Published on Thursday, 5 July 2018 at 3:37:28 PM
Your Council and the Shire Administration have been busy undertaking the annual review of the Corporate Business Plan and Annual Budget. The revised Plan was adopted by Council at the Ordinary Council Meeting on 26 June 2018 along with the 2018/19 budget.
CORPORATE BUSINESS PLAN
This Corporate Business Plan captures what the Shire will do over the next 4 years. It establishes measurable actions for the Shire to work towards achieving the goals and outcomes of the Strategic Community Plan. It identifies the priorities of the community and details current services, future operations and projects expected to be undertaken by the Shire over the next four years. As part of the review the community were invited to provide ideas and feedback for the future.
The Corporate Business Plan is presented in four Focus Areas which are the pillars of the plan – People, Place, Prosperity and Governance. The first year of the Corporate Business Plan becomes the detailed Annual Budget.
Some of the priority actions in the Plan for next year include developing a CCTV network in the town centres of Kununurra and Wyndham, improving lighting and footpaths, maintaining our extensive road network, supporting economic development opportunities at Wyndham Airport, renewing and upgrading playgrounds in Wyndham and Kununurra, delivering the Trails Master Plan and caring for our ovals, parks and gardens.
BUDGET
The 2018-19 Budget has been developed within a strategic financial planning framework after due consideration of Community priorities and the resource allocation requirements of these priorities.
The process for the development of the 2018/19 Budget is in alignment with both the Corporate Business Plan 2018/19 - 2021/22 and the Shire’s Strategic Community Plan 2017-2027.
The Budget is the primary means for a local government to manage and allocate its financial resources. The budget also provides the ability to impose rates, which is one of the primary means for a local government to raise income to fund the services the Shire is required to deliver.
RATES
Shire rates for the 2018/19 year have been influenced by two major factors. Firstly rate yield, and this year Council approved a 0% rate yield increase. This meant that the amount of rates that each of the differential rating categories contributed to the total rate revenue was approximately the same as the 2017/18 financial year.
The second factor was that the Shire had a revaluation of Gross Rental Value properties by the Valuer General. The revaluation decreased values in each of the GRV categories so the rate in the dollar increased to compensate in order to achieve the same gross yield. Furthermore, the properties within each GRV category had a range of value reductions. Those properties that decreased by more than the average for their category will experience a rate reduction and those properties that decreased by less than the average for their category will experience a rate increase for the 2018/19 financial year.
The rates modelling indicates that of the 2768 rateable properties, 1102 would experience a rate increase and 1666 experience a rate decrease. Of the 1,102 who had an increase, 945 had an increase of less than $300 ($5.77 per week)
OPERATIONS
The proposed budget aims to raise $21.7m (2017/18 - $21.4m) in operating revenue. This is a small increase due in the main to the Shire adopting a 0% rate yield for the year and the Shire being more cautious on its potential revenue streams.
Budgeted Operating Expenditure is expected to reduce from $27.9m in 2017/18 to $26.6m in 2018/19. This is a reduction of $1.2m. This is a positive outcome especially in the light of an estimated 1.8% increase in the Local Government Cost Index projected for 2018/19.
The difference between Operating Income and Expenditure for the two years shows that the budgeted operating deficit is reducing. This deficit is more structural in nature and does not impact on the overall cash position of the Shire. After adjusting for the advance payment of the Commonwealth Federal Assistance Grants (FAG’s the budgeted operating deficit in 2018/19 would be $3.0m (2017/18 - $4.5m and 2016/17 - $6.6m). This is an improvement of $1.5 million over the prior year and $3.6m from 2016/17.
CAPITAL WORKS
Non-operating income has reduced from $11.7m in 2017/18 down to $8.5m due to the West Australian Natural Disaster Relief and Recovery Arrangements (WANDRRA) works in the 2017/18 year being substantially completed. This has been partially compensated for by an increase in the Roads to Recovery funding.
The Shire will undertake a $13.3m capital works program consisting of 38 projects. These projects ensure that the Shire is renewing its asset base in order that the assets can continue to provide the services to the Community. Of note in the program is the CCTV project to promote community safety, drainage works in Bandicoot Drive, cathodic protection for the jetty at Anton’s Landing, play space renewals and a footpath construction and renewal program.
RESERVES
A net amount of $2.9m will be transferred from the Shires Reserves to support the Shires operations. The major portion of this will fund capital works projects. Total reserves is predicted to be $10.4m at the end of the budget period all of which will be backed by cash.
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