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The Barossa Council Manager Financial Services Report Special Council Meeting 3 June 2015

SPECIAL COUNCIL MEETING

CORPORATE AND COMMUNITY SERVICES

FINANCE

3 JUNE 2015 2.1.1 2015/16 – 2024/25 LONG TERM FINANCIAL PLAN AND 2015/16 ANNUAL BUDGET AND BUSINESS PLAN B345

INTRODUCTION

Further to the recent Budget/Rating Workshops, the attached draft Annual Budget and Business Plan 2015/16 incorporating the Long Term Financial Plan 2015/16 to 2024/25 has been prepared for public consultation.

RECOMMENDATION

That Council endorse: (1) The draft Annual Budget and Business Plan 2015/16 incorporating the

annual review of the draft Long Term Financial Plan for the period 2015/16 to 2024/25 for the purpose of community consultation.

(2) The consultation period being from 10 June 2015 to 30 June 2015 and

that an allowance of one hour be made at the Council Meeting 16 June 2015 for verbal submissions in response to public consultation, commencing at 10 am.

COMMENT

The Annual Budget and Business Plan (AB&BP) 2015/16 incorporates the Long Term Financial Plan (LTFP) 2015/16 to 2024/25 in the one document but under separate sections. The financial information has been prepared in accordance with the Council Budget and Rating workshops held in the last few months. All strategic parameters and indexation as discussed have been used in the calculation of the financial reports and statements. The draft budget incorporates the base budget, corporate and other new initiatives as discussed and presented at the Council workshop held on the 19 May 2015 along with items discussed for inclusion and or removal as follows: Capital budget items: Added - Recreation parks – ovals $1m (allocated to both renewal/replacement and new/upgrade asset work for major ovals), Stockwell oval – re-establish second oval $345k (grant/other funding requirement $230k – project will not proceed without grant funding), Tanunda Recreation Park Oval lighting upgrade $200k (contributions requirement $100k – project will not proceed without third party contributions and a full due diligence report to be assessed), Tanunda main street works design $50k, Footpaths acceleration of renewal and upgrade

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work $355k, Williamstown QVJP court resurfacing $45k (grant/other funding requirement $32k), Tanunda Show Hall Lighting Replacement $30k, Curdnatta Park - Kitchen renewal $11k, Curdnatta Park - Retaining Wall $10k, Full phased Air Cooling Solution - The Rex Stadia Option 2 $227k (contribution funding $22k), Jack Bobridge Track Cycle Connection $50k and new sealing works $300k (transferred from reseal). Reduction - resealing works $300k (transferred to new seal). Operating budget items: (Unless otherwise shown all are one-off entries for 15/16) as follows: Added - AMG - Railway Station Master Plan $5k, Redefining Community Committees - Incorporation and Insurance Costs $7.5k*, Redefining Community Committees - Initial startup cash float from reserve $38k, Redefining Community Committees - ongoing Accounting and Insurance Costs $5k*, Redefining Community Committees - Reserve Funds $100k*, Street Tree Planting Budget Increase $25k ($25k in 16-17, $50k in 17-18 and $30k ongoing in the LTFP), Feasibility study on Southern Barossa Sport and Recreation sporting hub and Williamstown future use study $25k and Gawler to Tanunda Bike Path maintenance $63k. *Funding period - three years or relevant Committee reserve extinguished – whatever comes first. Other items were further assessed and then reduced/removed by the Corporate Management Team as follows: Capital - CWMS (Community Wastewater Management Systems) Rising Main Duplication Williamstown $400k (estimate now $1.1m not $1.5m) and CWMS Tanunda Class B Reuse Plant $320k, Plant and Equipment (net of proceeds) $654k, Drainage upgrade Para Road, Tanunda $150k, bridge upgrade general works $100k and Nuriootpa Office air-conditioning renewal program $35k. Operating – a further comprehensive review was undertaken to the base budget with an increase to income for workers compensation rebate and income for insurance claims and a reduction to various expenditure lines, finding overall savings of approximately $350k. To ensure alignment to the long term financial plan requirements of a total general rate revenue increase of 4.5% (plus growth, currently at 1.74%), a small reduction in the rates in the dollar has been made to all land use codes to amounts presented at the Council workshop held on 19 May 2015. The total general rate revenue amount remains the same but the increase for individual ratepayers will be slightly less than was presented at the workshop, due to changes to land use codes during the last few weeks. A delay has been made for the purchase of selected plant and equipment expenditure in the years 2016/17, 2017/18 and 2018/19 to the year 2021/22 to remain in a net positive cash position. A full analysis of life cycle costs on major plant and equipment will be carried out in 2015/16 with a view to

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reallocate the program over a longer life cycle and thus generating overall budget savings. The changes including the savings made will allow Council to deliver the accelerated community infrastructure program in 2015/16 of approximately $1.8m without additional borrowings and has positioned the operating budget for a slight surplus. The changes to the base budget and its impacts on the long term financial plan, subject to working within the current estimates, will return a slight operating budget surplus and returns future years discretionary funds, an estimated reduction in general rate increases from 4.5% in 2014/15 scaling back to 2.5% in 2020/21, whilst meeting long term asset plans and service levels as they currently stand as set by Council. Other operating income and expenditure indexation for future years in the LTFP has been reduced to reflect the current cost of services. The LTFP is incorporated with the AB&BP process to ensure the two Plans align, as the AB&BP represents the first year in the LTFP. Preparing the two Plans concurrently enables the community to be involved in the short and long term planning of Council’s Budget. The public consultation period will commence from 10 June 2015 and closes on 30 June 2015. Verbal submissions will be considered at the Council meeting on 16 June 2015. Public submissions will be considered by Council at a special meeting to be held following the consultation period. The adoption of the Budget is due to be held in the first week in July (date to be confirmed). LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN

Local Government Act Local Government (Financial Management) Regulations 2011 - Reg 9(1)(b) Annual Budget/Business Plan Policy FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS

The adoption of the Budget is required between 1 June and 31 August 2015. In order to meet this time line, the Budget process, including the adoption of the draft document for public consultation purposes, is required to be underway in May. COMMUNITY CONSULTATION

Detailed in the body of the Report.

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Annual Budget and Business Plan 2015-16 | The Barossa Council | Page 1 of 45

The Barossa Council Annual Budget and Business Plan

For Consultation

2015-16 Incorporating the annual review of the

Long Term Financial Plan - 2015-16 to 2024-25

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Version Control:

Version Status Date Version 1.0 Draft for Council adoption for Public Consultation 3 June 2015

Questions? Members of the community who have questions regarding the Annual Budget and Business Plan, or who seek further information regarding the finances of Council, are encouraged to contact Council office during business hours, via the website, or via email.

Principal Office and Library:

Phone: 08 8563 8444

43-51 Tanunda Road, Nuriootpa

Website: www.barossa.sa.gov.au Email: [email protected]

All photographs by permission of the South Australian Tourism Commission. All rights reserved.

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Contents

From the Mayor 4

Our Council 5

Overview 8

Annual Business Plan

Strategic Directions 9

Joint Ventures and Associated Entities

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Directions for 2015-16 12

Capital Works Program 2015-16 15 Funding Our Activities

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Implications for Our Rates

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Measuring Our Performance

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Non-Financial measures

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Annual Budget

Budgeted Financial Statements 2015-16 30

Long Term Financial Plan 2015-16 to 2024-25

Introduction and Assumptions Financial Sustainability Appendix: A1 - Key Performance Indicators and Financial Parameters A2 - Long Term Plan Financial Statements 2015-16 to 2024-25 A3 - Capital Expenditure

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From the Mayor

After extensive budget discussions in conjunction with Elected Members and Council officers, Council is pleased to present its Annual Budget and Business Plan 2015-16. There remain multiple challenges within the budget environment including growing cost of services and reduced levels of support from State and Federal governments. Council believes we have again produced a balanced budget which increases rates in accordance with the long term financial plan to maintain our current levels of service in many areas, and also commencing further investment into core services; primarily being roads, footpaths and infrastructure. The 2015-16 financial year will reap benefits from a period of budget consolidation and investment in core services with many new initiatives being approved. Significant changes and highlights in this year's budget include:

Addressing the growing costs of delivering services including staffing, utilities, insurance, materials and legislative compliance.

New investment in key infrastructure: Accelerated footpath program of $600k to

address the existing network condition; Maintenance of additional funding to rural road

resheeting works of $300k (indexed per annum) to $1.3m for 2015-16;

Funding of $1m for renewal and upgrades to existing infrastructure and playing surfaces at Council's major sporting and recreational ovals.

Various building projects. Continued investment in upgrading the Barossa

Valley Tourist Park; $628k for sealing of strategic roads in 2015-16

with an anticipated further $300k additional works in 2016-17;

$1.16m for resealing of the existing sealed road network;

$1.1m for installing a new wastewater mains line to service Williamstown.

Funding for existing services remains in accordance with adopted plans in addition to some new service spending in the following areas:

Providing for the release of reserve funds held by Council for current Section 41 Committees to support transition to new arrangements and undertake small projects;

Undertaking a feasibility study into the concept of a Southern Barossa Recreational Hub and other associated economic opportunities;

Year one of three for increased township tree planting being $25k in 2015-16, increasing to $100k in 2017-18 (depending on future budget allocations);

Extension to funding for a further year for the World Agrarian Landscape Heritage Bid.

