Town of Gawler 2017/18 Budget Business Plan · 2017/18 ($78,000) ($759,000) $681,000 All other Councils’ will be similarly affected by their advance grant payment being received

Town of Gawler

2017/18 Budget Business Plan (Incorporating annual review of Long Term Financial Plan)

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Version Control: Version 3 – Adoption Version – 27 June 2017 Version Control: Version 2 – Public Consultation Version – 26 April 2017 Version Control: Version 1 – Special Council meeting – 18 April 2017

Front cover photo: new Town of Gawler Administration Centre, 43 High Street, Gawler East.

CONTENTS 1 MAYOR’S MESSAGE……………………………………………………………………… 4 2 OVERVIEW…………………………………………………………………………………. 6

2.1 Operating Result……………………………………………………………………….. 6 2.2 Financial Position………………………………………………………………………. 7 2.3 Growth Management considerations…………………………………………………. 8 2.4 Gawler East Development / Separate Rate Proposals…………………………….. 15 2.5 2017/18 Federal Budget impact………………………………………………………. 17 2.6 Community Support……………………………………………………………………. 17 2.7 State Government imposed rate capping……………………………………………. 18

3 GAWLER COMMUNITY PLAN……………………………………………………………. 20 4 PROJECTS & SERVICES FOR THE YEAR……………………………………………... 22

4.1 Capital Works & New Initiatives……………………………………………………….. 22 4.2 Council Services……………………………………………………………………….. 24

5 MEASURING OUR PERFORMANCE……………………………………………………. 27 5.1 Financial Measures…………………………………………………………………….. 27 5.2 Non-Financial Measures………………………………………………………………. 29

6 FUNDING THE BUSINESS PLAN………………………………………………………... 30 6.1 Operating Revenue…………………………………………………………………….. 30 6.2 Operating Expenditure…………………………………………………………………. 31

7 RATING STRATEGY………………………………………………………………………. 32 7.1 Strategic Rating Policy…………………………………………………………………. 32 7.1.1 Property Valuations………………………………………………………………… 32 7.1.2 General Rates………………………………………………………………………. 32 7.1.3 Separate Rates……………………………………………………………………... 33 7.1.4 Service Rates & Charges………………………………………………………….. 33 7.1.5 Withholding of Discretionary Rate Rebates for Commercial Properties in a

state of neglect……………………………………………………………………… 34

7.2 Expected Impact on Ratepayers……………………………………………………… 34 7.2.1 Differential General Rates…………………………………………………………. 34 7.2.2 Separate Rates……………………………………………………………………... 35 7.2.3 Service Charges……………………………………………………………………. 36 7.3 Assistance Available…………………………………………………………………… 36 7.3.1 Rebates of Rates…………………………………………………………………… 36 7.3.2.Remission of Rates………………………………………………………………… 36 7.3.3 Postponement of Rates – Seniors……………………………………………….... 36 7.3.4 Rate Capping……………………………………………………………………….. 37 7.3.5 Rate Payment Options……………………………………………………………... 37 7.3.6 Alternative Payment Arrangements………………………………………………. 37

8 FINANCIAL STATEMENTS……………………………………………………………….. 38 9 LONG TERM FINANCIAL PLAN………………………………………………………….. 45

9.1 Overview………………………………………………………………………………... 45 9.1.1 Open Space Management……………………………………………………….. 45 9.1.2 Gawler East Development………………………………………………………... 46

9.2 Financial Indicators……………………………………………………………………. 48 9.3 Key Assumptions in updating of Plan (Operating Budget)………………………… 49 9.4 Capital Expenditure……………………………………………………………………. 51 9.5 Capital Revenue……………………………………………………………………….. 51 Appendix 1 – Capital Expenditure Budget Bids 2017/18………...……………………. 57 Appendix 2 – Operating Initiative Budget Bids 2017/18………………………………… 63 Appendix 3 – Below the Line Budget Bids 2017/18 (Projects not considered for funding)………………………………………………………………………………………

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Appendix 4 – Operating Revenue Analysis………………………………………………. 67 Appendix 5 – Operating Expenditure Analysis…………………………………………… 70 Appendix 6 – Budget by Service…………………………………………………………... 77 Appendix 7 – Map 1 – Gawler East Development Area…………………………………. 130

1 MAYOR’S MESSAGE

The Annual Budget / Business Plan illustrates the Council’s proposed services, programs and projects for 2017/2018 and has been developed within a prudent, longer term financial framework which seeks to achieve and maintain the long term financial sustainability of Council’s operations.

The development of the Annual Budget / Business Plan is an important part of our planning, and has been guided by the various aspirational goals and strategies encapsulated within our Gawler Community Plan 2014-2024.

Some of the key initiatives for this year include: • Continuing restoration and refurbishment of the Town Hall and Gawler Institute• Installation of underground drainage infrastructure through lower Willaston• Structural remediation of the Gawler Mill Bridge• Stage 6 upgrade of Murray Street• Continuing the rehabilitation of the Gawler Aquatic Centre (Stage 3 of 5)• Continuing implementation of the Willaston Cemetery Action Plan (Stage 3 of 5)• Construction of 3.1kms of new footpaths• Design and construction of a Dog park• New and/or replacement of Playground Equipment• Resealing of 5.2kms of sealed roads

Following extended negotiations with all relevant parties, infrastructure deeds signed in May 2017 between Council, the Minister for Transport and Infrastructure, and Springwood Communities will result in the commencement of construction of the much anticipated Gawler East Link Road in late 2017. The construction of the $55m road will facilitate an alleviation in traffic congestion currently experienced along Adelaide Road and Murray Street, and is also expected to be a catalyst towards further property development within the Gawler East development area.

Underpinning the services, programs, and projects within the budget is a 3% increase in General Rate revenue from existing ratepayers. For the average residential ratepayer this will translate to an increase in General rates of $44. This will be partly offset by a 3.7% reduction in the Waste Management Charge, resulting in a net rates increase for the average residential ratepayer of $37 (or 2.2%), excluding the State Government NRM levy.

The budget provides for an estimated operating deficit of $78,000, however the estimated result is materially distorted by the fact that the Federal Government has elected to pay 50% of each Council’s 2017/18 Financial Assistance / Local Roads grant in June 2016/17, which must subsequently be accounted for in the 2016/17 result (the advance payment received by the Town of Gawler amounts to $759,000). With the exclusion of the advance grant payment (i.e. the full grant allocation being received in 2017/18 financial year) the adjusted estimated result for 2017/18 is a surplus of $681,000, which is consistent with Council’s policy goal of achieving a recurrent and sustainable operating surplus.

Karen Redman MAYOR

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Vision for Gawler….

A liveable, cohesive, active, innovative, and sustainable community

Council Profile:

• Population: 23,583 (2016)• Area: 41 square kilometres• Major industries: Retail trade,

Health & Community Services, andEducation

• Elected Members: Mayor and 10Elected Members

• Staff: 121.87 full-time equivalent• Road lengths: 176kms sealed

roads, 20kms unsealed roads• Rateable properties: 11,258• Open Space: 457 hectares• Recurrent Budget: $27.3m

COUNCIL PROFILE / VISION

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2 OVERVIEW 2.1 Operating Result The key principle driving the preparation of the 2017/18 recurrent budget has been Council’s core target of maintaining a financially sustainable operating position, whilst at the same time being cognisant of longer-term considerations outlined in Council’s Long Term Financial Plan.

The budget provides for an estimated operating deficit of $78,000, however the estimated result is materially distorted by the fact that the Federal Government has elected to pay 50% ($759k) of Council’s 2017/18 Financial Assistance / Local Roads grant in June 2016/17 which must subsequently be accounted for in the 2016/17 result. With the exclusion of the advance grant payment (i.e. the full grant allocation being received in 2017/18 financial year) the adjusted results for the 2016/17 and 2017/18 financial years would be as follows:

Financial Year Estimated Operating Result: Surplus / (Deficit)

Impact of advance payment of Federal

Grant

Adjusted Estimated Operating Result (i.e. with

advance grant payment removed): Surplus / (Deficit)

2016/17 $1,305,000 $759,000 $546,000 2017/18 ($78,000) ($759,000) $681,000

All other Councils’ will be similarly affected by their advance grant payment being received in June 2017.

From a revenue perspective, the budget provides for a 3% increase in General Rate revenue from existing ratepayers. Consistent with previous years, the draft budget also provides for an increase in General Rate revenue as a direct result of major residential and commercial development occurring within the Council area (estimated at 2.5% for 2017/18).

As the budget provides for a decrease in the kerbside waste collection/disposal Service Charge applied (from $189 to $182), the net increase in total rates for the average residential ratepayer (excluding increase in the State Government NRM levy) will be in the order of 2.2% (or $37).

Further details regarding the expected impact on ratepayers is outlined in Section 7.2.

From an expenditure perspective, the draft budget provides for a 3.9% increase in overall operating expenditure. Key elements include:

• No increase in staff numbers (currently 121.87FTE) – this represents a saving of$257k for the increased FTE of 3.35 otherwise proposed in the 2016-2019Workforce Plan;

• $432k provision for new Open Space management costs as noted in Section2.3;

• Sundry Projects Fund reduction from $200k to $100k (the purpose of the fundbeing to provide capacity for co-contributions required from Council relative to anynew external grant funding sought);

• New Initiatives funding of (net) $302k (excluding deferred funding from 2016/17);

• Finance costs increase of $190k, consistent with longer term projections, as

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major asset investment occurs (most notably the $14.3M restoration and refurbishment of the iconic State-heritage listed Town Hall and Gawler Institute);

• Depreciation increase of $389k as a result of an increase in buildingsdepreciation expense (predominantly due to the recent purchase of the new Townof Gawler Administration Centre) and infrastructure depreciation (as a direct resultof the value of new road and stormwater infrastructure, etc., acquired from newresidential land developments);

• Engagement of a Sustainability Officer (originally provided for within the2016/17 budget) on a 3 year contract basis to identify cost savings and efficiencyopportunities relative to Council’s energy costs (e.g. water, electricity, etc.) anddrive broader sustainability outcomes.

A comprehensive analysis of Council’s recurrent operational budget is included in Appendices 4-6.

2.2 Financial Position From a treasury management viewpoint, c o n t i n u i n g t o improve the overall financial position has also been a primary goal of the Council.

Similar to its operating performance, Council has also made considerable improvement in this regard in recent years due to the application of effective treasury management principles and techniques.

In this regard, Council’s fundamental approach (as enshrined in its Treasury Management Policy) has been to only access external loan funding as cashflow requires, and now generally only via a bank overdraft facility available from the Local Government Finance Authority, as distinct from locking into fixed long-term loans as had historically been the case. On this basis, Council has not entered into any fixed-interest long term Debenture Loans since 2010/11. The key benefit of the revised l o a n f u n d i n g approach is that the overdraft facility utilised from the Local Government Finance Authority is only used as cashflow requires and can, importantly, be drawn down or repaid at any time as cashflow permits – whereas the previous historic practice of fixed long-term loan arrangements was locking Council into fixed future principal and interest repayments over the life of the loan (generally 15 years).

Consistent with this changed loan funding approach, the Budgeted Cashflow Statement (refer Section 8) estimates that Council’s bank overdraft will increase by $6.28m to $10.75m as at 30 June 2018. This is partly offset by an ongoing reduction in Council’s long term fixed-interest debt of $814k, from $7.4m to $6.6m.

Graph 1 below indicates recent and forecasted movements in the Net Financial Liabilities Ratio of the Council, which measures the net financial liabilities of the Council as a percentage of total annual operating revenue, and is the key statutory measure of a Council’s overall financial position.

It is Council policy, and a widely accepted industry standard, that the ratio result should not exceed 100%.

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Graph 1 – Net Financial Liabilities Ratio 2006/07 – 2017/18

Periodic fluctuations (either upwards or downwards) in the Net Financial Liabilities is to be expected, dependent on the timing/value of capital works programs outlined in Council’s Long Term Capital Works Plan. This is particularly relevant to the replacement and renewal of existing fixed assets, noting that at any point in time different assets will be at different stages of their useful life. Further, in a growth Council such as Gawler, there will be a continual expected demand for new and/or increased services/facilities, as the population of the Council continues to escalate.

In this regard, both recent (i.e. 2016/17) and forecasted (i.e. 2017/18) movements in the Net Financial Liabilities ratio have been heavily influenced by Council’s current spike in capital works, noting that the Long Term Financial Plan reflects a five-year return period to capital works programs in the order of $6-7m from the 2018/19 financial year.

2.3 Growth Management considerations

The Town of Gawler is one of the fastest growing Council’s in the state, which subsequently presents considerable challenges (and opportunities) for the Council.

In recent years, the development growth within the town has been reflected by numerous staged residential land developments (predominantly in the suburbs of Gawler East, Evanston Gardens, and Evanston South).

Coinciding with this, there has also been considerable commercial development within the town – such as the likes of the ‘Gawler Green’ development in Evanston (incorporating a second Coles supermarket in the town, Hungry Jack’s, Bunnings, and more recently Aldi). Such commercial development has importantly provided new employment opportunities within the town.

Whilst such economic growth is welcomed, the rapid growth of new residential development poses considerable challenges for the Council, most notably reflected by the extensive infrastructure that is received by Council from developers and must then subsequently be maintained by Council. Such infrastructure includes roads, footpaths, kerbs, stormwater drainage systems, playgrounds, parks and reserves.

There are invariably no immediate new maintenance costs incurred for roads, footpaths, and kerbs acquired from developers within these developments (outside of depreciation,

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programed street sweeping, stormwater system cleaning, and responsive maintenance to damage and vandalism). However, Open space management (i.e. playgrounds, parks and reserves) does immediately present new costs for Council as a result of the regular maintenance activities incurred – ranging from water consumption and infrastructure maintenance costs emanating from irrigated turf and landscaped gardens, water body management, playground inspections, tree inspection and maintenance, lawn mowing, garden bed maintenance, etc.

A further financial consideration for Council in this regard is service standards to the open spaces within these residential land developments. Council is assessing the service standards in the new development areas with those existing similar class open space assets being maintained by staff in more established areas of Council, namely Class B – Irrigated Neighborhood Parks.

These service standards and associated frequencies have been revised with peer growth councils and established industry standards to then provide appropriate allocation of budget and associated resources. However, the standards to which Council will be seeking to apply are not considered relative to the standard to which land developers currently maintain these open space areas having regard to such factors as nature of the tasks and visitation frequencies, which invariably are higher for commercial marketing and sale purposes.

Existing Council Class B open space

Table 1 below displays the current Class B reserves, their size and average cost to maintain considering climatic variation for growth. Budget structure does not break down to each individual Class B reserve and as such, the cost is provided as total and then divided to HA, which is regarded as commensurate with standard council approaches with maintenance in existing reserves with set service levels.

