Minutes of Special Meeting

Buloke Shire Council Special Meeting Minutes Wednesday, 25 June 2014

5.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Author’s Title: Acting Manager Finance

Department: Finance File No: Bud1

1 ViewDraft 2014-15 Budget for Adoption

Relevance to Council Plan 2013 - 2017

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

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

Priority: 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’s Office.

Motion:

That Council having considered all submissions received in accordance with Section 223 of the Local Government Act 1989 (the Act) and having complied with the requirements of the Act:

1. Adopts the amended 2014/15 Proposed Budget as the final Adopted Annual Budget of Council for the 2014/15 financial year

2. Authorises the Acting Chief Executive Officer to give public notice of the decision to adopt the Annual Budget and submit a copy to the Minister for Local Government, in accordance with Section 130 of the Act

3. Notifies in writing the persons who have made submissions in accordance with Section 223 of the Act, of the Council’s decision

4. A general rate be declared for the period commencing on 1 July 2014 and concluding on 30 June 2015

5. Declare that the general rate be raised by the application of differential rates

6. Declare a total amount of $11,453,120 as the amount Council intends to raise by General Rates and annual Service Charges, which is calculated as follows:

· Section 158:General Rates $9,514,000

· Section 159:Municipal Charge $657,000

· Section 158:Kerbside Garbage & Recycling Collection Annual Service Charge $1,282,120

7. Declare the Municipal Charge for 2014/15 at $150 for each rateable assessment in respect of which a Municipal Charge may be levied

8. Declare the annual Service Charge for Kerbside Garbage & Recycling Collection at $380

9. Provide for an early full rate payment discount of 1.5% on rates and charges to be granted, if full payment (including any arrears and interest) is received on or before Friday 26 September 2014. (The discount to exclude the Fire Services Property Levy).

10. Make copies of the 2014/15 Adopted Budget available at Council offices and on the Council website.

Moved: Cr David Pollard

Seconded: Cr Stuart McLean

AMENDED MOTION PUT:

The closure of customer service at offices, except for Wycheproof, be removed from the budget and other processes be considered to make the savings.

Moved: Cr LEO TELLEFSON

Seconded: Cr GAIL SHARP

Cr Milne declared a Conflict of Interest.

Cr Milne left the Council Chamber at 5.33pm.

AMENDED MOTION PUT

AMENDED MOTION - lost.

Cr Milne returned to the Council Chamber at 5.39pm.

The original motion was then put and carried

Cr Milne requested a division.

Cr Reid Mather - FOR

Cr Ellen White - FOR

Cr David Pollard - FOR

Cr Stuart McLean - FOR

Cr Graeme Milne - AGAINST

Cr Leo Tellefson - FOR

Cr Gail Sharp - FOR

1. Executive Summary

In relation to the 2014/15 Proposed Budget, Council having considered public submissions and other information contained in this report must resolve whether to:

a) adopt the 2014/15 Budget following public notice and inspection in accordance with the Act and

b) declare the amount which the Council intends to raise by rates and charges

This report recommends that Council adopt the amended 2014/15 Proposed Budget attached to this report, as the final Adopted Annual Budget of Council for the 2014/15 financial year.

2. Discussion

Under the provisions of the Act, Council is required to prepare and adopt an annual budget for each financial year. The budget is required to include certain information about the rates and charges the council intends to levy, as well as a range of other information required by the regulations which support the Act e.g. the capital works program to be undertaken and the human resources required.

Importantly, the Budget document contains detailed financial performance indicators which provide a useful analysis of the Council’s financial position and performance.

3. Revisions to the Proposed Budget

Following the presentation of the Proposed Budget at the Ordinary Council meeting of 14 May 2014, the Council has become aware of new information which impacts on the Budget. This new information has been incorporated into the Proposed Budget resulting in the following amendments:

a) Federal Budget Changes:

· The Commonwealth Government intends to pause the indexation of the financial assistance grants for the three years to the end of 2016/17. This impact has resulted in a total combined loss of $579,849 of grants income being removed from the Proposed Budget for the years 2014/15 to 2017/18.

· The Commonwealth Government has indicated that it does not intend to bring forward any advance payments as has occurred in previous years. The impact has resulted in $1,322,431 of grants income being removed from the 2013/14 Forecast Actual.

b) Capital Works Carried Forward From 2013/14

· The Proposed Budget has been amended to reflect the capital works program carried forwards expenditure from 2013/14, increasing from $1,027,600 to $1,883,600 due to timing delays in finalising projects before 30 June 2014. These projects have already commenced and will now be completed in the 2014/15 financial year.

c) Sundry Debtor Flood Works Income

· The Proposed Budget provided for an estimated $800,000 of income resulting from Council staff undertaking flood recovery road work repairs on behalf of the external contractor for the flood recovery works. The total forecast income for 2013/14 has been revised down by $100,000.

d) Flood Grants Income

· Council has been advised to expect receipt of an additional $400,000 of Capital Flood Grants monies before 30 June 2014. The Proposed Budget has been amended to reflect this timing difference with the Forecast Actual 2013/14 being increased by $400,000 and the 2014/15 Budget decreased by the same amount; overall a neutral impact.

e) Loan Borrowings

· The Budget provides for an interest only loan of $7M over 5 years. Advice has recently been received advising the indicative loan interest rate will be 4.8% fixed. This positive reduction in the indicative loan interest rate reflects an additional saving of $20,000 per annum in the 2014/15 Budget and Forecast years.

4. Financial Implications

The annual budget adoption process is a formal process required under Section 127 (1) of the Act and includes the current and future financial implications of Council’s operations and capital expenditure requirements. The adopted 2014/15 Budget will provide an overarching financial framework for the Council to implement for the forthcoming year.

5. Community Consultation

The Proposed Budget was presented at the Ordinary Council meeting of Wednesday 14^th May 2014. The Proposed Budget was then publicly advertised in the Melbourne Age and three local newspapers seeking submissions from interested parties in accordance with Section 223 of the Act.

The Proposed Budget was available for inspection at the five Council district offices and also on the Council’s website www.buloke.vic.gov.au .

Public Budget Information sessions were held in ten (10) Shire of Buloke townships on 26 May and 27 May 2014.

All written submissions (nine in total including a petition with 384 signatures) received in accordance with Section 223 of the Act, were received at a Special Council meeting held on Wednesday 18^th June 2014. Several interested parties took the opportunity to provide a verbal presentation to their submission at the meeting for further Council consideration.

6. Internal Consultation

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

7. Legislative / Policy Implications

Council has a statutory responsibility to prepare and adopt a Budget In accordance with the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014.

The Council must adopt its budget and forward a copy to the Minister for Local Government by 31 August 2014.

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 relating to the preparation, presentation and adoption of the 2014/15 Budget.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Budget processes

This section lists the budget processes to be undertaken in order to adopt the Budget in accordance with the Local Government Act 1989 (the Act) and Local Government (Planning and Reporting) Regulations 2014 (the Regulations).

Under the Act, Council is required 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 2014/15 Budget, which is included in this report, is for the year 1 July 2014 to 30 June 2015 and is prepared in accordance with the Act and Regulations. The Budget includes financial statements being; a budgeted Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows and Statement of Capital Works. These statements have been prepared for the year ended 30 June 2015 in accordance with the Act and Regulations, and consistent with the annual financial statements which are prepared in accordance with Australian Accounting Standards. The Budget also includes information about the rates and charges to be levied, the capital works program to be undertaken, the human resources required, and other financial information Council requires in order to make an informed decision about the adoption of the Budget.

In advance of preparing the Budget, Officers firstly review and update Council's long term financial projections. Financial projections for at least four years are ultimately included in Council's Strategic Resource Plan, which is the key medium-term financial plan produced by Council on a rolling basis. The preparation of the Budget, within this broader context, begins with Officers preparing the operating and capital components of the annual budget during January and February. A draft consolidated budget is then prepared and various iterations are considered by Council at informal briefings during March and April. A ‘proposed’ budget is prepared in accordance with the Act and submitted to Council in May for approval ’in principle’. Council is then required to give ’public notice’ that it intends to ’adopt’ the Budget. It must give 28 days notice of its intention to adopt the proposed budget and make the Budget available for inspection at its offices and on its internet web site. A person has a right to make a submission on any proposal contained in the budget and any submission must be considered before adoption of the budget by Council.

To assist interested persons to understand the Budget and make a submission if they wish, Council officers undertake a community engagement process including public information sessions, focus groups and other techniques. The final step is for Council to adopt the budget after receiving and considering any submissions from interested parties. The Budget is required to be adopted by 31 August 2014 and a copy submitted to the Minister within 28 days after adoption. The key dates for the 2014/15 Budget process are summarised below:

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

1. Linkage to the Council Plan

This section describes how the Annual Budget links to the achievement of the Council Plan within an overall planning framework. This framework guides the Council in identifying community needs and aspirations over the long term, medium term (Council Plan) and short term (Annual Budget) and then holding itself accountable (Audited Annual Statements).

1.1 Planning and accountability framework

The Strategic Resource Plan, included in the Council Plan, is a rolling four year plan that outlines the financial and non-financial resources that Council requires to achieve the strategic objectives described in the Council Plan. The Annual Budget is framed within the Strategic Resource Plan, taking into account the services and initiatives included in the Annual Budget which contribute to achieving the strategic objectives specified in the Council Plan. The diagram below depicts the planning and accountability framework that applies to local government in Victoria.

Source: Department of Transport, Planning and Local Infrastructure

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 in advance of the commencement of the Annual Budget process.

1.2 Our purpose

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

Accountability for the Future

Creating the Future

Financial Sustainability

Asset-Based Approaches

Interconnected and Interdependent

Always Practical

Service Principles

1.3 Strategic objectives

Council delivers services and initiatives under 24 major service categories. Each contributes to the achievement of one of the five Strategic Objectives as set out in the Council Plan for the years 2013-17. The following table lists the five Strategic Objectives as described in the Council Plan.

Strategic Objective	Description
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.
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.
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.
Strategic Objective	Description
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.
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.

2. Services, initiatives and service performance indicators

This section provides a description of the services and initiatives to be funded in the Budget for the 2014/15 year and how these will contribute to achieving the strategic objectives specified in the Council Plan as set out in Section 1. It also includes a number of initiatives, and service performance outcome indicators. The Strategic Resource Plan (SRP) is part of and prepared in conjunction with the Council Plan. The relationship between these components of the Budget and the Council Plan, along with the link to reporting in the Annual Report, is shown below.

Source: Department of Transport, Planning and Local Infrastructure

2.1 Strategic Objective 1: Our Community

To achieve our objective of Our Community, we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The services, initiatives, major initiatives and service performance indicators for each business area are described below.

Services

Service area	Description of services provided	Expenditure (Revenue) Net Cost $'000
Aged and Disability Services¹⁾²⁾	This service provides a range of maintenance and support services to assist frail older people and younger people with a disability to live independently at home. Council's service provides domestic assistance, personal care, respite care, home maintenance, meals services, volunteer coordination, aged transport, aged accommodation and senior citizens centres.	1,763 (1,161) 602
Early Years	This service is to advocate for the wellbeing of children and their families and ensure it is supported through planning and service development. The service provides pre-school services in 5 towns, maternal and child health and support for playgroups run by parents.	351 (185) 166
Library Services	This service provides mobile library services to the townships of Birchip (co-located with Birchip school), Charlton, Donald, Watchem, Berriwillock, Sea Lake, Culgoa, Nullawil and Wycheproof.	278 (98) 180
Recreation^,3)	This service provides recreational facilities and support to community run recreation reserves in 9 towns across the Shire, as well as governance support to community recreation clubs and committees.	315 (0) 315
Community Grants⁴⁾	This service provides donations, allocations and support to groups in the community that contribute to services that connect and involve the local area.	73 (0) 73
Environmental Health	This service promotes the health and well-being of the Shire’s local communities through a range of Public Health Programs including immunisations, food surveillance and registration of food premises, accommodation standards and waste water management.	149 (30) 119

Initiatives

1) The cost of Aged and Disability Services are to be capped to current levels with service delivery efficiencies implemented over the 2014/15 financial year. The service efficiencies will deliver a total saving of $150,000 in the 2015/16 financial year and beyond.

2) The current community transport services, which include the taxi subsidy in Wycheproof, volunteer transport and community bus will not be continued when the vehicles are no longer fit for purpose. This will result in $30,000 budget savings in 2015/16.

3) Council will contribute $214,000 into support for recreation reserves across the shire. This will provide Recreation Maintenance Allocations to 9 townships, provided directly to the local communities.

4) Rationalisation of Council’s community grants program will reduce the administrative burden on local community groups. Community groups will now be directly funded from the budget. The following allocations are included in the budget:

Buy Local Christmas Promotion	$3,500
Senior Citizens’ Christmas Functions	$3,500
School Award Nights	$850
Township Forum Administrative Support	$10,000
Event Sponsorships	$6,300
Community Grants Program	$20,000
SES Contribution	$6,500
Agricultural Shows	$300
Australia Day Celebrations	$5,000
L2P Funding Charlton College	$15,000
Friends of Mt Wycheproof allocation	$2,000

Service Performance Outcome Indicators

Service	Indicator	Performance Measure	Computation
Home and Community Care	Participation	Participation in HACC service (Percentage of the municipal target population who receive a HACC service)	[Number of people that received a HACC service / Municipal target population for HACC services] x100
		Participation in HACC service by CALD people (Percentage of the municipal target population in relation to CALD people who receive a HACC service)	[Number of CALD people who receive a HACC service / Municipal target population in relation to CALD people for HACC services] x100
Early Years	Participation	Participation in the MCH service (Percentage of children enrolled who participate in the MCH service)	[Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service] x100
		Participation in MCH service by Aboriginal children (Percentage of Aboriginal children enrolled who participate in the MCH service)	[Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100
Libraries	Participation	Active library members (Percentage of the municipal population that are active library members)	[Number of active library members / municipal population] x100
Service	Indicator	Performance Measure	Computation
Food safety	Health and Safety	Critical and major non-compliance notifications (Percentage of critical and major non-compliance notifications that are followed up by Council)	[Number of critical non-compliance notifications and major non-compliance notifications about a food premises followed up / Number of critical non-compliance notifications and major non-compliance notifications about food premises] x100

2.2 Strategic Objective 2: Our Local Economy

To achieve our objective of Our Local Economy, we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The services, initiatives, major initiatives and service performance indicators for each business area are described below.

