district council of karoonda east murray annual business

Annual Business Plan & Budget

2020 - 2021

District Council of Karoonda East Murray

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The Year AHEADTable of Contents

The Year Ahead

Map of District

Planning Framework

What we achieved last year

Community Vision 2040 Key Themes

Your Elected Members

CommunitySnapshot

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343536373840

Performance Measures 2020 - 2021Non-Financial Performance Measures

Significant InfluencesSignificant Influences & Priorities

Financial Statements 2020 - 2021Uniform Presentation of Finances

Capital Projects 2020 – 2021Capital Expenditure

Financial Statements 2020 - 2021Statement of Comprehensive Income

Financial Statements 2020 - 2021Balance Sheet

Financial Statements 2020 - 2021Statement of Cash Flows

Financial Statements 2020 - 2021Statement of Equity

Funding The Business PlanGrant Funding

Financial Sustainability

Rating Arrangements 2020 – 2021

With the completion of the Community Vision 2040 over the past 12 months, Council is now able to conduct its short and mid-term planning with a view to helping deliver on the long-term aspirations of the community. This Annual Business Plan is inextricably linked to the Community Vision and shows the emphasis that Council is placing on supporting the community to grow and evolve.

It is important to note, that this ambitious Annual Business Plan is only possible due to Council being granted several external funding opportunities which mean that this coming year will see a range of special projects being completed within the community. Ordinarily, Council would not have the resources to sustain such a comprehensive program of initiatives in a normal 12-month period.

Significant initiatives will be completed in the coming year which will continue to lay the ground work for a stronger and more resilient local economy including the development of the district’s first Economic Development and Tourism Strategy, delivery of a targeted program of support, training and education for the farming sector and a refresh of visitor facing information systems and facilities.

Council will undertake a program of works with a focus on balancing road renewal projects with a more comprehensive approach to District Road Maintenance and patrol grading targeted at peak traffic volume periods such as during harvest.

This program has a target for the renewal of 24kms of unsealed roads, targeted maintenance on a further 40kms of unsealed roads and the resurfacing of several township sealed roads in Karoonda.

During the course of the year, we will also develop a Footpath Management Plan, a Roadside Vegetation Management Plan and Waste Facilities Strategy which will further assist in providing direction in future years as to the management of important community assets and services.

Council will work with Southern Mallee District Council and the Murraylands & Riverlands Landscape Board (MRLB) to deliver a comprehensive program of targeted pest and weed activities across the two council districts which will include extended roadside weed spraying, rabbit warren ripping and a number of initiatives available for landowners.

Pushing for community outcomes will be a priority, as we continue to advocate and assist with the issue of community access to the former East Murray Area School site and working with the former Wanbi Hall Committee to transition to the hall into private ownership.

The following pages of this Annual Business Plan elaborate more on the specific initiatives and projects that Council aims to complete in the coming 12 months, and we believe that this is a balanced approach to servicing the community in the short term while making progress on longer term issues.

The Year Ahead

DISTRICT COUNCIL OF KAROONDA EAST MURRAYAnnual Business Plan & Budget 2020 - 2021


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Caroline PhillipsMayor

Resides in Wynarka.

First elected to Council in 2010.

Deputy Mayor (2014 - 2018)

Mayor (2018 - current)

Email: [email protected]

Kevin Burdett OAMCouncillor

Resides in Karoonda.


Mayor (2001 to 2018)


Daryl SparksCouncillor




Yvonne Smith JPDeputy Mayor / Councillor

Resides in Bowhill.



Simon MartinCouncillor

Resides in Wynarka.



Russell NormanCouncillor




Darren ZadowCouncillor

Resides in Galga.



Your Elected Members



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The first occupiers of the area were the Ngarkat tribe, whose lands roughly extended north beyond Copeville, south towards Coonalpyn, east to near the border and west to a few miles from the river. There were no Ngarkat surviving tribally by the mid 1800’s when the pastoralists moved in, mainly due to disease and wars with neighbouring tribes.

The land was taken up for grazing sheep on huge pastoral leases from 1859, when Chucka Bend (Bowhill) Station included where Karoonda stands today. However, these leases were not successful and were abandoned by 1900.

The district was established in 1911 and its economic base is predominantly dry land agriculture, largely based on traditional broad acre grain and wool.

Origins of Our CommunityLocated only 150km from

Adelaide and 110km from Loxton, Karoonda is

referred to as “the Heart

of the Mallee”

The district was unique in that the railways were established before close settlement began. Karoonda became a very important rail town, a hub serving sidings and towns in four directions at approximately 8km intervals. There were coaling and watering facilities and workshops and a barn for railcars stationed here.

With the introduction of the railways, settlers began taking up selections, clearing the dense scrub with horse drawn rollers. By 1930 about half the arable land was cleared.

Today’s farming practices have seen significant change from the traditional practices of generations past. More sustainable practices have resulted in increased land productivity whilst protecting and enhancing our fragile natural environment.

Karoonda is the major town in the area with a population of 350. The town offers a range of services including access to aged care services, a school, pre-school, café, hospital, ambulance, CFS, grocery store, newsagency, hotel, chemist and banking via agency and eftpos. Along with a range of businesses servicing the local and rural sector.

