Minutes of Special Meeting

Buloke Shire Council Special Meeting Minutes Wednesday, 28 August 2013

5.1.2 Adoption of Council Plan 2013 - 2017

Attachment 1 Draft Council Plan 2013 - 2017

Council Plan

2013 – 2017

Adopted August 2013

Where to Contact Us

Wycheproof District Office

367 Broadway, Wycheproof, Victoria, 3527

Hours: 8.30 am – 5 pm, Monday to Friday

Birchip District Office

Cumming Avenue, Birchip, Victoria, 3483

Hours: 8.30 am – 5 pm, Monday to Friday

Charlton District Office

High Street, Charlton, Victoria, 3525

Hours: 8.30 am – 5 pm, Monday to Friday

Donald District Office

McCulloch Street, Donald, Victoria, 3480

Hours: 8.30 am – 5 pm, Monday to Friday

Sea Lake District Office

Calder Highway, Sea Lake, Victoria, 3533

Hours: 8.30 am – 5 pm, Monday to Friday

Closed between 12.15 pm and 1 pm

General Enquiries

Phone: (03) 5478 0100

Email: buloke@buloke.vic.gov.au

Postal Address

PO Box 1

Wycheproof Victoria 3527

Contents

Glossary of Terms 4

Mayor’s Message_ 5

What is the Council Plan? 8

How We Developed the Plan_ 8

How Does the Council Plan Fit in? 10

How Can I Influence Future Development of the Plan? 11

Who we are_ 12

Our Shire_ 12

Our Community_ 12

Our Local Economy_ 13

Buloke in the Future_ 14

Drivers of Change_ 16

The Plan_ 18

Our Vision, Mission and Values 18

Objectives and Strategies for 2013 – 2017_ 21

Strategic Objective 1: Our Community_ 23

Strategic Objective 2: Our Local Economy_ 27

Strategic Objective 3: Our Built Environment 29

Strategic Objective 4: Our Natural Environment 32

Strategic Objective 5: Our People and Organisation_ 35

Strategic Resource Plan 2013 – 2017_ 40

Introduction_ 40

Ten-year Financial Plan_ 41

Financial Statements 43

Human Resource Statement 47

List of Council Plans available to the Community (As at 30 June 2013) 48

List of Community Plans Available for Review (as at 30 June 2013) 49

Buloke Shire – Wards and Councillors 51

Glossary of Terms

COUNCIL PLAN (Strategic Plan)

(Required under the Local Government Act 1989)

Defines Council’s strategy, direction, and the framework within which it makes decisions on allocating its resources to pursue this strategy.

VISION, MISSION AND VALUES

(GUIDING PRINCIPLES)

General statements that define and guide the work that Council undertakes and the future it aspires to.

STRATEGIC OBJECTIVES

(WHAT WE WANT TO ACHIEVE)

High-level statements of the future the Council is aspiring to achieve.

STRATEGIES

(HOW WE WILL ACHIEVE THE STRATEGIC OBJECTIVES)

Programs, projects, plans or activities which must be accomplished in order to achieve a stated strategic objective.

PRIORITIES

Actions Council believes need to be taken to achieve the stated strategies.

CHALLENGES

Opportunities and impediments that need to be addressed in achieving priorities.

STRATEGIC INDICATORS

How we will measure progress in achieving the strategic objectives.

STRATEGIC RESOURCE PLAN (SRP)

(Required under the Local Government Act 1989)

Outlines the resources required to achieve Council's commitments as detailed in the Council's Plan.

MUNICIPAL STRATEGIC STATEMENT (MSS)

(Required under the Planning and Environment Act 1987)

Outlines objectives for the future development and management of land in the municipality, and sets out strategies to achieve these objectives.

HEALTH & WELLBEING PLAN

(Required under the Public Health and Wellbeing Act 2008)

Outlines goals and actions that guide Council in creating a local community in which people can achieve maximum health and wellbeing.

REGIONAL MANAGEMENT FORUM (RMF)

A regular meeting of the regional managers of state government agencies and departments, local government chief executive officers and representatives of Regional Development Australia.

REGIONAL DEVELOPMENT AUSTRALIA (RDA)

A program developed by the Commonwealth Government to assist with the development of regional Australia.

Mayor’s Message

One of the challenges facing an elected Council is how to balance the future needs and aspirations of its community with the realities of managing Council as a business. The situation is Buloke is particularly challenging as can been seen from the several reviews of Council’s financial sustainability undertaken by the State Government over the last several years. Each of these reviews has highlighted the vulnerability of Council’s financial position and highlighted the need for better informed and more fully documented strategies as to how Council plans to improve its financial ‘bottom line’.

Discussion with the Monitor appointed by the Minister for Local Government following the most recent review of Council’s financial position has highlighted the need for Council to think very carefully about how it structures this Plan, particularly in terms of aspirations and economic affordability. From the financial perspective operating deficits that have occurred over the last few years cannot be allowed to continue unaddressed into the future. At the same time the Plan needs to reflect those things that you, the community, have identified as being important looking forward.

We believe this Plan, and the 10 Year Financial Plan that forms part of it represents a significant first step in achieving an objective balance between these two ambitions. We do not claim that the Plan and the 10 Year Financial Plan are perfect, but we do believe they represent a significant step in the right direction.

The Plan we have adopted acknowledges the challenges that you have highlighted to us as facing Buloke in the future. These include:

· the continuing impact of the slow drift of population away from the Shire and the impact this is having on the small towns and small communities that make up the Shire

· the impact of changes to farming practices on assets and facilities under Council’s control

· the likely impact of global factors such as climate change, volatile commodities markets, “peak oil” considerations, international conflicts and uncertain economic conditions

· national and state economic considerations, including the self-imposed austerity measures currently in place aimed at returning Federal and State budgets (on a cash basis) to surplus

· the expectations of the Buloke community that the fullest possible range of local services will continue to be available to them at all stages of their lives and the lives of their families

· the need to moderate rate increases to better reflect local affordability

· the importance of a safe and trafficable local road network to all sections of the local economy and to general liveability

· the level of uncertainty created by increases in the cost of day-to-day living and operating of farm and non-farm based enterprises in the Shire.

At the same time we have acknowledged the need for a more structured approach to our financial planning and have made a number of budget policy guidelines to shape future decision making. These include:

· keeping rates affordable

· recognising the importance of ‘liveability’ as a factor in each of our towns and small villages (particularly in terms of access to basic services)

· agreeing to take on new services only on the basis that they are fully funded

· undertaking more detailed and structured cost benefit analysis of decisions to further invest in existing services, to proposals to change service standards and for new Capital projects

· only include projects in the Forward cpital Works Program if 100% of the funds required for the project are guaranteed, irrespective of the source of the project

These guidelines may not seem to be significant, or perhaps even new, but they are essential to ensuring the balance referred to earlier between meeting community aspirations and economic capacity. From a purely financial perspective Council has, and must, reduce expenditure on its operations, and significantly reduce its capital expenditure. This means that over the next four years Council is projecting no new services, the reduction of some current service levels (where this is both prudent and possible), and no new capital works unless fully funded from external sources (grants and community contributions).

Despite these financial realities, this Plan is about the future. It is about the key proposals Council is committed to achieving over the next four years, proposals based on the feedback and input the Council has received from the Buloke community over the last several years. It necessarily reflects the aspirations and priorities the Buloke community has identified as important through the Community Planning Process, as well as the necessary focus Council must have on the provision of services, the maintenance and improvement of essential infrastructure and the ‘financial bottom line’.

However, as you will see as you read through this Plan we have tried to maintain a focus on what we see as the challenges the Buloke community will need to address over the next few years. Some of these challenges can be best addressed through advocacy on behalf of the Buloke community, others will require the establishment of partnerships with other organisations; still others will require direct lobbying of decision makers at other levels of Government.

We also want this Plan to reflect more than just compliance with State Government legislation; we want it to be part of an ongoing exchange between Council and the Buloke community about the future. A Plan that is dynamic, rather than static. A Plan that is constantly evolving as conditions and community needs change. A Plan that is constantly updated as local needs are better articulated and understood.

To achieve this requires Council to commit to more than just writing a Plan. It will require a change in governance practices, a greater level of transparency and a much stronger commitment to listening to and working with the Buloke community.

My Councillor colleagues and I believe we can do this because of the strength of the partnership base which already exists between the Council and the community. We want to build on this base over the next four years and open up more of the Council’s policy and strategy thinking to the community.

The pace at which this occurs will be dependent upon the level of interest shown by the community and the capacity of Councillors and staff to undertake this change while still complying with the principles of good governance, sound financial management and careful analysis of risk. The Plan should also not be seen in isolation.

This is not the first Council Plan, and it does not stand alone as the only strategic plan that Council is responsible for developing and implementing. Council is in fact responsible for the development and implementation of a wide range of plans, some required by legislation, others just part of the practice of good governance I have referred to earlier. A list of the plans Council is responsible for is included as part of this document. All of the plans listed are available to the community; most can be accessed from Council’s website. We have also included in the Council Plan details of the progress we believe has been made in implementing aspects of this Plan that are relevant to previous plans.

We look forward to working with you to further develop this plan over the next four years.

Cr Reid Mather

Mayor

What is the Council Plan?

The Buloke Council Plan 2013 – 2017 is Council’s four-year Plan. It’s something that the Victorian Government requires all councils to do, but preparation of the Plan is also good business practice and an essential element of good governance.

This Plan includes:

· a statement of desired future (four-year) development of the Shire

· a statement of the vision, mission and values Council sees as the building blocks of the Plan

· a description of the Shire’s population and drivers of change

· a statement of goals, strategic objectives and priorities (action plans) under the following five themes:

− Our Community

− Our Economy

− Our Built Environment

− Our Natural Environment

− Our People and Organisation

· a progress report on actions taken to achieve these objectives over the previous four years (2009 – 2013)

· a financial plan for the next ten years.

The Plan should also not be seen in isolation from the plans of other municipalities in the Loddon Mallee and Wimmera Southern Mallee regions as there are common themes and linkages between the economy, environment and community wellbeing of the Buloke community and the wider region.

While the Victorian Government requires Council to review its Council Plan every four years, and within seven months of a Council election, Council intends to review this Plan at least annually and more frequently if there is significant change to any of the underlying assumptions on which the Plan is based.

How We Developed the Plan

Council receives input and feedback from residents, stakeholders and other levels of Government on a regular basis through a range of sources and interactions both formal and informal. In some cases it these processes involve the whole community, while in others cases it involves key stakeholder groups.

Councillors and Council are also ongoing participants in a wide range of meetings to discuss community aspirations, future strategies, the strengths and weaknesses of current policies and initiatives and future Commonwealth and State Government directions. Examples of this engagement with the community, individuals and stakeholders include:

· facilitated workshops in townships and localities across the Shire

· review of the community plans that have been developed by each of the principal communities that make up the Shire (Charlton, Birchip, Berriwillock, Culgoa, Donald, Nullawil, Nandaly, Sea Lake, Watchem and Wycheproof); details of how to access these community plans are provided later in this Plan

· regular attendance at township forums and progress associations across the Shire

· regular briefings by representatives from township forums, progress associations, Chambers of Commerce and Industry, sporting clubs, committees of management, service clubs and a wide range of other organisations and individuals at monthly meetings advertised to precede Ordinary Council Meetings

· ‘Fire Shed’ meetings with farm-based families to discuss local needs, local conditions and wellbeing

· community meetings in a number of towns to discuss specific projects and matters of concern such as:

o Berriwilllock Community Centre

o Donald Family Services Centre

o Charlton community facilities

o community gardens (Charlton, Donald, Wycheproof and Donald)

o refurbishment of rail stations (Wycheproof and Donald)

o Donald Guides/Angling Club facilities

o road safety (changes to the Road Safety Act)

o rail freight (Victorian Transport Plan)

o police presence in Buloke (meetings in Birchip, Donald and Wycheproof)

o flood recovery (Meetings in Charlton, Donald, Culgoa and Wycheproof)

· consultation on various strategies, including:

o Waste Strategy

o Municipal Fire Management Plan

o Municipal Emergency Management Plan

o Domestic Animal Management Plan

o Positive Aging Strategy

o Disability Action Plan

o review of the Municipal Strategic Statement

o Heritage Amendment

o Economic Development Strategy

o Road Management Plan

o Road Hierarchy

o review of Local Laws

· Community Recovery Committee Meetings (Donald, Charlton and Culgoa).

Council also monitors a wide range of local initiatives and research activities and makes a practice of reviewing the information that arises from these activities. Some of the sources accessed by Council as part of the development of the 2013 – 2017 Council Plan include research and reports prepared by the Birchip Cropping Group, La Trobe University, Loddon Murray Community Leadership Program, North Central Local Learning and Employment Network, Victorian Farmers Federation, Loddon Mallee Regional Management Forum, Wimmera Southern Mallee Regional Growth Plan, Loddon Mallee Regional Growth Plan and Swinburne University.

A Draft of this Council Plan was sent to every household in the Shire and feedback invited from residents on all aspects of the Plan. The Draft Plan was also sent directly to township Forums/Progress Associations and Chambers of Commerce for feedback and comment. The feedback received was considered by Council when finalizing the Plan.

In summary, this Council Plan reflects many months, and in some cases, years of discussion and consultation with the community, with stakeholders and others with an interest in the future of Buloke.

Council acknowledges the Plan will not meet the expectations of everyone in the Shire. Council also acknowledges that it is inevitable as circumstance change some of the objectives, ideas and views expressed in the Plan will become less important, or even irrelevant, as time passes. However, consistent with statements made in the Plan itself, Council’s intent is for the Plan to be dynamic rather than something that is adopted and only brought out once a year as part of the annual budget and annual report preparation process.

How Does the Council Plan Fit in?

Council takes an integrated approach to planning and reporting on its performance, which means there is consistency and alignment of plans so council can work towards long-term goals through its ongoing decision making and operations.

This approach also builds in opportunities for review and renewal to ensure council is responding to what the community is saying and to shifts in the external environment.

The following illustration shows how Council’s plans are linked and reinforce each other.

How Can I Influence Future Development of the Plan?

You can become involved in the further development of this Plan through a number of avenues. You can:

· make a submission using the feedback form provided as part of the mail-out of the draft Plan

· write a letter, or send an email expressing your views

· approach one of your Councillors in the street, or at an appropriate moment to express your view

· talk to a Councillor or Senior Council Officer to address your views on behalf of a club or organisation that you are involved with.

Council will consider all feedback received, and will review the Plan on ongoing basis.

Reviewing the Plan on an ongoing basis will give Council the chance to see where the Shire is heading and what changes need to be made to make sure it’s heading in the direction the community wants.

Who we are

Our Shire

Buloke Shire is located in north-western Victoria, between 210 and 360 kilometres north-west of Melbourne.

Buloke is bounded by Mildura and Swan Hill Rural Cities in the north, Gannawarra and Loddon Shire in the east, Northern Grampians Shire in the south, and Yarriambiack Shire in the west.

Buloke is a predominantly rural area. The main townships are Birchip, Charlton, Donald, Sea Lake and Wycheproof. Smaller townships include Berriwillock, Culgoa, Nandaly, Nullawil and Watchem.

The Shire encompasses a total land area of approximately 8,000 square kilometres. It is approximately 140 kilometres long and 60 kilometres wide.

Two main highways, the Calder Highway and the Sunraysia Highway, run north and south through the Shire.

Land is used largely for agriculture, particularly grain (wheat, oats and barley) production and sheep grazing.

Buloke is named after the “buloke” or “bulloak” tree, Allocasuarina luehmannii, which is common in the area.

Our Community

6,384 people live in 3,260 households in Buloke, making it one of Victoria’s most sparsely populated municipalities.

The community of Buloke is made up of 1,532 (24%) of people over the age of 65; 3,280 (51.5%) between 20 and 64 years; 1,231 (19.2%) between 5 and 19 years; and 339 (5.3%) between 0 and 4 years.

Buloke is a homogenous community with 5,764 (90.3%) of its residents born in Australia.

The Buloke population is stable, with 5,105 residents (74.5%) living in the Shire for at least five years. 889 residents (13.0%) moved to the Shire from another part of Victoria in the last five years. 188 residents (2.7%) moved to the Shire from interstate in the last five years.

The educational qualifications attained by Buloke residents are comparatively less than found in regional Victoria with only 1,542 residents (29.1%) holding post-secondary educational qualifications.

Of the 3,260 households in Buloke, 1,593 (57.4%) are owned outright and 580 (20.9%) are being purchased, which is well above the levels in regional Victoria. The majority of houses (2,591 or 78.4%) are detached dwellings.

Analysis of household income levels in Buloke in 2011 compared to regional Victoria shows that there was a smaller proportion of high-income households (those earning $1,700 per week or more) and a larger proportion of low-income households (those earning less than $500 per week). Overall, 198 Buloke households (7.2%) earned a high income, and 903 (32.9%) were low-income households, compared with 14.1% and 23.9% respectively for regional Victoria.

Our Local Economy

Workplaces in Buloke provide approximately 2,646 jobs.

Agriculture is the most substantial employment sector in the Shire, providing 818 jobs (30.0%). This is followed by 319 jobs (11.7%) in the health sector, 227 (8.3%) in the education sector, 214 (8.9%) in the retail trades sector and 155 (5.7%) in the public administration sector.

A small number of people work in the manufacturing sector (130 or 4.8%) and the construction sector (130 or 4.8%).

A high proportion, 2,403 (90.8%), of the jobs in Buloke are filled by people who live in the Shire.

Comparison of employment by industry between the 2006 and 2011 ABS census results illustrate the changes that are taking place in the local economy.

Between 2006 and 2011 the proportion of person working in the agriculture sector, retail, manufacturing and education sectors all fell. The number of persons who reported working in the agriculture sector fell by 15% (140 jobs over the five-year period). Jobs in the retail sector fell 15% with falls of 6% and 3% respectively in the manufacturing and education sectors. Increases were reported in the transport and technical sectors, but the numbers were small.

Council is one of the largest local employers, employing 262 persons in 2012/13 (151 effective full-time positions). Part-time and casual positions make up 51% of the total number of persons employed by Council.

Volunteering is an important part of the Buloke economy and is an accepted indicator of community cohesiveness and wellbeing, and of how readily individuals are able to contribute to their community.

Analysis of the voluntary work performed in Buloke in 2011 compared to regional Victoria shows that there was a higher proportion of persons participating in volunteer activities in Buloke than in the average of other rural municipalities. Overall, 42.7% of the Buloke population reported performing voluntary work, compared with 23.4% for regional Victoria. Consistent with the employment trends reported above, the number of persons who reported participation in volunteer activity in Buloke decreased by 70 people between 2006 and 2011.

Buloke in the Future

Buloke is a proud agricultural area where participating in the life of its small towns and communities has been and continues to be a defining trait of the community. This trait has been tested recently with the Shire being severely challenged by drought, years of low rainfall and by flood. These events have impacted significantly on many individuals and families and led to permanent changes to aspects of the local environment, community and economy.

However, the experience has positioned the Shire to be much better equipped to adapt to a changing climate and to changing circumstances. Despite these “bumps in the road” the Shire and its community continue to move forward and the outlook for the future is very positive.

The Wimmera Mallee pipeline has been constructed and with the implementation phase underway, the Shire expects to reap enormous benefits for community wellbeing, health of waterways and business development opportunities. The pipeline also provides security of water supply, an important factor for the future.

Economic growth from the Shire’s comparative advantages in grain production and agriculture will continue.

The farming sector will remain the principal source of employment opportunity in the Shire and the production of grain, oil seed and pulses will remain the principal emphasis of agricultural production. Intensive farming and red meat production (principally sheep and lamb) activities are predicted to increase over the next decade but will remain secondary to grain production.

The agricultural sector will also be affected by climate change and policies introduced in response to this by both the Commonwealth and State governments. The introduction of an emissions trading scheme will see, in the medium term, fuel, fertiliser and energy prices rise. However, there may be opportunities to achieve credits for changing fertiliser, livestock and crop residue practices.

Many residents believe lower yields and increased costs will likely lead to a continuation of current trends of technological development, greater mechanisation and farm amalgamation to achieve larger holdings. As in the past, this will mean some of those that are currently farming will leave the industry and remaining properties will have fewer labour requirements. As such, agriculture and manufacturing employment in Buloke is projected to fall by more than the average for regional Victoria. Employment in some agriculture-associated businesses such as transport, are expected to grow slightly in the future, but the rate of growth will be impacted by changes in technology and regulation, particularly in terms of load capacity.

To prosper as the climate changes, farmers in Buloke will need:

· access to plant varieties, technology and farming systems appropriate to the evolving climatic and economic conditions

· access to localised and accurate weather information to enable decisions to be made as seasons unfold

· access to business, financial and decision-making skills for an increasingly complex and uncertain environment

· an understanding of how climate changes will affect the profitability of their current enterprises and, in some cases, assistance to plan for that.

The Shire is well equipped to respond to these challenges through access to locally relevant research, and strong development and extension expertise from local organisations such as the Birchip Cropping Group, the Grains Innovation Park in Horsham and other leading industry groups.

