1. Whyalla City Council 2008-2009 DRAFT BUDGET OVERVIEW

2. 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

3. 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.

4. Whyalla City Council ACHIEVEMENTS 2007 - 2008

5. 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

6. 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

7. Whyalla City Council CAPITAL PROJECTS

8. 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

9. 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

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

11. Whyalla City Council COMMUNITY n New format for WCN news

12. 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

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

14. 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

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

16. Whyalla City Council TOURISM & VISITATION

17. Whyalla City Council 2008/2009 THE CHALLENGES AHEAD

18. 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

19. 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

20. 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

21. 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

22. 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%1031279485%108% 09/10 10/11 10/11Target

23. Whyalla City Council OPERATING STATEMENT Operating Revenue08/0907/08 n Rates9,347 8,523 n Other Rates1,818 1,524 n Statutory Charges438 372 n User Charges3,069 2,300 n Operating Grants & Subsidies4,975 5,015 n Investment Income210 186 n Reimbursements131 290 n One Steel Ex-Gratia584 ---- n Other792 728 n Total Operating Revenue21,36418,938 $000 $000

24. 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%

25. 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 439 339 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

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

27. 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

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

29. 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

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

31. 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

32. 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

33. 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

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

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

36. 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

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

38. 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

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

40. 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

41. 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

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

43. 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

44. Whyalla City Council VALUATION HOT SPOTS

45. Whyalla City Council RATE HOT SPOTS

46. Whyalla City Council RATE HOT SPOTS Type Site Value 06/07 Site Value 07/08 Rates06/07Rates07/08 % Change Business3250054000130006500070000260002311365110962464263211546.61%-27.9%5.22% Industry17900026500160003600005300032000868215291037123762061135542.55%34.75%30.7% Resident650004850018500840001180003200010948895169871274549-9.74%43.28%6.42% Shacks100000960008000014000012600010000041540938959856650744.22%38.26%30.37%

47. 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