Annual Business Plan 2021/22 - Draft for public consultation - Walkerville Council
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Annual Business Plan 2021/22 Draft for public consultation
The Town of Walkerville Town of Walkerville
acknowledges the Kaurna 66 Walkerville Terrace
people as the traditional Gilberton SA 5081
custodians of this land,
and respects their spiritual 08 8342 7100
relationship with their country. walkerville@walkerville.sa.gov.au
walkerville.sa.gov.au
In preparing this strategic
plan, we recognise the many
@walkerville5081
generations of stewardship the
Kaurna people have provided to @TownOfWalkerville
this land, and respect that their @TownOfWalkerville
cultural heritage and beliefs are
as important today as they were
for their ancestors.
2
Annual
Business Plan
2021/22
Draft for public consultation
1 Useful definitions 4
2 Welcome 5
Preamble 5
Our town 5
3 Message from the Mayor 6
4 Council’s strategic framework 8
Strategic framework 8
2020-2024 Living in the Town of Walkerville:
a strategic community plan 9
5 Rates 10
Where do your rates go? 10
Factors that affect rates 10
Rating policy 11
State Government concessions 14
6 Making it happen 15
How Council plans to achieve these objectives 15
Funding the plan 15
Revenue 16
Expenditure 17
7 Financial indicators 18
8 Budgeted financial statements 20
9 Asset management plan 25
3
1 Useful definitions
Key financial indicators
Key financial indicators are calculated and provided in accordance with Information Paper 9 – Local Government
Financial Indicators prepared as part of the Financial Sustainability Program for the Local Government Association of
South Australia. They assist the reader to track Council’s financial management performance in identified critical areas.
Key financial indicators are:
1 Operating surplus ratio 2 Net financial liabilities ratio 3 Asset renewal funding ratio
The operating surplus ratio This ratio demonstrates the The asset renewal funding ratio
highlights the operating relative size of Council’s net represents the ratio of new
result as a percentage of financial liabilities against capital expenditure on renewal
total revenue (excluding the total operating income. or replacement of assets, relative
Regional Landscape Levy). to the optimal level of such
expenditure proposed in
Council’s Asset Management Plan.
CPI Land use classification Average capital value
The Consumer Price Index (CPI) is A state–wide property database, Council calculates its average
based on the price of a ‘basket’ of linked to the capital valuation process, capital value by dividing the capital
goods and services and is used to is maintained by the Valuer-General. value (set by the Valuer-General)
measure change in this price over This database is updated annually of all rateable residential properties
time. The content of the ‘basket’ is and includes information on land use by the total number of rateable
determined through the Australian classification such as residential, residential properties.
Bureau of Statistics: Household commercial or industrial.
expenditure survey.
Total revenue
LGPI Total revenue is the revenue received
Differential rate The Local Government Price Index by Council from all of its various
Refers to the rate in the dollar, which (LGPI) measures price movements sources of funding including rates
is used to calculate the ‘actual’ rates faced by Local Government in South revenue (net of all rebates), fees and
incurred by residential and non- Australia in respect of their purchases charges levied and grants received.
residential ratepayers. of goods and services.
The LGPI provides Council with Operating expenditure
Growth a useful reference regarding the The cost related to the running of
• any new developments made to inflationary effect of price changes the Council, it represents the cost
the property e.g. an extension of goods and services consumed by of consumption incurred when
Local Government. The index reflects, supplying services in the period.
• land divisions and new builds.
over time, the movement in prices
for a number of cost components, as
Budget review well as the aggregate spent on these Capital expenditure
The process of reviewing the budgeted components. The index includes both The investment in the infrastructure
income and expenditure and assessing operating and capital expenditure and assets of the Town of Walkerville
the budget every quarter. on a state average basis. that creates a long term benefit,
beyond the current year.
Average residential rate
Council calculates its average
residential rate by dividing the
total revenue to be raised by
residential rates by the total number
of rateable residential properties.
4
2 Welcome
Preamble
Under Section 123 of the Local Government Act 1999, all Councils set a budget for each financial year.
The budget is aligned with the Council’s Annual Business Plan.
The Annual Business Plan is The Annual Business Plan will also: The Annual Business Plan also includes
prepared as part of Council’s budget the annual budget, which details
development process and must include: • assess the financial requirements operating expenditure (day–to–day
for the financial year and taking recurrent operations and services)
• a summary of Council’s long those requirements into account, and capital expenditure (renewal and
term objectives as outlined set out a summary of its proposed acquisition), as well as identifying
in its strategic framework operating expenditure, capital sources of revenue and rates for the year.