Services

Service area	Description of services provided	Expenditure (Revenue) Net Cost $'000
Community Support⁵⁾	The service develops links between and within the communities in the Shire and works with local communities and groups to access community projects recognised as community priorities and provides a range of youth services that support young people aged between 12 and 25. The service also facilitates economic development throughout the Shire and provides support to local businesses and assists in the promotion of tourism.	541 (105) 436
Saleyards^,6)	This service provides for the management and administration of the Council’s Saleyards Precinct at Wycheproof for external Livestock Agents to sell Livestock.	98 (95) 3
Corporate Support⁷⁾	This service provides donations, allocations and support to groups that will assists council to facilitate an environment that is conducive to a sustainable and growing local business sector and provides opportunities for local residents to improve their skill levels and access employment.	65 (0) 65

Initiatives

5) Council’s Community Services has previously been partly funded from drought and flood recovery funding and from the Uniting Church. These funding sources are no longer available. Rationalisation of the Community Support Program, which includes youth and economic development, to Council funding of 1.5 EFT is aimed at targeting government funded programs. This will maximise Council’s ability to secure funding to the community from external sources and minimise the cost to our community. Budget savings in the 2014/15 year are $90,000 with further savings projected in 2015/16 of $230,000.

6) Council’s Capital Budget will include upgrades of the ramps and fencing at the saleyards to ensure continued compliance with safety requirements.

7) The Budget provides for corporate support for organisations which will enhance economic opportunities and advocate for community issues. The following allocations are provided for in the budget:

Birchip Cropping Group	$5,000
Buloke &Northern Grampians Landcare network	$5,000
Regional Strategic Plan Stakeholder Contribution	$1,500
Wimmera Mallee Tourism	$5,000
Rural Councils Victoria	$2,000
Municipal Association of Victoria	$10,000
STEP Asset Management	$8,000
Wimmera Regional Transport Group	$5,200
Sunraysia Hwy Committee	$1,000
Central Victorian Greenhouse Alliance	$1,100
Livestock Saleyards Victoria Association	$1,200
Alliance of Councils for Freight Development	$2,000
Rate Free Program (phase out)	$4,000
Loddon Murray Leadership Program	$7,000
Central Murray Regional Transport Forum	$3,000

Service Performance Outcome Indicators

Service

Indicator

Performance Measure

Computation

Economic Development

Economic activity

Change in number of businesses

(Percentage change in the number of businesses with an ABN in the municipality)

[Number of businesses with an ABN in the municipality at the end of the financial year less the number of businesses at the start of the financial year / Number of businesses with an ABN in the municipality at the start of the financial year] x100

2.3 Strategic Objective 3: Our Built Environment

To achieve our objective of Our Built Environment, we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The services, initiatives, major initiatives and service performance indicators for each business area are described below.

Services

Service area	Description of services provided	Expenditure (Revenue) Net Cost $'000
Assets & Project Management	This service is to provide for the management, design and administration of Council's assets and infrastructure services, including planning and management of the capital works program.	160 (50) 110
Property Maintenance⁸⁾	This service is to provide Property Maintenance Services to a range of Council's building-based assets, focussing on the upkeep and renewal of buildings.	999 (47) 952
Road Services⁹⁾¹⁰⁾	This service is to provide road maintenance for the 1100km of Sealed, 650km of Gravel and 3,800km of Earth roads across the Shire.	8,194 (2,233) 5,961
Swimming Pools¹¹⁾	This service manages and operates seven seasonal swimming pools, from the third week in November to the third week in March, annually.	676 (0) 676
Urban Areas¹²⁾	This service manages and coordinates Council’s Parks & Gardens, Urban Infrastructure & Aerodromes providing routine, preventative and on-going maintenance and improvements.	2,755 (3) 2,752
Statutory Compliance¹³⁾	The purpose of the Statutory and Compliance Service is to provide Statutory Planning, Building Services and Compliance and Local Laws services.	683 (224) 459

Initiatives

8) Improvement to Community Halls with a range of upgrade works to kitchens, heating and cooling. Council will also improve the community access to our Halls by removing the fees charged to community groups.

9) Rationalisation of our work crews with a reduction in grader crews from 6 to 4 combined with a program to upgrade and modernise Council’s outdoor plant fleet. This will be phased in over the 2014/15 financial year with budget savings in the 2015/16 year projected to be $970,000.

10) The Budget provides for the implementation of Council’s Road Management Plan which, with new road classifications, reduces Council’s long term costs and the roads depreciation reduction of $556,000.

11) Continued delivery of seasonal swimming pools in 7 townships. Council to seek further partnerships with community groups to increase the accessibility to community pools.

12) Rationalisation of resources in Urban Areas in Environment will be phased in over the 2014/15 financial year resulting in a 25% reduction in resource levels, delivering a budget saving in 2015/16 of $270,000.

13) Develop a Rural Land Use Strategy for the Buloke Planning Scheme that will plan for long term agricultural productivity alongside complimentary uses within rural zones.

Service Performance Outcome Indicators

Service

Indicator

Performance Measure

Computation

Aquatic Facilities

Utilisation

Utilisation of aquatic facilities

(Number of visits to aquatic facilities per head of municipal population)

Number of visits to aquatic facilities / Municipal population

Statutory planning

Decision making

Council planning decisions upheld at VCAT

(Percentage of planning application decisions subject to review by VCAT and that were not set aside)

[Number of VCAT decisions that did not set aside Council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications] x100

Roads

Satisfaction

Satisfaction with sealed local roads

(Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads)

Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads

Animal Management

Health and safety

Animal management prosecutions

(Number of successful animal management prosecutions)

Number of successful animal management prosecutions

2.4 Strategic Objective 4: Our Natural Environment

To achieve our objective of Our Natural Environment, we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The services, initiatives, major initiatives and service performance indicators for each business area are described below.

Services

Service areas	Description of services provided	Expenditure (Revenue) Net Cost $'000
Environmental Planning¹⁴⁾¹⁵⁾	This service manages Council's Environmental Compliance and Sustainability Programs and Services.	95 (0) 95
Lakes¹⁶⁾	This service provides a contribution to the management and development of the Recreational Lakes including Tchum, Green, Wooroonook, Watchem & Folletti Lakes.	42 (0) 42
Waste & Environment¹⁷⁾	Waste and Environment Services is responsible for the maintenance and improvement of Council’s landfills and transfer stations as well as providing a Residential Kerbside Garbage & Recycling service in all towns within the Shire.	1,416 (1,043) 373

Initiatives

14) Implementation of the Street Light Sustainability Upgrade program which will see Council’s street light converted to LED technology. This will not only reduce Council’s carbon footprint but will see a long term cost saving to the community.

15) A review of all Council owned and/or operated gravel pits will be commenced in 2014/15 to ascertain the future planning and operation of these assets.

16) Council will continue to support lakes with cleaning and litter collection. Contribution to water costs will not be included for funding in the 2014/15 budget; however GWM Water will take over subsidising local lake committees of the water cost by over 50% through the new Recreation Contribution Charge. This has reduced the cost of water delivered to lakes from $48 per megalitre to $20 per megalitre.

17) Council will provide for full cost recovery for waste management and street cleaning services, resulting in an improved budget position for 2014/15 of $431,000.

Service Performance Outcome Indicators

Service

Indicator

Performance Measure

Computation

Waste collection

Waste diversion

Kerbside collection waste diverted from landfill

(Percentage of garbage, recyclables and green organics collected from kerbside bins that is diverted from landfill)

[Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins] x100

2.5 Strategic Objective 5: Our People and Organisation

To achieve our objective of Our People and Organisiation, we will continue to plan, deliver and improve high quality, cost effective, accessible and responsive services. The services, initiatives, and service performance indicators for each business area are described below.

Services

Service areas	Description of services provided	Expenditure (Revenue) Net Cost $'000
Customer Services¹⁸⁾	This service provides for both internal and external customers by resolving the majority of customer enquiries, requests and payments at the first point of contact.	471 (0) 471
Governance & Executive Management	This service provides for Councillors, and Executive Support and associated which provides the overall Governance Services to the Council.	897 (0) 897
Information Management	This service is to provide the organisation with Records Management Services and Information and Telecommunications Services.	1,030 (0) 1,030
Municipal Emergency Management¹⁹⁾	This service develops, coordinates and delivers Council’s Municipal Emergency Management Plan and coordination of MECC Centre and associated software.	159 (60) 99
Procurement.²⁰⁾	This service reviews and implements all business processes associated with purchasing, contracting and the tendering services and to manage Council's light fleet and community buses.	393 (10) 383

Service areas

Description of services provided

Expenditure
(Revenue)

Net Cost
$'000

Customer Services¹⁸⁾

This service provides for both internal and external customers by resolving the majority of customer enquiries, requests and payments at the first point of contact.

471

(0)

471

Governance & Executive Management

This service provides for Councillors, and Executive Support and associated which provides the overall Governance Services to the Council.

897

(0)

897

Information Management

This service is to provide the organisation with Records Management Services and Information and Telecommunications Services.

1,030

(0)

1,030

Municipal Emergency Management¹⁹⁾

This service develops, coordinates and delivers Council’s Municipal Emergency Management Plan and coordination of MECC Centre and associated software.

159

(60)

Procurement.²⁰⁾

This service reviews and implements all business processes associated with purchasing, contracting and the tendering services and to manage Council's light fleet and community buses.

393

(10)

383

Initiatives

18) Rationalisation of the Customer Service provision by increasing access for all financial transactions at Post Office outlets and closing the public access at four of Council’s District Offices. This initiative is to be phased in over the 2014/15 financial year resulting in budget savings of $380,000 in the 2015/16 budget.

19) In collaboration with emergency services agencies, Council will complete a full review and implementation of a new Municipal Emergency Management Plan and commence reviews on emergency sub-plans.

20) Improved efficiencies in the provision of procurement services to provide the service with 2.5EFT. This initiative will be phased in over the 2014/15 financial year resulting in budget savings in 2014/15 of $70,000 and total saving in the 2015/16 Budget of $150,000.

Service

Indicator

Performance Measure

Computation

Governance

Satisfaction

Satisfaction with Council decisions

(Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community)

Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community

2.6 Performance Statement

The service performance indicators detailed in the preceding pages will be reported on within the Performance Statement which is prepared at the end of the year as required by section 132 of the Act and included in the 2014/15 Annual Report. The Performance Statement will also include reporting on prescribed indicators of financial performance (outlined in section 8) and sustainable capacity, which are not included in this budget report. The full set of prescribed performance indicators are audited each year by the Victorian Auditor General who issues an audit opinion on the Performance Statement. The major initiatives detailed in the preceding pages will be reported in the Annual Report in the form of a statement of progress in the report of operations.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

3. Budget influences

This section sets out the key budget influences arising from the internal and external environment within which the Council operates.

3.1 Snapshot of Buloke Shire Council

Our Shire

Buloke Shire is located in north-western Victoria, between 210 and 360 kilometres north-west of Melbourne and 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 used largely for agriculture, particularly grain (wheat, oats and barley) production and sheep grazing. 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.

Our Community

6,388 people live in 3,282 households in Buloke, making it one of Victoria’s most sparsely populated municipalities. The community of Buloke is made up of 2,035 (31.9%) of people over the age of 60; 2,900 (45.4%) between 18 and 60 years; 1,119 (14.2%) between 5 and 17 years; and 334 (5.3%) between 0 and 4 years.

The Buloke population is stable, with 4,238 residents (66.3%) living in the Shire for at least five years. 652 residents (10.2%) moved to the Shire from another part of Victoria in the five years prior to 2011. 210 residents (3.3%) moved to the Shire from another part of Australia in the five years to 2011.

The educational qualifications attained by Buloke residents are comparatively less than found in regional Victoria with only 1,703 residents (32.6%) holding postsecondary educational qualifications.

Compared to regional Victoria, in 2011 there was a smaller proportion of high-income households (those earning $1,500 per week or more) and a larger proportion of low-income households (those earning less than $600 per week) in Buloke. Overall, 221 Buloke households (8.3%) earned a high income, and 408 (15.4%) were low-income households, compared with 10.3% and 12.3% respectively for regional Victoria.

Our Local Economy

Workplaces in Buloke provide approximately 2,725 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 (7.9%) 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 (149 or 5.5%).

Between 2006 and 2011 the proportion of persons 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.

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.

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.

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 to 64 age bracket. This inward migration has been for liveability and affordability reasons.

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

Budget implications

As a result of the Shire’s demographic profile there are a number of budget implications in the short and long term:

· Population decline will result in the rate burden being borne by a smaller rate base. This has resulted in a requirement to review service levels and reduce the operating expenditure of the council. This will see an overall reduction in staff numbers in the 2014/15 and 2015/16 financial years.

· The Shire’s reliance on community volunteers has seen the budget retain funding levels to areas of the community which rely on volunteer services.

3.2 External influences

· Consumer Price Index (CPI) increases on goods and services of 2.7% through the year to December quarter 2013 (ABS release 22 January 2014 State-wide CPI is forecast to be 2.5% for the 2014/15 year (Victorian Budget Papers 2013/14).

· Australian Average Weekly Earnings (AWE) growth for Public Sector full-time adult ordinary time earnings in the 12 months to May 2013 was 4.5% (ABS release 15 August 2013). The wages price index in Victoria is projected to be 3.5% per annum in 2014/15 and the subsequent two years (Victorian Budget Papers 2013/14). Council must renegotiate a new Collective Agreement during the 2014/15 year. Completion of the substantial Flood Recovery works will see a significant reduction in external grant funds.

