The City of West Torrens

2016/17Annual Business Plan Summary

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• Total operating expenditure = $51.39m

• Total capital expenditure = $25.91m

• Rate revenue = $53.39m

• Other revenue = $8.87m

• NRM levy = $1.26m

• Loans = $2.69m

• Operating surplus ratio = 20.4%

• Sustainability ratio = 103.3%

• Loan repayment percentage of rates = 0%

• Cash net of reserves = $27,168

2016/17 budget at a glance

This summary outlines the services and projects the Council plans to provide and implement in the 2016/17 financial year and the sources of funding.

Budget summary

Operational costs in the proposed budget (excluding depreciation expenses) have been contained to an increase of 1.1 per cent, despite:

• Waste collection and disposal costs increasing by $213,000 or 4.8 per cent over what was budgeted in 2015/16.

• The NRM levy, which Council collects for the State Government, increasing by $34,747 or 2.8 per cent.

• Employment costs increasing by $799,020 or 3.8 per cent.

Rate funded capital expenditure programs have been increased by $4.33 million or 26.5 per cent, with most of this increase supporting upgrades of ovals, parks and reserves, including Lockleys Oval and the Apex and Linear Parks.

Average rates will be increasing by 2.6 per cent in 2016/17.

An amount of $2.5 million has been budgeted for the stage 1 upgrade of Lockleys Oval and Apex Park, funded by savings from the discharge of loans using proceeds from the sale of the St Martins aged care facility.

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The strategic focus of Council

Key influences on the budget and annual business plan of the Council include:

• Sustainability - ensuring Council remains strong financially on a long term basis, and that future generations of ratepayers are not left to pick up the bill for work that should have been undertaken earlier.

• Asset management - ensuring a responsible, systematic and structured approach is taken to the maintenance, upgrade and operation of community assets, valued at $829 million.

• Stormwater flood mitigation - ensuring work is undertaken to minimise the impact of floods within the West Torrens community, including the impact of the Brown Hill / Keswick Creek system.

This focus is consistent with the Toward 2025 Community Plan of the Council which was adopted in September 2014.

A strategic focus is a must if long term issues are to be managed responsibly. Community assets must be protected and preserved for future generations to use and enjoy. Many of these assets have useful lives of 100 years, perhaps longer if managed appropriately.

Council’s 10 year planA 10 year approach has been taken to the budget, based on the strategic agenda of the Council and the need to address sustainability, asset management and stormwater flood mitigation priorities. Forward estimates have been compiled and they include plans over the next 10 years for:

• Capital expenditure to be committed to road and footpath infrastructure totalling $111.1 million (or $11.1 million per annum).

• Expenditure to be committed to drainage and other capital works totalling $115.6 million, including $24.9 million on flood mitigation works in the Brown Hill / Keswick Creek catchment.

• Capital expenditure to be committed to buildings, plant and equipment totalling $54.3 million, including $2.5 million to begin the redevelopment of Lockleys Oval and Apex Park.

• An amount of $44.75 million to be borrowed - a very manageable commitment by the Council with loan repayments as a percentage of rates estimated not to exceed 6.0 per cent.

Drainage works in Rutland Avenue, Lockleys.

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Other 21.9%

Plant 6.9%

Library 1.1%Buildings

11.3%

Drainage 18.5%

Roads 36.0%

Footpaths 4.3%

Capital expenditure - 10 years to 2025/26

$281 million during the next 10 years

It is estimated that capital expenditure will total $281 million over the next 10 years, and be committed as follows:

More detailed information is provided in the proposed budget and annual business plan for 2016/17, a copy of which is available on-line at westtorrens.sa.gov.au. Copies are also available for inspection in the Civic Centre and Hamra Centre Library.

