2017-2018 annual business plan - teatreegully.sa.gov.au · 20172018 nnual business plan 1 this...

ANNUAL BUSINESSPLAN

2017-2018

CONTENTS

Introduction .......................................................................................................... 1

Key financial statistics 2011–2017 .................................................................... 4

Budget snapshot and key statistics .................................................................. 5

Key achievements delivered in 2016–2017 ..................................................... 7

Significant influences and priorities ...............................................................17

Continuing services............................................................................................19

Project priorities for the year ...........................................................................25

Measuring performance – objectives for the year .......................................33

Funding the Annual Business Plan .................................................................57

What this Annual Business Plan and budget means for rates ...................71

2017–2018 Annual Business Plan

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This Annual Business Plan for

2017–2018 demonstrates our

long-term commitment to ensuring

a sustainable financial future

for our City.

INTRODUCTION This year 2017–2018 promises the start of an exciting era for our City as we continue the implementation phase for a number of key initiatives.

The Modbury Precinct Revitalisation Project is creating dynamic business and population growth for the local community, with flow-on effects apparent throughout our City.

We will upgrade our main roads, gateways and public spaces in Modbury, including Reservoir Road. This spend compliments the significant investment by developers and the State Government and will continue to encourage economic development, growth and jobs in our regional precinct.

Council continues to review its services to ensure that we provide services that meet our community’s needs. In the financial year ending (FYE) 2018 we will continue to allocate funding in the areas of city beautification and park upgrades in response to feedback from our community.

Our City’s Civic Park current upgrade will be finalised with further works to the amenities, including lighting upgrades.

Promoting the wellbeing of our residents is vital, so this plan also outlines a number of programs that Council funds for the elderly, people with disabilities, families and young people, as well as sports and recreation programs for all age groups.

Our footpath program, which commenced in 2017 to meet the needs of our community and to facilitate mobility around the city will be continuing. In 2017 we completed 12 kms of the 36 kms co-funded by the State Government. In 2017-2018, approximately 18 kms will be completed.

In addition, we continue to fund many other core services such as street lighting on all of your roads, fire prevention, dog management, library, immunisation, maintaining Council-owned assets as well as health and planning services.

With a proposed $90 million operating budget for 2017–2018, we plan to spend a combined $21 million on maintaining roads, buildings, stormwater systems, footpaths and providing waste collection. The remaining $69 million will be invested in other important services and programs for the benefit of our 99,000 residents. This includes funding for roads, new footpaths, city beautification and community amenities. Council’s capital program for this year is


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$24.557 million, which is partially funded through grants and other contributions.

This year we propose a 2.7% general rate increase apart from any increases due to growth. This will mean a 3.2% rate revenue. What this means for you, the residential rate payer, is:

Approximate annual increase in rates*

Property value Per year Per week$250,000 $30 $.058$350,000 $60 $1.15$450,000 $70 $1.35* Subject to change

Council has been able to achieve a modest general rate increase despite increases in the costs of service delivery, reductions in government grant income for some services and the employee enterprise bargaining agreement.

Council will continue to cover the cost of delivering key community services and programs as well as ongoing infrastructure maintenance, despite our significant increases, including:• $600,000 increase in electricity costs, including

street lighting, which equates to almost a 1% increase in rates

• $600,000 increase in the solid waste levy, which enables us to provide waste management services to our community. This also equates to almost a 1% increase in rates

• The costs of service delivery• Reductions in government grant income.

The economic climate and community feedback directs our plan and we will maintain our focus on sustainability, moderate surpluses for future debt reduction, continuous improvement and financial consolidation.

We will also continue to achieve cost savings and efficiencies by reducing expenditure, reviewing assets and services and achieving significant procurement savings.

In 2018 we will continue with the refurbishment of our new service centre to ensure we remain operationally effective, safe and compliant. This will require an initial investment of $4 million in 2017–2018 and a further investment in future years.

Council is conscious of its debt level and has forecast to maintain the debt level within the targeted range of 25–35% of its revenue over the life of the Long Term Financial Plan (LTFP).

In 2017–2018 Council’s debt will be 32%. This is substantially lower than the high of 61% in 2012. Our surplus of $5.689 million will allow for the renewal of Council’s infrastructure with additional new works of the footpath program and the service centre in FYE 2018 and for the debt levels to be reduced once the one off investment in the depot is completed.

On the following pages we detail more information about our projects and initiatives, along with key financial statistics. We acknowledge the contributions of our Elected Members, staff and community in delivering this plan to further enhance and strengthen our local community.


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KEY FINANCIAL STATISTICS 2011–2018

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BUDGET SNAPSHOT

Operating budget Revenue sources Key areas of expenditure

Total operating revenues

$90M84% rates

$76MTotal operating expenditure

$84M7% fees and charges

$6MOperating surplus before capital amounts

$6M9% other

$8M

Waste management

$8MBuildings, roads, footpaths and stormwater

$21MParks and gardens

$10M

Library and community services

$6M

Recreation and leisure

$4M

Capital works

$25M

KEY STATISTICSCurrent population

99,118

Number of dwellings

38,887

Median age

40

Total land area

9,521 ha

Sealed roads

590 km

Kerbs and gutters

1,436 km

606 reserves – total approx.

1,305 ha

Sealed footpaths

523 km

Unsealed footpaths

92 km

Number of overseas born residents (23.9%)

22,835% undertaking voluntary work

17.4%% with tertiary qualifications

44.8%


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KEY ACHIEVEMENTS DELIVERED IN 2016–2017

Council’s strategic directions for 2016–2017 financial yearThe new strategic plan was developed with community and stakeholder input and is available on Council’s website.

In addition to community well-being, Council has implemented a guiding document for the organisation – Organisation Plan 2020 – which aims to guide the organisation towards achieving key organisational outcomes under the following five themes:

• People and Leadership• Customer and Community

Relations• Governance• Finance and Systems• Continuous Improvement.

The chart below includes three columns that represent the three themes of the strategic plan. The additional column on the right gives an overall score. The three columns show the Strategic Plan KPIs and how they are tracking against their required delivery time frames.

One KPI in the Healthy and Safe theme, KPI SP1.3.3l “Provide systems that allow for businesses to lodge and receive health reporting from Council in an electronic format” was running behind target at the time of compiling this report due to IT technical issues. These issues have since been resolved and this project has now been completed.

Council has a new Strategic Plan 2020 as our previous Strategic Plan 2011–2015 expired at the end of the 2015–2016 financial year. The new strategic plan forms part of Council’s suite of strategic management plans that are used to guide our decision making, annual business planning and budgeting. This suite of strategic management plans includes:• Strategic Plan 2020• Asset Management Plans• Long-Term Financial Plan• Annual Business Plan (this

document)• Annual Report.

Our strategic plan is focused on promoting the wellbeing of our community; that is, to ensure we have a healthy community that enjoys a quality lifestyle.

Extensive research into individual and community wellbeing tells us that there are a number of factors that contribute wellbeing. These factors underpin the aspirations and objectives included in our strategic plan and they fall under three key themes as follows:• Healthy and Safe• Prosperous and Connected• Vibrant and Liveable.

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The following table illustrates our key strategic objectives relevant to the quarter two review and shows the progress on key programs since the Strategic Plan 2020 was adopted.

Healthy and Safe – People in our community are healthy and safe.

Strategic objective Action Business unit StatusSP 1.1.1 A community where people are safe in our public places and spaces

SP 1.1.1a Select, design and construct Disability Discrimination Act accessible bus stops and shelters in accordance with legislative requirements and standards

Civil and Water Operations

On track

SP 1.1.1e Maintain the existing road network through inspections, maintenance, reconstructions and resealing in accordance with the Asset Management Plan


On track

SP 1.1.1g Maintain all buildings in accordance with the Building Asset Management Plan

Building Assets and Environment

On track

SP 1.1.2 A community where people are safe during emergencies, natural disasters and during extreme climatic events, such as storms or heat waves

SP 1.1.2b Bushfire mitigation activities are tracked and measured and align with relevant regional and state strategies

Strategic Assets On track

SP 1.1.2c Maintain fire tracks in a safe and fit for purpose condition


On track

SP 1.1.2d Protect streets and properties from flooding by operating and maintaining the stormwater network in accordance with the Stormwater Asset Management Plan


On track

SP 1.1.3 A community where people have easy access to places, spaces and services that support good health

SP 1.1.3a, CEO KPI Implement a playground capital works program, including regular inspections, ensuring works carried out align with Council’s adopted budget

Civil Assets On track

SP 1.1.3e Maintenance and management of existing turf quality


On track

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Strategic objective Action Business unit StatusSP 1.1.3k Strategically partner and collaborate with external service providers, government, not-for-profits, service clubs, etc. to provide access to services and programs that promote community wellbeing

Community Development and Engagement

On track

SP 1.1.3l Develop systems that allow for businesses to lodge and receive health reporting from Council in an electronic format

Community Safety

Completed

SP 1.1.3m Minimise public health impacts by maintaining and operating the Community Wastewater Management System network


On track

Prosperous and Connected – Our local economy prospers and people have a sense of purpose and belonging.

Strategic objective Action Business unit StatusSP 2.1.2 A community that participates in meaningful community and economic activities

SP 2.1.2d Provide a range of free and low cost programs and activities to enable the community to gain new life skills and/or participate in volunteering


On track

SP 2.1.2e Partner with the state government through the Active Ageing program to deliver the funding objectives for eligible residents


On track

SP 2.1.2f Review all community centre programs and activities


On track

SP 2.1.3 A community with a resilient local economy

SP 2.1.3d Advocate for and facilitate for the establishment of small business within the City by meeting with small business owners or their representatives

City Strategy On track

SP 2.1.4 A community where people have the resources and capacity to achieve goals

SP 2.1.4a Provide a range of digital literacy programs to the community

Library Services, Arts and Culture

On track


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Vibrant and Liveable – Our City is a desirable and sustainable place to live.

Strategic objective Action Business unit StatusSP 3.1.1 A City that is made up of places and spaces that are appealing and easy to access

SP 3.1.1a, CEO KPI Maintain the existing footpath network, construct new footpaths and renew bike paths throughout the City in line with the Footpath Construction Strategy and Local Area Bicycle Plan


SP 3.1.1b Implement the Modbury Precinct Activation Plan


SP 3.1.1c Maintain verges in accordance with the works program to agreed service levels

Parks On track

SP 3.1.3 A sustainable city that has a healthy natural environment and is resilient to climate change

SP 3.1.3f Implement the City of Tea Tree Gully Climate Change Action Plan, Turramurra Recreation Centre energy efficiency project and Civic Centre office lights project


On track

SP 3.1.3g Provide a free Enviro Care service in order to encourage the recycling of green waste

Parks On track

SP 3.1.3i Maintain tree assets within the City in accordance with the Tree Management Policy

Parks On track

SP 3.1.3j Horticultural maintenance of reserves and streetscapes across the City

Parks On track

SP 3.1.3K Provide a cleaner stormwater catchment by maintaining street cleanliness via our street sweeping program


On track

SP 3.1.3l Promote environment-related events and programs to the community


On track

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Strategic objective Action Business unit StatusSP 3.1.4 A place that expresses a unique character and identity, an area that inspires pride in its residents and one that people enjoy visiting

SP 3.1.4a Revitalisation of precincts in the City with a focus on Modbury Precinct, Tea Tree Gully Township and continue to progress the Modbury Heights Precinct project


SP 3.1.4c Provide new and renew existing landscape treatments via the City Beautification program


SP 3.1.4d Remove graffiti from public infrastructure and maintain City entry statements


On Track

SP 3.1.4e Remove illegally dumped rubbish throughout the City

Parks On track

SP 3.1.4f Install and renew fencing and park furniture in accordance with the Capital Works program


SP 3.1.4g Supply and install corporate branding style signage throughout the City


On track

The adjacent chart includes five columns that represent the five themes of the Organisation Plan. The additional column on the right gives an overall score. The five columns show the relevant quarter two Organisation Plan KPIs and how they were tracking against their required delivery time frames. All five themes were tracking at 100% on target to be delivered.


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People and Leadership – Our people are engaged and make a meaningful contribution to organisational success.

Strategic objective Action Business unit StatusOP 1.4.1 We foster a safety culture where we place safety and wellbeing first in everything we do

OP 1.4.1b Finalise and implement a Safety First Strategic Plan which incorporates the results of work health and safety audits.

Organisational Development

On track

OP 1.5.1 We take responsibility for giving and receiving information and sharing knowledge with others

OP 1.5.1a Evaluate and implement the agreed recommendations regarding communication channels from the Unearthed round four project

Organisational Development

On track

Customer and Community Relations – We manage our customer relationships and analyse their requirements in order to deliver increasing value.

Strategic objective Action Business unit StatusOP 2.1.1 We build customer needs into design and delivery of services

OP 2.1.1b Digital road map developed with services prioritised and top five services transferred online

Customer and Communications

On track

OP 2.1.1c Online payment systems for recreation and leisure programs are introduced to improve the customer booking experience

Recreation and Leisure Services

On track

OP 2.1.1d Develop a volunteer e-newsletter, MyVolunteer portal, Flickr account to share information on volunteering in CTTG


On track

OP 2.1.1e Commence implementation of Council’s preferred works depot facility solution


OP 2.1.1f Procurement of plant, fleet and equipment


On track

OP 2.1.1g Review recreation and wellbeing programs and services provided to the community and execute planning activities in accordance with policy, procedure or other agreement

Recreation and Leisure Services

On track


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Strategic objective Action Business unit StatusOP 2.1.2 We ensure all contact has a customer focus

OP 2.1.2a Purchase and implement online payment systems for development applications

City Development

On track

OP 2.1.2b Carry out communications and information preference survey to inform improvements to customer contact and communications channels


On track

OP 2.3.1 We provide information that is relevant, current and meaningful, through accessible channels

OP 2.3.1a Provide staff and Elected Members with relevant data to assist with decision making, including external trends


OP 2.3.1b Develop and implement an action plan to enhance the use of the Customer Request Management system (CRM) as a tool to lodge, track and manage customer requests


On track

Governance – We define the roles, powers and responsibilities within the organisation.

