105

$4,408

$1,500

$1,538

$1,576

$1,615

$1,656

$1,100

$1,128

$1,156

$1,185

$1,214

5.8%

5.8%

5.8%

5.8%

5.8%

Residential average Residential minimum Business average Minimum for Kogarah and Hurstville CBD Business minimum other Total council rate income increase % Total council rate income increase $

Kogarah

$967

Hurstville

$586 $3,087

Kogarah $967 Hurstville $586 Kogarah $967 Hurstville $586 2.6%

$4.1 million $4.3 million $4.6 million $4.9 million $5.1 million

Business Other Georges River

$3,311

$1,100 Minimum

Average

Business

Disclaimer: Houses and apartments may be on the minimum, though the majority of minimum rate properties are apartments. The averages quoted within this document have been developed from financial modelling based on current property data and land values as of 1 July 2020. A new set of land values will be supplied by the NSW Valuer General and applied from 1 July 2023. The final 2021/22 rate levies may vary due to Independent Pricing and Regulatory Tribunal (IPART) decisions and marginal movements due to model sensitivity.

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Local Infrastructure Contributions and Projects The New South Wales (NSW) local infrastructure contributions (LIC) system helps provide new and growing communities with appropriate infrastructure.

The NSW LIC system is regulated by the Environmental Planning and Assessment Act 1979 (the Act) and the Environmental Planning and Assessment Regulation 2000. Section 7.11 allows councils to levy contributions towards the cost of providing local infrastructure.

Contributions plans set out the local infrastructure required to meet the demand from new development, and the contributions a council can levy on developers to fund the necessary land and works.

A summary of the general requirements for local infrastructure contributions is provided below: •

•

•

•

•

•

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If councils wish to seek a contribution under s7.11 of the Act, they are required under s7.13 to prepare a contributions plan. The plan needs to establish a nexus or relationship between the expected types of development in the area and the demand for public amenities and services to meet development related infrastructure demand.

Section 7.11 contributions are imposed by way of conditions of development consent. The requirement for a contribution is generally satisfied by paying a monetary contribution, dedicating land free of cost and works-in-kind, or all of the above as determined by the consent authority.

For contributions plans proposing contribution rates above the relevant cap, the essential works list applies and for contributions plans with rates below the relevant cap, the essential works list does not apply.

The contribution must be towards ‘public amenities or services’. While public amenities and public services are not expressly defined, they do not include water supply or sewerage services.

Contributions plans can require the payment of a monetary contribution towards the cost of providing the public amenities or public services (being the cost as indexed in accordance with the regulations)..

Development timeframes are such that there is often several years between when LICs are collected and the infrastructure is required.

Georges River Council // Long Term Financial Plan 2021/22

Voluntary planning agreements (VPAs) is another form of revenue generated for local infrastructure from developments. They are arrangements between developers and either councils or the State Government for infrastructure contributions collected for purposes not covered by a contributions plan. Section 7.4 of the Act allows councils and developers to voluntarily agree to a contribution arrangement. Examples of this could include a developer paying an additional contribution in relation to a change to a planning instrument or contributing infrastructure that was not anticipated at the time the contributions plan was developed. Contributions collected under a VPA do not have to demonstrate the same direct support for the infrastructure needs associated with the development as those collected under a contributions plan, although they must be related to the development in some way.

Both the historical and new plans provide for a range of funding for community infrastructure projects across the following categories these include, but are not limited to: • Open space facilities including open space embellishment and land acquisition, and •

Community and recreational facilities including indoor sports facilities, libraries, community centres and childcare facilities, and

•

Public domain works including footpath paving, street tree planting, street lighting and street furniture, and

•

Traffic and transport facilities including roads and intersections, active transport, and traffic calming facilities.

As Council is an amalgamated, Georges River Council is operating an extensive list of plans from the former councils. In 2021/22 Georges River Council will be finalising a Georges River Council Local Infrastructure Contribution plan.

The funding of these projects can be a mix of development contributions as well as Council revenue and grant funding.

Georges River Council Infrastructure Contribution Reserve Balances

2019/2020 Actual Closing Balance

2020/2021 Forecast Closing Balance

2020/2021 Forecast Closing Balance

$'000

$'000

$'000

Former Kogarah Section 7.11 Contributions Plans – Commenced 12 March 2013

36,093

38,618

43,265

Former Hurstville Section 7.11 Contributions Plans – Repealed 14 March 2013

7,056

6,046

5,939

Former Hurstville Section 7.11 Contributions Plans – commenced 14 March 2013

17,037

10,673

12,421

3,940

3,940

2,250

2,179

The purpose of the Council’s LIC plans is to: •

•

Provide the framework for the efficient and equitable determination, collection and management of contributions towards the provision of local infrastructure in the Georges River LGA; and Ensure Council’s management of local infrastructure contributions complies with relevant legislation and practice notes; and

•

Establish the relationship between expected development and proposed local infrastructure to demonstrate that section 7.11 contributions under this plan are reasonable; and

•

Ensure that developers make a reasonable contribution to the provision of local infrastructure required for development anticipated to occur up to 2036; and

•

•

Ensure that the existing community is not unreasonably burdened by the provision of local infrastructure required, either partly or fully, as a result of development in the area; and To allow the opportunity for local infrastructure, or the dedication of land at no cost to Council, to be provided by developers or land owners in lieu of paying a monetary contribution when it accords with Council objectives or outcomes.