· The Abbott Government introduced the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 and related bills to the House of Representatives on the 13th of November 2013, with the intention to abolish the carbon price from 1 July 2014.

· The Fire Services Property Levy will continue to be collected by Council on behalf of the State Government with the introduction of the Fire Services Property Levy Act 2012.

3.3 Internal influences

As well as external influences, there are also a number of internal influences which are expected to have a significant impact on the preparation of the 2014/15 Budget. These matters have arisen from events occurring in the 2013/14 year resulting in variances between the forecast actual and budgeted results for that year and matters expected to arise in the 2014/15 year. These matters and their financial impact are set out below:

· The funding partnership from the Uniting Church for Youth services has ended. This will result in a rationalisation of our Youth, Economic Development and Community Services.

· A review of Waste Services has identified a significant shortfall in income from users of the service. The budget makes provision for full cost recovery for Council’s garbage charge.

3.4 Budget principles

In response to these influences, guidelines were prepared and distributed to all Council officers with budget responsibilities. 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.

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

· Real savings in operating expenditure to be implemented over the 2014/15 and 2015/16 financial year.

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

· Operating revenues and expenses arising from completed 2013/14 capital projects to be included.

3.5 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 Strategic Resource Plan for 2014/15 to 2017/18 (section 8.), Rating Information (section 9.) and Other Long Term Strategies (section 10.) including borrowings and service reviews.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

4. Analysis of operating budget

This section analyses the operating budget including expected income and expenses of the Council for the 2014/15 year.

4.1 Budgeted income statement

	Ref	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Total income	4.2	57,178	25,319	(31,859)
Total expenses	4.3	(25,411)	(24,370)	1,041
Surplus (deficit) for the year		31,767	949	(30,818)
Grants – capital non-recurrent	4.2.6	(40,350)	(4,969)	35,381
Contributions - non-monetary assets		0	0	0
Capital contributions - other sources	4.2.4	(519)	(1,120)	(601)
Adjusted underlying surplus (deficit)	4.1.1	(9,102)	(5,140)	3,962

4.1.1 Adjusted underlying deficit ($3.96 million decrease)

The adjusted underlying result is the net surplus or deficit for the year adjusted for non-recurrent capital grants, non-monetary asset contributions, and capital contributions from other sources. It is a measure of financial sustainability and Council’s ability to achieve its service delivery objectives as it is not impacted by capital income items which can often mask the operating result. The adjusted underlying result for the 2014/15 year is a deficit of $5.14 million which is an improvement of $3.96 million from the 2013/14 year. In calculating the adjusted underlying result, Council has excluded grants received for capital purposes which are non-recurrent and capital contributions from other sources.

4.2 Income

Income Types	Ref	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Rates and charges	4.2.1	10,446	11,453	1,007
Statutory fees and fines	4.2.2	86	84	(2)
User fees	4.2.3	709	744	35
Contributions - cash	4.2.4	589	132	(457)
Grants - operating	4.2.5	3,945	6,665	2,720
Grants – capital	4.2.6	40,350	5,969	(34,381)
Net gain on sale of assets	4.2.7	14	10	(4)
Other income	4.2.8	1,039	262	(777)
Total income		57,178	25,319	(31,859)

4.2.1 Rates and charges ($1.01 million increase)

It is proposed that general rate income be increased by 6.0% over 2013/14 to $9.514 million. Kerbside waste and recycling charges are proposed to increase to $1.28 million (49% increase) to reflect full cost recovery. Section 9. “Rating Information” includes a more detailed analysis of the rates and charges to be levied for 2014/15. Information on rates and charges specifically required by the Regulations is included in Appendix B.

4.2.2 Statutory fees and fines ($0.02 million decrease)

Statutory fees relate mainly to fees and fines levied in accordance with legislation and include animal registrations. These form a minor part of council income stream.

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

4.2.3 User fees ($0.03 million 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 community facilities and the provision of human services such as family day care and 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.

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

4.2.4 Contributions - cash ($0.46 million decrease)

Contributions relate to monies paid by developers in accordance with planning permits issued for property development and by community groups for contributions to capital projects.

Contributions are projected to decrease by $0.46 million compared to 2013/14 due mainly to the completion of a number of community projects within the municipality during the 2013/14 year.

4.2.5 Grants - operating ($2.72 million increase)

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 increased by $2.72 million compared to 2013/14. The increase in Victoria Grants Commission (VGC) funding, is related to the adjusted timing of which we have been advised with regard to receiving the funding.

A list of operating grants by type and source, classified into recurrent and non-recurrent, is included below.

Operating Grant Funding Types and Source	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Recurrent - Commonwealth Government
Victorian Grants Commission	2,679	5,469	2,790
Family day care
General home care	561	563	2
Other (*specify each type)
Recurrent - State Government
Primary care partnerships
Aged care	164	162	(2)
School crossing supervisors	12	12	0
Libraries	99	98	(1)
Maternal and child health	135	130	(5)
Recreation	55	55	0
Community safety	24	24	0
Other (*specify each type)	67	102	35
Total recurrent grants	3,796	6,615	2,819

Non-recurrent - Commonwealth Government
Drainage maintenance		-
Environmental planning	80	50	(30)
Non-recurrent - State Government
Community health	69	0	(69)
Family and children	-
Total non-recurrent grants	149	50	(99)

4.2.6 Grants - capital ($34.38 million decrease)

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 decreases by $35.39 million compared to 2013/14 due to the completion of flood works in the previous year. Section 6. “Analysis of Capital Budget” includes a more detailed analysis of the grants and contributions expected to be received during the 2014/15 year.

A list of capital grants by type and source, classified into recurrent and non-recurrent, is included below. Some of these grants are subject to funding announcements.

Capital Grant Funding Types and Source	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Recurrent - Commonwealth Government
Roads to recovery		1,000	1,000
Recurrent - State Government	-	-	-
Country Roads and bridges	1,000	1,000	0
Total recurrent grants	1,000	2,000	1,000
Non-recurrent - Commonwealth Government
Flood Grants	37,900	700	(37,200)
Buildings	50	0	(50)
Community Infrastructure	539	581	42
Drainage		1,558	1,558
Footpaths
Non-recurrent - State Government
Buildings	861	1,130	259
Total non-recurrent grants	39,350	3,969	(35,381)

4.2.7 Net gain on sale of assets minor decrease)

Proceeds from the sale of Council assets are forecast to be $10,000 for 2014/15 which relates to the sale of minor plant.

4.2.8 Other income ($0.88 million 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 decrease by $0.88 million compared to 2013/14. This is mainly due to the work that was carried out by council works crews on the Flood Contract which will not be available in 2013/14.

4.3 Expenses

Expense Types	Ref	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Employee costs	4.3.1	10,107	10,135	28
Materials and services	4.3.2	6,583	5,785	(798)
Bad and doubtful debts	4.3.3	13	11	(2)
Depreciation and amortisation	4.3.4	7,707	7,334	(373)
Finance costs	4.3.5	127	376	249
Other expenses	4.3.6	874	729	(145)
Total expenses		25,411	24,370	(1,041)

Source: Appendix A

4.3.1 Employee costs ($.03 million increase)

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 increase by $28,000 compared to 2013/14. Staff numbers are projected to decrease by 5 EFT from the 2013/14 budget with salary increases as per the Enterprise Agreement.

A summary of human resources expenditure categorised according to the organisational structure of Council is included below:

		Comprises
Department	Budget 2014/15 $’000	Permanent Full time $’000	Permanent Part Time $’000
Asset & Infrastructure	1,236	1,116	120
Community Services	1,414	494	920
Corporate Services	1,044	817	227
Finance & Governance	2,032	1,881	151
Works & Construction	3,881	3,558	323
Total permanent staff expenditure	9,607	7,866	1,741
Casuals and other expenditure	528
Total operating expenditure	10,135
Capital expenditure	235
Total expenditure	10,370

A summary of the number of full time equivalent (FTE) Council staff in relation to the above expenditure is included below:

		Comprises
Department	Budget FTE	Permanent Full time	Permanent Part Time
Asset & Infrastructure	15.5	14	1.5
Community Services	19.2	6	13.2
Corporate Services	12.4	10	2.4
Finance & Governance	21.4	20	1.4
Works & Construction	54.4	51	3.4
Total permanent operating staff	126	104	22
Casuals and other	7.6
Total Capital works staff	3	3
Total staff	133.6

4.3.2 Materials and services ($0.79 million decrease)

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 decrease by $0.79 million compared to 2013/14.

The reductions are in a range of areas including consultant fees ($200,000), road material ($100,000) and fuel ($60,000) as well as other areas such as labour hire, IT maintenance and contract.

4.3.3 Bad and doubtful debts (minor decrease)

Bad and doubtful debts is projected to remain at similar level to the previous year with only a $2,000 decrease.

4.3.4 Depreciation and amortisation ($0.37 million decrease)

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. There will be an increase in depreciation of $161,000 due to the completion of the 2014/15 capital works program and the full year effect of depreciation on the 2013/14 capital works program. This increase will be more than offset by a decrease of $531,000 in the depreciation on roads due to the adoption by council of the road management plan. Refer to section 6. ‘Analysis of Capital Budget’ for a more detailed analysis of Council’s capital works program for the 2014/15 year.

4.3.5 Finance costs ($0.25 million increase)

Borrowing costs relate to interest charged by financial institutions on funds borrowed. The increase in finance costs relate to the $7.0 million loan provided for in the budget. The taking of a loan will allow council to manage its cash position and negate the need to run a significant overdraft position. This will see an overall savings in finance costs, had council relied on overdraft facilities to fund operating activities and capital works expenditures.

4.3.6 Other expenses ($0.15 million decrease)

Other expenses relate to a range of unclassified items.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

5. Analysis of budgeted cash position

This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2014/15 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

	Ref	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Cash flows from operating activities	5.1.1
Receipts
Rates and charges		10,400	11,440	1,040
User fees and fines		814	827	13
Grants - operating		3,944	6,665	2,721
Grants - capital		40,350	5,969	(34,381)
Interest		70	50	(20)
Other receipts		927	471	(456)
		56,505	25,422	(31,083)
Payments
Employee costs		(10,418)	(10,134)	284
Other payments		(7,500)	(6,514)	986
		(17,918)	(16,648)	1,270
Net cash provided by operating activities		38,587	8,774	(29,813)

Cash flows from investing activities	5.1.2
Proceeds from sales of property, infrastructure, plant and equipment		24	10	(14)
Repayment of loans and advances		(1,582)	0	1,582
Deposits		0	0	0
Payments for property, infrastructure, plant and equipment		(44,146)	(10,465)	33,681
Net cash used in investing activities		(45,704)	(10,455)	35,249

Cash flows from financing activities	5.1.3
Finance costs		(130)	(376)	(246)
Proceeds from borrowings		1,550	7,000	5,450
Repayment of borrowings		(565)	(782)	(217)
Net cash used in financing activities		855	5,842	4,987
Net (decrease)/increase in cash and cash equivalents		(6,262)	4,161	10,423
Cash and cash equivalents at the beginning of the period		2,116	(4,146)	(6,262)
Cash and cash equivalents at end of the year	5.1.4	(4,146)	15	4,161

Source: Appendix A

5.1.1 Operating activities ($29.81 million decrease)

The significant decrease in cash inflows from operating activities is due to the reduction in capital grants to fund the flood reconstruction works. Excluding the capital contribution for flood works there is an increase in receipts reflecting the 6% rise in rates and the increase in the kerbside waste and recycling charge ($0.43 million). In addition to this there is an increase in grants of $2.72 million which is due to the timing of when we will receive grants commission funding.

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. The budgeted operating result is reconciled to budgeted cash flows available from operating activities as set out in the following table.

	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000		Variance $’000
Surplus (deficit) for the year	21,665	949	(20,716)
Revaluation	10,102	0	(10,102)
Depreciation	7,707	7,334	(373)
Loss (gain) on sale of assets	(14)	(10)	4
Net movement in current assets and liabilities	(873)	501	1,374
Cash flows available from operating activities	38,587	8,774	(29,813)

5.1.2 Investing activities ($35.25 million decrease)

The large decrease in payments for investing activities represents large capital works expenditure disclosed related to the flood recovery works. It is planned to implement a review and sale of council property. Proceeds from sale of assets of this nature are not forecast in the 2014/15 Budget due to expected settlement of land sales not being received until the 2015/16 year.

5.1.3 Financing activities ($4.99 million increase)

The increase reflects the $7.0 million loan borrowings for the 2014/15 year. Adjustments have been made to repay the current loans of council (0.78 million) and a subsequent increase in finance costs to repay the interest on the new loan amount.

5.1.4 Cash and cash equivalents at end of the year ($4.16 million increase)

Overall, total cash and investments is forecast to increase by $4.16 million as at 30 June 2015, reflecting Council’s strategy of using borrowings in the medium term to finance operating activities. This is consistent with Council’s Strategic Resource Plan (see Section 8), which forecasts a significant reduction in the capital works program from 2014/15 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 2015 it will have cash and investments of $0.015 million, which has been partly restricted as shown in the following table.

		Forecast
		Actual	Budget	Variance
	Ref	2014	2015
		$’000	$’000	$’000
Total cash and investments		(4,146)	15	4,161
Restricted cash and investments
- Statutory reserves	5.2.1	0	0	0
- Cash held to fund carry forward capital works	5.2.2	3,633	0	3,633
- Trust funds and deposits		116	116	0
Unrestricted cash and investments	5.2.3	(7,895)	(101)	7,794
- Discretionary reserves	5.2.4	0	0	0
Unrestricted cash adjusted for discretionary reserves	5.2.5	(7,895)	(101)	7,794

5.2.1 Statutory reserves

These funds must be applied for specified statutory purposes in accordance with various legislative requirements. Council do not have any Statutory Reserves.

