Community Information Evening Draft MOSPLAN 2013 2023 Draft Budget - PowerPoint PPT Presentation

Community Information Evening Draft MOSPLAN 2013 – 2023 Draft Budget 2013 – 2014

Welcome & Introduction Councillor Peter Abelson, Mayor

Integrated Planning & Reporting Di Lawrence, Director Community Development

Integrated Planning & Reporting • MOSPLAN History & Purpose • MOSPLAN Elements • Community Strategic Plan • Resourcing Strategy – incl. 10 yr financial forecasts • Resourcing Strategy – incl. 10 yr financial forecasts and budget commentary • Delivery Program & Operational Plan – incl. 4 year and 1 yr budgets • Planning AND Reporting

Integrated Planning & Reporting

Integrated Planning & Reporting Key MOSPLAN Priorities • Maintaining High Quality Services • Customer Service focus • Preserving Residential Amenity & Local Character • Preserving Residential Amenity & Local Character • High Quality Community Spaces • Conserving our Natural Environment • Tackling Infrastructure Challenges • Traffic & Parking • Financial Sustainability

Mosman’s Long Term Financial Sustainability Mark McDonald, Chief Financial Officer

Mosman’s Long Term Financial Sustainability • 10 Year financial model underpins the Community Strategic Plan • Developed by using current base year data and applying projected movements in a number of key drivers over its life • Key Revenue Assumptions: • 2013/14 Rates (IPART) 3.4% (Av Rate up by $37pa) • Model uses 3% over its life • • Storm water Levy $25 per dwelling/$12.50 strata (first time) Storm water Levy $25 per dwelling/$12.50 strata (first time) • User Charges & Fees 3% • Interest & Investment Revenue (4.50% to 5.50% in 2020/21) • Other Revenues-includes Investment Properties 3%, regulatory income 1% • Grants & Contributions/Operating – Community Services 3% • Grants & Contributions/Capital – S94A

Mosman’s Long Term Financial Sustainability Key Expenses Assumptions: • Employee Benefits & On Costs-Local Gov’t Award-next 2 years 3.25% increase (this being used over the model’s life) Superannuation Guarantee Levy 9.25% in 13/14 to 12% in 18/19 • • Borrowing Costs-All existing & projected loans Borrowing Costs-All existing & projected loans • Materials & Contracts-Major contracts such as Waste, S&G Cleaning, Beach & Reserve, Amenity & Building Cleaning, Engineering/Open Space contracts all impacted by Sydney Allgroups CPI • Depreciation & Amortisation-significant impact/work being done • Other Expenses-Advertising, Insurance, Postage, Telecommunications-CPI

Mosman’s Long Term Financial Sustainability General Assumptions (include): • Continuation of existing 5% Environmental Levy from 17/18 – Submission to IPART • Local Government Infrastructure Renewal Scheme – Round 2 ($2M) • • Loan repayments for LIRS (within model) funded by Loan repayments for LIRS (within model) funded by increased parking income • Large capital allocations from S94 Reserve & Domestic Waste Reserve between 2014/2015 & 2022/2023 (if required) • No allocation of funds for the Raglan St car park development

Mosman’s Long Term Financial Sustainability Income Statement Positive net operating results post 12/13 largely resultant from: • Parking Income • Storm water Levy • Income from advertising on Bridgepoint Bridge • Continuation of CEC Levy post its expiration (to Infrastructure) Infrastructure) • The majority of the expenditure associated with these revenue streams is via the Balance Sheet

Mosman’s Long Term Financial Sustainability Balance Sheet • Projections provide for a strong Balance Sheet (Equity in excess of $462M in 13/14-largely based on Non Current Assets • All Assets –Fair Value • Loan Liability – $11M at 30/6/13 reduces over life of model, with Council debt free 21/22 with Council debt free 21/22 • All Employee Provision liabilities accounted for with adequate cash funding-look to target around 20% coverage (17.25% currently)

Mosman’s Long Term Financial Sustainability • Cash Flow Statement-provide for positive movement throughout its life with only 2 occasions (based on significant capital spend from Reserve) negative result 16/17 & 19/20 Key Performance Indicators for discussion: • Unrestricted Current Ratio (UCR) • • Debt Service Ratio (DSR) Debt Service Ratio (DSR) • Rates Coverage • Rates Collection • Building & Infrastructure Coverage