Employment opportunities in other sectors of the local economy, particularly in health, education and public administration, will also slowly decrease in the future but movements in these areas will be dependent upon Government policy and future budget allocations. The development of new facilities such as the recently announced Trades Training Centre in Charlton will be offset by the impact of demographic change, advances in the use of technology for health assessment and diagnosis, and the grouping of services in regional centres.

Employment opportunities in other parts of the local economy such as retail, commerce, tourism and hospitality are also expected to be restricted. Innovation and local support for entrepreneurship will ensure some growth in these areas but they are not expected to grow as part of the overall local economy.

Development of people is of vital importance to the future of Shire. There is a huge amount of talent at all ages available across the Shire and this talent needs to be nurtured, encouraged and developed as a critical local resource.

To achieve this will require an ongoing commitment to lifelong learning, leadership development, training and community engagement. While the public sector, including Council, will be a major contributor to ensuring this commitment is met, it will require effort by all in the community to ensure success.

Volunteers will continue to be an important part of the fabric of the Buloke community and increased effort will need to be put into their development, training and retention.

Research from around the world is increasingly suggesting that the nature of volunteerism is likely to change in the future, becoming more event and cause focused, with less engagement through the more formalised structures of the past.

Technology is also predicted to become more important as a means of communicating, connecting and engaging with volunteers.

Assistance with the reasonable expenses of being a volunteer is also likely to be important in the future.

A healthy natural environment underpins the prosperity and liveability of the Shire and we currently do not foresee any major changes to the current situation. Land use planning controls and other environmental protection mechanisms are in place and appear to be working well. We do not foreshadow any significant changes to these requirements over the next few years.

We do believe that the shift to more sustainable farm practices that will occur over the next few years will result in improved management of natural resources and that this will have some positive environmental impacts.

Carbon sequestration and the potential to actively pursue different renewable energy generation options across the Shire will create new industry opportunities but we do not expect these developments to have a significant impact on local employment or the natural environment.

The two major highways and two rail lines that pass through the Shire are seen as opportunities for improvements to the efficient transport of goods and freight across the Shire and the region, as well for the delivery of travellers to local retail, tourist and recreational destinations.

The Shire must and will become better connected with the regional centres of Bendigo, Horsham, Ballarat, Swan Hill and Mildura through improved transport and telecommunications infrastructure and services. This is essential for the Shire to continue to be competitive and attractive as a place to live and do business.

Typical of many agriculture-based economies, the Shire has experienced population decline and this is likely to continue in the foreseeable future unless new major employment opportunities arise.

It is essential local towns and communities become more engaged in opportunities to plan and drive change for community benefit. This may require rethinking of the historic settlement patterns of some towns and also of the ongoing need for some of the facilities built up in towns over the last century and a half of European settlement.

The delivery of essential community services will require new approaches to meet the needs of small rural communities. A cross-government – Commonwealth, State and local – collaborative approach working with local communities is the only way forward and the establishment of this approach is essential to retaining and further developing community wellbeing.

Buloke Shire offers a bright and thriving rural future for all who wish to live and work within it.

Drivers of Change

Increased agricultural productivity

Increased agricultural productivity and the emergence of larger farms across the Shire have resulted in fewer farms and less demand for workers, leading to population loss. This process has been particularly pronounced in recent years and current trends suggest it will continue in the future.

Between 2001 and 2011, the number of farms in the Shire fell from over 710 to under 554.

Population decline

The general trend across dry land farming areas in Victoria is that towns between one and two thousand people are experiencing continuing population decline due to job losses in agriculture and other sectors where services have been withdrawn, such as banking, government administration and education. As commented earlier this is likely to continue into the future.

A changing climate

Water availability is a major driver of economic growth, environmental health and liveability in Buloke. Over the next 20 to 50 years climate change is predicted to result in higher average temperatures, lower average rainfall, greater intensity of rainfall, and potentially an increase in the frequency of droughts.

Assuming a medium emissions future, it is predicted that by 2030 in Victoria, annual rainfall temperatures will rise between 0.6 and 1 degree and annual rainfall will fall by between 2% and 5% on current averages. The Wimmera Southern Mallee of which Buloke is part is predicted to be among the most affected regions of Victoria.

Global food demand

The expected increase in global food demand will provide opportunities for food producing regions that can successfully adapt to climate change and other factors affecting agriculture, such as energy costs, volatile international commodity markets, varying currency valuations and the impact of new markets in emerging regions for high quality products.

Liveability factors

Various factors influence people’s choices on where to live include availability of employment, choice and affordability of housing, education, health, cultural, family proximity and lifestyle features.

Employment is likely to continue to be the single largest factor impacting on choice to locate in Buloke.

Migration

Another population trend in rural Victoria has been the outward migration of young people to regional centres and metropolitan Melbourne for education and employment opportunities and the inward migration of people in the 50 to 64 age bracket.

In Buloke there has been a consistent net outward migration of young people to Melbourne or larger regional centres such as Bendigo, Ballarat and Mildura for education and employment over the past 30 years.

Accompanying this loss of younger residents, for the majority of the period since 1981 there has been a net inward migration of residents in the 50–64 age bracket. This inward migration has been for liveability and affordability reasons.

Both of these trends are expected to continue into the future.

The Plan

Our Vision, Mission and Values

These three statements, Vision, Mission and Values, define and guide an organisation's ability to create the future for their community.

In the simplest of terms, a Vision is all about what is possible, the potential. An effective Vision Statement will therefore tell the world what change the organisation wishes to create for the future of their community.

The Mission is what it takes to make that vision come true. An effective Mission Statement is therefore about how the organisation will turn their vision into practice. It is the doing part of the three statements.

A Values Statement provides the tools for the organisation to accomplish the Mission. An effective Values Statement should look outside the organisation, to the visionary outcomes the organisation wants to create for their community.

Our Vision:

Our vision is a sustainable community where everyone participates to enrich the cultural, social and economic viability of the Shire and cares for the natural environment.

Our Mission:

Our mission is to ensure the community has the practical tools to make Buloke an amazing place to live. We do this by:

· providing a range of needed services

· engaging with the community to understand emerging needs

· advocating on behalf of the community for services to meet needs

· good governance and sound financial and risk management practices

· involving the community in making decisions that affect them directly and indirectly

· celebrating community achievements and milestones together.

Our Values:

To accomplish our mission, Council bases its decisions and actions on the following core values:

Accountability for the Future

· We will do everything in our power to ensure a future for our children, grandchildren and beyond.

· We will hold ourselves accountable for doing whatever we can to bring about that future.

· We will hold ourselves accountable not only to current residents of the Shire, but to the generations who come after us.

Creating the Future

· We know we are creating the future right now, whether we do so consciously or not.

· We will always be conscious of how today’s decisions may affect the future of the individuals involved, their communities, the environment and our world.

· We will always aim towards our vision for the future, rather than simply seeking to avoid the negative realities of today.

· We will encourage the potential in others (and ourselves).

· We will favour long-term improvement for our community, over short-term expediency.

· We will regard liveability as a primary focus of Council activity, advocacy and actions.

Financial Sustainability

· We know we need to manage the Shire’s finances carefully and with an eye on both current community needs and long-term asset management responsibilities.

· We know that we are under scrutiny by ratepayers and the State Government to demonstrate that we can manage the Shire’s finances in a sustainable manner.

· We know that analysis by the Municipal Association of Victoria (MAV) and others over a long period of time strongly suggests that small rural councils like Buloke face significant financial challenges. Conclusions from the research vary, but there is agreement that susceptibility to financial viability concerns is a combination of a number of factors including the impact of large infrastructure responsibilities, the strength of the rating base, population dispersion and reliance on external funding sources to provide core services.

· We know that we need to make financial decisions that are in the best interests of ratepayers from a short-term, medium-term and long-term basis. These decisions need to be open and transparent and subject to review as part of ongoing strategic planning.

Asset-Based Approaches

· To build something amazing, we must build it upon a strong base. Maintenance and improvement of our current asset and infrastructure base is therefore a higher priority for us than new facilities. This will require us to engage with our local communities to discuss the potential for new ways of better using existing facilities and even how the number of facilities can be rationalised to better reflect demand and usage patterns.

· We know that our community and organisations within it have an abundance of talents and strengths upon which to build the future we envisage, resources that should be used whenever possible.

· In doing our own internal work, we will always seek to use and develop the talents and strengths of our own staff and utilise the best tools available to us.

Interconnected and Interdependent

· We will consult regularly with residents, ratepayers and other stakeholders.

· We know that Buloke does not exist in a vacuum – that individuals, organisations, communities, and government agencies are all interconnected and interdependent. None of us can create significant impact on our own; our potential is greatest when we work together.

· We know that the best decisions are those that provide the best end result for our residents. Sometimes not everyone will agree with the decisions we make, but we will always be accountable for what we do and willing to discuss it with anyone interested.

· We will treat all residents, stakeholders and staff with respect, compassion, generosity, humanity and kindness.

· We will value the work of volunteers and actively encourage and further develop the volunteer ethic that has characterised the history of the Shire.

· We will encourage all individuals and organisations in Buloke to work side by side, to share in each other’s wisdom, and effect greater change.

· We will have ownership of and responsibility for the future we are creating with the Buloke community.

· We will demonstrate and foster behaviours that embrace the collective mixture of differences and similarities that exist in our community to ensure that everyone has the opportunity to learn, work, connect with others and have a say.

Always Practical

· We know that without practical tools for accomplishing today’s tasks, individuals are likely to downplay their vision for the future. Therefore, if we can engage people in practical activities they will believe change is possible and through their individual actions assist in bringing about that change.

· We will encourage a culture of ongoing lifelong learning and evolution of ideas, for ourselves and for the community we serve.

· We will ensure our actions are always open, transparent and accountable through positive practices of leadership and integrity.

Service Principles

· We will continually monitor and assess community needs for services and respond to the best of our ability.

· We will determine the most efficient, effective and risk averse service delivery methods we can and always seek to deliver services to these standards.

· We will develop service standards for the everyday services we provide to the community and regularly report on accomplishment of these.

· We will consult with the community before making any changes to the way Council services are managed and delivered.

Objectives and Strategies for 2013 – 2017

STRATEGIC OBJECTIVE

STRATEGIES

1. Our Community

A Buloke community where people of all ages, backgrounds and abilities are embraced and supported and can access the Council services they need to help live healthy and fulfilling lives.

A Buloke community connected and involved in shaping decisions that affect them.

1. Working with the community to make Buloke an even better place to live through:

· advocating for and investing in innovative models of service delivery

· continuously reviewing the services provided to ensure they are meeting community needs and are being delivered efficiently in a cost effective manner

· supporting and valuing volunteers

· supporting the provision of a broad range of housing choice, affordability and availability

· supporting the provision of innovative support and services to an aging population

· engaging with and connecting with young people

· advocating for improved health outcomes

· supporting sports and recreation clubs and facilities

· supporting the continuing development of community-based arts and cultural activities

· collaboration with tertiary institutions and other research organisations to increase our knowledge of local service needs, aspirations and indicators of wellbeing.

2. Working with communities and other stakeholders in planning for and making decisions about the future.

3. Working with communities and other stakeholders to maintain and enhance a living environment where people feel safe, are connected to their community and are actively encouraged and supported to participate in community life.

STRATEGIC OBJECTIVE

STRATEGIES

2. Our Local Economy

A local economy in which the contribution of the agricultural sector and business sector is recognised and their continued growth actively encouraged and supported.

A local economy in which new business is actively encouraged; investment welcomed; employment created; business skills developed and local networks are supported.

1. Building on our comparative advantages in sustainable agricultural production and related value-adding and service industries.

2. Leveraging new industry development from the Wimmera Mallee Pipeline, active encouragement of entrepreneurship, promotion of local business opportunities, fostering growth in business networks and the availability of business support services.

3. Development of infrastructure and services that take advantage of the major transport routes through the Shire, including experiential visitor opportunities.

4. Encouraging innovative energy solutions for future energy generation.

5. Advocating for the provision of essential infrastructure (including telecommunications) to support new and existing businesses, including farm-based enterprises.

3. Our Built Environment

A Shire planned to meet the current and future needs of the agricultural sector and town based residents while maintaining and enhancing its natural environment.

A Shire where roads, drains, public spaces, community facilities, parks and other essential infrastructure are fit for purpose, well maintained and contribute to the wellbeing of the community.

1. Improving local road and transport networks to facilitate safe and efficient transport movement within and across the Shire.

2. Maintaining and improving the condition of Council owned assets to ensure essential services are provided and the community has access to quality public facilities.

3. Ensure the built environment of the Shire is appropriately regulated.

4. Our Natural environment

A Shire working with the community to reduce our carbon footprint, protect and enhance the natural environment and share experiences and information.

1. Leading the community through demonstrating Council’s management of resources to reduce its impact on the environment.

2. Providing services and advice to the community to assist in reducing its impact on our natural environment.

3. the development and implementation of short- and long-term environmental improvement programs.

5. Our People and Organisation

An organisation that is responsive to the evolving needs of the community.

An organisation that is responsibly governed with a strong emphasis on sustainable financial and risk management.

An organisation that values and supports the development of its people and is an employer of choice.

An organisation committed to active communication and engagement with our community.

1. Continuing to actively listen to the community and providing constructive and timely feedback on proposed actions.

2. Working with local leaders and organisations to achieve sustainable Shire-wide and local change.

3. Ensuring Council is well governed and its finances and risks are managed sustainably and responsibly.

4. Continuing to improve the organisation and its people to provide our community, businesses and visitors with the best possible services.

Strategic Objective 1: Our Community

A Buloke community where people of all ages, backgrounds and abilities are embraced and supported and can access the Council services they need to live healthy and fulfilling lives.

A Buloke community connected and involved in shaping decisions that affect them.

Strategies – how we’re going to achieve our objectives

1.1 Working with the community to make Buloke an even better place to live by:

Priorities

· advocating for and investing in innovative models of service delivery

· continuously reviewing the services provided to ensure they are meeting community needs and are being delivered efficiently in a cost effective manner

· supporting and valuing volunteers

· supporting the provision of a broad range of housing choice, affordability and availability

· supporting the provision of innovative support and services to an aging population

· engaging with and connecting with young people

· advocating for improved health outcomes

· supporting sports and recreation clubs and facilities

· supporting the continuing development of community-based arts and cultural activities

o collaboration with tertiary institutions and other research organisations to increase our knowledge of local service needs, aspirations and indicators of wellbeing.

o Collaborate with the State Government and the not-for-profit sector to facilitate early intervention support and counselling services for families, particularly in the area of mental health.

o Collaborate with the State Government and the not-for-profit sector to facilitate the provision of support services to meet the current and emerging needs of young people, including expansion of the range of educational, cultural and recreational activities available to them, and of innovative ways for them to participate in community decision-making.

o Support the integration and co-location of early childhood services, family services and child care and advocate for the allocation of funding from other levels of Government to achieve this objective.

o Continue to seek opportunities to apply for State and Commonwealth Government funding for programs that help meet current and emerging needs of the community.

o Review the capacity of volunteers to service community needs and consider additional volunteer support programs. Assess whether reliance on volunteers is sustainable in the future and advocate the need for innovative models of volunteering.

· Continue community planning and community development activities in all communities across the Shire with the objective of improving local connections, encouraging citizenship, identifying self-help opportunities and assisting in achieving desired local outcomes.

· Support the continued development of arts and cultural activities throughout the Shire.

· Continue to seek opportunities to apply for State and Commonwealth Government funding to improve arts, cultural, sports and recreation facilities within the Shire.

Challenges

· Connecting with young people across the Shire and engaging them in decision making and planning futures.

· Maintaining and developing a pool of trained volunteers to continue to support community endeavours across the Shire.

1.2 Working with communities and other stakeholders in planning for and making decisions about the future.

Priorities

· Ensure all major projects and strategies are informed through community and stakeholder consultation which is guided by Council’s Community Consultation Framework and, where relevant, appropriate advisory committees and/or consultative mechanisms.

· Explore current and future opportunities to improve Council’s community engagement and consultation activities.

· Actively engage with township forums, progress associations, Chambers of Commerce and other organisations to further develop and implement their respective community plans.

· Celebrate the vitality and resilience of towns and localities across the Shire through facilitation and support for events and community festivals.

· Continue to identify and pursue grant opportunities for community-based organisations across the Shire and provide support and assistance where appropriate.

· Continue to work with local communities to maintain linkages with past residents through providing advice on local events through print and electronic media opportunities.

Challenges

· Developing the capacity to make use of changing technologies to connect with, communicate with and engage with the community.

· Maintaining the currency and relevance of community plans to communities across the Shire.

1.3 Working with communities and other stakeholders to maintain and enhance a living environment where people feel safe, are connected to their community and are actively encouraged and supported to participate in community life.

Priorities

· Develop a community safety risk assessment process for service and project activities and progressively implement this over the term of the Plan.

· Advocate to State Government and Victoria Police to maintain a police presence in the Shire at current levels and to improve response times to incidents in small towns and isolated communities.

· Advocate for improvements to telecommunications infrastructure in the Shire include mobile telephone coverage, improved internet access and faster download speeds.

· Advocate to Commonwealth and State Governments for further improvements to rural addressing, including the use of contemporary technologies, to improve response times by emergency services.

· Continue to develop methods of communication and engagement with residents through the use of telecommunications, the internet and printed materials.

Challenges

· Raising community awareness as to the importance of community safety and the need to consider this as part of everyday life.

Strategic Indicators 2013 – 2017

INDICATOR	MEASURE	SOURCE	2013/14 TARGET	2014/15 TARGET	2015/16 TARGET	2016/17 TARGET
Community satisfaction with Council’s overall performance	Survey score	Victorian Local Government Community Satisfaction Survey	54	55	56	57
Community satisfaction with Council’s engagement in decision-making on key local issues	Survey score	Victorian Local Government Community Satisfaction Survey	57	58	59	60
Councillors fulfilling their obligation to represent the views of their constituents and to allow decision making to take place	Councillor attendance at ordinary and Special meetings	Council records	100%	100%	100%	100%
Use of Council’s website	Number of hits annually	Council	19,000	20,000	21,000	22,000
Community satisfaction with Council’s provision of elderly support services	Survey score	Victorian Local Government Community Satisfaction Survey	71	72	73	74
Community satisfaction with Council’s provision of family support services	Survey score	Victorian Local Government Community Satisfaction Survey	63	64	65	66

Strategic Objective 2: Our Local Economy

A local economy in which the contribution of the agricultural sector and business sector is recognised and their continued growth actively encouraged and supported.

A local economy in which new business is actively encouraged; investment welcomed; employment created; business skills developed and local networks are supported.

Strategies – how we’re going to achieve our objectives

2.1 Building on our comparative advantages in sustainable agricultural production and related value-adding and service industries.

Priorities

· Actively participate in regionally significant economic development projects and continue to market Buloke Shire from a leadership position.

· Promote the capability of local producers to provide high quality grains, legumes, oil seeds and live meat to local, national and international markets and ensure Land Use policies in the Buloke Planning Scheme protect the future of these economic assets.

· Continue to develop a strong partnership with the Birchip Cropping Group, Sea Lake “No Till” Group, Nullawil Lamb Group and other farm-based stakeholder groups to promote best practice and innovation in the agricultural sector.

· Continue to operate the Wycheproof Saleyards as an important regional livestock exchange.

Challenges

· Sustaining economic development capability and the capacity to liaise with key stakeholders.

2.2 Leveraging new industry development from the Wimmera Mallee Pipeline, active encouragement of entrepreneurship, promotion of local business opportunities, fostering growth in business networks and the availability of business support services.

Priorities

· Help develop the local economy through implementation and ongoing review of Council’s Economic Development Strategy.

· Review and apply the Industrial Land Use policy provisions within the Buloke Planning Scheme to ensure it encourages business investment while maintaining the character of the Shire.

· Celebrate the success of outstanding local businesses through the biennial Buloke Business Excellence Awards.

· Promote Buloke Shire as an attractive location for business investment through local, regional and State opportunities as they present themselves.

· Encourage and actively support trader associations in the major towns across the Shire.

· Encourage and actively support the development of tourism opportunities in the Shire.

· Work with Birchip Cropping Group and other farm-focused research and development organisations to help form links with local farmers, disseminate information and maximise future investment opportunities.

· Support local businesses through the development of appropriate networks and training opportunities.

Challenges

· Attracting new investment.

2.3 Development of infrastructure and services that take advantage of the major transport routes through the Shire, including experiential visitor opportunities.

Priorities

· Work with communities located on the Calder Highway and Sunraysia Highway to provide a range of commercial, public health, accommodation and recreational facilities to travellers on these two major road networks.

· Advocate to the State Government for investment in the maintenance and upgrade of the State highways, particularly the Calder Highway and Sunraysia Highway to improve safety and ride-ability.

· Advocate for the provision of high-quality, regular and efficient passenger and rail freight transport initiatives in the Loddon Mallee and Wimmera Southern Mallee regions.

Challenges

· Alignment of Commonwealth and State road, rail and freight investment programs with local needs.

2.4 Encouraging innovative energy solutions for future energy generation.

Priorities

· Actively promote the Shire as a location for energy production from wind, solar and other clean energy technologies and advocate to other levels of Government for investment in infrastructure to ensure this can occur.

Challenges

· Attracting investment in the renewable energy sector.