Table 1: Existing Council Class B Open Space

Class B Size (HA)

Cost (Average)

B Hindmarsh Blv. Playground

Evanston Gdns - Hindmarsh Blvd Reserve 0.2

B Gawler south playground Gawler Sth-Adelaide Rd Playground 0.22 B Willaston Playground Willaston - Lime Kiln Park 0.18 B Bacton Street Playground Evanston - Bacton Street Playground 0.22

B Fifteenth Street Playground Gawler Sth-Sixteenth St Playground 0.2

B Gawler West Playground Gawler Sth-Britton St Playground 0.16 B Carlton Road Playground Gawler East-Calton Rd Playground 0.1

B Humphrey George Reserve

Evanston Park - Humphrey George Reserve 1.5

B Withers Circuit Reserve Evanston Park - Withers Court 0.36 B Light Square Reserve Gawler - Light Square Reserve 0.23

B Hemaford Grove Reserve Playground Sport & Rec - Hemaford Road Reserve 0.12

TOTAL 3.49 $ 170,000 TOTAL Per HA (including labour, plant and materials/utilities costs) $ 48,710

New Class B Open Space from Land Development

Table 2 displays the new Class B open spaces provided to the Council through land

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development, the advised (or estimated) handover year and quarter, size and average cost to maintain based on the Town of Gawler maintenance frequency and service level.

Table 2: New Class B Open Space from Land Development

Handover Year and Quarter

Development and Stage of Class B reserve Size (HA)

Net Cost Per Annum (Estimated)

16/17 Q1 Woodvale Stage 1 0.11 $10,909 16/17 Q2 Acacia Green Stage 1, 2 0.27 $21,308 16/17 Q2 Orleana Waters Stage 2,3,3a,4 1.2 $85,835 16/17 Q2 Greenview 0.41 $13,523 16/17 Q3 Springwood Stage 1,2a,2b,2c,2d,6a 0.7 $70,751 16/17 Q4 Aspire Stage 1,2a,2b 3 $128,993 17/18 Q1 Orleana Waters Stage 6 1.2 $85,835 17/18 Q3 Woodvale Stage 2E 1 $65,000 17/18 Q3 Acacia Green Stage 3 0.18 $21,308

TOTAL 8.07 $503,462

TOTAL per HA (including labour, plant and materials/utilities costs) $62,387

In this context, the second half of 2016/17 and 2017/18 financial year will see a significant influx of “Class B” open space. Put in perspective, prior to the 2016/17 financial year Council managed 3.49ha of ‘Class B’ reserves across the whole Council area. However, during the 2016/17 and 2017/18 financial years, Council will be receiving from developers 8.07ha of ‘Class B’ reserves – which represents a 231% increase in the volume of hectares to be maintained of this reserve class. Furthermore due to high quality of finish and design embellishments estimated maintenance costs are 31% higher per hectare, $48,000 current to $63,000 new land division cost per hectare. Overall, since 2013/14 there has been a 41% increase in the amount of hectares of open space maintained by Council – from 319 to 452 hectares.

Although a component of the maintenance activities for the additional Open Space assets received has been internally absorbed, given operational efficiencies emanating from the recent Depot Review, the Horticulture Open Space team has now reached operational saturation point based on the volume of works to be delivered in the next 18 months.

Within the draft 2017/18 recurrent budget now presented is a sizeable financial increase proposed over the 2016/17 adopted budget position for the allocation for additional maintenance costs associated with infrastructure provision in the new land divisions to the extent of approximately $432k. These costs relate to civil and horticultural maintenance services that are required to manage this infrastructure.

Council recognises that these increased costs for new land divisions is not financially sustainable, and will result in a inequitable provision of open space services in the Council area and subsequently put at risk Council’s ability to deal with a number of other priorities which have been identified by Council relative to open space, sports facilities, staffing initiatives, town centre upgrades and other community services.

In this regard, Council has recently committed funding towards: a. the engagement of a specialist consultant who will assist an internal Administration

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Working Group (comprising of key Executive and operational staff from Planning, Engineering, and Financial Services Business units) in the establishment of New Land Division Open Space Guidelines; and

b. a Town Services resourcing strategy following determination by Council of levelsof service for new land divisions.

Table 3 below highlights the current approved developments, anticipated development life, known volumes of open space and indicative percentages of active neighborhood (Class B) and passive (Class D) open space provision. The table summarises the quantum of the open space provision which will be occurring from known developments over the next 15 years or so. The magnitude of this increase highlights the need for the Working Group’s integrated whole of business review and policy review for the Council to enable these areas to be delivered in a sustainable and equitable way.

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Table 3: Open Space Forecast Beyond 2017/18

Development Development Life

Percentage development delivered

Total Development Area (HA)

Total Open Space (HA)

Indicative Active Open Space (HA)

Indicative Passive Open Space (HA)

Acacia Green 1-2 years 50% 4.170 0.53 0.42 0.11

12.50% 10% 2.50%

Aspire 4-5 years 50% 28.34 6.77 2.9 3.87

23.87% 10% 13.87%

Orleana Waters 4-5 years 50% 58.98

9.83 5.9 3.98 16.60% 10% 6.60%

Springwood 15 years 10% 219.00

74.46 21.9 52.56 34% 10% 24%

*ProposedawaitingDA

*ProposedawaitingDA

*ProposedawaitingDPA

Woodvale 4-5 years 10% 11.28 2.35 1.2 1.15

23.80% 10% 13.80%

TOTALS: 321.77 93.94 40.23 53.71

In April 2017, Council unanimously endorsed the following motions in regards to its approach to be taken in dealing with the Open Space Management issues:

That Council adopts the recommendation from the Infrastructure and Environmental Committee made at item 7.8 of the meeting of that Committee meeting held on 11 April 2017, being:

Motion No: IES:2017:04:15

That the Infrastructure and Environmental Services Committee recommends to Council that:-

1. The New Land Division Maintenance Management Report be noted.

2. It be noted that this is the first formal report to Council Elected Members, settingout major budget and governance issues which have arisen related to planningof Open Space and Public Infrastructure in new development areas and thepotential maintenance costs for Council arising from landscape plans approvedby Council staff over recent years.

3. It be noted that possible costs of Open Space and Public Infrastructure in newhousing estates up to June 2018 have been included in the April 2017 draftCouncil review of the 10 year Long Term Financial Plan.

4. It be noted that the effect of the suggested local area open space maintenancecosts to Council in new development areas (both suggested reallocation ofcurrent Council resources and suggested additional contract work) of about$700,000 for the 2017/18 is likely to be a majority of to the whole of ratescollected from the new residents of these areas.

5. It be noted that as the Report indicates that there is potential that the 8 hectaresof new local active open space considered for 2017/18 could grow by a further

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40 hectares over future years and other open space by a further 53 hectares in new development areas.



That the Infrastructure and Environmental Services Committee recommend to Council that:

1. Council considers that the position set out above is not sustainable financially,will result in a very inequitable provision of open space services in the Councilarea and put at risk Council’s ability to deal with a number of other prioritieswhich have been identified by Council related to open space, sports facilities,staffing initiatives, town centre upgrades and other community services.

2. Council works urgently on a transition to an equitable and sustainable allocationfor resources for the 8 hectares of new Open Space and Public Infrastructureidentified in the Report.

3. Provision of active local open space Council Class B Standard in new areas bemore in line with areas such as the Lime Kiln Reserve in Willaston and thereserve on the corner of Adelaide Road and Fifth Street.

4. Passive open space to be generally not irrigated and be planted with local nativespecies to create recreation and conservation areas which will be lowmaintenance e.g. involving slashing of open areas. Areas of lower useabilitysuch as steep creeklines and under powerlines to be considered on a case bycase basis to ensure that they are in a suitable long term low maintenance statebefore Council will accept them as assets.

5. Open Space Concept Plans for the short term to be presented to Council forapproval.




1. Council supports the development of New Land Division Open Space Guidelines,and that funding of $30,000 be allocated in the 2016/17 Budget to pursue this asa matter of priority.

2. Council supports a $30,000 be allocated in the 2016/17 Budget to pursue this asa matter of priority for specialist consultancy assistance to develop aMaintenance Resourcing Strategy using the principles of workforce planning forthe forecast growth in the Town of Gawler.

3. Council uses the existing expertise of Council Staff, Elected Members andCommunity Members to the maximum extent possible to work out transitionplans to equitable and sustainable open space services.

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4. The planning required to implement is proposed to include:-a. Updated land development and land division standards and guidelines.b. Review of maintenance operations including Arboriculture operations

review and Landscape irrigation management.c. Review of Open Space Design Guidelines.d. Financial Analysis on maintenance costs of new land developments and

consideration of overall Town equity including future maintenance costsfor projected residential growth beyond 2017/18.




1. The outsourcing of additional Horticulture Services required for new land divisionmaintenance occur to end of 2017/18.

2. Management of the landscape plantings at Aldi be reviewed.

3. The third quarter budget review an operating budget adjustment required for2016/17 to deliver maintenance services to new land divisions.

4. Council nominate an estimate within the draft 2017/18 budget for operatingbudget adjustment of a sum to be determined for internal and external resourcesand including additional recurrent costs from 2016/17 to deliver substantialsavings for maintenance services to new land division areas, with these figuresto be reviewed on a regular basis and adjusted as required.




1. Council’s administrative operational changes to Planning, Engineering and TownServices practices in relation to new land divisions be noted.

2. Further reports be presented as part of Council’s Long Term Financial Planreview and 2017/18 Annual Business Plan and Budget as appropriate.

3. A further report occur for the June Infrastructure and Environmental ServicesCommittee meeting or a special meeting if appropriate.

Investigations in this regard are ongoing, with progress reports being presented to Council on a regular basis. It is envisaged that the New Land Division Open Space Guidelines and Town Services Maintenance Resourcing Strategy will be completed by the end of the 2017 calendar year, pending Council deliberation on new land division levels of service, which will then be able to appropriately inform budget estimates for future financial years.

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2.4 Gawler East Development / Separate Rates Proposals

In 2015, the State Government committed $55m to ‘bankroll’ construction of the Gawler East Link Road (GELR). Construction of the road has previously been identified as a need to support the new community in Gawler East and to relieve traffic congestion in and around Gawler more generally. On completion of the road in 2019, Council will take on ownership and ongoing maintenance of the GELR, of which depreciation alone is likely to be in the order of $500k per annum.

Following Ministerial rezoning of land within the Residential (Gawler East) and Residential Hills zones in 2010 for residential purposes, staged residential development has been occurring on an ongoing basis. The Zones have been identified as having the capacity for an additional population of 10,000 once fully developed. To date, approximately 200 residential properties have been developed in these zones.

Being cognisant of this, Council is currently planning to ensure that the provision of road and community infrastructure within the development area occurs in an orderly and sustainable manner.

In this regard, infrastructure to be provided within the Residential (Gawler East) and Residential Hills Zones, over an indicative development life of 15 years, has been identified as per Table 4 below.

Table 4 – Identified infrastructure requirement – Gawler East development zone

Infrastructure Estimated Cost $

Gawler East Link Road $54.4m Associated roadworks (deferred) $2.4m Social & Community (e.g. Community Centre, sports fields & facilities)

$7.6m

Traffic interventions $15.7m TOTAL $80.1m

The proposed funding model for the identified infrastructure is predicated on the following funding arrangement, outlined in Table 5 below.

Table 5 – Proposed funding model – Residential (Gawler East) & Residential Hills Zones infrastructure

Item CONTRIBUTION Total $’000s State

$’000s Developers

$’000s Council *

$’000s Gawler East Link Road and deferred infrastructure

46,233 9,587 955 56,775

Social & Community infrastructure

- 6,720 918 7,638

Traffic Interventions - 8,604 7,125 15,729 Total 46,233 24,911 8,998 80,142

* Council financial contributions relative to already developed allotments within the associated area.

Council has recently signed binding Deeds of Agreement with the State Government (Minister for Transport & Infrastructure) and Springwood Development Nominees P/L (being the developer consortium of Springwood). The deeds provide for Council reimbursing the State Government $8.2m as a return on its $54.4m upfront investment in the GELR. This reimbursement will include a $2.4m payment from Council on practical completion of the GELR (being Council’s contribution towards the upgrade of Potts Road),

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with the remaining amount of $5.8m repaid on a per new allotment basis (by developers as direct beneficiaries of the GELR) as development unfolds within the development area.

It is envisaged that the primary funding mechanism towards securing the $24.911m of developer contributions will be via Infrastructure Deeds with all developers in the Gawler East development area, requiring a per allotment contribution payable upon the creation of each new allotment prior to Section 51 clearance being provided.

It is important to note that by applying this contribution before individual allotments are created, the cost is immediately attributed to the developer and not the eventual resident.

This process would require the use of a Land Management Agreement (LMA) linking the Infrastructure Deed to the Certificate of Title (Land).

However, to secure the future delivery of the $80.1m of new infrastructure within the development area, Council is proposing to apply new Separate Rates as a financial secondary security mechanism to obtain the required developer contributions towards the infrastructure provided. This approach will avoid the need for bank guarantees, which otherwise would have resulted in considerable associated financial imposts for developers.

Prior to the establishment of a new Separate Rate, in accordance with Section 151(5) of the Local Government Act 1999 (‘the Act’), Council must prepare a report on the proposed change and follow the relevant steps set out in its public consultation policy. To this end, Council engaged Mr. David Hope of Skilmar Systems Pty. Ltd. to prepare the consultation report.

It is important to note that the funding model proposed for the provision of various infrastructure within the Gawler East development zones is based on the “developer pays principle” – with the expectation that developer contributions required (on a per new allotment basis as development occurs) will be sourced from the primary funding mechanism of developer deeds requiring contributions prior to Section 51 clearance being provided. Consequently, the proposed Separate Rates are solely designed as a financial security mechanism towards ensuring such developer contributions are ultimately received.

In this context, it is also important to note that property owners / developers within the affected area would only need to make a financial contribution via a deed agreement or Separate rate when they elect to subdivide their property – thus, if no development occurs (i.e. no new allotments created) then no financial contribution from either funding mechanism will be required.

Until such development occurs, the proposed Separate rates applied will automatically be postponed. Further to this, once the associated per allotment contribution has been made then the Separate rate would be remitted in full.

The proposed Separate Rates for the Gawler East development zones are predicated on the associated model that has successfully been implemented at the District Council of Mount Barker for a number of years. Similar to their experience, it is envisaged that Council will likely receive all of the required external contributions via the application of development deeds with the various property developers, and that the Separate rate will only act as a financial security mechanism as intended.

Signing of Gawler East Link Road deeds in May 2017 with local MP Tony Piccolo and Warwick Mittiga of Springwood Communities

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2.5 2017/18 Federal Budget impact The 2017/18 Federal Budget was announced on 9 May 2017.