Summary of key projects in 2016/17DrainageAn amount of $3.45 million is budgeted for further drainage and stormwater flood mitigation work to be undertaken including:

• $2.32 million in construction work associated with Lockleys catchment drainage (Rutland Avenue / May Terrace system);

• A $581,000 contribution toward various works associated with the Brown Hill / Keswick Creek project.

This is part of an ongoing drainage commitment over many years by Council and is largely loan funded.

Road maintenanceCouncil is responsible for 294 kilometres of local roads and 669 kilometres of kerbing, and is budgeting an amount of $5.46 million for the ongoing maintenance of this infrastructure, largely comprising road reseals and the replacement of kerbing and gutters.

Road reconstructionCouncil’s road reconstruction program totals $5.29 million, for the following roads to be upgraded:

• Aldridge Terrace, Marleston (Richmond Road to St Anton Street).

• Beauchamp Street, Kurralta Park (Barwell Avenue to Hare Street).

• Birdwood Terrace, North Plympton (Keith Avenue to Murdoch Avenue).

• George Street, Thebarton (South Road to Dew Street).

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• May Terrace, Brooklyn Park (Henley Beach Road to Sir Donald Bradman Drive).

• Mortimer Street, Kurralta Park (Gray Street to Grassmere Street).

• North Parade, Torrensville (Clifford Street to Stephens Avenue).

• West Thebarton Road, Thebarton (South Road to James Street).

Footpath programCouncil has responsibility for 626 kilometers of footpaths throughout the West Torrens area, and is budgeting $667,359 for replacement and new footpath construction, including remediation works.

Playground upgrade programCouncil’s playground upgrade program totals $665,000, with the following playgrounds scheduled for upgrade:

• Lyons Street Reserve, Brooklyn Park.

• Memorial Gardens, Hilton (additional funds for current project).

• Joe Wells Reserve, Netley.

• Kings Reserve, Torrensville.

Sport and recreation facility upgrades$2.89 million is being committed to the update and maintenance of other sport and recreation facilities throughout the area. Key initiatives include:

• $595,000 for projects along the River Torrens Linear Park.

• $640,000 to upgrade reserve irrigation systems to meet SA Water guidelines.

• $350,000 for other reserve works, which include upgrades for Golflands Reserve, Glenelg North, St George Avenue Reserve, Glandore and Oakmont Crescent Reserve, Novar Gardens.

• $600,000 for open space initiatives for Kings Reserve, Torrensville, Kesmond Reserve, Keswick, the River Torrens Linear Park (lighting) and streetscapes (Henley Beach Road and Sir Donald Bradman Drive).

• $500,000 to upgrade the wetlands and landscaping at Apex Park Reserve, West Beach.

Funding is being allocated for projects along the River Torrens Linear Park.

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Development, Regulatory and Waste

19.4%

Community Services 9.4%

Corporate and Governance

21.2%

Asset Maintenance/Management 50.0%

Operational expenditure 2016/17

Shared facilities and related fundingAn amount of $2.5 million has been budgeted for further shared community facilities and related development, with further funding of $5.0 million projected over the next two years. The funding is for the redevelopment of Lockleys Oval and Apex Park.

Building upgradesBuilding upgrades total $1.58 million and include:

• $325,000 for Thebarton Community Centre upgrade work;

• $255,000 for DDA compliance upgrades, which include the Reedbeds Community Centre and the Golflands’ complex building;

• $215,000 for building compliance upgrades;

• $200,000 for upgrade work associated with Star Theatre;

• $150,000 for Thebarton Theatre fire safety (stage four);

• $150,000 for portable toilet facilities.

Plant and equipment upgrades$1.81 million is being committed, after trade-in values, to upgrade plant and equipment, including trucks, tractors, motor vehicles and library resources.

Key services being maintained

Operational expenditure in 2016/17 has increased by $499,026 (1.0 per cent) compared with 2015/16 budget estimates.

The operational budget of the Council for 2016/17 is committed as follows:

Asset maintenance

Council has asset maintenance teams responsible for the following:

• Road maintenance.

