2016/2017 Corporate Business Plan - Shire Of Mount Magnet

MURCHISON REGIONAL VERMIN COUNCIL
CORPORATE BUSINESS PLAN
2013/2014 - 2016/2017
ADOPTED BY COUNCIL 11 JUNE 2013

TABLE OF CONTENTS
CORPORATE BUSINESS PLAN ................................................................................ 3
INTRODUCTION ......................................................................................................... 4
SECTION 1 - ORGANISATIONAL STRUCTURE/WORKFORCE PLAN..................... 5
SECTION 2 - COUNCIL FINANCES ........................................................................... 6
1. FINANCIAL MANAGEMENT ............................................................................... 6
2. INVESTMENTS .................................................................................................. 6
3. LOANS ................................................................................................................ 6
4. REVENUE SUMMARY ....................................................................................... 7
5. OUTSTANDING DEBTORS ................................................................................ 7
6. PLANT CHARGES .............................................................................................. 7
7. DEPRECIATION/RESERVE FUNDS .................................................................. 7
8. FORWARD CAPITAL WORKS PROGRAM ........................................................ 8
SECTION 3 - FENCE INFRASTRUCTURE ................................................................ 9
1. CONDITION OF THE NO. 1 AND NO. 2 VERMIN FENCES .............................. 9
2. STAGE 1 - UPGRADE WORKS ......................................................................... 9
3. STAGE 2 – UPGRADE WORKS ......................................................................... 9

Corporate Business Plan
This Plan is prepared in accordance with the Integrated Planning and Reporting
requirements referred to in Sections 5.56 (1) and (2) of the Local Government Act and
detailed in the Local Government Administration Regulations Part 5. As detailed in the
Guidelines developed by the Department of Local Government the Corporate Plan is
intended to:
• Drive the development of the Annual Budget.
• Identify external trends and key issues that will impact on Council’s operations for the
ensuing financial year.
• Identify actions relating to services, assets and projects with a linkage to short, medium
and long term community aspirations as set out in Council’s Strategic Community Plan
and Forward Capital Works Plan.
• Identify performance measures by which the success of the Corporate Business Plan
can be measured and improvements implemented.

Introduction
The Murchison Regional Vermin Council (MRVC) is a statutory organisation which operates
under the provisions of the Local Government Act 1995. Member councils are the Shires of
Sandstone, Mount Magnet, Yalgoo, Cue and Meekatharra. Each member Council nominates
two delegates to serve on the MRVC and delegates elect from amongst themselves the
President.
The MRVC was established in 1963 for the purpose of rehabilitation and maintenance of the
No1 Vermin Fence and No 2 Vermin Fence. The No 1 Vermin Fence is 565 km in length
commencing at the 80 mile peg south near Lake Moore and ending at a location
approximately 20 km north of the Meekatharra/Wiluna Road. The No 2 Vermin fence
extends west from the No 1 Vermin Fence for a distance of 72 km terminating approximately
50 km south east of Meekatharra on the northern boundary of the property “Hillview”.
Both fences were established over one hundred years ago to prevent the movement of
rabbits from the east. Today control of rabbits is not the issue and the fence now plays a
critical role in preventing the movement of wild dogs from the east into the Mid
West/Murchison region where the grazing of small stock is the principal activity of many
pastoral enterprises. Both fences also play a role in preventing wild dogs moving into the
Agricultural regions of the Mid West.
Council delegates as at 30 June 2013 are:
President Murray McQuie Shire of Sandstone
Deputy President Harvey Nichols Shire of Meekatharra
Delegates Carol Hodshon Shire of Sandstone
Greg Scott Shire of Mount Magnet
Jason Homewood Shire of Mount Magnet
Terry Iturbide
Shire of Yalgoo
Laurence Hodder Shire of Yalgoo
Dustin Clinch
Shire of Cue
Martin King
Shire of Cue

Section 1 - Organisational Structure/Workforce Plan
The Murchison Regional Vermin Council does not employ staff. The Shire of Mount Magnet
Chief Executive Officer performs the duties of MRVC Chief Executive Officer and Shire office
staff provide administrative and financial services. The MRVC reimburses the Shire of Mount
Magnet for these services on the basis of $1,600 plus GST charge for each Ordinary
Meeting.