5.2.2 Cash held to fund carry forward capital works

There is no amount shown as cash held to fund carry forward works at 30 June 2015, as it is expected that the capital works budget in the 2014/15 financial year will be fully completed. An amount of $3.6 million is forecast to be held at 30 June 2014 to fund capital and flood reconstruction works completed but not paid in the 2013/14 financial year. Section 6.2 contains further details on capital works funding.

5.2.3 Unrestricted cash and investments ($NIL)

The amount shown is in accordance with the definition of unrestricted cash included in the Regulations. These funds are free of statutory reserve funds and cash to be used to fund capital works expenditure from the previous financial year. This has to be a positive number for the cash to be unrestricted.

5.2.4 Discretionary reserves ($NIL)

These funds are shown as discretionary reserves as, although not restricted by a statutory purpose, 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. The decisions about future use of these funds has been reflected in Council’s Strategic Resource Plan and any changes in future use of the funds will be made in the context of the future funding requirements set out in the plan.

5.2.5 Unrestricted cash adjusted for discretionary reserves ($NIL)

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 and contributions. The SRP identifies improvements in the unrestricted cash in forward years. This has to be a positive number for the cash to be unrestricted.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

6. Analysis of capital budget

This section analyses the planned capital works expenditurebudget for the 2014/15 year and the sources of funding for the capital budget.

6.1 Capital works expenditure

	Ref	Forecast	Budget		Variance
		Actual	2014/15
Capital Works Areas		2013/14	$’000		$’000
		$’000
Works carried forward	6.1.1
Property
Buildings			1,806		1,806
Total property		0	1,806		1,806
Plant and equipment
Plant, machinery and equipment
Computers and telecommunications
Total plant and equipment		0	0		0
Infrastructure
Rec, leisure and community facilities			78		78
Total infrastructure		0	78		78
Total works carried forward		0	1, 884		1,884

New works
Property	6.1.2
Buildings		2,392	819		(1,573)
Building improvements
Total property		2,392	819		(1,573)
Plant and equipment	6.1.3
Plant, machinery and equipment		595	760		165
Fixtures, fittings and furniture
Computers and telecommunications		343	150		-193
Library books
Total plant and equipment		938	910		(28)
Infrastructure	6.1.4
Roads		42,904	1,494		(41,410)
Bridges		400	400		0
Footpaths and cycleways		3	94		91
Drainage		150	1,760		1,610
Waste management		5			(5)
Parks, open space and streetscapes
Aerodromes			10		10
Other infrastructure		79	36		(43)
Kerb and Channel		11	87		76
Landfill		44	190		146
Saleyards			99		99
Total infrastructure		43,596	4,170		(39,426)
Total new works		46,926	5,899		(41,027)

Total capital works expenditure		46,926	7,783		(39,143)

		Actual	2014/15
Capital Works Areas		2013/14	$’000		$’000
		$’000
Represented by:
Asset renewal expenditure	6.1.5	45,527	4,085	(41,442)
New asset expenditure	6.1.5	1,131	2,042	911
Asset upgrade expenditure	6.1.5	268	1,656	1,388
Asset expansion expenditure	6.1.5
Total capital works expenditure		46,926	7,783	(39,143)

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

6.1.1 Carried forward works ($1.884 million)

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 2013/14 year it is forecast that $1.88 million of capital works will be incomplete and be carried forward into the 2014/15 year. These works are for 5 projects the Donald Family Services Centre, Birchip Bowling Green Redevelopment, Charlton 2020 Design Services, Charlton Skate Park and Wycheproof Centenary Park Shade Structure.

6.1.2 Property ($0.82 million)

The property class comprises buildings and building improvements including community facilities, municipal offices, sports facilities, swimming pools and pavilions.

For the 2014/15 year, $0.82 million will be expended on building and building improvement projects. These works include a program of upgrades to kitchens, heating and cooling in Council’s Community Halls.

6.1.3 Plant and equipment ($0.91 million)

Plant and equipment includes plant, machinery and equipment, computers and telecommunications, and library books.

For the 2014/15 year, $0.91 million will be expended on plant, equipment and other projects. This includes the replacement of 3 of Council’s grader fleet with a new grader.

6.1.4 Infrastructure ($4.17 million)

Infrastructure includes roads, bridges, footpaths, drainage, recreation, parks, open space and streetscapes, landfills, aerodromes, saleyards and other structures.

For the 2014/15 year, $1.56 million will be expended on road projects. These projects are fully funded from the Roads to Recovery program and the Country Roads and Bridges Program.

$1.68 million will be expended on drainage projects with funding for a detailed Levee design for Charlton, the St Arnaud Road floodway and the stage 1 levee bank development at Donald.

6.1.5 Asset renewal ($4.08 million), new assets ($2.04 million) and upgrade ($1.65 million)

A distinction is made between expenditure on new assets, asset renewal and upgrade. Expenditure on asset renewal is expenditure on an existing asset, or on replacing an existing asset that returns the service of the asset to its original capability. Expenditure on new assets does not have any element of expansion or 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 for the flood development works, which will develop new infrastructure for flood protection.

6.2 Funding sources

Sources of Funding	Ref	Forecast Actual 2013/14 $’000	Budget 2014/15 $’000	Variance $’000
Works carried forward
*Current year funding*
Grants		5,348	1,696	(3,652)
Council cash
- operations			188	188
Total works carried forward	6.2.1	5,348	1,884	(3,464)

New works
*Current year funding*
Grants	6.2.2	1,582	4,419	2,837
-Flood Grants		37,900		(37,900)
Contributions		590	22	(568)
Borrowings
Council cash
- operations	6.2.3	1,506	1,458	(448)
- reserve cash
Total new works		41,578	5,899	(35,679)
Total funding sources		46,926	7,783	(39,143)

Source: Appendix A

6.2.1 Carried forward works ($1.884 million)

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 2013/14 year it is forecast that $1.884 million of capital works will be incomplete and be carried forward into the 2014/15 year . The Donald Family services centre is the major project, which was funded from grants.

6.2.2 Grants ($4.419 million)

Capital grants include all monies received from State and Federal sources for the purposes of funding the capital works program. Significant grants and contributions are budgeted to be received from Roads to Recovery and Country Roads and Bridges program ($2.0 million). The budget also provides for funding from the Local Infrastructure program and funding for flood related works ($1.675 mill). All flood related capital works will be completed in the 2013/14 year.

6.2.3 Council cash - operations ($1.458million)

Council will need to use cash from its operating activities, as a funding source for the capital works program. It is forecast that $1.46 million will be generated from operations to fund the 2014/15 new capital works program.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

7. Analysis of budgeted financial position

This section analyses the movements in assets, liabilities and equity between 2013/14 and 2014/15.
It also considers a number of key performance indicators.

7.1 Budgeted balance sheet

	Ref	Forecast Actual 2014 $’000	Budget 2015 $’000	Variance $’000
Current assets	7.1.1
Cash and cash equivalents		(4,146)	15	4,161
Trade and other receivables		1,210	1,223	13
Financial assets		0	0	0
Other assets		151	151	0
Total current assets		(2,785)	1,389	4,174

Non-current assets	7.1.1
Property, infrastructure, plant and equipment		186	186	0
Investments in regional library corporation		180,772	181,335	563
Total non-current assets		180,958	181,521	563
Total assets		178,173	182,910	4,737

Current liabilities	7.1.2
Trade and other payables		4,765	2,335	2,430
Interest-bearing loans and borrowings		985	203	782
Provisions		2,194	2,194	0
Total current liabilities		7,944	4,732	3,212

Non-current liabilities	7.1.2
Interest-bearing loans and borrowings		0	7,000	(7,000)
Provisions		1,535	1,535	0
Total non-current liabilities		1,535	8,535	(7,000)
Total liabilities		9,479	13,267	(3,788)
Net assets		168,694	169,643	949

Equity	7.1.4
Accumulated surplus		82,647	83,596	949
Asset revaluation reserve		86,047	86,047	0
Total equity		168,694	169,643	949

Source: Appendix A

7.1.1 Current Assets ($4.17 million increase) and Non-Current Assets ($0.56 million increase)

Cash and cash equivalents include cash and investments such as cash held in the bank and in petty cash. These balances are projected to increase by $4.2 million during the year mainly due to the injection of loan funds into the cash balance.

Trade and other receivables are monies owed to Council by ratepayers, sundry debtors and others. Short term debtors are not expected to change significantly in the budget.

Other assets includes items such as prepayments for expenses that Council has paid in advance of service delivery, inventories or stocks held for sale or consumption in Council’s services and other revenues due to be received in the next 12 months. Accrued income is not expected to change during the 2014/15 year.

Property, infrastructure, plant and equipment is the largest component of Council’s worth and represents the value of all the land, buildings, roads, vehicles, equipment, etc which has been built up by Council over many years. The increase in this balance is attributable to the proposed capital expenditure being greater than depreciation in this year.

7.1.2 Current Liabilities ($3.12 million decrease) and Non-Current Liabilities ($7.0 million increase)

Trade and other payables are those to whom Council owes money as at 30 June. These liabilities are budgeted to reduce in the 2014/15 year. It is budgeted that works on the flood reconstruction works will be completed by 30 June 2014; however Council will not have made the final payment to the contractor by that date. This payment of $2.8 million will be paid in the 2014/15 year therefore reducing Council’s liabilities.

Provisions include accrued long service leave, annual leave and rostered days off owing to employees. These employee entitlements are not expected to change over the 2014/15 year.

Interest-bearing loans and borrowings are borrowings of Council. Council is budgeting to borrow $7.0 million over the year.

7.1.3 Working Capital ($3.75 million increase)

Working capital is the excess of current assets above current liabilities. This calculation recognises that although Council has current assets, some of those assets are already committed to the future settlement of liabilities in the following 12 months, and are therefore not available for discretionary spending.

	Forecast Actual 2014 $’000	Budget 2015 $’000	Variance $’000
Current assets	(2,785)	1,389	(4,174)
Current liabilities	7,944	4,732	3,212
Working capital	(10,729)	(3,343)	(7,386)
Restricted cash and investment current assets
- Statutory reserves	0	0	0
- Cash held to fund carry forward capital works	3,633	0	3,633
- Trust funds and deposits	0	0	0
Unrestricted working capital	(7,096)	(3,343)	(3,753)

7.1.4 Equity ($0.95 million increase)

Total equity always equals net assets and is made up of the following components:

· Asset revaluation reserve which represents the difference between the previously recorded value of assets and their current valuations

· Other reserves that are funds that Council wishes to separately identify as being set aside to meet a specific purpose in the future and to which there is no existing liability. These amounts are transferred from the Accumulated Surplus of the Council to be separately disclosed

· Accumulated surplus which is the value of all net assets less Reserves that have accumulated over time. The increase in accumulated surplus of $0.95 million results directly from the surplus for the year.

8. Strategic resource plan and financial performance indicators

This section includes an extract of the adopted Strategic Resource Plan (SRP) to provide information on the long term financial projections of the Council.

8.1 Plan development

The Act requires a forward financial plan to be prepared covering both financial and non-financial resources, and including key financial indicators for at least the next four financial years to support the Council Plan.

Council has prepared a Financial Plan for the period 2014/15 to 2017/18 as part of its ongoing financial planning to assist in adopting a budget within a longer term framework.

The key objective, which underlines the development of the Plan, is financial sustainability in the medium term, while still achieving Council’s strategic objectives as specified in the Council Plan.

The financial plan for 2014 – 2018 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. in 2014/15 and continuing at this level the remainder of the Plan or in line with cost increases or market levels as appropriate.

· To continue to receive untied Financial Assistance Grants from the Commonwealth at levels as determined by the Commonwealth Government.

· To reduce staff costs, with a particular focus on achieving these reductions in the first 2 years of the Plan.

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

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

· In preparing the Plan, Council has also been mindful of the need to comply with the following Principles of Sound Financial Management as contained in the Act:

o Prudently manage financial risks relating to debt, assets and liabilities

o Provide reasonable stability in the level of rate burden

o Consider the financial effects of Council decisions on future generations

o Provide full, accurate and timely disclosure of financial information.

The Plan will be updated on a continuous basis as circumstances and opportunities change, new funding programs announced and the success of current and future grant applications are confirmed. Reference to the Plan will be made in Monthly Financial Management Reports to Council.

8.2 Financial resources

The following table summarises the key financial results for the next four years as set out in the SRP for years 2014/15 to 2017/18. Appendix A includes a more detailed analysis of the financial resources to be used over the four year period.

	Forecast Actual	Budget	Strategic Resource Plan Projections			Trend
Indicator	2013/14	2014/15	2015/16	2016/17	2017/18	+/o/-
	$’000	$’000	$’000	$’000	$’000
Surplus/(deficit) for the year	21,665	949	1,956	2,290	2,818	+
Adjusted underlying result	(9,102)	(5,140)	(2,186)	(1,852)	(1,324)	+
Cash and investments balance	(4,146)	15	2,278	5,845	9,996	+
Cash flow from operations	38,587	8,774	8,780	9,879	10,463	+
Capital works expenditure	46,926	7,783	6,000	6,000	6,000	o

Key to Forecast Trend:

+ Forecasts improvement in Council's financial performance/financial position indicator

o Forecasts that Council's financial performance/financial position indicator will be steady

- Forecasts deterioration in Council's financial performance/financial position indicator

The following graph shows the general financial indicators over the four year period.

The key outcomes of the SRP are as follows:

· Financial sustainability (section 5) – Councils cash position will improve over the life of the plan, which indicates a balanced budget on a cash basis in each year

· Rating levels (section 9) –Rate increases are forecast over the four years at an average of 6.0%, as well as full cost recovery for kerbside garbage and recycling charges.

· Borrowing strategy (section 10) – Borrowings are forecast to increase to $7.0 million in 2014/15 with an interest only period of five years.

· Service Reviews (section 10) - Reviews of services will result in budget savings of $1.28 million in 2014/15 and $3.35 million in subsequent years.