· Capacity of local electricity feeder network.

2.5 Advocating for the provision of essential infrastructure (including telecommunications) to support new and existing businesses, including farm-based enterprises.

Priorities

· Develop a Shire-wide supported approach to drive improvements in broadband and mobile phone coverage.

· Develop innovative local information and communication technology solutions through community planning initiatives.

Challenges

· National Broadband rollout program currently projects access to the slower fixed wireless service for all parts of the Shire except for Donald which will be connected to optical cable.

Strategic Indicators 2013 – 2017

INDICATOR

MEASURE

SOURCE

2013/14

TARGET

2014/15

TARGET

2015/16

TARGET

2016/17

TARGET

Community satisfaction with business and community development and tourism

Survey score

Victorian Local Government Community Satisfaction Survey

Level of commercial and industrial building development within the Shire

Value of building approvals maintained or increased

Shire of Buloke – Value of Building Approvals

$8.5M

Strategic Objective 3: Our Built Environment

A Shire planned to meet the current and future needs of the agricultural sector while maintaining and enhancing its built environment.

A Shire where roads, drains, public spaces, community facilities, parks and other essential infrastructure are fit for purpose, well maintained and contribute to the well-being of the community.

Strategies – how we’re going to achieve our objectives

3.1 Improving local road and transport networks to facilitate safe and efficient transport movement within and across the Shire.

Priorities

· Work with the State Government to improve the safety and trafficability of the Calder Highway, Sunraysia Highway and Borung Highway.

· Work with the State Government to increase the percentage of freight carried on the rail network.

· Lobby for increased allocation of grants by the Commonwealth and State Government for the maintenance and upgrade of local road networks to make it safer and easier to transport produce and for residents to travel within the Shire.

· Advocate for new services and for improvements in the convenience and frequency of public transport services.

· Keep local roads maintained to a high standard as specified in Council’s Road Management Plan.

· Continue to develop more opportunities for movement within towns by bicycle and on foot.

· Facilitate access to town centres by providing clearly marked and safe car parking facilities.

Challenges

· Alignment of Commonwealth and State road, rail and freight investment programs with local needs.

· Commonwealth fiscal policy and continued restrictions on the growth of Grants Commission allocations.

· Ability for Council to continue to fund road rehabilitation and road maintenance at current levels.

3.2 Maintaining and improving the condition of Council owned assets to ensure essential services are provided and the community has access to quality public facilities.

Priorities

· Continue the development and implementation of plans to protect, maintain and manage Council assets including, parks, reserves, halls, swimming pools, playgrounds, sports facilities, senior citizen centres and preschools.

· Develop a Sustainable Sports Facility Management Plan to improve water management, ensure surfaces are more drought tolerant, reduce energy consumption and meet contemporary playing requirements.

· Ensure infrastructure developments provide equitable access for all abilities.

· Continue to implement Council’s Strategic Drainage Program.

· Continue to implement Council’s Strategic Swimming Pool Upgrade Program

· Consider and respond to the recommendations of town Flood and Drainage Plans developed following the 2010 and 2011 flood events.

· Create and maintain the amenity and safety of the Shire’s townscapes, streetscapes and rural environments.

Challenges

· Balancing the demand for maintenance and upgrade of existing infrastructure with long-term financial capacity.

· The impact of a slowly declining population on the capacity to maintain the number and variety of sports and recreation facilities within the Shire.

· Balancing the need for flood mitigation and protection works in flood affected towns with financial capacity.

3.3 Ensure the built environment of the Shire is appropriately regulated.

Priorities

· Provide high-quality and timely statutory planning, building compliance and environmental health services to businesses and individuals in the community.

· Complete the review of the Buloke Planning Scheme, including the Municipal Strategic Statement.

· Seek funding from the State Government to help develop Township Structure Plans that will assist in shaping the changing needs of the small townships and localities that make up the Shire.

· Encourage high-quality affordable residential development that contributes to the character of the Shire and meets the needs of the community.

Challenges

· Retention and attraction of professional staff.

· Lack of investment in new housing, commercial and industrial developments to facilitate the capacity to improve the amenity and future needs of townships.

· Age of much of the current housing, industrial and commercial stock and the relatively high cost of upgrade and modernisation.

Strategic Indicators 2013 – 2017

INDICATOR

MEASURE

SOURCE

2013/14

TARGET

2014/15

TARGET

2015/16

TARGET

2016/17

TARGET

Community satisfaction with general town planning policy

Survey score

Victorian Local Government Community Satisfaction Survey

Community satisfaction with planning and building permit services	Survey score	Victorian Local Government Community Satisfaction Survey	53	54	55	56
100% of planning applications processed within the statutory limit	No applications outside of statutory limit	Council – Planning Approvals Issued	100%	100%	100%	100%
Community satisfaction with recreation facilities	Survey score	Victorian Local Government Community Satisfaction Survey	70	71	72	73
Community satisfaction with swimming pool facilities	Survey score	Victorian Local Government Community Satisfaction Survey	50	51	52	53
Community satisfaction with the condition of local streets and footpaths	Survey score	Victorian Local Government Community Satisfaction Survey	55	56	57	58
Community satisfaction with the maintenance of unsealed roads	Survey score	Victorian Local Government Community Satisfaction Survey	40	41	42	43

Strategic Objective 4: Our Natural Environment

A Shire working with the community to reduce our carbon footprint, protect and enhance the natural environment and share experiences and information.

Strategies – how we’re going to achieve our objectives

4.1 Leading the community through demonstrating Council’s management of resources to reduce its impact on the environment.

Priorities

· Reduce Council’s greenhouse gas emissions through a range of conservation measures.

· Continue efforts for Council operations and facilities to become more water-wise by implementing storm water re-use strategies.

· Continue to install energy and water conservation measures in Council facilities and use and reuse sustainable building materials.

· Implement strategies to improve storm water quality through the development of wetlands, bushland reserves and enhancement of natural waterways.

· Continue to purchase green products as part of Council’s support of the ECO-Buy Program.

Challenges

· Implementing water-saving techniques at key recreation and community facilities across the Shire.

· Achieving a balance between the need to implement flood mitigation measures and the financial capacity of Council and the community.

· Educating the community to reduce waste, to become less reliant on disposing of unwanted materials at landfill and becoming more effective recyclers.

4.2 Providing services and advice to the community to assist in reducing its impact on our natural environment.

Priorities

· Continuing to implement the Waste Wise Program to help reduce the amount of waste that goes to landfill.

· Work with the community to increase recycling and grow awareness about waste disposal through a marketing and education program including school education.

· Continue long-term planning for sustainable waste disposal facilities.

· Work with the community to encourage the development of alternative energy sources for business and domestic purposes.

· Work with the community to establish a Shire-wide program of activities to reduce the consumption of carbon with the ultimate objective of the Shire becoming carbon neutral.

Challenges

· Educating the community to reduce waste, to become less reliant on disposing of unwanted materials at landfill and to be more effective recyclers.

· Raising awareness of the importance of personal and local actions in meeting the global challenge to reduce greenhouses gases.

4.3 Protecting our natural assets through the development and implementation of short-term and long-term land use planning and environmental programs.

Priorities

· Using the Municipal Strategic Statement (MSS) to manage development and protect the natural character of Buloke.

· Continuing to rolling out a program of planning and improvements to streetscapes, parks and waterways through Council’s Capital Works program.

Challenges

· Ensuring the relevance of the MSS as local economic and social conditions change.

· Having the financial capacity to continue to improve streetscapes, parks and waterways.

Strategic Indicators 2013 – 2017

Indicator	Measure	Source	2013/14 Target	2014/15 Target	2015/16 Target	2016/17 Target
Community satisfaction with the enforcement of local laws	Survey score	Victorian Local Government Community Satisfaction Survey	63	63	63	63
Community satisfaction with the appearance of public areas	Survey score	Victorian Local Government Community Satisfaction Survey	74	74	74	74
Community satisfaction with waste management services	Survey score	Victorian Local Government Community Satisfaction Survey	74	75	76	77
Waste diverted from landfill (Recyclables collection)	Kilograms of recyclables collected per household	Council – volume of materials collected by Council’s recyclables collection contractor	275kgs	280kgs	285kgs	290kgs

Community satisfaction with the roadside slashing and weed control

Survey score

Victorian Local Government Community Satisfaction Survey

Strategic Objective 5: Our People and Organisation

An organisation that is responsive to the evolving needs of the community.

An organisation that is responsibly governed with a strong emphasis on sustainable financial and risk management.

An organisation that values and supports the development of its people and is a employer of choice.

An organisation committed to active communication and engagement with our community.

Strategies – how we’re going to achieve our objectives

5.1 Continuing to actively listen to the community and providing constructive and timely feedback on proposed actions.

Priorities

· Councillors and senior staff regularly attending township forum and progress association meetings to report on Council activities, listen to local concerns and provide feedback on past activities.

· Continue the “Fire Shed” community meeting initiative as a means of regular communication and contact with farm-based residents of the Shire.

· Continue to publish Community Matters on a six weekly cycle in local newspapers.

· Develop and publish a quarterly newsletter to be sent to all Shire residents either by email or in hard copy.

· Maintain Council’s website to ensure the relevance and currency of information and explore opportunities to use emerging electronic communication and engagement tools.

· Implement upgrades to the Customer Request tracking system to ensure all requests are logged and appropriate feedback provided.

Challenges

· Making best use of the communications technology available to Council.

· Investing in new communication technologies as it is developed and gains public acceptance.

· Responding in a timely fashion in a world where the receipt of an “instant” response to a request is increasingly becoming the “norm”.

5.2 Working with local leaders and organisations to achieve sustainable Shire- wide and local change.

Priorities

· Continue to sponsor at least two emerging local leaders as participants in the annual Loddon Murray Community Leadership Program.

· Continue to meet regularly with local business, agricultural, educational, health, community service, recreation, cultural, emergency service and other organisations to share information, encourage participation in local affairs, participate in local and Shire-wide planning activities and to work together to improve liveability and wellbeing.

Challenges

· Facilitating informative and productive regular meetings of the Chairs of Township and District based Forums, Progress Associations and Chambers of Commerce.

5.3 Ensuring Council is well governed and its finances and risks are managed sustainably and responsibly.

Priorities

· Continue Council’s risk management program including the development of a plan to identify and mitigate high-level corporate and community risks.

· Review and renew the Council’s financial plans to improve financial sustainability as measured by indicators of local government financial sustainability developed by the Victorian Auditor General.

· Review and consider the affordability of rates increases on Buloke residents over the next ten years, particularly in the context of total expenditures to be financed from rates and on the rating mechanisms to be used to distribute the rates burden.

· Maintain good governance processes for Council and Special Committee meetings and communicate decisions to the community.

· Ensure Council services comply with relevant legislation and regulation by providing ongoing staff training.

Challenges

· Cost shifting from other levels of Government to local government is expected to remain a challenge for the term of this Plan.

· Achieving a balance between meeting the needs and aspirations of residents and the financial capacity of Council.

· Containing costs to levels that are within the constraints set as part of the long-term financial plan.

5.4 Continuing to improve the organisation and its people to provide our community, businesses and visitors with the best possible services.

Priorities

· Continue to develop a customer service culture to ensure the organisation responds to the needs of the community.

· Build the future workforce through continuation of the apprenticeship, trainee and graduate programs across the organisation.

· Continue to provide flexible working arrangements and promote Council’s family-friendly policies.

· Provide a healthy and safe working environment through the organisation’s Occupational Health and Safety policies and programs.

· Provide ongoing training and professional development programs for Councillors and staff.

· In conjunction with the community, stakeholders, regional associations and appropriate professionals develop and maintain a “bank” of projects that are “ready to go” in terms of grant and other funding opportunities.

Challenges

· Attracting and retaining key staff, particularly in management and technical roles.

· Containing employee costs within the constraints of the long-term financial plan.

Strategic Indicators 2013 – 2017

INDICATOR	MEASURE	SOURCE	2013/14 TARGET	2014/15 TARGET	2015/16 TARGET	2016/17 TARGET
Councillors fulfilling their obligation to represent the views of their constituents and to allow decision making to take place	Councillor attendance at ordinary and Special meetings	Council records	100%	100%	100%	100%
Audit committee meetings conducted per annum	Minimum four meetings held per year	Council – record of meetings	4	4	4	4
Community satisfaction with community consultation and engagement	Survey score	Victorian Local Government Community Satisfaction Survey	57	58	59	60

Community satisfaction advocacy performance of Council	Survey score	Victorian Local Government Community Satisfaction Survey	55		56	57	58
Community satisfaction with informing the community	Survey score	Victorian Local Government Community Satisfaction Survey	58		59	60	61
Community satisfaction with customer service contact	Survey score	Victorian Local Government Community Satisfaction Survey	73		74	75	76
Community satisfaction with the emergency and disaster management	Survey score	Victorian Local Government Community Satisfaction Survey	66		66	66	66
Underlying result (per cent) (Adjusted net surplus/ total underlying revenue)	A positive result indicates a surplus. The larger the percentage, the stronger the result. A negative result indicates a deficit.	Council – Annual Accounts	-49%	-41%		-38%	-33%
Liquidity (current assets/ current liabilities)	Ability to pay existing liabilities. A ratio higher than 1:1 means there is more cash and liquid assets than short-term liabilities.	Council – Annual Accounts	11%	-138%		-199%		-2615%

Indebtedness (per cent) (non-current liabilities/ own-sourced revenue)	Comparison of non-current liabilities (mainly comprised of borrowings) to own-sourced revenue. The higher the percentage the less able the entity is to cover non-current liabilities from the revenues the entity generates itself .	Council – Annual Accounts	8.1%	1.6%	0%	0%
Self-financing (per cent) net operating cash flows/ underlying revenue	Ability to replace assets using cash generated by the entity’s operations. The higher the percentage the more effectively this can be done.	Council – Annual Accounts	90%	59%	199%	6%
Capital replacement Capital expenditure/ depreciation	Comparison of the rate of spending on infrastructure with its depreciation. Ratios higher than 1:1 indicate that spending is faster than the depreciation rate .	Council – Annual Accounts	TBA	TBA	TBA	TBA
Renewal gap Renewal and upgrade expenditure/ depreciation	Comparison of the rate of spending on existing assets through renewing, restoring, and replacing existing assets with depreciation. Ratios higher than 1:1 indicate that spending on existing assets is greater than the depreciation rate .	Council – Annual Accounts	544%	94%	96%	98%

Strategic Resource Plan 2013 – 2017

Introduction

Under the Local Government Act 1989 (the Act), Council is required to prepare and adopt a Council Plan, a four-year Strategic Resource Plan and an Annual Budget.

The achievement of the Council Plan is highly dependent on the Council’s effective management of its resources as outlined in the Strategic Resource Plan, the achievement of its strategic objectives and the sustainability of service delivery.

The Strategic Resource Plan identifies the financial and other resources required to achieve the objectives set out in the Council Plan for the next four years. Council’s Strategic Resource Plan is required to include the following sections:

® Four-Year Financial Plan

® Standard Financial Statements

® Human Resource Statement.

As indicated elsewhere in this Plan, Council is committed to improving its financial sustainability and believes this can be best achieved through the development and management of a long term financial plan. While the Act requires a minimum four-year focus for the Strategic Resource Plan Council has chosen to prepare a ten (10) year forward financial plan and has made a commitment to continuously trying to improve its position as the Plan is implemented.

Financial Targets to Reach the Desired 2.5% Surplus	Budget 2013/14 ($'000's)	Forecast 2014/15 ($'000's)	Forecast 2015/16 ($'000's)	Forecast 2016/17 ($'000's)	Forecast 2017/18 ($'000's)	Forecast 2018/19 ($'000's)	Forecast 2019/20 ($'000's)	Forecast 2020/21 ($'000's)	Forecast 2021/22 ($'000's)	Forecast 2022/23 ($'000's)
Total Revenue excluding Capital Grants and Asset Sales	15,525	16,685	17,476	18,309	19,188	20,114	21,092	22,124	23,212	24,361
Comprehensive result	25,668	(1,691)	(2,253)	(2,931)	(2,533)	(2,020)	(1,467)	(873)	(233)	454
less Capital income	(33,511)	(5,392)	(4,480)	(3,449)	(3,463)	(3,558)	(3,656)	(3,756)	(3,859)	(3,965)
Underlying result	(7,842)	(7,083)	(6,732)	(6,379)	(5,996)	(5,578)	(5,123)	(4,629)	(4,092)	(3,510)
Add Back Depreciation	6,326	6,678	6,678	6,678	6,678	6,678	6,678	6,678	6,678	6,678
Net Result	(1,516)	(405)	(54)	299	683	1,100	1,555	2,050	2,586	3,168

10 Year Financial Plan

The 10 Year Financial Plan provides an overview of Council’s approach to management of its operations, capital works program and associated rating and revenue strategies.

The 10 Year Financial Plan for 2013 – 2023 is based on the following key strategies aimed at ensuring the long-term viability and amenity of the Shire:

· To increase revenue from rates and charges over the period of the Plan by a minimum of 6.0% per annum.

· To increase revenue from fees, fines and charges of 2.5% p.a. (CPI) in 2013/14 and continuing at this level the remainder of the Plan or in line with cost increases or market levels as appropriate. This also recognises that other levels of Government set a considerable portion of statutory fees, fines and charges.

· To achieve a surplus of a minimum of 2.5% on an ongoing basis as soon as possible within the 10 Year period. (For the purpose of the 10 Year Plan ‘surplus’ has been defined as being operating income, less operating expenses, excluding depreciation and capital grants.)

· To continue to receive untied Financial Assistance Grants from the Commonwealth at current levels with an annual increase in line with projected Consumer Price Index (CPI) movements over the life of the Plan.

· To target reaching a ‘break-even’ position by 30 June 2016 and for the remainder of the 10 Year Plan to seek to achieve the 2.5% surplus defined above.

· To reduce staff costs through natural attrition, with a particular focus on achieving these reductions in the first 3 years of the Plan.

· To contain increases in underlying staff costs to projected CPI over the life of the Plan.

· To contain increase in the cost of materials and services to projected CPI over the life of the Plan

· To build on the legacy of the invest in the Shire’s road network as a result of the funding received under National Disaster Response and Recovery Arrangements.

· To continuously review service levels for all services offered. (A focus of these reviews will be an analysis of the cost of services provided under contract or operating grants from other levels of government to ensure that cost shifting is clearly identified and addressed if negotiations to reimburse Council for additional costs cannot be successfully concluded.)

· To fund both operating expenditure and base capital works from recurrent revenue sources, capital grants and cash reserves.

· To achieve an asset sales program over the life of the Plan of approximately $1.5M (to be achieved through the sale of land, buildings and plant).

· To maintain a level of cash investment to meet non-discretionary funding commitments.

· To continue to develop a program of rolling capital works over the 10 year period including:

o Upgrade of swimming pools with a focus on water quality management and water conservation

o Renewal of playgrounds to contemporary standards

o improvement to township drainage with a focus on storm water management and water re-use

o Ground improvements to principal recreation reserves

o Upgrade of public amenities

· To base forward capital works funding projections only on known funding sources.

· Country Roads and Bridges program to finish in 2013/14

· Local Government Infrastructure Program to finish in 2013/14

· National Disaster Response and Recovery Arrangements to cease in 2013/14

· Roads to Recovery to finish in 2018/19

The application of these principles is shown in the Financial Statements that follow.

Buloke Shire Council Special Meeting Minutes Wednesday, 28 August 2013

5.1.3 Adoption of Budget for Municipal Year Ending 30 June 2014

Author’s Title: Manager Finance

Department: Finance File No: Bud1

Attachments:

1 ViewBudget 2013/14

Relevance to Council Plan 2013 - 2017

Objective: A Buloke community connected and involved in shaping decisions that affect them

Strategy: Working with communities and other stakeholders in planning for and making decisions about the future

Priority: Ensure all major projects and strategies are informed through community and stakeholder consultation which is guided by Council’s community consultation framework and, where relevant, appropriate Advisory Committees and/or consultative mechanisms

Motion:

That: Council having considered the submission received from the Charlton Forum Inc in accord with s223 of the Local Government Act (1989):

1. Adopt the 2013/14 budget and levy rates for 2013/14

2. Strike differential rates as follows:

· General 0.7621% of CIV

· Commercial/Industrial 0.7621 of CIV

· Farm 0.7469 of CIV

3. Declare the Municipal Charge for 2013/14 at $130 for each rateable assessment in respect of which a Municipal Charge may be levied

4. Declare Service Charges as follows;

· Municipal Waste Charge $255

5. Undertake a capital works program of $34.5 million in 2013/14.

6. Provide for an early full rate payment discount of 1.5% on current yea rates and charges be granted if full payment (including ant arrears and interest) is received on or before Monday 30 September 2013 (The discount to exclude the Fire Services Property Levy).

7. Note that a Public Notice has been advertised advising that a copy of the Budget 2013/14 is available for inspection at the Council’s District Offices.