The draft Annual Budget and Business Plan incorporating the annual review of the Long Term Financial Plan is available on Council's website, libraries and at the front desk of the Nuriootpa office. On behalf of the Elected Members of The Barossa Council, I am pleased to endorse this plan to the Community for comment.

Mayor Bob Sloane

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Our Council The Barossa Council was originally formed in 1996 after the amalgamation of the District Councils of Barossa, Tanunda and Angaston. The majority of the District Council of Mount Pleasant was later amalgamated in 1997. The Council covers an area of approximately 894 square kilometres, is located approximately 80 kilometres north east of Adelaide, adjacent to the town of Gawler, and is home to a population of over 22,100. Prior to European settlement, the Barossa region was inhabited by the Peramangk and Ngadjuri people. Colonel William Light first visited the area in 1837, naming the Barossa Range from which the region derives its name. The settlement of the Barossa region began in 1840, with settlers originating from the British Isles, Prussia and Silesia. Those settlers quickly established the early townships of the region, such as Lyndoch, Rowland Flat, Tanunda, Nuriootpa, Angaston, Stockwell, Eden Valley, Mt Pleasant, Williamstown and Springton. Early farmers of the Barossa established vineyards in the 1840s and 1850s to supplement their primary activities of wool and livestock production and crop farming. In the late 1880s and 1890s there were substantial increases in the production of wine in the region which resulted in the establishment and subsequent expansion of a number of cellars. The driving forces behind this growth were the outbreak of phylloxera in other States and the development of an export market that provided some protection from the recession experienced in the rest of Australia during that time. The wine industry has continued to grow from these early beginnings and is the major source of income for the region. The cultural landscape of the present day Barossa is reflective of the substantial influence of the early British and German settlers. Vineyards and paddocks dominate the landscape but historical towns, churches, wineries and stone ruins contribute substantially to the charm and character. The natural vegetation of the Barossa has been retained in many areas and underpins the visual appearance and biological diversity of the area.

The Barossa is recognised as Australia's premier wine region. The wine experience, combined with the region's distinctive history, has made it a significant tourist attraction. The establishment of major festivals and high quality accommodation and restaurants has complemented these attractions. The Barossa experience is a diverse one. In addition to our premier wine and food attractions there are unique nature trails, parks and historical points of interest. The rich pastoral lands of the historic towns of Mount Pleasant and Williamstown produce fine wool, dairy products and prime lamb and beef. Forestry is also a major industry, and together with three reservoirs and national parks, provides recreational opportunities. The tourism industry continues to grow and has become a major focus for the continued development of the region.

Principal Office and Library:

43-51 Tanunda Road, Nuriootpa

Postal Address:

PO Box 867, Nuriootpa SA 5355

Branch Office/Libraries:

29 Barossa Valley Way, Lyndoch

130-132 Melrose Street, Mount Pleasant

Washington Street, Angaston

Library only 66-68 Murray Street, Tanunda

Website: www.barossa.sa.gov.au

Email: [email protected]

Localities in The Barossa Council: Altona, Angaston, Barossa Goldfields, Bethany, Cockatoo Valley, Concordia, Craneford, Cromer, Dorrien, Eden Valley, Flaxman Valley, Kalbeeba, Krondorf, Light Pass, Lyndoch, Moculta, Mount Crawford, Mount McKenzie, Mount Pleasant, Nuriootpa, Penrice, Pewsey Vale, Rosedale, Rowland Flat, Sandy Creek, Springton, Stockwell, Tanunda, Taunton, Vine Vale, Williamstown and Wilton.

Major Industries: Wine making, grapes, grain and spirit distillation; tourism; beef, wool and fat lamb production; cement manufacturing, dried fruit processing and packaging; forestry; water storage; mineral extraction industries; plastic injection moulding and plant manufacturing.

Distance of Principal Office from Adelaide CBD

80km

Area of Council 893.5km2

Number of Rateable Assessments 12326 Number of Non Rateable Assessments 526

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Annual Budget and Business Plan 2015-16 | The Barossa Council | Page of 45 6

Statistics from the Australian Bureau of Statistics 2011 Census:

Key Statistics Number % Age Structure Number % Males 10,966 49.5 Infants 0 to 4 years 1,443 6.5 Females 11,203 50.5 Children 5 to 17 years 2,968 13.4 Total Population 22,169 100 Young adults 15 to 19 years 1,393 6.3 Adults 18 to 64 years 12,669 57.1 Mature adults 65 to 84 years 3,146 14.2 Senior Citizens 85 years + 550 2.5 Birthplace Number % Families Number % Australia 18,736 84.5 Couple without child(ren) 2,866 45.0 Overseas / Not Identified 3,433 15.5 Couple with child(ren) 2,763 43.4 Single parent / other family 738 11.6 Total families 6,367 100

For more, visit www.abs.gov.au

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http://www.abs.gov.au/


Services provided:

Executive Services Australia Day Awards Media Communications

Business Excellence Organisational Development

Citizenship Ceremonies Risk Management

Economic Development Strategic Projects

General Management Sustainability

Governance (shared) Tourism

Human Resources Work Health and Safety

Services provided:

Director Building Assessment Food Inspection

Development and Café Licences Heritage

Environmental Services Community Wastewater Management

System (CWMS Administration)

Immunisation

Liquor Licences

Development Control Natural Resources

Dog and Cat Control Parking and Traffic Control

Dry Areas Implementation Public Health

Environmental Health Strategic Development Planning

Fire Prevention and Safety Waste Management

Services provided:

Director Corporate Services :

Corporate and Administration Community Committees

Community Services Administration Customer Service

Community Land/Policy

Financial, Rating, Payroll and Financial Internal Controls

General Administration

Governance (shared)

Information and Communication Technology and Records Management

Operation of Recreation Facilities

Tourism/Visitor Information Services

Community Services :

Arts and Culture

Barossa/Light Volunteer Resource Centre

Community Development

Library Services

Youth Services

Services provided:

Director Asset Construction and Maintenance Management of Plant and Machinery

Works and Engineering Bridge Construction and Maintenance Playgrounds

Services Cemeteries Public Lighting Requirements

CWMS Maintenance and Repairs Public Toilets

Development and Maintenance of Parks and

Reserves

Road Construction and Maintenance

Road Safety Control

Footpath Construction and Maintenance

Infrastructure Development

Roadside Vegetation Management and

Control

Maintenance of Council Buildings/Facilities Stormwater Drainage and Construction

The Barossa CouncilMayor and 11 Elected Members

Home and Care Services - Community Transport, Home Assist and Barossa Leisure Options

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Overview The Annual Budget and Business Plan is The Barossa Council’s statement of intended programs and outcomes for the coming financial year. This Plan has been developed through a rigorous process of consultation and review with Council Officers and Elected Members, and follows the Business Planning Framework outlined in the Strategic Directions area of this document. It includes both continuing services, programs and new initiatives, and follows the strategic directions outlined in Council’s Strategic Plan 2011-15, Long Term Financial Plan (LTFP) – the annual review is included in this document) and Long Term Infrastructure and Asset Management Plan. Local Government is the most asset-intensive tier of government. The Barossa Council acts as custodian of approximately $285m of community assets, including road infrastructure encompassing 346 kilometres of sealed, 566 kilometres of unsealed roads and 69 kilometres of unformed roads. This presents Council with a number of complexities, including how to allocate resources in order to satisfy community demands for new and expanded services, whilst ensuring appropriate resources are provided for maintenance and future replacement of existing community assets. Council is committed to ensuring that the wide variety of services and activities it provides to the community reflect financial sustainability. The key measure of financial sustainability is ensuring operating expenditure (inclusive of depreciation) is fully funded from recurrent operating revenue streams. This means that Council should generally have sufficient recurrent revenue funds generated over a three year average in order to finance the programmed replacement of existing community assets at the end of their useful lives. Underlying Assumptions

A 4.5% average increase in general rates from existing ratepayers;

An increase in refuse/recycling service charges of 5.0% to ensure service is sustainable plus increase in number of services;

The separate rate which transparently reflects the cost of constructing The Rex Barossa Aquatic and Fitness Centre ended in the 2014-15 financial year;

All other Income and expenditure has been increased in line with the current cost for providing those services and consideration of Councils Long Term Financial Plan (LTFP);

Community Waste Management Systems (CWMS) operations has an increase of only 2.0% applied to the CWMS service rate;

Staff inclusions are: part time General Inspector; Local Emergency Management and Regional Procurement Project Officers the latter two primarily funded through grant or shared service funding arrangements. All other areas will remain constant and staffing costs increase in line with Enterprise Bargaining Agreements, Superannuation Legislation and contractual agreements;

The SA Local Government Price Index was 1.4% as at March 2015 and the general price index was 1.1% as at March 2015;

Selected operating costs have been isolated from general expenditure, e.g. electricity, water, insurance premiums, waste collection and disposal service costs. The projected increases for these are higher than the base rate and range from 2.5% to 4%;

Financial Assistance Grants: The supplementary roads portion of this funding ceased from 2014-15 ($210k) and the Financial Assistance Grants will not be indexed in 2015-16 (and for the following year) reducing income a further $20k.