8.3 Financial performance indicators

The following table highlights Council’s current and projected performance across a range of key financial performance indicators. These indicators provide a useful analysis of Council’s financial position and performance and should be used in the context of the organisation’s objectives.

Indicator	Measure	Notes	Forecast Actual	Budget	Strategic Resource Plan Projections			Trend
Indicator	Measure	Notes	2013/14	2014/15	2015/16	2016/17	2017/18	+/o/-
*Operating position*
Adjusted underlying result	Adjusted underlying surplus (deficit) / Adjusted underlying revenue	1	-55.8%	-26.7%	-11.0%	-9.0%	-6.2%	+
*Liquidity*
Working Capital	Current assets / current liabilities	2	-35.1%	29.3%	98.9%	199.1%	311.8%	+
Unrestricted cash	Unrestricted cash / current liabilities		-68.8%	-23.9%	58.8%	157.7%	269.5%	+
*Obligations*
Loans and borrowings	Interest bearing loans and borrowings / rate revenue	3	9.4%	62.9%	57.8%	54.7%	51.8%	-
Loans and borrowings	Interest and principal repayments on interest bearing loans and borrowings / rate revenue		6.6%	10.1%	4.5%	2.6%	2.5%	+
Indebtedness	Non-current liabilities / own source revenue		13.6%	69.3%	65.7%	62.3%	59.1%	-
Asset renewal	Asset renewal expenses / depreciation	4	600.8%	52.4%	81.8%	81.8%	81.9%	o
*Stability*
Rates concentration	Rate revenue / adjusted underlying revenue	5	64.1%	59.6%	60.9%	62.1%	62.8%	o
Rates effort	Rate revenue / CIV of rateable properties in the municipality		0.9%	0.9%	1.0%	1.0%	1.1%	o
*Efficiency*
Expenditure level	Total expenditure / no. of property assessments		$4,100	$3,920	$3,530	$3,570	$3,620	+
Revenue level	Residential rate revenue / No. of residential property assessments		$733	$765	$801	$841	$888	-
Workforce turnover	No. of permanent staff resignations & terminations / average no. of permanent staff for the financial year		15%	18%	15%	10%	10%

Key to Forecast Trend:

+ Forecasts improvement in Council's financial performance/financial position indicator

o Forecasts that Council's financial performance/financial position indicator will be steady

- Forecasts deterioration in Council's financial performance/financial position indicator

Notes to indicators

1 Adjusted underlying result – An indicator of the sustainable operating result required to enable Council to continue to provide core services and meet its objectives. Improvement in financial performance expected over the period, although continued losses means reliance on debt in the short to medium term. A negative result indicates that insufficient revenue is being generated to fund operations and asset renewal.

2 Working Capital – The proportion of current liabilities represented by current assets. Working capital is forecast to improve significantly in 2014/15 year due to the taking of a loan. The trend in later years is to continually improve. A result less than 100% indicates there is insufficient current assets to cover liabilities.

3 Debt compared to rates - Trend indicates Council's initial reliance on debt to manage its cash position. A figure greater than 60% is generally considered there is risk over councils ability to repay debt from own-source revenue.

4 Asset renewal - This percentage indicates the extent of Council's renewals against its depreciation charge (an indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are being renewed and future capital expenditure will be required to renew assets. The recent injection of works due to flood recovery means council can manage a lower level in the short term. This trend should be reversed in future years.

5 Rates concentration - Reflects extent of reliance on rate revenues to fund all of Council's on-going services. Trend indicates Council will continue to be reliant on rate revenue compared to all other revenue sources.

8.4 Non-financial resources

In addition to the financial resources to be consumed over the planning period, Council will also consume non-financial resources, in particular human resources. A summary of Council’s anticipated human resources requirements for the 2014/15 year is shown below and further detail is included in section 4.3.1 of this budget. A statement of Human Resources is included in Appendix A.

	Forecast Actual	Budget	Strategic Resource Plan Projections
Indicator	2013/14	2014/15	2015/16	2016/17	2017/18
Employee costs ($'000)
- Operating	10,107	10,135	9,029	9,255	9,486
- Capital	300	235	250	250	250
Total	10,407	10,370	9,279	9,505	9,736
Employee numbers (EFT)	138	133.6	115	115	115

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

9. Rating information

This section contains information on Council’s past and foreshadowed rating levels along with Council's rating principles and the impact of changes in property valuations.

9.1 Rating context

In developing the Strategic Resource Plan (referred to in Section 8.), rates and charges were identified as an important source of revenue, accounting for 64% of the total revenue received by Council annually. Planning for future rate increases has therefore been an important component of the Strategic Resource Planning process. The level of required rates and charges has been considered in this context, with reference to Council's other sources of income and the planned expenditure on services and works to be undertaken for the Victorian community.

However, it has also been necessary to balance the importance of rate revenue as a funding source with community sensitivity to increases. To ensure that deliberations about future rate increases have been made on an informed basis, comparisons of rating levels were made between Council and other similar sized councils. The following table shows a comparison of the last five years and the average rates per capita for the 2013/14 year.

The following selective benchmarking is based on comparing Buloke Shire with like size Councils in terms of population and geographic character.

Council	Rates as % of Total Revenue	Mun. Charge $	Garbage Charge $	Total Rev from Garbage Charge $	Rates per capita $	Rates per Assess. $	Rates per sq km. $
Buloke	64%	130	255	850,000	1,642	1,683	1,309
Hindmarsh	43%	176	266	699,000	1,189	1,362	915
Loddon	40%	178	277	843,000	1,157	1,133	1,290
Pyrenees	40%	Nil	257	844,000	1,148	1,325	2,237
Towong	59%	230	383	987,000	1,118	1,413	987
Wimmera	40%	121	243	318,000	1,418	1,296	662
Yarriambiack	52%	60	411	902,000	1,411	1,465	1,368
Average	48%	149	299	778,000	1,298	1,382	1,252

Benchmarking Observations

When benchmarked with the six small rural Councils deemed similar in terms of population and geographic area and nature, the following broad observations result:

· Buloke is significantly more reliant on rates and charges revenue as a % of total revenue than all the other Councils and is 16% above the base average

· Buloke’s municipal charge is the third lowest of the seven benchmarked Councils and is 13% below the base average

· Buloke’s garbage charge is the second lowest and is 15% below the base average

· Buloke has the highest ‘rates per capita’ and is 27% higher than the base average

· Buloke has the highest ‘rates per assessment’ and is 22% higher than the base average

· Buloke has the second highest ‘rates per sq. km’ and is 5% higher than the base average.

It can be concluded that Buloke Shire ratepayers are at the higher end of comparative rate payments but pay below the base averages for both the municipal charge and garbage charges.

9.2 Current year rate

To achieve future revenue growth while containing costs in order to achieve an almost breakeven operating position by 2017/18 as set out in the Strategic Resource Plan. The $1.6 million contribution from operations toward capital investment for the 2014/15 year is also much less than the desired levels, unless it can be increased, it will be difficult to maintain robust capital works programs in the future.

In order to achieve these objectives and be able to generate enough cash for capital works, the general rate will increase by a 6.0%, the municipal charge by 15.3%, the kerbside waste and recyclable collection charge by 49%. This will raise total rate and charges for 2014/15 of $11.45 million. Council’s kerbside waste and and recycling charges have increased by more than the general rate due to a review of the charge levels against the cost to deliver the service.

The following table sets out future proposed increases in rates and charges and the total rates to be raised, based on the forecast financial position of Council as at 30 June 2014.

	General Rate	Municipal Charge	Garbage Charge	Total Rates
Year	Increase	Increase	Increase	Raised
	%	%	%	$’000
2013/14	6.0	30.0	6.3	10,446
2014/15	6.0	15.4	49.0	11,453
2015/16	6.0	6.0	2.5	12,102
2016/17	6.0	6.0	2.5	12,788
2017/18	6.0	6.0	2.5	13,515

9.3 Rating structure

Council has established a rating structure which is comprised of three key elements. These are:

· Property values, which form the central basis of rating under the Local Government Act 1989

· A 'user pays' component to reflect usage of certain services provided by Council

· A fixed municipal charge per property to cover some of the administrative costs of the Council.

Striking a proper balance between these elements provides equity in the distribution of the rate burden across residents.

Council makes a further distinction within the property value component of rates based on the purpose for which the property is used, that is, whether the property is used for residential or commercial or farming purposes.

Council has determined to apply a Capital Improved Value (CIV) basis on the grounds that it provides the most equitable distribution of rates across the municipality. There are currently no plans to change that basis, but Council does review its rating structure every four years.

The existing rating structure comprises three differential rates (residential, commercial and farm). These rates are structured in accordance with the requirements of Section 161 ‘Differential Rates’ of the Act.

The following principles have been applied to the development of Council’s rates:

1. The 2014 Revaluation will be used for rating purposes in 2014/15.

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

3. An increase in revenue from rates in 2014/15 of 6%.

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 6.5% 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 increased 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.

The following table summarises the rates to be determined for the 2014/15 year. A more detailed analysis of the rates to be raised is contained in Appendix B ‘Statutory Disclosures’.

Rate type	How applied	2013/14	2014/15	Change
Residential rates	Cents in $ of CIV	0.007621	0.007606	-0.2%
Commercial rates	Cents in $ of CIV	0.007621	0.007606	-0.2%
Farm rates	Cents in $ of CIV	0.007469	0.007455	-0.2%
Municipal charge	$ per property	$130	$150	15.3%
Kerbside collection charge	$ per property	$255	$380	49%

9.4 General revaluation of properties

During the 2013/14 year, a revaluation of all properties within the municipality was carried out and will apply from 1 January 2014 for the 2014/15 year. The outcome of the general revaluation has been an increase in property valuations throughout the municipality. Overall, property valuations across the municipal district have increased by 5%.

Catagory	CIV 2013/14 $’000	CIV 2014/15 $’000	CIV Change (Decrease)
Average Residential	291,475	305,700	4.9%
Average Commercial	70,810	77,213	9.0%
Average Farm	840,432	885,497	5.4%
Average total	1,202,717	1,268,410	5.5%

In view of the outcomes of the general revaluation of all properties within the Council’s municipal district during the 2013/14 year, Council has chosen not to make any changes to the existing rate differential. In aggregate total rates and charges will increase by 6.0% compared to 2013/14. This will be achieved by reducing the rate in the dollar to offset the 5.5% increase in property valuations across the municipal district following the general revaluation.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Budgeted Balance Sheet

For the four years ending 30 June 2018

	Forecast Actual	Budget	Strategic Resource Plan
			Projections
	2014	2015	2016	2017	2018
	$’000	$’000	$’000	$’000	$’000
Assets
Current assets
Cash and cash equivalents	(4,146)	15	2,278	5,845	9,996
Trade and other receivables	1,210	1,223	1,208	1,236	1,281
Financial assets	0	0	0	0	0
Inventories	0	0	0	0	0
Other assets	151	151	151	151	151
Total current assets	(2,785)	1,389	3,637	7,232	11,428

Non-current assets
Trade and other receivables	0	0	0	0	0
Investments in regional library corporation	186	186	186	186	186
Property, infrastructure, plant & equipment	180,772	181,335	179,986	178,639	177,292
Investment property	0	0	0	0	0
Intangible assets	0	0	0	0	0
Total non-current assets	180,958	181,521	180,172	178,825	177,478
Total assets	178,173	182,910	183,809	186,057	188,906

Liabilities
Current liabilities
Trade and other payables	4,649	2,219	1,364	1,322	1,355
Trust funds and deposits	116	116	116	116	116
Provisions	2,194	2,194	2,194	2,194	2,194
Interest-bearing loans and borrowings	985	203	0	0	0
Total current liabilities	7,944	4,732	3,674	3,632	3,665

Non-current liabilities
Provisions	1,535	1,535	1,535	1,535	1,535
Interest-bearing loans and borrowings	0	7,000	7,000	7,000	7,000
Total non-current liabilities	1,535	8,535	8,535	8,535	8,535
Total liabilities	9,479	13,267	12,209	12,167	12,200
Net assets	168,694	169,643	171,599	173,889	176,706

Equity
Accumulated surplus	82,647	83,596	85,552	87,842	90,659
Reserves	86,047	86,047	86,047	86,047	86,047
Total equity	168,694	169,643	171,599	173,889	176,706

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Budgeted Statement of Changes in Equity

For the four years ending 30 June

	Total	Accumulated Surplus	Revaluation Reserve	Other Reserves
	$’000	$’000	$’000	$’000
2015
Balance at beginning of the financial year	168,694	82,647	86,047	0
Adjustment on change in accounting policy	-	-	-	-
Comprehensive result	949	949	-
Net asset revaluation increment(decrement)	-	-	-	-
Impairment losses on revalued assets	-	-	-	-
Reversal of impairment losses on revalued assets	-	-	-	-
Transfer to reserves	-	-	-	-
Transfer from reserves	-	-	-	-
Balance at end of the financial year	169,643	83,596	86,047	0

2016
Balance at beginning of the financial year	169,643	83,596	86,047	0
Adjustment on change in accounting policy	-	-	-	-
Comprehensive result	1,956	1,956	-	-
Net asset revaluation increment(decrement)	-	-	-	-
Impairment losses on revalued assets	-	-	-	-
Reversal of impairment losses on revalued assets	-	-	-	-
Transfer to reserves	-	-	-	-
Transfer from reserves	-	-	-	-
Balance at end of the financial year	171,599	85,552	86,047	0

2017
Balance at beginning of the financial year	171,599	85,552	86,047	0
Adjustment on change in accounting policy	-	-	-	-
Comprehensive result	2,290	2,290	-	-
Net asset revaluation increment(decrement)	-	-	-	-
Impairment losses on revalued assets	-	-	-	-
Reversal of impairment losses on revalued assets	-	-	-	-
Transfer to reserves	-	-	-	-
Transfer from reserves	-	-	-	-
Balance at end of the financial year	173,889	87,842	86,047	0