8. Note the contents of the submission from Charlton Forum Inc. and in particular their concerns relating to the Long Term Financial Plan for Buloke Shire

9. Council invite the Charlton Forum to meet with Council to discuss their concerns in more detail.

10. Council previously had a scheme where ratepayers that had built new homes received a concession for the total rates levied on that property for three years. This incentive was withdrawn in 2012. The purpose of this incentive scheme was to assist the proper development of the municipal district as per s169 (1) (a) of the Act and in accord with s169 (1A). The following properties (over page) are currently eligible for the concession for 2010/11. The total concession made for the year will be $17,952.85.

11. Add notification regarding Capital Projects for which grant applications have been made.

Property	Title Description	Property	Title Description
243004804	Lots 1 TP 184257 Lot 1 LP 1270	111606353	Pt Lot 1 LP 116087
370802104	Lot 1 TP 201523	111606403	Pt Lot 1 LP 116087
366202002	Lot 1 PS 608673	115402203	Lot 53 PS 429581
363202302	Lot 5 Block C LP 492	366606702	CA 3 Sec 15
281015504	CA 56 Bourke	366605802	Lot 1 TP 400248
360600502	Lots 1 & 2 TP 533649	360001502	Lot A LP 132807
111606303	Pt Lot 1 LP 116087

Moved: Cr Leo Tellefson

Seconded: Cr David Pollard

Carried.

1. Executive Summary

This report recommends that council adopt the Municipal Budget for the year ending 30 June 2014.

Following a period of public exhibition Council has received one submission, from the Charlton Forum Inc. The submission did nt include a request to be heard.

Council has considered the submission and has noted the concerns raised. When considering the submission Council noted that there were no specific concerns raised, rather an overall level of significant concern with the ramifications of the proposed 10 Year Financial Plan as set out in the draft budget document.

The proposed 10 Year Financial Plan has been reviewed since the initial draft following further consideration by Council and discussion with the Monitor appointed by the Minister for Local Government to monitor implementation of the recommendations arising from the S135 Review report released in late 2012. As part of the review particular attention was given to future capital works programs and the ability of Council to fund such programs.

The 10 Year Financial Plan in its amended form is a very conservative approach to the future. And will be subject to ongoing review as new grants funding programs are announced by other levels of government.

As a consequence of the review the cumulative cash deficit situation originally forecast in the 10 Year projections has changed to a cash surplus situation by the end of 2015/16.

Council will continue to aggressively seek capital grants to fund significant projects going forward. However, these will only be undertaken where a contractual commitment for the external funding has been finalised.

2. Discussion

The Draft Council Plan 2013-2017 includes a 10 Year Financial Plan (Strategic Resource Plan) that provides a financial framework for meeting the objectives established in the Plan.

The key objective of the 10 Year Financial Plan is to achieve Council’s Strategic Objectives while continuously improving financial sustainability in the short, medium and long term.

The 2013/14 budget has been developed based on the 10 Year Financial Plan, to facilitate the achievement of the annual actions listed in the Council Plan, The Council Plan, 10 Year Financial Plan and the 2013/14 Budget have been developed simultaneously to ensure consistency in short, medium and long term planning considerations and to ensure that the opportunities, challenges and constraints that have been considered as part of the development of these important and significant documents have been consistently analysed and reviewed to inform better decisions.

Council also considered and agreed to a set of principles as part of the development of the 10 Year Financial Plan and the 2013/14

Theme	Principle
Best Value	Take account of the Best Value Principles from the Local Government Act: · All services must meet quality and cost standards · All services must meet be responsive to the needs of the community · Each service must be accessible by those members of the community for whom the service is intended · Council must achieve continuous improvement in the provision of services to the community · Council must develop a program of consultation with its community in relation to the services it provides and report regularly to the community
Alignment	Council’s budget will take account of the Council Plan, 10 year financial plan and other strategic plans
Balance	The budget will aim to balance the demand for services and infrastructure with the community’s ability to pay. Proposals for service delivery expansion or capital works projects must demonstrate consideration of social, economic and environmental impacts on the community
Operating Expenditure	Council will not borrow money to fund operating expenditure. Operating expenditure should be funded through operating revenue streams such as rates, fees and charges or operating grants.
Recurrent Capital Expenditure	The Council will not borrow money or obtain debt finance to fund the acquisition, replacement or renewal of assets that is expected to occur on an annual or similar basis at approximately the same level each year i.e. recurrent capital works. (Examples of this type of expenditure are road resurfacing, plant replacement, information technology and office equipment acquisitions and replacement. This type of expenditure must be funded through operating revenue streams such as rates and fees and charges.)
Borrowing	Prior to undertaking any borrowing the council shall assess its capacity to pay, to ensure that the community is not burdened with unnecessary risk. The council shall reassess its capacity to pay on an annual basis as part of its budget process. When assessing the borrowing ratios, consideration will be given to the economic earnings potential of the asset being acquired or constructed. The following indicators to be considered: · Liquidity Current Assets to Current Liabilities · Debt Exposure Total Liabilities to Total Realisable Assets · Debt Management Total Debt as a % of Revenue · Debt Management Debt Servicing Costs as a % of Total Revenue The term of any borrowing shall be set having due regard to the Economic Life of the asset being acquired or constructed. (Council will not generally borrow funds to acquire an asset that has an economic life of less than ten (10) years. · Council will give favourable consideration to borrowing money for the acquisition or construction of an asset where:- · The asset to be acquired is a new addition to council’s asset base or replaces an existing asset with one that is significantly upgraded and has an Economic Life of greater than 10 years; or · All alternative options for undertaking the project without borrowing have been investigated and proven less advantageous to the council; or · The income stream from the asset to be acquired or constructed exceeds the cost of borrowing over the life of that asset; or · Repayments will be met by a third party through an agreement adopted by council · The index of the cost of acquisition or construction is increasing at a rate that exceeds the cost of borrowing i.e. to “save” for the acquisition or construction will result in the actual cost being greater than the cost of borrowing the money and acquiring it today As a general rule the benefits received from undertaking the borrowing should be greater, over the life of the borrowing, than the costs of borrowing. The Council will not borrow funds when such borrowing would result in any of the following financial ratios being exceeded: · Current Assets to Current Liabilities <60% · Total Liabilities to Total Realisable Assets >150% · Total Debt as a percentage of revenue >100% · Debt Service Ratio >10%
Rate Revenue	Commit to eliminate present financial and infrastructure imbalances by 10 years’ worth of average annual % increases in rates, fees & charges of in excess of 2 times annual price inflation as measured by national CPI (Note: National CPI may not be the best long term measure but it is a recognised benchmark and the ‘basket’ of items that is used to construct it is periodically changed to reflect contemporary requirements)
Municipal Charge	Adjust the Municipal Charge to raise 10% of revenue from rates and charges through this mechanism by 30 June 2015. 7.5% of revenue from rates and charges to be raised through the Municipal Charge in 2013/14. .
Benchmarking	Council will continue to benchmark its financial decisions, financial ratios, rating policies and services against other small rural council’s with the objective of positioning itself to be better than the average for small Victorian rural councils across all indicators. Benchmarking will be used to guide achievable productivity improvements.
Financial Sustainability	Commit to a achieving a minimum sustainable operating surplus of 2.5% (income less expenditure excluding capital grants and depreciation) per annum within the shortest possible time and maintain this as the benchmark for development of the 10 year forward financial plan. An operating surplus of 2.5% be achieved no later than 30 June 2016 and maintained at or above this level for the next 7 years.
User Fees and Charges	Progress toward achieving full cost recovery for the major non-statutory fees and charges unless justification for another method is provided Fees and charges (other than statutory fees and charges and those driven by specific contractual arrangements) are to be increased in line with CPI or market levels, unless an alternative business case is approved.
Revenue Sources	New revenue sources are to be identified where possible
Employee Costs	Achieve a reduction in employee costs through internal management practices (efficiency, and effectiveness and productivity) and natural attrition.
New Employee Positions	New employee proposals which are not cost neutral (all cost basis) are to be justified through a business case that demonstrates increased service demand or the development of a new service/initiative which is aligned with the Council plan.
New Service Initiatives	Council only considering new service initiatives if funds are made available from other sources, including other levels of Government, to meet 100% of the cost of the proposed service.
Working Capital Ratio	Council’s objective is to attain and maintain a working capital ratio of no less than 150%; every $1 of current liabilities, Buloke has $1.50 of current asses to Achieve the Victorian Auditor General’s low financial risk rating.
Outsourcing	Actively seek opportunities to outsource where local cost competitive service providers are available.
Community Capacity Building	Work with the community to build its capacity to continue to contribute to the economic growth and wellbeing of the Shire.
Volunteer Capacity Building	Continue to work with the community to maintain and grow the role of volunteers in the community. Recognise the contribution volunteers make to the Buloke community.
Community Grants	Develop and implement a Community Grants Scheme to ensure greater accessibility, transparency and accountability in the allocation of council funds to community organisations and individuals to assist with events, sponsorship and community activities.

Economic Impacts on the 2013/14 Budget

When preparing the 2013/14 Budget, consideration has been given to the economic climate which will impact Council during the budget period.

Economic influences external to Council include:

· Constrained Federal and State Government fiscal environment

· Uncertainty of international markets which impacts agricultural production costs and margins

· General cost of living escalations

· Substantial increases in utility costs and insurance premiums

· The statutory environment which requires Council to meet legislative obligations, including:

o The introduction of the Fire Services property Levy required to be collected by local government

o Greater resource allocation to all aspects of emergency management planning

o Increased administration of domestic animal matters

o Increased compliance with regulations

· Increased community expectations regarding the need for flood mitigation works following the 2010 and 2011 flood events and the flow-on impacts these events have had on the insurance market and the regulatory environment facing home builders and others

Internal influences which have had a significant impact on the preparation of the 2013/14 budget being:

· Recommendations from the s135 Review of Council’s Financial Sustainability by the Minster for Local Government

· Recommendations from the Victorian Auditor General’s report on Fraud Strategies in Local Government

· Receipt of external funding for several large capital works projects that will require increased funding from rate revenue in 2013/14 and 2014/15

· Additional pressures resulting from the growth in service requirements and expectations, particularly in terms of roads

· The need to replace and upgrade ageing infrastructure

· The consequences of ongoing demographic change in the Shire (ageing population, changes to farming practices and the impact of new arrivals)

· Investment in developing workforce capability, particularly to achieve productivity, efficiency and effectiveness targets

· Recognition of the challenges in meeting strategic objectives in an environment of limited financial resources and the availability of appropriately skilled staff

2013/14 Budget

The proposed budget has been prepared in accordance with relevant statutory requirements including the Local Government (Finance and Reporting) Regulations 2004.

The key features of the proposed budget are:

1. Capital Works of $34.53M

During 2013/14 Council will continue to oversee the repair and reconstruction of roads and road related infrastructure affected by the 2010 and 2011 flood events. $28.5M will be spent during the year. All of the funds required for this work will be recovered through the Natural Disaster Response and Recovery Arrangements entered into by the Federal and State Governments.

During 2013/14 construction of the Donald Family Services Centre will be commenced.

Works commenced on the Berriwillock Community Centre, Charlton Traveller’s Rest, Sea Lake Swimming Pool and Charlton Swimming Pool in 2012/13 will be completed in 2013/14.

If funding is received from the federal government work will commence on the detailed design of flood mitigation works in Charlton and Donald as recommended by the respective Flood Plans completed in 20112/13. These are not detailed in the current budget as no formal confirmation of these grants has been received.

As indicated in the executive summary projects of this nature will only be included if and when external funds are formally confirmed.

Road projects (excluding flood repairs) to the value of $1.57M will be completed.

2. An operating surplus of $22.6M including capital revenue of $30.9M.

3. The underlying result will be a deficit of $8.3M. (The underlying result is derived by deducting capital income from the comprehensive result.)

4. Repayment of debt of $0.57M.

5. An increase in income from Rates, the Municipal Charge and the Garbage Charge of 6%.

6. Differential Rating

In April 2013, Ministerial Guidelines for Differential Rating were gazetted and must be applied to this budget and the 2013/14 rating year

Differential rates are established to:

· Assist Council to meet its primary objective of endeavouring to achieve the best outcome for the local community having regard to the long term and cumulative effects of Council’s decisions (s3C(1) of the Act);

· To raise revenue to be used to improve the overall quality of life of people in the local community within Council’s municipal district (in accordance with the facilitating objective of s3C(c) of the Act); and

· To ensure the equitable imposition of rates and charges (in accordance with the facilitating objective in s3C(2)(f) of the Act).

Council applies two differential rates (Farm Rate and Commercial/Industrial Rate) through the application of a percentage to the General rate.

The Farm Rate in 2013/14 is 98% of the general rate.

The Commercial/Industrial Rate is 100% of the general rate.

The Farm Rate has remained the same as in the previous year and takes into account ongoing difficulties experienced by the farming sector and the decision by Council to increase the percentage of rates raised through the Municipal Charge.

7. Rate Levels:

· General 0.7621% of CIV

· Commercial/Industrial 0.7621% of CIV

· Farm 0.7469% of CIV

8. Municipal Charge

The percentage of rates raised through the Municipal Charge has increased from 5% of total revenue from rates and charges in 2012/13 to 7.5% in 2013/14.

Council has indicated it will consider increasing the percentage of rates and charges revenue raised through the Municipal Charge to 10% in 2014/15.

This policy decision was influenced by submissions made to Council by local farm based ratepayers in 2012/13 in support of a campaign by the VFF to mandate 30% of local government revenue from Rates and Charges being raised through the Municipal Charge.

9. An amount of $10.48M is estimated to be raised by general rates, municipal charge and the waste charge.

· General Rates $9.03M

· Municipal Charge $0.60M

· Waste Charge $0.85M

10. The Municipal Charge will be increased from $100 to $130 for each rateable property to better address perceived inequities in the rating system as it impact farm based ratepayers.

11. An increase in the Garbage Charge of $21.70 to $255 per service to bring the revenue raised through the charge closer to a full cost recovery situation.

12. Early full rate payment discount of 1.5% on current year rates and charges to be granted if full payment (including any arrears and interest) is received on or before Monday 30 September 2013. (Note: the discount does not apply to the property Services Levy.)

13. A Community Grants Scheme is to be introduced in 2013/14 to ensure greater accessibility, transparency and accountability in the allocation of council funds to community organisations and individuals to assist with events, sponsorship and community activities.

The new Scheme will replace the former Mayor’s Fund arrangements, reporting on ad-hoc requests and historic sponsorship and support arrangements, including the provision of in- kind support.

The new Scheme is consistent with contemporary governance practices and its introduction follows the receipt of advice from the Local Government Investigations and Compliance Inspectorate of the need for reform.

An amount of $0.1M has been set aside for distribution through the Scheme.

The new arrangements will require many organisations who currently receive financial support from Council to apply under the new Scheme. A Guidelines document to the Scheme has been developed and community information and training opportunities will be offered.

3. Financial Implications

The proposed Budget 2013/14 provides the financial framework in which Council required to work for the forthcoming year.

4. Progress against the budget will be reported to Council on a monthly basis.

5. Community Consultation

The Council is required to give public notice of its intention to declare the rate and adopt the budget.

Section 223 of the Local Government Act provides that any person can make a submission to Council for consideration in respect to the budget within a 28 day period of formal notification. Council must hear any person requesting to be heard in respect to their submission.

Formal notification of the budget was given in Herald Sun on 29 July 2013 and in the three locally circulating newspapers the same week (week commencing 29 July 2013). During the public exhibition period the budget was available for inspection at the Council’s five District offices and on the Shire of Buloke website being www.buloke.vic.gov.au.

Publicity was undertaken in the local media during the exhibition period.

The hearing of any submissions was scheduled and held on Wednesday 28 August, 2013 from 5.00pm in the Council Meeting Room at the Donald District Office. The budget adoption decision has been made after consideration of all submissions. Only one submission was received and the submitter did not request to be heard.

6. Internal Consultation

The budget has been prepared by the Finance Manager with extensive input from Councillors, the Senior Management team and Budget Managers.

7. Legislative / Policy Implications

In accordance with the Local Government Act 1989 Council must:

· prepare a budget for each financial year commencing 1 July (s127)

· declare the amount it intends to raise by general rates (s158)

· comply with guidelines established under s161 (Ministerial Guidelines for Differential Rating)

The Council must adopt its budget and forward a copy to the Minister for Local Government by 31 August 2013.

8. Environmental Sustainability

There are no environmental considerations arising from this report.

9. Conflict of Interest Considerations

Section 79C(2) of the Local Government Act indicates that if a budget or revised budget to be approved by Council includes funding for a matter of which a Councillor has a Conflict of Interest, the Councillor is taken not to have a Conflict of Interest for the purposes of approving the budget or revised budget if:

- The Council approved the matter and proposed funding previously; and

- The Councillor disclosed the nature of the Conflict of Interest when the decision in respect of the funding was originally considered and made.

10. Conclusion

Council has complied with all of the relevant requirements of the Local Government Act (1989) (The Act) relating to budgets and revised budgets.

The Council will give public notice of its decision under subsection (1) of “The Act.”

Council’s adoption of this budget complies with the requirement of “The Act” that Council must adopt the budget by 31 August each year.

Council will submit a copy of the budget to the Minister by 31 August as required by “The Act.”

A copy of the adopted budget will be made available at all Council District Offices and be published on the council’s website.

Council has considered all submissions received as part of the process of adopting this budget.

Buloke Shire Council Special Meeting Wednesday, 28 August 2013

5.1.3 Adoption of Budget for Municipal Year Ending 30 June 2014

Attachment 1 Budget 2013/14

1.0 Budget Process

The Local Government Act 1989 requires Council to prepare and adopt an annual budget for each financial year. The budget is required to include certain information about the rates and charges that Council intends to levy as well as a range of other information required by the Regulations which support the Act. The budget is required to be adopted and a copy submitted to the Minister for Local Government by 31 August each year

The 2013/14 budget, which is included in this report, is for the year 1 July 2013 to 30 June 2014 and has been prepared in accordance with the Act and relevant Regulations.

The budget includes standard statements being a budgeted Income Statement, Balance Sheet, Cash Flows and Capital Works. These statements have been prepared for the year ended 30 June 2014 in accordance with the Act and Regulations, and consistent with the annual financial statements which are prepared in accordance with Accounting Standards.

The budget also includes detailed information about the rates and charges to be levied, the capital works program to be undertaken and other financial information, which Council requires in order to make an informed decision about the adoption of the budget.

The key process followed to prepare the budget is summarised in the Table below.

Budget process	Timing
1. Officers update Council's long term financial projections	March/May
2. Officers prepare operating and capital budgets	Jan/May
3. Councillors consider draft budgets at informal briefings	Mar/May
4. Proposed budget submitted to Council for approval	July
5. Public notice advising intention to adopt budget	July
6. Budget available for public inspection and comment	July/Aug
7. Public submission process undertaken	July/Aug
8. Submissions period closes (28 days)	July/Aug
9. Submissions considered by Council/Committee	Aug
10. Budget and submissions presented to Council for adoption	Aug
11. Copy of adopted budget submitted to the Minister	Aug
12. Revised budget where a material change has arisen	Sep-Jun

2.0 Strategic Planning Framework

2.1 Linkage to the Council Plan

The budget is directly linked to the Council Plan 2013-2017. This ensures the budget is directly aligned to the outcomes set out in the Council Plan.

As part of the process of developing the Council Plan 2013-2017 and the 2013/14 Budget Council has also developed a 10 year forward financial plan.

The 10 year financial plan sets out Council’s financial objectives for the period and will be used on an ongoing basis to ensure decisions made are consistent with the objectives of the plan.

The diagram below depicts the strategic planning framework used by Council.

The timing of each component of the planning framework is critical to the successful achievement of the planned outcomes. The Council Plan, including the Strategic Resource Plan, is required to be completed by 30 June following a general election and is reviewed each year by February to ensure that there is sufficient time for officers to develop their Activities and Initiatives and Key Strategic Activities in draft form prior to the commencement of the Annual Budget process in March. It also allows time for targets to be established during the Strategic Resource Planning process to guide the preparation of the Annual Budget.

1.2 Our purpose

Our Vision, Mission and Values

2.2 Strategic objectives

Council delivers activities and initiatives under 72 service categories. Each contributes to the achievement of one of the five Strategic Objectives as set out in the Council Plan.

The Council Plan 2013-2017 sets out 5 Strategic Objectives. The 5 Strategic Objectives set out in the plan, the priorities identified to be achieved in meeting the objectives and how progress is to be measured is detailed below:

Strategic Objective 1: Our Community

A Buloke community where people of all ages, backgrounds and abilities are embraced and supported and can access the Council services they need to live healthy and fulfilling lives.

A Buloke community connected and involved in shaping decisions that affect them.

1.1 Working with the community to make Buloke an even better place to live.

Priorities

· advocating for and investing in innovative models of service delivery.

· continuously reviewing the services provided to ensure they are meeting community needs and are being delivered efficiently in a cost effective manner.

· supporting and valuing volunteers.

· supporting the provision of a broad range of housing choice, affordability and availability.

· supporting the provision of innovative support and services to an aging population.

· engaging with and connecting with young people.

· advocating for improved health outcomes.

· supporting sports and recreation clubs and facilities.

· supporting the continuing development of community-based arts and cultural activities.

· collaboration with tertiary institutions and other research organisations to increase our knowledge of local service needs, aspirations and indicators of wellbeing.

