Attachment 12 - Resourcing Strategy 2012-2013.pdf - IPART - NSW ...

2012/13
local government, together with the on-going impact of a variety of
costs shifted to or imposed upon local government and the steady
reduction in real terms of our Federal Assistance Grants received.
These trends will progressively exacerbate a pattern in which our
predictable operating revenues will not keep pace with the cost of
simply continuing to deliver the same services and facilities to our
community.
We will need to continue to work more efficiently, however, if
services are to be maintained at current levels for our existing and
growing community, then it is likely that we will see the progressive
reduction of our capital expenditure capacity over time. This will
lead to a declining ability to both renew existing assets and
infrastructure and provide new and enhanced facilities. Continuous
and careful management of both the revenue and expenditure sides
of the financial ‘equation’ will be necessary to maintain a long term
financially sustainable service and facility delivery pattern.
The key challenges in meeting the Council’s resource requirements
of the period to 2020 are summarised as follows:
• continuing to provide current services in an environment where
salaries/wages and cost indexation is greater than projected
rates revenue indexation
• addressing the current infrastructure backlog and fully funding
the planned/required renewal of existing infrastructure, together
with appropriate new infrastructure commitments
• ensuring that revenue increases created by the growth of the
city’s population and economy, are used to fund planned growth
in services and facilities to meet the needs of that growth
• delivering all of the above through best use of the available
financial capacity and within the key parameter of a sustainable
minor budget operating surplus each year.
In October 2010 Council considered a report together with
recommendations about the long term financial implications of
current infrastructure assets status and levels of renewal
investment, but did not resolve any specific strategic responses in
addition to the then current Resourcing Strategy principles.
In April 2011, as part of the preparation of the 2011/12 budget
Council decided to undertake an “Operational Review of Council”
with the objective of progressively identifying operational savings
building to $1 million per annum over four years to 2014/15. This is
reflected in the Long Term Financial Plan and will be implemented
through Resourcing Strategy and Delivery Program Activities.
1.4. Resourcing Strategy Sustainability Principles
The Resourcing Strategy is based on a commitment to sustainable
resourcing principles, focused on the following fundamental
‘building blocks’:
• activities delivered - through either Operational Programs or
Capital Works Programs, and
• activities attributable - to either continuity of current programs at
current levels of service, expansion of programs to meet City
growth needs at current levels of service, or new Programs
delivering increased levels of service compared to Current
Programs.
Shoalhaven City Council – Resourcing Strategy Page 7