51.8% 48.2%Population

1,090

AnnualRain Fall

290-360mm

MedianAge

48Years

Median Household Income

(weekly)

$871(SA Average $1206)

Unemployment Citizen

5.1%(SA Average 7.5%)

Land Area

4,415square kms

Gender Breakdown

Tailem Bend

Murray Bridge

Mantung

Wanbi

Mindarie

Halidon

Borrika

Lowaldie

Marama

Wynarka

Sandalwood

Mercunda

Galga

Copeville

Kalyan

Perponda

KAROONDA

Adelaide150 Kms

Loxton110 Kms



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The past 12 months have provided significant challenges for Council and community as we have emerged from at least two seasons of drought and were then faced with the impacts of a global pandemic.Despite this, Council was able to complete the Community Vision 2040 and make good head-ways into developing an Economic Development and Tourism Strategy. Significant work and review of Council's asset infrastructure base (mainly roads) was completed and a revised road hierarchy and service standards developed which has fed into the development of the Long Term Financial Plan.These are just some of the projects and initiatives that Council has delivered since July 2019:• Creation of Mallee Kids Child Care,

providing child care to the Karoonda community 5 days a week

• Reviewed and refurbished Council housing options and provided affordable access model

• Created a Youth Action Committee to work with Council on youth and community projects

• Finished Railway Terrace lawn and landscaping

• Secured $538K Funding ($270K from Council) and Project Managed Construction of new Multipurpose changerooms and community gym at Karoonda Districts Football Club

• Supported local community and businesses through COVID-19 with a range of initiatives (outreach calls, business SMS alert and facebook groups, provision of sanitary supplies, direct funding community meals and YourLocal app for takeaway food)

• Renewed of sections of Walker Flat, Wingamin and Goondooloo Roads

• Expanded District Road Maintenance program

• Implemented Stage 1 of Pest and Weeds Program

• Secured external funding: • $985K for Pest and Weeds Program• $300K for Mallee Playground Trail• $41K for Sandalwood Hall Community

Cemeteries Project• Created a new rubbish cell at the Karoonda

Landfill Site and rehabilitated old cells • Lobbied continuously for Karoonda Area

School Pool Project • Implemented new council and corporate

cloud based software solution • Created a new EMU Crossing at Karoonda

Area School • Commenced delivery of Round 2 Drought

Community Projects including: • Mallee Playground Trail • Community Facility Upgrades (Karoonda

Institute, Wynarka Rec Reserve, Karoonda Golf Club, Pioneer Park)

In summary, the past year has been a time to consolidate much of the longer term community planning that had occurred into the Community Vision 2040, while at the same time looking to leverage external funding opportunities to deliver better facilities for members of the community.

What we achieved last year



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Planning Framework

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The community’s long term aspirations and goals encapsulated and summarised in document form.

Annual Business Plan and Budget which sets annual works program, performance measures and the annual budget.

Council’s objectives over a 4 year forward planning cycle including

Long Term Financial Management Plans and Infrastructure and Asset

Management Plans.

These plans will be developed with reference to the overarching

Community Vision 2040.

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Council’s Strategic

Management Plan

Community Vision2040

Council’s Annual Plan



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We will have developed our people and infrastructure, exploited opportunities and worked relentlessly to create a sustainable future for all our citizens.

Open spaces and the natural environment will have been enhanced to foster healthy lifestyles and recreational activities.

Residents of Karoonda East Murray will have an enviable lifestyle and the district will be heralded as a place where people want to live, work, rest, visit and play.

These six key themes embody the values of our community and will be used as the basis to shape our future.

Community Vision 2040

By the year 2040, we will be a thriving,

prosperous, innovative

and connected community.

ProsperousLiveable

Connected

Opportunistic

Active

Eco- Friendly

KEY THEMES

The following pages list the non-financial performance measures for Council for the 2020-2021 year, grouped under the relevant Community Vision theme, showing that Council’s short term actions are stepping towards realising the community’s long term goals.



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PROSPEROUS

Key Service Areas• Karoonda Tourist Park• Tourism Development & Attractions• Visitor Information Systems• Economic Development Activities• Investment Attraction• Local Business Events, Training and Support

Key Objectives

• Complete the development of Economic Development & Tourism Strategy

• Redevelopment of karoonda.com, tourist park bookings and visitor information systems

• Increased promotion of the Karoonda township and broader district

• Provide support for industry and investment attraction activities• Strengthen ties between Council, Mallee Business Association

and local agricultural businesses• Identify funding opportunities for local business initiatives and

training

What we aim to achieve in 2020 -2021

Projects

Project Name DescriptionExpenditure $’000s

Grants/Contributions $’000s

Drought Support & Resilience Project A one-off program to deliver a range of events and activities targeted at our farming community to enhance farm business management, land management and physical and mental health. 210 (210)

Toilet Block Refurb Refurbishment of public toilet block at Apex Park (adjacent green shed) for use by visitors, free campers, Karoonda Farm Fair and sports attendees. 120 (120)