Strategic objective Action Business unit StatusOP 3.1.1 Our people are empowered to make decisions

OP 3.1.1a Maintain and improve the Asset Management Information System, including measurement, monitoring and reporting


OP 3.1.2 The decision-making process is transparent and based on evidence

OP 3.1.2a Regular reporting occurs on status/outcomes of Council and committee decisions

Governance and Policy

On track

OP 3.2.1 We understand that risks exist and manage them for positive outcomes

OP 3.2.1a Deliver the Internal Audit Plan and monitor outstanding high/extreme risks from internal audits


On track

OP 3.2.1c Department risk registers to be reviewed every two years, with periodic monitoring and reporting on high and extreme corporate risks


On track


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Strategic objective Action Business unit StatusOP 3.2.1d Volunteer activities are risk-assessed


On track

OP 3.2.1e Review and implement our Business Continuity Plan to ensure key services are delivered to the community in the event of an emergency


On track

OP 3.3.1 Our systems and processes are easy to follow and help our people with the decision making process

OP 3.3.1b Develop report writing guidelines and run associated training sessions


On track

OP 3.4.1 We work proactively to meet our legislative and governance obligations

OP 3.4.1 Produce and distribute Council and committee agendas, reports and minutes in accordance with legislative time frames


On track

OP 3.4.1d Monitor, review and report periodically on confidential Council, committee meeting items


On track

Finance and Systems – We use systems and data to show how well we are performing and as a basis for ongoing reviews and improvements.

Strategic objective Action Business unit StatusOP 4.1.1 We meet our financial commitments to the community and organisation

OP 4.1.1a Identify and apply for grants and sponsorship initiatives for the City


OP 4.2.2 We collect and analyse useful data in order to aid in decision making

OP 4.2.2a Measure and report on the organisation’s performance in delivering our key strategic objectives and actions



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Continuous Improvement – We encourage innovation and improvement to ensure we continue to deliver value.

Strategic objective Action Business unit StatusOP 5.1.1 We look for new and better ways to improve our processes

OP 5.1.1a Establish a framework within the Continuous Improvement program that allows contribution from all staff and stakeholders

Continuous Improvement

On track

OP 5.2.1 We work with and learn from others in order to improve the way we work

OP 5.2.1a Collaborate with other organisations and establish common data that will identify areas of improvement


OP 5.2.2 Improvements are focused on customer benefit

OP 5.2.2a CEO KPI Complete eight service-level reviews per annum


On track

OP 5.2.3 We maximise benefits to staff and workplace efficiencies by using creative solutions

OP 5.2.3a Offer education sessions across the organisation that promote the benefits of continuous improvement


On track


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SIGNIFICANT INFLUENCES AND PRIORITIES

In preparing this Annual Business Plan (ABP) 2017–2018, we have taken into account a range of significant factors. These include:• Significant increases in the state government’s

solid waste levy, just under 1% of the rates increase

• Major impact of rising energy costs for street lighting and community buildings, just under a further 1% of the rates increase

• The Adelaide consumer price index (CPI) of 1.3% (as at December 2016) on goods and services for the previous year, and forecast CPI increases of 2% to 3% over the next 12 months

• Enterprise bargaining agreements that provide for wage and salary increases

• Our service standards policy for providing, maintaining and renewing infrastructure assets, including roads, footpaths, lighting, stormwater drainage, street trees and planting, open space and council properties

• Evolving needs for services and infrastructure to serve our residents

• Possible reduction or removal of state or federal grant funding for services that we propose to continue providing

• New or increased fees and charges imposed by other levels of government.

Over the past five years our Council has proudly worked to reduce the overall cost of service delivery to you and has worked to build a financially sustainable future for our Council.

In direct response to community feedback we have reined in spending and cut staffing numbers.

Through these core savings Council has been able to achieve the target of maintaining debt and ensuring funds are available for new works.

We are committed to ongoing reviews of our assets in order to provide optimum benefit to our community and also to ensure that we deliver quality services in the most cost-effective manner.

We are continuing to reduce costs through the following strategies by:• Continuous review, prioritisation and validation

of current services• Reviewing staffing levels• Making procurement savings.

You can find full details about our project priorities for 2017–2018 on page 25 and the following pages.


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CONTINUING SERVICES

All councils in South Australia have core (mandatory) responsibilities defined under the Local Government Act 1999 and other relevant legislation. These include:

• Regulatory activities, including development planning and control, fire safety and structural integrity assessments of buildings

• Setting rates, preparing an annual budget, an annual business plan and developing longer-term strategic management plans

• Management of infrastructure and other assets,

including roads, footpaths, parks, public open space, street lighting and stormwater drainage

• Street cleaning and waste collection

• Environmental health services, including food and public health inspections, immunisation, animal and pest control.

The following table provides more detail about our services, including some additional services delivered in response to recognised community needs.

Services that we provideService area Service Examples/details

Our City Economic development Support existing businesses and business sectors; encourage and facilitate new opportunities such as the high-speed broadband network

Social planning Disability access and associated strategies in line with the Disability Discrimination Act 1992 (DDA); Ageing Strategy; Community Transport and Accessibility Strategy; provision of demographic and statistical information

Strategic planning Master planning; precinct planning; heritage advice

Our Community Citizenship ceremonies Regular citizenship ceremonies for approved candidates

Cultural development Reconciliation activities; performing arts; events; placemaking


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Service area Service Examples/detailsActive Ageing Services Respite and Carer Support Program;

Social Support Group and Individual Programs; Domestic Assistance; Home Modifications and Maintenance; Multicultural Programs; Aboriginal Elders Program; Community Transport

Immunisation Scheduled children’s and high school vaccinations

Awards, sponsorships and grants Community Grants Program; Australia Day Awards; Youth Sports & Cultural Sponsorship Program; Events Sponsorship Program

Youth participation planning and programs

Provision of projects and services for young people through youth development programs

Community and neighbourhood development/planning

Jubilee, Holden Hill, Surrey Downs and Greenwith community centres; community programs and activities crime prevention programs; community transport service; Volunteers Program

Community education Road and Cycle Safety Centre; dog obedience training; outdoor environmental classroom; digital literacy training

Our Council Community engagement A continuous initiative allowing residents and other stakeholders the opportunity to have a greater say in what happens in the City and to be more active in the decision-making process

Rates Setting and collection of rates; preparation of annual budgets and Long Term Financial Plan

Governance Policy development and review; Council meetings and committees, agendas, minutes, reports

Justice of the Peace Service coordinated by Council and voluntarily operated by appointed Justices of the Peace

Our Essentials By-laws, permits and access control Permits to light fires and gain access to Council reserves; enforcement of by-laws

Animal and pest control Control of rodents and European wasps; dead animal collection from public spaces


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Service area Service Examples/detailsControl of flammable growth and fire prevention

Advice to residents on fire risk management; oversee implementation of works program

Parking control Enforcement of state government parking laws and private parking agreements; school patrols

Dog control and management Dog registration; capture and management of stray dogs; investigation and management of dog attacks

Environmental health Food safety and public health inspections, including beauty and personal grooming premises; public swimming pool and spa facilities; aged care facilities, child care centres, restaurants and cafes

Effluent and stormwater drainage maintenance

Community Wastewater Management System (CWMS), water capture, treatment and reuse

Waste management and recycling Domestic kerbside collection; hard rubbish collection; Envirocare Sunday and kerbside organics collection; mobile phone recycling; litter control; maintenance and emptying of public bins

Development assessment and compliance services

Provision of planning, building and compliance-related services. These include the administration of the Development Act 1993 and Development Regulations 2008, the Development Plan, Building Code and other relevant standards

Infrastructure, roads, footpaths and shared use paths

Maintenance of bus shelters; construction and maintenance of footpaths on local streets; construction and maintenance of shared use paths; construction and maintenance of local roads; public conveniences; street sweeping and litter bins

Cemeteries Management of leasing and licensing of burial sites and memorials through third party contractor; maintenance of cemetery grounds at Hope Valley and Golden Grove

Traffic management and street signage Installation of traffic control devices, road names and traffic control signage


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Service area Service Examples/detailsCommunity halls and buildings Management of community buildings

and facilities, including construction, maintenance, leasing and hiring; graffiti removal

Open space development and maintenance

Planning, planting and maintenance of reserves, ovals, gardens, verges and streetscapes; street tree planting and maintenance; weed control

Lighting Upgrading existing lighting and installing new lighting for car parks, reserves, sports fields and courts

Our Leisure and Play Library Lending of reading and audiovisual material; internet training; local history services; children and youth programs; online resources; computing, printing and WiFi facilities

Community events and celebrations Civic Park Movies; Civic Park Carols; Civic Park Ausday; ANZAC Day; activation events

Recreational centres, sports facilities and programs

Waterworld Aquatic Centre; Burragah, Turramurra and Golden Grove Recreation Centres; sports grounds; tennis and netball courts

Arts centres, exhibition spaces and cafes

Golden Grove Arts Centre; library foyer exhibition space; Gallery 1855

Cycling and walking trails, dog parks, BMX tracks, playgrounds

Golden Fields Reserve, Bentley Dog Park, Tails Trails Dog Park; shared use paths; over 120 playgrounds

Fees apply for some services. Please refer to our fees and charges register available on our website at www.cttg.sa.gov.au for more details.


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PROJECT PRIORITIES FOR THE YEAR

Capital works – programs and projectsNote: The figures in the following table represent Council’s contribution to these projects (net of grants, third party contributions and asset trade-ins).

Project/program $ Net cost $Road reconstruction 1,830,000• Newcombe Drive, Gilles Plains 77,000• Ballard Close, Greenwith 50,000• Dalymple Way, Greenwith 93,000• Welloch Street, Modbury 538,000• Melrose Street, Modbury Heights 340,000• Pineridge Court, Golden Grove 70,000• Elmwood Rise, Golden Grove 305,000• TBA (subject to Council resolution) 357,000Resealing/road kerbing 1,021,000• Scot Road, Dernancourt 22,000• Waninga Drive, Holden Hill 44,000• Morgala Drive, Holden Hill 41,000• Karina Crescent, Holden Hill 27,000• Karina Court, Holden Hill 3,000• Elliot Avenue, Holden Hill 37,000• Malcolm Avenue, Holden Hill 33,000• Graham Avenue, Holden Hill 32,000• The Parade, Holden Hill 66,000• Southern Terrace, Holden Hill 68,000• Brabham Avenue, Holden Hill 50,000• Cortina Avenue, Holden Hill 50,000• Alvis Crescent, Holden Hill 18,000• The Parkway, Holden Hill 24,000• The Driveway, Holden Hill 70,000• Dawe Street, Holden Hill 11,000• Mercedes Drive, Holden Hill 93,000


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Project/program $ Net cost $• Bentley Drive, Holden Hill 13,000• Riley Street, Holden Hill 24,000• Humber Street, Holden Hill 28,000• Falcon Street, Holden Hill 11,000• Declivity Street, Highbury 86,000• Monticle Street, Highbury 45,000• Cooke Street, Modbury 36,000• Pierre Road, Modbury 28,000• Princess Drive, Modbury 38,000• Duchess Street, Modbury 23,000Re-sheeting unsealed roads 80,000• Hannaford Hump Road, Golden Grove (One Tree Hill Road to airstrip) 60,000• Melville Road, Gould Creek (near One Tree Hill, 1 kilometre) 20,000Roads to Recovery 800,000• Kelly Road, Modbury 800,000Traffic management 350,000• Replacement of advisory and regulatory signage 250,000• New advisory and regulatory signage 100,000Capital building renewals 895,000• Operational buildings – IAMP asset renewal – Civic Centre airconditioning

stage 2 470,000

• Operational buildings – Civic Centre Library – public toilets upgrade 150,000• Operational buildings – Civic Centre lift upgrade 50,000• Recreational buildings – IAMP asset renewals – Golden Grove Recreation

Centre – air conditioning replacement to stadiums 250,000

• Recreational buildings – IAMP asset renewals – Golden Grove Recreation Centre – air conditioning replacement to stadiums (subject to school funding)

(125,000)

• Community buildings – Hope Valley Institute – heritage restoration works 50,000• Waterworld – Poolside refurbishment 50,000

Capital buildings new/upgrades 994,000• Recreational buildings – DDA Action Plan building upgrades – various

locations including Golden Grove Recreation Centre reception counter – Golden Grove

50,000

• Recreational buildings – Waterworld – chemical storage shed – Ridgehaven 60,000• Sporting buildings – Modbury Bowling Club synthetic greens and shade

cover project – Council contribution – Ridgehaven 500,000

• Community buildings – WHS roof safety improvement, stage 3 50,000• Sporting buildings* – Modbury Vista Soccer Club, stage 1 – Wynn Vale 334,000