• a summary of Council’s objectives expenditure and sources of revenue
for the financial year ahead • set out the rates structure and
• an outline of how Council plans policies for the financial year
to achieve those objectives • assess the impact of the rates
• the measures (financial and structure and policies on the
non–financial) to assess community, based on modelling
Council’s performance in that has been undertaken or
achieving its objectives. obtained by the Council
• take into account the Council’s Long
Term Financial Plan and relevant
issues relating to the management
and development of infrastructure
and major assets by the Council.
Our town
The Town of Walkerville The Town of Walkerville is
encompasses the suburbs the smallest Council in inner
metropolitan Adelaide and covers a
of Gilberton, Medindie, land area of 3.5km². The Township
Vale Park and Walkerville is home to almost 8,000 residents
and is located immediately and remains the only Council in
north–east of the city of inner metropolitan Adelaide to have
Adelaide, about six kilometres retained its ‘Town’ status.
from the Adelaide GPO. The Town of Walkerville is bordered
by the River Torrens, the Adelaide
Parklands and residential suburbs
Medindie to the north and north–east.
Du
Walkerville Vale Park
tto
n
Tc
Its street boundaries are:
e
• Park Terrace
Lans
Church Tce
• Robe Terrace
e
dow
Tc
te
Ascot Ave
ne T
Stephen Tce
• Main North Road
co
rth
ce
No
Walkerville Tce • Nottage Terrace
• North East Road
Park Tc
Gilberton • Fife Street.
e
5
3 Message from the Mayor
I wish to begin with two words: biggest redevelopments this Council • Alfred Street Road and
Walkerville Oval. has ever undertaken, but we are also Streetscape Project:
looking forward to green lighting a
range of other new projects, albeit with
$290,000 to improve vehicle
This Draft Annual Business Plan begins
the delivery of a redevelopment more a modest state of mind. Following off movements and pedestrian safety
than 30 years in the making. the back of a year where our priority by creating a one-way street,
was capital works in order to remain lowering the speed limit and
The upgrade of Walkerville Oval will be financially responsible as a result of
one of the largest community projects
increasing roadside vegetation
the coronavirus pandemic, this year we
in the history of our Council and I am move forward. We will remain fiscally • Christmas Fair:
delighted to lead the way as we move prudent, while utilising our resources $45,000 for the reintroduction
forward with our plans to redevelop to their capacity to deliver the best of one of the Township’s most
the precinct to provide a sporting and possible services for our community.
community hub that services the needs popular community events
of both current and future generations. The 2021/22 Annual Business • Local Area Traffic
It is clear over the past three decades Plan is forecasting: Management Plan:
that the community has expressed • An average residential rate $25,000 to undertake traffic
support for some type of revitalisation increase of 1.91% surveys and implement plans
of the Walkerville Oval precinct. The
(including growth) to improve transport issues.
infrastructure is not getting any younger,
but our community demographic is. The • Total revenue of $10,851,434 As Mayor, I wish to reinvigorate the
new proposal delivers value for money, Township with not only physical
• Total expenditure of structures, public art and beautification
an integrated sporting hub on par with
neighbouring Councils in the eastern
$10,792,867 upgrades, but also to increase our digital
metropolitan region and a facility that • Total expenditure allocated to presence and events space. I believe we
is going to meet the long term needs capital works (the renewal of have always completed developments
of future generations. in a timely manner, maintained parks to
existing infrastructure, along an immaculate standard and delivered
On 22 March 2021, I received with new projects, within the events above and beyond in comparison
notification that the $8 million renewal Township) of $3,058,108 to other Councils, however, now is our
for our flagship parcel of open space
in the Township had been green
• A budgeted operating surplus
lighted. This is a project first flagged of $58,567
in the 1970s and officially on the books
We know our residents want their
since the 1990s when Nairn Architects
rubbish collected, lawns mowed,
drew up plans for a sporting hub. A
gardens looking green, useable open
project that has been discussed in the
spaces, functional roads and affordable
chamber a countless number of times
rates. It is my aim to continue these
throughout my time on the Elected
services to the highest standard
Body. A project that has been so long
while delivering other key projects in
in the making, I cannot describe the joy
2021/22, including:
I felt when State Treasurer Rob Lucas
MLC emailed me with confirmation that • $8 million Walkerville
he was giving our Council $4 million Oval Redevelopment:
towards the upgrade. I cannot thank $1 million in 2021/22 to start
the State Government enough for this
construction on a sports and
momentous and generous contribution
as it means the redevelopment finally community hub (remaining
gets off the ground. funds to be spent over
subsequent financial years)
While this will largely be the focus for
our Council in the 2021/22 financial • Levi Park Upgrade:
year, we also move forward with $300,000 for a revamped
several other small, yet important, eastern end with a new
upgrades. My message in the last playground, barbecue area,
Annual Business Plan was simple:
COVID-19 meant there was a hold timber decking, drinking
on all non-operational projects. This fountain and landscaping
year, our proposed budget signals a
hopeful new financial year. Not only can
we now officially focus on one of the
6
We are not holding a public
The Draft 2021/22 meeting due to the Minister
Annual Business Plan for Local Government
chance to build upon what COVID-19 exercising the COVID-19
taught us in the online realm. We recently
will be open for community
emergency powers and
started a new subscription platform, consultation until excusing Councils from
which has received wonderful feedback 5pm on Friday, undertaking public face-to-
from our community, and I am pleased
2 July 2021. face meetings in relation
to announce there will be more digital to a Draft Annual Business
developments coming over the next year. Plan and Budget.