Total 330 (330)

14 15DISTRICT COUNCIL OF KAROONDA EAST MURRAYAnnual Business Plan & Budget 2020 - 2021


LIVEABLE

Key Service Areas

Projects

• Develop a Disability Access and Inclusion Plan (DAIP)• Create relevant and appropriate By-laws• Deliver a balanced capital works program focusing on renewal and maintenance• Provide a good quality early childhood education and care service 5 days a week• Align gazettal status of road network with current heavy vehicle road usage• Renew assets in accordance with asset managment plan• Resolve long standing memorabilia storage needs*



Unsealed Road Renewal & Maintenance Unsealed road renewal as per Asset & Infrastructure Management Plan 795 (518)

Sealed Road Renewal Resealing of various township roads (including Morris, Ponderosa and Lewis Roads) 308 (171)

Karoonda Institute Refurbishment of the Institute Building to include disability access toilet, upgraded kitchen, refreshed interior and external landscaping and fencing 152 (152)

Sealed Road Safety Project Complete linemarking and white post renewal on Kulde, Kulkami and Kulkawarra Roads 80 (80)

Karoonda Walking Trail Development of a walking trail from Railway Terrace to Ponderosa (YAC currently pending grant outcome to design the trail). (Note: further external funding will be sought with a view to increasing the total funding to $78K) 39 (39)

Memorabilia / Records Storage* Conversion of Council Garage into storage facility for historical items. 50 (50)

Karoonda Footpath Renewal Design and implement changes to Railway Terrace footpath and audit and plan for township footpaths. 140 (140)

Total 1,564 (1,150)

Key Objectives

• Mallee Kids Child Care• Library Services• Immunisation Services• Public Health & Safety• Community Facilities Management

• Cemetery Management• Animal Management (cats and dogs)• Asset Infrastructure Planning• Asset Infrastructure Renewal &

Maintenance




CONNECTED

Key Service Areas

Projects

Key Objectives

• Community Newsletter & Noticeboards• Community Event Management• Volunteer Management Program• Youth Action Committee

• Conduct a large community music festival• Develop a range of youth led initiatives and events with the

Youth Action Committee• Assist community groups to host a number of working bees to

enhance cemeteries and install fencing (via Sandalwood Hall• Advocate for improved telecommunications and internet

access across the district



Karoonda Festival of Sound

Hosting of a large community-based music festival in follow up to Colour Up Karoonda in conjunction with the Youth Action Committee

62 (62)

Total 60 (62)




OPPORTUNISTIC

Key Service Areas

Projects

Key Objectives

• Implement targeted initiatives to stimulate new residential development within Karoonda

• Secure community access to former EMAS site through continued advocacy• Assist with the transition of Wanbi Hall into private ownership• Provide community grant writing support for identified projects and funding

opportunities• Identify future projects of importance to Council and Community and progress

towards ‘shovel ready’ status

• Community Grant Writing Services• Community Development Activities• Land Use Planning & Development Plan Review• Development Assessment Services (Building and Planning)• Council owned residential and industrial land



Tourist Park Master Plan

Development of Master Plan for Karoonda Tourist Park and Apex Park for future development to increase visitor appeal and support increasing demand for visitor accommodation to the town. 7

Industrial Services

Installation of power and water to Lewis Road Industrial Land to increase possibility of investment / industry attraction by reducing infrastructure overheads for new development. 250 (125)

Karoonda Farm Fair Exhibition Shed

Provision of funding and project management support to the development of a new exhibition shed at Apex Park for the Karoonda Farm Fair 95 (95)

Total 352 (220)




ACTIVE

Projects

Key Service Areas

Key Objectives

• Assist Karoonda Area School with development of community access arrangements for Karoonda School Pool, including $210k funding contribution for pool reconstruction

• Support the Karoonda District Historical Society to ensure Pioneer Park is sustainably managing its historical collection

• Determine and plan for community need for memorabilia preservation and display• Renew leases on recreation reserves for key community sporting groups

• Township & Open Space Planning• Township Maintenance• Reserve & Playground Maintenance• Recreation Facilities & Maintenance• Pioneer Park (via Karoonda District Historical Society)



Mallee Playground Trail Redevelopment of three playgrounds (Karoonda, Wanbi and Wynarka) to create a ‘trail’ along the Karoonda Highway for both visitors and locals to utilise. 623 (589)

Karoonda Cemetery Installation of a public toilet and implement shed. 45 (45)

Various Community Owned Facilities Various upgrades and improvements at the Karoonda Golf Club, Wynarka Recreation Reserve and Pioneer Park 60 (60)

Tree Removal Removal of Athel Trees at Apex Park 2

Total 730 (694)




ECO-FRIENDLY

Projects

Key Service Areas

Key Objectives

• Waste & Recycling Services• Karoonda Landfill & Recycling Point• Environmental Health Services• Stormwater Harvesting• Wastewater Infrastructure & Maintenance• Fire Prevention• Roadside Vegetation Management