For further information on rating and its impact please refer to the relevant areas within this document.

Key Features

A comprehensive capital works program of $10.1m, including $4.0m on transport assets for reseal and resheeting for roads (including a further $300k per annum for up to 9 years to rural road resheeting program to address condition issues), new and replacement of footpaths, drainage works for $491k

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and $1,467k on our Community Waste Water Management Systems;

Expenditure of $165k for the renewal and/or replacement works on various buildings;

Upgrade and renewal to Recreation Park ovals $1,003k;

A second oval at Stockwell Recreation Park $345k (dependant on grant funding);

Installation of air conditioning at the Rex Aquatic and Fitness Centre $227k;

New cabins, multipurpose meeting room and swimming pool works at Nuriootpa Centennial Park $621k;

Refer also to “Capital Works Program 2015-16” in this document for more details.

Annual Business Plan

Strategic Directions The Barossa Council’s current Strategic Plan was adopted in 2011, in accordance with Section 122 of the Local Government Act 1999, and will continue in force until 2015. The Strategic Plan provides an explanatory framework to highlight objectives and targets, and guides efforts and the allocation of resources.

Objectives in the current Strategic Plan have been grouped under four Key Result Areas, as follows:

Community Wellbeing: a cohesive and healthy community, enjoying a high quality of life

Health & Family

Youth

Recreation

Safety & Security

Culture

Economic Wellbeing: a growing and diverse economic base supported by strong regional cooperation

Tourism

Business & Industry

Digital Economy

Natural and Built Environment: attractive and sustainable natural and built environments through planned and informed development and management

Character & Heritage

Environmental Sustainability

Waste

Infrastructure

Planning & Building

Governance and Organisation: a consultative and inclusive organisation dedicated to good governance, proactive leadership and high quality services

Responsibility

Service

Systems

People

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The Business Planning Framework Council’s Business Planning Framework describes how these Key Result Areas, their associated Objectives, and the Strategies to reach these Objectives, provide guidance to the preparation of other Council long term and operational plans. These plans include:

Long Term Financial Plan which provides financial directions for the next 10 years;

Long Term Infrastructure and Asset Management Plan which provides the upgrade, replace and renewal programs for Council assets and infrastructure;

Annual Budget and Business Plan which provides the annual financial and operational plans, objectives and performance targets for Council;

Annual Report which describes the performance of Council on objectives set in the Annual Budget and Business Plan, as well as disclosing statutory information regarding the status of Council and Council services;

Development Plans which provide policy direction for the continued development of the Council area;

Infrastructure and Asset Management Plans which describe the programs of upgrade, replacement and renewal of assets and infrastructure;

Quarterly Business Plan and Budget Reviews which outline financial performance against the Annual Budget and Business Plan;

Monthly Financial Reports which regularly track the finances of Council.

The Strategic PlanCommunity Wellbeing | Economic Wellbeing | Natural and Built

Environment | Governance and Organisation

The Corporate PlanPeople | Systems and Processes | Finance | Assets

Service Delivery

Council Strategic Management Plans

Council Operations

Measures

Long Term Financial Plan

Long Term Infrastructure and

Asset Management Plan

Annual Business Plan and Budget

Infrastructure and Asset Management Plans

Business Unit PlansExecutive | Administration | Finance | Library Services |

Environmental Services | Planning | Building and Health | Visitor Information Centre | Information Technology | Community

Services | Capital Works | Engineering Services | Community Wastewater Management Scheme (CWMS) | Section 41

Committees

Individual Performance Plans

Community Survey,

Elected Member

Survey, Policies,

KPIs

Staff Surveys,

Quarterly Review,

KPIs

Quarterly Reports,

KPIs

Annual Report,

Financial Indicators,

KPIs

Financial Indicators

Staff Performance

Reviews, KPIs

Financial Indicators

External Strategies

Business Planning Framework

Business Planning Framework | The Barossa Council

Development Plans

South Australia Strategic Plan

Greater Adelaide 30 Year Plan

Regional Development Australia

Barossa Health

Barossa Wine and Grape Association

Natural Resource Management Regional Plans

Local Government Association

Southern and Hills Local Government Association

Central Local Government Region

Tourism Barossa

Wakefield Group

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Joint Ventures and Associated Entities

Nuriootpa Centennial Park Authority Established as a subsidiary of Council pursuant to Section 42 of the Local Government Act 1999, the Nuriootpa Centennial Park Authority manages and maintains the Nuriootpa Caravan Park and adjacent sporting and leisure facilities on behalf of Council. To this end, and in accordance with the Authority’s Charter, operating surpluses of the Caravan Park activities are utilised to maintain the Nuriootpa Recreation Park facilities (including tennis courts, 3 ovals and associated buildings and infrastructure), as well as the picturesque Coulthard Reserve located adjacent to the Caravan Park. Operating surpluses from the Caravan Park activities are also utilised to provide important funding for the programmed upgrade and replacement of the facility assets managed by the Authority. The 2 ovals, a soccer pitch and eight tennis courts are extensively used by local sporting clubs. The four-star rated Caravan Park facilities include on-site cabins and vans, a camp kitchen, and various other standard amenities. The projected 2015-16 Income Statement for the Authority is included within Council’s financial statements, contained within this document.

Southern & Hills Local Government Association Established in 1969, this organisation is formed under Section 43 of the Local Government Act 1999 and operates as a regional subsidiary of councils included in the membership . An amount of $18,000 is included for the subscription.

Central Local Government Association Established in 1998, this organisation is formed under Section 43 of the Local Government Act 1999 and operates as a regional subsidiary of councils included in the membership. An amount of $10,367 is included for the subscription.

Gawler River Floodplain Management Authority Established in 2002, this organisation is responsible for the construction, operation and maintenance of flood mitigation infrastructure in the Gawler River catchment. An amount of $11,020 is included for the operational & maintenance subscription. Council has a share in the Net Assets $1,658,655 as at 30 June 2014. An adjustment for the movement from last year’s balance is not as yet reflected in the Financial Statements in this document.

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Directions for 2015-16

Economic Environment Together with Light Regional Council, the Town of Gawler and the District Council of Mallala, The Barossa Council contributes financially to Regional Development Australia Barossa Inc (RDA), and has Board representation. The RDA proactively supports and promotes sustainable economic growth and innovation in the region. Council is also working with local groups such as the Nuriootpa Futures Association, Tourism Barossa, Food Barossa and local town committees to support and grow the local economic opportunities.

Climate Change The RDA Barossa, The Barossa Council, Light Regional Council, the District Council of Mallala, Barossa Grape & Wine Association and the Adelaide and Mount Lofty Ranges NRM Board have developed this Regional Climate Change Adaptation Plan. The Plan reflects the Region’s commitment to adapting to climate change and continues the work started following signing of the Barossa Regional Sector Agreement on climate change in March 2011 by RDA Barossa. The Plan has been developed by undertaking an Integrated Vulnerability Assessment and an adaptation options assessment, informed by a stakeholder workshop. The Integrated Vulnerability Assessment identified six key areas of decision making to focus adaptation actions on for the Region covering the following themes: 1. Viticulture 2. Water resources management 3. Community services 4. Biodiversity management 5. Emergency services management 6. Manufacturing Further work will be undertaken during the 2015-16 financial year to address other key areas identified within the Plan from existing resources.

Waste Collection Council will continue to provide the following services:

Weekly general waste collection service for premises across the area with the provision of 140 litre mobile garbage bins (MGBs) with optional 240 litre MGB collection service only for families having 6 or more members (provided at the same charge as a 140 litre MGB)

Fortnightly 240 litre MGB co-mingled recyclable materials collection service to all applicable premises

Weekly 140 litre MGB or optional 240 litre MGB service for commercial/ industrial premises

Optional fortnightly 240 Litre MGB green waste collection service provided to residents within Angaston, Lyndoch, Mount Pleasant, Nuriootpa, Stockwell, Tanunda and Willliamstown

One Waste Transfer Station located at Springton opening on two Saturdays per month

Council also will continue the operation of its waste oil disposal facility at the Tanunda Works Depot.

Members of the community are also able to drop off full syringe containers at the Council’s principle office or any Council library. Environmental Health Officers appropriately store, transport and dispose of full syringe containers in a safe and environmentally friendly manner. Replacement syringe containers are available at cost price from Council’s offices. Council works vehicles are supplied with sharps containers and safe handling equipment to enable prompt and proper collection and disposal of discarded syringes in public areas. Council Environmental Health Officers provide guidance, advice and reference of appropriate control and disposal of hazardous substances. Proactive initiatives include regular media releases and information provided through local newspapers and radio.

Community Wastewater Management System (CWMS) The Barossa produces about 2.2 million litres of sewage a day, which is transported from homes and businesses to Council treatment plants via approximately 128 kilometres of pipes and 31 pumping stations. Regular monitoring and maintenance of the CWMS system is carried out to ensure effective performance and safety. Spread across the region are five wastewater treatment plants, four sets of treatment lagoons, five irrigation storage lagoons and associated ancillary pumps and plant required to effectively treat wastewater. Council is committed to continuously reducing the impact these services have on the environment with 90% of water entering into the system being able to be recycled (800 million litres a year). Continued focus for CWMS operations will be monitoring the condition of aging assets to ensure their continued safe and reliable operation. The outcomes of these condition monitoring programs will allow the CWMS Capital works program to be focused and effective. The duplication of the Williamstown rising main to allow

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further township growth, address a serious risk to the service due and the effective management of aging assets has been highlighted as a priority and will be undertaken during 2015-16.