In 2021/22, we will also be bringing our
village back together with an increase of
in-person community services. One event
in particular I look forward to delivering
Use the QR code
is the popular Christmas Fair, which was Read, download or print the Draft 2021/22
below to visit Council’s
cancelled last year due to COVID-19. Annual Business Plan on Council’s website
budget webpage:
www.walkerville.sa.gov.au.
I welcome and encourage you – as
a valuable member of the Town of To pick up a hard copy of the Draft 2021/22 Annual
Walkerville – to take a look at the Business Plan, visit the Civic and Community Centre.
snapshot of our proposed 2021/22
budget and to share your views so that
we can build a lasting and sustainable
future that will support a better
Township for all Walkervillians. Have
your
say Formal consultation responses can be submitted by completing
the online survey at www.surveymonkey.com/r/draft-202122-abp.
Hard copy surveys are available from the Civic and Community
Elizabeth Fricker
Centre – 66 Walkerville Terrace, Gilberton – during business hours.
Mayor of the
Town of Walkerville Responses received via the online survey will be compiled and
provided to Council with statistical analysis for consideration
at the 19 July 2021 Ordinary Meeting when making a final
determination of the 2021/22 Annual Business Plan.
If you do not wish to provide a formal consultation response,
you can still provide feedback to Council by emailing
walkerville@walkerville.sa.gov.au or by writing to the Chief
Executive Officer at the Town of Walkerville, PO Box 55, Gilberton
5081 with the subject line “Draft 2021/22 Annual Business Plan”.
General feedback received via email or in writing will not be
included in the formal analysed consultation results, however, will
be provided to Council separately for information when making a
final determination of the 2021/22 Annual Business Plan.
7
4 Council’s strategic framework
A connected
community:
the Town of
Walkerville urban
master plan
Living in
Living
the Town of
Walkerville: Disability
Walkerville:
wellbeing for access and
a strategic
every age inclusion plan
community
and stage
plan
Asset Long term Financial Annual
Annual
management financial guiding business
budget
plans plan principles plan
WH&S Disaster Business
Department Development
management recovery continuity
plans plan
plan plan plan
8
Vision: 2020-2024
a liveable, Living in the Town
cohesive, safe, of Walkerville:
active and a strategic community plan
sustainable The 2020–2024 strategic plan
Township. sets out the direction and
aspirations of Council.
Mission:
Driving strong policy, creating sustainability,
we will provide securing the wellbeing for all and delivering
services that outcomes in the Town of Walkerville are key
tactics, which formulate the overarching
are affordable, strategy. This plan provides a framework for
equitable and decisions about infrastructure investment,
assets, community and corporate services.
sustainable. The basis behind this vision is to build a
resilient Township for future generations.
Values: This plan grew out of the 2016-2020 Living
in the Town of Walkerville: a strategic
we are fair and community plan.
ethical in our
Future projects and budgets will be
decision making. assessed on their capacity to deliver the
outcomes in the plan, as well as for how
they align to the objectives of the seven
key pillars:
Places and spaces:
create useable open space facilities that
meet community needs and promote
physical activity.
Safety:
support the provision of a safe and
supportive social environment that
contributes to people and families
feeling safe.
Mobility and movement:
provide easy traffic and pedestrian
movement throughout the Town.
Assets:
continue to provide for and
maintain a good standard of
assets and public infrastructure.
Heritage:
protect and maintain the unique
history of the township and its buildings.
Economy:
create the means to enable economic
diversity and encourage business
opportunities.
Leadership:
a responsible and influential local
government organisation.
This plan was adopted on 18 May 2020
as per resolution CNC382/19-20.