• Redevelop Roadside Vegetation Management Plan• Increase frequency and reach of kerbside recycling service• Create a Waste Facility Strategy incorporating future plans for Karoonda Landfill Site• Complete a review of underlying cost structures for CWMS



Pest & Weeds R1 Complete weed spraying activities identified under round 1 of the program in conjunction with Southern Mallee District Council and Loxton Waikerie District Council 136 (136)

Pest & Weeds R2 Deliver a targeted treatment program focusing on rabbits and weeds in conjunction with NRM and Southern Mallee District Council through until December 2021 657 (657)

Waste Facility Strategy Strategic review of existing waste facility, regional opportunities and plans for future use 15

Roadside Vegetation Management Plan Consultation with Native Vegetation Council to develop and seek approval for a more flexible Roadside Vegetation Management Plan 2

Sand Drift Removal Targeted sand drift removal from Council roads 37 (37)

Total 847 (830)




GOVERNANCE & ORGANISATIONAL MANAGEMENT

Projects

Key Service Areas

Key Objectives

• Develop Business Continuity Plan (incorporating ICT Disaster Recovery)

• Implement GIS data collection for road defect reporting• Implement Human Resources Action Plan• Implement WHS & Injury Management Action Plan• Develop Strategic Risk Register

• Strategic & Community Planning• Public Relations & Communications• Customer Service• Financial Services & Rates Management• Property Services• Human Resource Management• ICT, Records & Information Management• Procurement & Contractor Management• Risk & Governance• Work, Health & Safety



WHS & Risk Blitz One off resourcing to increase compliance with WHS and Risk Management via implementa-tion of new procedures and practices as per WHS & Injury Management Action Plan. 15

Total 15




Significant Influences Capital Projects 2020 – 2021

Council is renewing road assets and heavy plant in accordance with the Long Term Financial Plan and the draft Asset Management and Infrastructure Management Plan.

Project $ 000

REPLACED ASSETS:Roads / Transport:Sealed 308Unsealed 795

Plant & Machinery:2x Work Ute 90Roller 180Grader 370

Total Renewal & Replacement Expenditure 1,743

New & Upgraded Assets:Karoonda Institute 152Wynarka Recreation Reserve 2Karoonda Cemetery Toilet and Shed 45Karoonda Pioneer Park 15Karoonda Signage 6Infrastructure Stimulus (footpath upgrades, toilet upgrade, road safety, walking trail, memorabilia storage) 428

Karoonda, Wynarka & Wanbi Playgrounds (inc Wanbi Toilet) 585

Total New Asset/ Upgraded Capital Expenditure 1,272

Total Capital Expenditure 3,014

Capital EXPENDITURE

A number of significant factors have influenced the preparation of the Council’s 2020 – 2021 Annual Business Plan.

These include:

• Consumer Price Index increases on existing goods and services including increases to regional memberships and subscriptions of around 2.4% (March quarter 2020)

• Requirements to maintain and improve infrastructure assets to acceptable standards, including roads, footpaths, stormwater drainage and community wastewater management systems

• Planning service delivery needs for a decreasing population

• Diminishing State / Commonwealth grant funding for standard operating activities in the longer term.

• Increased success with obtaining State / Commonwealth grant funding for capital / infrastructure projects.

Significant INFLUENCES & PRIORITIES

External grant funding has made it possible for Council to also pursue new and upgraded community asset infrastructure as shown in the table below.

Council will continue to provide services to the community as required under the Local Government Act and other relevant legislation, including a strong focus on road asset renewal and maintenance in the 2020 - 2021 financial year.

Significant project funding will also permit special one off projects to be undertaken and provide for additional spending on community infrastructure.



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Road Works Schedule 2020 - 2021 Road Works Schedule 2020 - 2021

Project July August September October November December January February March April May June

DISTRICT ROAD MAINTENANCE (DRM)

Patrol Grading

Intensive DRM*

Harvest Grading Blitz #

CAPITAL ROAD RENEWAL

Gribble Bore Road (9.2kms CAT1)

Turners Well Road (11.0kms CAT3)

Charleson Road (4.4kms CAT2)

*Intensive DRM can include a number of maintenance activities including intensive grading, ripping, patching, capping, rolling and other treatments to unsealed roads.

# Harvest grading blitz involves increased grading routines across key commodity routes during harvest period.



Financial Statements 2020 - 2021

STATEMENT OF COMPREHENSIVE INCOME

Note Forecast 2019-20

Budget 2020-21 Variance

$,000 $,000 $,000INCOME

Rates - General & Other 1,592 1,668 76Statutory Charges 13 14 1User Charges 221 295 74Grants & Subsidies 2,477 3,747 1,270Investment Income 25 25 0Reimbursements 2 2 0Other Revenues 57 57 0

Total Operating Income 4,387 5,808 1,421

EXPENDITUREEmployee Costs 1,042 1,246 204Materials, Contracts & Other Expenses 1,964 3,164 1,200Depreciation 1,485 1,485 0Finance Charges 0 0 0

Total Operating Expenditure 4,492 5,895 1,403

OPERATING SURPLUS/(DEFICIT) (105) (87) 18

Gain / Loss on Disposal of Assets 11 11 0Amounts Recieved Specifically for New Assets 66 1,212 1,146