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Project/program $ Net cost $Environmental projects 140,000• Waterworld, Ridgehaven – variable speed drive 120,000• Community centres LED upgrades – Surrey Downs, Wynn Vale, Holden Hill 20,000Tennis courts 120,000• Tongariro Street tennis courts upgrade (Bernacchi Reserve, Greenwith) 120,000Fencing and park furniture 207,000• Haines Road, Banksia Park 15,000• Pistachio Way, Golden Grove 3,000• Hazelnut Court, Golden Grove 3,000• Johneff Court, St Agnes 3,000• Smart Road, Modbury 1,000• Hancock Road, St Agnes (2 sites) 9,000• Avago Street, St Agnes 3,000• Atlantis Drive, Golden Grove 10,000• Shared fencing – 50% shared with ratepayer on application 70,000• Replacement of picnic tables, bbqs, park benches 15,000• New picnic tables, bbqs, park benches 15,000• Ilyarrie Reserve 60,000Drainage construction 515,000• Korong Street flood mitigation – major flooding occurring in Korong Street

and surrounds (upstream and downstream) – Hope Valley 200,000

• Oratanga Road culvert rehabilitation – rehabilitation of a large street culvert on corner of Oratanga and Golden Grove Roads – Ridgehaven

75,000

• Drainage construction Southern Terrace – flooding pits and pipelines are at or over flow capacity – Holden Hill

50,000

• Drainage construction Dale Avenue – flooding pits and pipelines are at or over flow capacity – Ridgehaven

50,000

• Drainage construction Grand Junction Road – stormwater management works and flood mitigation – Hope Valley

140,000

CWMS renewal 400,000• Grenfell Road – CWMS trunk main renewal – Fairview Park 400,000Bridge renewal 25,000• Beckman Reserve, Highbury – footbridge 50,000• Beckman Reserve, Highbury – footbridge (subject to school funding) (25,000)Irrigation replacement 131,000• Wynn Vale Oval, Wynn Vale – irrigation replacement (subject to school

funding) 140,000

• Wynn Vale Oval, Wynn Vale – irrigation replacement (subject to school funding)

(94,000)

• Hope Valley Oval, Hope Valley – bore pump 20,000• Linear Park – new installation 65,000


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Project/program $ Net cost $Service centre refurbishment 4,000,000• Fit out and divestment costs – to be determined in consultation with

architects and staff – Golden Grove 4,000,000

Plant and equipment 1,683,000• Major plant 1,075,000• Minor plant vehicles 373,000• SCADA – Gather of data real-time 150,000• Exponare – mapping upgrade 85,000Information technology 1,247,000• Implement Asset Management Information Systems (AMIS) – ongoing 150,000• Content management and collaboration – a new electronic document

record system, a new customer relationship management solution and a new online smart form solution

160,000

• IT asset management renewal – ICT hardware at end of life 149,000• Office365 – upgrade Microsoft software to the latest version 85,000• Telephone system – upgrade at end of life 133,000• Role based devices – ICT devices for staff and community 450,000• Business process and data quality improvement – enhance the customer

experience by expanding the use of smart forms and work flow for business process efficiencies

100,000

• Provide public wi-fi to compliment current WAN tender 20,000Unsealed footpaths 448,000• Doxiadis Reserve north, St Agnes – Mumford Avenue to Kokoda Trail 44,000• Doxiadis Reserve south, St Agnes – Mumford Avenue to Doxiadis Street 17,000• Mumford Reserve, St Agnes – Hancock Road to Mumford Avenue 70,000• Cobbler Creek, Greenwith – extend existing path to second bridge 27,000• Jack High Lane, Ridgehaven – through to existing path at dog park 9,000• Famechon Reserve, Modbury North – from existing path to Solandra

Crescent 50,000

• Carruthers West Reserve, Modbury North – Carruthers Drive to McIntyre Road

24,000

• Path from north end Capulet Crescent, Modbury to McIntyre Road bus stop 8,000• Path from south end Capulet Crescent, Modbury to McIntyre Road bus stop 8,000• Fairleigh Reserve, Modbury North – Ladywood Road to Rawlings Road 65,000• Jubilee Reserve, Wynn Vale – Grenfell Road to school adjacent De Castella

Avenue 76,000

• Pine Park, Tea Tree Gully – history trail. Total project cost $110,000 (only the provision of a gravel footpath is agreed on at this stage)

50,000

O-Bahn replacement footpath 200,000• Grand Junction Road to Waninga Avenue, Holden Hill 200,000New footpaths 1,000,000• New footpaths 3,000,000


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Project/program $ Net cost $• Less government contributions (2,000,000)Reserve rectification and roundabout beautification 630,000• Hargrave Reserve, Modbury Heights 430,000• Beckman Reserve, Highbury 75,000• Ladywood and Solandra Way roundabout, Modbury North 25,000• Grenfell Road roundabout, Fairview Park 100,000Bus stops and bus shelters 250,000• Various bus stop hard stand upgrades – DDA upgrades 90% complete by

December 2017. Program to be determined and presented after adoption of budget

200,000

• Bus shelter upgrades – 6 replacement shelters and 1 new shelter: - Stop 52E Golden Grove Road, Surrey Downs 8,000- Stop 59E Hancock Road, Fairview Park 7,000- Stop 67E Kelly Road, Modbury North 7,000- Stop 36aE Valley Road, Highbury 7,000- Stop 64E Kelly Road, Modbury North 7,000- Stop 35S Jacobson Crescent, Holden Hill 7,000- Stop 47E Hancock Road, Tea Tree Gully 7,000

City beautification 160,000• Civic Park, Modbury, stage 3 – Event infrastructure and lighting. 100,000• Pine Park, Tea Tree Gully – history trail – stone wall renewal 60,000City beautification works and tree screening rectification works 1,006,000• Tea Tree Gully – Historic precinct, North East Road (opposite Memorial Park) 45,000• Main roads and gateways project – Reservoir Road, Modbury Precinct 770,000• Smart Road, Modbury – Reservoir Road to 550m east O-Bahn terminal entry 750,000• Smart Road, Modbury – Reservoir Road to 550m east O-Bahn terminal entry

(subject to grant funding from Places for People) (750,000)

• Tree Screens – Delfin Development Area 191,000Playground equipment replacements 400,000• Greenwith campus, Greenwith 150,000• Greenwith campus, Greenwith (subject to school funding) (75,000)• Kimberly Reserve, Modbury North 75,000• Bendigo Reserve, Modbury 220,000• Neville Reserve shade sail – Modbury North 30,000Lighting 15,000• Gail Court, Highbury – lighting 15,000Library 166,000• Audio-visual materials 21,000• Adult fiction 30,000• Adult non-fiction 32,000• Young people’s books 28,000


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Project/program $ Net cost $• Periodicals 31,000• Materials 24,000Other 1,539,500• Golden Grove Arts Centre, Golden Grove 40,000• Projects with grant funding (to be determined) 866,000• 2020 Sporting Facility Expansion program – Modbury Sporting Complex

boundary fencing and retaining wall 150,000

• 2020 Sporting Facility Expansion program – Modbury Sporting Complex boundary fencing and retaining wall (approved grant funding)

(30,000)

• Main Roads and Gateways – Smart Road, Hatherleigh Avenue to TAFE 721,000• Main Roads and Gateways – Smart Road, Hatherleigh Avenue to TAFE

(approved grant funding) (144,000)

• Open Space Contribution works – Immanuel Reserve 82,500Car Parking 192,000• U3A upgrade of eastern section of northern car park at the Adult Education

Centre located at 22 Golden Grove Road, Modbury North 192,000

*Subject to sale of Wynn Vale Community Building


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Infrastructure Asset Management PlansCouncil has developed and adopted various infrastructure asset management plans (IAMPs) which include detailed information about assets, including actions to provide an agreed level of service in the most cost-effective manner. The plans define which services are to be provided, how they will be provided and what funds will be required to support them for the next ten years.

IAMPs are one of a number of key components of the LTFP.

Providing infrastructure services in a sustainable manner requires the matching and managing of service levels, risks, projected expenditures and financing, at least for the first few years of the asset management plan and ideally over the ten year lifespan of the LTFP.

We have adopted an asset management strategy that sets a range of strategic priorities; this will enable us to further improve our asset management practices. The overall strategy and individual IAMPs that were reviewed last year will form a robust framework to help us plan both short and long term service delivery.

At all times we seek to match the perceived service needs of the community with our ability to fund them, hence maximising community benefits within budgetary constraints.

IAMPs have been developed for managing infrastructure such as roads, footpaths, buildings, stormwater, community wastewater and the Waterworld Aquatic Centre.

For example, the Roads IAMP proposes the resurfacing of roads using Aslphaltic concrete (hotmix). It is essential to resurface roads at the optimum time in their life cycle in order to protect the underlying pavement. Accordingly, Council will need to continuously refine and adjust the Roads IAMP and the LTFP in order to best manage our roads infrastructure.

The Footpaths IAMP proposes the ongoing renewal of unsealed footpaths through reserves, while most of the sealed footpath network is in relatively good condition. Council will continue to construct footpaths and off-road cycle paths to expand pedestrian and cycling networks.

The Buildings IAMP requires inspections to be conducted of Council’s assets, especially those nearing the end of their useful life, to ascertain the required budget allocation to best manage these assets.

Council’s stormwater and community wastewater assets have long lives and it is predicted that only a small number of earthenware pipes will need replacement. However, the pipe networks are buried and although we have a general idea of their condition, we will need to continue our regular inspections and budget for unforeseen events that may require replacement works to pipes or pits.



Full details of Council’s IAMPs are available on our website at cttg.sa.gov.au

Service Centre Fitout

In 2018 we will continue with the refurbishment of our new service centre to ensure we remain operationally effective, safe and compliant. This will require an initial investment of $4 million in 2017–2018 and a further investment in future years.

Council is conscious of its debt level and has forecast to maintain the debt level within the targeted range of 25–35% of its revenue over the life of the LTFP.

Prior to finalisation of the Annual Business Plan, Council may consider a cost benefit analysis of staging the project over one, two, three or more years. At present, the Annual Business Plan assumes that the project will be completed over a minimum of three years, however, if there are benefits for the community, this may change. From a financial perspective, the decision to move forward the project or not will not impact the LTFP adversely over a cumulative three to four year period, but may change our financial projections in the early years, including 2017-2018.


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MEASURING PERFORMANCE OBJECTIVES FOR THE YEAR

The following pages outline our key actions linked to the Strategic Plan and Organisation Plan for the financial year 2017–2018.

SP1 Healthy and Safe – People in our community are healthy and safe.

Aspiration

Our community is healthy and safe.

Strategic objective Desired outcomes Action MeasuresSP 1.1.1 A community where people are safe in our public places and spaces

People can safely move around our City

Select, design and construct Disability Discrimination Act (DDA) accessible bus stops and shelters in accordance with the legislative requirements and standards

Installation of bus stop hard stands and shelters that comply with Disability Discrimination Act requirements

Develop a Bus Shelter Management Plan

Asset Management Plan developed

Mandatory regulatory, advisory and directional traffic control devices in accordance with the Capital Works Program

Devices installed in accordance with Australian Standards

Install pavement marking, pedestrian signals and safety bar layouts in accordance with the Capital Works Program

Pavement markings and devices are installed in accordance with the approved works schedule


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Strategic objective Desired outcomes Action MeasuresMaintain the existing road network through inspections, maintenance, reconstructions and resealing in accordance with the Roads Transport Infrastructure and Asset Management Plan

Further details can be found in the Capital Works Program

The Capital Works Program is fully funded and works are performed in accordance with the program. Average condition of roads is maintained to relevant standards

Guard fence installation at Perseverance Road

Devices installed in accordance with Australian Standards

Buildings and facilities that are fit for purpose and meet the needs of the community

Maintain Council buildings in accordance with the Buildings Asset Management Plan

Inspections completed and rectification works scheduled

Golden Grove Recreation Centre stadium air conditioning replacement

Works completed in accordance with works program and budget

Stage two Civic Centre air conditioning end of life replacement

Stage two works completed

Replace the lighting desk to ensure continued operations at Golden Grove Arts Centre


Install purpose built chemical storage shed at Waterworld as per chemical audit recommendations


Waterworld poolside refurbishment


Gail Court lighting upgrade Devices installed in accordance with Australian Standards

Civic Centre lift upgrade Works completed in accordance with agreed schedule with lessee


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Strategic objective Desired outcomes Action MeasuresSupport good health and community wellbeing by meeting our obligations under the Public Health Act and Local Government Act

Deliver actions and report to Council and SA Health on our performance against the Public Health Act

Actions are completed with regular reporting to both Council and SA Health

Provision of kerbside waste and recycling services for collection and processing

Maintain community satisfaction levels as identified in the community survey

Upgrade and refurbishment of Tea Tree Gully Library public toilets


Upgrade existing Community Wastewater Management System (CWMS) infrastructure on Grenfell Road, Fairview Park

The provision of a working septic waste system

Minimise public health impacts by maintaining and operating the Community Wastewater Management System network


Develop a Community Wastewater Management System strategy to meet future community requirements

Strategy developed

SP 1.1.2 A community where people are safe during emergences, natural disasters and during extreme climactic events such as storms or heatwaves

Plans and initiatives are in place that enable Council to effectively respond to emergency events

Review council’s emergency management arrangements in the context of new SA emergency management legislation and publications, including the impact on Council’s Emergency Management Plan and Business Continuity Plan

Emergency management review completed

Bushfire mitigation activities are tracked and measured and align with relevant regional and state strategies