2018
Balance at beginning of the financial year	173,889	87,842	86,047	0
Adjustment on change in accounting policy	-	-	-	-
Comprehensive result	2,818	2,818	-	-
Net asset revaluation increment(decrement)	-	-	-	-
Impairment losses on revalued assets	-	-	-	-
Reversal of impairment losses on revalued assets	-	-	-	-
Transfer to reserves	-	-	-	-
Transfer from reserves	-	-	-	-
Balance at end of the financial year	176,706	90,659	86,047	0

Budgeted Statement of Cash Flows

For the four years ending 30 June 2018

	Forecast Actual	Budget	Strategic Resource Plan
			Projections
	2013/14	2014/15	2015/16	2016/17	2017/18
	$’000	$’000	$’000	$’000	$’000
	Inflows	Inflows	Inflows	Inflows	Inflows
	(Outflows)	(Outflows)	(Outflows)	(Outflows)	(Outflows)
Cash flows from operating activities
Rates and charges	10,400	11,440	12,103	12,768	13,485
Statutory fees and fines	87	115	86	88	90
User fees	727	712	762	780	799
Contributions	589	132	132	132	132
Grants - operating	3,944	6,665	6,682	6,682	6,849
Grants - capital	40,350	5,969	4,000	4,000	4,000
Interest	70	50	53	56	59
Other receipts	338	339	198	182	179
Net GST refund / payment	0	0	0	0	0
Employee costs	(10,418)	(10,134)	(9,566)	(9,281)	(9,466)
Materials and consumables	(6,626)	(5,785)	(4,874)	(4,752)	(4,870)
External contracts	0	0	0	0	0
Utilities	0	0	0	0	0
Other payments	(874)	(729)	(796)	(776)	(795)
Net cash provided by operating activities	38,587	8,774	8,780	9,879	10,463

Cash flows from investing activities
Payments for property, infrastructure, plant and equipment	(44,146)	(10,465)	(6,000)	(6,000)	(6,000)
Proceeds from sale of property, infrastructure, plant and equipment	24	10	25	25	25
Trust funds and deposits	0	0	0	0	0
Repayment of loans and advances	(1,582)	0	0	0	0
Net cash used in investing activities	(45,704)	(10,455)	(5,975)	(5,975)	(5,975)

Cash flows from financing activities
Finance costs	(130)	(376)	(339)	(337)	(337)
Proceeds from borrowings	1,550	7,000	0	0	0
Repayment of borrowings	(565)	(782)	(203)	0	0
Net cash provided by (used in) financing activities	855	5,842	(542)	(337)	(337)
Net (decrease) increase in cash and cash equivalents	(6,262)	4,161	2,263	3,567	4,151
Cash and cash equivalents at beginning of the financial year	2,116	(4,146)	15	2,278	5,845
Cash and cash equivalents at end of the financial year	(4,146)	15	2,278	5,845	9,996

Budgeted Statement of Capital Works

For the four years ending 30 June 2018

	Forecast Actual		Budget	Strategic Resource Plan
				Projections
	2013/14	2014/15			2015/16	2016/17	2017/18
	$’000	$’000			$’000	$’000	$’000
Property
Land	0	0			0	0	0
Land improvements	0	0			0	0	0
Total land	0	0			0	0	0
Buildings	2,766	2,703			0	0	0
Building improvements	0	0			700	700	700
Leasehold improvements	0	0			0	0	0
Heritage buildings	0	0			300	300	300
Total buildings	2,766	2,703			1,000	1,000	1,000
Total property	2,766	2,703			1,000	1,000	1,000
Plant and equipment
Plant, machinery and equipment	740	760			760	760	760
Fixtures, fittings and furniture	364	150			150	150	150
Computers and telecommunications	0	0			500	500	500
Heritage plant and equipment	0	0			0	0	0
Library books	0	0			0	0	0
Total plant and equipment	1,104	910			1,410	1,410	1,410
Infrastructure
Roads	42,762	1,494			3,590	3,590	3,590
Bridges	158	485			0	0	0
Footpaths and cycleways	0	94			0	0	0
Drainage	0	1,675			0	0	0
Recreational, leisure and community facilities	0	0			0	0	0
Waste management	73	190			0	0	0
Parks, open space and streetscapes	0	0			0	0	0
Aerodromes	0	10			0	0	0
Off street car parks	0	0			0	0	0
Other infrastructure	63	222			0	0	0
Total infrastructure	43,056	4,170			3,590	3,590	3,590
Total capital works expenditure	46,926	7,783			6,000	6,000	6,000

Represented by:
New asset expenditure	1,131	2,042			0	0	0
Asset renewal expenditure	45,527	4,085			6,000	6,000	6,000
Asset expansion expenditure	0	0			0	0	0
Asset upgrade expenditure	268	1656			0	0	0
Total capital works expenditure	46,926	7,783			6,000	6,000	6,000

Budgeted Statement of Human Resources

For the four years ending 30 June 2018

	Forecast Actual	Budget	Strategic Resource Plan
			Projections
	2013/14	2014/15	2015/16	2016/17	2017/18
	$’000	$’000	$’000	$’000	$’000
Staff expenditure
Employee costs - operating	10,107	10,135	9,029	9,255	9,486
Employee costs - capital	300	235	250	250	250
Total staff expenditure	10,407	10,370	9,279	9,505	9,736

	EFT	EFT	EFT	EFT	EFT
Staff numbers
Total staff numbers	138	133.6	115	115	115

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Appendix B

Rates and charges

This appendix presents information about rates and charges which the Act and the Regulations require to be disclosed in the Council’s annual budget.

Rates and charges

1. Rates and charges

1.1 The rate in the dollar to be levied as general rates under section 158 of the Act for each type or class of land compared with the previous financial year

Type or class of land	2013/14	2014/15
Type or class of land	cents/$CIV	cents/$CIV	Change
General rate for rateable residential properties	0.007621	0.007606	-0.2%
General rate for rateable commercial properties	0.007621	0.007606	-0.2%
General rate for rateable farming properties	0.007469	0.007455	-0.2%

1.2 The estimated total amount to be raised by general rates in relation to each type or class of land, and the estimated total amount to be raised by general rates, compared with the previous financial year

Type or class of land	2013/14	2014/15
Type or class of land	$	$	Change
Residential	2,221,551	2,325,280	4.7%
Commercial	540,380	587,312	8.7%
Farming	6,275,341	6,601,408	5.2%
Total amount to be raised by general rates	9,037,272	9,514,000	5.3%

1.3 The number of assessments in relation to each type or class of land, and the total number of assessments, compared with the previous financial year

Type or class of land	2013/14	2014/15
Type or class of land	$	$	Change
Residential	2,881	2,881	0
Commercial	453	451	-2
Farming	2,850	2,854	3
Total number of assessments	6,184	6,186	2

1.4 The basis of valuation to be used is the Capital Improved Value (CIV)

1.5 The estimated total value of each type or class of land, and the estimated total value of land, compared with the previous financial year

Type or class of land	2013/14	2014/15	Change
Type or class of land	$	$
Residential	291,475,800	305,700,600	4.9%
Commercial	70,810,600	77,212,900	9.0%
Farming	840,432,250	885,497,200	5.4%
Total value of land	1,202,718,650	1,268,410,700	5.5%

1.6 The municipal charge under section 159 of the Act compared with the previous financial year

	Per Rateable Property	Per Rateable Property
Type of Charge	2013/14	2014/15	Change
	$	$
Municipal	130	150	15.4%

1.7 The estimated total amount to be raised by municipal charges compared with the previous financial year

Type of Charge	2013/14	2014/15	Change
Type of Charge	$	$
Municipal	569,671	657,000	15.3%

1.8 The rate or unit amount to be levied for each type of service rate or charge under section 162 of the Act compared with the previous financial year

	Per Rateable Property	Per Rateable Property
Type of Charge	2013/14	2014/15	Change
	$	$
Kerbside Garbage & Recycling collection	255	380	49.0%

1.9 The estimated total amount to be raised by each type of service rate or charge, and the estimated total amount to be raised by service rates and charges, compared with the previous financial year

Type of Charge	2013/14	2014/15	Change
Type of Charge	$	$
Kerbside Garbage & Recycling collection	852,432	1,282,120	50.4%

1.10 The estimated total amount to be raised by the General rates and municipal charges compared with the previous financial year

	2013/14	2014/15	Change
	$	$
Rates and municipal charges	9,606,943	10,171,000	6.0%

1.11 The estimated total amount to be raised by all rates and charges compared with the previous financial year

	2013/14	2014/15	Change
	$	$
Rates and all charges	10,459,375	11,453,120	9.5%

1.12 Any significant changes that may affect the estimated amounts to be raised by rates and charges

There are no known significant changes which may affect the estimated amounts to be raised by rates and charges.

2. Differential rates

2.1 Rates to be levied

· A general rate of 0.007606% (0.007606 cents in the dollar of CIV) for all rateable residential and business properties; and

· A concession rate of 0.007455% (0.007455 cents in the dollar of CIV) for all rateable farm properties.

· Each differential rate will be determined by multiplying the Capital Improved Value of rateable land (categorised by the characteristics described below) by the relevant percentages indicated above.

Council believes each differential rate will contribute to the equitable and efficient carrying out of council functions. Details of the objectives of each differential rate, the types of classes of land which are subject to each differential rate and the uses of each differential rate are set out below.

2.2 Business land.

Business land is any land which is:

· Occupied for the principal purpose of carrying out the manufacture or production of, or trade in, goods or services or

· Unoccupied but zoned commercial or industrial under the Buloke Shire Planning Scheme.

The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including (but not limited to) the:

· Construction and maintenance of infrastructure assets

· Development and provision of health and community services

· Provision of general support services.

The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.

The money raised by the differential rate will be applied to the items of expenditure described in the Budget by Council. The level of the rate for land in this category is considered to provide for an appropriate contribution to Council’s budgeted expenditure, having regard to the characteristics of the land.

The geographic location of the land within this differential rate is wherever it is located within the municipal district, without reference to ward boundaries.

The use of the land within this differential rate, in the case of improved land, is any use of land.

The characteristics of planning scheme zoning are applicable to the determination of vacant land which will be subject to the rate applicable to commercial land. The vacant land affected by this rate is that which is zoned commercial and/or industrial under the Shire of Buloke Planning Scheme. The classification of land which is improved will be determined by the occupation of that land, and have reference to the planning scheme zoning.

The types of buildings on the land within this differential rate are all buildings already constructed on the land or which will be constructed prior to the expiry of the 2013/14 financial year.

2.3 Residential land

Residential land is any land, which is:

· Occupied for the principal purpose of physically accommodating persons or

· Unoccupied but zoned residential under the Shire of Buloke Planning Scheme and which is not commercial land.

· Construction and maintenance of infrastructure assets

· Development and provision of health and community services

· Provision of general support services.

The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.

The geographic location of the land within this differential rate is where it is located within the municipal district, without reference to ward boundaries.

The use of the land within this differential rate, in the case of improved land, is any use of land.

The characteristics of planning scheme zoning are applicable to the determination of vacant land which will be subject to the rate applicable to residential land. The vacant land affected by this rate is that which is zoned residential under the Buloke Shire Council Planning Scheme. The classification of land which is improved will be determined by the occupation of that land, and have reference to the planning scheme zoning.

The types of buildings on the land within this differential rate are all buildings already on the land or which will be constructed prior to the expiry of the 2013/14 financial year.

2.4 Farm Land

Farm land is any rateable land:

· That is not less than 2 hectares in area;

· That is used primarily for grazing (including agistment), dairying, pig-farming, poultry farming, fish farming, tree farming, bee keeping, viticulture, horticulture, fruit growing or the growing of crops of any kind or any combination of those activities; and that is used by a business;

· That has significant and substantial commercial purpose or character;

· That seeks to make a profit on a continuous or repetitive basis from its activities on the land;

The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.

· Construction and maintenance of infrastructure assets;

· Development and provision of health and community services;

· Provision of general support services;

· To maintain agriculture as a major industry in the municipal district; and,

· To ensure that the concessional rate in the dollar declared for defined Farm Land properties is fair and equitable, having regard to the cost of provision of Council services, and the level of benefits derived from expenditures made by Council on behalf of the farm sector.

The geographic location of the land within this differential rate is where it is located within the municipal district, without reference to ward boundaries.

The use of the land within this differential rate, in the case of improved land, is any use of land.