NET SURPLUS / (DEFICIT) transferred to Equity Statement (28) 1,136 1,164

UNIFORM PRESENTATION OF FINANCESForecast 2019-20

$,000

Budget 2020-21

$,000Operating Revenue 4,387 5,808less Operating Expense (4,492) (5,895)Operating Surplus / (Deficit) before Capital Amounts (105) (87)

less Net Outlays on Existing AssetsCapital Expenditure on renewal and replacement of Existing Assets 1,505 1,743

less Depreciation, Amortisation & Impairment (1,485) (1,485)less Proceeds from Sale of Replaced Assets 0 (227)

20 31

less Net Outlays on New & Upgraded AssetsCapital Expenditure on New & Upgraded Assets 117 1,272less Amounts specifically for new or upgraded Assets (66) (1,212)less Proceeds from Sale of Surplus Assets 0 0

51 60

Net Lending/ (Borrowing) for Financial year (176) (177)



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Financial Statements 2020 - 2021 - continued

BALANCE SHEETForecast 2019-20

$,000

Budget 2020-21

$,000

Variance

$,000ASSETSCURRENT ASSETS

Cash & Cash Equivalents 1,680 1,332 (347)Trade & Other Receivables 237 237 0Inventories 15 15 0Total Current Assets 1,932 1,585 (347)

NON-CURRENT ASSETSFinancial Assets 0 0 0Infrastructure, Property, Plant & Equipment 49,479 50,792 1,313Other 388 388 0Total Non-Current Assets 49,867 51,180 1,313

TOTAL ASSETS 51,799 52,765 966

LIABILITIESCURRENT LIABILITIES

Trade & Other Payables 1,516 1,346 (170)Borrowings 0 0 0Short TermProvisions 113 113 0Total Current Liabilities 1,629 1,459 (170)

NON-CURRENT LIABILITIESLong Term Borrowings 0 0 0Long Term Provisions 20 20 0Total Non-Current Liabilities 20 20 0

TOTAL LIABILITIES 1,649 1,479 (170)

NET ASSETS 50,150 51,286 1,136

EQUITYAccumulated Surplus 15,490 16,626 1,136Asset Revaluation Reserve 34,660 34,660 0Other Reserves 0 0 0

TOTAL EQUITY 50,150 51,286 1,136

STATEMENT OF CASH FLOWSForecast 2019-20

$,000

Budget 2020-21

$,000CASH FLOWS FROM OPERATING ACTIVITIESReceiptsOperating Receipts 4,021 5,613Investment Receipts 25 25PaymentsOperating Payments to Suppliers & Employees 3,085 4,410Finance Payments 0 0Net Cash provided by (or used in) Operating Activities 962 1,228

CASH FLOWS FROM INVESTING ACTIVITIESReceiptsGrants Specifically for new or upgraded assets 66 1,212Sale of replaced Assets 0 227

PaymentsExpenditure on renewal/replaced assets 1,505 1,743Expenditure on new/upgraded assets 117 1,272Net cash provided by (used in) Investing Activities (1,556) (1,576)

CASH FLOWS FROM FINANCING ACTIVITIESPaymentsRepayment of Borrowings 0 0Repayment of Finance lease Liabilities 0 0

Net Cash Provided by (Used in ) Financing Activities 0 0

Net Increase / Decrease in Cash (594) (347)

Cash and Cash Equivalents at start of reporting period 2,274 1,680Cash & Cash Equivalents at the end of the reporting period 1,680 1,332



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Financial Statements 2020 - 2021 - continued

FUNDING THE BUSINESS PLANCouncil intends to fund the 2020 - 2021 Annual Business Plan with a revenue mix consisting of grant funding, statutory charges, user fees and rating revenue.

Council’s revenue in 2020-2021 totals $5.808M which includes $1.668M proposed to be raised from general and other rates. This constitutes 28.7% of Council’s forecast income for 2020 -2021 with the remaining 71.3% coming from:• User charges and commercial revenue• Statutory charges set by the State Government• Grants and Other Revenue

Council’s long term financial sustainability is dependent on ensuring that, on average over time, its expenses are less than it’s revenue. Although a net deficit of $87K is being forecast for 2020-2021, this ought to be viewed in the context of Council’s Long Term Financial Plan.

GRANT FUNDINGLocal Government generally receives three types of grant funding:

General Purpose & Local Roads Financial Assistance Grants (Federal)

Council has complete discretion as to expenditure of funds received.

Council’s 2020 – 2021 budget assumes that four quarterly instalments of the Federal Government financial assistance grants (both general purpose and local roads components) will be received during 2020 – 2021.

Roads to Recovery Grants (Federal) & Supplementary Local Roads Grant

While funds received are to be spent on road projects, Council has complete discretion on whether such spending is on maintaining, renewing or upgrading roads.