The Federal Budget will have a number of impacts on the Council budget as follows: • 50% of 2017/18 Financial Assistance / Local Roads Grant allocation received in

June 2017 ($759k). Consequently, this advance payment will need to be accountedfor in the 2016/17 operating result. This will subsequently materially distort thefinancial result comparison between the 2016/17 and 2017/18 financial years;

• Reinstatement of Supplementary Local Roads funding for all SA Councils in2017/18 and 2018/19 (estimated for Town of Gawler at $150k for each year);

• ‘Roads to Recovery’ funding has been extended to at least the 2020/21 financialyear (it was previously earmarked to cease in the 2018/19 financial year)

The advance payment of $759k in June 2017 is estimated to culminate in an operating surplus for 2016/17 of $1.3m – whereas the corresponding reduction in revenue for 2017/18 is estimated to result in an operating surplus of $217k. Without the advance payment, the estimated operating results would be operating surpluses of $546k (2016/17) and $976k (2017/18).

2.6 Community Support The Council provides extensive financial and ‘in-kind’ support to numerous activities in support of various community groups/events.

Such support includes: • Discretionary Rate rebates of $62k (including $29k for both Starplex and the Gawler

& Barossa Jockey Club);• Christmas Festival ($27k);• Community Grants Scheme ($15k) – in 2016/17, 17 community groups received

grant payments between $475 and $975;• Heritage walls restoration grants ($25k);• Gawler Community House ($15k);• ‘Hero Building’ Program (in support of restoring shop fronts within the Gawler CBD)

($10k);• Australia Day breakfast and awards ceremony ($6.5k);• Community Loans (based on various loan application criteria) to local

community/sporting clubs. In 2016/17, Council approved loans to the South GawlerCricket Club ($20k interest-free), Gawler Central Sporting Club ($20k interest-free)and the Gawler Bowling Club ($100k);

• Fee discounts for hire of Council facilities

In 2016/17 a community loan ($100k) was provided to the Gawler Bowling Club to assist in replacing two of their 3 synthetic bowling green surfaces.

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2.7 State Government imposed rate capping

The State Liberal party has indicated it is intending to introduce rate capping legislation for Local Government, should it be elected to office at the next State Government election in March 2018.

All Councils raise revenue from rates to pay for the services expected by and consumed by the current generation and to comply with Australian and State Government imposed standards.

Without access to sufficient revenue to meet community needs for services, Councils would either have to:

1. adopt compromises on community-desired services, including maintenance ofinfrastructure; and/or

2. defer part-payment to future generations for services consumed today.

The Local Government Association of SA (LGA) have advised that their position is that: 1. Council rates are determined fairly and transparently in accordance with legislation

and regulations;2. An externally imposed rate cap will reduce Council’s ability to balance expenditure,

revenue and services to the community; and3. Rates capping creates unwarranted complexity, costs and constraints to

administer.

Should rate capping be introduced, it is likely that Council would experience reduced annual recurrent revenue in the order of $200k per annum. The consequence of such reductions would lead to either reduced service levels to the community (including those identified in Section 2.6 above) and/or increased loan borrowings (and associated interest costs) to part-fund capital works programs.

At the 16 June 2016 Special Council Meeting Council resolved the following:

Motion No: 2016:06:229

That Council:- 1. Rejects the local government rate capping proposal advocated by the Shadow

Minister for Local Government as well as the associated inquiry to be run by theParliamentary Economic and Finance Committee; and

2. Advises the Local Government Association of South Australia and the ShadowMinister and the Minister for Local Government of this Council decision.

Despite substantial efforts by the LGA to work collaboratively with the Liberal Party on alternative initiatives to drive efficiencies and reduce cost of living pressure on communities, the Party has attempted to introduce rate capping into legislation currently before the Parliament of South Australia (Parliament) and to take this policy to the state election.

The introduction of a rate capping policy is one of the biggest threats our sector faces. Where rate capping has been enforced interstate it has significantly reduced council infrastructure and services, with many councils being forced to cut a range of activities that are valued by the local community, such as libraries, parks and community support services.

The reality is that rate capping limits a council’s ability to provide local services, creates infrastructure backlogs (leading to a potential decline in the serviceable state of infrastructure assets), restricts budgetary authority and undermines local democracy. These adverse outcomes are becoming evident in Victoria, and have already occurred in New South Wales (NSW) where rate-capping has been in place for many years. The LGA

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is seeking support from councils to ensure that this policy does not harm South Australian communities.

To this end, at the 23 May 2017 meeting Council unanimously passed the following resolution:

Motion No: 2017:05:160

That the Council: 1. Notes the unanimous decision from South Australian councils at the 2016 Local

Government Authority Ordinary General Meeting to reject rate capping.2. Continues to oppose rate capping in any form.3. Agrees to support and participate in the Local Government Authority’s public

awareness campaign including placing material in quarterly rates notices.4. Notes the Local Government Association will continue to work with all Members

of Parliament and political parties to ensure rate capping is not imposed onSouth Australian communities.

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3 GAWLER COMMUNITY PLAN Council’s Community Plan 2014-2024 was adopted in August 2014 and acts as the over-arching plan driving the delivery of key outcomes and services to the community.

The key strategic directions and outcomes included in the Gawler Community Plan are outlined below.

GOAL 1- OUR IDENTITY

A Uniquely Identifiable Township

OBJECTIVES

1.1 Maintain a clearly defined township, one which is distinct from neighbouring areas 1.2 Build a local community that is proud of Gawler 1.3 Protect and promote Gawler’s unique heritage 1.4 Create a vibrant and active, event filled council area 1.5 Value the role the Arts play in promoting community spirit and pride

GOAL 2 - OUR GROWTH

Sustainable Growth Management

OBJECTIVES

2.1 Physical and social infrastructure to match population growth 2.2 Growth to be respectful of cultural and built heritage 2.3 Urban growth to be sustainably managed 2.4 The local environment to be respected 2.5 Manage growth through the real connection of people and places 2.6 Local economic activity to create local job opportunities and generate increased local

wealth

GOAL 3 - OUR COMMUNITY

A Healthy, Active, Safe, Engaged Community

OBJECTIVES

3.1 Health and social wellbeing services in Gawler to meet growing regional community needs

3.2 Sporting facilities to meet local and regional community needs 3.3 Provision of sufficient structured and informal recreation facilities 3.4 Gawler to be recognised internationally as a child and youth friendly community 3.5 Recognise, respect, support and advocate on behalf of volunteers 3.6 Encourage the development of the Arts 3.7 Create a safe community environment

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GOAL 4 - OUR ENVIRONMENT

To Respect and Nurture the Environment

OBJECTIVES

4.1 Create and maintain a riverine environment that reflects the social, cultural and landscape values of the river corridor

4.2 Support development that respects the environment and considers, the impacts of climate change

4.3 Protect environmentally significant areas of native vegetation for present and future generations

4.4 Support sustainable use of natural resources and minimise further waste to landfill 4.5 Support provision of useable open space that preserves natural habitat and biodiversity

GOAL 5 - OUR LEADERSHIP

A Strong, Vibrant Community

OBJECTIVES

5.1 Support and encourage community teamwork 5.2 Be recognised as a ‘best practice’ Local Government organisation 5.3 Deliver ongoing effective and efficient services, including support for regional

collaboration 5.4 Create and support community partnerships that contribute to the implementation of

this Plan

The Council is currently reviewing its Community Plan, towards ensuring it remains consistent with the needs and aspirations of the community.

Extensive community consultation will be undertaken in coming months to ensure the community has appropriate engagement and input into the review of the Plan.

A limited library service is provided at other sites for pick up and return of items.

Evanston Gardens has temporarily become the main Gawler Library, whilst refurbishment of the Town Hall and Institute occurs.

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4 PROJECTS & SERVICES FOR THE YEAR 4.1 Capital Works & New Initiatives

The proposed capital works and new initiatives for the 2017/2018 financial year are outlined in Table 6 below.

Table 6 – Proposed Capital Works & New Initiatives 2017/18

Asset Type Asset Investment Proposals (Capital)

New Initiative

$

TOTAL $

Replacement/ Renewal

$

New / Upgrade

$ Bridges - 1,200,000 - 1,200,200 Buildings & property 265,000 11,012,177 22,500 11,299,677 Community Services 5,000 72,000 77,000 Corporate & Finance 20,000 20,000 Fleet & Equipment 259,000 10,000 - 269,000 Footpaths 184,000 392,000 - 576,000 Growth Policies & Initiatives - - 232,000 232,000

Information Technology 15,000 245,000 260,000 Kerb & Gutter 200,000 100,000 300,000 Land - - 85,000 85,000 Open Spaces / Recreation & Sport

340,000 670,000 148,000 1,158,000

Regulatory Services - 20,000 33,000 53,000 Roads 790,000 1,335,000 - 2,125,000 Stormwater 290,000 805,000 - 1,095,000 Street Assets 180,000 145,000 - 325,000 TOTAL 2,528,000 15,934,177 612,500 19,074,677

Further details regarding the proposed capital works program and new initiatives for 2017/2018 is outlined in Appendix 1 and 2.The proposed capital works program of $18.462M is to be funded as per Graph 2 below.

Graph 2 – Source of funding – proposed 2017/18 Capital Works Program ($18.462m)

Internal Equity

Reserve, 1.3%

Operating Revenue,

23.5%

Sale of Assets, 11.0%

Government Grants /

Contributions

Loan Borrowings,

32.6%

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A total of $576k will be spent on footpaths in 2017/18, including $184k on replacement / renewal of existing footpaths, and $392k on new / upgrading of footpaths. 3.1km of new footpaths will be constructed.

Construction works associated with the restoration and refurbishment of the Town Hall and Gawler Institute is one of the key initiatives for 2017/18. Badge Constructions was the successful tenderer for the building contract and took possession of the site on 23 March 2017. Karen Redman (Mayor), Henry Inat (CEO), Richard Wunderlich (Project Manager) and David Barrett (Manager, Business Enterprises and Communications) toured the site in June 2017 with a representative from Badge.

$2.125M will be spent on roads in 2017/18, including $790k on replacement / renewal of existing roads, and $1.335M on new / upgrading of roads. 5.2km of roads will be resealed.

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4.2 Council Services

Council provides a myriad of services to the community, many of which are subsidised by General rates levied.

An analysis of services provided to the community is disclosed in Appendix 6, including reference to the key activities to be provided by each service.

Policy No. 6.13 (Service Range Policy) prescribes the services provided by the Council. The services are categorised as either ‘Legislative’, ‘Regulatory’, ‘Core’ or ‘Non-Core’ as per below:

Category Service Description of activities

Legislative Elected Members Support the Elected member body of CouncilFinancial Services Financial management of Council's operations

General Administration Manage and administer general operations of the Council

Other Environmental ServicesVarious environmental initiatives, State Govt NRM Levy collection & payment

Rates AdministrationAdminister rating activities and collection of outstanding rates

Records ManagementManage Council records in accordance with State Records Act

Regulatory Building Control Assess and administer compliance with Building RulesDog & Cat Control Compliance with Dog & Cat Management ActEmergency Services Compliance with Fire & Emergency Services ActOther Regulatory Services Impounding of abandoned vehiclesParking Control Compliance with Expiation of Offences Act

Preventive Health ServicesCompliance with Public & Environmental Heath Act and Food Act

Town Planning Compliance with Development Act

Core Car Parks Provision and maintenance of Car Parks

Communication & MarketingProactive dissemination of Council information to the community

Community Assistance (Volunteer Services)

Support volunteer activities (e.g. Graffiti Removal team, Volunteer Resource Centre, etc)

Community Centres & Halls Maintenance of facilities

Community Support

Support local community events (e.g. Australia Day breakfast & Awards, Gawler Show, Fringe Festival etc.) and provision of various Community Grants

Customer Service Provision of high quality customer services

Depot Administration of outdoor staff and associated facilities

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The Gawler Aquatic Centre remains a popular destination during summer, with over 50,000 visitors to the Centre during 2016/17. The Centre achieved a record 1,114 enrolments for the Swim School Program

Council staff from the Town Hall and rented premises within the Centrelink building on High Street relocated to the new Administration Centre in mid-December 2016.

The new Administration Centre provides capacity for long term future growth in staff, and provides new rental income to Council via leased premises on the ground floor.

Relocation to the Centre has achieved net recurrent savings of over $100k p.a. for the Council.

Council maintains over 450 hectares of open space for community use and enjoyment

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Category Service Description of activities

Core Elderly Centre Maintenance of Elderly Centre

Engineering ServicesDesign/deliver capital works programs, Asset Management Plan

Gawler Aquatic Centre

Maintain swimming pool in accordance with community health standards, provide various Swim related programs and activities

Heritage Maintenance of local heritage collectionHuman Resources Manage and administer Council's Human ResourcesInformation Technology Manage Council's IT software/hardwareLibrary Provision of Library servicesLitter Control Collection and disposal of waste from litter bins

Occupancy Administer and manage Bldg maintenance programsOther Activities (not elsewhere classified)

Weedspraying / mowing of road reserves, removal of dumped rubbish

Parks & GardensMaintenance of facilities in accordance with service standards (including playgrounds)

Pest Control Effective pest/vermin control servicesPlant & Machinery Maintain fleet vehicles and machines in good orderPublic Conveniences Maintenance of public conveniences

RoadsProgrammed maintenance of Council's road network - including roads, bridges, footpaths, kerb & gutter

Sports Facilities - Indoor Gawler Sports & Community CentreSports Facilities - Outdoor Maintenance of sporting surfaces and facilitiesStormwater Drainage Maintenance of stormwater drainage infrastructureStreet Cleaning Programmed streetsweeping of urban roads

StreetlightingFacilitate community safety through appropriate streetlighting

Streetscaping Maintain urban streetscapes

Traffic ManagementMaintain traffic control signs and infrastructure to Australian Standards

Waste Management Collection and disposal of kerbside waste

Non-Core Caravan Park Administer lease of Caravan ParkWillaston Cemetery Maintenance of facilities

Children & Youth ServicesSupport delivery of youth related activities and events (e.g. Youth Week, Gawler Youth Advisory Committee)

Crime Prevention Maintenance of CCTV systemsHome Assistance Scheme Support provision of Government-funded programImmunisation Support delivery of immunisation programsInvestment Properties Manage Council's property portfolioRegional Development Support regional based programs and initiativesSupport to Local Businesses Support the Gawler Business Development GroupTourism Gawler Visitor Information Centre

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5 MEASURING OUR PERFORMANCE Monitoring and measuring the performance of the Council (both financial and non- financial performance) is important to ensure our objectives are achieved.

Council currently monitors both financial and non-financial performance through the presentation of Quarterly Budget Reviews, Monthly Financial Reports and Annual Financial Statements.

5.1 Financial Measures Council has a number of financial indicators to measure the impact of the annual budget on Council’s financial performance/position.

Each of the indicators, with associated comments, is outlined below.

5.1.1 Operating Ratio

This ratio measures the operating result (surplus or deficit) as a percentage of operating revenue. Council’s current Treasury Management Policy prescribes that the target result is for the ratio to be between 0-10% (i.e. operating breakeven or surplus) over any five year rolling period.

Graph 3 below indicates that Council is forecasting to operate within its ratio target for the 2017/18 financial year.

Graph 3 – Adjusted Operating Surplus / (Deficit) Ratio: 2006/07 – 2017/18 *

*Adjusted result after excluding impact of advance Federal Government grant payments. So that meaningful year comparisons are achieved, each year result is based on operating result as a percentage of total operating revenue (Note: prior to 2015/16 Council was required to determine the ratio based on total Rate revenue (excluding NRM levy)).