Challenges

· Connecting with young people across the Shire and engaging them in decision making and planning futures.

· Maintaining and developing a pool of trained volunteers to continue to support community endeavours across the Shire.

1.2 Working with communities and other stakeholders in planning for and making decisions about the future.

Priorities

· Ensure all major projects and strategies are informed through community and stakeholder consultation which is guided by Council’s Community Consultation framework and, where relevant, appropriate advisory committees and/or consultative mechanisms.

· Explore current and future opportunities to improve Council’s community engagement and consultation activities.

· Actively engage with township forums, progress associations, Chambers of Commerce and other organisations to further develop and implement their respective community plans.

· Celebrate the vitality and resilience of towns and localities across the Shire through facilitation and support for events and community festivals.

· Continue to identify and pursue grant opportunities for community-based organisations across the Shire and provide support and assistance where appropriate.

· Continue to work with local communities to maintain linkages with past residents through providing advice on local events through print and electronic media opportunities.

Challenges

· Developing the capacity to make use of changing technologies to connect with, communicate with and engage with the community.

· Maintaining the currency and relevance of community plans to communities across the Shire.

Priorities

· Develop a community safety risk assessment process for service and project activities and progressively implement this over the term of the Plan.

· Advocate to State Government and Victoria Police to maintain a police presence in the Shire at current levels and to improve response times to incidents in small towns and isolated communities.

· Advocate for improvements to telecommunications infrastructure in the Shire include mobile telephone coverage, improved internet access and faster download speeds.

· Advocate to Commonwealth and State Governments for further improvements to rural addressing, including the use of contemporary technologies, to improve response times by emergency services.

· Continue to develop methods of communication and engagement with residents through the use of telecommunications, the internet and printed materials.

Challenges

· Raising community awareness as to the importance of community safety and the need to consider this as part of everyday life.

Strategic Indicators 2013 – 2017

INDICATOR	MEASURE	SOURCE	2013/14 TARGET	2014/15 TARGET	2015/16 TARGET	2016/17 TARGET
Community satisfaction with Council’s overall performance	Survey score	Victorian Local Government Community Satisfaction Survey	54	55	56	57
Community satisfaction with Council’s engagement in decision-making on key local issues	Survey score	Victorian Local Government Community Satisfaction Survey	57	58	59	60
Councillors fulfilling their obligation to represent the views of their constituents and to allow decision making to take place	Councillor attendance at ordinary and Special meetings	Council records	100%	100%	100%	100%
Use of Council’s website	Number of hits annually	Council	19,000	20,000	21,000	22,000
Community satisfaction with Council’s provision of elderly support services	Survey score	Victorian Local Government Community Satisfaction Survey	71	72	73	74
Community satisfaction with Council’s provision of family support services	Survey score	Victorian Local Government Community Satisfaction Survey	63	64	65	66

Strategic Objective 2: Our Local Economy

A local economy in which the contribution of the agricultural sector and business sector is recognised and their continued growth actively encouraged and supported.

A local economy in which new business is actively encouraged; investment welcomed; employment created; business skills developed and local networks are supported.

2.1 Building on our comparative advantages in sustainable agricultural production and related value-adding and service industries.

Priorities

· Actively participate in regionally significant economic development projects and continue to market Buloke Shire from a leadership position.

· Continue to operate the Wycheproof Saleyards as an important regional livestock exchange.

Challenges

· Sustaining economic development capability and the capacity to liaise with key stakeholders.

Priorities

· Help develop the local economy through implementation and ongoing review of Council’s Economic Development Strategy.

· Review and apply the Industrial Land Use policy provisions within the Buloke Planning Scheme to ensure it encourages business investment while maintaining the character of the Shire.

· Celebrate the success of outstanding local businesses through the biennial Buloke Business Excellence Awards.

· Promote Buloke Shire as an attractive location for business investment through local, regional and State opportunities as they present themselves.

· Encourage and actively support trader associations in the major towns across the Shire.

· Encourage and actively support the development of tourism opportunities in the Shire.

· Support local businesses through the development of appropriate networks and training opportunities.

Challenges

· Attracting new investment.

2.3 Development of infrastructure and services that take advantage of the major transport routes through the Shire, including experiential visitor opportunities.

Priorities

· Advocate to the State Government for investment in the maintenance and upgrade of the State highways, particularly the Calder Highway and Sunraysia Highway to improve safety and ride-ability.

· Advocate for the provision of high-quality, regular and efficient passenger and rail freight transport initiatives in the Loddon Mallee and Wimmera Southern Mallee regions.

Challenges

· Alignment of Commonwealth and State road, rail and freight investment programs with local needs.

2.4 Encouraging innovative energy solutions for future energy generation.

Priorities

Challenges

· Attracting investment in the renewable energy sector.

· Capacity of local electricity feeder network.

2.5 Advocating for the provision of essential infrastructure (including telecommunications) to support new and existing businesses, including farm-based enterprises.

Priorities

· Develop a Shire-wide supported approach to drive improvements in broadband and mobile phone coverage.

· Develop innovative local information and communication technology solutions through community planning initiatives.

Challenges

· National Broadband rollout program currently projects access to the slower fixed wireless service for all parts of the Shire except for Donald which will be connected to optical cable.

Strategic Indicators 2013 – 2017

INDICATOR

MEASURE

SOURCE

2013/14

TARGET

2014/15

TARGET

2015/16

TARGET

2016/17

TARGET

Community satisfaction with business and community development and tourism

Survey score

Victorian Local Government Community Satisfaction Survey

Level of commercial and industrial building development within the Shire

Value of building approvals maintained or increased

Shire of Buloke – Value of Building Approvals

$8.5M

Strategic Objective 3: Our Built Environment

A Shire planned to meet the current and future needs of the agricultural sector while maintaining and enhancing its natural environment.

A Shire where roads, drains, public spaces, community facilities, parks and other essential infrastructure are fit for purpose, well maintained and contribute to the well-being of the community.

3.1 Improving local road and transport networks to facilitate safe and efficient transport movement within and across the Shire.

Priorities

· Work with the State Government to improve the safety and trafficability of the Calder Highway, Sunraysia Highway and Borung Highway.

· Work with the State Government to increase the percentage of freight carried on the rail network.

· Advocate for new services and for improvements in the convenience and frequency of public transport services.

· Keep local roads maintained to a high standard as specified in Council’s Road Management Plan.

· Continue to develop more opportunities for movement within towns by bicycle and on foot.

· Facilitate access to town centres by providing clearly marked and safe car parking facilities.

Challenges

· Alignment of Commonwealth and State road, rail and freight investment programs with local needs.

· Commonwealth fiscal policy and continued restrictions on the growth of Grants Commission allocations.

· Ability for Council to continue to fund road rehabilitation and road maintenance at current levels.

3.2 Maintaining and improving the condition of Council owned assets to ensure essential services are provided and the community has access to quality public facilities.

Priorities

· Develop a Sustainable Sports Facility Management Plan to improve water management, ensure surfaces are more drought tolerant, reduce energy consumption and meet contemporary playing requirements.

· Ensure infrastructure developments provide equitable access for all abilities.

· Continue to implement Council’s Strategic Drainage Program.

· Continue to implement Council’s Strategic Swimming Pool Upgrade Program.

· Consider and respond to the recommendations of town Flood and Drainage Plans developed following the 2010 and 2011 flood events.

· Create and maintain the amenity and safety of the Shire’s townscapes, streetscapes and rural environments.

Challenges

· Balancing the demand for maintenance and upgrade of existing infrastructure with long-term financial capacity.

· The impact of a slowly declining population on the capacity to maintain the number and variety of sports and recreation facilities within the Shire.

· Balancing the need for flood mitigation and protection works in flood affected towns with financial capacity.

3.3 Ensure the built environment of the Shire is appropriately regulated.

Priorities

· Provide high-quality and timely statutory planning, building compliance and environmental health services to businesses and individuals in the community.

· Complete the review of the Buloke Planning Scheme, including the Municipal Strategic Statement.

· Seek funding from the State Government to help develop Township Structure Plans that will assist in shaping the changing needs of the small townships and localities that make up the Shire.

· Encourage high-quality affordable residential development that contributes to the character of the Shire and meets the needs of the community.

Challenges

· Retention and attraction of professional staff.

· Lack of investment in new housing, commercial and industrial developments to facilitate the capacity to improve the amenity and future needs of townships.

· Age of much of the current housing, industrial and commercial stock and the relatively high cost of upgrade and modernisation.

Strategic Indicators 2013 – 2017

INDICATOR	MEASURE	SOURCE	2013/14 TARGET	2014/15 TARGET	2015/16 TARGET	2016/17 TARGET
Community satisfaction with general town planning policy	Survey score	Victorian Local Government Community Satisfaction Survey	56	57	58	59
Community satisfaction with planning and building permit services	Survey score	Victorian Local Government Community Satisfaction Survey	53	54	55	56
100% of planning applications processed within the statutory limit	No applications outside of statutory limit	Council – Planning Approvals Issued	100%	100%	100%	100%
Community satisfaction with recreation facilities	Survey score	Victorian Local Government Community Satisfaction Survey	70	71	72	73
Community satisfaction with swimming pool facilities	Survey score	Victorian Local Government Community Satisfaction Survey	50	51	52	53
Community satisfaction with the condition of local streets and footpaths	Survey score	Victorian Local Government Community Satisfaction Survey	55	56	57	58
Community satisfaction with the maintenance of unsealed roads	Survey score	Victorian Local Government Community Satisfaction Survey	40	41	42	43

Strategic Objective 4: Our Natural environment

A Shire working with the community to reduce our carbon footprint, protect and enhance the natural environment and share experiences and information.

4.1 Leading the community through demonstrating Council’s management of resources to reduce its impact on the environment.

Priorities

· Reduce Council’s greenhouse gas emissions through a range of conservation measures.

· Continue efforts for Council operations and facilities to become more water-wise by implementing storm water re-use strategies.

· Continue to install energy and water conservation measures in Council facilities and use and reuse sustainable building materials.

· Implement strategies to improve storm water quality through the development of wetlands, bushland reserves and enhancement of natural waterways.

· Continue to purchase green products as part of Council’s support of the ECO-Buy Program.

Challenges

· Implementing water-saving techniques at key recreation and community facilities across the Shire.

· Achieving a balance between the need to implement flood mitigation measures and the financial capacity of Council and the community.

· Educating the community to reduce waste, to become less reliant on disposing of unwanted materials at landfill and becoming more effective recyclers.

4.2 Providing services and advice to the community to assist in reducing its impact on our natural environment.

Priorities

· Continuing to implement the Waste Wise Program to help reduce the amount of waste that goes to landfill.

· Work with the community to increase recycling and grow awareness about waste disposal through a marketing and education program including school education.

· Continue long-term planning for sustainable waste disposal facilities.

· Work with the community to encourage the development of alternative energy sources for business and domestic purposes.

· Work with the community to establish a Shire-wide program of activities to reduce the consumption of carbon with the ultimate objective of the Shire becoming carbon neutral.

Challenges

· Educating the community to reduce waste, to become less reliant on disposing of unwanted materials at landfill and to be more effective recyclers.

· Raising awareness of the importance of personal and local actions in meeting the global challenge to reduce greenhouses gases.

4.3 Protecting our natural assets through the development and implementation of short- term and long-term land use planning and environmental programs.

Priorities

· Using the Municipal Strategic Statement (MSS) to manage development and protect the natural character of Buloke.

· Continuing to rolling out a program of planning and improvements to streetscapes, parks and waterways through Council’s Capital Works program.

Challenges

· Ensuring the relevance of the MSS as local economic and social conditions change.

· Having the financial capacity to continue to improve streetscapes, parks and waterways.

Strategic Indicators 2013 – 2017

Indicator	Measure	Source	2013/14 Target	2014/15 Target	2015/16 Target	2016/17 Target
Community satisfaction with the enforcement of local laws	Survey score	Victorian Local Government Community Satisfaction Survey	63	63	63	63
Community satisfaction with the appearance of public areas	Survey score	Victorian Local Government Community Satisfaction Survey	74	74	74	74
Community satisfaction with waste management services	Survey score	Victorian Local Government Community Satisfaction Survey	74	75	76	77
Waste diverted from landfill (Recyclables collection)	Kilograms of recyclables collected per household	Council – volume of materials collected by Council’s recyclables collection contractor	275kgs	280kgs	285kgs	290kgs

Community satisfaction with the roadside slashing and weed control

Survey score

Victorian Local Government Community Satisfaction Survey

Strategic Objective 5: Our People and organisation.

An organisation that is responsive to the evolving needs of the community.

An organisation that is responsibly governed with a strong emphasis on sustainable financial and risk management.

An organisation that values and supports the development of its people and is a employer of choice.

An organisation committed to active communication and engagement with our community.

5.1 Continuing to actively listen to the community and providing constructive and timely feedback on proposed actions.

Priorities

· Councillors and senior staff regularly attending township forum and progress association meetings to report on Council activities, listen to local concerns and provide feedback on past activities.

· Continue the “Fire Shed” community meeting initiative as a means of regular communication and contact with farm-based residents of the Shire.

· Continue to publish Community Matters on a six weekly cycle in local newspapers.

· Develop and publish a quarterly newsletter to be sent to all Shire residents either by email or in hard copy.

· Maintain Council’s website to ensure the relevance and currency of information and explore opportunities to use emerging electronic communication and engagement tools.

· Implement upgrades to the Customer Request tracking system to ensure all requests are logged and appropriate feedback provided.

Challenges

· Making best use of the communications technology available to Council.

· Investing in new communication technologies as it is developed and gains public acceptance.

· Responding in a timely fashion in a world where the receipt of an “instant” response to a request is increasingly becoming the “norm”.

5.2 Working with local leaders and organisations to achieve sustainable Shire-wide and local change.

Priorities

· Continue to sponsor at least two emerging local leaders as participants in the annual Loddon Murray Community Leadership Program.

Challenges

· Ensuring Buloke Network and Chamber of Commerce Chairs meetings are relevant, informative and productive.

5.3 Ensuring Council is well governed and its finances and risks are managed sustainably and responsibly.

Priorities

· Continue Council’s risk management program including the development of a plan to identify and mitigate high-level corporate and community risks.

· Maintain good governance processes for Council and Special Committee meetings and communicate decisions to the community.

· Ensure Council services comply with relevant legislation and regulation by providing ongoing staff training.

Challenges

· Cost shifting from other levels of Government to local government is expected to remain a challenge for the term of this Plan.

· Achieving a balance between meeting the needs and aspirations of residents and the financial capacity of Council.

· Containing costs to levels that are within the constraints set as part of the long-term financial plan.

5.4 Continuing to improve the organisation and its people to provide our community, businesses and visitors with the best possible services.

Priorities

· Continue to develop a customer service culture to ensure the organisation responds to the needs of the community.

· Build the future workforce through continuation of the apprenticeship, trainee and graduate programs across the organisation.

· Continue to provide flexible working arrangements and promote Council’s family-friendly policies.

· Provide a healthy and safe working environment through the organisation’s Occupational Health and Safety policies and programs.

· Provide ongoing training and professional development programs for Councillors and staff.

Challenges

· Attracting and retaining key staff, particularly in management and technical roles.

· Containing employee costs within the constraints of the long-term financial plan.

Strategic Indicators 2013 – 2017

INDICATOR	MEASURE	SOURCE	2013/14 TARGET	2014/15 TARGET	2015/16 TARGET	2016/17 TARGET
Councillors fulfilling their obligation to represent the views of their constituents and to allow decision making to take place	Councillor attendance at ordinary and Special meetings	Council records	100%	100%	100%	100%
Audit committee meetings conducted per annum	Minimum four meetings held per year	Council – record of meetings	4	4	4	4
Community satisfaction with community consultation and engagement	Survey score	Victorian Local Government Community Satisfaction Survey	57	58	59	60
Community satisfaction advocacy performance of Council	Survey score	Victorian Local Government Community Satisfaction Survey	55	56	57	58
Community satisfaction with informing the community	Survey score	Victorian Local Government Community Satisfaction Survey	58	59	60	61
Community satisfaction with customer service contact	Survey score	Victorian Local Government Community Satisfaction Survey	73	74	75	76
Community satisfaction with the emergency and disaster management	Survey score	Victorian Local Government Community Satisfaction Survey	66	66	66	66

Underlying result (per cent) (Adjusted net surplus/ total underlying revenue)	A positive result indicates a surplus. The larger the percentage, the stronger the result. A negative result indicates a deficit.	Council – Annual Accounts	-49%	-41%	-38%	-33%
Liquidity (current assets/ current liabilities)	Ability to pay existing liabilities. A ratio higher than 1:1 means there is more cash and liquid assets than short-term liabilities.	Council – Annual Accounts	11%	-138%	-199%		-2615%
Indebtedness (per cent) (non-current liabilities/ own-sourced revenue)	Comparison of non-current liabilities (mainly comprised of borrowings) to own-sourced revenue. The higher the percentage the less able the entity is to cover non-current liabilities from the revenues the entity generates itself .	Council – Annual Accounts	8.1%	1.6%	0%		0%
Self-financing (per cent) net operating cash flows/ underlying revenue	Ability to replace assets using cash generated by the entity’s operations. The higher the percentage the more effectively this can be done.	Council – Annual Accounts	90%	59%	199%		6%
Capital replacement Capital expenditure/ depreciation	Comparison of the rate of spending on infrastructure with its depreciation. Ratios higher than 1:1 indicate that spending is faster than the depreciation rate .	Council – Annual Accounts	TBA	TBA	TBA		TBA
Renewal gap Renewal and upgrade expenditure/ depreciation	Comparison of the rate of spending on existing assets through renewing, restoring, and replacing existing assets with depreciation. Ratios higher than 1:1 indicate that spending on existing assets is greater than the depreciation rate .	Council – Annual Accounts	544%	94%	96%		98%

3.0 Budget influences

3.1 Snapshot of Buloke Shire Council

Buloke Shire is located in north-western Victoria, between 210 and 360 kilometres north-west of Melbourne.

Buloke is bounded by Mildura and Swan Hill Rural Cities in the north, Gannawarra and Loddon Shire in the east, Northern Grampians Shire in the south, and Yarriambiack Shire in the west.

Buloke is a predominantly rural area. The main townships are Birchip, Charlton, Donald, Sea Lake and Wycheproof. Smaller townships include Berriwillock, Culgoa, Nandaly, Nullawil and Watchem.

The Shire encompasses a total land area of approximately 8,000 square kilometres. It is approximately 140 kilometres long and 60 kilometres wide.

Two main highways, the Calder Highway and the Sunraysia Highway, run north and south through the Shire.

Land is used largely for agriculture, particularly grain (wheat, oats and barley) production and sheep grazing.

Buloke is named after the “buloke” or “bulloak” tree, Allocasuarina luehmannii, which is common in the area.

3.2 External influences

There are many external factors that affect Council’s current economic capacity and its future financial planning.

This discussion focuses on those matters considered most relevant to Council’s current deliberations

Demography

The Buloke community at the last Census (2011) consisted of 6,381 persons (1,532 (24%) over the age of 65; 3,280 (51.5%) between 20 and 64 years; 1,231 (19.2%) between 5 and 19 years; and 339 (5.3%) between 0 and 4 years).

Buloke is a homogenous community with 5,764 (90.3%) of its residents born in Australia.

The educational qualifications attained by Buloke residents are comparatively less than found in regional Victoria with only 1,542 residents (29.1%) holding post-secondary educational qualifications.

Economic Outlook

Workplaces in Buloke currently provide approximately 2,646 jobs. Agriculture is the most substantial employment sector in the Shire, providing 818 jobs (30.0%). This is followed by 319 jobs (11.7%) in the health sector, 227 (8.3%) in the education sector, 214 (8.9%) in the retail trades sector and 155 (5.7%) in the public administration sector.

A small number of people work in the manufacturing sector (130 or 4.8%) and the construction sector (130 or 4.8%).

A high proportion, 2,403 (90.8%), of the jobs in Buloke are filled by people who live in the Shire.

Comparison of employment by industry between the 2006 and 2011 ABS census results illustrate the changes that are taking place in the Buloke economy.

Volunteering is an important part of the Buloke economy and is an accepted indicator of community cohesiveness and wellbeing, and of how readily individuals are able to contribute to their community.

National/State Economic Factors

The midyear financial outlook for 2012/13 released by the Commonwealth Government forecast that the Australian economy will continue to grow strongly for the reminder of the year and for the medium term.

The unemployment rate is forecast to remain low (5.25% or less) for the next several years with inflation at 2.5% for the same period.

The key risks to Australia’s economic outlook are seen by the Government to be external and related to the crisis in the euro area, imminent fiscal tightening in the United States and the challenges facing the Chinese economy as new leadership tries to move their economy to a more sustainable growth path in the context of a weak and uncertain outlook for external demand.

The 2013/14 Commonwealth Budget was released in May 2013 and confirmed the projected directions of the national economy for the next few years.

The May budget also confirmed the future directions of the extent of Federal funding support to Local Government. Current Grants Commission arrangements were confirmed and a further commitment made to the Roads to Recovery program. The Budget also contained a strong commitment to regional development, particularly support for regional and rural communities..