Grant Funding Amount $,000

Financial Assistance Grant 1,674

Supplementary Local Roads Grant 171

Roads to Recovery Grant 518

Pest and Weeds 793

Regional Growth Fund* 125

Drought Community Fund 430

Other 38

Total Grant Funding 3,747

STATEMENT OF EQUITYForecast 2019-20

$,000

Budget 2020-21

$,000ACCUMULATED SURPLUS

Balance at end of previous reporting period 15,518 15,490Net Result for Year (28) 1,136Transfer from Reserves 0 0Transfer to Other Reserves 0 0Balance at end of period 15,490 16,626

ASSET REVALUATION RESERVEBalance at end of previous reporting period 34,660 34,660Gain on Revaluation of Property Plant & Equipment 0 0Balance at end of period 34,660 34,660

OTHER RESERVESBalance at end of previous reporting period 0 0Transfers from Accumulated Surplus 0 0Transfers to Accumulated Surplus 0 0Balance at end of period 0 0

TOTAL EQUITY AT END OF REPORTING PERIOD 50,150 51,286

Captial Grant Funding Amount $,000

People 4 Places - Playgrounds 300

Infrastructure Stimulus 428Drought Community Fund 484

Total Grant Funding 1,212

*Application lodged, currently being assessed



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Financial Sustainability

All Councils pursuant to the Local Government Act 1999 are required to develop and maintain Long Term Financial Management Plans and Asset Management Plans to ensure sound strategic planning principles to assist with decision making are in place.

Council is committed to ensuring its long term financial sustainability. Council’s financial sustainability is dependent on ensuring that, on average over time, its expenses are at least matched by its revenue. In addition, capital expenditure on existing infrastructure and other assets should be optimised in accordance with the Infrastructure and Asset Management Plan so as to minimise whole-of-life-cycle costs of assets.

Council is committed to ensuring its long term financial sustainability. Regulation 7 of the Local Government (Financial Management) Regulations 2011 states:

Pursuant to section 123(10)(b) of the Act, each budget of a council under the Act must – include estimates with respect to the council’s operating surplus ratio, asset sustainability ratio and net financial liabilities ratio presented in a manner consistent with the note in the Model Financial Statements entitled Financial Indicators.

OPERATING SURPLUS RATIOThe operating surplus ratio expresses the operating surplus (deficit) as a percentage of operating income.

This ratio answers the question: Is Council covering its operating expenditure and depreciation charge from its operating revenue?

The operating surplus ratio expresses the operating surplus / (deficit) as a percentage of total operating revenue. A result of greater than 0% would indicate that Council is covering its operating expenditure and depreciation charge from its operating revenue.

The operating surplus ratio from the proposed budgeted activity for the year is a deficit of -1.5%. This result arises because operating income is budgeted to be $87k less than Council’s operating expenses for the year.

ASSET SUSTAINABILITY RATIO

This ratio answers the question: Is Council replacing its assets at the same rate the assets are wearing out?

The Asset Sustainability Ratio indicates whether the Council is renewing or replacing existing non-financial assets at the same rate as its overall stock of assets is wearing out.

The ratio is calculated by measuring capital expenditure on renewal and replacement of assets relative to Council’s Asset Management Plan.

A result in the range of 90% to 110% would indicate that Council is replacing its assets in a timely manner. The forecast asset sustainability ratio for the 2020-21 is 100% which indicates that sufficient funds have been allocated to replace assets in the 2020-21 financial year.

NET FINANCIAL LIABILITIES RATIO

This ratio answers the question: Does Council have a manageable level of debt and other liabilities when considering its available revenue and other cash reserves? Net financial liabilities is a comprehensive measure of the indebtedness of the Council as it includes items such as employee long-service leave entitlements and other amounts payable as well as taking account of the level of Council’s available cash and investments. Specifically, net financial liabilities equals total liabilities less financial assets, where financial assets for this purpose includes cash, cash equivalents, trade and other receivables, and other financial assets, but excludes equity held in Council businesses, inventories and land held for resale.

The following table sets the budget estimates as at 30 June 2021:

Calculation of Net Financial Liabilities Ratio

Estimated $,000

Trade & Other Payables 1,346 Provisions 133Total Liabilities 1,479Less Financial Assets: Cash & Cash Equivalents 1,332 Trade & Other Receivables 237Total Financial Assets 1,569

Equals: Net financial liabilities (Total liability minus financial assets)

(90)

Operating Income (Opinc) 5,808Net Financial Liabilities Ratio (NFL divide Opinc) (2%)

The current estimate of Council’s net financial liabilities at 30 June 2021 is negative ($90k) (i.e. the level of Council’s cash and investments will exceed borrowings).

This is within the range set by Council in its long term financial plan. It should be noted that Council is not intending to take on any debt in this financial year.

OVERALL ASSSSMENT OF COUNCIL’S FINANCIAL SUSTAIBILITY The above ratios indicate that the proposed Annual Business Plan and the associated Budget that underpins it, is financially sustainable over the following 12 months and is in accordance with the Long Term Financial Plan (LTFP) and strategy.

Accordingly considering the above Council will be operating in a sustainable manner for the 2020–2021 financial year.