Former Hurstville and Kogarah Section 7.11 Contributions Plans – Various Georges River Council Section 94A Plan

4,355

New Georges River Council Section 7.11 Contributions Plan (Anticipated expenditure depending approval) Section 7.13 - Court Ordered Development Consent Contributions

(1,932) 94

-

-

Voluntary Planning Agreements

10,419

7,611

7,656

Totals

75,054

69,138

73,468

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Socio-Economic Snapshot When preparing the Financial Strategy and Long Term Financial Plan, a key factor taken into consideration was the socio-economic profile of the Georges River Local Government Area (LGA). With rates, annual charges and user fees and charges making up the majority of Council’s total revenue, it is important that the capacity to pay is one of those factors.

Key insights of our community:

Population

156,293 Estimated residential population in 2017 185,346 Estimated population by 2030 8.3% Population increase from 2011 census to 2016 15% Growth projected for future years

An area with an SEIFA of 1000 is considered average while a lower score indicates that the area is experiencing more disadvantage.

The SEIFA index by suburb is outlined below. Whilst there is some variation across the LGA, the overall Georges River Council Local Government Area (1020) is above the NSW (1001) and Greater Sydney (1018) index.

Council understands that rate payers may experience financial hardship and has options available under relevant legislation to provide support.

Connells Point - Kyle Bay

1,101.00

Oatley

1,098.80

Lugarno

1,097.20

Hurstville Grove

1,082.90

Blakehurst

1,078.00

Kogarah Bay - Carss Park

1,071.90

Peakhurst Heights

1,066.40

Sans Souci

1,063.30

Beverley Park - Ramsgate

1,057.50

Mortdale

1,039.60

SSROC

1,023.70

Georges River Council area

1,020.00

Greater Sydney

1,018.00

Kogarah

1,015.10

Penshurst

1,014.40

52.9% of people in the area had a tertiary qualification compared to 52.7%

St George Region

1,012.30

for Greater Sydney

Peakhurst

1,008.80

7.7% are attending university, compared to Greater Sydney 6.1%

Carlton

1,002.40

Households

Kingsgrove

1,002.20

Australia

1,001.90

New South Wales

1,001.00

Household income

$1,654 Median weekly income 25.8% the LGA's largest quartiles were in the largest group for household income

Employment

6.5% unemployment rate compared to 6.3% for NSW 62% of workforce worked full time and 36% part time

Education

55,000 Residential dwellings 45.8% of dwellings were medium or high density (16.3% medium, 29.5% high) 44% of households in the area had access to two or more vehicles 37% of the area’s workforce also live in the area 2.84 Average household size is greater compared to Greater Sydney 2.72

Housing tenure

62.9% households were purchasing or fully owned their home compared to Greater Sydney 59%

30.8% were renting privately $2,167 Median monthly mortgage repayment $450 Median weekly rent 50.9% of renting households paying $450 or more in rent 94

The SEIFA Index measures the relative level of socioeconomic disadvantage based on a range of Census characteristics. The index is derived from attributes that reflect disadvantage such as low income, low educational attainment, high unemployment, and jobs in relatively unskilled occupations, and is useful in identifying geographic areas that are relatively disadvantaged.

Georges River Council // Long Term Financial Plan 2021/22

South Hurstville Beverly Hills - Narwee

998.7 992

Allawah

989.4

Hurstville (City Centre)

972.1

Hurstville (total)

970.1

Hurstville (Remainder)

969.5

Riverwood

967.7

Source: * Source: Australian Bureau of Statistics, Census of Population and Housing 2016. Compiled and presented in profile.id by .id, the population experts https://home.id.com.au

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Financial Models Overview

Model Sensitivity These models are based on assumptions which represent the most likely outcome, given the prevailing economic and operating environment. A 1% variations in any one of these assumed rates (e.g. Inflation, Wage increases, Interest on investments) could have substantial impacts on the net results.

Model 1 – Current situation (without corrective action) based on historical trend Council had an adopted forecasted operating deficit (before capital grants) for 2021/22 of $12 million. In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $6 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 2021/22 budget. Based on this approach the adopted forecast deficit of $12 million has been reduced to a projected deficit of $4.5 million in 2021/22.

Model 2 – New Rates 2021 Proposal (Special Rate Variation (SRV) of 5.8% each year over a 5 year period commencing in 2021/22 plus a further $12 million in savings identified over a number of years) Model 1 highlights the deteriorating financial results of current operations. Increasing deficits (sans Capital Grants income), if left unaddressed, will inevitably lead to council being unable to fulfil its mandated obligations. In addition, Council’s income is to be adversely affected by the termination of a current Special Rate Variation (from the former Hurstville City Council) with effect from 1 July 2021. This will reduce income by $2.3 million.

Consequently, Model 2 outlines the impact of a proposal to implement a permanent Special Rate Variation at 5.8% per annum (commencing 2021/22) for 5 years, to generate additional income of approximately $24 million over 5 years. This will be a permanent increase which its cumulative benefits will improve the financial sustainability of Council. An application has been made to IPART in this regard.

A 1% increase in the Inflation rate can adversely affect the Result (net of Capital Grants) by about 14%. Similarly an additional 1% increase in wage costs can adversely affect the net result by about 46%.