The Budget also referenced a small increase in funding for services to older persons but was no suggestion of any significant change to current funding arrangements. Introduction of the National Disability Insurance Scheme may have some impact on Local Government but this will not be known until full details of the scheme are announced.

A change of Government following the anticipated 2013 Federal Elections may result in some changes to the May budget, but any changes of significance to Local Government are not likely until the May 2014 Budget.

The 2013/14 Victorian Budget was also released in May.

The current outlook for Victoria is similar to the Federal situation. Unemployment is forecast to rise to 5.5% in the next twelve months and then fall back to 5% for the medium term. CPI is forecast at the same level as the national outlook, 2.5%.

The focus of the 2013/14 Victorian Budget remained on fulfilling the election undertakings (promises) made at the last State election. With a State election due in 2014 this will be the last full Budget year to fund those undertakings.

The MAV and VLGA have made submissions to the State Government for improved funding arrangements for a number of services delivered by Local Government. To date there has been no response from Sate Government to these submissions and it is difficult to forecast if any of these initiatives will result in improvements to current arrangements.

Overview of External Influences

The Table below highlights some of the external influences that need to be considered by Council when making decisions about budget and setting rate levels.

Assumption	Commentary
Rates will continue to form a significant part of Council’s revenue stream.	Despite the structural inequities inherent in using property values as a tax base, no change to this method of calculating municipal rates is predicted in the foreseeable future. Tax reform has been on the agenda for Federal and State Governments for many years but there has been no indication of changes to current tax arrangements that would open up new tax revenue opportunities to Local Government. The current proposal to seek Constitutional recognition for Local Government is unlikely to change this situation. Property values, particularly for farm properties, in the north of the Shire are expected to continue to rise over the next few years as a result of increasing world demand for food and the demand for land for purposes other than food production. The value of other property types within the Shire are not expected to rise at the same rate as farm properties therefore increasing the potential for inequities the distribution of rating impact.
Federal Government forward projections for CPI increases are 2.5% for the next 3 years.	CPI increases in rural areas are likely to increase at a faster rate than national averages due to the impact of transport costs, distance and lack of market competition. Projected increases in rural areas are likely to be between 3.0% and 3.5% annually. Construction materials, contracts, goods and service costs are estimated to increase in the range of 4.5% to 6%. Fuel and associated products pricing expected to remain high based on worldwide demand. Council cannot isolate itself from the impact of these rises.
Federal Government forward projections for wage growth are for 3.75% per annum for the next three years.	Wage growth in rural areas is historically below national averages. However, the growth of pattern and sector bargaining as provided for under the Fair Work Act is likely to lead to change is this situation. Projected increases in wage growth in Buloke for the next three years are 3% per annum. This anticipated increase puts further pressure on Council to restrain increases in employment costs as outlined earlier. A target of 2% growth per annum is proposed.
The level of rates and charges required to be raised by Council is directly related to the services to be provided and the service standards to which they are provided.	The underlying assumption for the 2013/14 Budget is that the Buloke community wishes to see current services continue to be provided. No opportunities have arisen over the last year for Council to determine to cease providing a particular service. Opportunities have been grasped to improve productivity and reduce costs but no service has been discontinued. Service levels can be reduced in some areas of Council activities and some trial changes to service levels have been initiated Such reductions need to be undertaken following a full assessment of consequences. There has been no pressure from the community for Council to initiate new services in the last 12 months. It is assumed that any new services to be initiated will only be considered if funds are made available from other levels of Government for that purpose.
‘Untied’ Federal and State Governments grant programs are likely to reduce in scale and availability.	Successive Federal Governments have indicated a desire to review the Federal Assistance Grants Program (FAGS) but as no viable alternative has been suggested the current system has remained. The long term future of FAGS continues to be questionable. Annual increases in FAGS allocations have been contained to prevailing CPI or just below. This rate of increase is projected to increase for the next few years unless the scheme itself is reviewed. A reduction in ‘untied’ grants funding would have a significant impact on Council’s future expenditure decision making decisions. Any reduction in ‘untied’ grants would require Council to review its service mix to ensure maximum benefit from grant funds available.
Federal and State ‘tied’ grants program are expected to continue.	No changes to ‘tied’ grant arrangements are forecast for 2013/14. ‘Roads to Recovery’ or a similar road funding program will continue for the next four years. It is expected that the current trend of annual increases in grant funds, but with a decrease in real terms, will continue.
State Government levies	Increases in State Government levies are projected to continue to impact Local Government.
The cost of compliance with Federal and State Governments statutes, regulations and other compliance regimes is not negotiable.	Council is established under the Victorian Constitution and is required to comply with Victorian Statutes and associated regulation. Council must meet its statutory obligations. The cost of meeting statutory requirements is part of Council’s core governance responsibilities.
Federal and State Governments will seek to raise additional revenue through levies on transactions, licences and services provided by Council.	This form of ‘cost shifting’ will become more prevalent and have an increasing impact on ‘affordability’. Current examples include levies on land fill activities and dog and cat registration.
‘Peak oil’ and other energy related global problems will have an impact on fuel and energy prices.	Fuel and energy prices are projected to increase at levels well above projected CPI increases.
Volunteers will continue to play an important part in the life of the Shire	Volunteers are already significant contributors to a range of Council services. Volunteer numbers have been falling slowly for a number of years. Council’s responsibility for the management of volunteers has increased significantly in recent years. The recent Federal OH&S Laws are a further example of this trend. Council will need to develop new approaches to the recruitment, retention and management of volunteers.

In preparing the 2013/14 budget, a number of external influences have been taken into consideration, because they are likely to impact significantly on the services delivered by Council in the budget period. These include:

· Australian Average Weekly Earnings (AWE) growth for Public Sector full-time adult ordinary time earnings in the 12 months to May 2012 was 3.6% (ABS release 16 August 2012). The wages price index in Victoria is projected to be 3.25% per annum in 2013/14 increasing to 3.50% in the subsequent two years (Victorian Budget Papers 2012/13). Council must renegotiate a new Collective Agreement during the 2013/14 year for commencement on 1 July 2014.

· The ‘Engineering Construction’ and ‘Non-Residential Building’ Indices prepared by the Construction Forecasting Council are forecast at 2.4% and 3.8% respectively for 2013/14.

· Under new legislation, the Fire Services Property Levy Act 2012, introduced as a result of recommendations by the Victorian Bushfires Royal Commission (VBRC), a new Fire Services Property Levy (FSPL) will be collected by Council on behalf of the State government, to fund the operations of the MFB and CFA. The levy will apply to all private property owners – including persons and organisations who do not currently pay council rates, such as churches, charities, private schools and RSL’s – from 1 July 2013. A number of Council properties will also be subject to the fire levy.

· Advance payment of 50% of the 2013/14 Victorian Grants Commission general assistance allocation in the 2012/13 financial year.

3.3 Budget principles

In response to these influences, guidelines were prepared and distributed to all Council officers with budget responsibilities to assist with 2013/14 Budget preparation.

The guidelines set out the key budget principles upon which the officers were to prepare their budgets. The principles included:

· Existing fees and charges to be increased in line with CPI or market levels.

· Grants to be based on confirmed funding levels.

· New revenue sources to be identified where possible.

· Service levels to be maintained at 2012/13 levels with the aim to use less resources with an emphasis on innovation and efficiency.

· Salaries and wages to be increased in line EBA arrangements.

· Contract labour to be minimised.

· Construction and material costs to increase in line with the Engineering Construction Index

· New initiatives or employee proposals to be justified through a business case.

· Real savings in expenditure and increases in revenue identified in 2012/13 to be preserved

· Operating revenues and expenses arising from completed 2012/13 capital projects to be included.

3.4 Long term strategies

The budget includes consideration of a number of long term strategies and contextual information to assist Council to prepare the Budget in a proper financial management context. These include a ten year forward financial plan and other long term strategies (section 10.) including borrowings, infrastructure and service delivery.

4.0 Analysis of Operating Budget

This section analyses the operating budget including expected income and expenses of the Council for the 2013/14 year.

4.1 Budgeted income statement

3.1.1 Underlying deficit (1.6 million increase)

The underlying result is the net surplus or deficit for the year adjusted for capital grants, contributions of non-monetary assets and other once-off adjustments. It is a measure of financial sustainability and Council’s ability to achieve its service delivery objectives as it is not impacted by non-recurring or once-off items of income and expenses which can often mask the operating result.

The underlying result for the 2013/14 year is a deficit of $8.5M which is an increase of $1.6M over the 2012/13 year. This is mainly attributable to the $1.3M increase in depreciation expense following the revaluation of road infrastructure assets in 2012/13.

In calculating the underlying result, Council has excluded grants received for capital purposes as funding for the capital works program is once-off and usually non-recurrent. Contributions of non-monetary assets are excluded as the value of assets assumed by Council is dependent on the level of development activity each year.

4.2 Income

The chart below provides a graphic representation of the sources of revenue currently available to Council with a breakdown by revenue source.

4.2.1 Rates and charges ($0.62M increase)

It is proposed that general rate income be increased by 5% for Commercial and Residential properties over 2012/13.

The rate for farm properties is set to increase by 4% over the previous year with a reduction in the farm differential to 98% of the general rate.

The Municipal charge is to be increased from $100 to $150 per assessment.

The overall increase in rates and charges for 2013/14 is 6%. (Section 9. “Rating Information” includes a more detailed analysis of the rates and charges to be levied for 2013/14).

4.2.2 Statutory fees and fines ($0.036M decrease)

Statutory fees relate mainly to fees and fines levied in accordance with legislation and include animal registrations and Health Act registrations.

Increases in statutory fees are made in accordance with legislative requirements.

Statutory fees are forecast to decrease by 30% compared to 2012/13. This is due to an anticipated decrease in planning fees as domestic flood repairs wind down. Additionally, income from fire clearance fines and clearance works are expected to reduce following an increased public awareness.

A detailed listing of statutory fees is included in Appendix E.

4.2.3 User fees ($0.01M increase)

User charges relate mainly to the recovery of service delivery costs through the charging of fees to users of Council’s services. These include, use of leisure, entertainment and other community facilities and the provision of human services such home help services. In setting the budget, the key principle for determining the level of user charges has been to ensure that increases do not exceed CPI increases or market levels.

User charges are projected to increase by 11.7% or $0.1M over 2012/13. The main area contributing to the increase is Garbage Charges where the annual charge for the provision of garbage services has increased from $240 to $255. This is in line with Council’s long term view that garbage services should be provided on a full cost recovery basis.

A detailed listing of fees and charges is included in Appendix E.

4.2.4 Contributions - cash ($0.37M increase)

Contributions relate to monies paid by outside parties that assist in offsetting these expenses for Council.

Contributions are projected to increase by $0.4M or 56.3% compared to 2012/13 due mainly to the increase in community contributions for capital projects.

4.2.5 Grants - operating ($1.7M decrease)

Operating grants include all monies received from State and Federal sources for the purposes of funding the delivery of Council’s services to ratepayers. Overall, the level of operating grants has decreased by 38% or $1.7M compared to 2012/13. The main factor contributing to reduced funding levels is the Victorian Grants Commission.

The reduction in Victorian Grants Commission (VGC) funding, results from the prepayment of 50% of the Victorian Grants Commission funds in June 2013.

4.2.6 Grants - capital ($21.0M increase)

Capital grants include all monies received from State, Federal and community sources for the purposes of funding the capital works program. Overall the level of capital grants has increased by 67.4% or $22.6M compared to 2012/13 due mainly to substantial flood grants being received in 2013/14 that will were originally expected in 2012/13.

It is important to note that the majority of these grant funds will be expended on projects in the 2013/14 financial year.

Section 6. “Analysis of Capital Budget” includes a more detailed analysis of the grants and contributions expected to be received during the 2013/14 year.

4.2.7 Net gain on sale of assets ($0.037M increase)

Net proceeds from the sale of Council assets are forecast to be $14k for 2013/14 and relate mainly to the planned cyclical replacement of part of the plant and vehicle fleet.

4.2.8 Other income ($0.1M decrease)

Other income relates to a range of items such as private works, cost recoups and other miscellaneous income items. It also includes interest revenue on investments and rate arrears.

Other income is forecast to increase by $0.04M compared to 2012/13.

Interest on investments is forecast to decrease by $0.04M compared to 2012/13. This is mainly due to a forecast decrease in Council’s available cash reserves during 2013/14 due to a major capital fund expenditure in 2013/14 expected to be in excess of $28.5 million. Interest on unpaid rates is forecast to remain reasonably static as the amount of rates debtors outstanding remains relatively constant from year to year.

4.3 Expenses

Source: Appendix A

4.3.1 Employee costs ($0.73M decrease)

Employee costs include all labour related expenditure such as wages and salaries and on-costs such as allowances, leave entitlements, employer superannuation, rostered days off, etc.

Employee costs are forecast to decrease by 7.5% or $0.73M compared to 2012/13. This decrease relates to three key factors:

· Increases following renegotiation of Council’s Enterprise Bargaining Agreement (EBA) are not due until 2014/15. There is no increase applicable in 2013/14 being the last year of the existing agreement.

· Decreases in staff numbers resulting largely from Council’s decision to amalgamate some positions and not to replace some positions that become vacant by natural attrition.

· The transfer of Kindergarten services to an outside provider during the 2012/13 year.

In summary, average staff numbers (based on monthly averages) during the budget period are as follows:

4.3.2 Materials and services ($0.46M increase)

Materials and services include the purchases of consumables, payments to contractors for the provision of services and utility costs. Materials and services are forecast to increase by $0.46 M in comparison to 2012/13.

4.3.3 Bad and doubtful debts ($0.006M decrease)

Bad and doubtful debts are projected to decrease by $6k as there was a significant write off of an uncollectable debt in 2014.

4.3.4 Depreciation and amortisation ($1.28M increase)

Depreciation is an accounting measure which attempts to allocate the value of an asset over its useful life for Council’s property, plant and equipment including infrastructure assets such as roads and drains. The increase of $1.28 million for 2013/14 is due mainly to the revaluation of roads and other infrastructure asset such as footpaths, cycleways, drains, bridges and culverts.

4.3.5 Finance costs ($0.028M increase)

Borrowing costs relate to interest charged by financial institutions on funds borrowed. The increase in borrowing costs results from the planned borrowing of $1.55 million in 2012/13 to cover a substantial amount of the Defined Benefits superannuation call previously received.

4.3.6 Other expenses ($0.1M decrease)

Other expenses relate to a range of unclassified items including contributions to community groups, advertising, insurances, motor vehicle registrations and other miscellaneous expenditure items. Other expenses are forecast to decrease marginally as costs continue to be constrained.

4.4 Expenditure by Service Function

5.0 Analysis of Budgeted Cash Position

This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2013/14 year. Budgeting cash flows for Council is a key factor in setting the level of rates and providing a guide to the level of capital expenditure that can be sustained with or without using existing cash reserves.

The analysis is based on three main categories of cash flows:

· Operating activities - Refers to the cash generated or used in the normal service delivery functions of Council. Cash remaining after paying for the provision of services to the community may be available for investment in capital works, or repayment of debt

· Investing activities - Refers to cash generated or used in the enhancement or creation of infrastructure and other assets. These activities also include the acquisition and sale of other assets such as vehicles, property and equipment

· Financing activities - Refers to cash generated or used in the financing of Council functions and include borrowings from financial institutions and advancing of repayable loans to other organisations. These activities also include repayment of the principal component of loan repayments for the year.

5.1 Budgeted cash flow statement

Source: Appendix A

5.1.1 Operating activities ($21.9M increase)

The increase in cash inflows from operating activities is due mainly to a $21.0M increase in capital grants to fund the C6 and C12 capital works program (flood repair). These funds were anticipated to be received in the previous financial year but were deferred until 2013/14. A $0.9M increase in rates and charges, which is in line with the rates and charges increases mentioned previously.

The net cash flows from operating activities does not equal the surplus (deficit) for the year as the expected revenues and expenses of the Council include non-cash items which have been excluded from the Cash Flow Statement. These include items such as depreciation.

5.1.2 investing activities ($24.6M increase)

The large increase in payments for investing activities represents the planned large increase in capital works expenditure disclosed in section 10 of this budget report.

5.1.3 Financing activities ($1.4M increase)

For 2013/14 the total of principal repayments is $0.565M and finance charges is $0.05M. Change also due to additional borrowings being budgeted in 2013/14 to pay out defined benefits superannuation call,

5.1.4 Cash and cash equivalents at end of the year ($2.0M decrease)

Overall, total cash and investments are forecast to decrease by $2.0M to ($0.01)M as at 30 June 2014. This is substantially due to the payment for the ongoing works associated with the C6 and C12 flood road works contracts.This is consistent with Council’s 10 Year Financial Plan (see Section 8), which forecasts a significant reduction in the capital works program from 2013/14 onwards to balance future cash budgets.

5.2 Restricted and unrestricted cash and investments

Cash and cash equivalents held by Council are restricted in part, and not fully available for Council’s operations. The budgeted cash flow statement above indicates that Council is estimating at 30 June 2013 it will have cash and investments of $5.3 million cash deficit.,

5.2.1 Statutory reserves ($00M)

These funds must be applied for specified statutory purposes in accordance with various legislative requirements. While these funds earn interest revenues for Council, the funds are not available for other purposes.During the 2013/14 Council had no funds in statutory Reserves.

5.2.2 Discretionary reserves ($0.0M)

These funds are available for whatever purpose Council decides is their best use. In this case Council has made decisions regarding the future use of these funds and unless there is a Council resolution these funds should be used for those earmarked purposes.

5.2.3 Unrestricted cash and investments ($0.0M)

These funds are free of all specific Council commitments and represent funds available to meet daily cash flow requirements, unexpected short term needs and any budget commitments which will be expended in the following year such as grants, contributions or carried forward capital works. Council is expected to be in an overdraft situation at 30 June 2013. As a result there are no funds available that can be restricted.

6.0 Analysis of Capital Budget

This section analyses the planned capital expenditurebudget for the 2013/14 year and the sources of funding for the capital budget.

6.1 Capital works

Source: Appendix A. A more detailed listing of the capital works program is included in Appendix C.

6.1.1 Carried forward works ($30.9M)

At the end of each financial year there are projects which are either incomplete or not commenced due to factors including planning issues, weather delays and extended consultation. For the 2012/13 year it is forecast that $30.9M of capital works will be incomplete and be carried forward into the 2013/14 year. The most significant projects are the road works associated with flood rectification. These works total $28.45M. Additionally, $1.5M will be spent on the Donald Family Services Centre. With further expenditure for completion of this project budgeted for the following year.

6.1.2 Roads ($1.2M)

Roads include local roads, car parks, footpaths, bike paths, bridges and culverts, declared main roads, traffic devices, street lighting and traffic signals.

For the 2013/14 year, $1.2M will be expended on road projects. The more significant projects include local road reconstruction. The federally funded Roads to Recovery projects have been completed for the current cycle thus reducing the amount spend on normal road works. However this is more than offset by the amount of works to be undertaken in the flood road rectification as discussed in the carried forward capital.

6.1.3 Drains ($1.8M)

Drains include drains in road reserves, retarding basins and waterways.

For the 2013/14 year, there will be no expenditure on drainage projects. Plans are currently being reviewed and major drainage works and potential flood mitigation works are being evaluated for capital expenditure in future years. These projects will only proceed if they are fully grant funded.

6.1.4 Fixtures, furniture and fittings ($0.0M)

Fixtures furniture and fittings are items incorporated into council buildings and the furniture contained therein. This also incorporates expenditure on communications and information technology both hardware and software.

For the 2013/14 year, $0.36M will be expended on these assets mainly to replace existing assets that have reached the end of their useful lives.

6.1.5 Land Buildings ($1.6M)

Land and buildings include community facilities, municipal offices, sports facilities and pavilions.

For the 2013/14 year, $1.44M will be expended on building projects. The more significant projects include Swimming pool facility upgrades ($0.47M) The Berriwillock Multi – Purpose Centre ($0.5M),Charlton Travellers Rest ($0.20M) and Charlton Skate Park ($0.15M).

6.1.6 Plant, equipment ($0.46.M)

Plant, equipment and other includes motor vehicles and plant.

For the 2013/14 year, $0.56M will be expended on plant, equipment and other projects. This includes $0.25M for the replacement of heavy plant and $0.1M for the replacement of light fleet.

6.1.7 Other ($0.1M)

For the 2013/14 year, $0.1M will be expended on other capital items. This includes $0.02M in upgrading Donald aerodrome power supply.

6.1.8 Asset renewal ($33.1M), new assets ($1.2M), and expansion/upgrade ($0.27M)

A distinction is made between expenditure on new assets, expenditure on asset renewal and expansion/upgrade. Expenditure on asset renewal is expenditure on an existing asset, which improves the service potential or the life of the asset. Expenditure on new assets does not have any element of expansion/upgrade of existing assets but will result in an additional burden for future operation, maintenance and capital renewal.

The major projects included in the above categories, which constitute expenditure on new assets, are the road works including flood rectification works $33.1 million and new asset of $1.2 million which relate to new assets such as the Berriwillock Multi Purpose Centre and the Donald Family Services Centre.