FINANCIAL SUSTAINABILITY



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BUSINESS IMPACT STATEMENTThe Council has considered the impact of rates on all businesses in the Council area, including primary production. In considering the impact, Council assessed the following matters:

w Council via elected members, consultations with ratepayers

w Council’s policy on facilitating local economic development preference for local suppliers where price, quality and service provision are comparable to suppliers outside the Council area

w Current local, state and national economic conditions and expected changes during the next financial year.

COUNCIL’S REVENUE RAISING POWERS

All land within a Council area, except for land specifically exempt (e.g. crown land, Council occupied land and other land prescribed in the Local Government Act 1999 – refer to Section 147 of the Act), is rateable.

The Local Government Act 1999 provides for a Council to raise revenue for the broad purposes of the Council through a general rate, which applies to all rateable properties, or through differential general rates, based on either land use and/or locality of properties.

In addition, Council can raise separate rates, for specific areas of the Council or service rates or charges for specific services. The Council also raises revenue through fees and charges, which are set giving consideration to the cost of the service provided and any equity issues.

METHOD USED TO VALUE LANDThe Council adopted to continue to use

Capital Value as the basis for valuing land within the Council area. The Council considers that this method of valuing land provides the fairest method of distributing the rate burden across all ratepayers on the following basis:

w 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

w Property value is a relatively good indicator of wealth and capital value, which closely approximates the market value of a property and provides the best indicator of overall property value

w The distribution of property values throughout the Council area is such that few residential ratepayers will pay significantly more than the average level of rates payable per property.

ADOPTION OF VALUATIONSThe Council adopted the most recent valuations made by the Valuer-General that are made available to the Council at the time that the Council adopts the budget, being valuations as at the 6 July 2020.

If a ratepayer is dissatisfied with the valuation made by the Valuer-General, you may object to the valuation referred to on the notice within 60 days after the date of service of receiving the notice of valuation.

Note: a) if you have previously received a notice

under the Local Government Act 1999 referring to the valuation and informing you of a 60 day objection period, the objection period is 60 days after service of the first notice;

b) you may not object to the valuation if the Valuer-General has already considered an

objection by you to that valuation.

The Valuer-General may extend the 60 day objection period where it be shown there is reasonable cause to do so by a person entitled to make an objection to a valuation.

A written objection to a valuation must set out the full and detailed grounds for objection. Objections can also be submitted via an online form at http://www.sa.gov.au/landservices and enter “Objecting to a Valuation” in the search field. Differential Rates (and or charges) imposed by rates (and or charges) are still due and payable by the due date even if an objection has been lodged.

Objections are to be forwarded to:

State Valuation Office GPO Box 1354, ADELAIDE SA 5001 101 Grenfell Street, ADELAIDE SA 5000 E-mail: [email protected] Phone: 1300 653 346 Fax: 08 8226 1428.

GENERAL RATESThe largest component of rates levied is the component that is calculated by reference to the value of the property. Each year, the Council officially ‘declare’ what percentage of the value of the land will be payable in rates.

The Act allows councils to impose rates that differ (ie higher or lower) based on the location of the land, or uses to which the land is put (residential, commercial, primary production, industrial, vacant etc).

Property values reflect, among other things, the relative availability of and access to Council services. This applies to all types of land use, and to land in all locations.

The Council has decided not to differentiate between types of land uses or between land locations in setting rates. Rather

acknowledging the taxation principles of economic efficiency and policy consistency, the Council has chosen to adopt a single rate in the dollar to apply to all rateable land.

Council’s budget contains general rate revenue of $1.668M net of rebates, a target rate revenue increase for 2020-2021 of 2.4% plus CPI to help fund this Annual Business Plan. This represents a 4.8% increase on total general rates raised (net of rebates) compared to 2019 - 2020.

MINIMUM RATECouncil has the discretion to apply either:

w A fixed charge (applying equally to all rateable properties); or

w A minimum rate (to lower-value) properties But cannot use both of these mechanisms.

Council has decided to continue to use the minimum rate method, with the minimum rate for 2020 – 2021 being set at $350.00.

REGIONAL LANDSCAPE LEVY (PREVIOUSLY KNOWN AS THE NATURAL RESOURCES MANAGEMENT LEVY)The District Council of Karoonda East Murray is within the area covered by the Murraylands and Riverlands Regional Landscape Board and is required under the Landscape South Australia Act 2019 to fund the operations of the Board.

The Council satisfies this obligation by imposing a separate rate against rateable properties within its area based on the Capital Value of rateable land.

For 2020 – 2021 Council’s annual contribution to the Murraylands and Riverlands Regional Landscape Board (SA Murray-Darling Basin NRM) is $68,736.

Rating Arrangements 2020 – 2021



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RATING ARRANGEMENTS 2020 – 2021 – Continued

The District Council of Karoonda East Murray is operating as a revenue collector for the Murraylands and Riverlands Regional Landscape Board in this regard and has no input into the chares that are imposed.

Revenue from this levy is not retained by the Council, nor does the Council determine how the revenue is to be invested and acquitted.