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 financial outlook for Council (based on the current service portfolio) is not favourable. While gross surpluses are being generated over the short term, the 10 year trend, as projected in the Long Term Financial Plan is downward. As the Operating Performance Ratio indicates, council generates inadequate operating income to cover its operating expenditure, with negative results increasing over the 10 year period.

Council is now working towards introducing corrective measures to arrest the decline in performance and ensure long term financial sustainability. Models 2 and 3 show financial outcomes of proposed actions.

Model 2 also includes a proposition to reduce Council’s costs by $12 million over 3 years from 2020/21.

The combined effect of these 2 measures is projected to resolve the unprofitable financial position of council and instill sustainable positive financial outcomes over the 10 years of the current Long Term Financial Plan.

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 ideally, growing.

Special Rate Variation Proposal

•

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 improving 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 is 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.

2021/22

2022/23

2023/24

2024/25

2025/26

5.8%

5.8%

5.8%

5.8%

5.8%

Model 3 – No Special Rate Variation: Expenditure Savings through Service reductions from 2021/22 onwards Model 3 presents a potential scenario, where the application for a Special Rate Variation, as proposed in Model 2, is not approved by IPART or Council resolves to, not implement the increase.

As an alternative, Council will be compelled to discontinue some services and/or reduce levels of service in many areas, in an attempt to decrease the cost burden on its operations. This is expected to reduce costs by approximately $43 million while income is also projected to reduce by around $7 million over the 5 year period.

While there will be some improvement in council’s financial performance as compared to the current position, these measures are not expected to sustainably resolve the financial problems. In addition, services to the community will be discontinued and/or delivered at a reduced level, contrary to feedback received during the community consultation on the proposal.

96

Georges River Council // Long Term Financial Plan 2021/22

97

98 Georges River Council // Long Term Financial Plan 2021/22

99

11,871

Other revenues

551

(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

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

(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

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

$ '000

$’000

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

2019/20 BUDGET

2018/19 ACTUAL

(3,270)

Result Net of Capital Grants – Surplus/(Deficit)

Model 1 Statement of Financial Position

113,652

80,618

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

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

2023/24

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

2024/25

2024/25

(15,661)

7,879

7,879

0

(28,691)

36,570

(138,336)

(24,648)

(45,918)

(67,770)

174,906

(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

2025/26

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

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

1,971

18,808

108,139

$ '000

ESTIMATE

(1,589,031)

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

12,511

23,540

12,514

2,075

18,350

105,916

$ '000

ESTIMATE

ESTIMATE

(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

ESTIMATE

(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

ESTIMATE

(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

2021/22

(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

2020/21

(7,944)

6,124

1,061

5,063

(71)

32,483

(74)

25,765 (20,631)

52,114

(120,256)

(21,935)

(39,591)

(58,730)

146,021

9,175

14,068

8,877

3,426

15,496

94,979

(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)

(42,454) (21,606)

Materials and Contracts Other Expenses Total Operating Expenditure

(56,508)

Employee Costs

Operating Expenditure

172,682

36,304

Grants and Contributions - Capital Total Operating Revenue

11,153

Grants and Contributions - Operating

5,891

14,679

Interest and investment revenue

92,784

$ '000

$’000

User Charges and Fees

2019/20 BUDGET

2018/19 ACTUAL

Rates and Annual Charges

Operating Revenue

Model 1 Income Statement

Model 1 – Current situation (without corrective action) based on historical trend

Detailed Financial Models

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

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

(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

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

(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

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

100 Georges River Council // Long Term Financial Plan 2021/22

101

(48,972) (28,859)

(70,245) (24,355)

< 30

Cash Coverage Ratio

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)

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 - Rates

> 0%

> =1.0x

Debtor Days Outstanding - Other Debtors (net of 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

2020/21

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

2021/22

0.6%

66.5%

3.9

96.3%

89.2%

58.0

50.0

5%

0.9

28.5

1.8

79.8%

-5.9%

BUDGET

2022/23

2023/24

2024/25

2025/26

2026/27

2027/28

2027/28

101,206

107,663

(6,457)

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

2028/29

94,829

101,206

(6,377)

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

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%

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%

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%

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%

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%

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%

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%

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 ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE

2026/27

107,663

114,002

(6,339)

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

2025/26

114,002

120,047

(6,045)

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

2024/25

120,047

123,617

(3,570)

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

2023/24

123,617

126,224

(2,607)

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

2022/23

126,224

129,476

(3,252)

(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

2021/22

129,476

130,661

(1,185)

(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

2020/21

130,661

143,338

(12,677)

(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

2019/20

143,338

166,710

(23,372)

(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

166,710

182,036

Cash and Cash Equivalents - End of the Year

(15,326)

Cash and Cash Equivalents - Beginning of the Year

(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 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