Strategic Planning Council’s strategic land use planning projects revolve around Local and State Government development policy reviews. These reviews respond to state initiatives such as the 30 Year Plan and the Character Preservation (Barossa Valley) Act; as well as community consultation on council projects such as its Strategic Directions Report and Rural Areas and Character Review. At a Council level, several projects are being implemented to maintain our region’s unique character and amenity while also maintaining its township living and working environment. Key projects in the next financial year will include the following local studies and investigations:

Implementation of the Rural Areas and Character Review through policy amendments to Council’s Development Plan. These amendments will introduce changes to policies for rural areas, protection for primary production, agricultural significance and character elements to better protect our region;

Finalisation of Kalbeeba infill investigations and consultation on relevant findings relating to future development options;

Initiating a region-wide Townships Review which will examine planning policies and desired character statements for each town future design and spatial planning. This extensive project will require an analysis of constraints and opportunities for growth in the context of recent Character Preservation amendments to the State Planning Strategy. There will also be investigations of the potential for higher density residential development (reviewing allotment size and desired building heights) in major townships.

There will also be continuing Council involvement in the regional bid for world heritage area classification. This is being undertaken on a joint basis with a number of Councils in the Mount Lofty Ranges region. At a State level, Council will continue to make submissions to the Government on behalf of the community in an effort to identify future reforms for improved regulations and assessment procedures, and maintain its input to strategic planning generally to enhance both local and regional policies. A key focus in the next financial year will be examining a range of planning reforms which the State Government has commenced, including potential new development legislation.

Council’s planning activities will continue to respond to ongoing State strategies, especially the ’30-year Plan for Greater Adelaide’ which is to be reviewed during the 2015-16 period. This document originally created new growth areas for transport‐oriented development and housing and established regional population targets which now require updating. There has also been confirmation that the State Government is continuing its high-level strategic study and investigations into the long term potential for urban development at Concordia, in an area that lies east of Gawler. During 2015-16 Council will review its organisational strategic planning framework with the review of the current strategic plan with a view to developing a long term Community Plan. The Community Plan will be a visionary document and supported by enhanced Corporate Planning, Business Planning and associated reporting systems.

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Asset Management Council has a selection of Infrastructure and Asset Management Plans covering its major asset classes. The plans for Transport, Stormwater, Community Wastewater Management System, Recreation and Buildings lay out the strategies for maintaining and developing existing assets, and for providing new assets which meet the needs of the Community.

Council reviews and updates these plans regularly, assessing asset life cycles, safety, sustainability and levels of service. The financial implications for managing these assets inform Council’s Long Term Financial Plan, as per Council’s Business Planning Framework.

Whilst there will always be community demand for the provision of new and upgraded assets, it is imperative that capital expenditure priority is given to the replacement and renewal of existing assets before considering the construction or purchase of new assets.

Additionally, with finite financial resources, it is also important that Council gives consideration to the disposal of surplus or non-performing assets – thereby releasing financial resources to more appropriate asset management activities.

Note: not including donated assets *Includes all NCPA assets

Council Capital Works Budget 2015-16 $’000 Land Building & Other Structures*

0 1,079

Transport 4,030 Bridges 122 CWMS 1,467 Stormwater & Drainage 491 Recreation 1,608 Equipment, Plant & Vehicles 1,262

Sub Total Amounts specifically for new or upgraded assets Proceeds on disposal replaced assets

10,059 (1,193)

(320)

Proceeds on disposal surplus assets 0

Net Capital Program 8,546

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Funding Our Activities Council is budgeting the expenditure of $44.7m in 2015-16 on the delivery of services, programs and the maintenance of assets and development of new or upgraded assets and loan servicing.

Operating Revenue The Budget provides for operating revenue to increase from the last year third Budget Update of $33.8m to $34.6m – an increase of 2.4%. Recurrent revenue streams of Council are:

$M % Type Description 27.2 78.6% General Rates and

Service Charges General rates on properties as well as service rates (i.e. sewerage and refuse/recycling rates)

2.7 7.8% User Pay Charges set by Council

Charges for the Council’s fee based facilities and services such as caravan parks, swimming pools, community halls, cemeteries and refuse dump fees

2.9 8.4% Grants and Subsidies

Council seeks to attract as much grant funding from other tiers of government as possible, thereby reducing the reliance on other revenue streams

1.2 3.5% Investment, Reimbursements & Other income

Interest received on Council’s internal cash reserves and deposits, Reimbursements for work undertaken and Other Income

0.6 1.7% Statutory charges set by State Government

Fees and charges set by State Government regulation and received by the Council for regulatory functions undertaken such as assessment of development and building applications, and dog control management

Operating Expenditure The Budget provides for operating expenditure to increase from the last year third Budget Update of $33.9m to $34.5m – an increase of 1.8%. Full Cost Attribution has not yet applied to this version. This is an allocation of internal services to external services and does not affect the overall net result. It will be included in the final version of this plan for adoption after Public Consultation. Recurrent expenditures incurred by Council are:

$M % Type Description 13.9 40.3% Contractual Services,

Materials & Other Expenses

Payments for external provision of services Payments for physical goods such as water, fuel, energy, road materials, office consumables and stationary Includes expenses not separately classified above such as insurances, postage, telephone, government levies, contributions and donations

12.2 35.4% Employee Costs All labour related expenses such as wages and salaries, and on-costs such as allowances, leave entitlements and employer superannuation

7.3 21.1% Depreciation Annual consumption of Council’s fixed assets (e.g. infrastructure, equipment, buildings, etc) over their useful lives

1.1 3.2% Finance Costs Costs of financing Council’s activities through borrowings or other types of financial accommodation

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Implications for Our Rates Council plans to raise a net sum of $23,004,281 from rates in 2015-16 (including growth, but excluding service charges, separate rates and the State Government’s NRM levy).

Council recognises that ratepayers wish increases to their rates to be as low as possible; however it is necessary to ensure that current services are properly funded and can continue to be delivered without significantly impacting standards or passing on a financial burden to future ratepayers or cutting services utilised by the community. Current assets and infrastructure owned by Council deteriorate over time through wear and tear and must be replaced or renewed at appropriate intervals in order to prolong their lives and continue to deliver services to the community.

The proposed increase in rate revenue will provide the necessary funding to meet the programmed upgrade, renewal and replacement plans in place as outlined in the Long Term Infrastructure and Asset Management Plan, ensuring that existing services to the community will be maintained.

Council is aware of the impact on ratepayers and is committed to providing and developing options to ease the rate burden through increasing its own efficiency and by providing those under hardship with appropriate alternatives to suit their circumstances.

Rating Policy Section 147 of the Local Government Act 1999 provides Council with the power to rate all land within The Barossa Council, except for land specifically exempted, such as Crown land and land occupied by Council.

Council is mindful of its responsibility to continually review its rating policy to ensure it is fair and equitable on its residents. The current rating policy is available for

inspection at all Council branches and can be downloaded from Council’s website at www.barossa.sa.gov.au.

Land Valuation Method Council uses the capital value determined by the State Valuation Office as the basis for valuing land and calculating rates.

Council considers that this method provides the fairest method of distributing the rate burden across all ratepayers on the following basis:

The equity principle of taxation requires that ratepayers of similar wealth pay similar taxes and ratepayers of greater wealth pay more taxes than ratepayers of lesser wealth;

Property value is a relatively good indicator of market value of a property, providing the fairest method of calculating rates.

The total Property rateable valuations provided by the State Valuation Office as at 21 April 2015 was $4,614,767,167, a 4.02 % increase over last year.

Land Use Total Valuation Movement

Residential 4.41%

Commercial 0.85%

Industry – Light 13.94%

Industry – Other (0.80)%

Primary Production 3.28%

Vacant Land 21.39%

Other (1.50)%

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Differential Rates General rates payable for each ratepayer is determined by the capital valuation multiplied by the rate-in-the-dollar set by Council. Council applies differential general rates based on the land use of the property, as outlined in the Land Use table.

Fixed Charge As part of the general rates, Council applies a fixed charge component so that all rateable properties make a fixed contribution towards the cost of administering Council’s activities. The fixed charge has increased from $300 to $316 per assessment.

Service Rates Council provides various prescribed services pursuant to Section 155 of the Local Government Act 1999 which includes community wastewater management systems, refuse collection and kerbside recycling service. The cost of these services, including a component for future capital works where appropriate, is recovered from those ratepayers utilising the service.

Separate Rate – “The Rex” Aquatic and Fitness Centre The construction of the Rex was in part funded by a separate rate applied (pursuant to Section 154 of the Local Government Act 1999) on all rateable properties excluding vacant allotments for a period of 6 years. The 2014-15 financial year was the final year for the separate rate and the average increases for each rate type except vacant land reflects this.

Land Use Table Year Average Valuation $ Rate Charge $ Residential: residential dwellings, flats, units 2014-15 309,423 0.003307

2015-16 318,422 0.003375 Commercial: Retail shops, professional services e.g. accounting, legal, engineering, etc.