3.35.8

-12.7

-16.7 -16.2

-6.6

-0.7

3.9 3.42.0 2.1 2.4

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

%

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5.1.2 Net Financial Liabilities Ratio

This ratio measures Council’s net financial liabilities (i.e. total liabilities less financial assets) as a percentage of total operating revenue.

It is Council policy, and a widely accepted benchmark within the Local Government industry, that the net financial liabilities ratio not exceed 100% (effectively meaning that net financial liabilities not exceed the value of annual operating revenue).

Graph 4 be low indicates that Council has substantially improved its overall financial position in recent years and is currently operating within the policy threshold.

As noted in Section 2.2, periodic fluctuations (either upwards or downwards) in the Net Financial Liabilities is to be expected, dependent on the timing/value of capital works programs outlined in Council’s Long Term Capital Works Plan. This is particularly relevant to the replacement and renewal of existing fixed assets, noting that at any point in time different assets will be at different stages of their useful life.

In this regard, the 2016/17 and 2017/18 budgets incorporate Council’s investment in the restoration and refurbishment of the State heritage-listed Town Hall and Gawler Institute, with Council’s net contribution to this project being in the order of $8.7m (after deducting a Federal Government grant of $5.6m). Council’s net contribution to this project is earmarked to be funded from a combination of operating revenue, external loan borrowings (via an increase in Council’s overdraft facility with the Local Government Finance Authority), and the sale of surplus property assets. The increase in external loan borrowings will culminate in an increase in the ratio result as outlined in Graph 4 below.

Graph 4 – Net Financial Liabilities Ratio: 2006/07 – 2017/18

5.1.3 Asset Sustainability Ratio

This ratio measures net capital expenditure on the replacement and renewal of fixed assets (i.e. gross expenditure less proceeds from the sale of replaced assets) as a percentage of identified expenditure for such as disclosed in Council’s Asset Management Plan.

Consequently, this indicator aims to determine if assets are being renewed and replaced in an optimum way. Council’s target range for this indicator is 90-100%.

46

6071

8086

66

53 4943

50

65

83

0102030405060708090

100

% o

f Ann

ual O

pera

ting

Reve

nue

28

Graph 5 below includes the actual ratio result for the 2006/07 to 2015/16 financial years. Prior to the 2013/14 financial year the ratio was determined based on the value of depreciation expense, pending the completion of the Asset Management Plan.

Graph 5 – Asset Sustainability Ratio: 2006/07 – 2017/18

5.2 Non-Financial Measures

Council has various non-financial indicators upon which it measures performance and activity levels for various services provided. These indicators are reported to Council on a quarterly basis as part of Quarterly Budget Reviews presented to Council.

Appendix 6 includes service level measures (where appropriate) for the various services provided by Council. Not all services have non-financial KPIs, and in many instances the measures applied are workload indicators for historic trend data analysis. In such instances, future KPI budgets are not necessarily appropriate or required.

87

75

50

77

28

65

23

7166

97 100 100

0

20

40

60

80

100

120

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6 FUNDING THE BUSINESS PLAN

6.1 Operating Revenue

Outside of rate revenue, local government has limited other recurrent revenue streams available to it. Subsequently, there is a significant industry reliance on general rates to fund the recurrent operations of the Council.

Outside of general and service rates and charges, the other recurrent revenue streams of Council are:

• User pay charges set by Council – these comprise charges for the Council’sfee-based facilities and services such as the Gawler Swimming Centre, GawlerSport and Community Centre, and Willaston Cemetery.

• Statutory charges set by State Government – these are fees and chargesset by State Government regulation and received by the Council for regulatoryfunctions undertaken such as assessment of development and buildingapplications and dog control management.

• Grants & Subsidies – the Council seeks to attract as much grant funding fromother tiers of government, thereby reducing the reliance on other revenuestreams.

• Investment Income – interest received on cash investments held duringperiods of favourable cashflow.

A graphical analysis of projected operating revenue for the 2017/2018 financial year is outlined in Graph 6 below.

Graph 6 – 2017/2018 Sources of operating revenue

For further information regarding Council’s operating revenue, refer Appendix 4.

Rates & Service Charges

79%

User Charges

6%

Grants & Subsidies

10%

Other Revenue

5%

2017/18 OPERATING REVENUE - $27.327m

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6.2 Operating Expenditure

The recurrent expenditures incurred by Council are:

(a) Employee Costs – includes all labour related expenses such as wages and salaries, andon-costs such as allowances, leave entitlements and employer superannuation

(b) Contractual Services – includes payments for the external provision of services

(c) Materials – includes payments for physical goods such as fuel, water, energy, road materials,office consumables and stationery

(d) Finance Costs – includes the interest costs of financing the Council’s activitiesthrough borrowings or other types of financial accommodation

(e) Depreciation – represents the annual consumption of Council’s fixed assets(e.g. infrastructure, equipment, buildings, etc.) to deliver a service or program

(f) Other Expenses – includes expenses not separately classified above, such as insurances,postage, telephone, government levies, and contributions and donations.

Graph 7 – 2017/2018 Total Operating Expenditure

For further information regarding Council’s operating expenditure, refer Appendix 5.

Employee Costs37%

Contracts, Materials &

Joint ventures42%

Finance Costs3%

Depreciation18%

2017/18 OPERATING EXPENDITURE - $27.404m

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7 RATING STRATEGY

7.1 Strategic Rating Policy

Council has a Strategic Rating Policy, reviewed annually, which provides policy guidance relating to Council’s annual rating methodology.

The Council has recently completed its formal review of the Policy, which incorporated an extensive analytical report (including a comparison of the rating methodology with comparative Councils) being tabled to the Audit Committee in April 2017.

The review process indicated that the current rating principles and methodology applied by Council continues to be appropriate. Consequently, Council ratified the existing Policy, without any material change, at its 26 April 2017 meeting.

A copy of the existing policy can be downloaded from Council’s website at www.gawler.sa.gov.au.

The key rating elements comprised within the Strategic Rating Policy are outlined below.

7.1.1 Property Valuations

Council rates are a form of property taxation, and property values determine how much each property contributes towards funding the activities outlined in the annual budget / business plan.

The Council uses capital values as the basis for valuing land within the Council area. The Council considers that this method of valuing land provides the fairest method of distributing the rate burden across all ratepayers on the following basis: • the equity principle of taxation requires that ratepayers of similar wealth pay similar taxes

and ratepayers of greater wealth pay more tax than ratepayers of lesser wealth;• property value is a relatively good indicator of wealth and capital value, which closely

approximates the market value of a property, provides the best indicator of overall propertyvalue.

7.1.2 General Rates

General rates payable for each ratepayer is determined by the capital valuation multiplied by the rate-in-the-dollar set by the Council, and Council also applies differential general rates based on the land use of the property. The land uses used for rating purposes are as follows: (a) Residential(b) Commercial(c) Industry(d) Primary Production(e) Vacant Land(f) Other

In accordance with Section 3.2.1.1 of the Strategic Rating Policy, Council will determine a base general rate (for properties contained within Residential, Primary Production and Other land use codes). Percentage loadings (on the base general rate) will then apply on all other land use categories.

The percentage loadings applied will be in recognition of the following factors: (a) A differential rate loading (above the base general rate) will apply on all Vacant land properties

as a disincentive towards land banking;(b) A differential rate loading (above the base general rate) will apply on all

Commercial and Industrial properties in consideration of the following factors:i. Valuation methods involved within capital compared to site value;

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http://www.gawler.sa.gov.au/

ii. Overall service levels related to infrastructure maintenance and Council services;iii. Tax deductibility;iv. Relative rates in neighbouring Councils; andv. Other relevant factors

However, in recognition of enhanced economies of scale and capacity to pay for large high-valued businesses (such as major nat ional supermarket/retail chains), and to act as an economic stimulus in support of small low-valued businesses, the differential rate loadings for Commercial and Industrial properties will be applied on a progressive taxation basis, based on various valuation ranges determined by the Council pursuant to Section 158 of the Local Government Act 1999.

As part of the General rates, Council also applies a minimum rate, so that all ratepayers make an appropriate base-level contribution towards the cost of service delivery to our community.

7.1.3 Separate Rates

In accordance with Section 154 of the Local Government Act 1999, Council may levy a separate rate for a particular activity provided to specific properties within the community.

The current separate rates applied are outlined below.

(a) Business Development & Marketing Separate Rates

This separate rate is levied against commercial and industrial properties for the purpose of developing and promoting business. The funds generated are to cover the costs of operations of the Gawler Business Development Group, which also acts as an advocate for the business community within Gawler.

The separate rate is raised and collected at no cost to the Gawler Business Development Group.

A higher contribution is sourced from properties within the Town Centre zone, in recognition of additional services provided by the Gawler Business Development in support of such properties.

(b) Natural Resources Management Levy

The Council collects this levy on behalf of the Adelaide & Mount Lofty Ranges Natural Resource Management Board.

In this capacity, the Council is operating as a revenue collector for the State Government and does not retain the revenue nor determine how it is spent.

Further information regarding the levy can be obtained from the Gawler Office of the Adelaide & Mount Lofty Ranges Natural Resource Management Board (Ph: (08) 8523 7700).

(c) Gawler East Development area Separate Rates

Consistent with Clause 4 of the policy, Council has recently considered a proposal to introduce new Separate Rates to fund the provision of various infrastructure within the Gawler East development area. Following recent extensive public consultation undertaken, and subsequent feedback received, Council is proposing to impose Separate Rates across the Gawler East development area from the 2017/18 financial year.

Further details regarding this proposal are outlined in Sections 2.4 and 7.2.2 of this report.

7.1.4 Service Rates & Charges

In accordance with Section 155 of the Local Government Act 1999, Council may levy a service charge for various prescribed services provided to the community.

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The current service charge applied is outlined below.

(a) Waste Management Service Charge

The Council provides a kerbside waste management collection and disposal service, for general household waste, greenwaste and recyclable materials.

A service charge, to recover the cost of the service, is applied against all ratepayers (excluding vacant land properties and Primary Production properties with no (or minimal) built form) who are able to access the service, regardless of whether they use the service.

7.1.5 Withholding of Discretionary Rate Rebates for Commercial properties in a state of neglect

Introduced in the 2015/2016 financial year, Council may withhold discretionary rate rebates for Commercial properties in the Town Centre determined to be in a state of neglect and detracting significantly from the amenity of the locality.

In making any such determination the Council will have regard to the following considerations: a) The features which establish the amenity of the locality in which the property is situated;b) The aspects of the amenity of the locality which the Council seeks to preserve or

encourage;c) The reasons why the particular property significantly detracts from the amenity of the

locality; andd) Any other matters the Council considers relevant, including comment from affected property

owners if provided

The value of discretionary rate rebates withheld will be retained in a Property Improvement Reserve Fund. The money in the Fund will be made available to property owners or businesses (including those contributing rebates) in the Town Centre for improving the appearance of their premises.

7.2 Expected Impact on Ratepayers

7.2.1 Differential General Rates

Consistent with most other Councils, the Town of Gawler significantly relies on general rate revenue to fund the activities proposed in the annual budget / business plan.

The budget provides for a 3% increase in General rate revenue from existing ratepayers. Whilst individual property increases may fluctuate based on movements in individual property valuations, the average residential increase in General rates is estimated at approximately $44 (i.e. approximately $0.84 per week).

In accordance with Council’s Strategic Rating Policy, the Council will continue to apply differential rate loadings on a progressive taxation basis for all Commercial and Industrial properties, based on a different net rate-in-the-$ being applied against various property valuation ranges.

The minimum rate is proposed to be increased by 3%, from $927 to $954, consistent with the overall increase in General Rate revenue from existing ratepayers.

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7.2.2 Separate Rates

(a) Business Development & Marketing Separate Rate

The revenue to be collected from the separate rate w i l l b e d e t e r mi n e d b y t h e v a l u e o f f u n d s r e q u i r e d t o f u n d t h e a c t i v i t i e s o f the Gawler Business Development Group.

The 2017/18 budget for the Gawler Business Development Group was presented to Council in May 2017, which provides for a 2.9% increase in funds generated via the Separate Rate.

(b) Residential (Gawler East) & Residential Hills Zones Separate Rates

In accordance with Clause 4 of the Strategic Rating Policy, Council has recently considered funding options related to the Gawler East Link Road and other infrastructure within the Gawler East development area.

The funding model incorporates the ‘beneficiary pays’ principle, whereby financial contributions towards the provision of infrastructure are sought from property developers as development occurs. Under this funding model, the primary funding mechanism will be via Council entering into a deed of agreement with developers for the purpose of ensuring that the developer makes a fair and equitable contribution towards the cost of the infrastructure. Deeds of agreement for developer contributions are usually secured by means of a bank guarantee. For the developer, there is a cost to be paid for a bank guarantee.

As a secondary funding mechanism to secure the developer contributions, Council is proposing to levy a Separate Rate for the amount of the developer contribution, thereby saving the developer the considerable expense associated with obtaining a bank guarantee.

Whilst the proposed Separate Rate will be a charge on the land, it will automatically be postponed until a trigger event occurs, which will be when the subdivision of the land occurs. Should the developer pay the relevant per new allotment contribution under the deed agreement, or provide the associated in-kind works, then the Separate Rate will be remitted in full.

Where the deed of agreement fails or is not entered into, and the developer subsequently does not pay their contribution, the Separate Rate would remain as a charge against the land to be collected on subdivision or transfer of the land. However, the Separate rate could again be postponed for a new owner if it has been purchased as broad acre land for future development.

Based on the identified developer contributions required, Council is proposing to levy the following Separate Rates on a proportional basis (as determined by the amount of developable land).

Gawler East Link Road (including deferred infrastructure): • Springwood Communities – estimate of $36,339.10 per developable hectare• Other Future Developers – estimate of $63,363.05 per developable hectare

Community Infrastructure: • Springwood Communities - estimate of $24,670.95 per developable hectare• Other Future Developers – estimate of $34,284.01 per developable hectare

Traffic Interventions: • Springwood Communities – estimate of $50,704.38 per developable hectare• Other Future Developers – estimate of $14,067.37 per developable hectare

Map 1 (refer Appendix 7) outlines the delineation between Springwood Communities and Other Future Developers.

The proposed Separate Rate will not be applied against already developed allotments or properties that already have development approval within the Springwood and Woodvale residential land developments,

35

as it would not be fair to attempt to retrospectively recover the cost of the infrastructure via a Separate Rate on those allotments. Council will, however, contribute to the various infrastructure categories on behalf of those existing communities who will receive a benefit from the said infrastructure to be provided.

As part of the Separate Rate proposal, Council has also developed a Separate Rate Relief Policy, which will provide policy guidance relative to the application of the Separate Rate.

7.2.3 Service Charges

(a) Waste Management Service Charge

The kerbside waste collection and disposal service, upon which the service charge applied is based, is provided by the Northern Adelaide Waste Management Authority (NAWMA).