102 Georges River Council // Long Term Financial Plan 2021/22

103

68,530

74

1,625

1.7%

40.3%

3.3%

53.7%

45,057

71

1,125

1.7%

41.7%

2.5%

65.0%

2.00%

38,370

55

625

1.8%

40.0%

1.5%

61.1%

2.02%

2.60%

BUDGE T

2020/21

35,000

22

125

1.9%

40.2%

1.3%

60.5%

2.27%

2.50%

ESTIMAT E

2021/22

35,000

0

0

1.9%

40.3%

1.5%

60.5%

2.52%

2.40%

ESTIMAT E

2022/23

35,000

0

0

1.9%

40.6%

1.5%

60.5%

2.52%

2.30%

ESTIMAT E

2023/24

35,000

0

0

1.9%

40.6%

1.5%

60.6%

2.50%

2.20%

ESTIMAT E

2024/25

35,000

0

0

2.0%

40.4%

1.5%

60.5%

2.49%

2.10%

ESTIMAT E

2025/26

35,000

0

0

2.0%

40.8%

1.5%

60.5%

2.40%

2.00%

ESTIMAT E

2026/27

35,000

0

0

2.0%

40.7%

1.5%

60.4%

2.30%

2.00%

ESTIMAT E

2027/28

35,000

0

0

2.0%

40.7%

1.5%

60.4%

2.30%

2.00%

ESTIMAT E

2028/29

113,652 (3,270)

Result Net of Capital Grants – Surplus/(Deficit)

80,618

551

32,483

(7,944)

6,124

1,061

5,063

(71)

(20,631)

(19,557) (74)

25,765

(120,256)

(21,935)

(39,591)

(58,730)

52,114

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)

Surplus/(Deficit) prior to Depreciation & Financing Costs Depreciation

(120,568)

(42,454) (21,606)

Materials and Contracts Other Expenses Total Operating Expenditure

(56,508)

Employee Costs

Operating Expenditure

146,021

9,175 172,682

11,871 Total Operating Revenue

Other revenues

36,304

8,877 14,068

11,153

3,426

Grants and Contributions - Capital

5,891

15,496

94,979

Grants and Contributions - Operating

Interest and investment revenue

14,679

$ '000

$’000 92,784

BUDGET

ACTUAL

User Charges and Fees

2019/20

2018/19

Rates and Annual Charges

Operating Revenue

Model 2 Income Statement

(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

2020/21

(4,466)

13,750

2,975

10,775

(25)

(24,894)

35,694

(128,520)

(23,635)

(44,390)

(60,495)

164,214

12,295

18,216

15,364

1,050

15,148

102,141

$ '000

BUDGET

2021/22

1,908

17,801

17,801

(2)

(25,692)

43,495

(126,031)

(22,100)

(43,508)

(60,423)

169,526

12,605

15,893

15,751

2,730

15,530

107,017

$ '000

ESTIMATE

2022/23

3,875

20,169

20,169

(27,546)

47,715

(128,387)

(22,282)

(43,855)

(62,250)

176,102

12,922

16,294

16,148

2,663

15,921

112,154

$ '000

ESTIMATE

2023/24

6,097

22,799

22,799

0

(29,038)

51,837

(131,258)

(22,429)

(44,952)

(63,877)

183,095

13,245

16,702

16,551

2,707

16,320

117,570

$ '000

ESTIMATE

2024/25

6,636

23,754

23,754

0

(30,543)

54,297

(136,235)

(24,088)

(46,070)

(66,077)

190,532

13,574

17,118

16,964

2,874

16,726

123,276

$ '000

ESTIMATE

2025/26

5,124

22,653

22,653

0

(32,061)

54,714

(140,042)

(24,039)

(47,176)

(68,827)

194,756

13,899

17,529

17,371

3,089

17,127

125,741

$ '000

ESTIMATE

2026/27

6,597

24,529

24,529

0

(32,000)

56,529

(142,479)

(24,081)

(48,259)

(70,139)

199,008

14,218

17,932

17,771

3,313

17,519

128,255

$ '000

ESTIMATE

2027/28

6,161

24,505

24,505

0

(32,587)

57,092

(146,267)

(24,634)

(49,368)

(72,265)

203,359

14,545

18,344

18,180

3,549

17,921

130,820

$ '000

ESTIMATE

2028/29

Model 2 – New Rates 2021 Proposal (Multi-year permanent Special Rate Variation of 5.8% each year for 5 years from 2021/22 plus projected Expenditure Savings of $12m over 3 years from 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

2.30%

%

Rate Pegging Limit 1.90%

BUDGE T

ACTUA L

Assumptions 2.70%

2019/20

2018/19

Model 1

104 Georges River Council // Long Term Financial Plan 2021/22

105

$’000

(1,522,818)

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

1,522,818

166,710

182,036 166,710

Cash and Cash Equivalents - End of the Year

143,338

(23,372)

(15,326)

(500) (500)

(48,972) (28,859)

(70,245) (24,355)

(500) (500)

1,763

5,987

140 9,529

3,443

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

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

4,282 14,068

7,372 (248)

11,736 248

6,143 36,304

0

238

$ '000

$’000

95,098 16,881 8,548

BUDGET

ACTUAL

92,586 13,325 11,644

2019/20

(1,547,083)

(103,712)

(1,443,371)

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

130,690 23,475 (368) 161 585 154,543

$ '000

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

2020/21 BUDGET

2018/19

(1,528,942)

(103,712)

(1,425,230)

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)

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

Total Equity

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

ACTUAL

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

2019/20 BUDGET

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 2 Statement of Financial Position 2021/22

130,690

143,338

(12,648)

(500) (500)

(40,529) (11,541)

5,000

2,622 21,366

0 (607)

(60,104) (42,030) (23,259) (55)

9,004 78

0

88,144 16,527 11,088

$ '000

BUDGET

2020/21

2022/23

143,403

130,690

12,713

(500) (500)

(32,120) (7,967)

4,575

1,362 18,216

0 21,180

(60,236) (43,957) (23,434) (25)