• Landscaping.

• Tree maintenance.

• Grass maintenance.

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• Property and building maintenance.

• General maintenance.

Depot and property maintenance works expenditure is being increased to $12.4 million (up by 1.9 per cent).

Waste ManagementCouncil is budgeting to spend $4.76 million on waste management services in the 2016/17 financial year.

Costs have been impacted adversely by an estimated increase of $60,000 in the waste-to-landfill levy imposed by the South Australian government.

E-waste and hard-waste collection services will be offered again to all residential households in 2016/17, with the program against illegal dumping and food waste recycling initiatives to be continued.

The City of West Torrens has reduced its disposal to landfill by around 50 per cent since the introduction of recycling and green waste collection systems.

Library Services The Hamra Centre Library provides a range of information and related services to the community.

An amount of $2.6 million has been allocated in the 2016/17 budget for these services to be maintained.

Continuation of community care programs In recognition of the increased need for community-based personal care services for the elderly, frail aged and those with disabilities, Council has maintained its level of services with assistance from the state and commonwealth governments. This has included home assistance and maintenance support, and in-home personal support programs.

The budget allocation for 2016/17 is $604,531, although this is largely state and commonwealth government funded.

The Hamra Centre Library provides a range of programs and resources for families.

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Other community servicesOther services to the community involve a budget allocation in 2016/17 of $1.64 million and include:

• Community development programs and events.

• Community information and consultation.

These programs are partly supported by state and commonwealth government funding.

Council income

Key financial indicators are all positive in the 2016/17 budget, based on at 2.6% increase for minimum rates, non-residential rates and residential rates.

These increases provide the foundation for addressing long-term asset management and sustainability requirements.

Council’s operating statement in the proposed 2016/17 budget projects a surplus from operations of $10.87 million (operating income less operating expenses), and forward estimates project modest surpluses over the next 10 years. Asset sustainability ratios are better than break even, cash flow projections are strong and indebtedness levels are low.

Council relies heavily on rates to fund its community programs, rates being 85.8 per cent of the 2016/17 income budget, as shown in the pie chart on the following page.

Council provides a range of projects and programs for the community including a number of Community Gardens where residents can grow their own produce.

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Council Average rates Ratio

Walkerville $1,926 1.7%

Prospect $1,684 1.5%

Unley $1,683 1.5%

Mitcham $1,574 1.4%

Tea Tree Gully $1,498 1.3%

Norwood, Payneham $1,461 1.3%

Gawler $1,457 1.3%

Holdfast Bay $1,453 1.3%

Onkaparinga $1,425 1.3%

Playford $1,421 1.3%

Campbelltown $1,406 1.3%

Marion $1,399 1.3%

Charles Sturt $1,291 1.2%

Salisbury $1,226 1.1%

West Torrens $1,112 1.0%

Port Adelaide Enfield $967 0.9%

Average $1,532 1.4%

Source: LGA Survey

Other 1.9%

Statutory

charges 3.5%

Grants 6.7%User charges 2.1%

Rates and equivalent 85.8%

Income 2016/17

The City of West Torrens has the second lowest average residential rates in metropolitan Adelaide.

The average residential rates for West Torrens Council in 2015/16 were $1,112 - the second lowest in metropolitan area - as shown in the table below.

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Does Council have a rates windfall when property values increase?

The answer to this question is no - Council does not benefit from property value increases.

The following graph shows how rates in the dollar are reduced to compensate for increased property values, and so remove any windfall gain that might otherwise have occurred.

Year Loans % of rates Year Loans % of rates

2016/17 0.0 2021/22 3.3

2017/18 0.5 2022/23 3.9

2018/19 1.3 2023/24 4.5

2019/20 2.6 2024/25 5.0

2020/21 2.7 2025/26 5.5

Residential rates in the dollar and valuations

Year

Rat

e in

th

e $

Val

uat

ion

($b

illio

ns)

Loans

Council’s loan program for 2016/17 totals $2.69 million and is for drainage infrastructure.

