City of Greater Bendigo Budget 2015/2016

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Workforce turnover No. of permanent staff resignations & terminations / average no. of permanent staff for the financial year 8.8% 8.8% 8.8% 8.8% 8.8% O Key to trend: + Forecasts improvement in Council’s financial performance/financial position indicator – Forecasts deterioration in Council’s financial performance/financial position indicator o Forecasts that Council’s financial performance/financial position indicator will be steady Notes to indicators 1. Underlying result - Improvement in financial performance expected over the period, through utilisation of Council's cash reserves and/or additional borrowings. 2. Current Assets/Current Liabilities – Working capital is forecast to gradually increase over the four year period to fund the Capital Works program. 3. Indebtedness/Rate revenue - Trend is reflective of Council's borrowing strategy and includes some new borrowings in the future, offset by continued repayment of borrowings. 4. Asset renewal/Total depreciation - This percentage indicates the extent of Council's renewals against its depreciation charge (an indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are being renewed and future capital expenditure will be required to renew assets. 5. Rate revenue/Underlying revenue - Reflects extent of reliance on rate revenues to fund all of Council's on-going services. Trend indicates Council’s reliance on rate revenue will remain at a similar level over the reported period. 8.4 Non-financial resources In addition to the financial resources to be consumed over the planning period, Council will also utilise non-financial resources, in particular human resources. The following table summarises the human resources for the next four years. Forecast Strategic Resource Plan Indicator Actual Budget Projections 2014/15 2015/16 2016/17 2017/18 2018/19 Employee costs – ($’000) -Operating 54,983 56,938 60,855 64,738 68,869 -Capital 2,235 2,149 4,963 5,319 5,700 Total 57,218 59,087 65,818 70,057 74,569 Employee Numbers (FTE) 675 661 669 678 687 48 Greater Bendigo City Council Budget – 2015/16
9. Rating Information This section contains information on Council’s past and foreshadowed rating levels along with Council's rating structure and the impact of changes in property valuations. 9.1 Strategy Context In developing the Council Plan and the Strategic Resource Plan (referred to in Section 8), rates and charges were identified as an important source of revenue, accounting for approximately half of the total revenue received by Council annually. A key component of the strategy is to ensure the surplus on operations, when added to depreciation, funds an acceptable level of capital works without the need for excessive borrowing. The Strategic Resource Plan assumes a rate increase of 4.75% in 2015/16, then an ongoing rate increase of 5.0% over the years 2016/17, 2017/18 and 2018/19 plus additional rate revenue from growth. This enables the City of Greater Bendigo to embark upon a significant level of new capital works each year and a manageable level of borrowings. Planning for future rate increases has therefore been an important component of the long term financial planning process. The City of Greater Bendigo also actively reviews fees and charges each year to minimise pressure on rates to ensure users are paying a reasonable price for services. The City of Greater Bendigo also pursues all available opportunities for grants and subsidies. In determining rate increases each year it is necessary to balance the importance of rate revenue as a funding source with community sensitivity to increases, including the impact of a biennial general revaluation, which alters property valuations and subsequently rates for some properties in the municipality. The latest revaluation of properties was first applied in the 2014/15 year. To ensure that deliberations about future rate increases have been made on an informed basis, comparisons of historical rate increases for the City of Greater Bendigo have been made. The following table shows the