12,622 0

0

105,884 15,359 14,967

$ '000

BUDGET

2023/24

146,909

143,403

3,506

(125) (125)

(40,670) (22,408)

600

2,345 15,893

0 25,463

(61,269) (43,669) (23,294) (2)

12,975 0

0

109,481 15,488 15,753

$ '000

ESTIMATE

2024/25

156,340

146,909

9,431

0

(41,500) (21,945)

600

2,752 16,294

0 31,285

(61,800) (44,398) (22,522) 0

13,101 0

0

114,875 15,878 16,151

$ '000

ESTIMATE

168,593

156,340

12,253

0

(41,500) (21,514)

600

2,772 16,702

0 33,679

(63,476) (44,776) (22,686) 0

13,418 0

0

118,636 16,277 16,556

$ '000

ESTIMATE

2024/25

(1,621,602)

(103,712)

(1,517,890)

1,621,602

(34,520)

0

0

(18,174) (596) 0 (15,750) (34,520)

1,656,122

1,452,511 17,660 4,038 1,474,209

168,593 12,925 (368) 178 585 181,913

$ '000

ESTIMATE

2023/24

(1,598,803)

(103,712)

(1,495,091)

1,599,803

(34,196)

0

0

(18,251) (596) 0 (15,349) (34,196)

1,632,999

1,441,318 17,660 3,369 1,462,347

156,340 13,921 (368) 174 585 170,652

$ '000

ESTIMATE

2022/23

(1,578,634)

(103,712)

(1,474,922)

1,578,634

(34,525)

0

0

(19,030) (596) 0 (14,899) (34,525)

1,613,159

1,428,783 17,660 2,550 1,448,993

146,909 16,870 (368) 170 585 164,166

$ '000

ESTIMATE

2021/22

(1,560,833)

(103,712)

(1,457,121)

1,560,833

(36,017)

0

0

(19,551) (596) (125) (15,745) (36,017)

1,596,850

1,414,544 17,660 1,581 1,433,785

143,403 19,279 (368) 166 585 163,065

$ '000

BUDGET

2025/26

182,139

168,593

13,546

0

(41,729) (21,170)

600

2,921 17,118

0 34,636

(65,534) (46,522) (23,873) 0

13,811 0

0

123,104 16,681 16,969

$ '000

ESTIMATE

2025/26

(1,645,356)

(103,712)

(1,541,644)

1,645,356

(34,852)

0

0

(17,963) (596) 0 (16,293) (34,852)

1,680,208

1,462,361 17,660 4,795 1,484,816

182,139 12,853 (368) 183 585 195,392

$ '000

ESTIMATE

2026/27

196,157

182,139

14,018

0

(41,750) (20,554)

600

3,138 17,529

0 34,501

(68,149) (47,013) (24,383) 0

13,964 0

0

125,667 17,803 17,332

$ '000

ESTIMATE

2026/27

(1,668,009)

(103,712)

(1,564,297)

1,668,009

(35,353)

0

0

(17,786) (596) 0 (16,971) (35,353)

1,703,362

1,470,868 17,660 5,377 1,493,905

196,157 12,896 (368) 187 585 209,457

$ '000

ESTIMATE

2027/28

210,790

196,157

14,633

0

(41,980) (20,136)

600

3,373 17,932

0 34,708

(69,815) (48,761) (24,399) 0

14,295 0

0

128,179 17,476 17,733

$ '000

ESTIMATE

2027/28

(1,692,538)

(103,712)

(1,588,826)

1,692,538

(34,881)

0

0

(16,990) (596) 0 (17,295) (34,881)

1,727,419

1,479,624 17,660 6,021 1,503,305

210,790 12,916 (368) 191 585 224,114

$ '000

ESTIMATE

2028/29

226,195

210,790

15,405

0

(42,000) (19,583)

600

3,523 18,344

0 34,938

(71,741) (49,897) (24,812) 0

14,628 0

0

130,742 17,877 18,141

$ '000

ESTIMATE

2028/29

(1,717,043)

(103,712)

(1,613,331)

1,717,043

(34,702)

0

0

(16,287) (596) 0 (17,819) (34,702)

1,751,745

1,487,993 17,660 6,465 1,512,118

226,195 13,020 (368) 195 585 239,627

$ '000

ESTIMATE

106 Georges River Council // Long Term Financial Plan 2021/22

107

< 30

Debtor Days Outstanding - Other Debtors (net of Rates)

Cash Coverage Ratio

1.7% 1,625 74 68,530

% % % $ '000 $ '000 $ '000

Interest Rate on investments Employee Costs as a % of Total Expenditure Depreciation as a % of Gross Cost of Assets Loans outstanding Interest payments on loans Capital Works Program

40.3%

3.3%

53.7%

%

Rates and Annual Charges as a % of Total Revenue

1.90%

2.3%

ACTUAL

2018/19

0.6%

71.9%

%

%

1%

> 60%

6.2

101.3%

99.8%

35.3

11.7

5%

1.9

27.5

Rate of Inflation

Gross SRV including Rate Peg

Rate Pegging Limit

Assumptions

Model 2

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)

> 3 Mths

= > 100%

(Measures Council's Collection Rate of Debtors)

= > 100%

Debtor Collection Rate - Rates Debtor Collection Rate - Other Debtors (net of Rates)

(Measures Council's management of Debtors)