6.2 Funding sources

Source: Appendix A

6.2.1 Carried forward works ($30.9M)

At the end of each financial year there are projects which are either incomplete or not commenced due to factors including planning issues, weather delays and extended consultation. For the 2012/13 year it is forecast that $29.5M of capital works will be incomplete and be carried forward into the 2013/14 year. Significant funding includes grants for the flood recovery road rectification of $28.5 M and $1.0M for the Donald family services Centre.

6.2.2 Grants - Capital ($3.6M)

Capital grants and contributions include all monies received from State, Federal and community sources for the purposes of funding the capital works program.

Significant grants and contributions are budgeted to be received for Country Roads and Bridges ($1.00M) and Local Government Infrastructure program ($0.46M).

6.2.3 Proceeds from sale of assets ($0.002M)

Proceeds from sale of assets include motor vehicle sales in accordance with Council’s fleet renewal policy of $0.02M.

6.2.4 Operations ($0.0M)

Council has budgeted for an operating deficit. As a result, there are no funds available to fund capital works from this source.

6.2.5 Reserve cash and investments ($0.0M)

Council does not have has significant cash reserves and investments to fund capital works, The majority of works are funded from grant monies to be received in 2013/14.

6.2.6 Unrestricted cash and investments ($0.0M)

Council does not have any uncommitted cash and investments from which to fund capital works.

Buloke Shire Council Special Meeting Wednesday, 28 August 2013

5.1.3 Adoption of Budget for Municipal Year Ending 30 June 2014

Attachment 1 Budget 2013/14

9.0 Rating Information

9.1 Rating context

In developing the 10 year financial plan rates and charges were identified as the primary source of revenue for Council, accounting for 67.5% of the adjusted total revenue (after excluding capital grants) received by Council annually.

Maintaining a growth in revenue from rates and charges is therefore vitally important to Council’s future financial sustainability. However, it is also necessary to balance the importance of rate revenue as a funding source with community sensitivity to continuing increase, particularly as they relate to changes in property values and the potential this has to impact on some sections of the community more than others.

Benchmarking of rate levels in Buloke with other small rural Councils confirms that on both a rates per capita, and rates per assessment basis, are higher than the average for this group of Councils. However closer analysis against directly comparable small rural councils (councils with an economy based on broad acre agriculture) shows that rate levels in Buloke are less than the average for this smaller group for both of these measures. This is no justification for an increase in rates but it does identify that affordability, at least in comparable terms with other communities, is perhaps not as challenging as some would suggest. However, benchmarking of rates per assessment as a % of average weekly household income, against the same group of councils, does identify that rates constitute a higher % of expenditure in Buloke compared to other municipalities. What these benchmarking activities highlight is the continuing need for Council to balance its need for revenue against the capacity of the community to pay.

To ensure that deliberations about future rate increases are made on an informed basis benchmarking exercises will continue to be undertaken and a number of key indicators, including rates per assessment as a % of average weekly household income, considered as part of decision making activities.

9.2 Current year rate increase

As identified in other sections of this budget document Council’s 2013/14 operating position will be significantly impacted by increase in the cost of materials and services, wages growth and likely ongoing constraints in available government funding.

Revenue growth is essential to Council continuing to operate and continuing to provide the current range of services.

Modelling undertaken as part of the development of the 10 year financial plan suggest that successive rate increase in excess of 15% are required in order for Council to reach its strategic target of a breakeven operating position. This scenario has been rejected by Council in favour of smaller and more manageable increases in revenue over the next three years accompanied by a significant reduction in operating costs and reductions in capital expenditure.

As stated earlier it is Council intent to reach a break even position (based on the definition of surplus set as part of the rates policy statement0 by the end of the 2015/16 financial year. In the current context this is a ‘stretch target’ and will require significant discipline in decision making over the next three years to achieve.

9.3 Rating Structure

Based on the analysis and discussion that has taken place around current and future rating needs Council has adopted the following Rating Strategy for 2013/14:

1. The 2012 Revaluation will be used for rating purposes in 2012/13.

2. The basis of valuation will continue to be the Capital Improved Value (CIV).

3. An increase in revenue from rates and charges in 2013/14 of 6%. (Total rates and charges incorporate General Rates, Municipal Charge and Waste Service Charges.)

4. The Municipal Charge to be retained and applied to every rateable property in the Shire. However, a single farm enterprise which may be conducted on several properties can apply for an exemption which will mean that they will only be charged one Municipal Charge for that enterprise.

5. The amount of rate revenue collected through the Municipal Charge to increase to represent 7.5% of the total revenue raised through General Rates and Service Charges.

6. The Commercial/Industrial Rate to be set at 100% of the General Rate.

7. The Farm Rate to be set at 98% of the General Rate (A Farm rate differential of 2%).

8. The current kerbside waste and recyclable services will be retained and set at a level to recover 100% of the costs incurred by Council to provide the service and operate land fill and transfer stations across the Shire, including Government levies.

9. The charge for a waste and recyclable service will apply equally to all occupied residential properties where the service is rendered, or is available, whether or not the service is used.

10. A pensioner concession for eligible concession card holders will provide a 50% discount off Council rates up to the maximum amount set by the Victorian Government.

11. The council will allow rates and charges to be paid either in full, by instalments, or by direct debit in nine equal monthly payments commencing in August 2013 and concluding in May 2014. The date for instalments and payment in full will be on the dates fixed by the Minister for Local Government by notice published in the Government Gazette.

9.4 Impact Assessment.

The table below shows the impact of these recommendations on rate bills. The figures are estimates based on current valuations and assumes no movement in assessment numbers between rate categories

. A more detailed analysis of the rates to be raised is contained in Appendix B ‘Statutory Disclosures

’

	2012/13		2013/14		% Increase – Total Rates Bill (2012/13 – 2013/14)
	Amount (Ave. Per Ass. for each rate type)	Total Ave. Rates Bill/Ass.	Amount (Ave. Per Ass. for each rate type)	Total Ave. Rates Bill Per Ass.
General rate (Residential)	$712.95	$1,052.95	$757.52	$1,124.12	+6.76%
General Rate (Commercial/Industrial)	$1,126.18	$1,226.18	$1,164.62	$1,291.37	+5.32%
Farm Rate	$2,092.83	$2,192.83	$2163.35	$2,290.10	+4.43%
Municipal Charge	$100.00		$126.75		+127%
Service Charge	$240.00		$240.00		0%
Total Raised by Rates and Charges	$9,888,438		$10,481,744		+5.99%.

Council has adopted a Rating Strategy that contains expanded information on Council's rating structure and the reasons behind its choices in applying the rating mechanisms it has used.

9.5 Beyond 2013/14

Beyond 2013/14 Council will need to re-consider the proposals discussed above and consider any other changes of circumstance that may occur.

Long term options to be investigated in the next 10 years include:

· The potential to maintain a differential for farm rates

· Re-evaluate the need for commercial and industrial rate differentials

· Analyse each of the rate differentials to determine:

· Ability to pay

· Equity

· Impact of any potential changes

The Council, in consultation with the community, test these principles to guide the direction and actions pertaining to future revenue-raising (discussing the various approaches and methods in the application of differential rates, subsidies or deferrals where possible.

· Develop a communication and marketing plan to better explain Council’s rating objectives:

Design inclusive consultation and information gathering approaches with the community to ensure community needs and concerns are canvassed.

9.6 Rates Administration

9.6.1 Rate payment dates

Rates are a charge on the property and the Council will allow them to be paid in one of the following ways:

• BY LUMP SUM WITH A DISCOUNT FOR EARLY PAYMENT

Lump sum payments in full made on or before 28 September 2013 which will entitle ratepayers to receive a discount of 1.5% on the total rates and charges raised for the 2013/14 rating year; or

• BY LUMP SUM WITH NO DISCOUNT

Lump sum payments (excludes discounted early payments) made on or before 15 February 2014 (i.e. the date fixed by the Minister by notice published in the Government Gazette); or

• BY FOUR INSTALMENTS

Payments must be made on or before the following dates fixed by the Minister by notice published in the Government Gazette:

1st Instalment – due by 30 September 2013

2nd Instalment – due by 30 November 2013

3rd Instalment – due by 28 February 2014

4th Instalment – due by 31 May 2014

To be eligible to pay by four instalments, the amount of the first instalment must be paid by 30 September 2013. Payments made after that date will not be eligible for the instalment plan and will be treated as a part payment only, with the balance to be paid in full by 15 February 2014. The first instalment is an amount as near as possible to 1/4 of the current rates and charges plus any arrears carried over from previous rating years; or

· BY NINE INSTALMENTS

Payments must be by direct debit and paid by the 28th day of the months of September 2013, October 2013, November 2013, December 2013, January 2014, February 2014, March 2014, April 2014 and May 2014. The first instalment is an amount as near as possible to 1/9 of the current rates and charges plus any arrears carried over from previous rating years.

9.6.2 Payment difficulties

Ratepayers who are experiencing difficulties in paying their rates should contact Council’s Rates Officer to discuss an alternative payment arrangement.

All such enquiries are treated confidentially and will help prevent costly legal action for recovery of overdue rates from commencing.

Interest will still be charged on overdue rates and charges not paid by their respective due dates.

9.6.3 Interest on late payments

In accordance with s172 of the Act Council will charge interest on late payments which have not been paid by the required lump sum payment date or instalment dates.

The penalty interest for 2013/14 will be calculated at the interest rate fixed by the

Attorney General on 1 July 2013.

In the case of ratepayers who choose to make a lump sum annual payment and fail to clear their account in full on or before the due date of 15 February 2014, interest will be calculated on the balance remaining after the due date until the account is paid in full.

Under the legislation, interest in this instance is charged from the date that the first instalment falls due until the account is cleared. This means that ratepayers who choose to pay in full and do not pay will be charged interest at the prescribed rate from 28 September 2013.until the day on which they are paid.

In the case of ratepayers who choose to make payments by four instalments or by nine instalments and fail to clear their instalment accounts on or before the relevant due dates, interest will be calculated on the balance remaining after the due date until the account is paid in full. Under the Act, interest is charged from the date that the instalment was due until the account is cleared.

9.6.4 Pensioner rate concessions

A pensioner concession for eligible concession card holders will provide a 50% discount off council rates up to the maximum amount set by the Victorian Government.

For 2012/13 the maximum amount was $193.40.

The Department of Human Services (DHS) has not yet advised the maximum cap for 2013/14.

To be eligible for a pensioner concession, pensioners must hold at least one of the following concession cards:

• Pensioner Concession Card

• Gold Card issued by the Department of Veteran Affairs (DVA)

• DVA Gold War Widow (WW)

• DVA Gold Totally/Permanently Incapacitated Veteran (TPI)

The concession is only available for a pensioner’s principal place of residence which is

listed on their concession card. Health Care cardholders are not eligible to a concession on Council rates and charges.

9.7 General revaluation of properties

The Council is required to revalue all properties within the municipality every two years.

A revaluation of all properties was completed at 1 July 2012 for use in both the 2012/13 and 2013/14 rating years.

A revaluation is conducted by qualified valuers and updates the rating valuation of all properties in the municipality to a more current level of value date, in order that rates levied are more closely based on prevailing market conditions. Therefore undertaking a general revaluation on a regular basis is fundamental requirement for the maintenance of rating equity.

All properties in the municipality – and across Victoria – have been valued as at the common date of 1 January 2012 in the recent revaluation.

9.8 Fire Services Property Levy

The Victorian Fire Services Property Levy will be included on Buloke rate notices in 2013/14.

It is a State Government requirement for all municipalities in Victoria to collect the levy that will be used to fund our important and essential fire services.

The new rules are in line with the findings of the 2009 Bushfire Royal Commission, which recommended that the previous insurance based fire services levy be replaced with a property-based levy.

This means that all property owners must contribute to the fire services funding, not just those with insurance.

The levy is made up of two components, a fixed charge component, plus a levy rate calculated against the Capital Improved value of the property.

In 2013/14, the fixed charge component will be $100 for residential properties and vacant land and $200 for commercial, industrial, primary production (farms), public benefit and vacant land.

The levy rate, in addition to the fixed charge, will be set by the State Government annually by May 31, having regard to the annual funding requirements for both the MFB and CFA>

Eligible pensioners will receive a $50 concession on the levy.

The levy charge will be included as a separate line item on rate notices when they are sent out later this year.

Sample Fire Service levy amounts for the 2013/14 year – CFA District

FSL Category	Average Capital Improved Value (CIV)	Amount calculated against CIV	Fixed Charge	Total Due
Residential	$200,000	$23.00	$100	$123.00
Commercial	$200,000	$218.40	$200	$418.40
Industrial	$200,000	$341.80	$200	$541.80
Primary Production (Farm)	$350,000	$109.20	$200	$309.20

10.0 Other Strategies

10.1 Borrowings

In developing the 10 Year Financial Plan no borrowings have been projected beyond those required to reduce Council’s liability for the 2012 defined benefits superannuation call.

A loan of $1.55M has been budgeted for 2013/14 to pay out the remaining amount of the liability. The liability was reduced by $0.749M in 2012/13.

The current loan will be totally repaid by the end of 2015/16.

10.2 Infrastructure

The Council has developed an Infrastructure Strategy based on information derived from the Council Plan, Community Plans and various Asset Management Plans.

The purpose of the Strategy is to quantify the capital expenditure requirements of Council for the next 10 years by class of asset, and is a key input to the 10 year financial plan.

The strategy predicts infrastructure consumption, renewal needs and infrastructure needs to meet future community expectations.

The Strategy has been developed through a process of internal consultation and evaluation.

A key objective of the Infrastructure Strategy is to quantify the level of funds required to maintain and/or renew Council’s existing assets at desired condition levels.

If sufficient funds are not allocated to asset renewal requirements then Council’s investment value in those assets will reduce, along with the capacity to deliver services to the community.

The Strategy identifies that the funds required to meet infrastructure renewal are currently greater than the funds available for the purpose.

This is not a situation unique to Buloke. Many small rural municipalities with extensive local road networks and a large number of predominantly ageing halls, swimming pools and other community assets face similar challenges.

The following influences are seen to be factors leading to this situation:

· Reduction in the amount of cash and investment reserves to fund future capital expenditure programs

· A lack of certainty around continuing Federal and State government funding for upgrade of roads

· The impact of new transport and agricultural technology on roads and road related infrastructure (heavier axle weights, longer vehicles and wider vehicles)

· Changes to building and other regulations that require continuing investment in ageing infrastructure to meet contemporary standards (essential services, accessibility, food safety, early childhood education, child care, etc.)

· Continued community demand for new facilities even when existing facilities are already available

· Community expectations that ‘historic’ building and facilities are maintained even when new facilities are constructed

· Community expectations arising from the impacts of climate change and changing weather patterns (drought, floods, higher summer temperatures)

The following table summarises Council's forward outlook on capital expenditure including funding sources for the next 4 years.

10.3 Service delivery

A stated earlier, a key objective of the 10 year financial plan is for Council to achieve a sustainable annual surplus. Development of the plan has highlighted that this is unlikely to occur without either a significant and sustained increase in revenue from Council’s own sources (rates and charges) and/or a reduction in outgoings (employee costs and the cost of materials and services).

A reduction in outgoings (employee costs and the cost of materials and services) will only be achieved through improvements to productivity, efficiency and effectiveness of service delivery. If these cannot be delivered than Council will have no alternative but to look to reductions in service levels.

Any decisions to reduce service levels will need to be considered within the context of the availability of alternative funding, opportunities that arise and the challenges that any such decision would create.

The 10 year financial plan developed by Council to assist with the development of the 2013/14 budget has taken a ‘neutral’ position on service delivery reductions, not because Council lacks the courage or capacity to address the situation, but because it believes more information and analysis is required before decisions are made. Council is also interested to hear from the community on this matter.

Listed below are some of the general influences Council has identified as relevant to the 2013/14 Budget and likely to impact on future service delivery decisions:

Waste Management

The cost for the collection, processing and disposal or re-processing of all types of waste and recyclables is expected to increase significantly in future years.

Specific considerations include:

· Consumption of airspace at existing land fill sites (Once the current sites are full Works Approvals for new sites are unlikely leading to the development of local Transfer Stations and waste being transported from the Shire to regional waste facilities)

· Increases in tipping fees (levies) for inert waste (The State Government has increased the levy payable upon disposal of waste at landfill by almost 400% over the last two years. Fees are projected to rise a further $4.40 per tonne (10%) in 2013/14 and by a similar amount (10%) in 2014/15.)

· Community expectations for the management of recyclables and green waste (Current volumes of recyclables and green waste are not sufficient to justify local sorting and processing operations but the community will still expect these items to be removed from the general waste stream)

· Increased regulation of the operations of unlicensed land fill sites requiring further capital investment to allow continued operation (All of Council’s current land fill sites are unlicensed. This does not mean that they are unregulated, simply not subject to the same level of regulation that applies to regional and commercial land fill sites.)

· Transport costs. (Transport costs are expected to continue to rise in future years. The long distances travelled in Buloke for waste and recycling collection will lead to substantial price increases.)

· Preliminary estimates are that the cost of waste management in Buloke is likely to increase by between $0.03M and $0.05M per annum for the next four to five years and by more than these figures for the same period after that.

It is proposed Council continue its current Budget policy to fully recover waste charges through the annual Waste Charge.

Aged and Disability Services

Buloke’s population is ageing at a rate faster than the State average. At the same time, life expectancy is increasing and medical technology is offering new opportunities for healthy life styles at much older years.

Federal and State Government policy is to support “Ageing in Place” which places a greater emphasis on the availability of local (neighbourhood and town based) services. The Federal Government has also recently announced the introduction of a new National Disability Insurance Scheme which is likely to have a similar focus on the availability of local services.

These factors will place additional pressures on Council’s aged and disability services.

These services are already subsidised from rate revenue and it is likely that this will continue to be the case into the future. The challenge for Council will be to ensure the level of subsidy for these services reduces rather than increases.

The 10 year plan provides for a continuing small annual increase in Government support for these services but restricts Council’s contribution to current levels.

Cost shifting, principally as a result of employee costs in the local government sector rising at rates higher than projected through Commonwealth State Service Arrangements has been a factor affecting Council’s financial contribution to this service.
A comprehensive review of service cost structures will be undertaken in 2013/14 to ensure Council’s financial contribution returns to the levels set in the relevant Service Agreement. This may result in the service operating a ‘waiting list’ to ensure costs are contained.

Animal Control

State legislation relating to Domestic Animal management has changed dramatically in recent years in response to community demands to increase the emphasis on responsible pet ownership and to impose stricter controls on the ownership and management of a number of breeds of dog.

The consequence of these changes has been to significantly increase workload for Local Government through changes to pet registration requirements, investigation of animal related complaints and enforcement action. The State Government has also significantly increased fines for non-compliance with the legislation which also adds to the complexity of the situation facing local government.

These trends are projected to continue in the foreseeable future and for the cost of administering and enforcing the relevant legislation to continue to increase. This increase will need to be funded from revenue and achieved through the application of savings from other areas of the organisation.

Emergency Management

While fire undoubtedly remains the principal threat to the Buloke community recent events have shown that floods and severe storms can cause just as much, if not more, damage, and have the same level of devastation on the lives of individuals, families and businesses.

Emergency management planning and recovery has always been an important function of local government but since the 2009 Bushfire Royal Commission and the State wide floods of 2010 and 2011 the resources required to meet an increasingly complex array of planning and recovery requirements has increased significantly. With climate change identified as a probable likely cause of changes in weather patterns and more extremes predicted this function of Council’s operations will become more demanding in the future.

The 10 Year Financial Plan projects the need for an increase in resources in this area of Council activity. This increase will need to be funded from revenue and achieved through the application of savings from other areas of the organisation.

Community Facilities

Council is directly responsible for the provision of a wide range of general purpose and specific purpose facilities across the whole of the Shire. These facilities include swimming pools, playgrounds, recreation reserves, caravan parks, public halls, pre-schools, maternal and child health centres, public toilets, parklands, museums and many more. Use of these facilities varies across the Shire. Some towns and localities have one such facility, many have multiple facilities, some performing similar functions. A majority of these facilities are thirty or more years old with some being up to eighty years old or more. The condition of the facilities varies dramatically, from new to ‘run down’. What they all do have in common is strong community attachments.

One of the decisions facing Council into the future is how many of these facilities can it continue to support, and at what cost?

The answer to this question is obviously not simple but it never-the-less is a question that must be asked, and in the context of Council’s forward financial planning increasingly more often.

The answer may be easier to arrive at where there is more than one facility in a locality or township performing the same function, but it will still be difficult. As indicated above, there are strong community attachments to all of these facilities and any decision to close down a facility and either sell it or demolish it will be difficult. They are however situations that will need to be examined and a solution arrived at.

The 10 Year Financial Plan does not include any specific proposals to close down community facilities but this will need to be considered but this is a matter that will need to be discussed, debated with the community.

Statutory Planning, Building Control and Environmental Health

Despite announcements by Federal and State governments as to the need for ‘red tape’ in these areas of regulatory compliance to be reduced the work load at a local government level has increased. The increase in work load has been driven by legislative and regulatory change but also by community expectations.