rate increases over four years and the average rate per capita. Year Rate Increase Average Rate Per Capita 2012/13 5.50% $730 2013/14 6.00% $778 2014/15 6.00% $825 2015/16 4.75% $848 Average 5.56% $795 9.2 Current Year Rates and Charges Increase It is predicted that the 2015/16 operating position will be impacted by growth in services, labour costs and general cost increases. The Minister for Local Government has advised of the State Government’s intention to introduce rate capping commencing in the 2016/17 year, the guidelines for which have not yet been released. It will therefore be necessary in the future to carefully monitor the revenue growth from rates and charges while containing costs in order to maintain capital expenditure at a reasonable level and a sound financial position. The contribution from working capital/operations towards capital investments for the 2015/16 year is adequate, with the balance of funds required coming from reserves and loan borrowings. Greater Bendigo City Council Budget - 2015/16 49
Page 1 and 2: City of Greater Bendigo Budget 2015
Page 3 and 4: TABLE OF CONTENTS Page Mayor’s In
Page 5 and 6: Mayor’s Introduction, Cr Peter Co
Page 7 and 8: 3. Cash and Investments 50.00 48.15
Page 9 and 10: 7. Strategic objectives 50.0 strate
Page 11 and 12: 1. Linkage to the Council Plan This
Page 13 and 14: 1.2 Vision and Values Council Visio
Page 15 and 16: 2. Services, Initiatives and Servic
Page 17 and 18: 4) Employ additional payroll staff
Page 19 and 20: 2.3 Theme 3 - Presentation and Vibr
Page 21 and 22: 18) Implement the Inclusion and Div
Page 23 and 24: Initiatives Services Group to assis
Page 25 and 26: 34) Develop an Environmental Sustai
Page 27 and 28: 3. Budget Influences This section s
Page 29 and 30: • The growing urban area means th
Page 31 and 32: To support requirements for new inf
Page 33 and 34: 100,000 Rates & Charges Income Comp
Page 35 and 36: Community Welfare 344 350 6 Materna
Page 37 and 38: Budgeted expense 2015/16 Borrowing
Page 39 and 40: 5. Analysis of Budgeted Cash Positi
Page 41 and 42: 5.1.4 Cash and Cash Equivalents at
Page 43 and 44: Budgeted Capital Works 2015/16 by A
Page 45 and 46: 6.2.1 Grants - Capital ($14.17 mill
Page 47 and 48: 7.1.1 Current Assets ($1.88 million
Page 49 and 50: 8. Strategic Resource Plan and Fina
Page 51: 8.3 Key Financial Indicators The fo
Page 55 and 56: The commercial/industrial propertie
Page 57 and 58: An additional recycle bin is availa
Page 59 and 60: • Infrastructure investment decis
Page 61 and 62: Appendices The following appendices
Page 63 and 64: APPENDIX A Comprehensive Income Sta
Page 65 and 66: APPENDIX A Statement of Changes in
Page 67 and 68: APPENDIX A Statement of Capital Wor
Page 69 and 70: APPENDIX B Appendix B - Rates and C
Page 71 and 72: APPENDIX B 1.3 The proposed percent
Page 73 and 74: APPENDIX B 1.9 The proposed unit am
Page 75 and 76: APPENDIX B 2. Rates 2.1 Rates to be
Page 77 and 78: APPENDIX B General Rate Land is any
Page 79 and 80: APPENDIX B The differential rate wi
Page 81 and 82: APPENDIX B a. Assist Council to mee
Page 83 and 84: APPENDIX C Appendix C - Capital and
Page 85 and 86: Capital Works Area Project Descript
Page 87 and 88: APPENDIX C Capital Works Area Proje
Page 95 and 96: APPENDIX D Appendix D - Maps D - 1:
Page 97 and 98: APPENDIX D D - 2 COMMERCIAL/INDUSTR
Page 99 and 100: APPENDIX E Non-Renewal Business Cas
Page 101 and 102: APPENDIX E Part C: Deliverability T
Page 103 and 104:
APPENDIX F City Futures Fees and Ch
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
APPENDIX F Community Wellbeing Fees
Page 111 and 112:
APPENDIX F Community Wellbeing Fees
Page 113 and 114:
APPENDIX F Planning & Development F
Page 115 and 116:
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Page 119 and 120:
Page 121 and 122:
APPENDIX F Presentation & Assets Fe
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
APPENDIX G Appendix G - Glossary of
Page 129 and 130:
APPENDIX G Term Local Government (P
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City of Greater Bendigo Budget 2015/2016

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