2014-15 454,246 0.005050 2015-16 455,013 0.005282

Industry – Light: Vehicle repairs, workshops 2014-15 295,416 0.005258 2015-16 297,156 0.005486

Primary Production: Agriculture, livestock, horticulture, commercial forestry

2014-15 510,050 0.0033462 2015-16 519,826 0.003375

Vacant Land: Vacant allotments 2014-15 157,139 0.005900 2015-16 164,357 0.006148

Other: Government agencies, education, public utilities 2014-15 356,360 0.005360 2015-16 359,013 0.005610

Industry – Other: Wineries, manufacturing 2014-15 2,273,707 0.014738 2015-16 2,282,859 0.015447

In order to obtain an average valuation, the data did not include past assessments that were removed and/or new assessments in 2015-16. The calculations are based on the average valuation as at week 42 from the Valuer General, as shown above and growth from development is not included in the average valuations. Individual assessments may vary from these amounts.

State Government Levies The Barossa Council collects a regional Natural Resource Management (NRM) Levy on behalf of two regional NRM Boards on all rateable properties. In this capacity, Council is operating as a revenue collector for the State Government and does not retain the revenue or determine how it is spent. Further information is available from the relevant State Government agencies.

Mandatory Rebates Council is required under the Local Government Act 1999 to rebate rates payable on some land. Specific provisions are made for land used for specific purposes, e.g. health services, public cemeteries and educational institutions.

Discretionary Rebates Discretionary rebates may be applied by the Council on land used for community purposes under Section 166 of the Act. Application forms giving full criteria are available from Council.

Residential Rate Capping Council offers a rebate of general rates to the principal ratepayer where the increase in general rates levied upon a property exceeds the 2014-15 general rates levied by more than:

7.5% for ratepayers on fixed government incomes;

15% for other ratepayers Application forms with eligibility criteria are available from Council’s Principal Office or any branch office.

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Concessions and Postponement In order to support ratepayers who are in receipt of fixed incomes, a number of concessions are available for eligible pensioners and self-funded retirees. These concessions are administered by the Department for Communities and Social Inclusion (DCSI) who determine eligibility and pay the concession. Concessions are only available on the principal place of residence. In 2015-16 it is expected that the Council rate concession (last year at 60% to a maximum of $190) will be paid directly to eligible pensioners. Any sewerage concession will continue to be paid to Council by DCSI and will be shown as a deduction from the rates. In addition and in accordance with the Local Government Act 1999, persons who hold a Seniors Card may apply to postpone payment for any amount in excess of $500 ($125 per quarter), less any concession entitlement for their principal place of residence. The Barossa Council encourages ratepayers who are experiencing difficulties in paying rates to contact Council on (08) 8563 8444 to discuss support that may be available to alleviate any financial hardship. Such enquiries are treated confidentially by Council.

Paying Your Rates Council provides for quarterly payment of rates in September, December, March and June each year. Payments can be made via Australia Post Billpay, B-Pay, via Council’s website (www.barossa.sa.gov.au), by mail, or by cash/cheque/EFTPOS over the counter at the Nuriootpa or branch offices.

Expected Impact on Ratepayers Consistent with Council’s adopted Long Term Financial Plan 2014-15 to 2023-24, the 2015-16 Annual Budget and Business Plan reflects an overall increase of 4.5% for general rate revenue with a further 1.74% from new property growth being required to fund the recurrent services, activities and major works program incorporated within the plan. For more information on

the rate revenue increases please refer to the Long Term Financial Plan section in this document. The following table incorporates the proposed overall rating and its impact using average valuations as shown in the Land Use Table (on the previous page); rate changes for individual assessments will likely vary from these amounts.

Understanding the Numbers The Residential CWMS Service charge will increase from $300 to $306 and the service rate has been removed. The Springton residential service charge will increase from $290 to $306 (to bring it into line with other schemes). The Non-Residential CWMS service rate for each of the townships has been increased to $0.001197. Many Springton properties are charged a capital contribution of $245 for a 15 year period. An annual service charge of $55 is applied to vacant allotments in Springton and an annual service charge of $100 is applied for all other vacant allotments where CWMS is available but not connected. The CWMS rate service charges will raise $2.43m, adding to other revenue for a total CWMS income amount of $2.68m for 2015-16. The operating expenditure for the same period is expected at $2.55m generating a surplus of $0.13m. This surplus is used towards capital expenditure to ensure the services are maintained and grow with service demands into the short to medium term. Total expenditure for CWMS renewal, replacement, new and upgrades at $1.5m. CWMS charges are shown in the following chart. The Refuse collection service rate has been increased by 5.00 % on 2014-15 charges from $108.00 to $113.40 for a 140 litre bin and from $147.10 to $154.50 for a 240 litre bin. The Recycling collection service rate has also increased from $51.90 to $54.50 – 240 litre bin. The two service rates are shown together in the following chart under Refuse/Recycling.

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Rates for Land Use Categories based on Average Valuation (see table on page 23)

In the table below, “Rex” refers to the Aquatic & Fitness Centre separate rate.

Type Year General

Rates Fixed

Charge CWMS Refuse/

Recycling “Rex” Total

Residential 2014-15 $1,023.30 $300.00 $300.00 $159.90 $59.80 $1,843.00 2015-16 $1,074.70 $316.00 $306.00 $167.90 $0.00 $1,864.60

Commercial 2014-15 $2,293.90 $300.00 $542.60 $159.90 $150.20 $3,446.60 2015-16 $2,403.40 $316.00 $544.70 $167.90 $0.00 $3,432.00

Industry - Light

2014-15 $1,553.30 $300.00 $352.90 $159.90 $97.70 $2,463.80 2015-16 $1,630.20 $316.00 $355.70 $167.90 $0.00 $2,469.80

Primary Production

2014-15 $1,706.70 $300.00 $0.00 $159.90 $36.70 $2,203.30 2015-16 $1,754.40 $316.00 $0.00 $167.90 $0.00 $2,238.30

Vacant Land 2014-15 $927.10 $300.00 $100.00 $0.00 $0.00 $1,327.10 2015-16 $1,010.50 $316.00 $100.00 $0.00 $0.00 $1,426.50 Other 2014-15 $1,910.10 $300.00 $0.00 $159.90 $117.80 $2,487.80

2015-16 $2,014.10 $316.00 $0.00 $167.90 $0.00 $2,498.00 Industry - 2014-15 $33,509.90 $300.00 $0.00 $50.40 $1,753.00 $35,613.30 Other 2015-16 $35,263.30 $316.00 $0.00 $54.50 $0.00 $35,633.80 Note: Rates have been calculated using information from the Land Use table on Page 23.

Land Use Code Year Total Rates % Average Total

Increase

Residential 2014-15 1843.002015-16 1864.60 1.17%

Commercial 2014-15 3446.602015-16 3432.00 -0.42%

Industry - Light 2014-15 2463.802015-16 2469.80 0.24%

Primary Production 2014-15 2203.302015-16 2238.30 1.59%

Vacant Land 2014-15 1327.102015-16 1426.50 7.49%

Other 2014-15 2487.802015-16 2498.00 0.41%

Industry - Other 2014-15 35613.302015-16 35633.80 0.06%

Percentage increase in Rates & Charges for Land

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Measuring Our Performance Measuring and monitoring performance is important to ensure our objectives are achieved and services are delivered to our community. Council monitors financial performance through its Business Planning Framework (see the section entitled “Strategic Directions” above). This includes:

Monthly Financial Reports which regularly track Council finances;

Quarterly Budget Reviews which outline financial performance against the Annual Budget and Business Plan;

Audited Financial Statements which are included in the Annual Report as required under the Local Government Act 1999;

the Annual Report which describes the performance of Council on objectives set in the Annual Budget and Business Plan;

Council’s Strategic Plan 2011-2015 which lays out the long term objectives and strategies Council is striving to achieve.

To provide advice and recommendations on financial and governance matters, Council has appointed an Audit Committee which includes independent members with qualifications and experience in related disciplines.

Key Performance Indicators Council has a number of financial Key Performance Indicators (KPI’s) which measure the impact of the annual budget on Council’s financial position. Each of these indicators, together with associated comments, is outlined below: Legend: Target

Not Met Target At Risk

Target Met

Forecast is the third Budget Update (Q3) for the year, adopted by Council at the May 2015 meeting and material financial information received since that time has been included. The Key Performance Indicator: Asset Consumption Ratio is no longer showing within this report. The Local Government (Financial Management) Regulations 1999 no longer require the inclusion of this KPI with the budget estimates.