Proposed Storm water Spend via Location

Existing and Required Funding with Levys $14,000 Planned/Current Renewal and Maintenance Expenditure $12,000 Required Renewals and Maintenance Expenditure 2012/13 $2mil Government Loan $10,000 $000's 2013/14 $2mil Government Loan $8,000 2015/16 Signage Levy 2016/17 Infrastructure Levy Loan 2016/17 Infrastructure Levy Loan $6,000 Repayment for 2008 Balmoral Baths restoration works complete $4,000 2017/18 Expansion of CEC Levy 2019/20 $2mil Government Loan $2,000 Repayment Complete 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 3 4 5 6 7 8 9 0 1 / / / / / / / / / / 1 1 1 1 1 1 1 2 2 2 3 4 5 6 7 8 9 0 1 2

Council’s Objectives: MOSPLAN & Budget Overview Councillor Peter Abelson, Mayor

Objectives of session • Provide general overview of finances • Describe 2013-14 budget strategy • Discuss Treasury Corporation findings • Invite questions / discussion on major issues • Take note of more detailed comments for Council / staff consideration

Income Statement-2011/2012 to 2013/2014 11/12 12/13 13/14 REVENUE $’000 $’000 $’000 Rates & Annual Charges 21,041 21,734 22,723 User Charges & Fees 7,986 8,764 9,057 Interest 434 396 470 Other Revenues 3,569 3,550 3,668 Operating Grants & Contributions 2,842 2,266 2,065 Capital Grants & Contributions 3,167 2,643 1,914 Share of Joint Ventures 114 Nil Nil Gain on Asset Sales Nil Nil Nil TOTAL TOTAL 39,153 39,153 39,353 39,353 39,897 39,897 EXPENDITURE Employee Benefits 14,181 14,809 15,269 Borrowing Costs 672 662 627 Materials & Contracts 10,875 11,485 11,839 Depreciation & Amortisation 6,890 6,797 6,797 Other Expenses 6,289 5,617 5,306 Net Losses from Asset Sales 57 Nil Nil TOTAL 38,964 39,370 39,838 Net Operating Result for Year 189 (17) 59 Net Operating Result Before Capital (2,978) (2,660) (1,855)

Balance Sheet-2011/2012 to 2013/2014 11/12 12/13 13/14 ASSETS Current Assets Cash & Cash Equivalents 3,609 4,869 5,488 Investments 2,750 2,750 2,750 Receivables 3,016 2,574 2,539 Inventories 162 175 180 Other 102 149 149 Total Total 9,639 9,639 10,517 10,517 11,106 11,106 Non Current Assets Receivables 49 84 88 Infrastructure, Property/Plant 432,073,000 432,563,861 431,907,246 Investments using Equity Method 635 599 563 Investment Property 41,078 41,078 41,078 Intangible Assets 344 344 344 Total 474,179,000 474,669,155 473,980,377 Total Assets 483,818,000 485,185,978 485,086,745

Balance Sheet-2011/2012 to 2013/2014 11/12 12/13 13/14 LIABILITIES Current Liabilities Payables 7,288 7,392 7,216 Borrowings 1,669 2,057 2,063 Provisions 3,944 4,170 4,242 Total 12,901 13,619 13,521 Non Current Liabilities Non Current Liabilities Borrowings 8,406 9,138 9,075 Provisions 115 139 142 Total 8,611 9,278 9,217 Total Liabilities 21,512 22,897 22,738 EQUITY 462,306,000 462,289,204 462,348,379

Major Revenue Components (13/14) • Rates & Annual Charges $22,723,213 • General* $16,865,661 • Residential $15,276,765 (91%) • Business $ 1,588,896 (9%) • Stormwater Levy (capex) $ 240,625 • Waste $ 5,616,927 *(Includes CEC & Infrastructure Levy & is net of pension rebates & council properties)  Note we are primarily a residential area not a business centre

Major Revenue Components (13/14) User Charges & fees $9,057,591 Includes: • Car Parking (On Street) $1,930,000 • Property Rents $1,747,130 • Car Parking (Foreshore) $1,153,000 • • Children’s Services Programs Children’s Services Programs $ 768,000 $ 768,000 • Development Assessment $ 765,000 • Road & Footpath Restorations $ 375,000 • Ovals & Reserves Rents $ 310,000 • Car Parking Sticker $ 220,000 • Work/Construction Zone $ 200,000 • Hoarding $ 175,000 • Other $1,414,461

Major Revenue Components (13/14) Grants & Contributions (Operating) $2,064,945 Includes: • Financial Assistance - General $ 605,000 • Aged Services Programs $ 545,818 • Financial Assistance - Local Roads $ 225,000 • • Waste & Sustainability Waste & Sustainability $ 165,000 $ 165,000 • Roads Maintenance & Education $ 150,500 • Pension Rebate $ 90,750 • Art Gallery $ 80,000 • Children’s Services Programs $ 56,627 • Per Capita-Library $ 54,000 • Other $ 92,250