Bushfire mitigation activities are completed and reported to Council

Maintain fire tracks in a safe and fit for purpose condition

Fire tracks maintained as scheduled


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Strategic objective Desired outcomes Action MeasuresProtect streets and properties from flooding by operating and maintaining the stormwater network in accordance with the Stormwater Asset Management Plan

Works completed in accordance with Capital Works Program and budget

Beckman Reserve footbridge renewal

Works completed in accordance with Capital Works program and budget

SP 1.1.3 A community where people have easy access to places, spaces and services that support good health

The community has access to an appropriate range of good quality and accessible sporting and recreation facilities and programs that will provide opportunities for individuals and groups to be creative and remain physically and mentally active

Implement a playground capital works program, including regular inspections, ensuring works carried out align with Council’s adopted budget

Further details can be found in Council’s Capital Works Program

Works completed in accordance with Capital Works Program and budget including playground equipment replacement at Greenwith Campus and Bendigo Reserve

Construct female change rooms for Modbury Vista Soccer Club at Richardson Reserve to cater for increasing female participation and to comply with Football Federation of SA regulations

Upgrade complete and complies with Football Federation of SA regulations

Assist residents to remain living independently at home and in their community

Deliver outputs required as part of the external funding agreement

Deliver a range of activities which promote overall health and wellbeing

Increase community wellbeing, “feeling part of our community” as per 2016 Council survey, from 46% to 50% enabling residents to remain active and involved in their community

Maintain and manage existing turf quality

Increased performance of identified turf areas in accordance with Capital Works Program


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Strategic objective Desired outcomes Action MeasuresDisability Discrimination Act (DDA) plan upgrades including the reception area and front counter at Golden Grove Recreation Centre


Deliver the upgrade to the Modbury Bowling Club synthetic greens and shade cover project


Review the Disability Discrimination Act Access Action Plan and Ageing Strategy

Reviewed documents adopted by Council

Continue to review the Open Space Strategy

Report to Council detailing options and timing

Upgrade Bernacchi Reserve tennis courts (Tongariro Street)


Strategically partner and collaborate with external service providers, government bodies and non-profit organisations, service clubs and community groups to ensure access to services and programs that promote community wellbeing

Number of programs and services offered via partnership approach that offer wellbeing outcomes

O-Bahn replacement footpath


Hargrave Reserve upgrade Works completed in accordance with works program and budget

Beckman Reserve and Kimberley Reserve upgrades


Stage three roof safety improvements

U3A northern carpark upgrade


Works completed


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SP2 Prosperous and connected – Our local economy prospers and people have a sense of purpose and belonging.

Aspiration

Our local economy prospers and people feel a sense of purpose and belonging.

Strategic objective Desired outcomes Action MeasuresSP 2.1.1 A community that has a say in decisions that affect them

The community has fair and even representation on Council with the ability to have a say in decisions that affect them

Finalise the electoral representation review in accordance with the schedule and requirements established under the Local Government Act 1999 (s12–34)

Electoral representation review is completed by the due date

Conduct the annual community survey and the ‘have your say’ promotional campaign

Increase in the relevant community survey score to 60%

Implement strategies for Community Panel recruitment focusing on the under 40 age category

Strategies developed which support an increase in the target age group

SP 2.1.2 A community that participates in meaningful community and economic activities

Through hosting events people perceive the Tea Tree Gully Council area to be inclusive, exciting, forward thinking, fun and an enjoyable place to live, generating civic pride and attracting the interest of the community and other stakeholders, including private enterprise, through sponsorship and development

Maintain and improve the current major events program in line with the Events and Activation Model

Delivery of the major events program is endorsed by Council

Delivery of four citizenship ceremonies

Citizenship ceremonies are delivered on time and within budget


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Strategic objective Desired outcomes Action MeasuresPromote the Events Sponsorship Program with a focus on positioning our City as a destination of choice for large and small scale events

Attract events to the City that activate and complement Strategic plans and/or endorsed Events and Activation Model

Individuals and the community have a sense of belonging and have opportunities to volunteer and to develop skills, including leadership skills

Provide a range of free and low-cost programs and activities to enable the community to gain a new life skill and/or participate in volunteering

The number of programs and activities; percentage of participants who feel they have gained/increased a skill; number of volunteer opportunities provided

Residents are supported to remain independent at home and in their community

Partner with the state government through the Active Ageing Program to deliver the funding objectives for eligible residents

Outputs delivered as per program

Increased connections within the community

Integrate place-making into design and construction practices with a focus on precincts

Review completed and recommendations implemented

Review all active ageing programs and develop new programs that respond to community needs


Explore opportunities for neighbourhood development activities to promote community connections

Increase the connectedness score in Council’s community survey

SP 2.1.3 A community with a resilient local economy

Council supports investment, economic development and activity in our city

Undertake a review to determine the effectiveness of the Development Assessment Business Advisory Service offered to applicants that lodge commercial applications. Implement changes or other strategies as necessary

An effective DA Advisory Service to assist with the efficient processing of commercial development applications

Continue meetings of the Economic Development Steering Group

Economic Development Steering Group meet regularly and meet their Terms of Reference


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Strategic objective Desired outcomes Action MeasuresProvide support for small businesses and monitor and report on performance quarterly to Council

Quarterly reports submitted to Council

Case manage new investment and development opportunities in the City and in particular Modbury Precinct

New investment and development opportunities are realised

Consultation and finalisation of a review of the Centres, Light Industry and Commercial Zones Development Plan Amendment with a focus on encouraging greater economic activity

Development Plan Amendment completed and endorsed by Council for referral to the Minister

Conduct a review of Council’s Reconciliation Action Plan


Amend the procurement quotation approach as per recommendations from the Audit/Council meeting

Procurement quotation approach addresses the Audit/Council meeting recommendations

SP 2.1.4 A community where people have the resources and capacity to achieve goals

Digital technologies and services create opportunities for the community to interact and learn

Provide a range of free and low-cost programs and activities to enable community members to participate and/or contribute to the community

Community members increase skill set, either life skills or employability, via volunteering

Deliver public access to wi-fi at suitable congregation points and recreation centres (to support online scoring)

Implement as per scheduled works and approved budget

Local community groups, organisations and individuals have access to funding and services to help achieve their projects, events, activities or initiatives

Deliver the Community Development Grants Program to support local groups and organisations

Grants are fully subscribed and taken up by the approved applicants

Supply of new/current/refreshed Library materials

Materials purchased as per the approved budget


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SP3 Vibrant and liveable – Our City is a desirable and sustainable place to live.

Aspiration

Our city is a desirable and sustainable place to live.

Strategic objective Desired outcomes Action MeasuresSP 3.1.1 A city that is made up of places and spaces that are appealing and easy to access

Our places and spaces are developed and maintained to ensure they are easy to access, fit for purpose and well patronised by the community

Maintain the existing footpath network, construct new footpaths and renew bike paths throughout the City in line with the Footpath Construction Strategy and Local Area Bicycle Plan

Further detail can be found in our Capital Works Program

Construction works completed in accordance with the adopted Capital Works Program and budget

Construct unsealed footpaths and bike routes throughout the City in line with the Footpath Construction Strategy

Construction works completed in accordance with the adopted Capital Works Program and budget

Revitalisation of the Modbury Precinct

Regular reporting to Council on the status of actions

Unsealed footpath at Jubilee Reserve Wynn Vale – Grenfell Road to school adjacent De Castella Avenue

Works completed in accordance with the Capital Works Program

Verges are maintained in accordance with the works program

Works completed in accordance with the works schedule and budget

Provision and maintenance of public lighting


Review of Library opening hours

Accessibility to the Library that meets the needs of the community

SP 3.1.2 A community with a diverse range of housing to suit a variety of needs, life stages and lifestyles

Investment in the economy and population diversity in Modbury Precinct increases

Continue implementation of the marketing campaign to attract investment and the target population to the Modbury Precinct

Campaign initiatives implemented


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Strategic objective Desired outcomes Action MeasuresUpgrade streetscapes in Modbury Precinct to deliver the objectives of the Modbury Precinct Activation Strategy and Landscape Style Guide

Streetscapes upgraded and new investment attracted

Main roads and gateways project on Reservoir Road


Clear long-term direction for growth and development for the City

Explore opportunities for the strategic development or sale of Council land

Identified opportunities presented to Council

SP 3.1.3 A sustainable city that has a healthy natural environment and is resilient to climate change

Council’s infrastructure, including parks, reserves and streetscapes are resilient to climate change whilst maintaining their functionality and appeal to the community

Amend Council’s Mulch Replacement Program to increase the aesthetics of parks while reducing water use and increasing plant health

Complete review and implement the recommendations

Implement year five of the 5-year action plan actions for the Dry Creek restoration project

Actions implemented as per the Capital Works Program

Implement the Resilient East Climate Change Adaptation Plan in collaboration with partnering councils and stakeholders (heat island mapping)

Resilient East Climate Change Adaptation Plan is implemented

Develop an integrated water management strategy to provide resilience and water supply security

Strategy is developed and endorsed by Council

Variable speed drive at Waterworld

Works completed in accordance with the Capital Works Program and maintenance schedules

Maintain and operate irrigation systems in accordance with the Irrigation Management Plan



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Strategic objective Desired outcomes Action MeasuresCouncil continuously looks for ways to implement environmentally sustainability initiatives

Implement the CTTG Climate Change Action Plan – LED lighting upgrades at Surrey Downs, Wynn Vale and Holden Hill


Greenwith Community Building lighting upgrade


Provide a free Envirocare service in order to encourage the recycling of green waste

Envirocare events held as per adopted schedule

All Solo trucks rebranded. Education campaign designed and implemented

Education campaign implemented

The community has access to healthy and sustainable natural environments

Review the Biodiversity Strategy and implement actions as recommended

Biodiversity Strategy provided to Council for finalisation

Maintain tree assets within the City with reference to the Tree Management Policy

Works performed in accordance with works schedules and budget

Horticultural maintenance of reserves and streetscapes across the City


Provide a cleaner stormwater catchment by maintaining street cleanliness via our street sweeping program


SP 3.1.4 A places that expresses a unique character and identity, an area that inspires pride in its residents and one that people enjoy visiting

A vibrant and liveable city that people are proud of

Monitor and advocate for the delivery of the Tea Tree Gully Township Precinct Plan

Delivery of actions for adopted action plans

Official events implemented as guided by the Major Events Policy associated with capital works of open spaces, playgrounds and cycleway with a budget exceeding $200,000

Official events conducted and are in accordance with the Major Events Policy


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Strategic objective Desired outcomes Action MeasuresCivic Park event infrastructure upgrade, including lighting

Works performed in accordance with work schedules and budget

Raise awareness and showcase the liveability of the City and its precincts by creating and implementing events and initiatives that appeal to an identified demographic

Delivery of activation events

City Beautification Program including, landscape treatments, reserve rectifications and round-a-bout beautification



Removal of graffiti from public infrastructure within specified timeframes and maintain street entrance statements

The timely removal of graffiti around the City

Removal of illegally dumped rubbish throughout the City

Rubbish removal in a timely manner

Install and renew fencing and park furniture in accordance with the Capital Works Program



Tree screen rectification works including Tea Tree Gully Township, Smart Road, Delfin Development Area


Identify upgrade and activation initiatives in the Modbury Precinct and prepare concept plans that have a whole of site approach, for delivery

Whole of site plans developed as required


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Strategic objective Desired outcomes Action MeasuresA community that is proud of its heritage while still respecting and promoting diversity

Implement Council’s Reconciliation Action Plan

Actions implemented as recommended

Hope Valley Institute heritage restoration works


Pine Park History Trail upgrade – stage one gravel footpath


Pine Park History Trail upgrade – stage one stone wall repairs


OP1 People and leadership – Our people are engaged and make a meaningful contribution to organisational success.

Aspiration

We have a positive, high-performing culture.

Organisation objective

Desired outcomes Action Measures

OP 1.1.1 Our values are role-modelled across all areas of the organisation

Our corporate leaders share our vision and purpose and are leading a positive culture that engages its employees

A strategy is in place to address the outcomes of the 2017 Culture Survey

Improved culture measured at our next culture survey

OP 1.1.2 Our behaviours align with our values

We move closer towards our preferred culture

Conduct a review and refresh of corporate values to align with the Organisation Plan, vision and purpose

Review completed

Aspiration

We have a skilled, agile and capable workforce.



OP 1.2.1 We understand our business needs and adapt accordingly

Staff are appropriately skilled to deliver critical services to the community

Implementation of year one of the 3-year plan for training all staff in the identified core competencies

Training delivered

Change management training is provided to all corporate leaders

Training delivered


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Implement technologies to suit different workforce personas and improve collaboration and learning spaces

Technologies implemented

Aspiration

Our leaders provide vision and inspire us to perform at our best.



OP 1.3.1 Our leaders provide us with consistent and transparent direction, vision, purpose and mentoring

A high performing organisation that operates with coordination and strong leadership

Organisation Plan, vision and purpose communicated and reinforced through the Values project

Staff are aware of the Organisation Plan, vision and purpose

Assist corporate leaders to establish shared short, medium and long term strategies that align with the Strategic Plan objectives

Staff understand the importance of the Strategic Plan 2020 and their part in delivering outcomes

Coordinate the CEO Performance Review on an annual basis

The CEO is performing in accordance with expected roles and responsibilities

OP 1.3.2 We understand our role and the part we play in meeting the organisation’s goals

Staff understand the importance of our key strategic document and their part in delivering outcomes

Investigate potential ways to measure a wider range of city development outcomes to complement the numbers-based measures we currently have. This can include customer service surveys, outcomes of internal and third-party review of decisions, etc.