9
5 Rates
Where do your rates go? Factors that affect rates Rating policy
• a bandoned vehicles •
cost increases due to inflation In setting Council’s rates for the
• aged services •
increase in the utilities and waste 2021/22 financial year, Council
• arts and cultural programs management charges has considered the following:
• bicycle tracks •
finance costs on borrowings for
• building applications and approvals major capital projects • Impacts from the COVID-19 pandemic
• bus shelters •
maintaining and renewing assets to a • Adhering to Council’s financial
standard that meet community needs guiding principles
• by–laws
growth
• • Achieving the goals and objectives
• cemetery
•
increase to Solid Waste Levy outlined in 2020-2024 Living in the
• community wellbeing programs Town of Walkerville: a strategic
• community bus •
increase to gate fees associated community plan
• dogs/cats with recyclables.
• The budget for the financial year and
• Emergency Services Levy long term financial planning
• employment/training programs • The financial implications of
• fire prevention complying with the requirements of
• food and health inspections the Local Government Act 1999 and
• footpaths other legislation
• free internet in library • The specific issues faced by the
community, including:
• governance/mandatory
reporting • The ongoing requirements for a
capital program to replace, upgrade
• graffiti removal
and maintain infrastructure assets,
• gutters which include roads, paths, storm
• immunisation water infrastructure, parks,
• inspections reserves and public buildings;
• landscaping and maintenance • The development of a community
• Levi Caravan Park service program based on
• library community needs;
• linear park • The current economic climate.
• linemarking Ratepayers who are experiencing
• neighbourhood amenity financial difficulties and who are unable
• ovals to make payments by the due date,
• parking regulations should contact the customer services
and infringements team or Council’s Rates Officer at the
earliest opportunity to apply for a
• parks and gardens
revised instalment payment scheme
• pest control that fits their particular circumstances.
• planning Applications made after the amounts
• playgrounds maintenance have fallen into arrears may, in
• policy development some circumstances, be approved,
• public order however, such late applications will
normally result in fines and interest
• public toilets maintenance
being incurred in accordance with the
• roads requirements of the Local Government
• reserves and picnic areas Act 1999. Payment of all rates, fines,
• signage interest and costs will not, in the
• stormwater drainage and reuse absence of exceptional circumstances,
• street cleaning be postponed beyond 30 June in the
fiscal year in which they were incurred.
• street lighting
• street signs
• traffic control
• trees
• waste management
• zoning.
10Council and the Office of Objection to valuation General rates
the Valuer-General A property owner may object to the The Local Government Act 1999
valuation referred to in their rates provides for a Council to raise revenue
All land within the Council area, notice by writing to the Valuer-General for the broad purposes of the Council
except for land specifically within 60 days after the date of service through a general rate which applies
exempt (e.g. Crown Land of the rate notice. to all rateable properties within
and Council-owned land), is the Council’s area. To ensure the
Council has no role in this process and achievement of Council’s financial
considered subject to rates. the lodgement of an objection does not goal of delivering an achievable
change the due date for payment. budget Council has determined to
Council does not ‘decide’ on the
valuation of properties within the Objections can be forwarded to: raise $9,063,345 in property rates
Town of Walkerville. Valuations are State Valuation Office, (including rates rebates and excluding
provided by Valuer-General (State the Regional Landscape Levy for the
101 Grenfell Street,
Government). Historically, the Valuer- 2021/22 financial year).
Adelaide SA 5000.
General’s office provided revaluations Phone: 1300 653 345 or email:
only on a portion of properties. This OVGobjections@sa.gov.au.
practice has now changed. As part of
the State Government’s Revaluation
initiative project, beginning in 2018/19, Total budgeted
all properties in the Township have
been revalued and Council’s budget
revenue raised
process has been modified accordingly from properties
to reflect changes in valuations across (excluding the Regional
all properties. Landscape Levy):
Refer to pages 12 and 13 to see how
capital value impacts on rates. $9,063,345
115 Rates
Regional Landscape Levy Minimum rate Objection to land use
The Regional Landscape Levy (formally Council has also determined to charge classification
the NRM Levy) is collected by the Council a minimum rate against all rateable
If a ratepayer believes that their
on behalf of the State Government. properties. The reason for a minimum
property has been incorrectly classified
Rates figures presented in this report rate is that Council considers it
as to its land use, they can object to
are exclusive of the Regional Landscape appropriate that all rateable properties
that land use classification within 60
Levy unless otherwise stated. make a contribution to the cost of
days of being notified. The objection
administering the Council’s activities
must set out the basis for the objection
Differential rate and maintaining infrastructure.
and details of the land use that
Due to the need to ensure an equitable Minimum rate: $1,251 should be attributed to that property.
distribution of the rate burden and to The Council will then decide on the
account for the variations within the The minimum rate is levied against the objection as it sees fit and notify the
community’s capacity to pay, the Council whole of an allotment (including land ratepayer accordingly. A ratepayer has
will continue to apply differential rates under separate lease or licence) and only the right to appeal against the Council’s
based on use of the property. one minimum rate is levied against two decision to the Land and Valuation
or more pieces of adjoining land owned Court. Objections to Council’s land
Proposed changes to and occupied by the same ratepayer. use classification may be lodged with
differential rate 2020/21: The minimum rate will apply to
the Chief Executive Officer, Town of
Walkerville. Note that the lodgement of
Residential: 0.0022563 properties valued less than $554,453 an objection does not change the due
Non–residential: 0.0037229 date for payment.