Section 2 - Council Finances
1. Financial Management
The MRVC’s financial management is governed by the Local Government Act 1995, the
Local Government Act Financial Regulations 1996 and other relevant Regulations.
MRVC auditors are Chartered Accountants Anderson, Munro and Wylie. Accounting firm
Midwest Financial provides Council with specialist financial advice and prepares financial
statements for the consideration of members at each Ordinary Meeting. Midwest Financial
also prepares Council’s Annual Budget, Forward Capital Works Program and other financial
documentation as required.
Council banks with the Commonwealth Bank of Australia.
The 2013/2014 Annual Budget is part of this Corporate Business Plan and is included as
Appendix 1. The 2013/2014 Annual Budget provides for a Comprehensive Income as at 30
June 2014 of ($86,076) which after adding back deprecation of $95,277 equates to surplus of
$9,201.
2. Investments
Council invests grant funding not required to meet immediate contractual obligations.
Legislation restricts whom Council can invest with to minimise risk to ratepayer funds.
Currently Council’s surplus funds are invested with the Commonwealth Bank in interest
bearing deposits. Returns on investments are expected to decrease over the next twelve
months as the impact of the second global economic crisis in Europe and America worsens.
Council’s estimated interest revenue in 2013/14 is $355.
All of this interest is applied to specific projects under various Government grant agreements.
3. Loans
Council has no outstanding loans.
There are no additional borrowings planned for 2012/2013.

4. Revenue Summary
Council’s major recurrent revenue sources (estimates only) are:
REVENUE SOURCE
2011/12 2012/13 2013/14 2014/15 2015/16
$ $ $ $ $
MBRA 28,000 28,000 28,840 29,705 30,596
Member Council Precepts
Yalgoo
Sandstone
Mount Magnet
Meekatharra
Cue
TOTAL
10,843
1,708
5,104
7,463
4,640
29,758
11,295
1,779
5,317
7,774
4,833
30,998
17,394
4,025
12,037
17,574
10,965
61,995
17,916
4,416
12,398
18,101
11,294
63,855
18,453
4,270
12,770
18,644
11,633
65,770
Fence Rentals 5,604 5,837 6,012 6,192 6,378
TOTAL 63,362 $64,835 96,847 99,753 102,745
The increase in precepts detailed above are estimates based on discussions with member
Council delegates and are subject to formal ratification by each Council. The precepts have
been adjusted to reflect the increase in Department of Environment and Planning properties
in Yalgoo, whilst still maintaining a doubling of precept revenues.
Details of fence rentals are included at the end of the annual budget document. Fence
rentals are charged on a per kilometre basis with a higher rate applying on the inside of the
fence.
5. Outstanding Debtors
The current level of outstanding fees and charges is listed below.
OUTSTANDING DEBTORS 2011/12 2012/13 2013/14 2014/15 2015/16
Fence Rentals $4,375 $5,387 $5,000
70 % of fence rentals outstanding are attributable to one pastoral property. Council’s legal
advisors, McLeods Barristers and Solicitors, initiated recovery action for this outstanding debt
in August 2012.
6. Plant Charges
Council does not own or operate any plant.
7. Depreciation/Reserve Funds
It is not a requirement under the Local Government Act and Accounting Regulations that
depreciation is funded. To date the MRVC has not established a reserve to at least partially
fund the depreciation of the fence. Notwithstanding this, in 2013/2014 and subsequent years
Council intends to put $10,000 pa into Fence Reserve to fund future fence repairs.
ESTIMATED DEPRECIATION
EXPENSE
2011/12 2012/13 2013/14 2014/15 2015/16
No 1 and No 2 Vermin Fences $71,000 $90,000 $95,277 $53,054 $53,054

8. Forward Capital Works Program
CAPITAL WORKS
PROGRAM
Fence Upgrade
and Replacement –
Funded under the
Royalties for
Regions Program –
CLGF Group
Projects 2012/2013
2010/11
$
2011/12
$
2012/13
$
2013/14
$
326,853 1,259,094 1,023,000
2014/15
$
2015/16
$
Note funding for 2013/2014 has been agreed to by councils. Ministerial approval anticipated
mid 2013.
9. Non Current Assets
Noncurrent assets in the form of fence infrastructure were valued at $1,655,594 at 30 June
2013.
This figure will increase as further Country Local Government Funding is invested in the
replacement of existing fencing with new.