Investigate complete with alternative measures used to monitor outcomes

Develop and deliver an agreed Elected Member training and development plan (to be endorsed by 1 July 2017)

Elected Members are provided access to training and development that guides them in undertaking their roles and responsibilities


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Aspiration

We are all committed to the safety and well-being of our people and visitors.



OP 1.4.1 We foster a safety culture where we place safety and well-being first in everything we do

Work injuries are minimised and effectively managed to ensure the best outcomes for the worker

A health and safety training plan is in place and training is conducted in accordance with the plan

Training completed

Safety First Strategy is implemented and KPIs achieved

Safety First Strategic Plan actions are implemented

The recommendations and actions from the compliance audit and safety review are implemented on a prioritised basis

Recommendations are implemented as required

Policies and procedures due for review are identified and are reviewed on a prioritised basis

Health and safety policies and procedures are current, endorsed and implemented in line with the document implementation schedule

OP2 Customer and community relations – We manage our customer relationships and analyse their requirements, in order to deliver increasing value.

Aspiration

We identify and understand the needs of our customers to inform delivery of services.



OP 2.1.1 We build customer needs into design and delivery of services

Operations are optimised to deliver efficient services to the community

Explore online scoring at recreation centres via wi-fi and electronic customer feedback points at recreation centres and Waterworld

System implemented

Continue implementation of Council’s preferred works depot facility solution

Operations are optimised to deliver efficient services to the community

Procurement of plant, fleet and equipment

Purchases align with operational needs and the allocated budget


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Programs, services and open spaces are provided to the community with options to improve health and well-being

Review recreation and wellbeing programs and services provided to the community and execute planning activities as per approved policy, procedure or other agreement

Programs, projects and services implemented as per policies, plans and other agreements

OP 2.1.2 We ensure all contact has a customer focus

Customers interact with Council in a variety of ways that match their preferences

Optimise phone system and leverage off digital workplace initiatives (unified communications). Develop service levels and processes for 24/7 phone service

Move ‘out of hours’ phone contact from urgent to business as usual (24/7 telephone service)

Carry out annual Customer Preference Survey to inform improvements to customer contact and communications channels. Carry out annual Customer Benchmarking Survey to understand customer satisfaction levels with the delivery of Council services

Survey completed and action plan developed

Aspiration

We establish and embed the notion of positive customer experience into all services



OP 2.2.1 We will deliver services in a way that enhances the customer experiences

We provide services that are valued by the community

Ensure that the Customer Experience Program is continued to be implemented through the Customer First Program

Positive results from the Customer Survey value for money for rates paid (>2%) and customer satisfaction (<3%)

Implement smart forms and data quality improvement for priority business processes, including the Name and Address Register

Smart forms and improvements implemented


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Aspiration

We connect with our customers and relate more closely to their perceptions and experiences.



OP 2.3.1 We provide information that is relevant, current and meaningful through accessible channels

Staff and Elected Members have relevant data and information that assists with decision making

Monitor external trends that are relevant to our business and provide commentary to inform other departments and Elected Members. Review annually how effective the process and information has been

Data and trend information presented to Council and staff

OP 2.3.2 We show understanding, compassion and courtesy in customer interactions and communications

The individual needs and motivations of volunteers are responded to whenever possible

Feedback mechanisms are used to measure volunteer experience. Measuring volunteer satisfaction levels through annual survey

Volunteer satisfaction levels are measured and monitored

OP3 Governance – We define the roles, powers and responsibilities within the organisation.

Aspiration

We make informed decisions.



OP 3.1.1 Our people are empowered to make decisions

Corporate leaders and elected members have relevant information about performance that assists with decision-making

The status of Strategic and Organisation KPIs are reported on a quarterly basis

Reports presented quarterly

OP 3.1.2 The decision-making process is transparent and based on evidence

Council is aware of the outcomes from its decision-making

Regular reporting occurs on status/outcomes of Council and committee decisions

Status/outcomes of Council and committee decisions are reported at every ordinary Council or committee meeting


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Aspiration

We take a balanced approach to risk.



OP 3.2.1 We understand that risks exist and manage them for positive outcomes

Effective risk management

Deliver the Internal Audit Plan and monitor outstanding high/extreme risks from internal audits

Delivery of the Internal Audit Plan. Monitor and report on high/extreme risks on a bi-monthly basis

Mutual Liability Scheme annual review performed and actions taken where appropriate

Achieve a score greater than the metropolitan council average (if applicable)

Department risk registers to be reviewed every two years, with periodic monitoring and reporting on high and extreme corporate risks

Department risk registers reviewed every two years

Risk assessments for all volunteer programs are up to date and reviewed on a periodic basis

All volunteer activities have been assessed with any identified risks controlled

Review (six monthly) and implement (when required) our Business Continuity Plan to ensure key services are delivered to the community in the event of an emergency

Business Continuity Plan review completed

Aspiration

We have efficient and effective processes that are easy to follow.



OP 3.3.1 Our systems and processes are easy to follow and help our people with the decision-making process

Improve quality and consistency of reports presented to Council and committees

Develop report writing guidelines and run associated training sessions

Guideline developed. Staff trained


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Aspiration

We will be legislatively compliant and have robust and responsive governance.



OP 3.4.1 We work proactively to meet our legislative and governance obligations

Transparent and best practice governance processes apply

Production and distribution of Council and committee agendas, reports and minutes in accordance with legislative timeframes

Acceptance of agendas, reports and minutes by Council and committees within legislated timeframes

Work with the state government to implement the new Planning and Design Code, including a review of policies relating to Commercial, Industry and Mineral Extraction Zones

Land use zone policies are aligned with state government priorities and community needs

Review of procedures in line with the review schedule (with every procedure updated within two years)

90% of procedures are updated every two years

Review of Council-endorsed policies in line with review schedule (with every policy reviewed within three years)

90% of policies are updated every three years

Confidential Council and committee meeting items monitored, reviewed and reported on periodically

Six monthly review of confidential items completed


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OP4 Finance and systems – We use systems and data to show how well we are performing and as a basis for ongoing reviews and improvements.

Aspiration

We are financially sustainable.



OP 4.1.1 We meet our financial commitments to the community and organisation

Less reliance on rates revenue to deliver project objectives

Identify and apply for grants to deliver initiatives in the City

Grant monies received

Council achieves financial sustainability

Deliver a robust and accurate financial planning and reporting system that incorporates a balanced budget

Expenditure is within negative 1%–2% range of Councils Quarter 3 budget

The Capital Works Program is delivered within budget

90% (by cost) of the Capital Works Program is delivered within 1% + 2% against the Quarter 3 review period

OP 4.1.2 We allocate resources based on clear priorities

Highest return and best use of Council’s resources

Ensure requests are prioritised according to risk and needs of community. Utilise contractor services to compliment the range of tasks undertaken. Ensure works meet timelines even through seasonal influences

Works are performed in accordance with relevant timelines

Aspiration

We embrace advances in technology to ensure our systems are easy to use and enable us to be effective and efficient.



OP 4.2.1 Our systems are relevant, sustainable and meet our needs

A stable, secure and supported IT environment

Various IT related hardware and software initiatives implemented in accordance with the IT Strategy

Supported IT Strategy items implemented

Deliver information technology asset management renewal to provide a platform for a digital strategy

Digital strategy developed and reported


53



OP 4.2.2 We collect and analyse useful data in order to aid decision making

Elected Members and corporate leaders have the information that enables them to make decisions that offer the most benefit to the community

Measure and report on the organisation’s performance in delivering our key strategic objectives and actions

Quarterly reports delivered on strategic and organisational key performance indicators

Collect building asset condition data and update Council’s asset management system

Data collected and Council’s asset management system updated

Systems for measuring the economic value and costs associated with volunteering developed

Decision making is made using relevant data about volunteering

Measure and report on the deliverables in the Asset Management Strategy

The Asset Management Strategy deliverables are reported on a regular basis

OP5 Continuous improvement – We encourage innovation and improvement to ensure we continue to deliver value.

Aspiration

We foster a creative culture.



OP 5.1.1 We look for new and better ways to improve our processes

Increased staff engagement through participation in the Continuous Improvement Program

Performance improvement processes and tools are developed and corporate leaders understand their responsibilities

Our leaders can access effective systems and practices that support them in creating a culture of high performance

Reduce duplication of effort and achieve cost savings

Establish a corporate document hierarchy and review existing corporate documents to ensure alignment with key strategies and establish a process for ongoing review

Initial review completed with a framework established for the ongoing review of documents

Undertake a review of the dog pound services and the impact that the new Service Centre may have on the way that these services are delivered

Review completed

Continue to implement the Asset Management Information System (AMIS)

System is implemented as per the relevant actions and to budget


54

Aspiration

We include continuous improvement in our daily thinking in order to grow.



OP 5.2.1 We work with and learn from others in order to improve the way we work

Access to comparative data to assist with continuous improvement

Implement Microsoft Office 365 and new telephone system to provide better tools for collaboration and communication and reduce IT infrastructure support requirements (aligned with Council Solutions)

A platform for collaborative and mobile workers based at the Civic Centre is established, and for future collaboration across Council Solutions in line with our Digital Strategy

Implement an enterprise content and collaboration solution which integrates with our electronic document records management system (HPE Content Manager)

A system is implemented that integrates with our current electronic records management system

In conjunction with Community Development, implement a volunteer dog walking program

Volunteer dog walking program implemented

Assist the Library in providing a reading to dogs program for children

Program implemented

OP 5.2.2 Improvements are focused on customer benefit

Improve the overall customer experience, internal efficiencies and staff engagement

Complete eight service reviews per annum

Service reviews completed with outcomes reported to Council

OP 5.2.3 We maximise benefits to staff and workplace efficiencies by using creative solutions

Staff are committed to continuously improving work practices

Deliver continuous improvement education sessions across the organisation that promote the benefits of continuous improvement

Increase in the number of sessions run and the number of staff attending

Implement Civic Centre wi-fi and instant messaging/presence services to facilitate greater collaboration and flexible working practices for staff

Reduce volume of email traffic and internal phone calls

Implement the Asset Management Information System (MACK Phase three)

MACK Phase three implemented. Achieve the expected 5% process efficiency gain through MACK implementation


57

FUNDING THE ANNUAL BUSINESS PLAN

We are aiming for an operating surplus of $5.689 million in 2017–2018. This surplus (i.e. the difference between operating revenue and expenses for the financial year) will help us to achieve the five key principles in our Long-Term Financial Plan (LTFP); that is, maintaining debt while ensuring that the capital works program has sufficient funds for new works.

Funding the Annual Business PlanOur Financial Sustainability Policy is an important consideration in preparing this Annual Business Plan. The key components of this policy are:

Operating surplus ratio

The operating surplus ratio (OSR) is a key measure of financial sustainability. It shows the operating surplus (or deficit) as a percentage of general and other rates, excluding rate rebates and revenue from the Natural Resources Management (NRM) levy.

Funded asset and service provision costs

The full cost of providing services to our community is included in our annual budget and LTFP.

We work hard to maintain existing assets, such as playground equipment or community buildings, to maximise their value to us during their life span wherever this is cost-effective and practical. However, when we can no longer keep these assets functioning at a serviceable level, we replace or upgrade them to ensure they continue to remain useful to our community.

The asset sustainability ratio (ASR) is a measure of whether we are renewing or replacing existing non-financial assets at the same rate that our overall stock of assets is wearing out (being depreciated). This ratio is calculated by measuring capital expenditure on asset renewal or replacement relative to the recorded rate of depreciation for the same period. Our target for 2017–2018 is for the cost of renewal or replacement (after deduction of any income from the sale of old assets) to be between 90% and 110% of depreciation when averaged over a period of three years.

Debt limitation

In 2017–2018, given the additional cost of renewing our depot ($4 million), our level of debt will rise by $0.949 million, which includes $200,000 of CWMS works from 2016-2017. To offset this debt we will:

Our long-term financial

sustainability depends on us

ensuring that on average, over time,

our expenses are less than revenue,

and that we continually identify

opportunities to reduce our existing

debt.


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• Budget to deliver a modest surplus• Confine capital expenditure to $20.590 million

(excludes income from grants and sale of assets) • Fund our future capital expenditure from

depreciation and surplus and continuing to review our operations to deliver the best services in the most cost-effective manner

• Cap, and where possible, reduce our discretionary expenditure.

We believe it is appropriate to operate with a certain level of debt, particularly given the extensive portfolio of assets we hold. We have already funded significant upgrades of intergenerational assets in recent years, such as the Waterworld Aquatic Centre, Montague Road and various sporting and community club upgrades, by using a combination of variable and fixed-rate borrowings, as outlined in our Treasury Management Policy.

We also monitor carefully our net financial liabilities ratio (NFLR), which is a measure of our net financial liabilities expressed as a percentage of total operating income.

Review of assets

We review our assets regularly to make sure they are continuing to meet strategic planning objectives. If we consider that any assets are surplus to Council’s or the community’s needs, we will seek community views on selling them. Any money received is then used to fund capital or refurbishment works in line with our Land Strategy.

In purchasing new assets, we consider:• Our current operating surplus or deficit• Any additional depreciation, maintenance costs

and interest expense on borrowings• The impact of purchase on our operating surplus

or deficit• Any need to increase Council rates to fund the

purchase and/or ongoing maintenance costs• The age, life expectancy, suitability and service

potential of any asset• The discounted cash flow analysis, where

appropriate.