As discussed earlier in the context of animal control, community expectation as to the protection of their personal, civil and community rights has increased. There is an increased expectation that any change to a neighbourhood environment, or to an adjoining property should be subject to consultation and explanation. There is an increased expectation that all buildings and businesses will be compliant with contemporary safety, accessibility and health standards and that local government will enforce these. All add to workload and to the need to maintain technically qualified and competent technical staff in these areas.

The 10 Year Financial Plan includes resource commitments to maintain these services and to ensure that community expectations are met. The level of resources is projected to decrease by 0.6EFT from 2014/15 once current strategic planning requirements have been met.

Roads

More than $36M will be spent on roads in the Shire in 2013/14. $28.4M of this will be on the repair of roads and road related infrastructure damaged by the 2011 flood events and $1.9M on capital upgrades. The remaining monies will be spent on maintenance activities.

As indicated earlier, and excluding the monies specifically related to flood repair works, the amount being spent by Council on roads is not keeping up with the level of deterioration of the road assets. As also indicated earlier, this gap is likely to increase in future years without a significant increase in support for road upgrade projects from other levels of government.

The 10 Year Financial Plan does not include any projected increase in road funding. The plan does project a continuation of current expenditure levels for maintenance and capital maintenance (based on assumptions regarding the continuation of Federal roads funding). It is expected that further State funding will be made available following the 2014 elections but this has not been included as the likely quantum of any such funding is not known.

One of the actions Council will be taking during the course of the 2013/14 financial year will be a review of road maintenance standards and a review of its road hierarchy. The outcome of these two reviews will form the basis for a comprehensive review of future road maintenance funding and of the maintenance techniques to be used. These decisions will inform the 2014/15 budget and be used to reshape the 10 year financial plan if required.

Decisions on roads will also be impacted by a new national approach to heavy vehicle road management. The new authority will regulate the use of National, State and local roads by heavy mass vehicles (B-doubles, B-triples and road trains). The authority will liaise with local government on the suitability of local roads for use by these types of road transport vehicles.

Recurrent expenditure on roads is projected to reduce from 2014/15 following completion of the flood repair works. The reduction will be a direct legacy of the $34M spent on flood repairs with the majority of the roads repaired not requiring intensive maintenance for at least the next decade. The areas where cost reduction will be made have yet to be determined and will be resolved during the course of 2013/14.

11.0 Review of Mayor and Councillor Allowances

Council has a legislative requirement under section 74 of the Local Government Act (the Act) to review and determine the level of the Councillor allowance and the Mayoral allowance within a period of six months after a general election or by next 30 June, whichever is later.

The review process includes a section 223 public consultation before the allowances can be set for the next four years.

Mayoral and Councillor allowances ranges and limits within the allocated categories are determined by an Order in Council (Minister for Local Government (the Minister)).

Once set, the allowance cannot be revised again unless the Minister undertakes a review of the categories of Councils.

Allowances are subject to automatic annual adjustment that is announced in the Victorian Government Gazette by the Minister for Local Government.

Councils are designated either a category 1, 2 or 3. The categories are derived by Local Government Victoria from a formula based on an individual Council’s population and annual revenue.

Buloke is a Category 1 Council and allowances paid currently are set at the uppermost allowance limit within the range for this category.

The 2012 review of allowances resulted in a 2.5% increase.

Category ranges as at 27 October 2012 with the 2.5% adjustment are as follows:

· Category One – $7,542 to $17,969 (Councillors) and $53,684 (Mayor) per annum

· Category Two - $9,317 to $22,405 (Councillors) and $69,325 (Mayor) per annum

· Category Three – $11,204 to $26,843 (Councillors) and $85,741 (Mayor) per annum

Mayoral and Councillor allowances are subject to the addition of the equivalent of the superannuation guarantee (currently 9.25%) and it is each Councillor’s own choice whether to put the 9.25% (or any additional sum) into superannuation or not.

Details of the current level of allowances paid to Councillors (Category 1)	Range	Current level paid	Allowance plus 9.25%
Councillors	$7,542 to $17,969	$16,232	$17,733
Mayor	Up to $53,684	$48,696	$53,200

Council is required to review the current allowances and then seek public comment.

Following consideration of public submissions, Council can then determine the allowance level which will stand for the next four years.

Council may resolve to retain allowances at the current level or a lesser amount.

ELIGIBLE LOCAL GOVERNING BODY

Councillors receive allowances over the year.

The payments are to compensate Councillors for the duties performed as an elected local government Councillor

A 2005 Taxation Determination provided that a person who holds office as Councillor is not an ‘employee’ of the Council. As a result income tax is not deducted from Councillor allowances.

There is an option for a Council to determine to be an ‘Eligible Local Governing Body’(ELGB). This needs to be determined by a unanimous resolution of Council.

If Council does not make a unanimous resolution to become an ELGB the status quo remains, that is, Councillors will not be deemed to be employees. Tax is not be deducted from the Allowance and an additional contribution of 9% will be made in lieu of superannuation.

Allowances are considered assessable income for income tax purposes and subject to substantiation provisions.

As an ELGB, Councillors are deemed employees for superannuation purposes. The impact will vary from Councillor to Councillor depending on their particular circumstances. Superannuation contributions will be made, as of right, and allowances will be pre-taxed.

Claims for taxation purposes are subject similar substantiation provisions as above.

Buloke has not traditionally moved to the ELGB option.

COUNCILLOR CONFLICT OF INTEREST

Section 79C of the Act states that there are certain situations where a Councillor is taken to not have a conflict of interest.

“Section 79C(1) A Councillor is taken to not have a conflict of interest for the purposes of this Division if the matter only relates to –

(c) a decision in relation to the payment of allowances to the Mayor or Councillors under section 74 or 74C(2)”

Therefore Councillors are not required to declare a conflict of interest when considering and/or setting Councillor and Mayoral allowances.

Council is required to give notice of its intention to set the Councillor and Mayoral Allowance. Any person has a right to make a submission in respect of the intended levels. For the purposes of the public consultation process, this report proposes the retention of the Councillor and Mayoral allowances at the current level and to commence section 223 provisions with respect to the review of allowances.

Public notice will be given of the review providing for a minimum 28 day submission period.

At the conclusion of the submission period a further report will be presented to Council for final determination.

Appendices

The following appendices include voluntary and statutory disclosures of information which provide support for the analysis contained in sections 1 to 10 of this report.

This information has not been included in the main body of the budget report in the interests of clarity and conciseness. Council has decided that while the budget report needs to focus on the important elements of the budget and provide appropriate analysis, the detail upon which the annual budget is based should be provided in the interests of open and transparent local government.

The contents of the appendices are summarised below:

Appendix	Nature of information	Page
A	Budgeted Standard Statements	79
B	Statutory disclosures	86
C	Capital works program	96
D	Fees and charges schedule	TBA

Buloke Shire Council Special Meeting Wednesday, 28 August 2013

5.1.3 Adoption of Budget for Municipal Year Ending 30 June 2014

Attachment 1 Budget 2013/14

Appendix D - Fees and charges schedule

This appendix presents the fees and charges of a statutory and non-statutory nature which will be charged in respect to various goods and services provided during the 2013/14 year.

VENUE HIRE - PUBLIC HALLS

*(Casual hire)*	*Main Hall (max. 6 hours)*	*Supper Room (max. 6 hours)*	*Cost p/h (over max. hours)*	*Kitchen*	*All day booking* *(24 hours, full use of venue)*	*Bond*
Birchip (max. 250 people)	$200.00	$50.00	$35.00	$30.00	$350.00	$300.00
Charlton (max. 300 people)	$200.00	$50.00	$35.00	$30.00	$350.00	$300.00
Donald (max. 250 people)	$200.00	$50.00	$35.00	$30.00	$350.00	$300.00
Wycheproof (max. 250 people)	$200.00	$125.00	$35.00	$30.00	$350.00	$350.00*

A Bond is required for all bookings where alcohol is served. The Bond is refundable if there is no damage or requirement for additional cleaning.

*Inspections will be carried out by Buloke Shire Council’s Hall Attendant.

Casual Hire is defined as: Any group, individual or organisation that hires the facility once off or on an irregular basis.

SENIOR CITIZENS

Clubrooms

Charlton

Donald

Wycheproof

Max. 6 hours

$85.00

$100.00

$50.00

Cost per hour over max.

$20.00

Regular Hire

Private or Commercial

$30.00

Community Organisations/Groups

$20.00

Regular Hire is defined as: Any group, individual or organisation that hires the facility on an ongoing basis. To be considered a Regular User, one of the following criteria must be met;

· Weekly hire - minimum of 10 consecutive weeks,

· Fortnightly hire - minimum of 10 consecutive fortnights,

· Monthly hire - minimum of 10 consecutive months

Commercial hirers are defined as those who undertake activities for the purpose of generating a profit.

Non-commercial hirers:

Community groups: Groups who meet for the purpose of providing a service for the community’s benefit. Such groups will only be recognised through a statement of incorporation, or sponsorship through an auspice body.

Private/Individual hirers: Those who undertake activities for the purpose of private events and activities.

Negotiation of Fees: Requests for reducing or waiving of fees must be made in writing to the Chief Executive Officer. Decision is at the discretion of the Chief Executive Officer.

Waived fees will be registered as a donation from Council and listed in the Annual Report.

WYCHEPROOF SALEYARDS

*Saleyard Fees*	*2012/2013*	*2013/2014*
Yard Fees	0.6% of gross sales turnover	0.6% of gross sales turnover
Agent’s Fees	12% of yard fees	12% of yard fees
Truck Wash
Key Deposit (Avdata) refunded on return of keys	$24.00	$24.00
Water Usage	$0.60 per minute	$0.80 per minute

COMMUNITY BUS HIRE

Bus Fees

2012/2013

2013/2014

Hire rate per day or part thereof

$14.00

Plus 90 cents per kilometre travelled

$0.90

STAND PIPES

Stand Pipes

2012/2013

2013/2014

$2.323 per 1,000 litres

$$5.00 per 1,000 litres or part there of

PHOTOCOPYING

Service no longer provided due to commercial and community alternatives being available in each of the five principal towns in the Shire.

ANIMAL CONTROL

Dog and Cat Registration Fees **Since May 2007 Council can only register animals that have been micro chipped*	*2012/2013*	*2013/2014*
Dog or Cat (Not Micro chipped or Desexed – only relevant to animals registered prior to May 2007)	$60.00	$60.00
Dogs (Micro chipped plus one or more of the following – desexed, not desexed, working or farm dog, over 10 years old or VCA members)	$20.00	$20.00
Cats (Micro chipped plus one or more of the following – desexed, not desexed, over 10 years old or Feline Association member)	$20.00	$20.00
Pensioner Concession (Half price for all dog and cat registration categories)	$10.00	$10.00
Guide dogs, racing dogs (greyhounds), police dogs	No Charge
Replacement lifetime tag/s	No Charge
Registered animals moving to Buloke	No Charge

IMPOUNDED LIVESTOCK

*Release Fees*	*2012/2013*	*2013/2014*
Sheep up to 5 head	$30.00	$30.00
Sheep per head over 5	$5.00	$5.00
Goats and pigs up to 2 head	$30.00	$30.00
Goats and pigs per head over 2	$10.00	$10.00
Cattle up to 3 head	$100.00	$100.00
Cattle per head over 3	$50.00	$50.00
Horses per head	$100.00	$100.00
*Sustenance – per day – per head*	*2012/2013*	*2013/2014*
Sheep	$5.00	$5.00
Goats and Pigs	$10.00	$10.00
Cattle and Horses	$10.00	$10.00
*Dogs and Cats (includes sustenance) – per dog and cat*	*2012/2013*	*2013/2014*
1 to 4 days	$55.00	$55.00
For every day in excess of 4 days (maximum 8 days)	$11.00	$11.00
*Impounded Vehicles and Caravans – per vehicle*	*2012/2013*	*2013/2014*
Release fee (plus towing fee incurred)	$153.00	$153.00

SUNDRY DEBTORS

*Hire of Council equipment and operator where local service alternatives are not available, including compulsory fire clearances.*	*2012/2013*	*2013/2014*
Plant	150% of internal plant hire rate	150% of internal plant hire rate
Operator (Labour)	$50.00 per hour plus plant fee – as above	$50.00 per hour plus plant fee – as above
Sandstone/Gravel from Council quarry	$10.00 per cubic metre	$10.00 per cubic metre
Quarry products from non-Council quarry sources	Cost to Council plus plant and operator costs – as above.	Cost to Council plus plant and operator costs – as above.

WASTE CHARGES

*Waste*	*2012/2013*	*2013/2014*
Municipal Waste Collection and Disposal Charge (One 120L bin for putrescibles waste (collected weekly) and one 240L bin for recyclables (collected fortnightly). Service is compulsory for all residential properties and available to commercial and farm properties on request.	$240.00	$255.00
Optional additional 240L bin for recycling	$70.00 per bin	$75.00 per bin
*Landfill*	*2012/2013*	*2013/2014*
Up to 3 cubic metres of sorted recyclables, uncontaminated green waste, commercial cardboard. For larger volumes please contact Council to receive a quote.	Free for local residents and businesses only	Free for local residents and businesses only
Car boot per load	N/A	N/A
6 x 4 Trailer Load/Ute Load up to 1 cubic metre	$15.00	$17.00
Tandem Trailer up to 2 cubic metres	$30.00	$34.00
Wheelie bin 120L	$5.00	$5.00
Wheelie bin 240L	$5.00	$5.00
General Waste to Landfill per cubic metre	$15.00	$17.00
Commercial Waste	$15.00 per cubic m	$17.00 per cubic m
Builder Waste and Concrete	$15.00 per cubic m	$17.00 per cubic m
Concrete uncontaminated	$15.00 per cubic m	$17.00 per cubic m
Bricks uncontaminated	$15.00 per cubic m	$17.00 per cubic m
White Goods (doors must be removed from refrigerators, ovens and dishwashers)	Free to local residents only	Free to local residents only
Car Bodies	Free to local residents only	Free to local residents only
TV Screens and Computer Monitors	$5.00	$10.00
Mattresses	$25.00	$25.00
*Tyres*	*2012/2013*	*2013/2014*
Light car tyre	$5.00	$5.00
Car tyre on rim	$20.00	$20.00
4WD and Light Truck tyre	$10.00	$10.00
Truck tyre	$25.00	$25.00
Super single tyre	N/A	N/A
Truck tyre on rim	$40.00	$40.00
Small tractor tyres	$80.00	$80.00
Large tractor tyres	$140.00	$140.00
*Animal Carcasses*	*2012/2013*	*2013/2014*
Poultry (including turkeys) per bird	$5.00	$5.00
Cats and Dogs	$5.00	$5.00
Sheep, Pigs and Goats	$10.00	$10.00
Horses and Cattle	$20.00	$20.00

SWIMMING POOL FEES

*Season Membership*	*2012/2013*	*2013/2014*
Family	No charge	No charge
Adult	No charge	No charge
Child	No charge	No charge
Monthly Memberships	No charge	No charge
Family	No charge	No charge
Adult	No charge	No charge
Child	No charge	No charge
Daily Tariffs	No charge	No charge
Adult	No charge	No charge
Children 3 & Over	No charge	No charge
Children under 3	No charge	No charge
Non-Swimmers	No charge	No charge
Student Concessions	No charge	No charge
Students involved in School swimming programs that do not have a membership. (Season extends from November to March.)	No charge	No charge

BUILDING FEES AND CHARGES

*Dwellings*	*2013/2014*
Building Works - $0 to $2,500	$450.00
Building Works - $2,501 to $5,000	$450.00
Building Works - $5,000 to $10,000	$450.00
Building Works - $10,001 to $20,000	$450.00
Building Works - $20,001 to $80,000	$650.00 plus Levy
Building Works - $80,001 to $120,000	$950.00 plus Levy
Building Works - $120,001 to $200,000	$value /75 plus Levy
Building Works - $200,000 plus	$value /75 plus Levy
*Alterations/Additions/Sheds/Carports/Garages*	*2013/2014*
New Dwellings - $0 to $120,000	$1,200.00 plus Levy
New Dwellings - $120,000 to $200,000	$1,500.00 plus Levy
New Dwellings - $200,000 to $312,000	$1,800.00 plus Levy
New Dwellings - $312,000 plus	$value /130 plus Levy

Swimming Pools

2013/2014

Swimming Pool and Fence – Above Ground

$400.00

Swimming Pool and Fence – In-Ground Pool

$800.00

Notes:

® A $34.00 Lodgement Fee applies to all application for works valued at $5,000 or more.

® 2012/2013 Fee proposals have been based on fee structure of surrounding Councils.

® No fee details’ comment indicates that fees for these services were previously set at the discretion of the Building Surveyor.

® Legislative Fees to be set as part of the State Budget and are forecast to rise by 12.5%.

*Commercial Building Work*	*2013/2014*
Commercial Works - $0 to $10,000	$350.00 plus Levy
Commercial Works - $10,001 to $20,000	$650.00 plus Levy
Commercial Works - $20,001 to $100,000	$value x 1.33% plus $400 plus Levy
Commercial Works - $100,001 to $500,000	$value x 0.44&% plus $1,200 plus Levy
Commercial Works - $500,000+	$value x 0.25% plus $2,000 plus Levy
*Multi-Unit Development*	*2013/2014*
Units - $0 to $200,000	$1,800.00 plus Levy
Units - $200,001 to $312,000	$2,000.00 plus Levy
Units - $312,000+	$value/130 plus Levy
*Enforcement*	*2013/2014*
Building Notices/Orders (To allow buildings to remain as constructed, without a Building Permit)	Building Permit Fee plus 25%
*Miscellaneous Items*	*2013/2014*
Fence	$200.00
Demolitions or Removals - $0 to $5,000	$350.00
Demolitions or Removals - $5,000+	$500.00
Re-Erections of Dwellings – Security Deposit	$5,000.00
Extensions of Time Requests	$100.00
Amended Plans	$100.00
Information Request Reg. 326 (1) Permit Info, Final Certifications, Current Orders or Notices	Legislative fee
Information Request Reg. 326 (2) Flooding, Termite, Bushfire, Snowfall, Designated	Legislative fee
Information Request Reg. 326 (3) Mandatory notification states, Inspection Dates	Legislative fee
Request for search of Building Permit Plans	$60.00

*Report and Consent*	*2013/2014*
Planning Authority for Demolition Section 29A of the Act	Legislative fee
Build Over Council Easement Reg. 310 (1)	Legislative fee
Report & Consent under Parts 4, 5 or 8	Legislative fee
Request Legal Point of Discharge for Stormwater Reg. 610 (2)	Legislative fee
*External Inspection (i.e. Private Building Surveyors)*	*2013/2014*
Additional Inspection	$120.00
Contract Inspection – Foundations, Reinforcement and Finals	$180.00
Contract Inspection – Frame	$200.00
Occupancy Permit/Places of Public Entertainment	$200.00
Travel Time and Vehicle Costs – (where more than 5km from Donald Office)	$1.00 per km plus $75.00 per hour
*Government Levy (only applies if development value over $10,000)*	*2013/2014*
Additional Inspection	$120.00

Notes:

® A $34.00 Lodgement Fee applies to all application for works valued at $5,000 or more.

® 2013/2014 Fee proposals have been based on fee structure of surrounding Councils.

® No fee details’ comment indicates that fees for these services were previously set at the discretion of the Building Surveyor.

® Legislative Fees to be set as part of the State Budget and are forecast to rise by 12.5%.

ENVIRONMENTAL HEALTH

*Food Act*	*2013/2014*
Class 1 Food Premises – High Risk ready to eat food serves to vulnerable groups. Including hospitals, nursing homes, child care centres. Must have 3^rd party audited FSP.	$250.00
Class 2 Food Premises – High Risk or unpackaged foods. Including hotels, restaurants cafes, takeaway, supermarkets, manufacturers, caterers, milk bars and some service stations. Must have FSPI (may be template or 3^rd Party audited)	$200.00
Class 3 Food Premises – Premises selling low risk pre-packaged food only e.g. Packaged confectionary, soft drink, Newsagents, video stores, some service stations.	$50.00
Non Profit Organisations & Community Groups – Food is prepared predominately for consumption by members, or for fundraising activities Service Clubs, mostly Sporting Clubs	$20.00
Street Stalls/Temporary Food Vendor Permits; Non Profit & Community Groups (fetes, sausage sizzle, street stall) Single Event Permit Yearly Permit (up to 12 Events per year) Private Individuals & Businesses (Markets, Private Stalls) Single Event Permit Yearly Permit (up to 12 Events per year)	$20.00 $20.00 $20.00 $40.00
Transfers Fees	50% of the current classed fee both Food & Health Act
Transfer Inspection Fee	$75.00
*Public Health and Wellbeing Act*	*2013/2014*
Hairdresser/Beauty Therapy /Skin Penetration	$80.00
Prescribed Accommodation Premises providing accommodation for 5 or more persons including hotels, motels, hostels and camps.	$80.00
*Environmental Protection Act*	*2013/2014*
Septic Tank ® New ® Alteration to Existing	$200.00 $150.00

6. MEETING CLOSE

Meeting closed at 5.26pm.

Effective Full Time Positions as at
30 June 2013	2013/14	2014/15	2015/16	2016/17
131	123	116	116	116