Following the recent tendering of the kerbside service, NAWMA has advised that there is estimated to be a 2.13% reduction in the fees charged to Council in 2017/18. As the estimated reduction in fees levied incorporates a provision for new fees as a result of services provided to new residents within the town, it is estimated that the per allotment Waste Management Charge applied will reduce by 3.7%.

On this basis, the Waste Management Service Charge will reduce from $189 to $182. The reduction in the Service Charge would have been greater had a 14.5% increase in the State Government Waste Levy not been applied. Given that the State Government levy is estimated to increase from $76 to $87 per tonne in 2017/18, this will mean that the levy will have increased by 28% within two years.

In accordance with Section 155 of the Local Government Act 1999, Council can only recover by way of a service charge the actual cost of providing the related service.

7.3 Assistance Available

7.3.1 Rebates of Rates

The Local Government Act 1999 requires Councils to rebate the rates payable on some land. Specific provisions are made for land used for health services, community services, religious purposes, public cemeteries, and educational institutions.

Discretionary rebates may be applied by the Council on land used for community purposes under Section 166 of the Act. Application forms, giving full criteria, are available from the Council.

7.3.2 Remission of Rates

Section 182 of the Local Government Act 1999 permits the Council, on the application of the ratepayer, to partially or wholly remit rates or to postpone rates, on the basis of hardship. Where a ratepayer is suffering hardship in paying rates he/she is invited to telephone (08) 85229 211 to discuss the matter. Such inquiries are treated confidentially by Council.

7.3.3 Postponement of Rates – Seniors

In accordance with provisions of the Local Government Act 1999, persons who hold a current Seniors Card may apply to postpone any amount in excess of $500 ($125 per quarter) less any concession entitlement for their principal place of residence. Interest will accrue on postponed balances, with the accrued debt being payable on the disposal or sale of the property.

36

7.3.4 Rate Capping

In accordance with provisions of the Local Government Act 1999, Council will continue to provide the application of a rates cap for Residential properties. Application forms (including eligibility criteria) are available from Council’s Principal Office.

7.3.5 Rate Payment Options

Council provides for quarterly payments of rates in September, December, March and June each year.

Payments can be made via Australia Post Billpay (either in person at any Post Office, or over the phone (Ph: 13 18 16) and internet (postbillpay.com.au), via B-Pay or B-Pay view, via Council’s website (www.gawler.sa.gov.au), by mail, by d i rect debi t , or by cash/cheque/EFTPOS over the counter at the Town of Gawler Administration Centre at 43 High Street, Gawler East.

7.3.6 Alternative Payment Arrangements

Any ratepayer who may, or is likely to, experience difficulty with meeting the standard rate payment arrangements may contact the Council on (08) 8522 9211 to discuss options for alternative payment arrangements. Such enquiries are treated confidentially.

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2016/2017 Adopted

Budget

2016/2017 Forecast

2017/2018 Budget

$'000 $'000 $'000

INCOME

20,654 20,605 Rates 21,595740 690 Statutory charges 725

1,432 1,458 User charges 1,6232,966 3,869 Grants, subsidies and contributions 2,767

64 44 Investment income 37415 405 Reimbursements 47825 95 Other income 260 0 Net gain - Joint ventures & associates 75

26,296 27,166 Total Income 27,326

EXPENSES

9,947 9,465 Employee costs 10,16610,991 11,171 Materials, contracts & other expenses 11,609

596 647 Finance costs 7864,454 4,490 Depreciation, amortisation & impairment 4,843

88 88 Net loss - Joint ventures & associates 026,076 25,861 Total Expenses 27,404

220 1,305 OPERATING SURPLUS / (DEFICIT) (78)

OTHER COMPREHENSIVE INCOME3 3 Asset disposal & fair value adjustments 0

4,765 321 Amounts specifically for new or upgraded assets 6,64614,000 4,000 Physical resources received free of charge 5,000

18,988 5,629 NET SURPLUS / (DEFICIT) TRANSFERRED TO EQUITY STATEMENT 11,568

Other Comprehensive Income

18,988 5,629 TOTAL COMPREHENSIVE INCOME 11,568

TOWN OF GAWLER2017/2018 BUDGET

STATEMENT OF COMPREHENSIVE INCOMEfor the year ending 30 June 2018

8 FINANCIAL STATEMENTS

38

2016/2017 2016/2017 2017/2018 $'000 $'000 ASSETS $'000

Adopted Budget Forecast

Current AssetsCash and cash equivalents

1,446 1,087 Trade & other receivables 1,17520 17 Inventories 17

1,466 1,104 Total Current Assets 1,192

Non-current Assets23 164 Financial Assets 148

3,560 3,612 Equity accounted investments in Council 3,687 281,191 231,247 Infrastructure, Property, Plant & Equipment 247,830 284,774 235,023 Total Non-current Assets 251,665

286,240 236,127 TOTAL ASSETS 252,857

LIABILITIESCurrent Liabilities

1,487 4,474 Bank Overdraft 10,755 3,394 4,217 Trade & Other Payables 3,912

982 814 Borrowings 851 2,282 2,471 Provisions 2,471 8,145 11,976 Total Current Liabilities 17,989

Non-current Liabilities 12,039 6,607 Borrowings 5,756

151 143 Provisions 14388 88 Liability - Equity accounted Council 88

12,278 6,838 Total Non-current Liabilities 5,987

20,423 18,814 TOTAL LIABILITIES 23,976

265,817 217,313 NET ASSETS 228,881

EQUITY 76,126 55,715 Accumulated Surplus 67,062 187,696 159,877 Asset Revaluation Reserve 159,877 1,995 1,721 Other Reserves 1,942

265,817 217,313 TOTAL EQUITY 228,881


BUDGETED BALANCE SHEETfor the year ending 30 June 2018

39

Budget

2016/2017 Adopted

Budget

2016/2017 Forecast

2017/2018 Budget

$'000 $'000 $'000

ACCUMULATED SURPLUS56,797 49,412 Balance at end of previous reporting period 55,71518,988 5,629 Net Result for Year 11,568

(222) (227) Transfers to Other Reserves (556)563 901 Transfers from Other Reserves 335

76,126 55,715 Balance at end of period 67,062

ASSET REVALUATION RESERVE187,696 159,877 Balance at end of previous reporting period 159,877187,696 159,877 Balance at end of period 159,877

OTHER RESERVES2,336 2,395 Balance at end of previous reporting period 1,721

222 227 Transfers from Accumulated Surplus 556(563) (901) Transfers to Accumulated Surplus (335)1,995 1,721 Balance at end of period 1,942

265,817 217,313 TOTAL EQUITY AT END OF REPORTING PERIOD 228,881


BUDGETED STATEMENT OF CHANGES IN EQUITYfor the year ending 30 June 2018

40

$(000’s) $(000’s) $(000’s)CASH FLOW FROM OPERATING ACTIVITIESReceipts

26,192 27,082 Operating receipts 27,12664 44 Investment receipts 37

Payments(20,938) (20,536) Operating payments to suppliers and employees (21,480)

(596) (647) Finance payments (786)

4,722 5,943Net Cash provided by (or used in) Operating Activities 4,897

CASH FLOW FROM INVESTING ACTIVITIESReceipts

4,165 321 Amounts specifically for new or upgraded assets 6,04680 80 Sale of replaced assets 36

500 0 Sale of surplus assets 2,00021 21 Repayments of loans by community groups 16

Payments(4,526) (3,077) Expenditure on renewal/replacement of assets (2,528)

(12,910) (8,385) Expenditure on new/upgraded assets (15,934)(140) Loans made to Community groups

(12,670) (11,180)Net Cash provided by (or used in) InvestingActivities (10,364)

CASH FLOWS FROM FINANCING ACTIVITIESReceipts

5,600 0 Proceeds from Borrowings 0

Payments(1,231) (1,231) Repayment of Borrowings (814)

4,369 (1,231)Net Cash provided by (or used in) Financing Activities (814)

(3,579) (6,468) NET INCREASE/(DECREASE) IN CASH HELD (6,281)

2,092 1,994CASH & CASH EQUIVALENTS AT BEGINNING OF REPORTING PERIOD (4,474)

(1,487) (4,474)CASH & CASH EQUIVALENTS AT END OFREPORTING PERIOD (10,755)


BUDGETED CASH FLOW STATEMENTfor the year ending 30 June 2018

2016/2017 Adopted

Budget2016/2017 Forecast

2017/2018 Budget

41

2016/2017 Adopted

Budget

2016/2017 Forecast

2017/2018 Budget

$'000 $'000

26,296 27,166 Income 27,326(26,076) (25,861) less Expenses (27,404)

220 1,305 Operating Surplus / (Deficit) (78)

less Net Outlays on Existing Assets

(4,526) (3,077) Capital Expenditure on renewal and replacement of Existing Assets (2,528)

4,454 4,490 less Depreciation, Amortisation and Impairment 4,84380 80 less Proceeds from Sale of Replaced Assets 368 1,493 2,351

less Net Outlays on New and Upgraded Assets

(12,910) (8,385) Capital Expenditure on New and Upgraded Assets (15,934)

4,765 321less Amounts received specifically for New and Upgraded Assets 6,646

500 0 less Proceeds from Sale of Surplus Assets 2,000(7,645) (8,064) (7,288)

(7,417) (5,266) Net Lending / (Borrowing) for Financial Year (5,015)

Net Lending / (Borrowing) equals Operating Surplus / (Deficit), less Net Outlays on non-financialassets. The Net Lending / (Borrowing) result is a measure of the Council's overall (i.e. Operatingand Capital) budget on an accrual accounting basis. The Net Lending / (Borrowing) result can beexpected to fluctuate from year to year, given the lumpy nature of some capital expenditure.Achieving a zero result on the Net Lending / (Borrowing) measure in any one year essentiallymeans that the Council has met all of its expenditure (both operating and capital) from the currentyear's revenues. The amount of Net Lending in any one year decreases the level of Net FinancialLiabilities in the year by that amount. Conversely, the amount of Net Borrowing increases the levelof Net Financial Liabilities.


BUDGETED UNIFORM PRESENTATION OF FINANCESfor the year ending 30 June 2018

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FINANCIAL INDICATORS

2016/2017 Adopted Budget

2016/2017 Forecast

2017/2018 Budget

Policy Target result

$'000 $'000 $'000 $'000

Operating Surplus 220 1,305 -78 >0

Operating Surplus RatioOperating Surplus 0.8% 4.8% -0.3% 0-10%Total Operating Revenue

Adjusted Operating Surplus RatioAdjusted Operating Surplus 0.8% 2.1% 2.4% 0-10%Total Operating Revenue

Net Financial Liabilities RatioNet Financial Liabilities 72% 65% 83% 0-100%Total Operating Revenue

Asset Sustainability RatioNet Asset Renewals 100% 100% 100% 90-100%Infrastructure & Asset Management Plan required expenditure

Net asset renewals expenditure is defined as net capital expenditure on the renewal and replacement of existing assets, andexcludes new capital expenditure on the acquisition of additional assets.

Being the operating surplus (deficit) before capital amounts .

This ratio expresses the operating surplus as a percentage of total Operating revenue.

The Federal Government has made advance grant payments for 2017/18 in the 2016/17 financial year. The Adjusted

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Forecast Balance

1/7/17

2017/2018 Transfers

to Reserve

2017/2018 Transfers

from Reserve

Projected Closing Balance 30/6/18 Note

$'000 $'000 $'000 $'000

Asset Revaluation Reserve 159,877 159,877

Other Reserves:

Carparking 442 442 Open Space 15 51 (66) - 1 Stormwater Drainage - 51 (51) - 2 Property 1,107 20 (100) 1,027 3 Discretionary Rate Rebates Withheld 4 4 Willaston Cemetery Reserve - 38 (38) - 4 Urban Tree Fund 1 1 Dog & Cat Management 104 (80) 24 5 Gawler East Development 396 396 6 Historic Walls Scheme 48 48 7 Total Other Reserves 1,721 556 (335) 1,942

Notes:


BUDGETED MOVEMENT IN EQUITY RESERVESfor the year ending 30 June 2018

7. Balance of Reserve relates to accrued unspent funds for Historic Walls Scheme. Council allocation of$25k per year for 10 years within recurrent budget. Any unspent funds of the annual recurrent allocationare transferred to this Reserve.

1. Transfer to Reserve represents estimated Developer contributions to be received; Transfer fromReserve to part-fund Open Space capital works

5. Transfer to Reserve represents estimated operating surplus for Dog Management activities; Transferfrom Reserve to construction of Dog Park ($80k - Budget bid 781)

2. Transfer to Reserve represents estimated Developer contributions to be received; Transfer fromReserve to part-fund Stormwater capital works

4. Transfer to Reserve represents estimated operating surplus for Cemetery; Transfer from Reserve topart-fund staged implementation of Willaston Cemetery Action Plan

3. Transfer to Reserve represents estimated value of interest received on Fund; Transfer from Reserveto fund Master Plan for Karbeethan Reserve precinct (Budget Bid 203)

6. Transfer to Reserve represents estimated developer contributions received towards Gawler East LinkRoad construction, and Community infrastructure and traffic interventions to be constructed within theGawler East development zones.

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9 LONG TERM FINANCIAL PLAN

9.1 Overview The Long Term Financial Plan (LTFP) is required to be updated on an annual basis.

The update of the LTFP is very much an iterative and fluid process, with ongoing review and refinements based on updated data and information as it becomes available.

Recent material impacts on the LTFP are discussed below.

9.1.1 Open Space Management

As foreshadowed in the current LTFP (which was adopted by Council in June 2016), Council continues to be faced with financial challenges relative to the impact of rapid development growth occurring within the Council area across a number of major staged residential land developments. The LTFP in June 2016 noted as follows:

‘The Town of Gawler is currently experiencing rapid development growth, with the current population of approximately 23,000 set to continue to dramatically increase within the next 15-20 years. As such, the Council is one of the fastest growing Council’s in the state.

The key catalysts behind such a large increase are major land developments occurring and proposed to occur within the Gawler East and Gawler South precincts. Both of these developments areas will continue to have a marked impact on the Town of Gawler, which poses particular challenges (and opportunities) for the Council.

The key financial impacts from these developments will be:

• The requirement to upgrade various existing infrastructure assets to accommodate the new development andincreased traffic flows;

• An increase in depreciation expense, relating to the annual consumption of the major infrastructure assets(e.g. roads, footpaths, stormwater drainage, etc.) to be constructed within the developments;

• An increase in other operating costs due to new assets and extended services that will need to be provided(e.g. there will be new reserves to be maintained, new streets / drains to be routinely cleaned, increasedstreetlighting costs, etc.) together with pressures to increase various staff numbers as the population of thetown markedly increases (e.g. increase in volume of development applications to be considered, increase inrating property database to be administered and managed, etc.);

• New rate revenue received (from land divisions and building construction) as the developments progress;• An increase in revenue from development application fees and property search fees during the development

phases’.