The minimum rate will affect
Non Residential (vacant land): approximately 29.9% of the properties.
0.0043997 The maximum permitted under Section
158(2)(d) of the Local Government Act
Note: The ‘rates in the dollar’ presented 1999 is 35%.
are subject to amendment based on
the final property valuations for the
Township prepared by the Valuer-
General as at 30 June 2021.
Valuations Capital value and rates 2019-2022
Valuations on your property are Capital value
made by the Valuer-General, not 2019/20 2020/21 2021/22
differential Variance Variance
Council. 0.0022738 0.002301 0.0022563
rate
If your property was valued at
$600,000 in 2020/21 and does not $600,000 $1,364 $1,381 $1,354 -$27 -1.94%
increase in 2021/22, your rates
will decrease by $27 in 2021/22. $750,000 $1,705 $1,726 $1,692 -$34 -1.94%
If your property was valued at
$1,000,000 in 2020/21 and does not $1,000,000 $2,274 $2,301 $2,256 -$45 -1.94%
increase in 2021/22, your rates
will decrease by $45 in 2021/22. $1,250,000 $2,842 $2,876 $2,820 -$56 -1.94%
Please note that if your property capital value has increased, you will see a rise in your residential rates.
12Rates may be paid through: Postponement of rates
• BPay Service
Seniors
• telephone 1300 276 468 using Mastercard
Ratepayers who have a Seniors Card
or Visa card
can apply to Council to postpone payment
• Council’s website using Mastercard of rates on their principal place of
or Visa card residence. Postponed rates remain as a
• in person at the Civic and Community Centre charge on the land and are not required
• cheque, money order, cash, EFTPOS, to be repaid until the property is sold or
Mastercard or Visa card facilities are disposed of.
available for payments (American Express
Senior ratepayers experiencing hardship
and Diners Club cards are not accepted)
should contact the Rates Officer for a
• post addressed to the Town of Walkerville confidential discussion.
PO Box 55, Walkerville SA 5081
• Australia Post. Remission and postponement
of rates due to hardship
Late payment of rates
The Local Government Act 1999 permits
The Local Government Act 1999 provides a Council, on the application of the
Payment of rates that a Council may impose a penalty of ratepayer, to partially or wholly remit
2% on any payment for rates (whether by rates on the basis of hardship. Where a
The Council has determined instalment or otherwise) that is received
that the payment of all rates ratepayer is suffering hardship in paying
after the due date. A payment that continues rates they can contact the Rates Officer
can be either by full payment to be late is then charged a prescribed
– due and payable by the to discuss the matter. Such enquiries are
interest rate for every overdue month. The treated confidentially by Council. While
13 September 2021 – or by Local Government Act 1999 determines how
quarterly instalments due and arrangements for extended payments of
this rate is calculated. rates are negotiable, remission of rates in
payable on the following dates:
whole, or in part, is rarely approved due to
When rates are unpaid by the due date,
1st payment: the inequitable situation for the rest of the
Council issues a final notice for payment.
community.
13 September 2021 Should rates remain unpaid then Council
refers the matter to a debt collection agency. Ratepayers experiencing hardship should
2nd payment: The debt collection agency charges collection contact the Rates Officer for a confidential
13 December 2021 fees to the ratepayer. When Council receives discussion.
a payment in respect of overdue rates it
3rd payment: applies the money as follows: Forms are available from Council’s
13 March 2022 1st – to satisfy any costs awarded in website: www.walkerville.sa.gov.au/
connection with court proceedings services/applicationforms
4th payment: 2nd – to satisfy any interest costs
13 June 2022 3rd – in payment of any fines imposed
4th – in payment of rates, starting from
the oldest account.
Rates based on your property value
Capital value range All assessments Residential Percentage of properties
Up to $500,000 1,268 1,047 28%
$500,000 – $750,000 859 818 22%
$750,000 – $1,000,000 678 645 17%
$1,000,000 – $1,250,000 468 457 12%
$1,250,000 – $1,500,000 254 249 7%
$1,500,000 – $2,000,000 258 253 7%
$2,000,000 – $3,000,000 183 176 5%
$3,000,000 – $4,000,000 63 58 2%
$4,000,000+ 36 25 1%
Total 4,067 3,728 100%
135 Rates
State Government concessions
The State Government offers a single ‘cost–of–living payment’ provided directly to those who are eligible.