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Capital works program

For the year ending 30 June 2015

						FUNDING SOURCE
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW	EXPANSION	GRANTS		COUNCIL FUNDS
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW	EXPANSION	GRANTS	COMMUNITY CONTRIBUTION	COUNCIL FUNDS
	$	$	$	$		$	$	$
LAND & BUILDINGS
Community Facilities
Local Government Infrastructure Program						461,000		-461,000
Hall Renewal Project	400,000	400,000				300,000		100,000
Essential Services Upgrades - Donald, Sea Lake, Birchip Recreation Reserves	100,000	100,000						100,000

Swimming Pools
Wycheproof Pool - Fit stainless steel ladders	3,000	3,000						3,000
Pool Blankets Berri, Watchem, Wyche, Birchip & Sea Lake Pools	95,000			95,000		55,000		40,000
Connect Backwash lines to sewer Stage 1 (Charl, Don, Wyche, Bir Pools)	20,000		20,000					20,000
Disinfectant upgrades Berriwillock & Watchem Pools (Worksafe)	35,000		35,000					35,000
Municipal Offices
Records Shed Roof Replacement	9,000	9,000						9,000

Sports Facilities/Parks and Gardens
Birchip Community Gym Upgrade	66,000			66,000		44,000	22,000	0
Wooroonook Lakes Safety Upgrade	6,162			6,162		1,742		4,420
Park Furniture (across shire)	10,000	10,000						10,000
Park watering systems (across shire)	20,000	20,000						20,000

								FUNDING SOURCE
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE			NEW	EXPANSION	GRANTS			COUNCIL FUNDS
									COMMUNITY CONTRIBUTION
	$	$	$			$		$	$		$

Other Council Buildings/Infrastructure
Street Light Sustainability Upgrade	55,000	55,000								55,000

Sub-Total - Land & Buildings	819,162	597,000		55,000	167,162		0	861,742	22,000	-64,580

FURNITURE, IT & EQUIPMENT
IT & Equipment replacement	150,000	150000								150,000

Sub-Total - Furn & Equip	150,000	150,000		0	0			0	0	150,000

PLANT & MACHINERY
Heavy Plant Replacement	600,000	600,000								600,000
Light Fleet Replacement	150,000	150,000								150,000
Small Plant	10,000	10,000								10,000

Sub-Total - Plant & Machinery	760,000	760,000		0	0		0	0	0	760,000

INFRASTRUCTURE
Roads - Sealing
Country Roads and Bridges								1,000,000		-1,000,000
Roads to Recovery								1,000,000		-1,000,000
Road Reseal Program	330,000	330,000								330,000
Major Patch Program	100,000	100,000								100,000

							FUNDING SOURCE
ASSET DESCRIPTION	TOTAL	RENEWAL		UPGRADE	NEW	EXPANSION	GRANTS			COUNCIL FUNDS
								COMMUNITY CONTRIBUTION
	$	$		$	$		$	$		$

Roads - Resheets
Thompsons Rd (Watchem West) (ch. 2,640-3,685)	35,324		35,324						35,324
Towerhill Road (Donald) (ch. 1,360-2,355)	17,792		17,792						17,792
South Boundary Road (Birchip) (ch. 3140 - 7,925)	125,876		125,876						125,876
Farrells Road (Watchupga) (ch. 4,025 - 5235)	34,998		34,998						34,998
Spicers Road (Birchip) (ch. 0.0 - 3,416)	92,062		92,062						92,062
Gormons Road (Sea Lake) (ch.0.0 - 1.990)	62,307		62,307						62,307

Roads - Shoulder Resheets
Culgoa Lalbert Road (Culgoa) (ch. 15,400-16,200)	25,500		25,500						25,500
Nullawil Lalbert Road (Nullawil) (ch. 2,735-6,655)	95,706		95,706						95,706
Wilkur Watchupga Road (Birchip) (ch. 26755-31,019)	84,421		84,421						84,421
Sheephills Road (Donald) (Tysons Rd - Davidsons Rd)	132,599		132,599						132,599
Berriwillock - Woomelang Road (Berriwillock) (ch. 12330 - 28875)	357,600		357,600						357,600

Footpaths
Howard Ln, Sea Lake (45m) Apex Park Toilets	8,000		8,000						8,000
Mudge St, Sea Lake (298m) Kinda to Hannon st	52,000		52,000						52,000
Lewis St, Donald	22,000		22,000						22,000
Broadway West, Wycheproof (70m)	12,000		12,000						12,000

Kerb and Channel
Broadway, Wycheproof (135m) - Corack St to Elders	50,000		50,000						50,000
Hoban St Watchem (125m) P/O to Park	37,500		37,500						37,500

							FUNDING SOURCE
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW		EXPANSION	GRANTS		COUNCIL FUNDS
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW		EXPANSION	GRANTS	COMMUNITY CONTRIBUTION	COUNCIL FUNDS
	$	$	$	$			$	$	$

Bridges, Culverts, Pumps and Drainage
Charlton Stormwater Re-use Upgrade	85,000		85,000						85,000
Watchupga Culgoa Bridge	400,000	400,000							400,000

Waste Management
New Landfill Cells (annual)	75,000				75,000				75,000
Landfill Rehabilitation (annual)	50,000	50,000							50,000
Wycheproof Transfer Station- Develop Plans (stage 1)	25,000		25,000						25,000
Landfill Access Track Upgrades	20,000	20,000							20,000
Charlton Landfill fence upgrade (stage 2)	20,000	20,000							20,000

Saleyards
Upgrade Ramps	25,000	25,000							45,000
Saleyard Kitchen Upgrade	20,000	20,000							20,000
Fence and gate renewal	35,000	35,000							35,000
Sprinkler upgrade	6,000	6,000							6,000
Saleyards and Truck wash Signage upgrade	7,500	7,500							7,500
Killing yard fence extension	2,500	2,500							2,500
Gravel kiosk area	2,500	2,500							2,500

Aerodromes
Gable markers and cone replacement	10,000	10,000							10,000

						FUNDING SOURCE
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW	EXPANSION	GRANTS		COUNCIL FUNDS
ASSET DESCRIPTION	TOTAL	RENEWAL	UPGRADE	NEW	EXPANSION	GRANTS	COMMUNITY CONTRIBUTION	COUNCIL FUNDS
	$	$	$	$		$	$	$

Other
Gravel Pit Restoration	25,000	25,000						25,000
Charlton Flood Study - Levee Detailed Design	250,000			250,000		225,000		25,000
Charlton Flood Study - St Arnaud Road Floodway	500,000			500,000		500,000		0
Donald Flood Study - Levee Development stage 1.	925,000			925,000		832,500		92,500
Watchem Township Signs	3,000	3,000						3,000
Shire Entrance signs	7,500	7,500						7,500


Sub-Total - Infrastructure	4,169,685	2,309,685	110,000	1,750,000		3,557,500	0	612,185

GRAND TOTAL NEW WORKS	5,898,847	3,816,685	165,000	1,917,162	0	4,419,242	22,000	1,457,605


WORKS CARRIED FORWARD FROM 2013/14
Community Facilities

Donald Family Services Centre	1,490,600		1,490,600			1,371,000		119,600
Birchip Bowling Green Redevelopment	240,000	240,000				240,000
Charlton Park 2020 Design Services	25,000			25,000		25,000
Charlton Skate Park	100,000			100,000		60,000		40,000
Wycheproof Centenary Park Shade Structure	28,000	28,000						28,000

Sub-Total - Carried Forward from 2013/14	1,883,600	268,000	1,490,600	125,000	0	1,696,000	0	187,600

GRAND TOTAL ALL WORKS	7,782,447	4,084,685	1,655,600	2,042,162	0	6,115,242	22,000	1,645,205

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

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 2014/15 year.

VENUE HIRE - PUBLIC HALLS

No increase in fees for 2014/15

Events or Groups defined by the following categories will be eligible to have hire fees waived:

· Ceremonies held in recognition of Australia Day or Anzac Day.

· Community Groups - community based non- for-profit organisation or association of persons where open membership and participation in activities is encouraged. A community group may take part in profit-making activities, but the surplus is reinvested in pursuit of the group’s goals. A community group may be:

o An organisation whose primary aim is to provide services and benefits to the community (e.g. Lions Clubs, Community forums, Business Networks, Schools, Health Related services and Sporting Clubs)

o Special interest or advocacy groups for particular sections of the community (e.g. Senior Citizens, Probus, Red Cross). This does not include political parties or groups

o A group of people having a shared ethnic, cultural or religious identity

o Neighbourhood or shared interest groups

*(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

Regular Hire: 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: Those who undertake activities for the purpose of generating a profit.

Private/Individual hirers: Those who undertake activities for the purpose of private events and activities.

WYCHEPROOF SALEYARDS


*Wycheproof Saleyards*	*2013/2014*	*2014/2015*

Yard Fees	0.6% of gross sales turnover	0.8% of gross sales turnover
Agent's Fees	12% of yard fees	13% of yard fees
Truck Wash	$24.00	$25.00
Key Deposit (Avdata) Refunded on return of keys	$24.00	$25.00
Water Usage	$0.80 per minute	$0.80 per minute

COMMUNITY BUS HIRE

Bus Fees

2013/2014

2014/2015

Hire rate per day or part thereof

$14.00

Plus 90 cents per kilometre travelled

$0.90

STAND PIPES

Stand Pipes

2013/2014

2014/15

$5.00 per 1,000 litres or

part there of

$10.00 per 1,000 litres or part there of

ANIMAL CONTROL

Dog and Cat Registration Fees **Since May 2007 Council can only register animals that have been micro chipped*	*2013/2014*	*2014/2015*
Dog or Cat (Not Micro chipped or Desexed – only relevant to animals registered prior to May 2007)	$60.00	$90.00
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	$30.00
Cats (Micro chipped plus one or more of the following – desexed, not desexed, over 10 years old or Feline Association member)	$20.00	$30.00
Pensioner Concession (Half price for all dog and cat registration categories)	$10.00	$15.00
Guide dogs, racing dogs (greyhounds), police dogs	No charge	No charge
Replacement lifetime tag/s	No charge	No charge
Registered animals moving to Buloke	No charge	No charge

IMPOUNDED LIVESTOCK

*Release Fees*	*2013/2014*	*2014/2015*
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*	*2013/2014*	*2014/2015*
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*	*2013/2014*	*2014/2015*
1 to 4 days	$55.00	$60.00
For every day in excess of 4 days (maximum 8 days)	$11.00	$12.00
*Impounded Vehicles and Caravans – per vehicle*	*2013/2014*	*2014/2015*
Release fee (plus towing fee incurred)	$153.00	$175.00
*Impounded Goods – including signage and street furniture - per lot*	*2013/2014*	*2014/2015*
Release fee (plus any associated costs)	No charge	$175.00

SUNDRY DEBTORS

*Hire of Council equipment and operator where local service alternatives are not available.*	*2013/2014*	*2014/2015*
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*	*2013/2014*	*2014/2015*
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.	$255.00	$380.00
Optional additional 240L bin for recycling	$75.00 per bin	$80.00
*Landfill*	*2013/2014*	*2014/2015*
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	$10.00
6 x 4 Trailer Load/Ute Load up to 1 cubic metre	$17.00	$19.00
Tandem Trailer up to 2 cubic metres	$34.00	$36.00
Wheelie bin 120L	$5.00	$6.00
Wheelie bin 240L	$5.00	$8.00
General Waste to Landfill per cubic metre	$17.00	$19.00
Commercial Waste	$17.00 per cubic m	$19.00 per cubic m
Builder Waste and Concrete	$17.00 per cubic m	$19.00 per cubic m
Concrete uncontaminated	$17.00 per cubic m	$19.00 per cubic m
Bricks uncontaminated	$17.00 per cubic m	$19.00 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	$10.00	$10.00
Mattresses	$25.00	$30.00

*Tyres*	*2013/2014*	*2014/2015*
Light car tyre	$5.00	$6.00
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*	*2013/2014*	*2014/2015*
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

2013/2014

2014/2015

All fees

No charge

BUILDING FEES AND CHARGES

*Dwellings*	*2013/2014*	*2014/2015*
Building Works - $0 to $2,500	$250.00	$250.00
Building Works - $2,501 to $5,000	$350.00	$350.00
Building Works - $5,000 to $10,000	$450.00	$450.00
Building Works - $10,001 to $20,000	$650.00 plus Levy	$650.00 plus Levy
Building Works - $20,001 to $80,000	$950.00 plus Levy	$950.00 plus Levy
Building Works - $80,001 to $120,000	$1,500.00 plus Levy	$1,500.00 plus Levy
Building Works - $120,001 to $200,000	$value /75 plus Levy	$value /75 plus Levy
Building Works - $200,000 plus	$value /75 plus Levy	$value /75 plus Levy
*Alterations/Additions/Sheds/Carports/Garages*	*2013/2014*	*2014/2015*
New Dwellings - $0 to $120,000	$1,200.00 plus Levy	$1,200.00 plus Levy
New Dwellings - $120,000 to $200,000	$1,500.00 plus Levy	$1,500.00 plus Levy
New Dwellings - $200,000 to $312,000	$1,800.00 plus Levy	$1,800.00 plus Levy
New Dwellings - $312,000 plus	$value /130 plus Levy	$value /130 plus Levy
*Swimming Pools*	*2013/2014*	*2014/2015*
Swimming Pool and Fence – Above Ground	$400.00	$400.00
Swimming Pool and Fence – In-Ground Pool	$800.00	$800.00

Notes:

A $34.00 Lodgement Fee applies to all application for works valued at $5,000 or more.

2014/2015 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.

*Commercial Building Work*	*2013/2014*	*2014/2015*
Commercial Works - $0 to $10,000	$350.00 plus Levy	$350.00 plus Levy
Commercial Works - $10,001 to $20,000	$650.00 plus Levy	$650.00 plus Levy
Commercial Works - $20,001 to $100,000	$value x 1.33% plus $400 plus Levy	$value x 1.33% plus $400 plus Levy
Commercial Works - $100,001 to $500,000	$value x 0.44&% plus $1,200 plus Levy	$value x 0.44&% plus $1,200 plus Levy
Commercial Works - $500,000+	$value x 0.25% plus $2,000 plus Levy	$value x 0.25% plus $2,000 plus Levy
*Multi-Unit Development*	*2013/2014*	*2014/2015*
Units - $0 to $200,000	$1,800.00 plus Levy	$1,800.00 plus Levy
Units - $200,001 to $312,000	$2,000.00 plus Levy	$2,000.00 plus Levy
Units - $312,000+	$value/130 plus Levy	$value/130 plus Levy
*Enforcement*	*2013/2014*	*2014/2015*
Building Notices/Orders (To allow buildings to remain as constructed, without a Building Permit)	Building Permit Fee plus 25%	Building Permit Fee plus 25%

*Miscellaneous Items*	*2013/2014*	*2014/2015*
Fence	$200.00	$200.00
Demolitions or Removals - $0 to $5,000	$350.00	$350.00
Demolitions or Removals - $5,000+	$500.00	$500.00
Re-Erections of Dwellings – Security Deposit	$5,000.00	$5,000.00
Extensions of Time Requests	$100.00	$100.00
Amended Plans	$100.00	$100.00
Information Request Reg. 326 (1) Permit Info, Final Certifications, Current Orders or Notices	Legislative fee	Legislative fee
Information Request Reg. 326 (2) Flooding, Termite, Bushfire, Snowfall, Designated	Legislative fee	Legislative fee
Information Request Reg. 326 (3) Mandatory notification states, Inspection Dates	Legislative fee	Legislative fee
Request for search of Building Permit Plans	$60.00	$60.00
*Report and Consent*	*2013/2014*	*2014/2015*
Planning Authority for Demolition Section 29A of the Act	Legislative fee	Legislative fee
Build Over Council Easement Reg. 310 (1)	Legislative fee	Legislative fee
Report & Consent under Parts 4, 5 or 8	Legislative fee	Legislative fee
Request Legal Point of Discharge for Stormwater Reg. 610 (2)	Legislative fee	Legislative fee
*External Inspection (i.e. Private Building Surveyors)*	*2013/2014*	*2013/2014*
Additional Inspection	$120.00	$120.00
Contract Inspection – Foundations, Reinforcement and Finals	$180.00	$180.00
Contract Inspection – Frame	$200.00	$200.00
Occupancy Permit/Places of Public Entertainment	$200.00	$200.00
Travel Time and Vehicle Costs – (where more than 5km from Donald Office)	$1.00 per km plus $75.00 per hour	$1.00 per km plus $75.00 per hour
*Government Levy (only applies if development value over $10,000)*	*2013/2014*	*2014/2015*
Additional Inspection	$120.00	$120.00

Notes:

® A $34.00 Lodgement Fee applies to all application for works valued at $5,000 or more.