The LTFP now incorporates the financial findings that have, to date, evolved from an extensive review of the operational consequences relative to Council taking up operational and management responsibility relative to numerous Open Space assets acquired from various major staged residential land developments occurring across the Council area.

Put in perspective, prior to this financial year Council managed 3.49ha of ‘Class B’ reserves across the whole Council area. However, during 2016/17 and 2017/18 financial years, Council will be acquiring from developers 8.07ha of ‘Class B’ reserves – which represents a 231% increase in the volume of hectares to be maintained.

Although a component of the maintenance activities for the additional Open Space assets acquired has been internally absorbed, given operational efficiencies emanating from the recent Depot Review, the Horticulture Open Space team has now reached operational saturation point based on the volume of works to be delivered in the next 18 months.

Consequently, the 2016/17 budget (via budget variations included in the 3rd Quarter Budget Review), the

45

2017/18 budget, and the LTFP have now been updated with indicative identified additional costs that will be incurred regarding the ongoing maintenance of the acquired ‘Class B’ reserves. It is also noted that there will be considerable passive open space reserves (i.e. those maintained to a lower service standard than ‘Class B’ assets) that will also be acquired across the next 18 months and beyond. The additional recurrent costs now incorporated include:

a) $167k (including $61k for water consumption) for the 2016/17 financial year;b) $432k (including $93k for water consumption) for the 2017/18 budget (including the recurring costs

from 2016/17). These costs have been indexed over the remaining years of the Long Term FinancialPlan.

As noted in Section 2.3 (Growth Management considerations), Council is currently investigating options to minimise the impact of the new Open Space acquired on Council’s financial operations. It is envisaged that such investigations, which incorporate development of New Land Division Open Space Guidelines and an Open Space Maintenance Resourcing Strategy, will be completed during 2017, such that the final outcomes can then be utilised to inform the 2018/19 budget and subsequent iterations of the Long Term Financial Plan.

9.1.2 Gawler East Development

In May 2017, Council executed Deeds of Agreement with the Minister of Transport and Infrastructure and Springwood Development Nominees P/L, which will realise the construction of the keenly anticipated $55m Gawler East Link Road. Construction of the road will commence in early 2018, with construction scheduled for completion in 2019.

Whilst the State Government will effectively ‘bankroll’ the construction of the road, the Deed requires Council to reimburse the State Government $8.167m as a return on its $55m investment in the road. On completion, the road will become a depreciable asset on Council’s balance sheet.

The $8.167m reimbursement to the State Government incorporates the following elements: • $2.4m paid on practical completion of the road (being Council’s contribution towards the upgrade of

Potts Road);• $500k paid no later than 12 months from the date of practical completion of the road (funded from

Springwood developers)• $5.267m paid via incremental per new allotment contributions from developers over the life of the

Gawler East development (with associated payments received from developers in any financial yearbeing on-forwarded to the State Government in July of the subsequent financial year).

To support the future development within the Gawler East development area, various community infrastructure and identified traffic interventions will be constructed at various intervals over the estimated 15 year life of the development. The funding for such infrastructure will be predominantly provided by developers of the land within the Gawler East development, consistent with the beneficiary pays principle.

It is expected that the required developer contributions, based on a per new allotment contribution, will be sought via infrastructure deeds between Council and the associated developer - with the required contribution being payable prior to Section 51 clearance being provided. Council is proposing to secure such contributions via the application of Separate Rates across the Gawler East development area, with the Separate Rates only triggered to become payable on development of the land and if a separate infrastructure deed with the developer is not entered into.

Further details relating to the Gawler East development and associated Separate Rates proposal is included in Section 2.4

Given that developer contributions towards identified community and traffic interventions infrastructure within the Gawler East development area will predominantly be received in advance of the construction of such infrastructure, and the fact that contributions towards community infrastructure have been determined as ‘operating’ (not capital) revenue, there will be a favourable impact on Council’s Statement of Comprehensive Income during the life of the development, as outlined in Table 7 below.

46

Table 7 – Estimated income/expenditure impact of Gawler East development on LTFP

FINANCIAL YEAR ($’000s) 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26

Oper. Income: Link Road (295) (376) (843) (1,360) (877) (895) (912) (931) (949) Comm. Infras. (177) (226) (508) (518) (528) (539) (550) (560) (572) Traffic interv. * - - - - - - - - -

Oper Exp.: Link Road payments to State Govt **

295 2,776 843 1,360 877 895 912 931 949

Net (Surplus) / Deficit

(177) 2,174 (508) (518) (528) (539) (550) (560) (572)

Estimated no. of new allotments (basis upon which contributions are based)

80 100 220 220 220 220 220 220 220

* Traffic interventions revenue treated as Capital revenue – hence, not included as Operating Income** 2018/19 contribution includes $2.4m lump sum payment due on practical completion of the road. 2020/21 includes $0.5m lumpsum contribution from Springwood Communities. In all years (except 2018/19), the Link Road income and expense contributions netto $0, on the basis that contributions received during any financial year will need to be treated as an accrued expense in theStatement of Comprehensive Income (despite not actually being due for reimbursement to the State Government until July of thesubsequent financial year).

47

9.2 Financial Indicators Based on a recurring 3% increase in General rate revenue from existing ratepayers, factors considered above, and key long-term assumptions outlined in Section 9.3, indicative impacts on Council’s key financial indicators are outlined below.

Operating Ratio

The current policy position of Council (as per the Treasury Management Policy) is that the operating ratio target be maintained between 0-10% (i.e. a break-even or surplus result) over any five year rolling period.

Graph 8 below reflects that, outside of the 2018/19 and 2019/20 financial years, Council is forecasting to achieve an operating breakeven or surplus consistent with its policy target.

Deficits are currently estimated for the 2018/19 and 2019/20 financial years based on a ‘one-off’ extraordinary payment to the State Government (earmarked in 2018/19 as per Table 7 above) and new depreciation expense, in the order of $500k, to be incurred on completion of the Gawler East Link Road (based on the road becoming a depreciable asset on Council’s balance sheet on completion).

Being mindful of the significant recurrent cost increase impact resulting from the management of new reserves received from residential land developments (as noted in Section 2.3 of this report), Council has commissioned the development of New Land Division Open Space Guidelines as well as the engagement of a specialist consultant to assist in the development of a Maintenance Resourcing Strategy.

It is envisaged that the findings of these works, particularly the Maintenance Resourcing Strategy, will have financial impacts that will need to be further considered by Council as part of its Long Term Financial Plan. Based on this, a further report will be presented to Council upon the completion of the commissioned works.

Graph 8 – LTFP Operating Ratio (2016/17 – 2025/26) *

*2016/17 and 2017/18 results adjusted for advance 2017/18 payment of Federal Government grant received in 2016/17.

2.1% 2.4%

-10.1%

-0.5%

0.6% 0.6% 0.9%2.0% 1.8%

3.2%

-12.00%-10.00%-8.00%-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%20.00%

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

%

YEAR

LONG TERM FINANCIAL PLAN - OPERATING RATIO

Current policy that ratio be maintained between 0-10%. A ratio result of 0 or above indicates an operating surplus is achieved

Due to $2.4m reimbursement to State Govt for Gawler East Link

48

Net Financial Liabilities Ratio

Based on updated financial data referenced in this report which has been now factored into the update of the LTFP, the Net Financial Liabilities Ratio is forecasted to increase to 83% in 2017/18, and then peak at 87% in 2018/19, after which it is then forecast to nominally fluctuate between 59-72% for the duration of the ten year horizon. Such fluctuations are based on the programmed timing of capital works identified in Council’s Asset Management Plan and the estimated timing of capital works associated with the Gawler East development area.

As noted in Graph 9 below, Council is forecasting to remain within its ratio target of 0-100%, in addition to having an ongoing nominal additional borrowing capacity for the duration of the ten year horizon.

The Council is of the view that the ratio result should, wherever possible, be maintained less than the 100% threshold, such that there remains some additional borrowing capacity for unforeseen or emergency capital works.

It is also important to note the following factors: a) Buildings condition audit is in progress, which may likely identify an increased need for asset

renewal and maintenance;b) Asset management plan for Open Space infrastructure assets is being developed, which may also

identify an increased need for associated asset renewal and maintenance.

Graph 9 – LTFP Net Financial Liabilities Ratio (2016/17 – 2025/26)

9.3 Key Assumptions in updating of Plan (Operating Budget) Key assumptions underpinning the LTFP model include:

Employee Costs a) Employee Costs increase (for existing staff) of 2.5% p.a.;b) Provision for increase of staff from 2017/18 to 2018/19 guided by Workforce Plan 2016-2019 (3.35

FTE 2017/18, 1.4 FTE 2018/19), plus appointment of Sustainability Officer (initial funding for which

65%

83%87%

72%68%

65%

59%

72%

65% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

%

YEAR

LONG TERM FINANCIAL PLAN - NET FINANCIAL LIABILITIES RATIO

Maximum Policy threshold of 100%

49

has already been incorporated within revised 2016/17 Budget) – noting that the Administration has since proposed, in light of financial constraints, that no increase in staff FTE be considered in the 2017/18 budget;

c) Increase of 2.0 FTE p.a. for each year of the Plan thereafter – in recognition of impact of ongoingrapid population / property growth factors.

Contracts & Materials a) Increase in Waste Management costs of 4% p.a. (including growth due to ongoing expansion of

service to new development areas), offset by matching increase in Waste Management ServiceCharge revenue – except 2017/18 which provides for 2.13% decrease due to savings from newtendered service managed by NAWMA (2017/18 decrease updated based on recent update fromNAWMA);

b) Increase in Water consumption costs for the next three years of 10% (allowing for the quantity ofnew reserves being acquired within various residential land developments), reducing to 5% p.a.thereafter (noting also that water consumption can be heavily influenced by climate);

c) Increase in Fuel / Electricity costs of 5% in 2017/18, reducing to 3% p.a. thereafter (reducedincrease from 2018/19 subject to implementation of various Environmental Management Planinitiatives and engagement of a Sustainability Officer);

d) Increase in Other Contracts & Materials of 2% p.a.

Finance Costs a) Plan provides for loan funding continuing to be sourced from short-term variable interest rate

overdraft facility with the LGFA – i.e. no fixed interest rate, long-term loans provided for. However,Council may wish to consider ‘locking-in’ some of the overdraft should interest rates materiallyincrease;

b) Plan projects gross debt increasing from $11.9m (30/6/17) to $19.72m (30/6/26) – peaking at$20.078m in 2023/24, but staying within policy target ratio;

c) Given planned major increase in debt (whilst still maintaining Net Financial Liabilities Ratio less than100%), Finance Costs will materially increase (from $647k (2016/17 estimate) to $1m (2024/25)).

Depreciation a) New depreciation of $183k p.a. following purchase of new Administration Centre and Civic Centre

redevelopment;b) New depreciation of $500k for Gawler East Link Road from 2018/19;c) Otherwise:

– 2% p.a. increase in Bldgs, Equipment, and Other Assets– 5% p.a. increase in Infrastructure Assets (including 2% p.a. increase as a result of new road,

stormwater assets, etc. acquired from developers as part of new residential landdevelopments).

Discretionary Operating Expenditure a) Sundry Projects Fund – reduced from current $200k allocation to $100k p.a.;b) New Initiatives funding of $250k in 2017/18 (excluding projects deferred from 2016/17), then

indexed by 2.0% p.a. ($100k p.a. of this is allowed for as future recurrent expenditure, the remaindereach year as ‘one-off’ expenditure)

Rates Revenue a) 3% p.a. increase in General rate revenue from existing ratepayers;b) 2% p.a. new General Rate revenue from development growth (1.9% and above has been achieved

across the last 5 years);c) Reduction in Waste Management Service Charge revenue provided for in 2017/18, consistent with

advice from NAWMA, following which 4% p.a. increase estimated (including revenue from new binswithin new residential land developments). Offset by matching increase in Service costs;

d) Plan allows for continuation of Gawler Business Development Group Separate Rate revenue (notingexisting agreement to collect the Rate expires in June 2018). Revenue offset by contribution toGBDG.

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Grants & Contributions a) 2% increase p.a. in Operating Grants (most recurrent grants are linked to CPI index adjustments –

Adelaide CPI currently 2.0%);b) 2% increase p.a. in developer contributions towards Open Space, Stormwater Drainage, etc.;c) ‘Roads to Recovery’ Federal Government funding ceasing in 2020/21.

Other Revenue a) 2% increase p.a. in Property rentals/lease fees (most increases tied to CPI index adjustments);b) 2% increase p.a. in Development Application / Property Search fees / Dog registrations revenue –

actual revenue received based on no. of applications/registrations received;c) 1% increase p.a. in Parking expiations revenue;d) 2% increase p.a. in other sundry revenue.

9.4 Capital Expenditure

a) Capital funding requirement sourced from identified funding contained within Asset ManagementPlan;

b) Funding requirement split between Replacement/Renewal of existing assets and New/Upgradedassets. New/Upgraded assets will generally lead to increased depreciation and operating costswhereas Replacement/Renewal will generally not;

c) Capital Exp. of $18m for 2017/18 includes completion of Civic Centre redevelopment.

9.5 Capital Revenue

a) $5.6m Grant towards Civic Centre redevelopment project;b) Continuation of $50k p.a. NRM Grant towards Gawler Urban Rivers Biodiversity Project (ceasing

after 2017/18);c) $300k allowance p.a. for other Capital Grants;d) $2.5m provision for proceeds from sale of surplus property assets (2017/18=$2m, 2018/19 = $500k).

The 2017/18 budget and LTFP reliance on the proceeds from the sale of surplus property assets cannot be understated. In this context, it is important to consider the financial implications should such proceeds not be realised – if such proceeds are not realised then Council would need to consider deferring additional capital works programs and/or increase loan borrowings (noting the nominal borrowing capacity already identified).