This payment may be used for any purpose, including offsetting Council rates.
To check eligibility, contact the Department for Communities and Social Inclusion (DCSI) Concessions
Hotline 1800 307 758 or www.sa.gov.au/concessions
Regional Landscape Statutory rebate Discretionary Sale of land for
Levy (RLL) of rates rebates non–payment of rates
Council collects a Regional The Local Government Act Council may grant a rebate The Local Government Act
Landscape Levy (previously 1999 requires Council to of service charges or rates 1999 provides that a Council
known as the Natural rebate the rates payable on in certain circumstances, as may sell any property
Resources Management some land including: per Section 166 of the Local where the rates have been
Levy) on behalf of the • 100% on land used solely Government Act 1999. in arrears for three years
State Government. The for religious purposes or more. The Council is
Landscape Board sets the The Council has an absolute required to provide the
• a minimum of 75% for discretion to:
levy, which helps to fund owner with details of the
land used predominantly
the operations of regional • grant a rebate of rates or outstanding amounts and
for educational purposes
landscape boards, which service charges as per the advise the owner of its
(subject to some
have responsibility for the Local Government Act 1999 intention to sell the land if
qualifications) and
management of the state’s • determine the amount of payment of the outstanding
natural resources. These • a minimum of 75% on land amount is not received
any such rebate.
responsibilities include used for the provision of within one month.
regional landscape planning, supported accommodation. Persons or bodies, which
water allocation planning, seek a discretionary rebate
community capacity will be required to submit an
building, education and application form to the Council.
compliance activities. The
RLL for 2021/22 is $341,989 Application forms
(2020/21: $332,652). are available from
Council’s website,
For further information www.walkerville.sa.gov.au
regarding this levy,
or the work the levy
supports, please visit
www.landscape.sa.gov.au
Statutory rebates of rates
2019/20 2020/21 2021/22
100% Religious $24,967 $22,685 $22,709
75% Education $171,445 $187,806 $188,205
75% Community Services $51,896 $52,853 $54,419
Statutory Rebate $248,308 $263,343 $265,333
146 Making it happen
How Council plans to Council is best placed to Funding the plan
achieve its objectives achieve its objectives by taking
Council is granted the power
into account the following
To achieve its objectives for to acquire funds under Section
assumptions and considerations:
the financial year, Council has 133 of the Local Government
• Council’s financial strategy and Act 1999. Sources of funds
adopted a plan that seeks to commitments
achieve a reasonable degree include: property rates,
• Transparency and accountability
of stability and predictability in grants, statutory charges,
• Zero based budgeting
the overall rates burden over user charges, income from
• Compliance with Australian
time, while ensuring ratepayers investments, reimbursements
accounting standards
are paying for the services and and commercial activity.
• Effective and efficient use
infrastructure maintenance, of resources available Operational expenditure is impacted
renewal and development • Alignment with strategic framework by CPI and LGPI together with
obligations they are consuming. • Adelaide CPI and LGPI for the March salary and wages costs, which are
2021 quarter in rates analysis adjusted annually in accordance with
Long term financial plans enable contractual requirements, performance
Council to plan for the future and • Increase in salaries based on CPI reviews and incremental increases.
assess Council’s performance in or employment agreements Depreciation is adjusted subsequent to
adhering to key financial indicators • Increase in insurance costs additions, disposals and revaluations
and targets for debt, rates and • Increase in finance costs, waste as appropriate.
asset sustainability. Taking into management charges and utilities
account revenue sources and factors
affecting rates will assist Council
• Increase in the Australian Fees and charges
Government Superannuation
to achieve its objectives. Council sets and reviews its fees and
Guarantee.
charges pursuant to Section 188 of the
Council’s primary revenue source Local Government Act 1999. The Act
comes from property rates, which states fees or charges must not exceed
represent 83.52% of total revenue. a reasonable estimate of the direct cost
Every year, Council makes an informed to the Council. Fees and charges are
assessment of how much it needs taken into account when developing
to maintain financial sustainability the budget.
and ensure that services and
infrastructure maintenance, renewal
and development, can be afforded by
the community over the long term.