Funds received from any sale of Council land or buildings are to be reinvested in line with our Land Strategy.

Our LTFP includes provision of new assets in future years.

The current depot, located at 114 Tolley Road, St Agnes, has served the community through the provision of city maintenance, infrastructure management and community services since the 1970s. Since it was established, the City of Tea Tree Gully’s population has more than doubled.

The depot is a hub for key support services such as construction and maintenance of roads, footpaths, stormwater, recycled water, parks and buildings, a dog pound and an SES facility; all of these are critically important services for our residents.

The existing depot is now one of the oldest amongst similar council facilities in metropolitan Adelaide. The depot is deficient in almost all key areas of operational effectiveness, safety and compliance.

Council has purchased a site at 1100 Golden Grove Road, Golden Grove and has begun design work on a modern facility to be built at this site while still setting aside the necessary funds to keep the existing depot running.

Funding has been allocated in the draft budget for 2017–2018 to progress the design work and begin refurbishment of the site.

Council rate increase forecast

This Annual Business Plan includes a recommended increase in general rate revenue that reflects the cost of providing existing services at a defined level, as well as the costings outlined in the plans (IAMPS and LTFP).

The rate adjustment takes into account the impact of increasing costs to Council from a combination of all the following factors:• Consumer price index (CPI)• Local government price Index (LGPI)• Enterprise bargaining agreements (EBs)• Increases in depreciation, maintenance and

interest expenses associated with capital works that have been carried out over recent years.

After consultation with the community, our Elected Members will determine whether the direction and focus of this plan is appropriate and to what extent our proposed initiatives and standards of service deserve community support.


59

Local government financial sustainability indicators

These are indicators that are required under the Local Government Act 1999, in order to promote greater financial sustainability and transparency in local government.

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000

Current forecast FYE 2017

$,000

Actual FYE 2016

$,000

Operating surplusThe operating surplus (deficit) before capital amounts

5,689 6,242 8,298 5,523

Operating surplus ratio (OSR)Rates (general and other) less Natural Resources Management (NRM) levy This ratio expresses the operating surplus as a percentage of general and other rates, net of NRM levy

8% 9% 11% 6%

Net financial liabilities (NFL) (including land held for resale)Net financial liabilities are defined as total liabilities less financial assets (excluding equity accounted investments in council businesses) and including non-current assets held for sale

29,129 29,279 27,670 23,838

Net financial liabilities ratio (NFLR) (including land held for resale)Total operating revenue less NRM levy

32% 33% 31% 28%

Net financial liabilities (excluding land held for resale)Net financial liabilities are defined as total liabilities less financial assets (excluding equity accounted investments in council businesses) and excluding non-current assets held for sale

29,129 29,279 28,180 24,645

Net financial liabilities ratio (NFLR) (excluding land held for resale)Total operating revenue less NRM levy

32% 33% 31% 29%

Interest cover ratio Net interest expenseTotal operating revenue, less NRM levy and less investment income

1.7% 2.2% 1.5% 1.9%

Asset sustainability ratio (ASR) Net asset renewalsNet asset renewal expenditure is defined as net capital expenditure on the renewal and replacement of existing assets and excludes new capital expenditure on the acquisition of additional assets

109% 108% 109% 106%

Fiscal balanceNet lending position on net borrowing requirement in uniform presentation of finances

(949) (4,295) (3,680) 6,239


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Notes on financial indicators

1. Operating surplus

An operating surplus occurs when the operating revenue is more than the operating expenses for the period. An operating deficit occurs when revenue is less than expenses. Our projection indicates that in 2017–2018 operating revenue will exceed operating expenditure. This year we expect to deliver a modest surplus of $5.689 million, in line with the targets set out in the LTFP.

2. Operating surplus ratio (OSR)

The operating surplus ratio is the operating surplus or deficit expressed as a percentage of general and other rates, excluding rate rebates and revenues from the NRM levy. Our OSR is within the target of our Financial Sustainability Policy.

3. Net financial liabilities ratio (NFLR)

The NFLR is the net financial liability expressed as a percentage of total operating revenue excluding Water Catchment/NRM levy income.

We have a NFLR target of 0% to 50%. The target of 50% and budgeted result of 32% for 2017–2018 are within the Local Government Association’s target of 100%.

Our LTFP provides the framework to reduce our net financial liabilities over the forecast period. This reduction will, in turn, return the NFLR to a level within our target range.

Strategies that have been, and will continue to be, considered to reduce debt include a longer- term reduction in capital expenditure. Target NFLR ranges have been set within our LTFP and will be reviewed annually to make sure the targets remain appropriate.

4. Asset sustainability ratio (ASR)

This ratio indicates whether a council is renewing or replacing existing non-financial assets at the same rate that its overall stock of assets is wearing out (being depreciated). It is calculated by measuring capital expenditure on asset renewal or replacement, relative to the recorded rate of depreciation of the assets for the same period.

We have invested significantly in the renewal of our non-financial assets over the last five years, delivering capital works of $75 million. Our 2017–2018 budget includes capital renewal works of $15.360 million (excludes any grant income and sale of assets) This represents an ASR of 109%, which is within our target range as specified in the LTFP.

We have reviewed the IAMPs in the context of the LTFP and have considered strategies to help us maintain performance within the targeted range. We will also continue to review the ASR target range to ensure the set targets remain appropriate.

Budget components

Our annual budget is made up of various components:

• Income statement

• Balance sheet

• Capital budget (as outlined in Section 4: ‘Project priorities for the year’)

• Cash flow statement

• Statement of changes in equity.

These will be explained in the following pages.


61

Analysis of operating budgetBudgeted Income Statement For the financial year ended 30 June 2018

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000


$,000

Actual FYE 2016

$,000

Income

Rates 76,227 73,541 73,625 71,247

Statutory charges 2,887 2,466 2,605 2,884

User charges 3,734 3,767 3,454 3,967

Grants and subsidies 6,022 7,828 9,024 5,943

Investment income 130 130 130 174

Reimbursements 72 66 114 47

Other revenues 1,166 1,127 1,553 1,539

Total revenues 90,238 88,925 90,505 85,801

Expenses

Employee costs 35,661 35,361 34,024 32,728

Materials, contracts and other expenses 34,173 33,253 34,630 33,917

Finance charges 1,273 1,618 1,052 1,162

Depreciation 13,442 12,451 12,451 12,471

Total expenses 84,549 82,683 82,207 80,278

Operating surplus/(deficit) before capital 5,689 6,242 8,298 5,523

Net gain/(loss) on disposal or revaluation of assets

– – 93 (130)

Capital grants 3,243 2,345 3,357 603

Physical resources received free of charge 255 255 255 292

Net surplus/(deficit) resulting from operations

9,187 8,842 12,003 6,288


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Operating revenue

1. Rates

For 2017–2018 our total rate revenue is projected to be $76.2 million. This is an increase of $2.686 million (or 3.6%) over the previous year. This figure includes a 5% increase in the Natural Resources Management (NRM) levy.

We propose a general rate increase of 2.7% for 2017–2018. This is based on the cost of maintaining existing services and the projected costs included in IAMPs and the LTFP.

Our minimum rate will need to increase by 2.7% to $1,150 for 2017–2018.

In addition, we expect to receive up to a 0.7% increase in rates revenue due to new developments, subject to confirmation from the Valuer-General.

Council’s differential rating system was fully implemented in 2014–2015. A total of 12.31% of our general rate revenue will be derived from our commercial, industrial and vacant land use, with the remaining 87.69% of rate revenue to come from residential, primary production and other land use.

2. Statutory charges

Statutory charges are fees for regulatory services, such as permits and licences, or the regulation of an activity. They include Development Act fees, parking fines and dog registration fees.

The amount for these fees is set by the State Government. Notification of these fees is provided annually in July.

3. User charges

User charges are fees that relate mainly to the recovery of the costs of delivering some of Council’s services. These are fees charged for the use of community facilities and recreation centres.

User charges in 2017–2018 are projected to decrease by $33,000 compared with the previous year. The fees and charges review recommended increases as necessary to offset rising delivery costs associated with these services.

4. Grants and subsidies

This item includes grants and subsidies from all sources, except amounts received specifically for new or upgraded assets. Total grant revenue is budgeted to decrease by $1.806 million to

$6.022 million.

5. Investment income

Interest earned on funds invested is estimated to be $130,000 in 2017–2018. This sum will be offset against borrowings.

6. Reimbursements

Reimbursements are payments for work Council has performed as an agent for others; for example, employee services we have provided to other councils. We estimate a reimbursement revenue of $72,000 in 2017– 2018.

7. Other revenues

This is revenue not classified in items 1 to 6 above. Of the estimated $1.166 million of other revenue projected for 2017–2018, $390,000 is for estimated workers’ compensation insurance rebate and $200,000 is the estimated amount for sickness and accident reimbursements.

Operating expenses

8. Employee costs

Employee costs include all labour-related expenses, such as wages, salaries, and on- costs (allowances, leave entitlements and employer superannuation).

Employee costs are budgeted to increase by $300,000 (1.0%). This is less than our enterprise bargaining agreement, as well as employee grade increments.

Over the last five years Council has achieved economies by reducing payroll costs. This has included a significant reduction in our full-time equivalent (FTE) number of employees.

In 2017–2018 we have provided for a total 388 FTE employees in the budget. This represents no change to the number of FTEs in comparison to financial year 2016–2017.

We allocate employee costs directly related to capital projects separately within the capital budget. These represent an additional sum of $1.5 million.

9. Materials, contracts and other expenses

Materials are physical goods, such as consumables, water and energy. Contractual services are payments for external service providers, including labour, materials or subcontractors who are hired under contract.


63

Other expenses are those other than the costs of employees, materials and contractual services.

We forecast the cost of materials, contractual services and other expenses to increase by $920,000 in 2017–2018.

The budget allows for a number of key known cost pressures for 2017–2018.

We have been able to absorb these cost pressures through adopting a tighter spending approach in other areas.

10. Finance charges

Finance charges are the costs of financing our activities through borrowings or financial leases. We forecast a reduction of finance charges to $1.273 million in 2017–2018.

11. Depreciation

In 2009 we moved to consumption-based depreciation (CBD) to depreciate most of our assets.

CBD is an accounting method that more accurately records the pattern of asset use than traditional straight-line depreciation. Typically, under CBD, less depreciation is calculated at the beginning of an asset’s life and more at the end.

In 2017–2018 our depreciation expense is forecast to be $13.442 million, representing an increase of $991,000.


64

Net outlaysNotes to and forming part of the financial statements For the financial year ended 30 June 2018

Uniform presentation of finances

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000


$,000

Actual FYE 2016

$,000

Income Operating revenues

90,238

88,925

90,505

85,801

Expenses Less operating expenses

(84,549)

(82,683)

(82,207)

(80,278)

Operating surplus/(deficit) before capital amounts

5,689

6,242

8,298

5,523

Less net outlays on existing assets

Capital expenditure on renewal and replacement of existing assets

15,360

16,737

17,886

15,170

Less depreciation, amortisation and impairment (13,442)

(12,451)

(12,451)

(12,471)

Less proceeds from sale of replaced assets (724) (1,000) (1,000) (1,950)

Total net outlays on existing assets 1,194 3,286 4,435 749

Less net outlays on new and upgraded assets/changes in assets

Capital expenditure on new and upgraded assets

9,197

10,737

11,796

1,844

Less amounts specifically for new or upgraded assets

(3,243)

(2,345)

(3,357)

(603)

Less proceeds from sale of surplus assets (510) (1,141) (896) (2,156)

Total net outlays on new and upgraded assets

5,444

7,251

7,543

(915)

Net lending/(borrowing) for financial year (949) (4,295) (3,680) 5,689


65

1. Net outlays on existing assets

We will allocate $15.360 million for the renewal of existing assets. We aim to keep our level of spending in line with the IAMP forecasts.

2. Net outlays on new and upgraded assets

We will allocate $5.197 million to new and upgraded assets with a further $4 million to be set aside for the new service centre project.

We will factor the ongoing maintenance and depreciation expenses associated with capital expenditure on new and upgraded assets into our future budgets and updates of the LTFP.

Financing strategy

We have determined that borrowings will increase marginally in 2017–2018. Our borrowings are projected to increase by $949,000 in comparison to the current forecast.

Further financial information

The following pages provide information on:• Cash flow statements• Balance sheet• Statement of changes in equity.


