Draft Budget 2018-2019

106 Pages·2017·4.79 MB·English

Greater Shepparton City Council
Budget Report – 2016/2017
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CONTENTS
Mayor's Introduction 1
Budget Reports _    __
1. Link to the Council Plan 4
2. Services and Service Performance Indicators 7
3. Financial Statements 20
4. Notes to the Financial Statements 27
5. Financial Performance Indicators 51
Appendices __
A   Fees and charges schedule 54
B   Differential Rates 91
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Mayor’s Introduction
The Councillors and I are pleased to release the Draft Budget 2018/2019 to the 
Greater Shepparton Community. This budget builds on our Council Plan 2017‐
2021 vision which focuses on the following five key areas:
•Leadership and Governance
•Social
•Economic
•Built
•Environment.
The draft budget details the resources required over the next year to fund the 
large range of services we provide to the community. It also details the funding 
sources required for improving and renewing Council's physical infrastructure.
The underlying financial principles of this draft budget and for the organisation going forward are to:
a)generate an operating surplus
b)fully fund asset renewals
c)borrow responsibly.
All 3 principles have been applied in the 2018/2019 draft budget which is a significant achievement.
As Councillors, it is our job to listen to community sentiment and understand your priorities. Our focus for the next year is 
to deliver on the projects and services that make our municipality a great place to live and respond to the challenges we 
are currently facing. These projects include:
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•Beginning construction of the new Shepparton Art Museum
•Continuing the construction of Cosgrove 3 landfill
•Growing the One Tree per Child program
Rate increases have been capped at 2.25 per cent in line with the Fair Go Rates Systems (FGRS). Despite the financial 
challenge this poses, Council has elected not to apply to the Essential Services Commission (ESC) for a variation. A great 
deal of work has been completed by council officers to identify operational savings and efficiencies to align with the 
proposed 2.25 per cent increase. 
During February 2018 Greater Shepparton City Council proposed a change to the number of rating differentials for the 
2018/2019 financial year. A number of community information and feedback sessions were held, combined with a mail out 
and online survey to inform ratepayers and capture feedback. The majority of feedback indicated support from ratepayers 
on the proposed option which is aimed at making Greater Shepparton City Council's rating strategy easier to understand, 
simpler to administer while maintaining fairness for all ratepayers.
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The following provides a statistical snapshot of the 2018/2019 draft budget:
Total Revenue  $140.42 million (2017/2018 forecast = $129.95 million)
Total Expenditure $124.61 million (2017/2018 forecast = $119.6 million)
Accounting Result $15.8 million surplus (2017/2018 forecast = $10.35 million surplus)
(Refer Comprehensive Income Statement in section 3)
Adjusted Underlying Operating Result $1.69 million surplus (2017/2018 forecast = $1.31 million deficit)
(Refer Notes to the Financial Statements section 4)
Note: Underlying operating result is an important measure of financial sustainability as it excludes income which is to be 
used for capital, from being allocated to cover operating expense.
Cash Result $7.11 million deficit (2017/2018 forecast = $3.84 million deficit)
(Refer Statement of Cash Flow in Section 3)
This is the net funding result after considering the funding requirement to meet loan principal repayments and the reserve 
transfers
Capital Works Program $49.69 million (2017/2018 forecast = $35.12 million)
 ‐ $37.58 million from Council operations
 ‐ $12.11 million from external grants and contributions
In this budget we have allocated funding of $35.16 million for asset renewals, upgrades and expansions. The proposed 
budget also funds $14.52 million for new assets. Highlights of the capital program include:
• Roads ($18.63 million) – including roads for renewal program, Welsford St Upgrade, Maude Street Upgrade, and Road 
Sealing Program 
• Buildings ($12.36 million) ‐ including the construction of the new Shepparton Art Museum
• Waste Management ($5.51 million) ‐ including the construction of Cosgrove 3 Landfill
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Expansion
$2.47m 
5%
Upgrade
$7.34m 
15% New
$14.52m 
29%
TOTAL 
2018/2019 
CAPITAL WORKS 
$49.69m
Renewal
$25.35m 
51%
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Below provides an indication of how Council allocates it's expenditure across the main services it delivers. It shows how 
much is allocated to each service area for every $100 that Council spends.
$9.09 $2.7 $3.68
Aged and  Arts and Libraries Building and
Children's Planning
$30.57 $3.06 $0.92
Capital Works Community Environmental
Development Management and
Drainage
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$14.28 $3.04 $9.9
Governance and Health, Animals, Law,  Maintaining Community 
Administration Order and Safety Facilities and 
Assets
$8.25 $4.85 $9.66
Recreation, Aquatics Tourism and  Waste Services
 and Public  Economic 
Open Spaces Development
The proposed budget was developed through a rigorous process of consultation and review and Council endorses it as 
financially responsible. I encourage you to read the remainder of this document, in conjunction with our revised Council 
Plan 2017‐2021.