156 Making it happen
Estimated revenue by category:
Rates
83.52% / $9,063,345
Regional Landscape levy
3.15% / $341,322
Total Grant, subsidies and contributions
2.72% / $295,670
revenue Statutory charges
$10,851,434 3.30% / $358,596
User charges
5.80% / $629,306
Other income
1.36% / $147,243
Reimbursements
0.15% / $15,952
The
Corporate Services Estimated expenditure by category:
budget includes
Corporate Services
staff salaries,
42.00% / $4,570,875
IT services, utilities
and depreciation. Assets & Infrastrcuture
17.77% / $1,918,170
Strategy & Governance
7.94% / $856,625
Program & Events
Total 1.07% / $115,168
expenditure Planning & Environment
7.17% / $773,766
$10,792,867 Community Services
1.98% / $213,405
Communications & Marketing
2.36% / $213,976
Environment and Waste
8.50% / $917,336
Customer Experience
8.10% / $874,115
Regional Landscape Levy
3.14% / $339,431
1617
7 Financial indicators
Financial indicators are Council’s focus on its strategic
calculated and provided directions in recent years aims
to ensure Council creates and
in accordance with implements long term planning
Information Paper 9 – of its finances and asset
Local Government management.
Financial Indicators This will also ensure it focuses on being
financially sustainable. This focus on
prepared as part of the strategic directions and implementation
Financial Sustainability of long term strategies will continue in
2021/22 to ensure the implementation
Program for the Local of previous strategies and to maintain
Government Association Council’s focus on itsorganisational
sustainability.
of South Australia.
They assist the reader to Operating surplus ratio
track Council’s financial The operating surplus ratio highlights
management performance the operating result as a percentage of
total rate revenue (excluding Regional
in identified critical areas. Landscape Levy). The Council target
range is between 0-15%.
Net financial liabilities ratio
The Council target for this ratio is
between zero and 120%. This ratio
demonstrates the relative size of
Council net financial liabilities against
total operating income. It can be
considered a measure of the ability to
service liabilities.
Asset renewal funding ratio
The asset renewal funding ratio
represents the ratio of new capital
expenditure on renewal or replacement
of assets, relative to the optimal
level of such expenditure proposed
in Council’s Asset Management Plan.
Council’s target range is between
90–110% over the next five year period.
Key financial indicators 2021/22
Target 2020/21 2021/22
range Budget (BR2) Budget
Operating surplus/(deficit) ratio 0 - 15% 1% 0.54%
Net financial liability ratio 0 - 120% 84% 75%
Asset renewal funding ratio 90 - 110% 100% 85%
1819
8 Budgeted financial statements
Statement of comprehensive income
2020/21 BR2* 2021/22
Income
$(‘000) $(‘000)
Rates 9,184 9,404
Statutory charges 285 358
User charges 452 629
Grants, subsidies and contributions 276 297
Investment income - -
Reimbursements 16 16
Other income 140 147
Total revenues 10,353 10,851
Expenses
Employee costs 3,322 3,637
Materials, contracts and other expenses 4,585 4,807
Depreciation, amortisation and impairment 2,185 2,233
Finance costs 155 115
Net loss – equity accounted Council businesses - -
Total expenses 10,247 10,792
Operating surplus/(deficit) before capital amounts 106 59
Asset disposal and fair value adjustments 415 -
Amounts received specifically for new or upgraded assets (400) 400
Net surplus/(deficit) 121 459
Other comprehensive income
Changes in revaluation surplus - I,PP&E - 2,352
Movements in other reserves - -
Total other comprehensive income - 2,352
Total comprehensive income 121 2,811
*
Budget review 2 (not audited)
20Statement of financial position
2020/21 BR2* 2021/22
Assets
$(‘000) $(‘000)
Current assets
Cash and cash equivalents 69 26
Trade and other receivables 425 433
Total current assets 494 459
Non–current assets
Equity accounted investments in Council business 2,782 2,782
Infrastructure, property, plant & equipment 117,582 120,753
Other non–current assets 80 80
Total non–current assets 120,444 123,615
Total assets 120,938 124,074
Liabilities
Current liabilities
Trade & other payables 1,729 1,454
Borrowings - -
Provisions 505 505
Other current liabilities - -
Total current liabilities 2,234 1,959
Non–current liabilities
Borrowings 5,686 6,286
Provisions 65 65
Liability – equity accounted Council businesses 327 327
total non–current liabilities 6,078 6,678
Total liabilities 8,312 8,637
Net assets 112,626 115,437
Equity
Accumulated surplus 34,615 35,074
Asset revaluation reserve 77,620 79,972
Other reserves 391 391
Total equity 112,626 115,437
*
Budget review 2 (not audited)
218 Budgeted financial statements
Budgeted cash flow statement
2020/21 BR2* 2021/22
Cash flows from operating activities