66

2017–2018 financial budget informationBudgeted cash flow statement For the financial year ended 30 June 2018

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000


$,000

Actual FYE 2016

$,000

Cash flows from operating activitiesReceiptsOperating receipts 89,874 88,665 90,375 86,128

Investment receipts 130 130 130 174

PaymentsOperating payments to suppliers and employees 69,341 68,241 68,704 66,355

Finance payments 1,273 1,618 1,052 1,162

Net cash provided by (or used in) operating activities

19,390 18,936 20,749 18,785

Cash flows from investing activitiesReceiptsGrants specifically for new or upgraded assets 3,243 2,345 3,357 603

Sale of replaced assets 724 1,000 1,000 1,950

Sale of surplus assets 510 1,141 896 2,156

PaymentsExpenditure on renewal/replaced assets 15,360 16,737 17,886 15,170

Expenditure on new/upgraded assets 9,197 10,737 11,796 1,844

Net cash provided by (used in) investing activities

(20,080) (22,988) (24,429) (12,305)

Cash flows from financing activitiesReceiptsProceeds from borrowings 949 7,000 7,000 15

New borrowings required – – – –

PaymentsRepayment of borrowings – 2,705 3,320 10,228

Repayment of finance lease liabilities – – – 74

Net cash provided by (used in) financing activities

949 4,295 3,680 (10,287)

Net increase/(decrease) in cash held 259 243 – (3,807)

Cash and cash equivalents at beginning of reporting period

199 4,006 199 4,006

Cash and cash equivalents at end of reporting period

458 4,249 199 199


67

Budgeted balance sheetFor the financial year ended 30 June 2018

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000


$,000

Actual FYE 2016

$,000

AssetsCurrent assetsCash and cash equivalents 458 4,249 199 199

Trade and other receivables 8,044 4,461 7,810 7,810

Non-current assets held for sale – – 510 807

Inventories 145 169 145 145

Total current assets 8,647 8,879 8,664 8,961

Non-current assetsFinancial assets 101 102 101 101

Infrastructure, property, plant and equipment 1,435,734 1,417,461 1,425,088 1,409,108

Other non-current assets 713 340 713 713

Total non-current assets 1,436,548 1,417,903 1,425,902 1,409,922

Total assets 1,445,195 1,426,782 1,434,566 1,418,883

LiabilitiesCurrent liabilitiesTrade and other payables 16,927 12,792 16,434 16,434

Borrowings 691 670 691 691

Provisions 3,137 2,939 3,137 3,137

Total current liabilities 20,755 16,401 20,262 20,262

Non-current liabilitiesBorrowings 16,233 21,016 15,284 11,604

Provisions 788 741 788 788

Total non-current liabilities 17,021 21,757 16,072 12,392

Total liabilities 37,776 38,158 36,334 32,654

NET ASSETS 1,407,419 1,388,624 1,398,232 1,386,229

EquityAccumulated surplus 362,289 350,335 350,286 350,286

Year to date 9,187 8,842 12,003 –

Asset revaluation reserve 1,030,921 1,024,425 1,030,921 1,030,921

Other reserves 5,022 5,022 5,022 5,022

Total equity 1,407,419 1,388,624 1,398,232 1,386,229


68

Budgeted statement of changes in equityFor the financial year ended 30 June 2018

Budget FYE 2018

$,000

Original budget

FYE 2017 $,000


$,000

Actual FYE 2016

$,000Accumulated surplusBalance at end of previous reporting period 362,289 350,335 350,286 343,998

Net result for year 9,187 8,842 12,003 6,288

Transfers between reserves – – – –

Balance at end of period 371,476 359,177 362,289 350,286

Asset revaluation reserveBalance at end of previous reporting period 1,030,921 1,024,425 1,030,921 1,030,921

Gain on revaluation of infrastructure, property, plant and equipment

– – – –

Balance at end of period 1,030,921 1,024,425 1,030,921 1,030,921

Other reservesBalance at end of previous reporting period 5,022 5,022 5,022 5,022

Transfers between reserves – – – –

Balance at end of period 5,022 5,022 5,022 5,022

Total equity at end June 2014 1,407,419 1,388,624 1,398,232 1,386,229


70


71

WHAT THIS ANNUAL BUSINESS PLAN AND BUDGET MEANS FOR RATES

How we set ratesWhen we set rates, our main point of reference is our newly adopted Strategic Plan 2020.

We also consider the current economic climate, including the outlook for inflation and unemployment, our debt reduction strategy, legislative changes, and the need to manage, maintain and improve our community’s physical infrastructure.

We carefully consider the impact of rate rises on our ratepayers and recognise the importance of striking a balance between sharing the rate burden fairly among ratepayers and factoring in changes in the valuation of residential, vacant land, commercial, and industrial properties.

It is our policy to make sure that rents and leasing payments on our properties are not prohibitive for community groups and sporting bodies, who are the lifeblood of a vibrant community. For this reason, we may also offer concessions on rates.

Rating reviewIn 2011 we undertook comprehensive rates modelling and analysis of rating strategies and the likely impact on ratepayers of alternative rating systems.

In November 2011 we decided to undertake community consultation, as required by Section 151 of the Local Government Act 1999, regarding a proposal to implement a differential rating system. The purpose was to make sure that any new approach to rates would be fair and equitable across the whole community, and that it would at the same time generate the income needed to achieve our strategic objectives and agreed service standards. After consulting with the community, we decided in

February 2012 to adopt differential general rates as from 1 July 2012.

The review we undertook confirms that our rating strategy and structure rank highly against the principles of taxation and that the new rating structure and rate revenue contribution methodology complies with and exceeds our legislative requirements. This also ensures that our contribution methodology is considered best practice.

Differential ratesHaving a differential rating strategy provides us with increased flexibility to accommodate movements in valuations that regularly occur in the market. This method allows us to raise rates at different levels to ensure that commercial and industrial sites continue to contribute appropriately to services that we provide, even though property market valuations in any category may fluctuate.

Definitions of land uses are prescribed by regulation and are categorised as follows for rating purposes:• Residential• Commercial – shops• Commercial – office• Commercial – other• Industrial – light• Industrial – other• Primary production• Vacant land• Other.

Differential rates better reflect consumption of our services but can also be tailored to support other key objectives, such as economic or capital development, or to recognise the value of a specific


72

aspect of land use. The differential rating strategy addresses all of our rating objectives.

Apart from the more obvious services that benefit our whole community, such as the maintenance of over 600 parks and reserves, footpaths, road maintenance and traffic management, we provide many other community, recreational, health and environmental services.

The entire community, including our commercial and industrial ratepayers, benefit from the many services and regulatory processes that we administer.

Examples of our commitments to business and economic development can be seen in our support for the following initiatives.

National Broadband Network (NBN)

We continue to support the roll-out of high-speed broadband to properties in our City and continue to run digital literacy programs.

Small business advisory services

Council is committed to deliver small business advisory services to business owners, business intenders and entrepreneurs in our City. To enable this we are undertaking a procurement process to provide these services which will be finalised by 30 June 2017.

Economic development

Ongoing high-level lobbying of federal and state government agencies to include our Council in economic development programs.

Land use zoning and urban development

We ensure that our Development Plan and development assessment processes support business growth through a range of initiatives including:• Delivery of the Modbury Precinct Activation

Strategy to support increased residential, commercial, retail and population growth; for example in the Modbury Precinct commencing upgrades to Civic Park, Reservoir Road and new planning policies which support growth

• A review of centres, commercial and light industry zones to ensure they support existing business needs and emerging industry trends

• Introducing an advisory service for small

businesses to streamline development approval processes for local businesses starting up or expanding in our City

• Streamlining development assessment processes and providing urban design advice for development applications in the Modbury Precinct.

Tourism and events

We support tourism and attract visitors to our City through a number of initiatives including:• A program of events and event sponsorship

including community carols, outdoor cinemas, Australia Day celebrations and an ANZAC Day service attracting almost 90,000 people

• Sponsorship of high-profile events including the State Theatre production of Secret River as part of the Adelaide Festival. This production attracted many international and interstate visitors to our City.

Although some of these initiatives and services may not yet be self-evident, all ratepayers will ultimately gain from the benefits they will bring.

In relation to vacant land, we have numerous sites scattered throughout the suburbs that are vacant (i.e. unimproved). The differential rate will encourage the development of these vacant properties.

Differential rating

The differential rating methodology is an integral component of our overall rating strategy. This method assists us to achieve our rating objectives, by:• Ensuring equity in rate distribution across the

community by minimising inequitable shifts in rate responsibility

• Reducing the impact of property valuation fluctuations while raising an equitable

• Capital level of contribution from each land use sector; maintaining equity within diverse communities and between communities

• Recognising that communities where there is a greater consumption of services and resources rank more highly according to the principles of taxation.

We believe the achievement of our rating objectives, as described above, justifies our choice of the differential rating methodology.


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The table below shows the valuations and rates applied to the various land use categories and also the general revenue forecast for 2016–2017. Note: these figures do not show rebates. In 2017–2018 we estimate we will provide $1.4 million in rebates.

The majority of these rebates are mandatory, as required under the Local Government Act 1999. Further details of our rebates are included on page 81.

Land use General rate

revenue 2016–2017

$M

Valuation 2016–2017

$M

General rate

revenue 2017–2018

$M

Valuation 2017–2018

$M

General rate

revenue % income

2017–2018Commercial office 0.36 58 0.42 69 0.58%

Commercial other 2.157 351 2.193 368 3.02%

Commercial shop 5.492 895 5.616 942 7.73%

Industrial light 0.169 27 0.16 27 0.22%

Industrial other 0.583 95 0.55 91 0.76%

Other 0.631 153 0.65 162 0.89%

Primary production 0.348 84 0.34 85 0.47%

Residential 59.273 14,391 61.4 15,325 84.5%

Vacant land 1.215 148 1.3 164 1.79%

Total 70.228 16,202 72.63 17,233 100%


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Historical ratesIn 2012–2013 we declared differential rates for the first time. The following table summarises the rate in the dollar and minimum rate in comparison to previous years for each of the rating categories.

Year 2011–2012 2012–2013 2013–2014 2014–2015 2015–2016 2016–2017 2017–2018Minimum $980 $980 $1,024 $1,064 $1,092 $1,120 $1,150

Minimum rate valuation threshold

$282,750 $259,390 $257,132 $260,112 $268,300 $274,011 $289,507

Rate in $Residential $0.003466 $0.00377813 $0.00398239 $0.00409054 $0.00407001 $0.00408742 $0.00397226

Commercial office

$0.003466 $0.00453376 $0.00557535 $0.00613581 $0.00610502 $0.00613113 $0.00595839

Commercial other

$0.003466 $0.00453376 $0.00557535 $0.00613581 $0.00610502 $0.00613113 $0.00595839

Commercial shop

$0.003466 $0.00453376 $0.00557535 $0.00613581 $0.00610502 $0.00613113 $0.00595839

Industrial light

$0.003466 $0.00453376 $0.00557535 $0.00613581 $0.00610502 $0.00613113 $0.00595839

Industrial other

$0.003466 $0.00453376 $0.00557535 $0.00613581 $0.00610502 $0.00613113 $0.00595839

Other $0.003466 $0.00377813 $0.00398239 $0.00409054 $0.00407001 $0.00408742 $0.00397226

Primary production

$0.003466 $.00377813 $0.00398239 $0.00409054 $0.00814002 $0.00408742 $0.00397226

Vacant $0.003466 $0.00566720 $0.00696918 $0.00818108 $0.00814002 $0.00817484 $0.00794452


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During the same period, the increase in our community’s wealth has occurred mainly in the residential sector, driven by an increase in residential valuations. The following table shows the changes in rate revenue and valuation over the past five years.

Rate revenue and variationsYear 2011–

20122012– 2013

2013– 2014

2014– 2015

2015– 2016

2016– 2017

2017– 2018

Total valuation ($M) 16,254 15,686 15,659 15,934 16,403 16,851 17,233

% increase (decrease) in total valuation

6.3% (3.4%) (0.17%) 1.7% 2.96% 2.73% 6.4%

General rate revenue ($M)* 54.80 58.60 62.80 66.43 68.10 70.20 72.63

% increase in general rate revenue*

7.2% 6.9% 7.1% 5.8% 2.7% 2.5% 2.7%

Minimum rate $980 $980 $1,024 $1,064 $1,092 $1,120 $1,150

% increase in minimum rate 6.5% Nil 4.5% 3.9% 2.7% 2.5% 2.7%

*Prior to allocation of rebates.

Our primary source of income is Council rates, which make up 84% of our annual income.

Our forecast sources of revenue for 2017–2018 are shown in the following pie chart.

Total revenue $90 million

Fees 6rn7%

Other 8rn9%

Rates 76rn 84%


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Average residential rateOur average residential rate for 2016–2017 was $1,498. It is estimated that the average residential rate in 2017–2018 will rise to $1,535 which represents a 2.5% increase on the previous year.

Method used to value landThe South Australian Valuer-General establishes the value of land in our City for rating purposes. The basis for valuation is the capital value of the land, including all improvements such as buildings and sheds. We believe this is the fairest way of distributing the rates burden across all ratepayers for the following reason:• The equity principle of taxation requires that ratepayers of similar wealth pay similar taxes, and ratepayers of

greater wealth pay more tax than ratepayers of lesser wealth. Property value is a fair indicator of wealth.

We have adopted the valuations that the Valuer-General provided on 30 June 2017. If a ratepayer is dissatisfied with their valuation, they can object to the Valuer-General in writing, within 60 days from the date of their rates notice.

Trends in valuations and rate modellingEach year, as part of our review of rating policy, anticipated movements in valuations are obtained for each rate category. The valuation trends for 2017–2018 reflect the impact of the subdued property market and indicate that valuations will generally experience only slight movement across all property groups.

A shortage of residential properties across all valuation levels is still considered to exist and we have also seen a low level of new housing construction. Ongoing constraints on housing finance and lower levels of consumer confidence continue to affect sale values in the residential sector however, a minor upswing occurred during 2017.

Valuations are anticipated to remain fairly steady, with some areas experiencing minor increases and others minor decreases for 2017–2018. We have been advised by the Valuer-General that the average increases of approximately 2.73 per cent will apply in most areas. This information is subject to change prior to the end of the financial year.


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Council has undertaken comprehensive rate modelling to assess the likely impact within each land category based on anticipated valuation movements prior to the adoption of the final Annual Business Plan.

Advice from the Valuer-General tells us that commercial and industrial property sales have increased slightly which is mainly due to property improvements.

Vacant land valuations have seen some areas experiencing minor increases and others minor decreases for 2017–2018. An average increase of approximately 2.7 per cent is evident.

