City of Greater Bendigo Annual Budget 2014/2015

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3. Budget Influences This section sets out the key budget influences arising from the internal and external environment within which the Council operates. 3.1 Snapshot of Greater Bendigo City Council Located within central Victoria, Greater Bendigo has a catchment of over 200,000 people and a forecast population of 111,110 (ABS, Estimated Resident Population) in 2014. The population is projected to increase to 145,608 by 2031. The area the municipality covers is approximately 2,999kms 2 . Greater Bendigo is the second largest city in regional Victoria. Its gross economic output is attributable to major industries and employment sectors including health and community services, retail, manufacturing, education, construction, property and business services, government administration, accommodation and hospitality, and banking and financial services. Bendigo has a proud gold mining heritage, with some of the finest examples of Victorian architecture and streetscapes in Australia. Bendigo is the home of Australia's longest running annual festival, the Bendigo Easter Festival. The City's cultural attractions include Bendigo Art Gallery, The Capital - Bendigo's Performing Arts Centre, Golden Dragon Museum, Central Deborah Mine, Bendigo Tramways and Bendigo Pottery. The municipality includes two National Parks - Greater Bendigo and Heathcote Greytown, both of which protect large areas of Box-Ironbark forest. 3.2 Challenges and Opportunities The Council Plan has been a significant influence in preparing the 2014/2015 budget. In that document the challenges and opportunities for Council are outlined in detail, and listed below: Regional Growth and Sustainability Financial Sustainability Increasing expectations of service availability Community engagement and consultation Adapting to changing weather patterns Performance reporting Population growth and change Access to communications technology Skills replacement, succession planning and knowledge retention Maintenance of essential infrastructure 3.3 External Influences In addition, external budget influences are: Constrained Federal and State Government fiscal environment Consumer Price Index (CPI) increases on goods and services of 2.7% through the year to December quarter 2013 Impact of State and Federal Government budgets 2014, and State Government election in 2014 The increasing regulatory environment which requires City of Greater Bendigo to meet legislation standards Managing the impact of being a growing city with associated community needs Opportunities/incentives provided through government grant programs to deliver further programs and projects such as Street lighting conversion project Potential future liability related to the Defined Benefit Superannuation Fund Increase in the Environmental Protection Authority levy to be applied to landfill operations Greater Bendigo City Council Budget – 2014/2015 22
3.4 Internal Influences There are a number of internal influences which have had a significant impact on the preparation of the 2014/2015 Budget being: Budget principles (refer section 3.6) The Independent Review of the City of Greater Bendigo (refer section 3.5) Prioritisation by Council of several large capital works projects that will require increased funding both through rate revenue and loan borrowings Additional pressures resulting from the growth in service requirements Investment in developing workforce capability The need to replace and upgrade ageing infrastructure Commitment to maintain service standards in a growing municipality Ongoing focus on greater efficiency 3.5 Independent Review There were a number of recommendations from the Independent Review conducted in 2013 which have been taken into account during the 2014/2015 budget process. Recommendation 3 - Create a standardised Matter for Decision template for investment and business case proposals (capital works, operational expenditure, service provision, upgrades/renewals, direct requests from Council and asset maintenance) to be applied across all Directorates. The Matter for Decision template must include: Information on the project, the need and purpose, and budget implications. The outcome for and benefit to the community. Clearly link the expense to the Asset Management Register (if appropriate). A clear link between the Council’s Vision, Strategy, Plan and the project. A monetary and risk threshold and decision making process to define the extent and depth of the business case and reporting required, and level of approval (similar to a procurement policy). To improve the information available for making funding decisions, two templates for business cases were used in developing the 2014/2015 budget being: New initiatives in the operating budget (listed in section 2). New funding in the operating budgets was allocated in response to operating budget business cases; and Capital Works projects. All Capital Work projects were required to be supported by a Business Case demonstrating the need for the project. Recommendation 4 – Create a formal asset management and infrastructure project ranking and evaluation framework. A Capital Evaluation Framework was developed to improve the transparency of allocation of funding to capital projects. A copy of the Framework is included at Appendix E. Recommendation 30 – Monitor working capital (liquidity) and the capital replacement financial ratios including any internal or external factors which will adversely affect these and, if necessary, take corrective action. A selection of financial indicators have been used to monitor the financial sustainability of decision making. The ratios related to the 2014/2015 budget are included at section 8.3. Greater Bendigo City Council Budget – 2014/2015 23
Page 1 and 2: City of Greater Bendigo Annual Budg
Page 3 and 4: ADDENDUM This addendum should be re
Page 5 and 6: Introduction from the Mayor, Cr Bar
Page 7 and 8: 3. Cash and Investments Cash and in
Page 9 and 10: 7. Council Expenditure Allocations
Page 11 and 12: 1. Linkage to the Council Plan This
Page 13 and 14: 1.3 Themes and Strategic Objectives
Page 15 and 16: People and Performance Contracts an
Page 17 and 18: Initiatives Initiatives 9) Employ S
Page 19 and 20: Presentation and Works Bendigo Live
Page 21 and 22: Roads Satisfaction Satisfaction wit
Page 23 and 24: 2.5 Theme 5 - Sustainability Sustai
Page 25: 2.6 Major Initiatives Major Initiat
Page 29 and 30: 4. Analysis of Operating Budget 4.1
Page 31 and 32: 4.2.4 Reimbursements ($.006 million
Page 33 and 34: 4.3.1 Employee Benefits ($5.36 mill
Page 35 and 36: 5.1.1 Operating Activities ($0.47 m
Page 37 and 38: 6. Analysis of Capital Budget This
Page 39 and 40: 6.1.6 Public Furniture and Fittings
Page 41 and 42: 7. Analysis of Budgeted Financial P
Page 43 and 44: 7.1.4 Working Capital ($0.69 millio
Page 45 and 46: Key to Forecast trend above: + Fore
Page 47 and 48: Expenditure level Revenue level Wor
Page 49 and 50: 9. Rating Information This section
Page 51 and 52: The commercial/industrial propertie
Page 53 and 54: The City of Greater Bendigo also ha
Page 55 and 56: In preparing the Capital Works prog
Page 57 and 58: APPENDIX A Appendix A - Budgeted St
Page 59 and 60: APPENDIX A Budgeted Balance Sheet -
Page 61 and 62: APPENDIX A Budgeted Capital Works S
Page 63 and 64: APPENDIX A Budgeted Statement of Hu
Page 65 and 66: APPENDIX B Rates and Charges 1. Rat
Page 67 and 68: APPENDIX B 1.5 The number of assess
Page 69 and 70: APPENDIX B 1.11 The estimated total
Page 71 and 72: APPENDIX B 2.4 General Rate Having
Page 73 and 74: APPENDIX B General Land; Commercial
Page 75 and 76: APPENDIX B The use of the land with
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APPENDIX C Capital Works Program Fo
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APPENDIX C Capital Works Area NEW W
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Capital Works Program (Detailed) Ca
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Capital Works Area Project Descript
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Capital Council Works Project Descr
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Capital Council Works Project Descr
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APPENDIX D D - 1 COMMERCIAL/INDUSTR
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APPENDIX E Appendix E - Capital Eva
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APPENDIX E For the 2014/2015 financ
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APPENDIX F Term Definition Financia
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APPENDIX F Term Definition needs of
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City of Greater Bendigo Annual Budget 2014/2015

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