Key Performance Indicator: Operating Result ($’000) Council has set the following target - To achieve an operating break-even position, or better, over any five year period. Individual periods are shown; refer to the long term financial plan section in this document for a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 148 78 (123) 145 Status

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Key Performance Indicator: Operating Surplus/(Deficit) Ratio Expresses the projected Operating Surplus/(Deficit) result as a percentage of general rate revenue. Council has set the following target - To achieve an operating surplus ratio of between -2% to 10, over a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 0.6% 0.3% -0.5% 0.5% Status

Key Performance Indicator: Net Financial Liabilities ($’000) Council has set the following target - Council's level of net financial liabilities is no greater than its annual operating revenue and not less than zero. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 13,143 13,986 15,384 16,567 Status

Key Performance Indicator: Net Financial Liabilities Ratio Expresses the projected Net Financial Liabilities as a percentage of total operating revenue for each year. It is Council policy (and industry best practice) that this ratio shall not exceed 100%. Council has set the following target - Net financial liabilities ratio is greater than zero but less than 100% of total operating revenue. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 42% 43% 46% 47% Status

Key Performance Indicator: Interest Cover Ratio Expresses the net interest expense (i.e. interest expense less investment income) as a percentage of total operating revenue. Council has set the following target - Net interest is greater than 0% and less than 8% of operating revenue. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 3.1% 3.0% 2.9% 2.7% Status

Key Performance Indicator: Asset Sustainability Ratio Expresses the rate by which assets are wearing out and being replaced by comparing capital outlays on renewal/replacement of existing assets (net of any proceeds from the sale of replaced assets) to the annual depreciation expense allocated against such assets. Council has set the following target - Capital outlays on renewing/replacing assets net of proceeds from sale of replaced assets is greater than 80% but less than 110% of Infrastructure Asset Management Plans over a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 98% 81% 85% 98% Status

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Operating Expenditure The following graphs show operating expenditure proposed for the 2015-16 year and for the third Budget Update 2014-15 by the following functions: Administration, Business Undertakings, Community Amenities, Community Support, Cultural Services, Economic Development, Environment, Health Services, Library Services, Public Order and Safety, Recreation, Regulatory Services, Transport, Waste Management. (Full Cost Attribution has not yet been applied to the 2015-16 budget graph.)

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Non - Financial Measures Council is reviewing its Key Performance Indicators to improve the measurement of performance. This is part of Council’s Strategic Plan, as well as continuous improvement initiatives related to Council’s Business Planning Framework. Non-financial indicators measuring the performance of Council in relation to the Annual Business Plan can be found below.

They provide information with regards to Council’s capacity to effectively deliver services to our community, and the targets Council intends to meet. Council’s performance against these indicators is then reported in the Annual Report.

Indicator Purpose Target

People Employee Retention Rate (annual trend) Measure of organisational capacity 90%

Systems and Processes Percentage of Business Unit Plan activities on track

Measure of delivery of services and programs planned

>95% completed or on track

Finance Management & Regulatory Financial reporting meeting scheduled timetable, including monthly (12), quarterly (4) & annual (3)

Measure that information is presented at a strategic level, succinct and easy to follow and available to all stakeholders within deadlines

Target 100%

Internal control compliance Measure number of risk areas being checked for compliance and existence of controls

Target 90%

Assets Percentage of Capital Renewal Program scheduled works on track

Measures Capital Works Program, Capital new Initiatives, and other scheduled capital programs against projected completion times

Actual to be consistent with Annual Budget projections at least 90& achieved.

Percentage of customer requests responded to in accordance with the Request for Service Policy

Measures all requests through Council’s customer request system, and all complaints lodged with Council’s regulatory systems

90%

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Annual Budget

Budgeted Financial Statements 2015-16 The following pages contain Council’s budgeted financial statements, including the Nuriootpa Centennial Park Authority, in a format consistent with the requirements of Regulation 5B of the Local Government (Financial Management) Regulations, comprising for the year ending 30 June 2016:

Statement of Comprehensive Income

Balance Sheet Statement of Changes in Equity Cash Flow Statement

Uniform Presentation of Finances Please note: the format of the following Financial Statements is based on the 2014 Model Financial Statements.

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Long Term Financial Plan 2015-16 to 2024-25

Introduction and Assumptions Under Section 122 of the Local Government Act 1999, Councils are required to have a Long Term Financial Plan (for a minimum period of 10 years) as part of their suite of Strategic Management Plans. This document subsequently reflects an annual review of Council’s Long Term Financial Plan and acts as a starting reference point in the formulation of Council’s 2015-16 Annual Budget & Business Plan. The Long Term Financial Plan is designed as a ‘high-level’ document that summarises the future planning of Council’s financial operations – particularly in relation to key components such as rate movements, service levels to our community, major infrastructure asset replacement/renewal, loan indebtedness and internal cash reserves.

On this basis and given the ‘high-level’ nature of the document, the Plan has been developed based on a number of key assumptions previously discussed and endorsed by Council. Further, Council has also previously endorsed a number of strategic financial policies which have also driven the formulation of the Plan.

Section 122 of the Local Government Act also prescribes that Councils must have a long term Infrastructure and Asset Management Plan to guide the future replacement, renewal and maintenance of our significant fixed asset base. Council’s Infrastructure and Asset Management Plan was adopted by Council in 2012 – with an ongoing review process to provide improved asset data and information.

Consequently, in recognition of this, it is appropriate that a cautious and conservative approach be undertaken with financial modelling as part of the update to the Long Term Financial Plan. With a significant fixed asset base, being predominantly comprised of major community infrastructure such as roads, footpaths, stormwater drainage and community wastewater management systems, it is imperative that

there is an appropriate link and consistency between the Infrastructure and Asset Management Plan and the Long Term Financial Plan – towards ensuring that the Long Term Financial Plan provides for the necessary capital outlays (as identified in the Infrastructure and Asset Management Plan) for the renewal and replacement of existing community assets – herein referred to as ‘non-discretionary’ capital expenditure. General Assumptions

Long term financial plans have been prepared for each of the following areas to measure and check financial sustainability: CWMS; Waste; Nuriootpa Centennial Park Authority (NCPA); all other Council operations and a consolidated LTFP

The NCPA operational LTFP is based on the 2015-16 budget year using Council indexing. The capital budget as provided by NCPA has been reduced to ensure the cash position is maintained

The SA Local Government Price Index as at March 2015 of 1.4%

The LTFP reflects existing recurrent service levels to our community being maintained. Council’s budget process considers on-going Services Delivery and Commitments and New Expenditure items or Initiatives

For New Initiatives (NI’s) over $100,000, a Due Diligence Report – level 2 is prepared to assess the financial commitment in order that current and future budgets are accurate and that Council has full information regarding the financial risks of their decisions

All discretionary NI’s were then assessed using a Bid Analysis Tool and given a score against set criteria.

Operations

General Rate Revenue increments have been reviewed to ensure funding and service level provision is maintained in line with sustainability

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requirements. (Increments are listed in the Financial Parameters following this report.)

Operating Cost – Employee, Contractors & Materials have been increased at an index rate plus half of the rates growth 1.0%.

Selected operating costs have been isolated from general expenditure, eg. energy use for electricity, water costs, insurance premiums, and waste collection and disposal service costs. The projected increases for these are higher than the base rate.

Depreciation has been calculated on existing asset classes, structures, valuation and condition rating; asset componentisation has been included as appropriate to selected asset types. A review of useful lives of transport assets and components is included within this review.

Rubble raising cost at $328k in 2015-16 with remaining stock to be used in the years following.

Section 41 Committees operational budgets are included in the 2015-16 budget and throughout the LTFP.

Roads to Recovery grant funding of $328k per year is confirmed for a five year period but has been included for the life of the LTFP. In 2015-16 an additional $328k has been added to the capital expenditure program and income as a one-off item.

Staff levels will remain constant with only minor changes included and overall increases projected to be in line with Enterprise Bargaining Agreements.

Full Cost Attribution - an allocation of internal services to external services has been estimated in the LTFP. This allocation does not affect the overall net result.

Capital

Asset Renewal and/or Replacement expenditure is provided for on various buildings, for the reseal and resheeting works on Council roads and other infrastructure.

Discretional Capital expenditure has been included at $350k per year from 2016-17 to 2020-21 and an increased amount for the remaining years.

Capital Grants in this review only include estimation for funding allocation for library books.

Council has identified land and building assets considered surplus both for the needs of the community and its operations. These surplus assets have been identified through an appropriate process, including consultation with the Community and the State Government.

A reduction has been included for purchase of selected plant and equipment expenditure in the years 2015-16 to 2017-18 and reinstated in the year 2021-22 to remain in a net positive cash position.

Loan Principal & Interest Repayment

The loan from Council to NCPA for $650k included in the LTFP is repaid starting from the 2015-16 year at $65k each year. Other external loans are then included for NCPA to purchase cabins and other

assets, these loans repayments start by NCPA from 2018-19.

An internal loan of $2.9m is required to ensure Council general operations meet financial sustainability indicators. The loan is transferred from the CWMS operations reserve with repayments made within the 10 year plan.

No other new external loans are included in this Plan. This is reflected in the reducing Net Financial Liabilities Ratio.

Council loan total for this plan is $17m as at 30 June 2015.

Key Performance Indicators

Council has established targets for the three Key Performance Indicators (KPI’s) as recorded within the LTFP document, as follows: KPI - No. 1 Achieve an operating breakeven

position, or better, over any five year period KPI - No. 2 Achieve an operating surplus ratio of

between -2% to 10% KPI - No. 4 Net financial liabilities ratio is greater

than zero but less than 100% of total operating revenue.

KPI - No. 6 Capital outlays on renewing/replacing assets net of proceeds from sale of replaced assets is greater than 80% but less than 110% of Infrastructure Asset Management Plans over a rolling 3 year period.