Cr Kim O'Keeffe
MAYOR
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1. Link to the Council Plan
ThissectiondescribeshowtheAnnualBudgetlinkstotheachievementoftheCouncilPlanwithinanoverallplanningandreporting
1. Link to the Council 
framework. This framework guides the Council in identifying community needs and aspirations over the long term, medium term
(Council Plan) and short term (Annual Budget) and then holding itself accountable (Annual Report).
Plan
This section describes how the Annual Budget 
links to the achievement of the Council Plan 
within an overall planning and reporting 
framework. This framework guides the Council 
in identifying community needs and aspirations 
over the long term, medium term (Council 
Plan) and short term (Annual Budget) and then 
holding itself accountable (Annual Report).
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1.1  Planning and accountability framework
The Strategic Resource Plan, part of and prepared in conjunction with the Council Plan, is a rolling four‐year plan that
outlines the financial and non‐financial resources that Councilrequires to achieve the strategic objectives described inthe
Council Plan.  The Annual Budget is framed within the Strategic Resource Plan, considering the services and initiatives which 
contribute to achieving the strategic objectives specified in the Council Plan. The diagram below depicts the planning and
accountability framework that applies to local government in Victoria.
Source: Department of Environment, Land, Water and Planning
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In addition to the above, Council has a long term plan (Greater Shepparton 2030) which articulates a community vision,
mission and values.  The Council Plan is prepared with reference to Council's long term Community Plan.
The timing of each component of the planning framework is critical to the successful achievement of the planned
outcomes. 
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1.2  Our purpose
Our vision
Greater Shepparton, Greater Future, a thriving economy in the foodbowl of Victoria with excellent lifestyles, innovative
agriculture, a diverse community and abundant opportunities.
Our values
Greater Shepparton City Council has a clear strength in the bond and affinity between its Councillors, the community and
staff. Staff support the community leadership and governance role of Councillors, and work together to achieve the
commitments of the Council Plan. Having all Greater Shepparton City Council staff practise the following organisational
values enhance the quality of this partnership:
∙           Respect first, always ‐ We are attentive, listen to others and consider all points of view in our decision making.
∙           Take ownership ‐ We take pride in honouring our promises and exceeding expectations, and are transparent with
and accountable for our actions.
∙           Courageously lead ‐ We lead with integrity, and stand by what is in the best interests of the Greater Shepparton
community.
∙           Working together ‐ We work collaboratively to create higher quality outcomes that are more efficient, thoughtful,
effective and responsive. We cannot accomplish all that we need to do without working together.
∙          Continuallyinnovate‐Weareopentonewideasandcreativelyseeksolutionsthatencourageuptodoourbestfor
our community.
∙           Start the celebration ‐ As ambassadors for our people and place, we proudly celebrate the strengths and
achievements of Council and the Greater Shepparton community.
1.3  Strategic objectives
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Council delivers activities and initiatives under 5 major service categories. Each contributes to the achievement of one of
the five Strategic Objectives as set out in the Council Plan for the 2017 ‐ 2021 years. The following table lists the five
Strategic Objectives as described in the Council Plan.
Strategic Objective Description
Leadership and Governance Provide strong civic leadership, advocacy and good governance in the operation
of Greater Shepparton City Council.
Social Develop resilient, inclusive, healthy communities that make Greater Shepparton
a safe and harmonious place to live, work, learn and play.
Economic Build a thriving, resilient economy where Greater Shepparton is recognised as a
competitive place to invest and grow business.
Built Provide and support appealing relevant infrastructure that makes Greater
Shepparton an attractive, liveable regional city.
Environment Enhance and protect the clean, green environment that makes Greater
Shepparton the unique place it is.
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2. Services and Service Performance Indicators
2. Services and Service 
ThissectionprovidesadescriptionoftheservicesandinitiativestobefundedintheBudgetforthe2018/2019yearandhowthese
will contribute to achieving the strategic objectives outlined in the Council Plan. It also describes several initiatives and service
Performance Indicators
performance outcome indicators for key areas of Council’s operations. Council is required by legislation to identify major
initiatives,initiativesandserviceperformanceoutcomeindicatorsintheBudgetandreportagainstthemintheirAnnualReportto
supporTthtisr asnescptiaorne npcryovaidneds aac dceosucnrtipatbiiolinty o.fT thhee relationship between these accountability requirements in the Council Plan, the
services and initiatives to be funded in the 
Budget and the Annual Report is shown below.
Budget for the 2018/2019 year and how these 
will contribute to achieving the strategic 
objectives outlined in the Council Plan. It also 
describes several initiatives and service 
performance outcome indicators for key areas 
of Council’s operations. Council is required by 
legislation to identify major initiatives, 
initiatives and service performance outcome 
indicators in the Budget and report against 
them in their Annual Report to support 
transparency and accountability. The 
relationship between these accountability 
requirements in the Council Plan, the Budget 
and the Annual Report is shown below.
Source: Department of Environment, Land, Water and Planning
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