SERVICE CHARGESCommunity Wastewater Management System (CWMS) – Service Charge

Pursuant to Section 155 of The Local Government Act 1999, the Council adopt an annual service charge for the financial year ending 30 June 2020, in respect of the prescribed service of effluent waste disposal, on all land to which the Council provides or makes available the service within the Karoonda township.

The Council will recover this cost through an annual service charge of $455.68 per unit occupied land and $430.08 per unit vacant land per rateable assessment.

Where the service is provided to non-rateable land, a service charge is levied against the land.

Kerbside Waste Management – Service Charge

Council provides a kerbside waste manage-ment collection service, including a yellow recycling bin and a green general waste bin.

In order for Council to move towards financial sustainability, this service should be a self-funding cost system, however as it is not available across the whole district, only those benefitting from the service should be paying for it.

The annual service charge for the 2020 – 2021

financial year will be $110.00 per property for those properties in receipt of the service and within the kerbside collection boundary.

Pensioner Concessions, State Senior Card Ratepayer (Self-Funded Retiree) and Other Concessions

From 1 July 2015, the State Government elected to replace the concession on Council rates with the “cost of living payment” provided directly to those entitled. This payment may be used for any purpose, including offsetting Council rates.

To check eligibility, contact :

Department for Communities and Social Inclusion Concessions

Hotline 1800 307 758 or

www.sa.gov.au/.

From 1 July 2017, the State Government is providing an alternative method of delivering the CWMS pensioner concession. This concession will no longer be processed through the Council rates.

Postponement of Rates – Seniors

Ratepayers who hold a State Seniors Card (or who are eligible to hold a State Seniors Card and have applied for one) are able to apply to Council to postpone payment of rates on their principal place of residence. Postponed rates remain as a charge on the land and are not required to be repaid until the property is sold or disposed of. Interest (at the rate prescribed in the Local Government Act 1999) will be charged and compounded monthly on the total amount postponed, until the debt is paid.

REBATE OF RATESThe Local Government Act 1999 requires Councils to rebate the rates payable on some land. Specific provisions are made for land used for health services, community services,

religious purposes, public cemeteries and educational institutions. Discretionary rebates may be applied by the Council under Section 166 of the Act.

Sale of Land for Non-payment of Rates

The Local Government Act 1999 (Section 184) provides that Council may sell any property where the rates have been in arrears for three years or more. The Council is required to provide the principal ratepayer and the owner (if not the same person) with details of the outstanding amounts and advise the owner of its intention to sell the land if payment of the outstanding amount is not received within one month.

PAYMENT OF RATESCouncil rates are billed quarterly in accor-dance with the Local Government Act 1999.

Rates may be paid as follows:

• Telephone/internet using the Bpay services through participating banks;

• Phone the District Council of Karoonda East Murray on 08 85781 004 during business hours to pay with Mastercard or Visa. Please quote your Assessment Number;

• Post your cheque (marked payable to the District Council of Karoonda East Murray) with your remittance to DCKEM, PO Box 58, Karoonda SA 5307;

• In person at the District Council of Karoonda East Murray, 11 Railway Terrace, Karoonda SA 5307.

That pursuant to Section 181(1) of the Local Government Act 1999, all rates are payable in four equal or approximately equal instalments on or before the following dates:

• 18 September 2020 • 18 December 2020 • 18 March 2021 • 18 June 2021

Late Payment of Rates

The Local Government Act 1999 provides that councils impose a penalty of 2% on any payment for rates, whether instalment or otherwise, that is received late. A payment that continues to be late is then charged an interest rate, set each year according to a formula in the Act, for each month it continues to be late. The purpose of this penalty is to act as a genuine deterrent to ratepayers who might otherwise fail to pay their rates on time, to allow councils to recover the administrative cost of following up unpaid rates and to cover any interest cost the council may meet because it has not received the rates on time.

The Council imposes late payment penalties strictly in accordance with the Local Government Act 1999.

When the Council receives a payment in respect of overdue rates the Council applies the money received as follows:

• First – to satisfy any costs awarded in connection with court proceedings;

• Second – to satisfy any interest costs;• Third – in payment of any fines imposed;• Fourth – in payment of rates, in date order

of their imposition (starting with the oldest account first).



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KAROONDA EAST MURRAYANNUAL BUSINESS PLAN & BUDGET2020 - 2021

District Council of Karoonda East Murray

11 Railway TerracePO Box 58

Karoonda SA 5307Tel: 08 8578 1004Fax: 08 8578 1246


Many of the images used throughout this document were kindly submitted by

members of our community.

COMMUNITY CONSULTATIONCouncil welcomed feedback from our community on the proposed activities and funding arrangements. Community consultation ran from 26 June 2020 until 22 July 2020.

KEY DATES26 June 2020 Community Consultation opened22 July 2020 Community Consultation closed28 July 2020 Council formally received submissions 28 July 2020 Adopted Annual Business Plan & Budget 2020-2021

PUBLIC MEETINGA formal public meeting to hear submissions on the draft Annual Business Plan and Budget 2020-2021 was held in conjunction with a Special Council Meeting on Tuesday 28 July 2019 at the Council Chambers, 11 Railway Terrace, Karoonda.

district council of karoonda east murray annual business

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