Whyalla City Council DRAFT BUDGET OVERVIEW

Whyalla City Council BUDGET GOALS n Reduce the Operating Deficit. n Asset Replace/Replenishment = to/ > Annual Depreciation expense. n Control recurrent expenditure growth n Maintain Loans with in Borrowing Benchmark (20% of rates) n Ensure budget reflects Strategic Plan and Ten Year Financial Plan

Whyalla City Council OUTCOMES n Operating deficit increased n Asset renewal/Replacement > Annual Depreciation. n Recurrent expenditure increase: 13.6%. n Loans = 12.57% of rate revenue n 6% Rate Increase Proposed (CPI is 4.2%). n Budget & Community Plan.

Whyalla City Council ACHIEVEMENTS

Whyalla City Council n Civic Building Upgrade n Road Reconstruction Program n Bradford Street n City Plaza Development n Airport secure car park CAPITAL PROJECTS

Whyalla City Council CAPITAL PROJECTS n Whitehead Street n Boat Ramp Upgrades n Civic Park Arboretum n Changeovers to Diesel Fleet n Foreshore Master Plan – Major infrastructure commenced

Whyalla City Council CAPITAL PROJECTS

Whyalla City Council STRATEGIC/GOVERNANCE n Community Plan n Remote Disaster Recovery Facility n Revised 10yr Long term Financial Plan n 10 year Asset Management Plans n Extensive Policy Review n Staff Turnover 16% n Trainee Positions

Whyalla City Council ENVIRONMENT n Mt Laura Conservation Reserve & Environment Unit n Implementation of Waste Strategy n Treated Effluent Pipe Network commissioned. n Sand Replenishment at foreshore n Asbestos Removal

Whyalla City Council COMMUNITY n Commenced City Master Plan n Sport & Recreation needs Audit n New Library concept plans completed

Whyalla City Council COMMUNITY n New format for WCN news

Whyalla City Council CROSS FUNCTIONAL ACHIEVEMENTS n Risk Management Award n Grants commission funding increased by $36,714 n 27% OHSW Rebate n $37,409 Risk Management Rebate n Productivity saving $209,341

Whyalla City Council GENERAL OPERATIONS n Boundary extension DPA approved n District Centre Zone DPA approved n Coastal & General DPA on consultation

Whyalla City Council GENERAL OPERATIONS n Approved Building works $50 million, 25% increase. n Whyalla Industrial Estate – Stage 1, 90% of land sold n Approved various land parcels for residential development

Whyalla City Council TOURISM & VISITATION n Secured Motor Home convention n Snapper Competition.

Whyalla City Council TOURISM & VISITATION

Whyalla City Council 2008/2009 THE CHALLENGES AHEAD

Whyalla City Council BUDGET CHALLENGES n Financial Sustainability n Ageing Infrastructure n Levels of service n EB obligations 5% wage rise n Cost shifting to Local government n Increased legal requirements n Staff retention & attraction

Whyalla City Council BUDGET INITIATIVES n Efficiencies created in service delivery through continuous improvement n Ongoing review of non-core services n Reserve funds used for capital works as opposed to loan funds – reducing net interest margin n Reviewed equity of Rating system n Increased Asset Sale income

Whyalla City Council EXPENDITURE SUMMARY Expenditure2008/09 Operating Exp (less depreciation) $ 17,991 Depreciation $ 4,128 Capital Improvement $ 23,725 Loan Principle pmts $ 1,751 To Reserves $ 1,039 TOTAL $ 48,634 $000

Whyalla City Council INCOME SUMMARY INCOME2008/09 Cash for Projects brought fwd $ 2,605 Other Operating $ 10,408 Capital Improvement $ 18,254 Rates & Fixed Charge $ 10,970 From Reserves $ 6,476 TOTAL $ 48,713 $000

Whyalla City Council KEY PERFORMANCE INDICATORS 06/0707/0808/09 Operating Surplus Ratio +0-15%(4)%(5)%(7)%6.%8.% Net Financial Liabilities (000) (181)1,7674,1505,3564,116 Net Financial Liabilities Ratio <0% & > 100% (1.0)%9.5%19.8%23.3%20.9% Interest cover Ratio 10%(1.2)%1.1%0.8%1.3%1.9% Asset Sustainability Ratio 100% %108% 09/10 10/11 10/11Target

Whyalla City Council OPERATING STATEMENT Operating Revenue08/0907/08 n Rates9,347 8,523 n Other Rates1,818 1,524 n Statutory Charges n User Charges3,069 2,300 n Operating Grants & Subsidies4,975 5,015 n Investment Income n Reimbursements n One Steel Ex-Gratia n Other n Total Operating Revenue21,36418,938 $000 $000

Whyalla City Council OPERATING REVENUE MIX Other 6% Waste Charge 8% OneSteel 3% Statutory Charges 2% User Charges 15% Operating Grants & Subsidies 23% General rates 43%