Loan repayments expressed as a percentage of rates is the benchmark that is best used to assess Council’s indebtedness. Projected percentages for West Torrens are as follows:

These percentages are considered moderate and manageable.

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Rating options

Rating powers available to the City of West Torrens are established by state government legislation under the Local Government Act, and a number of flexibilities and options are available for consideration. These include:

• Site and capital valuation systems.

• Differential rating.

• Minimum rates.

• Fixed charges.

• Service rates/charges.

• Rate capping.

All options are reviewed in detail in the budget and annual business plan of the Council.

Character homes in Torrensville.

Planned rate increase

An overall average rate increase of 2.6 per cent is budgeted for 2016/17, which is marginally lower than that foreshadowed in the forward estimates of last year’s budget.

Rating policies

Council intends that inequities, hardship and significant rate increases within the community be managed using existing provisions of the Local Government Act that allow:

• Rates to be rebated (reduced) on a range of grounds, including to provide relief from what would otherwise amount to a substantial change in rates.

• Rates to be remitted (cancelled or reduced) or postponed if the payment of rates would cause hardship.

Council has a rating policy in place in support of these arrangements.

Rate postponement for seniors is mandatory following amendments to the Local Government Act 1999 and the Local Government (General) Regulations 1999.

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These changes mandate an entitlement to postponement if:

• The ratepayer holds a state seniors card or has an application pending when an entitlement exists;

• The property in question is the principal place of residence; and

• The property is owned by the principal ratepayer or the principal ratepayer and their spouse.

Applications are required in a manner and form to be determined by Council, and are only required to be submitted in the first year, rather than on an ongoing annual basis. The first $500 in rates cannot be postponed.

An application can only be rejected if capital liabilities associated with the property at the time of application exceed 50 per cent of the capital value of the land, based on current mortgages over the property that were registered prior to 25 January 2007.

NRM levy

Under state government legislation Council is required to collect a tax, totalling $1.26 million in 2016/17 on behalf of the state government, known as the natural resource management levy.

This is not part of Council’s rates and the amount collected is passed on in full to the state government.

The former site of Thebarton Neighbourhood House has been redeveloped into a landscaped reserve for local residents.

Attainment of objectives

Council’s objectives for 2015/16 were achieved as follows:

• New and replacement works were undertaken, including 4,826 square metres of footpaths, 9,158 lineal metres of kerbing and 91,547 square metres of road surface. The construction of one kilometre of roads was also completed.

• The installation of underground stormwater drainage in Ashley Street, Torrensville was completed at a cost of $300,000.

• The installation of underground stormwater drainage for $2.25 million in Rutland Avenue, Lockleys was completed.

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• The reconstruction of Brooker Terrace, Hilton (final stage) was completed at a cost of $240,000.

• Detailed concept plans were completed for the redevelopment of West Thebarton Road and Phillips Street, Thebarton.

• Detailed concept plans were completed for the redevelopment of West Beach Road, West Beach.

• The Lockleys Oval / Apex Park master plan was completed and detailed design work has commenced.

The City of West Torrens’ Road Safety Group continued to promote road safety awareness including a roll out of 50 km/h stickers in various suburbs for residents to place on their kerbside bins.

• The City of West Torrens’ Road Safety Group worked with the local community along with the assistance of the SA Police and the State Government, to promote road safety and awareness.

• The Torrensville / Thebarton Local Area Traffic Management Plan implementation commenced and the development of the Novar Gardens / Camden Park LATM Plan has commenced.

• The River Torrens Linear Park staged pedestrian lighting project was completed, which involved an upgrade to LED lighting between Frontage Road and Henley Beach Road, Lockleys.

• Improvements have been made to the shared pathway under Henley Beach Rd, along the River Torrens Linear Park in Lockleys.