® 2014/2015 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.

ENVIRONMENTAL HEALTH

*Food Act*	*2013/2014*	*2014/2015*
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	$300.00
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	$250.00
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	$80.00
Non Profit Organisations & Community Groups – Food is prepared predominately for consumption by members, or for fundraising activities Service Clubs, mostly Sporting Clubs	$20.00	$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	$20.00 $20.00 $20.00 $40.00
Transfers Fees	50% of the current classed fee both Food & Health Act	50% of the current classed fee both
Transfer Inspection Fee	$75.00	$75.00
*Public Health and Wellbeing Act*	*2013/2014*	*2014/2015*
Hairdresser/Beauty Therapy /Skin Penetration	$80.00	$100.00
Prescribed Accommodation Premises providing accommodation for 5 or more persons including hotels, motels, hostels and camps.	$80.00	$100.00
*Environmental Protection Act*	*2013/2014*	*2014/2015*
Septic Tank ® New ® Alteration to Existing	$200.00 $150.00	$220.00 $150.00

AGED AND DISABILITY SERVICES

*Home and Community Care (HACC)*	*2013/2014*	*2014/2015*
HACC General Home Care A	$2.00	$2.00
HACC General Home Care	$5.50	$6.00
HACC General Home Care B	$7.00	$7.00
HACC General Home Care C	$10.00	$10.00
HACC General Home Care D	No charge	No charge
HACC General Home Care E	$1.00	$1.00
Home Maintenance	$9.00	$10.00
Home Maintenance A	$5.00	$5.00
Home Maintenance B	No charge	No charge
Materials supplied	$10/$15/$20	$10/$15/$20
HACC Personal Care	$4.50	$4.50
HACC Personal Care A	$1.00	$1.00
HACC Personal Care B	No charge	No charge
HACC Respite Care HIGH	$3.50	$4.00
HACC Respite Care HIGH A	$1.00	$1.00
HACC Respite Care HIGH B	No charge	No charge
HACC Respite Care LOW	$3.50	$3.50
HACC Respite Care LOW A	$1.00	$1.00
HACC Respite Care LOW B	No charge	No charge
HACC Meals on Wheels	$7.50	$8.50
HACC Meals on Wheels A	$3.50	$3.50
HACC Meals on Wheels B	No charge	No charge
Meals on Wheels $11 (Full cost recovery)	$11.00	$11.00
*Brokerage*	*2013/2014*	*2014/2015*
General Home Care	$45.10	$55.00
Personal Care	$45.10	$55.00
Home Maintenance	$45.10	$55.00
Respite Care LOW	$45.10	$55.00
Respite Care HIGH	$45.10	$55.00
Travel	0.97	$2.00
All weekend services	No charge	$110.00
To complete OH & S Assessment for packaged care client	No charge	$120.00
To complete a MEPACS/PAV Assessment – personal security alarm for packaged care client	No charge	$120.00
MEPACS Referral	-	$50.00

Buloke Shire Council Special Meeting Wednesday, 25 June 2014

5.1.1 Adoption of Budget for Municipal Year Ending 30 June 2015

Attachment 1 Draft 2014-15 Budget for Adoption

Appendix E

Service Review Outcomes

This appendix presents summary information regarding the service reviews undertaken by Council in the preparation of the 2014/15 Budget and Strategic resource Plan. The review outcomes have been incorporated in the 2014/15 Budget and Strategic Resource Plan.

Service	Savings Budget 2014/15 $’000	Savings 2015/16 SRP $’000
Aged and Disability Services
This service provides a range of maintenance and support services to assist frail older people and younger people with a disability to live independently at home. Council's service provides domestic assistance, personal care, respite care, home maintenance, meals services, volunteer coordination, aged transport, aged accommodation and senior citizens centres.
The cost of the service is to be capped to current levels with service delivery efficiencies implemented over the 2014/15 financial year.		150
The current community transport services, which include taxi subsidy in Wycheproof, volunteer transport and community bus will not be continued when the vehicles are no longer fit for purpose.		30

Assets & Project Management
This service is to provide for the management, design and administration of Council's assets and infrastructure services, including planning and management of the capital works program.
No change in service proposed

Property Plant & Equipment (Asset Rationalisation)
Council have a range of assets which include property, buildings and plant which support the operation of council
Council will continually review properties and implement a rationalisation program. A reduction in light fleet will be implemented in 2014/15. Sale of properties will be realised in 2015/16. The sale of large plant (graders) will also proceed with savings identified in the road services.	50	100

Community Support
The service develops links between and within the communities in the Shire and works with local communities and groups to access community projects recognised as community priorities and provides a range of youth services that support young people aged between 12 and 25. The service also facilitates economic development throughout the Shire and provides support to local businesses and assists in the promotion of tourism.
Rationalisation of community support program which includes youth and economic development to council funding of 1.5EFT is aimed at targeting government funded programs.	90	230

Customer Service
This service provides for both internal and external customers by resolving the majority of customer enquiries, requests and payments at the first point of contact.
Rationalisation of the Customer service provision by increasing access for all financial transactions at Post Office outlets and closing the public access at four of council District Offices.		380

Early Years
This service is to advocate for the wellbeing of children and their families and ensure it is supported through planning and service development. The service provides pre-school services in 5 towns, maternal and child health and support for playgroups run by parents
The majority of costs of this service relate to building maintenance. No change in service proposed.

Service	Savings Budget 2014/15 $’000	Savings 2015/16 SRP $’000
Environmental Health
This service promotes the health and well-being of the Shire’s local communities through a range of Public Health Programs including immunisations, food surveillance and registration of food premises, accommodation standards and waste water management
This service is a statutory service. No Change in service proposed.

Environmental Planning
This service manages Council's Environmental Compliance and Sustainability Programs and Services.
Council has a range of Statutory obligations for environmental compliance. No change in service proposed.

Governance & Executive Management
This service provides for Councillors, and Executive Support and associated support which provides the overall Governance Services to the Council.
No change in service proposed.

Information Management
This service is to provide the organisation with Records Management Services and Information and Telecommunications Services.
No change in service proposed.

Lakes
This service provides a contribution to the management and development of the Recreational Lakes including Tchum, Green, Wooroonook, Watchem & Folletti Lakes.
Councils will continue to support lakes with cleaning and litter collection. Contribution to water costs will not be included for funding in the 2014/15 budget, however GWM Water will take over subsidising local lake committees of the water cost by over 50% through the new Recreation Contribution Charge.	55	55

Library Services
This service provides mobile library services to the townships of Birchip (co-located with Birchip school), Charlton, Donald, Watchem, Berriwillock , Sea Lake, Culgoa, Nullawil and Wycheproof.
Review service levels and provisions when library agreements are due for renewal

Municipal Emergency Management
This service develops, coordinates and delivers Council’s Municipal Emergency Management Plan and coordination of MECC Centre and associated software.
In collaboration with emergency services agencies, Council will complete a full review and implementation of a new Municipal Emergency Management Plan and commence reviews on emergency sub-plans.

Service	Savings Budget 2014/15 $’000	Savings 2015/16 SRP $’000
Procurement
This service reviews and implements all business processes associated with purchasing, contracting and the tendering services and to manage Council's light fleet and community buses.
Improved efficiencies in the provision of procurement services to provide the service with 2.5EFT.	70	150

Property Maintenance
This service is to provide Property Maintenance Services to a range of Council's building-based assets, focussing on the upkeep and renewal of buildings.
Improvement to Community Halls with a range of upgrade works to kitchens, heating and cooling. Council will also improve the community access to our Halls by removing the fees charged to community groups

Recreation Services
This service provides recreational facilities and support to community run recreation reserves in 9 towns across the Shire, as well as governance support to community recreation clubs and committees
Council continue support for recreation reserves across the shire. This will provide Recreation Maintenance Allocations to 9 townships, provided directly to the local communities. No change in service proposed.

Road Services
This service is to provide road maintenance for the 1100km of Sealed, 650km of Gravel and 3,800km of Earth roads across the Shire
Rationalisation of our work crews with a reduction in grader crews from 6 to 4 combined with a program to upgrade and modernise councils outdoor plant fleet. This will be phased in over the 2014/15 financial year with the sale of 3 older graders and purchase of a new fully equipped grader.		970
Implementation of councils road management plan which with new road classifications, reducing councils long term costs and roads depreciation	556	556

Saleyards
This service provides for the management and administration of the Council’s Saleyards Precinct at Wycheproof for external Livestock Agents to sell Livestock.
Service to be cost neutral to council with fees and charges reflecting operating and capital costs.

Community Grants
This service provides donations, allocations and support to groups in the community that contribute to services that connect and involve the local area.
Rationalisation of Councils community grants program to reduce the administrative burden on local community groups. Community groups will now be directly funded from the budget.

Corporate Support
This service provides donations, allocations and support to groups that will assists council to facilitate an environment that is conducive to a sustainable and growing local business sector and provides opportunities for local residents to improve their skill levels and access employment
A review of corporate support for organisations which to focus on enhanced economic opportunities and advocate for community issues.	30.5	30.5

Service	Savings Budget 2014/15 $’000	Savings 2015/16 SRP $’000
Statutory Compliance & Strategic Planning
The purpose of the Statutory and Compliance Service is to provide Statutory Planning, Building Services and Compliance and Local Laws services.
Develop a Rural Land Use Strategy for the Buloke Planning Scheme that will plan for long term agricultural productivity alongside complimentary uses within rural zones.
Predominantly statutory & regulatory services. No change in service proposed

Swimming Pools
This service manages and operates seven seasonal swimming pools, from the third week in November to the third week in March, annually
Continued delivery of seasonal swimming pools in 7 townships. Council to seek further partnerships with community groups to increase the accessibility to community pools.

Urban Areas/Parks & Gardens
This service manages and coordinates Council’s Parks & Gardens, Urban Infrastructure & Aerodromes providing routine, preventative and on-going maintenance and improvements.
Rationalisation of resources in Urban Areas in Environment will be phased in over the 2014/15 financial year resulting in a 25% reduction in resource levels		270

Waste & Environment
Waste and Environment Services is responsible for the maintenance and improvement of Council’s landfills and transfer stations as well as providing a Residential Kerbside Garbage & Recycling service in all towns within the Shire.
A review of all Council owned and/or operated gravel pits will be commenced in 2014/15 to ascertain the future planning and operation of these assets.
Council provide for full cost recovery for waste management and street cleaning services	431	431

Total Budget Savings¹⁾	1,282²⁾	3,352³⁾

¹⁾The budget savings identified have been included in Councils 2014/15 Budget and Strategic Resource Plan.

²⁾The budget savings for year one have been included in the financial statements in Councils 2014/15 Budget.

³⁾The budget savings identified in future years are inclusive of the savings included in the 2014/15 Budget and have been incorporated into the financial statements in the Strategic Resource Plan 2015/16 and beyond.

It is recognised that further savings of $648,000 (additional to the $3.352 million already identified) is required to be implemented to achieve a target of $4.0 million annual savings. A total saving of $4.0 million has been incorporated into the financial statements in the Strategic Resource Plan 2015/16 and beyond.

	2013/14	2014/15
	$	$
Total amount borrowed as at 30 June of the prior year	0	985,000
Total amount to be borrowed	1,550,000	7,000,000
Total amount projected to be redeemed	(565,000)	(782,000)
Total amount proposed to be borrowed as at 30 June	985,000	7,203,000

Contents	Page

Mayor’s introduction	3
Chief Executive Officer’s summary	5
Budget processes	8
Overview
1. Linkage to the Council Plan	9
2. Services, initiatives and service performance indicators	12
3. Budget influences	23
Budget analysis
4. Analysis of operating budget	26
5. Analysis of budgeted cash position	33
6. Analysis of capital budget	36
7. Analysis of budgeted financial position	39
Long term strategies
8. Strategic resource plan and financial performance indicators	41
9. Rating information	45
10. Other Strategies	48
Appendices
A Budgeted statements	51
B Rates and charges	58
C Capital works program	63
D Fees and charges schedule	69
E Service Review Outcomes	79

Year	New Borrowings	Principal Paid	Interest Paid	Balance 30 June
	$’000	$’000	$’000	$’000
2013/14	1550	565	130	985
2014/15	7,000	782	376	7,203
2015/16	0	203	340	7,000
2016/17	0	0	340	7,000
2017/18	0	0	340	7,000

Appendix	Nature of information	Page
A	Budgeted Statements	51
B	Rates and charges	58
C	Capital works program	63
D	Fees and charges schedule	69
E	Service Review Outcomes	79