Whyalla City Council OPERATING STATEMENT Operating Expenses08/0907/08 n Employee Costs 7,633 6,712 n Contractual Services 3,406 3,324 n Materials 1,843 1,577 n Finance/Interest Expenses n Depreciation 4,128 3,605 n Other Expenses 4,671 3,867 n Total Operating Expenses 22,12019,424 n Operating Surplus/(Deficit) before Capital Revenues (756) (486) $000 $000

Whyalla City Council OPERATING EXPENSE MIX Employee Costs 35% Depreciation 19% Other 21% Interest Expense 2% Materials 8% Contractual Services 15%

Whyalla City Council STRATEGIC PLAN RELATIONSHIP n Council’s expenditure has been assessed in terms of services and functions it provides n Service Profiles have been developed with budget details n Service Profiles can be related to Strategic Planning Goals coming from the Community Plan

Whyalla City Council STRATEGIC PLANNING n Community Plan –Council Governance –Economic Prosperity –Environmental Care –Community Wellbeing

Whyalla City Council COUNCIL GOVERNANCE n Personnel Management and Development –IRM implementation (Integrated Integrated Risk Management) –Ongoing staff training –Governance projects –Ongoing OHS, Balanced Scorecard and Asset management programs

Whyalla City Council COUNCIL GOVERNANCE n Information technology –PABX Upgrade –Server Replacements –Various Software –Printers & Scanners

Whyalla City Council ECOMOMIC PROSPERITY n Roads and Footpaths –Concrete footpath construction –Kerb replacement program –Sealed roads –Roads to Recovery –Asset Management program –Foreshore Master Plan

Whyalla City Council ECONOMIC PROSPERITY –New Library Development –Completion of Light Vehicles changeover to Diesel –Finalise Civic Building Upgrade –Airport Terminal Building Upgrade –Airport Security Cameras

Whyalla City Council ECONOMIC PROSPERITY n Economic Development –WEDB Subsidy and co-operative action on projects –Upper Spencer Gulf Common Purpose Group –Advancing Whyalla –Various Residential Property Development –Business Incubator –Kingfish Harbour Construction –Whyalla Industrial Park Development

Whyalla City Council ENVIRONMENTAL CARE n Environmental Management –Centralised Irrigation –ASR Finalisation –Asbestos Removal Program –Solar Rebate Scheme –Renewable Energy Projects

Whyalla City Council ENVIRONMENTAL CARE n Environmental Management –Landfill Transfer Station –Waste Cell Construction –Pest plant control –WERIC –Clean up Australia day –Recycling promotion

Whyalla City Council COMMUNITY WELLBEING n Visitation Promotion and Development –Tourism advertising and marketing –Maritime museum marketing –Special events –Conferences –Tourism signage –Annual snapper competition

Whyalla City Council COMMUNITY WELLBEING n Parks and Recreation facilities –Various Solar Lighting –Various Reserve Upgrades (Bradford, Loring, Norton, Barson) –Foreshore Playground Shade sails –

Whyalla City Council COMMUNITY WELLBEING n Community Services and Development –Donations and community grants –Community arts project –Youth week –Whyalla Gift Foundation –Performing arts –Active Community Field Officer

Whyalla City Council COMMUNITY WELLBEING n Community Services and Development (cont) –Youth Council –Donation to Reserve Cadet units –Aged Care Contribution –Youth Development Contribution

Whyalla City Council BUDGET 2008/2009 n Slight Cash budget surplus n Operating Deficit of $820K n 6% Rate increase in light of recent Financial Sustainability inquiry (CPI 4.2%) - halved rate increase above CPI n Maximise funding of capital works and strategic planning priorities n Retention of all services

Whyalla City Council FUTURE CHALLENGES n Managing the Infrastructure Funding Gap n Achieving an operating surplus n Contain costs and review services in light of financial sustainability n Completion of 10 year asset plan n Adequate support for sustainable development due to the exploration boom. n Governance, Risk Management n Staff succession planning

Whyalla City Council RATING STRATEGY n Regional Centre Zone n Industrial Land n Shacks

Whyalla City Council RATES INCREASE 6% WHAT IT REALLY MEANS n An overall increase in rate revenue n Individual Property Level –Category –Land Valuation –Rebate & Concessions n Other Charges –NRM Levy –Refuse Charge –Fixed Charge

Whyalla City Council VALUATION HOT SPOTS

Whyalla City Council RATE HOT SPOTS

Whyalla City Council RATE HOT SPOTS Type Site Value 06/07 Site Value 07/08 Rates06/07Rates07/08 % Change Business %-27.9%5.22% Industry %34.75%30.7% Resident %43.28%6.42% Shacks %38.26%30.37%

Whyalla City Council RATE RELIEF n Mandatory Rebates n Discretionary Rebates n Rate Capping n Remission and Postponement n Refuse Rate Concessions n Government Concessions