Primary production property valuation movements are uneven, with some areas experiencing minor increases and others minor decreases for 2017–2018. There has been an overall average increase of approximately 0.1 per cent across this sector.

The table below provides details for the residential valuation changes by suburb.

Suburb FYE 2017 FYE 2018No.

properties% change of

valuationNo.

properties% change of

valuationBanksia Park 1,308 2.3% 1,321 6.86%Dernancourt 1,461 2.6% 1,488 10.88%Fairview Park 1,440 2.8% 1,445 8.16%Gilles Plains 598 5.1% 599 6.46%Golden Grove 4,022 2.3% 4,028 6.90%Gould Creek 16 1.8% 15 2.05%Greenwith 3,773 4.9% 3,769 5.67%Gulfview Heights 16 1.9% 16 7.45%Highbury 2,584 2.3% 2,590 8.16%Holden Hill 1,210 4.2% 1,214 5.86%Hope Valley 2,835 3.4% 2,852 7.89%Houghton 26 1.9% 26 2.40%Modbury 2,023 2.4% 2,086 6.19%Modbury Heights 2,677 2.0% 2,687 6.19%Modbury North 2,257 2.5% 2,265 5.99%Paracombe 8 2.2% 8 1.82%Redwood Park 2,123 2.5% 2,128 3.01%Ridgehaven 1,651 2.8% 1,683 4.64%St Agnes 1,719 3.2% 1,737 6.24%Surrey Downs 1,349 1.8% 1,353 5.72%Tea Tree Gully 1,358 4.0% 1,373 6.41%Upper Hermitage 30 1.5% 31 4.44%Valley View 558 2.0% 558 2.27%Vista 406 5.1% 408 5.46%Wynn Vale 3,114 1.9% 3,130 4.89%Yatala Vale 79 4.7% 82 2.29%Total 38,611 2.7% 3,882 6.47%


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GrowthProperty valuations can increase or decrease if the land use of the property changes — for example, from residential to commercial — or if there has been any development on the property, including renovations. The change in valuation associated with these changes is referred to as ‘growth’.

In 2017–2018 the changes in valuation due to growth is estimated to amount to about $500,000 of additional rate revenue (growth income), an increase of 0.7%.

Council’s revenue-raising powersCouncil can charge rates on all land in its area except for exempt land; this includes Crown land, council-owned land and other land as prescribed in the Local Government Act 1999 (refer Section 147).

The Act allows a council to raise revenue for its provision of services and facilities through a general rate, which applies to all rateable properties, or by applying differential general rates to all classes of properties.

A council can also raise separate rates for specific areas, services or charges.

A council can raise revenue through the setting of fees and charges after considering the cost of the service provided and equity issues. We list the applicable fees and charges on our website.

The impact of ratesIn 2017-2018 our total general rate revenue (excluding growth) will rise by 2.7%.

The following table shows the impact on types of properties and the number of properties that fall within selected percentage changes.

Rate increase Residential properties

Less than zero 2,872

0–2% 8,683

2–2.27% 7,530

2.7–3% 6,534

3–4% 2,602

4–5% 4,404

5–6% 3,612

Rate increase Residential properties

6–10% 1,979

Greater than 10% 604

Total 38,820

In 2017–2018 the differential above the residential rate in the dollar for the following land uses will be:• Commercial – 50%• Industrial – 50%• Primary production – same rate as residential• Vacant land – 100%• Other – same rate as residential.

As part of the valuation process, the Valuer-General applies a land use to each assessment to identify the main use of the land. As a ratepayer you may apply to Council for a review of this assessment if you think a property has been wrongly classified in terms of its land use.

Minimum rateWe believe it is fair that all rateable properties contribute to the cost of administering our activities, creating and maintaining the infrastructure accessed by every property, and providing all of the services used by our community.

The minimum rate is charged against the whole of an allotment. This means that if you own and occupy contiguous land – that is, two or more pieces of adjoining land, even if they are separated by a road – we levy only one minimum rate.

Independent living units in a retirement village are exempt from paying the minimum rate under section 158 of the Local Government Act 1999.

We are proposing a minimum rate increase of 2.7% making this $1,150 for 2017–2018.

The following graph shows the minimum rates in some Adelaide metropolitan councils for the 2016– 2017 financial year.


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Natural Resources Management (NRM) levyWe collect a regional NRM levy on all rateable properties on behalf of the regional NRM Board. The Board uses the levy to manage and protect our state’s priority water, land, marine and biodiversity assets.

Note that we do not keep this money and we do not determine how it is spent. We collect the levy by imposing a separate rate against all our rateable properties, with the NRM Board advising us what the rate will be at the end of each financial year.

Community wastewater management system conversionsIn 2001–2002 a program was started to convert some properties from Council’s community wastewater management system (CWMS) to SA Water’s sewerage system. If you own one of these properties, in addition to paying SA Water for their services, you are legally obliged to pay a separate rate to Council for the CWMS. This rate was approved by the Minister for Local Government, and will be charged until the capital cost of the conversion is repaid. The separate rate for 2017–2018 will be $400.

Community wastewater management system service rate/chargeOur community wastewater management system (CWMS) services 4,588 properties (4,499 – 2016). For 2017–2018 we have budgeted $2.6m ($2.46m in 2016) to operate, maintain and improve this system. This figure may be subject to change based on SA Water charges which will be announced prior to the adoption of this Annual Business Plan.

This sum includes an allowance for the replacement of the physical infrastructure used to provide the service. It will be funded by a service fee for each connected property unit, and also for each unconnected property unit that uses the system. If your property is connected to the CWMS system and is next to the SA Water sewer mains (meaning you are also paying SA Water rates), this fee will be reduced.

If you are receiving the CWMS service on non- rateable land, a service charge will be levied against the land. Our rates team can provide more information about the CWMS scheme, including details of what constitutes a service charge. The charges for a connected service in FYE 2018 is $575 and in FYE 2017 was $545.


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The service charges for a unconnected charge or reduced charge in FYE 2018 is $400 and in FYE 2017 was $380.

Rate concessionsState Government concessions including the separate concession entitlements for community wastewater schemes (CWMS) until recently were funded by the State Government. These concessions were formerly available to the holders of pensioner concession cards, veterans, low-income earners, unemployed, students, and self- funded retirees. These concessions were all abolished by the State Government with effect from 30 June 2015, CWMS concessions from 1 July 2017. From 1 July 2015, the State Government elected to replace these concessions with a single “cost-of-living payment” provided directly to those entitled. This payment may be used to offset council rates. Note that not all former recipients of rates concessions will be entitled to the new payment. To check eligibility, contact the Department for Communities and Social Inclusion (DCSI) concessions hotline 1800 307 758 or at www.sa.gov.au.

Payment of ratesAnnual rates are split into four equal instalments, each of which is due on the first business day of September, December, March and June. We provide a range of payment options.

Our Chief Executive Officer also has the authority to enter into special agreements with ratepayers on the payment of rates when needed.

If you are having difficulty paying your rates, we encourage you to contact our Customer Relations team to discuss payment options. All such enquiries are kept confidential.

Postponement of ratesIf you hold a Seniors Card or are experiencing hardship paying your rates, you can apply to postpone payment. The criteria for eligibility are listed below.

Applications are assessed on a case-by-case basis and they are not dependent on the level of increase in rates payable. All applications are confidential and the information is only shared with those who need to know in order to assess the application.

Once an application is approved, the postponement takes effect from the first day of the next instalment period following the date of application; that is, the first day of September, December, March or June.

If you have a postponement agreement, you must advise us in writing within 14 days of any change to your circumstances. Such changes might include:• Change of ownership• Change of occupation• Alterations or improvements to the property• Division of land• Change in financial circumstances.

We conduct periodic audits of eligibility to confirm ongoing entitlement.

If you apply for a postponement, you must also show us that you have advised relevant interested parties of your intention. These include mortgage holders, insurance companies and beneficiaries.

The amount and the time frame for postponement is at the discretion of the Chief Executive Officer.

All applications for postponements must be from the principal ratepayer, in writing, on Council’s approved form, addressed to the Chief Executive Officer, City of Tea Tree Gully, 571 Montague Road, Modbury SA 5092, and include sufficient details to identify the relevant property and support the application. All information provided will be kept confidential.

Postponement – Seniors CardUnder Section 182A of the Local Government Act 1999, if you hold a State Government Seniors Card you can apply to postpone part of your council rates on a long-term basis. The deferred amount will still incur a monthly interest charge, and the accrued debt will become payable when your property is sold or disposed of. In this way, postponement is similar to a reverse mortgage.

As a state Seniors Card holder, you can only apply for postponement if:• The property is your main residence• No other person other than your spouse has an

interest as owner of the property• There is an appropriate level of equity in the

property.

To find out more or ask for an application form, please phone us on 8397 7444.


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Postponement – hardshipUnder Section 182 of the Local Government Act 1999, you can apply to postpone your rates if payment would cause you hardship. You will need to meet the following criteria:• We are satisfied that the hardship is proven• You agree to pay interest on the amount at the

cash advance debenture rate, calculated monthly and published by the Local Government Finance Authority for 1 July each year

• The property is your principal residence and is the only property you own

• You have owned the property and used it as your principal residence for more than five years

• You can produce your Pensioner Concession Card from Centrelink or Veterans’ Affairs or a TPI card from Veterans’ Affairs; or can show that you are a self-funded retiree with a household income of less than $30,000 a year.

Rebates of ratesRebates – mandatory, under Section 159–165 of the Act

Under Sections 159–165 of the Local Government Act 1999 we are required to grant rebates to certain properties, including those that meet the Act’s requirements for land used for religious or educational purposes, or for community uses, as specified in the Act. These rebates vary from 75% to 100%.

Rebates – discretionary, under Section 166 of the Act

Section 166 of the Local Government Act 1999 sets out the circumstances in which we can grant discretionary rebates of up to 100%.

We have the option to grant a rebate of rates or service charges; to determine the rebate amount we take into account the following factors:• The rebate is desirable for the purpose of securing

the proper development of the area• The rebate is desirable for the purpose of

assisting or supporting a business in its area• The rebate relates to common property or land

vested in a community corporation under the Community Titles Act 1996 over which the public has a free and unrestricted right of access and enjoyment.

The rebate is considered by the council to be appropriate to provide relief against what would otherwise amount to a substantial change in rates payable by a ratepayer due to:• A redistribution of the rates burden within the

community arising from a change to the basis or structure of the council’s rates; or

• A change to the basis on which land is valued for the purpose of rating, rapid changes in valuations, or anomalies in valuations.

Referring to Section 159(5) of the Act, we look at the land for which the rebate is sought and consider:• The type and number of services we provide

on the land compared with similar services we provide elsewhere in the community

• Whether a community need is met by the activities on the land

• Whether activities on the land provide assistance or relief to disadvantaged people.

We may also take into account other factors, such as:• Why the applicant needs financial assistance

through a rebate• How much rebate is sought, as a percentage and

dollar amount, and why it is appropriate• How much financial assistance is being given to

that applicant by federal or state agencies and whether it applies to that land

• Whether the applicant has applied or will apply to another council

• Whether the applicant is or will be providing a service in our area and the extent of that service

• Whether the applicant is a public sector body, a private not-for-profit body or a private for-profit body

• Whether the applicant is gaining a financial profit for the members of the body, or is engaging in trade or commerce and therefore has the ability to distribute profit to its members

• Whether there are any historical considerations that may be relevant for all or any part of the current council term

• The financial consequences for Council of granting the rebate

• The date the application is received• The availability of any community grant to the

person or body making the application


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• Whether the applicant has received a community grant.

If you or your organisation wishes to apply for a rebate for the current rating period, you must do so by 1 September 2017. We reserve the right to not consider late applications. However, if you are eligible for a mandatory rebate, this can be granted at any time during the current rating period.

If your or your organisation’s eligibility for a rebate no longer applies, we can recover rates proportionately to the end of the current financial year.

When considering applications for rates rebates, we are mindful of the contribution ratepayers make to our City, and that profitable organisations who receive government funding may still need additional help to achieve their goals. However, we need to balance the desire to support community organisations with the impact that rebates have on our revenue.

We provide a discretionary rebate of 100% for community sporting and social groups that occupy council-owned properties, including the University of the Third Age. This supports the strategic directions (set out in our Strategic Plan) to provide and maintain a high standard of recreation and leisure opportunities for all sections of the community.

If you believe that your not-for-profit organisation is impacted adversely by our rating strategy for commercial and industrial land uses, we encourage

you to apply for a discretionary rebate. We will assess each application on its own merits.

If you are a not-for-profit land owner you may apply for a discretionary rebate on your council rates by 1 September of each year. A report summarising Council’s consideration of requests for rebates will be completed, as specified under Section 166 of the Local Government Act 1999 in October of each year.

The discretionary rebate for not-for-profit organisations will only be available to organisations that are not already receiving a rebate under Section 161.

The maximum rebate granted will be capped at the difference between the residential rate and the industrial/commercial vacant land rate.

Maximum rate increase – rate cappingRate capping helps to keep rates relatively stable from year to year. It can take the form of a rebate or remission applied to residential rates.

These rebates and remissions cap (or set a maximum value for) increases in rates when property values increase, land use changes, councils changes their rate structure, or when there are anomalies in valuations.

Council is no longer provided with the data that enables us to consider increases over the rate capping of 7% for concession holders.

571 Montague Road, Modbury 5092 PO Box 571, Modbury 5092

Telephone 08 8397 7444 cttg.sa.gov.au

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