1. Municipal Association of Victoria Rate Cap Forum 25th November 2015
Ian Mann
CT Management Group

2. COUNCIL FINANCES
Rates & Charges - $5,203 million
Employee Costs - $3,208 million
Materials and Services - $2,444 million

3. 17 Councils show future rate increase at less than 3%
RATE CAP IMPACT
Forecast Max Rate Increase
(16/17) (17/18) (18/19)
3.05% % %
2015/16 – SRP
17 Councils show future rate increase at less than 3%
Remaining Councils retained rate increases on average at ~5%
Assumption: Rate increases 5% pa - Rate cap 3.05%, 2.85%, 2.80%, 2.75%..
Impact: Year 4 – 9% reduction
Year 10 – 21% reduction
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4. Salaries and Wages CONTEXT Employee Cost growth next 4 years (pa) 4.1%
Rate Impact of Employment growth (pa)
2.6%
Capital Works
2015/16 Budget
($,000)
Renewal
$1,088,874
New, Upgrade, Expansion
$1,268,032
Total Capital Works
$2,356,906
Additional Expense - New CW – Depreciation (1.8%)
$22,824
Additional Expense - New CW – Operations and Maintenance (1.2%)
$15,216
Total Additional Expenses
$38,040
Impact on Rates – New Cap Works
0.73%
Total Percentage of Rates
– Salaries & New Cap Works
3.33%

5. FINANCIAL SUSTAINABILITY ASSESSMENT
Services
(??)
LTFP
Assets
(AM Plans
Renewal Programs
CW Programs)
Management Approaches
Revenue Management (seek additional income)
Expenditure Management (drive efficiencies)
Service Management (service delivery options)
Asset Management (renewal, new, upgrade)

6. SUSTAINABLE SERVICE DELIVERY KEY QUESTIONS
What are the current range of services that Council provides to the community?
Is Council delivering the most appropriate level of service to the community within its financial capacity?
Is Council delivering these services in the most efficient manner?
Is the current service delivery model sustainable?
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7. SERVICE MANAGEMENT OPTIONS
Capacity to deliver services in a revenue constrained environment $
All Services
Discretionary Services
“like to do”
Efficiency Gains
Business as Usual
Preferred Services
“should do”
Mandatory Services
“must do”
Time
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8. FINANCIAL PLANNING INFORMATION
Services
Capital Works
(New/Upgrade)
10 yr CW Program
Asset Renewal
LTFP
SRP
LTFP 1 5 10 15
YEARS

9. SERVICE AND FINANCIAL MANAGEMENT FRAMEWORK
COUNCIL PLAN
Financial Sustainability
Service Management
Service Strategies
Strategic Resource Plan
Service Plans
Long Term Financial Plan
Service Operations
Capital Works (New, Upgrade, Expansion)
Capital Works Evaluation
Capital Works Program
Asset Management
AMP (Roads)
AMP (Drainage)
Capital Works (Renewal)
AMP (Buildings)
Infrastructure Operations & Maintenance
AMP (Bridges)
AMP (Open Space)

10. SERVICE PLANNING FIT Financial Sustainability Service Management
COUNCIL PLAN
Financial Sustainability
Service Management
Service Strategies
Strategic Resource Plan
Service Planning
Service Plan Reviews
Long Term Financial Plan
Service Comparative Choice Evaluation
Service Summaries
Service Operations
Capital Works (New, Upgrade, Expansion)
Capital Works Evaluation
Capital Works Program
Asset Management
AMP (Roads)
AMP (Drainage)
Capital Works (Renewal)
AMP (Buildings)
Infrastructure Operations & Maintenance
AMP (Bridges)
AMP (Open Space)

11. SERVICE PLANNING Stage 1 - Current Position Stage 2 - Options
Summarize details of all current Services
Define current Levels and Cost of Services
Prepare draft LTFP
Review capital works and services cost impact on LTFP
Assess financial sustainability of current Services
Stage 1 - Current Position
Review alignment of current services with community needs
Internal review of the Levels of Service for each Service
Develop comparative options to improve alignment
Stage 2 - Options
Community and customer engagement on comparative choice options between services and within services
Identify services for review
Resolve associated affordability tradeoffs
Stage 3 - Consultation
Document revised Levels of Service
Stage 4 - Revised Levels of Service
Review efficiency of service delivery for each service
Revise Operations Plan for each Service
Train staff on new programs and processes
Stage 5 - Prepare to Implement
Develop performance indicators to monitor changed Levels of Service and performance
Communicate changes to the community and service customers
Implement new service levels
Stage 6 - Implementation

12. SERVICE PROFILE
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13. RELATIVE IMPORTANCE
Self Assessment Community Surveys

14. All Council Services COMPARATIVE CHOICE Parks ICT Road Maintenance
High
Relative Importance
Low
Stage 1 – Summary Service Profile for each Service (Tactical Level)
Parks
Parks
ICT
ICT
Road Maintenance
Road Maintenance
Youth Services
Youth Services
Environmental Health
Environmental Health
Regulatory Services
Regulatory Services
Children’s Services
Children’s Services
Aerodrome Management
Aerodrome Management
Aged Services
Aged Services
Statutory Planning
Statutory Planning
Other Services
Other Services
Later Stage - Detailed Service Plan for each Service (Operational Level) -Efficiency
All Council Services
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15. FINANCIAL FORECASTS

16. FINANCIAL FORECASTS

17. CAPITAL / ASSETS

18. LONG TERM FINANCIAL PLAN Can Council sustain its current range of services at the current level of service?
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19. STANDARD REPORTING

20. PROCESS Service Profiles Integrated Solution
Community Input
Service Profiles
“Profile” of each Service
(Contextual Information)
Understand Current Position
Investigate Options
(Co-design)
Decide on a course of Action
Assessment of each Service
(Relative Importance)
Integrated Solution
LTFP
(10yr)
Services
($ Forecasts)
Service provided
(Co-produce options)
Capital Works Program
New, upgrade expansion
($ Forecasts)
Asset Renewal
($ Forecasts)
Understand what you do, what it costs and the benefits to the community

21. With this framework you will:
Have a better understanding of the services that your Council provides
Have a strong foundation on which to engage with the community on a range of options
Be in a better position to make sound comparative choice decisions which provide the best outcomes for your community
Move towards a much stronger customer outcome focused organisation

22. End
Ian Mann
CT Management Group