• An ongoing staged upgrade occurred for the Reedbeds Community Centre building located on Fitch Road, Fulham.

• A new reserve was developed at 10 Falcon Ave, Mile End (the former site of the Thebarton Neighbourhood House).

• Satterley Hall at Lockleys Oval was upgraded, which included an all-access toilet facility and new fire compliant facilities.

• Various playgrounds were replaced, including those at Lockleys Oval, St Andrews Crescent Reserve, Graham Crescent Reserve, Mountbatten Avenue Reserve and Halsey Avenue Reserve.

• Ongoing reserve irrigation improvements were undertaken, which included work at Cummins Reserve, Myer Avenue Reserve, Mulga Reserve, the River Torrens Linear Park (various locations), Westside Bikeway Reserve and Hoylake Avenue Reserve.

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• The existing recycled water pipeline was extended to provide recycled water to reserves in Marleston, North Plympton and Plympton.

• Building work associated with the ticket box at Thebarton Oval was completed.

• Further fire compliance upgrade work was undertaken at the Thebarton Theatre complex.

• Lean thinking and cultural development programs progressed substantially.

• Council collected and recycled 7,683 tonnes of green waste in the last 12 months, along with 4,872 tonnes of recyclables.

• Council collected and disposed of 12,081 tonnes of waste to landfill in the past 12 months.

The playground at St Andrews Crescent Reserve was one of many replaced this year.

An ‘at call’ hard waste trial was implemented for local residents which offered two collections in 12 months.

• An at-call hard waste collection trial was launched from 1 October 2015 which to date has resulted in 4,900 collections and 743 tonnes of waste, 95 per cent of which is being diverted away from landfill. 758 mattresses have also been collected and recycled.

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• Further progress occurred with a scheme to divert food waste from the residual waste stream to the green organics waste stream.

• Council’s program against illegal dumping continued to achieve a removal rate by those responsible of 55 per cent.

• In the past 12 months, 52 per cent of waste for which Council is responsible was diverted away from landfill.

• E-waste and hard waste collection services occurred without charge to residents.

• Council Compliance staff investigated 2,004 complaints in the first nine months of 2015/16, most of which were animal and parking related.

• Parking permits were assessed and issued to 221 residents.

• In the first nine months of 2015/16, 54 dog attacks were investigated, 12 dog orders were issued and 210 dogs were picked up for wandering at large.

• 72 wasp and bee removals took place over the same period.

• In the first nine months of 2015/16, 10,222 parking expiations were issued, and 3,193 appeals / objections were determined.

• Over the same period, 443 properties were assessed for being a fire hazard, with 96 clean up notices issued along with 23 expiations.

Environmental Health Officers continued to conduct inspections of food premises and have introduced a food safety rating scheme.

• For the 12 months to 31 March 2016, 409 food premises were inspected and 41 food related complaints were investigated.

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• In the first nine months of 2015/16, Council has conducted 36 public immunisation clinics and delivered the school based immunisation program, administering 3,012 vaccines. A further 1,306 vaccines were also administered during the influenza season at public and workplace clinics.

• Council responded to 127 environmental nuisance complaints, which largely involved noise, dust, odour and stormwater pollution issues, in the first nine months of 2015/16.

• Council has introduced a food safety rating scheme for food businesses in its area.

• Mobile technology has been introduced to improve substantially the efficiency and effectiveness of regulatory field operations.

The Service Centre continued to be the first point of contact for many residents making enquiries to Council.

• Council’s Service Centre responded to almost 58,000 telephone calls and almost 23,000 payment transactions in the first nine months of the financial year.

• Council assessed 307 rate rebate and remission applications.

• The option to receive rate notices electronically via BPay View, rather than in paper form, was introduced, and 395 ratepayers are now dealing with Council in this way.

• Working collaboratively through an economic alliance of western region councils, Council committed to Building Western Adelaide, a document which identifies 15 major projects to stimulate jobs growth in the region.