Financial Sustainability Performance Report

KPI - No. 1 - It is noted that for years cumulative 2015-16 to 2019-20 are within a surplus position.

KPI No. 2 - Operating surplus ratios have been amended and are now measured against total operating revenue. Council’s expected forecast results are within the target range.

KPI - No. 6 - the KPI target is being met in this review of the LTFP. As further reviews of planned expenditure from the Infrastructure and Asset Management Plan are undertaken, then a full assessment and measurement of the KPI will be done.

All other KPI’s are within the target ranges.

Council has reviewed its financial parameters for the LTFP including the indexation used for forward projections on income and expenditure. A full list is contained in the following tables.

In line with Council Policy a regular review of Council’s treasury management will be required to ensure a positive cash position is maintained.

This analysis indicates that The Barossa Council is currently financially sustainable for the forecast period covered by the LTFP. Noting that unless significant additional operating revenue is generated, or expenses and service levels are reduced, the Council does not have the capacity to financially undertake major additional discretionary proposed projects or services over the 10 year period, (other than the discretionary amount included within the plan).

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Financial Sustainability The Barossa Council is committed to the principles of financial sustainability. The importance of financial sustainability is to ensure that each generation ‘pays their way’, rather than any generation ‘living off their assets’ and leaving it to future generations to address the issue of repairing worn out infrastructure. Such issues are frequently referred to as ‘intergenerational equity’. With community infrastructure such as roads, footpaths, and stormwater drainage comprising a major proportion of Council’s balance sheet, it is important that Council implement appropriate strategies towards the effective upkeep of such assets – so that the maintenance and renewal of such assets is fairly and equitably funded from current ratepayers (i.e. general rate income) and future ratepayers (long term loan borrowings). Given the importance of ensuring financial sustainability of Council operations in the longer term, it is a legislative requirement that individual councils adopt Long Term Financial Management and Infrastructure and Asset Management Plans (minimum 10 years) as part of future planning. The Long Term Financial Plan is designed as a ‘high-level’ summarised document towards the future planning of Council’s financial operations – particularly in relation to key components such as rate movements, service levels to our community, major infrastructure asset replacement/renewal, loan indebtedness and internal cash reserves. Council conducts an annual review of its Long Term Financial Plan. Council’s initial ‘high-level’ Infrastructure and Asset Management Plan was adopted by Council in November 2012 – with the Plan outlining a scheduled improvement process to further develop and enhance the Plan to a more comprehensive and detailed level over a four year period. To ensure each generation ‘pays its way’, it is subsequently crucial that current ratepayers effectively

fund the current net cost of services provided and community assets consumed. Without this being achieved (i.e. an operating deficit), future generations are effectively subsidising the current cost of service provision and asset consumption. Based on this, the financial sustainability of a Council is measured by the surplus/deficit (before capital revenues) disclosed in the Income Statement financial report – with a consistent breakeven or operating surplus result indicative of a Council that is financially sustainable in the long term. Other financial sustainability indicators recommended by the Financial Sustainability Inquiry and endorsed by The Barossa Council, are separately included within this report.

Our Financial Principles As part of its commitment to financial sustainability, Council operates under the following key financial principles in preparing the Annual Business Plan:

Ongoing education and training such that all Council Members and Staff understand and fulfil their financial governance responsibilities

Policies and practices that support decision making and assessment of performance

Budget and financial information is presented at a strategic level, succinct and easy to follow

Budget and financial information is based on the Long Term Financial Plan

The Asset Management Plans are maintained and reflect whole of life costs

The Rating strategy is equitable and generates sufficient revenue to meet financial needs

Financial performance is managed using suitable financial indicators and targets

A robust audit and internal control process is in place to ensure effective financial and governance compliance

Information provided to the community is open, transparent and relevant

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Appendix

Key Performance Indicators and Financial Parameters

A1

Long Term Plan Financial Statements 2015-16 to 2024-25

A2

Capital Expenditure A3

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A1 Consolidated Results: Key Performance Indicators and Financial Parameters OB = Original Budget; LTFP = Long Term Financial Plan 2015-16

LTFP % 2016-17 LTFP %

2017-18 LTFP %

2018-19 LTFP %

2019-20 LTFP %

2020-21 LTFP %

2021-22 LTFP %

2022-23 LTFP %

2023-24 LTFP %

2024-25 LTFP %

Key Performance Indicators (KPI’s) - Summary

KPI 1 - Operating Surplus cumulative forward 5 year period* 145 145 371 953 1,694

KPI 2 – Operating Surplus Ratio – rolling 3 year 0.1% 0.0% 0.3% 0.7% 1.3% 1.6% 1.5% 1.6% 1.6% 1.9%

KPI 4 – Net Financial Liabilities ratio 47.1% 42.9% 37.6% 31.9% 25.9% 20.5% 15.0% 8.4% 2.6% -2.9% KPI 6 – Asset Sustainability Ratio – rolling 3 year 97.5% 108.1% 92.0% 90.7% 94.7% 98.7% 103.6% 105.5% 108.4% 107.4%

Financial Parameters - Indexation

RATE REVENUE INCREASES

Residential – General Rate Revenue Increase 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

Non-Residential – General Rate Revenue Increase 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

General – Rate Revenue Increase Net (excl growth) 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

Natural Growth – Development 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Separate Rate – The REX Ended - 2014-15

CWMS – Rate revenue Increase (excl growth) 2.0% 2.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.0% 3.0%

Waste Services – Rate Revenue Increase (excl growth) 5.0% 6.5% 6.5% 5.5% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5%

OPERATING REVENUE

Operating Grants 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Statutory Charges 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

User Charges 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Investment Income 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Reimbursements 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Other Revenue 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

OPERATING EXPENDITURE

Service Cost Natural Growth** 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Employee Costs 3.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Contracts, Materials & Other 2.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% Power Costs 2.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Water Costs 1.1% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Insurance 5.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

ASSET REVALUATION INCREMENTS

Land Assets 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Building Assets 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%

Recreation Assets 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Infrastructure Assets 1.5% 1.5% 1.5% 1.5% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0%

CWMS 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Stormwater Assets 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%

* All amounts in KPI 1 are in $’000 **Index added to Employee Costs and Contracts, Materials & Other

44


A2-1 Consolidated Results: Budgeted Income Statement OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 REVENUES Rates 27,206 28,677 30,136 31,527 32,809 33,998 35,218 36,482 37,775 39,114 Statutory Charges 626 639 652 665 678 692 705 720 734 749 User Charges 2,667 2,796 2,892 2,986 3,061 3,138 3,219 3,301 3,387 3,412 Grants, subsidies and contributions 2,870 2,595 2,620 2,666 2,713 2,760 2,809 2,859 2,909 2,961 Investment Income 213 92 56 60 54 65 77 145 185 197 Reimbursements 514 524 534 545 556 567 578 590 602 614 Other Income 540 552 563 574 586 597 609 622 634 647 Net Gain – Joint Venture 0 0 0 0 0 0 0 0 0 0 TOTAL INCOME 34,636 35,875 37,453 39,023 40,457 41,817 43,215 44,719 46,226 47,694 EXPENSES

Employee Costs 12,190 12,571 13,037 13,497 13,965 14,451 14,953 15,472 16,010 16,541 Materials, Contracts & Other Expenses 13,897 14,318 14,980 15,438 15,952 16,606 17,267 17,509 18,149 18,610 Depreciation, Amortisation & Impairment 7,254 7,941 8,278 8,702 9,122 9,564 10,035 10,487 10,948 11,410 Finance Costs 1,150 1,045 932 804 677 556 441 363 306 165 Net Gain – Joint Venture 0 0 0 0 0 0 0 0 0 0 TOTAL EXPENSES 34,491 35,875 37,227 38,441 39,716 41,177 42,696 43,831 45,413 46,726 OPERATING SURPLUS / (DEFICIT) 145 0 226 582 741 640 519 888 813 968 Asset disposal & fair value adjustments (645) (547) (547) (604) (643) (674) (705) (757) (776) (817) Amounts specifically for new or upgraded assets 1,202 282 336 350 442 152 157 163 170 176 Physical Resources received free of charge 100 1,846 1,594 1,640 1,692 1,744 1,797 1,850 1,904 1,959 Operating result from discontinued operations

NET SURPLUS / (DEFICIT) 802 1,581 1,609 1,968 2,232 1,862 1,768 2,144 2,111 2,286 Transfer to Equity Statement Other Comprehensive Income Changes in revaluation surplus – infrastructure, property. Plant & equipment

- - - - - - - - - -

Total Other Comprehensive Income 0 0 0 0 0 0 0 0 0 0 TOTAL COMPREHENSIVE INCOME 802 1,581 1,609 1,968 2,232 1,862 1,768 2,144 2,111 2,286

45


A2-2 Consolidated Results: Budgeted Balance Sheet OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 ASSETS Current Assets Cash and cash equivalents 1,864 983 730 443 541 669 1,408 3,307 5,281 5,342 Trade & other receivables 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 Other financial assets 7 7 7 7 7 7 7 7 7 7 Inventories 129 129 129 129 129 129 129 129 129 129

4,956 4,075 3,822 3,535 3,633 3,761 4,500 6,399 8,373 8,434 Non-Current Assets held for Sale 0 0 0 0 0 0 0 0 0 0