< 30

> 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

1.9

> 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

45,057

71

1,125

1.7%

41.7%

2.5%

65.0%

2.00%

2.7%

BUDGET

2019/20

0.5%

67.6%

4.3

100.2%

100.1%

54.5

11.0

-2%

1.1

20.5

1.9

84.3%

-6.8%

BUDGET

2019/20

38,370

55

625

1.8%

40.0%

1.5%

61.1%

2.02%

2.6%

BUDGET

2020/21

0.6%

66.5%

3.4

96.3%

89.2%

58.0

50.0

5%

0.9

28.5

1.8

79.8%

-5.9%

BUDGET

2020/21

27,623

25

125

1.9%

39.4%

1.3%

62.2%

2.27%

5.8%

2.0%

BUDGET

2021/22

0.6%

64.9%

3.8

100.7%

103.7%

56.0

35.0

1%

0.8

33.3

1.7

79.6%

-5.1%

BUDGET

2021/22

35,000

2

0

1.9%

39.8%

1.5%

63.1%

2.52%

5.8%

2.0%

ESTIMATE

2022/23

0.6%

64.5%

4.0

99.9%

102.3%

56.0

25.0

5%

0.8

217.3

1.7

81.3%

1.2%

ESTIMATE

2022/23

35,000

0

0

2.0%

39.9%

1.5%

63.7%

2.52%

5.8%

2.0%

ESTIMATE

2023/24

0.6%

63.6%

4.6

100.4%

102.4%

53.0

15.0

4%

0.7

No Debt

1.9

81.6%

2.4%

ESTIMATE

2023/24

35,000

0

0

2.0%

39.8%

1.5%

64.2%

2.50%

5.8%

2.0%

ESTIMATE

2024/25

0.6%

62.7%

5.4

99.9%

100.9%

52.0

11.0

4%

0.7

No Debt

2.1

81.8%

3.7%

ESTIMATE

2024/25

35,000

0

0

2.1%

39.6%

1.5%

64.7%

2.49%

5.8%

2.0%

ESTIMATE

2025/26

0.6%

61.7%

6.1

100.4%

99.9%

50.0

11.0

4%

0.7

No Debt

2.4

82.1%

3.8%

ESTIMATE

2025/26

35,000

0

0

2.1%

40.0%

1.5%

64.6%

2.40%

2.0%

ESTIMATE

2026/27

0.6%

60.6%

6.9

100.0%

99.9%

48.0

11.0

2%

0.6

No Debt

2.6

82.1%

2.9%

ESTIMATE

2026/27

35,000

0

0

2.0%

40.2%

1.5%

64.4%

2.30%

2.0%

ESTIMATE

2027/28

0.6%

59.7%

7.7

100.1%

99.9%

47.0

11.0

2%

0.7

No Debt

3.0

82.1%

3.6%

ESTIMATE

2027/28

35,000

0

0

2.0%

40.4%

1.5%

64.3%

2.30%

2.0%

ESTIMATE

2028/29

0.6%

58.7%

8.4

100.0%

99.9%

46.0

11.0

2%

0.6

No Debt

3.3

82.0%

3.3%

ESTIMATE

2028/29

108 Georges River Council // Long Term Financial Plan 2021/22

109

$’000

11,871

Other revenues

$ '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)

(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

BUDGET

ACTUAL

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

2019/20

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

6,124

1,061

5,063

(1,547,083)

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

1,547,083

(36,335)

(125)

(125)

(19,628) (596) (500) (15,486) (36,201)

1,583,418

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

130,690 23,475 (368) 161 585 154,543

$ '000

BUDGET

2021/22

(1,560,951)

(1,457,239) (103,712)

1,560,951

(34,627)

0

(18,946) (596) (125) (14,960) (34,627)

1,595,578

1,414,544 17,660 1,581 1,433,785

143,050 18,360 (368) 166 585 161,793

$ '000

2022/23

(1,575,612)

(1,471,900) (103,712)

1,575,612

(33,238)

0

(19,148) (596) 0 (13,494) (33,238)

1,608,850

1,428,783 17,660 2,550 1,448,993

143,613 15,857 (368) 170 585 159,857

$ '000

2023/24

(1,594,012)

(1,490,300) (103,712)

1,594,012

(32,050)

0

(18,657) (596) 0 (12,797) (32,050)

1,626,062

1,441,318 17,660 3,369 1,462,347

149,902 13,422 (368) 174 585 163,715

$ '000

2024/25

3,819

20,521

20,521

0

(29,038)

49,559

(119,871)

(22,988)

(46,323)

(50,560)

169,430

13,245

16,702

16,162

2,563

15,758

105,000

$ '000

ESTIMATE

2024/25

(1,614,533)

(1,510,821) (103,712)

1,614,533

(31,647)

0

(18,584) (596) 0 (12,467) (31,647)

1,646,180

1,452,511 17,660 4,038 1,474,209

159,156 12,420 (368) 178 585 171,971

$ '000

ESTIMATE

2,106

18,400

18,400

0

(27,546)

45,946

(119,916)

(22,827)

(45,191)

(51,898)

165,862

12,922

16,294

15,769

2,565

15,372

102,940

$ '000

ESTIMATE

2023/24

ESTIMATE

(1,232)

14,661

14,661

(2)

(25,692)

40,355

(120,950)

(20,144)

(44,079)

(54,727)