51

LONG TERM FINANCIAL PLAN -STATEMENT OF COMPREHENSIVE INCOME

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastREVENUES

Rates 20,605 21,597 22,663 23,783 24,959 26,193 27,488 28,848 30,275 31,774Statutory Charges 690 729 742 756 769 783 797 812 827 842User Charges 1,458 1,563 1,595 1,627 1,660 1,693 1,727 1,762 1,798 1,834Grants, subsidies and contributions 3,869 2,766 3,361 4,028 4,604 3,956 4,035 4,116 4,198 4,282Investment Income 44 1 0 0 0 0 0 0 0 0Reimbursements 405 477 487 496 506 516 527 537 548 559Other Revenues 95 26 27 27 28 28 29 29 30 30Net gain - joint ventures & associates 0 75 0 0 0 0 0 0 0 0

TOTAL REVENUE 27,166 27,234 28,875 30,717 32,526 33,169 34,603 36,104 37,676 39,321

EXPENSES

Employee Costs 9,465 10,136 10,817 11,278 11,652 12,145 12,657 13,190 13,753 14,107Materials, Contracts & Other Expenses 11,171 11,723 14,408 12,831 13,791 13,739 14,300 14,695 15,178 15,694Finance Costs 647 787 971 941 865 828 807 738 1,011 945Depreciation, Amortisation & Impairment 4,490 4,747 5,594 5,809 6,033 6,267 6,513 6,770 7,039 7,321Net loss - joint ventures & associates 88 0 0 0 0 0 0 0 0 0

TOTAL EXPENSES 25,861 27,393 31,790 30,859 32,341 32,980 34,276 35,393 36,981 38,066

OPERATING SURPLUS / (DEFICIT) BEFORE CAPITAL AMOUNTS 1,305 (158) (2,915) (142) 185 190 327 711 695 1,255

Net gain (loss) on disposal or revaluation of assets 3 0 0 0 0 0 0 0 0 0Amounts specifically for new or upgraded assets 321 6,646 1,251 926 938 951 964 977 991 1,005Physical resources received free of charge 4,000 5,000 30,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

NET SURPLUS / (DEFICIT) 5,629 11,487 28,336 5,784 6,123 6,141 6,291 6,688 6,686 7,259

52

LONG TERM FINANCIAL PLAN -BALANCE SHEET

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastASSETS

Current AssetsCash and cash equivalents 0 0 0 0 0 0 0 0 0 0Trade & other receivables 1,087 1,089 1,155 1,229 1,301 1,327 1,384 1,444 1,507 1,573Loans to Community Groups 16 8 6 6 6 6 6 3 3 3Inventories 17 17 17 17 17 17 17 17 17 17

Total Current Assets 1,120 1,114 1,178 1,252 1,324 1,350 1,407 1,464 1,527 1,593

Non-Current Assets

Loans to Community Groups 148 141 135 129 123 117 111 108 105 102Investments in subsidiaries 3,524 3,599 3,599 3,599 3,599 3,599 3,599 3,599 3,599 3,599Infrastructure, Property, Plant & Equipment 231,247 247,533 278,235 281,050 287,221 292,832 297,961 310,213 315,658 323,720

Total Non-Current Assets 234,919 251,273 281,969 284,777 290,943 296,547 301,671 313,920 319,362 327,420

TOTAL ASSETS 236,039 252,387 283,147 286,029 292,267 297,897 303,078 315,384 320,889 329,013

LIABILITIES

Current LiabilitiesTrade & Other Payables 4,217 3,912 6,393 4,460 4,977 4,494 4,512 4,529 4,548 4,566Borrowings - Fixed Term Debentures 814 851 909 971 1,037 1,107 831 594 307 0Borrowings - Cash Advance Facility 4,474 10,454 11,249 11,188 11,757 12,767 12,746 19,177 18,571 19,725Provisions 2,471 2,471 2,471 2,471 2,471 2,471 2,471 2,471 2,471 2,471

Total Current Liabilities 11,976 17,688 21,021 19,090 20,242 20,839 20,559 26,771 25,897 26,762

Non-Current LiabilitiesTrade & Other PayablesBorrowings - Fixed Term Debentures 6,607 5,756 4,847 3,876 2,839 1,732 901 307 0 0Provisions 143 143 143 143 143 143 143 143 143 143Other Non-Current Liabilities 0 0 0 0 0 0 0 0 0 0

Total Non-Current Liabilities 6,750 5,899 4,990 4,019 2,982 1,875 1,044 450 143 143

TOTAL LIABILITIES 18,726 23,587 26,011 23,109 23,224 22,714 21,603 27,221 26,040 26,905

NET ASSETS 217,313 228,800 257,136 262,920 269,043 275,184 281,475 288,163 294,849 302,108

EQUITY

Accumulated Surplus 55,715 66,690 95,875 100,825 106,542 112,764 119,443 127,176 133,791 140,980Asset Revaluation Reserve 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877Other Reserves 1,721 2,233 1,384 2,218 2,624 2,543 2,154 1,110 1,180 1,251

TOTAL EQUITY 217,313 228,800 257,136 262,920 269,043 275,184 281,475 288,163 294,849 302,108

53

LONG TERM FINANCIAL PLAN - STATEMENT OF CASHFLOWS

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastCASH FLOWS FROM OPERATING ACTIVITIES

Receipts:Investment receipts 44 1 0 0 0 0 0 0 0 0Operating receipts 27,082 27,156 28,809 30,643 32,453 33,144 34,546 36,044 37,613 39,255

Payments:Finance payments (647) (787) (971) (941) (865) (828) (807) (738) (1,011) (945)Operating payments to suppliers & employees (20,536) (21,564) (22,744) (26,041) (24,926) (26,367) (26,939) (27,867) (28,913) (29,782)

Net cash provided by (or used in) Operating Activities 5,943 4,805 5,094 3,661 6,662 5,948 6,800 7,439 7,689 8,529

CASH FLOW FROM INVESTING ACTIVITIES

Receipts:Amounts specifically for new or upgraded assets 321 6,046 1,251 926 938 951 964 977 991 1,005Sale of assets 80 2,036 550 50 50 50 50 50 50 50Repayment of loans by community groups 21 16 8 6 6 6 6 6 3 3

Payments:Expenditure on renewal/replacement of assets (3,077) (3,620) (2,193) (2,605) (2,615) (2,499) (2,072) (2,059) (2,096) (2,297)Expenditure on new/upgraded assets (8,385) (14,449) (4,653) (1,068) (4,639) (4,429) (4,620) (12,013) (5,438) (8,136)Loans made to community groups (140) 0 0 0 0 0 0 0 0 0

Net cash provided by (or used in) Investment Activities (11,180) (9,972) (5,038) (2,691) (6,260) (5,921) (5,672) (13,039) (6,490) (9,375)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts:Proceeds from external borrowings 0 0 0 0 0 0 0 0 0 0

Payments:Repayment of external borrowings (1,231) (814) (851) (909) (971) (1,037) (1,107) (831) (594) (307)

Net cash provided by (or used in) Financing Activities (1,231) (814) (851) (909) (971) (1,037) (1,107) (831) (594) (307)

Net Increase/(Decrease) in Cash held (6,468) (5,980) (795) 61 (569) (1,009) 21 (6,431) 605 (1,154)

Cash at beginning of period 1,994 (4,474) (10,454) (11,249) (11,188) (11,757) (12,767) (12,746) (19,177) (18,571)

CASH AT END OF PERIOD (4,474) (10,454) (11,249) (11,188) (11,757) (12,767) (12,746) (19,177) (18,571) (19,725)

54

LONG TERM FINANCIAL PLAN -UNIFORM PRESENTATION OF FINANCES

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Operating Revenues 27,166 27,234 28,875 30,717 32,526 33,169 34,603 36,104 37,676 39,321less Operating Expenses (25,861) (27,393) (31,790) (30,859) (32,341) (32,980) (34,276) (35,393) (36,981) (38,066)Operating Surplus / (Deficit) 1,305 (158) (2,915) (142) 185 190 327 711 695 1,255

less Net outlays on existing AssetsCapital expenditure on renewal and replacement of existing assets 2,823 3,620 2,193 2,605 2,615 2,499 2,072 2,059 2,096 2,297

less Depreciation, Amortisation and Impairment (4,490) (4,747) (5,594) (5,809) (6,033) (6,267) (6,513) (6,770) (7,039) (7,321)less Proceeds from Sale of Replaced Assets (80) (36) (50) (50) (50) (50) (50) (50) (50) (50)

(1,747) (1,163) (3,451) (3,254) (3,468) (3,818) (4,491) (4,761) (4,993) (5,074)

less Net outlays on New and Upgraded Assets

Capital expenditure on New and Upgraded Assets 8,666 14,449 4,653 1,068 4,639 4,429 4,620 12,013 5,438 8,136less Amounts received specifically for New and Upgraded Assets (321) (6,646) (1,251) (926) (938) (951) (964) (977) (991) (1,005)less Proceeds from Sale of Surplus Assets 0 (2,000) (500) 0 0 0 0 0 0 0

8,345 5,803 2,902 142 3,701 3,478 3,656 11,036 4,447 7,131

less repayment of loans from Community groups (21) (16) (8) (6) (6) (6) (6) (6) (3) (3)

Net Lending / (Borrowing) for Financial Year (5,272) (4,784) (2,359) 2,976 (42) 536 1,168 (5,558) 1,244 (799)

Net Lending / (Borrowing) equals Operating Surplus / (Deficit), less Net Outlays on non-financial assets. The Net Lending / (Borrowing) result is a measure of the Council's overall (i.e. Operating and Capital) budget on an accrual accounting basis. The Net Lending / (Borrowing) result can be expected to fluctuate from year to year, given the lumpy nature of some capital expenditure. Achieving a zero result on the Net Lending / (Borrowing) measure in any one year essentially means that the Council has met all of its expenditure (both operating and capital) from the current year's revenues. The amount of Net Lending in any one year decreases the level of Net Financial Liabilities in the year by that amount. Conversely, the amount of Net Borrowing increases the level of Net Financial Liabilities.

55

LONG TERM FINANCIAL PLAN -STATEMENT OF CHANGES IN EQUITY

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26$'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s $'000s

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastACCUMULATED SURPLUS

Balance at end of previous reporting period 49,411 55,715 66,690 95,875 100,825 106,542 112,764 119,443 127,176 133,791Net Surplus/(Deficit) for year 5,629 11,487 28,336 5,784 6,123 6,141 6,291 6,688 6,686 7,259Transfers to Other Reserves (254) (248) (138) (118) (120) (122) (125) (127) (130) (132)Transfers from Other Reserves 928 132 1,205 54 55 57 57 59 60 62Balance at end of period 55,714 67,086 96,093 101,595 106,883 112,617 118,987 126,063 133,791 140,980

ASSET REVALUTION RESERVE 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877 159,877

OTHER RESERVES

Car ParksBalance at end of previous reporting period 433 442 450 460 469 478 488 497 507 517Transfers from Accumulated Surplus 9 9 9 9 9 10 10 10 10 10Transfers to Accumulated Surplus 0 0 0 0 0 0 0 0 0 0Balance at end of period 442 450 460 469 478 488 497 507 517 528

Open SpaceBalance at end of previous reporting period 90 15 15 15 15 15 15 15 15 15Transfers from Accumulated Surplus 50 0 0 0 0 0 0 0 0 0Transfers to Accumulated Surplus (125) 0 0 0 0 0 0 0 0 0Balance at end of period 15 15 15 15 15 15 15 15 15 15

Plant & Equipment Replacement ReservesBalance at end of previous reporting period 229 0 0 0 0 0 0 0 0 0Transfers from Accumulated Surplus 0 0 0 0 0 0 0 0 0 0Transfers to Accumulated Surplus (229) 0 0 0 0 0 0 0 0 0Balance at end of period 0 0 0 0 0 0 0 0 0 0

PropertyBalance at end of previous reporting period 1,460 1,107 1,129 (0) (0) (0) (0) (0) (0) (0)Transfers from Accumulated Surplus 33 22 23 (0) (0) (0) (0) (0) (0) (0)Transfers to Accumulated Surplus (386) 0 (1,152) 0 0 0 0 0 0 0Balance at end of period 1,107 1,129 (0) (0) (0) (0) (0) (0) (0) (0)

Stormwater DrainageBalance at end of previous reporting period 0 0 165 218 273 328 384 442 501 561Transfers from Accumulated Surplus 50 217 106 108 111 113 115 117 120 122Transfers to Accumulated Surplus (50) (52) (53) (54) (55) (57) (57) (59) (60) (62)Balance at end of period 0 165 218 273 328 384 442 501 561 621

Gawler East DevelopmentBalance at end of previous reporting period 0 396 615 1,385 1,725 1,579 1,123 10 11Transfers from Accumulated Surplus 396 513 1,146 1,184 1,214 1,234 1,249 1,252 1,277Transfers to Accumulated Surplus 0 (295) (376) (843) (1,360) (1,691) (2,362) (1,251) (1,277)Balance at end of period 0 396 615 1,385 1,725 1,579 1,123 10 11 11

Other ReservesBalance at end of previous reporting period 183 157 77 77 77 77 77 77 77 77Transfers from Accumulated Surplus 112 0 0 0 0 0 0 0 0 0Transfers to Accumulated Surplus (138) (80) 0 0 0 0 0 0 0 0Balance at end of period 157 77 77 77 77 77 77 77 77 77

TOTAL OTHER RESERVES AT END OF PERIOD 1,721 2,233 1,384 2,218 2,624 2,543 2,154 1,110 1,180 1,251

TOTAL EQUITY AT END OF PERIOD 217,312 229,196 257,354 263,690 269,384 275,037 281,018 287,051 294,849 302,108

56

Town of Gawler2017/18 Capital Expenditure Bids

ID Action/Project Title Project Description/ScopeResponsible

ManagerCommunity Plan - Goal

Council Motion Number Expenditure Type

2017/18 Gross Cost

2017/18 Asset Sales

2017/18 External Funding

2017/18 Internal Equity

Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

683Undertake Condition Assessment Gawler Bridges and Structures

Inspect Bridge and culvert structures except Gawler Bridge - Structural and condition Manager IES

2 Sustainable Growth Management

Capital (New/Upgraded) 40,000$ 40,000$

787

Rehabilitate the Historic Gawler Mill Inn Bridge (Stage 2 of 2). Deferral of project from 2016/17 budget Structural remediation of the Gawler Mill Bridge Manager IES


Capital (New/Upgraded) 1,160,000$ 660,000$ 500,000$

Total Bridges 1,200,000$ -$ 660,000$ -$ 540,000$ -$ -$ -$

626 Upgrade Council Works Depot Facilities

Upgrade Council Works Depot Facilities - Program. Year 1: Front fence replacement (WHS) and landscaping.Year 2: Asphalt stage 2 resurfacing (WHS) Manager IES


Capital (New/Upgraded) 100,000$ 100,000$ 75,000$

663Implement Willaston Cemetery Action Plan (Stage 3 of 5) Implement Willaston Cemetery Action Plan (Stage 3 of 5) Manager IES


Capital (New/Upgraded) 180,000$ 38,000$ 142,000$ 130,000$ 130,000$ 100,000$

714Upgrade Pioneer Park. Deferred from 2016/17 budget

Upgrade of Pioneer Park, including decking, shadesails, signage, car charging station, bike racks, bike storage hub, repair station and shower facilities. This will form part of a grant funding application under National Stronger Regions (Round 3) Manager IES



744 Gawler Civic Centre Redevelopment Continue redevelopment of Gawler Civic Centre CEO 1 Our IdentityCapital

(New/Upgraded) 10,400,000$ 4,672,125$ 5,727,875$ 950,000$

764Upgrade CCTV in Town Centre (subject to further Council resolution)

Replacement and extension of CCTV in main st and key areas within the CBD. Pending successful Grant application, seeking $100,000 in funding through Main St CCTV grant program. Indicative useful life of CCTV equipment is 10 years, consistent with existing equipment that was installed in 2009. On this basis, annual depreciation would be approximately $20kpa, which would replace existing depreciation of $13k (ie. net increase of $7k). Other recurrent operating costs would be in the order of up to $12k pa, to cover costs such as insurance and periodic (quarterly) maintenance (incl. cleaning) and repairs. However, the proposed system would not require the cost of a contractor to be engaged when access to actual footage is required as this would now be able to be achieved via remote access. Manager IES

3 A Healthy, Active, Safe, Engaged Community


174Rehabilitate Sports and Community Centre Facilities

Rehabilitate Sports and Community Centre Facilities. Replace foyer and studio marmoleum flooring $15k, Paint foyer and Rotary Room $5k, Replace Youth Shack floor $30k, replace office carpet $15k. Manager IES


Capital (Renew/Replace) 65,000$ 65,000$

646Rehabilitate Gawler Aquatic Centre (Stage 3 of 5).