Total Current Assets 4,956 4,075 3,822 3,535 3,633 3,761 4,500 6,399 8,373 8,434 Non-Current Assets Financial Assets 642 642 642 642 642 642 642 642 642 642 Equity accounted investments in Council businesses 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 Infrastructure, Property, Plant & Equipment 302,829 310,952 318,913 327,099 335,450 343,704 351,881 359,991 368,418 376,636 Other Non-Current Assets 0 0 0 0 0 0 0 0 0 0

Total Non-Current Assets 305,194 313,317 321,278 329,464 337,815 346,069 354,246 362,356 370,783 379,001

TOTAL ASSETS 310,150 317,392 325,100 332,999 341,448 349,830 358,746 368,755 379,156 387,435 LIABILITIES Current Liabilities Trade & other payables 3,124 3,112 3,115 3,110 3,110 3,122 3,143 3,176 3,219 3,253 Borrowings 1,997 2,046 1,817 1,720 1,623 1,195 668 703 3,244 306 Provisions 2,410 2,415 2,420 2,425 2,431 2,437 2,443 2,449 2,455 2,461

Total Current Liabilities 7,531 7,573 7,352 7,255 7,164 6,754 6,254 6,328 8,918 6,020 Non-Current Liabilities Trade & other payables 0 0 0 0 0 0 0 0 0 0 Borrowings (External) 13,615 11,765 10,416 8,574 6,811 5,457 4,611 3,708 500 259 Provisions 650 650 650 650 650 650 650 650 650 650

Total Non-Current Liabilities 14,265 12,415 11,066 9,224 7,461 6,107 5,261 4,358 1,150 909 TOTAL LIABILITIES 21,796 19,988 18,418 16,479 14,625 12,861 11,515 10,686 10,068 6,929 NET ASSETS 288,354 297,404 306,682 316,520 326,823 336,969 347,231 358,069 369,088 380,506

EQUITY Accumulated Surplus 63,066 64,542 66,281 68,400 70,589 72,559 73,645 75,250 77,098 78,533 Asset Revaluation Reserve 220,037 227,506 235,175 243,045 251,116 259,400 267,894 276,588 285,496 294,628 Other Reserves 5,251 5,356 5,226 5,075 5,118 5,010 5,692 6,231 6,494 7,345 TOTAL EQUITY 288,354 297,404 306,682 316,520 326,823 336,969 347,231 358,069 369,088 380,506

46


A2-3 Consolidated Results: Budgeted Statement of Cash Flows OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts: Operating Receipts 34,423 35,782 37,397 38,963 40,403 41,752 43,138 44,573 46,041 47,497 Investment Receipts 213 92 56 60 54 65 77 145 185 197 Payments: Operating Payments to Suppliers & Employees (26,085) (26,884) (28,012) (28,930) (29,912) (31,051) (32,214) (32,975) (34,152) (35,145) Finance Payments (1,150) (1,045) (932) (804) (677) (556) (441) (363) (306) (165)

Net Cash Provided by (or used in) Operating Activities 7,401 7,945 8,509 9,289 9,868 10,210 10,560 11,380 11,768 12,384

CASH FLOW FROM INVESTING ACTIVITIES Receipts: Amounts Specifically for New or Upgraded Assets 1,202 282 336 350 442 152 157 163 170 176 Sale of Replaced Assets 262 487 293 474 553 524 646 788 664 737 Sale of Surplus Assets 0 0 0 0 0 0 0 0 0 0 Net Return of Investment Securities 0 0 0 0 0 0 0 0 0 0 Repayment of Loans by Community Groups 0 0 0 0 0 0 0 0 0 0 Payments: Expenditure on Renewal/Replacement of Assets (5,431) (5,137) (4,839) (5,833) (6,321) (6,196) (7,444) (7,440) (7,459) (7,840) Expenditure on New/Upgraded Assets (4,628) (2,663) (2,980) (2,634) (2,590) (2,787) (1,813) (2,131) (2,509) (2,217) Net Purchases of Investment Securities 0 0 0 0 0 0 0 0 0 0 Loans Made to Community groups 0 0 0 0 0 0 0 0 0 0

Net Cash Provided by (or used in) Investment Activities (8,595) (7,031) (7,190) (7,643) (7,916) (8,307) (8,454) (8,620) (9,134) (9,144)

CASH FLOWS FROM FINANCING ACTIVITIES Receipts: Proceeds from Borrowings 297 137 409 0 0 0 0 0 0 0 Proceeds from internal Borrowings (NCPA) 0 0 0 0 0 0 0 0 0 0 Proceeds from internal Borrowings (CWMS) 2,150 800 0 15 0 0 0 0 0 0 Payments: Repayment of Borrowings (1,811) (1,932) (1,981) (1,933) (1,854) (1,775) (1,367) (861) (660) (3,179) Repayment of Finance Lease 0 0 0 0 0 0 0 0 0 0 Repayment of Internal Borrowings (CWMS) (2,150) (800) 0 (15) 0 0 0 0 0 0 Repayment of internal borrowings (NCPA) 0 0 0 0 0 0 0 0 0 0

Net Cash Provided by (or used in) Financing Activities (1,514) (1,795) (1,572) (1,933) (1,854) (1,775) (1,367) (861) (660) (3,179)

Net Increase (Decrease) in Cash held (2,708) (881) (253) (287) 98 128 739 1,899 1,974 61 Cash at beginning of Period 4,572 1,864 983 730 443 541 669 1,408 3,307 5,281 CASH AT END OF PERIOD 1,864 983 730 443 541 669 1,408 3,307 5,281 5,342

47


A2-4 Consolidated Results: Uniform Presentation of Finances OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 Operating Revenues 34,636 35,875 37,453 39,023 40,457 41,817 43,215 44,719 46,226 47,694 Less Operating Expenses (34,491) (35,875) (37,227) (38,441) (39,716) (41,177) (42,696) (43,831) (45,413) (46,726)

Operating Surplus / (Deficit) 145 0 226 582 741 640 519 888 813 968

Less Net Outlays on Existing Assets Capital Expenditures on Renewal and Replacement of Existing Assets

5,431 5,137 4,839 5,833 6,321 6,196 7,444 7,440 7,459 7,840

Less Depreciation, Amortisation and Impairment (7,254) (7,941) (8,278) (8,702) (9,122) (9,564) (10,035) (10,487) (10,948) (11,410) Less Proceeds from Sale of Replaced Assets (262) (487) (293) (474) (553) (524) (646) (788) (664) (737)

(2,085) (3,291) (3,732) (3,343) (3,354) (3,892) (3,237) (3,835) (4,153) (4,307)

Less Net Outlays on new and Upgraded Assets Capital Expenditure on New and Upgraded Assets 4,628 2,663 2,980 2,634 2,590 2,787 1,813 2,131 2,509 2,217 Less Amounts Received Specifically for New and Upgraded Assets

(1,202) (282) (336) (350) (442) (152) (157) (163) (170) (176)

Less Proceeds from Sale of Surplus Assets 0 0 0 0 0 0 0 0 0 0

3,426 2,381 2,644 2,284 2,148 2,635 1,656 1,968 2,339 2,041 Net Lending / (Borrowing) for Financial Year (1,196) 910 1,314 1,641 1,947 1,897 2,100 2,755 2,627 3,234

48


A3 Consolidated Results: Budgeted Capital Expenditure OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 Renewal/Replacement Capital Summary: Non-Discretionary Land 0 0 0 0 0 0 0 0 0 0 Buildings 203 253 293 259 263 266 569 579 690 700 Recreation 842 30 30 30 30 30 30 30 30 30 Transport – Roads & Footpaths 2,869 3,107 3,262 3,361 3,594 3,773 3,961 4,158 4,365 4,582 Stormwater, Bridges & Floodplain 122 0 300 17 392 0 300 300 300 300 CWMS 169 228 104 143 99 101 157 157 101 101 Equipment – Plant & Vehicles 1,226 1,519 850 2,023 1,943 2,026 2,427 2,216 1,973 2,127 Other Assets – Inc. Library books 0 0 0 0 0 0 0 0 0 0

Note: includes internal allocations 5,431 5,137 4,839 5,833 6,321 6,196 7,444 7,440 7,459 7,840

New/Upgrade Capital Summary: Discretionary Land 0 0 0 0 0 0 0 0 0 0 Buildings (Inc. Discretionary spend $350k per year) 876 674 884 350 350 350 500 500 500 700 Recreation 766 70 70 70 70 70 70 70 70 70 Transport – Roads & Footpaths 1,161 80 80 204 215 221 228 236 243 252 Stormwater, Bridges & Floodplain 491 936 641 615 660 701 320 330 250 250 CWMS 1,298 1,420 1,535 1,643 1,559 1,725 993 1,307 1,774 1,293 Equipment – Plant & Vehicles 36 0 2 0 0 0 0 0 0 0 Other Assets 0 0 0 0 0 0 0 0 0 0

Note: including donated assets 4,628 3,180 3,212 2,882 2,854 3,067 2,111 2,443 2,837 2,565

TOTAL CAPITAL EXPENDITURE 10,059 8,317 8,051 8,715 9,175 9,263 9,555 9,883 10,296 10,405

49

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