161,305

11,519

15,893

15,381

2,680

14,911

100,921

$ '000

ESTIMATE

2022/23

ESTIMATE

(4,347)

13,868

2,975

10,893

(25)

(24,894)

35,812

(123,178)

(22,703)

(42,996)

(57,479)

158,990

11,236

18,215

15,003

1,050

14,544

98,942

$ '000

BUDGET

2021/22

ESTIMATE

(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

2020/21

2020/21

(7,944)

2018/19

(3,270)

Result Net of Capital Grants – Surplus/(Deficit)

Model 3 Statement of Financial Position

113,652

80,618

551

32,483

(71)

(20,631)

(19,557) (74)

25,765

(120,256)

(21,935)

(39,591)

(58,730)

146,021

9,175

14,068

8,877

3,426

15,496

52,114

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)

Surplus/(Deficit) prior to Depreciation & Financing Costs Depreciation

(120,568)

(42,454) (21,606)

Materials and Contracts Other Expenses Total Operating Expenditure

(56,508)

Employee Costs

Operating Expenditure

172,682

36,304

Grants and Contributions - Capital Total Operating Revenue

11,153

Grants and Contributions - Operating

5,891

14,679

User Charges and Fees Interest and investment revenue

92,784

Rates and Annual Charges

94,979

$ '000

ACTUAL

Income Statement Operating Revenue

BUDGET

2018/19

Model 3 2019/20

(1,633,401)

(1,529,689) (103,712)

1,633,401

(31,681)

0

(18,356) (596) 0 (12,729) (31,681)

1,665,082

1,462,361 17,660 4,795 1,484,816

167,635 12,231 (368) 183 585 180,266

$ '000

ESTIMATE

2025/26

1,750

18,868

18,868

0

(30,543)

49,411

(123,762)

(24,661)

(47,477)

(51,624)

173,173

13,574

17,118

16,566

2,665

16,150

107,100

$ '000

ESTIMATE

2025/26

2026/27

967

18,496

18,496

0

(32,061)

50,557

(126,416)

(24,627)

(48,617)

(53,172)

176,973

13,899

17,529

16,963

2,804

16,537

109,241

$ '000

ESTIMATE

2026/27

(1,651,897)

(1,548,185) (103,712)

1,651,897

(31,887)

0

(18,180) (596) 0 (13,111) (31,887)

1,683,784

1,470,868 17,660 5,377 1,493,905

177,219 12,256 (368) 187 585 189,879

$ '000

ESTIMATE

Model 3 - No Special Rate Variation: Expenditure Savings through significant Service reductions from 2021/22 onwards

(1,671,518)

(1,567,806) (103,712)

1,671,518

(31,464)

0

(17,365) (596) 0 (13,503) (31,464)

1,702,982

1,479,624 17,660 6,021 1,503,305

187,005 12,264 (368) 191 585 199,677

$ '000

ESTIMATE

2027/28

1,689

19,621

19,621

0

(32,000)

51,621

(129,181)

(24,682)

(49,735)

(54,764)

180,802

14,218

17,932

17,354

2,957

16,915

111,426

$ '000

ESTIMATE

2027/28

(1,691,111)

(1,587,399) (103,712)

1,691,111

(31,148)

0

(16,643) (596) 0 (13,909) (31,148)

1,722,259

1,487,993 17,660 6,465 1,512,118

197,383 12,346 (368) 195 585 210,141

$ '000

ESTIMATE

2028/29

1,249

19,593

19,593

0

(32,587)

52,180

(132,537)

(25,250)

(50,879)

(56,408)

184,717

14,545

18,344

17,753

3,117

17,304

113,654

2028/29 ESTIMAT E $ '000

110 Georges River Council // Long Term Financial Plan 2021/22

111

0 7,372 (248) (57,357) (40,095) (24,141) (71) 0 0 5,987

238 11,736 248 (57,877) (42,989) (19,448) (74)

(48,972) (28,859)

(70,245) (24,355)

< 30

Debtor Days Outstanding - Other Debtors (net of Rates)

Cash Coverage Ratio

(Expressed as a % of Gross Cost of Assets) Repairs & Maintenance as a % of WDV of Assets

Remaining useful Life of Assets

(Measures Council's Cash coverage of Expenditure)

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

> 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%

(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

Benchmark

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

0.5%

67.6%

4.3

100.2%

100.1%

54.5

11.0

-2%

1.1

20.5

1.9

84.3%

-6.8%

BUDGET

0.6%

66.5%

3.4

96.3%

89.2%

58.0

50.0

5%

0.9

28.5

1.6

79.8%

-5.9%

BUDGET

2022/23

2023/24

2024/25

2025/26

2026/27

177,219

9,584 167,635

(41,750) (20,763)

600

2,858 17,529

(52,790) (48,449) (24,975) 0 0 0 30,347

13,964 0

0

109,177 16,495 16,925

$ '000

ESTIMATE

2026/27

2027/28

187,005

9,786 177,219

(41,980) (20,431)

600

3,017 17,932

(54,372) (50,252) (25,004) 0 0 0 30,217

14,295 0

0

111,360 16,873 17,317

$ '000

ESTIMATE

2027/28

2028/29

197,383

10,378 187,005

(42,000) (19,957)