Section 3 - Fence Infrastructure
As indicated above the MRVC’s principal responsibility is the rehabilitation and maintenance
of No 1 and No 2 Vermin Fences.
The No 1 Vermin Fence is approximately 565 km in length and the No 2 Vermin is
approximately 72 km in length. Both fences are in excess of 100 years old and in general
they have held up well for their age.
1. Condition of the No. 1 and No. 2 Vermin Fences
The MRVC was set up in 1963 amid fears that the fences were not being sustainably
maintained. In recent years available funding of some $35,000 to $40,000 pa has been paid
to various contractors for maintenance work. Over these years it has been apparent that this
level of funding is insufficient to adequately maintain both fences and as a result it was
decided to cease maintaining the No 2 Fence and concentrate on the No 1 Fence.
Notwithstanding this decision there has been a gradual deterioration in condition of the No 1
Vermin Fence until early 2012 when funding under the Country Local Government Fund
Program became available for fence upgrade works.
2. Stage 1 - Upgrade Works
In 2011 the Shires of Wiluna, Sandstone, Mount Magnet, Yalgoo, Cue and Meekatharra
agreed to the allocation of $1.557 Million funded under the Royalties for Regions Country
Local Government Fund Group Project Program for upgrade works on the No 1 and No 2
Vermin Fences.
As a result of the availability of this funding it has been possible to clear and grade both sides
of the two fences and also replace some 165 km of fencing. Fence replacement costs have
varied depending upon location however at an overall average of $9,100 per kilometer
(including clearing and grading the full length) the MRVC fence design and project
management approach has achieved very cost effective results.
The replacement of nearly 25 % of total length of the No 1 and No 2 Vermin Fences has
significantly improved the capacity of the MRVC to manage and maintain both fences on a
sustainable basis. It is estimated that some 60 contractor days per annum at a cost of
$63,000 are required to inspect and maintain the both fences. To achieve funding of this
magnitude discussions have been held with member councils regarding the doubling of
Council Precepts which would result in sufficient funds being available to achieve the 60
contractor days target and also provide a $10,000pa amount to go into reserve to repair flood
damage and the like. See Section 1 Item 5 for details of proposed individual council precept
payments.
3. Stage 2 – Upgrade Works
Following on from the agreement in 2011 by Councils to allocate $1.557 Million in Country
Local Government (CLGF) Group Funding to the No1 and No2 Vermin Fences a similar
arrangement is in place with respect to 2012/2013 CLGF Group Funding. At a meeting in
August 2012 the Shires of Wiluna, Sandstone, Mount Magnet, Yalgoo and Cue agreed to
support the allocation of $1.023 Million in CLGF Group Funding available under Royalties for
Regions in 2012/2013.
These funds are intended to enable the construction of an additional 100 km of new fencing
extending on from the western end of the No 2 Vermin Fence. The new fencing will be
located in a Reserve, vested in the MRVC, established many years ago for this purpose.

Once the extension of the No 2 Vermin Fence is completed it is expected to join up with a
further 380 km of new vermin fencing which is proposed to link up with the State Barrier
Fence thus creating the Murchison Region Vermin Exclusion Cell. The following plan shows
the layout of proposed fencing works.
Existing No 2
Vermin Fence
(72km)
100km CLGF application (between
these two points)
The 380 kilometres to
complete the cell is between
these two points (MWDC )
application
No 1 Vermin Fence
(existing)
State Barrier Fence
(existing)
The additional 380km of fencing required to complete the Cell is expected to be funded
under the Mid West Development Commission Investment Plan.