$(‘000) $(‘000)
Receipts
Operating receipts 10,345 10,843
Investment receipts - -
Payments
Operating payments to suppliers and employees (7,825) (8,414)
Finance payments (159) (115)
Net cash provided by (or used in) operating activities 2,311 2,314
Cash flows from investing activities
Receipts
Amounts received specifically for new/upgraded assets 717 400
Sale of replaced assets - -
Repayments of loans by community groups - -
Payments
Expenditure on renewal/replacement of assets (2,357) (1,895)
Expenditure on new/upgraded assets (1,211) (1,462)
Net cash provided by (or used in) investing activities (2,851) (2,957)
Cash flows from financing activities
Receipts
Proceeds from borrowings 250 600
Payments
Repayments of borrowings - -
Net cash provided by (or used in) financing activities 250 600
Net increase/(decrease) in cash held (290) (43)
Cash & cash equivalents at beginning of period 359 69
Cash & cash equivalents at end of period 69 26
*
Budget review 2 (not audited)
22Budgeted statement of changes in equity
2020/21 BR2* 2021/22
Accumulated surplus
$(‘000) $(‘000)
Balance at end of previous reporting period 34,332 34,615
Net result for the year 121 459
Transfers from other reserves 162 -
Balance at the end of the period 34,615 35,074
Asset revaluation reserve
Balance at end of previous reporting period 78,134 77,620
Gain (Loss) on Revaluation of I, PP&E (514) 2,352
Balance at the end of the period 77,620 79,972
Other reserves
Balance at end of previous reporting period 396 391
Transfers from accumulated surplus (5) -
Balance at the end of the period 391 391
Total equity at end of reporting period 112,626 115,437
*
Budget review 2 (not audited)
238 Budgeted financial statements
Uniform presentation of finances
2020/21 BR2* 2021/22
$(‘000) $(‘000)
Income 10,353 10,851
Less expenses (10,247) (10,791)
Operating surplus / (deficit) 106 59
Net outlays on existing assets
Capital expenditure on renewal and replacement of existing assets (2,327) (1,895)
Add back depreciation, amortisation and impairment 2,185 2,233
Add back proceeds from sale of replaced assets - -
(142) 338
Net outlays on new and upgraded assets
Capital expenditure on new and upgraded assets (1,203) (1,462)**
Add back amounts received specifically for new and updgraded assets 717 400
(486) (1,062)
Net lending / (borrowing) for financial year (522) (665)
Budget review 2 (not audited) **$1 million capital expenditure for Walkerville Oval Redevelopment
*
249 Asset management plan
258 Asset management plan
To achieve the objectives
outlined in Council’s strategic Infrastructure programs
framework, Council needs a long
Infrastructure: roads & pavements & kerb
term Asset Management Plan,
to effectively plan and budget Infrastructure: footpath
for the ongoing maintenance, Infrastructure: traffic control devices
renewal and replacement of
Council-owned assets and Infrastructure: building
infrastructure in the Township. Infrastructure: stormwater
The plan ensures that ongoing funding Infrastructure: lighting
for assets and infrastructure is
prioritised and staged concurrent to Other infrastructure programs
their expected life span. In accordance Plant and equipment
with its strategic management plans,
Council must adopt a long term Open space: reserve structures (incl: playgrounds)
financial management plan and asset
and infrastructure plans that cover a Open space: irrigation
period of no less than 10 years. Council Other
must review its Long Term Financial
Plan as soon as reasonably possible Furniture and fittings
following the adoption of its Annual
Business Plan and within the same IT
financial year. When determining the
appropriate expenditure levels across
various asset classes a number of
Total
factors are taken into consideration.
These include: indexation based on Upgrades
March CPI of 1.2%, condition, age,
useful life, degradation/consumption Levi Park
curves, agreed levels of service and
intervention markers. Alfred Street
ERA Connection (Ascot Avenue)
Walkerville Oval
Sub Total
Salary Capitalisaton
Grand total
262021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
$(‘000) $(‘000) $(‘000) $(‘000) $(‘000) $(‘000) $(‘000) $(‘000) $(‘000) $(‘000)
429 526 845 798 800 798 799 750 726 712
120 150 150 175 175 200 200 200 200 200
60 60 60 60 60 60 60 60 60 60
406 179 64 1350 550 69 69 69 69 69
196 106 84 84 84 186 186 186 186 186
25 25 25 25 25 25
35 115 130 140 15 15 15 15 16 16
175 170 25 150 25 25 25 150 25 25
21 60 35 40 20 25 25 25 25 25
52 52 52 525 52 52 52 52 52 52
204 105 100 100 250 350 100 100 100 100
1,723 1,523 1,570 3,422 2,056 1,780 1,556 1,607 1,484 1,470
150
150
35
1,000 3,000
1,335 3,000 - - - - - - - -
108 110 112 114 116 118 121 123 126 129
3,058 4,523 1,570 3,422 2,056 1,780 1,556 1,607 1,484 1,470
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