600

3,099 18,344

(56,002) (51,423) (25,432) 0 0 0 30,335

14,628 0

0

113,587 17,262 17,715

2028/29 ESTIMAT E $ '000

0.6%

64.9%

3.9

101.8%

104.1%

54.0

35.0

-3%

0.8

33.5

1.7

79.1%

-5.2%

0.6%

64.5%

3.8

99.9%

102.6%

54.0

25.0

3%

0.8

192.6

1.7

80.6%

-0.8%

0.6%

63.6%

4.3

99.6%

102.6%

53.0

15.0

3%

0.7

No Debt

1.8

80.7%

1.4%

0.6%

62.7%

4.9

99.9%

101.0%

52.0

11.0

2%

0.7

No Debt

2.0

80.6%

2.5%

0.6%

61.7%

5.3

100.4%

99.9%

50.0

11.0

2%

0.7

No Debt

2.1

80.5%

1.1%

0.6%

60.6%

5.8

100.1%

99.9%

48.0

11.0

2%

0.6

No Debt

2.3

80.5%

0.6%

0.6%

59.7%

6.2

100.1%

99.9%

47.0

11.0

2%

0.7

No Debt

2.5

80.5%

1.0%

0.6%

58.7%

6.6

100.0%

99.9%

46.0

11.0

2%

0.6

No Debt

2.8

80.4%

0.8%

ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE

2025/26

167,635

8,479 159,156

(41,729) (21,292)

600

2,719 17,118

(51,362) (47,943) (24,449) 0 0 0 29,771

13,811 0

0

107,036 16,107 16,571

$ '000

ESTIMATE

2024/25

159,156

9,254 149,902

(41,500) (21,565)

600

2,633 16,702

(50,890) (46,141) (23,247) 0 0 0 30,819

13,148 0

0

106,066 15,716 16,167

$ '000

ESTIMATE

2023/24

149,902

6,289 143,613

(41,500) (21,942)

600

2,664 16,294

(52,595) (45,616) (22,897) 0 0 0 28,231

12,625 0

0

105,622 15,321 15,771

$ '000

ESTIMATE

2022/23

143,613

563 143,050

(125) (125)

(40,670) (21,870)

600

2,307 15,893

(56,193) (43,890) (22,965) (2) 0 0 22,558

11,857 0

0

103,497 14,871 15,383

$ '000

ESTIMATE

2021/22

143,050

12,360 130,690

(500) (500)

(32,120) (7,968)

4,575

1,362 18,215

(58,005) (42,811) (22,859) (25) 0 0 20,828

12,071 0

0

102,991 14,821 14,645

$ '000

BUDGET

2021/22

2020/21

130,690

(12,648) 143,338

(500) (500)

(40,529) (11,541)

5,000

2,622 21,366

(60,104) (42,030) (23,259) (55) 0 0 (607)

9,004 78

0

88,144 16,527 11,088

$ '000

BUDGET

2020/21

2019/20

143,338

(23,372) 166,710

2018/19

166,710

Cash and Cash Equivalents - End of the Year

Model 3

(15,326) 182,036

(500) (500)

1,763

3,443

(500) (500)

4,282 14,068

6,143 36,304

140 9,529

95,098 16,881 8,548

$ '000

$’000

92,586 13,325 11,644

BUDGET

2019/20

ACTUAL

2018/19

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

Statement of Cash Flows

Model 3

112 Georges River Council // Long Term Financial Plan 2021/22 %

Depreciation as a % of Gross Cost of Assets

$ '000

%

Employee Costs as a % of Total Expenditure

Capital Works Program

%

Interest Rate on investments

$ '000

%

Rates and Annual Charges as a % of Total Revenue

Interest payments on loans

%

Rate of Inflation

$ '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%

45.057

71

1,125

1.7%

41.7%

2.5%

65.0%

2.00%

2.7%

BUDGE T

ACTUA L

Assumptions Rate Pegging Limit

2019/20

2018/19

Model 3

38,370

55

625

1.8%

40.0%

1.5%

61.1%

2.02%

2.6%

BUDGE T

2020/21

27,623

22

125

1.9%

38.8%

1.3%

62.2%

2.27%

2.0%

ESTIMAT E

2021/22

35,000

2

0

1.9%

37.3%

1.5%

62.6%

2.52%

2.0%

ESTIMAT E

2022/23

35,000

0

0

1.9%

35.2%

1.5%

62.1%

2.52%

2.0%

ESTIMAT E

2023/24

35,000

0

0

2.0%

34.0%

1.5%

62.0%

35,000

0

0

2.0%

33.5%

1.5%

61.9%

35,000

0

0

2.1%

33.6%

1.5%

61.8%

2.40%

2.0%

2.0%

2.0%

2.49%

ESTIMAT E

ESTIMAT E

ESTIMAT E

2.50%

2026/27

2025/26

2024/25

2028/29 ESTIMAT E 2.0%

2.30% 61.6% 1.5% 34.2% 2.0% 0 0 35,000

2027/28 ESTIMAT E 2.0%

2.30% 61.7% 1.5% 34.0% 2.0% 0 0 35,000

ADMINISTRATION

Approved by Council Meeting **/**/2021 Council Resolution CCL***-21

Exhibition Period Public Exhibition -

Document Identifier D21/79394

VERSION CONTROL AND CHANGE HISTORY

Version Amendment Details Document Owner

1.0 2021/22 Resourcing Strategy Integrated Planning and Reporting Officer

Period Active

113

RESOURCING STRATEGY 2021/22 www.georgesriver.nsw.gov.au