• A number of other western region partnership projects were undertaken, including completion of the AdaptWest Western Region Climate Change Adaptation Plan and the Western Adelaide Regional Sports Facility Supply and Demand Study.

• Council advocated for the community’s interests in the development of the Housing Diversity Development Plan Amendment (DPA) Part 2 and, following its gazettal, publicised the new provisions extensively to ratepayers.

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• Council also made a number of submissions in relation to the state government’s planning reforms, as well developing responses to proposed Ministerial DPAs on middle and metropolitan urban infill corridors and activity centres.

• Investigations were undertaken towards the proposed Underdale and Torrensville Residential Interface DPA, including consultation with residents and businesses in the area.

• Implementation of the West Torrens Public Health Plan continued, with active participation in the first state-wide public health week including information, displays and community engagement activities.

• The water smart suburbs project and a program of community arts workshops were implemented, leading to the installation of public artwork at the Gardner Street raingarden, Plympton.

Council offered rebates to residents to build their own rain garden at home.

Photo: Melbourne Water

• Community support was provided through grants programs, including community and environmental grants as well as water tank and rain garden rebates.

• The Hamra Centre Library received more than 220,000 visitors and over 410,000 items were borrowed.

• The library’s literacy programs for preschool aged children ran 6 times per week with an average weekly attendance of over 400.

• School holiday programs were expanded to include nine OPAL “Little Days Out” at six different parks, attracting over 1,000 families.

• The Clifford Street Community Garden provided 19 additional raised beds with 26 active gardeners, complementing the well-utilized Plympton Community Garden. Over 200 enthusiastic residents have attended busy bees and information sessions throughout the year.

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• The Summer Festival offered the ever popular free family “Music in the Park” events throughout January attracting 3,500 people and 5,000 at the “Fork in the Road” event in February.

• Volunteering continued to be popular as a means of staying active and “connected” to the community. Council has maintained a 160 strong team of volunteers who provided 11,500 hours of service to the community.

• Community transport volunteers provided 2,972 hours of voluntary service allowing 12,699 passengers to access shops, doctors, banks, hairdressers, sporting and recreational outlets.

The annual Summer Festival was again a huge success.

Around 1,800 bookings were recorded for the year at Thebarton Community Centre.

• The Thebarton Community Centre was a facility in demand for weddings, large birthday gatherings, family parties and cultural gatherings, with approximately 1,800 bookings recorded for the year.

• Council delivered aged care cleaning and domestic assistance services to 1,118 eligible residents, $30,000 in home maintenance and modification services and 2,656 meals.

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WIN a travel voucher

• A consolidation of Council’s social media engagement saw an increase in social media traffic and followers.

• In the last 12 months Council received 1,506 residential development applications with an estimated value of $142 million, and 184 commercial and industrial development applications with an estimated value of $40 million.

• Over the same period Council completed 423 residential building code inspections, 46 commercial and industrial building code inspections and 29 swimming pool safety inspections.

• A paper free assessment of land division applications commenced.• Council has received and processed 1,679 Section 12 certificate

requests in the last 12 months.• Over the same period Council has received, investigated and

resolved 194 complaints about breaches of the Development Act.• Council has reviewed and provided feedback to the Officer for

Liquor and Gambling on 53 liquor licence applications in the last 12 months.

Early payment incentives

Early payment incentives are available again in 2016, in the form of three travel vouchers valued at $500 each. Rates must be paid in full by 1 September 2016 to be eligible for these prizes.

Council officials, employees and their immediate families are not eligible to enter.

The prize draw will take place at the 20 September 2016 Council meeting and the winners will be announced in Council’s newsletter Talking Points.

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A. 165 Sir Donald Bradman Drive, Hilton SA 5033P. 8416 6333 / F. 8443 5709E. csu@wtcc.sa.gov.au / W: westtorrens.sa.gov.au