Rehabilitate Gawler Aquatic Centre (Stage 3 of 5). The project involves upgrading of the pool edging and the main pool pump room upgrade. Manager IES


Capital (Renew/Replace) 200,000$ 200,000$ 200,000$ 100,000$

Total Buildings and Property 11,277,177$ -$ 4,831,605$ 38,000$ 6,407,572$ 1,355,000$ 230,000$ 100,000$

617Install Gawler History Plaques. Part deferral of project from 2016/17 budget Install Gawler History Plaques - Cr A Shackley

Manager EDDERSMC 1 Our Identity


Total Community Services 5,000$ -$ -$ -$ 5,000$ -$ -$ -$

222 Upgrade Roller Skating Equipment

Public Roller Skating programs (including Learn To Skate and School Programs) deliver Gawler Sport & Community significant income. Much of the equipment is in need of upgrade to ensure that equipment that is used and hired to program participants is safe. (3.3.1.2) Manager LCS



558Replace Major Plant Program 17/18. Signage truck refurbishment

Replace Major Plant Program 17/18Plant #343 Signage truck. Truck to be retained with minor refurbishmentTray to be new with increased work efficiency and mobile functionality, i.e. crane, tail gate lifter. Manager IES


Capital (Renew/Replace) 85,000$ 2,273$ 82,727$ 353,000$ 353,000$ 320,000$

Appendix 1 - Capital Expenditure Budget Bids 2017/18

57





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

732 Replace Light Fleet Program 17/18

Replace Light Fleet Program 17/18Plant #333 - volunteer utilityPlant #363 - rapid response utilityPlant #346 - inspectorial pool carPlant #382 - manager library and community services. Manager IES

5 A Strong Vibrant Community

Capital (Renew/Replace) 174,000$ 33,637$ 140,363$ 88,000$ 225,000$ 104,000$

Total Fleet and Equipment 269,000$ 35,910$ -$ -$ 233,090$ 441,000$ 578,000$ 424,000$

633Improve Accessibility to Community Infrastructure Program 17/18

Improve Accessibility to Community Infrastructure Program 17/18. The budget allowance is for the upgrade of 14 pram ramps to DDA compliance. Manager IES


Capital (New/Upgraded) 27,000$ 27,000$ 28,000$ 29,000$ 30,000$

671 Construct New Footpaths Program 17/18

Construct New Footpaths Program 17/18. Bella St - Berrett Rd to End (L); Bellevue Crt - Bella St to End (L); Para Rd - Dawson Rd to Barnet Rd (R); Dawkins Ave - Chamberlain Rd to Main North Rd (R); Farrow Road - Para Rd to Hillier Rd; Sunnyside Dr - Purcell Gr to Rossiter Dr. Manager IES



733Construct Rubble Path along Dawson Road from Clark Road to Gawler Bypass

Construct a rubble path along Dawson Road from Clark Road to Gawler Bypass to link existing walking path. This provides a continued walking path for school children from Evanston Gardens to Gawler District School. Manager IES



693 Renew Footpaths Program 17/18

Renew Footpaths Program 17/18. Roads are as follow.1.Murray Street - Cowan St to Opposite Union St (L)2.High Street - Calton Rd to Centrelink Access (R)3.Eight Street - 18th St to 12th St (L)4.Seventh Street - Adelaide Rd to Hill St (L)5. Dawson Road - Clark Rd to Dysart Rd -Rubble (L)5. Parnell Street Porter St to School crossing Manager IES


Capital (Renew/Replace) 184,000$ 184,000$ 87,000$ 90,000$ 92,000$

Totals Footpaths 576,000$ -$ -$ -$ 576,000$ 465,000$ 875,000$ 901,000$

652Free Public Wi-Fi Roll Out (subject to further Council resolution)

The availability of Public Wi-Fi would allow residents, local business and tourists to use the fast, reliable and consistent internet access. Report being presented to council in May 2017 regarding this proposal. Manager FCS



729MS Licensing Consolidation - SQL Server and Client Access Licenses

Council is significantly underlicensed in Database and User Access Licenses with resulting legal implications. Manager FCS



730Thin Client Implementation - Cloud Readiness

Implement first batch of Thin Client computing in preparation for Cloud migration. Manager FCS



749 Purchase Infocouncil softwareInfocouncil is a software application designed to specifically manage electronic agendas and minutes. Manager FCS



783Corporate Plans Development Stage 2 - Reporting

To implement Reporting functionality for SharePoint Corporate Plans Manager FCS



Totals Information Technology 260,000$ -$ -$ -$ 260,000$ 90,000$ -$ -$

758Construct New Kerb and Gutter Main North Rd (Gawler Green to Ames Dr W'Side)

Construct New Kerb and Gutter Main North Rd (Gawler Green to Ames Dr W'Side). Year 1/3. DPTI has agreed to provide the asphalt works associated with widening the road to the new kerb location. This is a cost sharing arrangement. This is also the first of three kerbing upgrades along Main North Road in the coming years, heading north from this location. The kerb is the extent of Council's cost contribution only, not the road widening component. Manager IES



58





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

163 Renew Kerb and Gutter Program 17/18

Murray Street Cowan St to Coles entry (L)Renew Kerb and Gutter on various roads before resealing.O'DEA COURT -Cork Road toCul-de-sacLISA MARTIN COURT -Cork Road toCul-de-sacLUNDIE CRESCENT -Cork Road toMahoney roadLUNDIE CRESCENT -Mahoney Road toRonan CourtLUNDIE CRESCENT -Ronan Court toLundie CtLUNDIE CRESCENT -Lundie Cr toCul-de-sacRONAN COURT -Lundie Crescent toCul-de-sacNOACK ROAD -East Terrace to EndJANE STREET -Redbanks Road toEdward StreetJANE STREET -Edward Street toBond StreetJANE STREET- Bond Street to Chamberlain RoadBOND STREET -Davies Street to Jane StreetEDWARD STREET- Davies Street toJane StreetPRINCESS STREET- Redbanks Roadto Davies StreetPRINCESS STREET -Davies Street to Ayling StreetPRINCESS STREET- Ayling Street toMain North RoadSTITHIANS DRIVE - Phillips Avenue toMarion DriveSTITHIANS DRIVE -Marion Drive to Calton RoadMARION DRIVE -Hemaford Grove to140m EastMARION DRIVE- 140m East toStithians DrivePHILLIPS AVENUE - No.5 toStithians DrPHILLIPS AVENUE - Stithians Dr toRebbeck CourtPHILLIPS AVENUE - Rebbeck Ctto Matz CtPHILLIPS AVENUE -Matz Ct toLally DrivePHILLIPS AVENUE -Lally Drive toNorman CtPHILLIPS AVENUE -Norman Ct toCalton RdMATZ COURT -Phillips Avenue toY-End Manager IES



Totals Kerb and Gutter 300,000$ -$ -$ -$ 300,000$ 204,000$ 325,000$ 290,000$

577

Design and Commission Gawler Civic Centre Iconic Public Art. Deferred from 2016/17 budget. Design and Commission Gawler Civic Centre Iconic Public Art Manager LCS 1 Our Identity


740Rehabilitate Gawler Urban Rivers Biodiversity Program (Year 5 of 5)

On-going joint venture with NRM which includes erosion works and biodiversity planting, and woody weed removal programs. Manager IES

4 To Respect and Nurture the Environment


745 Upgrade Parking Facilities Clonlea Reserve

Upgrade Parking Facilities Clonlea Reserve. The project involves undertaking a traffic review, developing a concept layout and upgrading existing parking facilities in Clonlea Reserve. This is to improve existing conditions, extend the gravel carpark and improve DDA compliance. Manager IES



759Landscape Intersection Paternoster Road and Chignell Circuit Reid

Planting of entry statement and installation of irrigation system to support plantings in first year. The developer was required to undertake open space works including but not limited to landscaped areas, bunker restoration and a pedestrian bridge in Reid Reserve etc. Council received a conribution from the devleoper, which was spent on upgrading Reid Reserve and was also complimented with grant funding to further upgrade Reid Reserve at the time. Council undertook this work internally after drawing upon these funds. Given the funds only extended so far, the works on Paternoster Rd were originally proposed by the developer in terms of landscape works, however the contribution amount finally agreed upon between parties was not of sufficient amount to cover this item. Manager IES



59





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

781

Design and Construction of Dog Park. Deferred from 2016/17 budget. Subject to further Council resolution

Design and Construction of a dedicated dog park in accordance with the Dogs in Gawler Report - not yet presented to Council for consideration. Manager IES


Capital (New/Upgraded) 80,000$ 80,000$ -$

784 All Wars War Memorial

Design and Construct All Wars War Memorial in Pioneer Park in readiness for Remembrance Day November 2018 - the 100 year centenary of the end of World War I.

Manager EDDERSMC 1 Our Identity


791 Landscape Entry Statement - Pilot Project

Implementation of the landscape entry statement into Gawler progressing on the design works completed in 16/17 subject to report to Council Manager IES 1 Our Identity


586 Renew Irrigation System Willaston Oval Installation of a new irrigation system at Willaston Oval Manager IES



746 Renew Fencing and Bollards Program 17/18 Renew Fencing and Bollards Program 17/18. Manager IES



747 Replace Irrigation Systems Program 17/18. Gawler South ($95k); Pine Park ($20k); Lions Park ($20K) Manager IES

2 Sustainable Growth Management 2016:09:353


753 Playground EquipmentNew or replacement equipment. Site(s) to be determined by Council Manager IES



785Renewal works for hardscape features in Reserves

Hardscaping Renewal Implementation Works - Statues, Structures, BBQ's, Furniture and Lighting. Manager IES


Capital (Renew/Replace) 50,000$ 50,000$ 60,000$

Totals Open Spaces 1,010,000$ -$ 285,000$ 146,000$ 579,000$ 166,000$ 211,000$ 226,000$

680Purchase new Module for Health Manager Software

Purchase new modules for Health Manager permitting field data transfer for Environmental Health businesses including invoice generation for food premises inspections. Cost will include purchase of hardware for field operations.

Manager EDDERSMC



Totals Regulatory Services 20,000$ -$ -$ -$ 20,000$ -$ -$ -$

180Upgrade Rural Road Intersection Aprons Program 17/18

Upgrade of rural road intersections and aprons on Coventry Rd crossing with Coles, Warrall, Salem, Athol, Clover Glen, Ormsby, and Panes Rd Manager IES


Capital (New/Upgraded) 80,000$ 80,000$ 45,000$ 45,000$

731 Implement Road Safety ImprovementsImplementation of road safety improvements to respond to community feedback. Manager IES



748Facilitate the Construction of the Link Road. Part deferred from 2016/17 budget

Provide support and contract services for the implementation of the Link Road. Potential for inclusion in overall Gawler East Link Road project Manager IES



765Upgrade Scheibener Terrace and Community House Gawler

These works are intended to cover stormwater, kerbing and landscape upgrades to the verges in Scheibener Tce adjacent Community House. The final scope is to be confirmed however initial estimate allows for approx $30k of landscaping (mostly to the southern verge adjacent the Community House) / water sensitive urban design, and $50k for civil and stormwater works. Manager IES



788

Upgrade Bridge St South and Adelaide Rd from Murray St to Tenth St (Stage 6). Deferral of project from 2016/17 budget

Finalise the design and implementation of upgrade works to Bridge St South and Adelaide Rd from Murray St to Tenth St. $600k funding provided via the LGA Special Local Roads Program. Manager IES


Capital (New/Upgraded) 1,000,000$ 600,000$ 400,000$

522 Resheet Rural Roads Program 17/18 Resheet Rural Roads Program 17/18. Campania Road North Manager IES



60





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

562 Reseal Roads Program 17/18

g / p p pgaprons ID180.O'DEA COURT -Cork Road toCul-de-sacLISA MARTIN COURT -Cork Road toCul-de-sacLUNDIE CRESCENT -Cork Road toMahoney roadLUNDIE CRESCENT -Mahoney Road toRonan CourtLUNDIE CRESCENT -Ronan Court toLundie CtLUNDIE CRESCENT -Lundie Cr toCul-de-sacRONAN COURT -Lundie Crescent toCul-de-sacNOACK ROAD -East Terrace to EndJANE STREET -Redbanks Road toEdward StreetJANE STREET -Edward Street toBond StreetJANE STREET- Bond Street to Chamberlain RoadBOND STREET -Davies Street to Jane StreetEDWARD STREET- Davies Street toJane StreetPRINCESS STREET- Redbanks Roadto Davies StreetPRINCESS STREET -Davies Street to Ayling StreetPRINCESS STREET- Ayling Street toMain North RoadSTITHIANS DRIVE - Phillips Avenue toMarion DriveSTITHIANS DRIVE -Marion Drive to Calton RoadMARION DRIVE -Hemaford Grove to140m EastMARION DRIVE- 140m East toStithians DrivePHILLIPS AVENUE - No.5 toStithians DrPHILLIPS AVENUE - Stithians Dr toRebbeck CourtPHILLIPS AVENUE - Rebbeck Ctto Matz CtPHILLIPS AVENUE -Matz Ct toLally DrivePHILLIPS AVENUE -Lally Drive toNorman CtPHILLIPS AVENUE -Norman Ct toCalton RdMATZ COURT -Phillips Avenue toY-EndLALLY DRIVE -Phillips Avenue toSunnydale AvenueNORMAN COURT - Phillips Avenue toT-EndREBBECK COURT -Lyndoch Road toPhillips AvenueTHEODORE STREET -Helen Streetto Russell StreetTHEODORE STREET -Edward Crescent toHelen StreetTRIM CRESCENT - Edward Cr West toEdward Cr East Manager IES



664Undertake Road Crack Sealing Program 17/18

Surface crack sealing on various roads to prevent water ingress into pavement structure.Murray RdFlinders St-Barber StLodge Ct Princess St-EndEaston DrCalton Rd-Treleaven WayCockshell DrMelaleuca DrHemaford GrHemaford GrMelaleuca DrEucalypt DrBarnet StRyde StHillier RdKrieg RdMNRTingara RdRussell StKrieg RdSunnyside DrCurnow CtStage-2Buckley StMurray Hillier CtFarrell StFarrell StBuckley StBuckley StGleeson GrTrinity DrThiele CrGreenslade BvdTiver RdDarling St

Manager IES



743 Reconstruction Shoulders of Rural Roads

Reconstruction of existing rural road shoulders along Coventry Rd. to improve general road safety in the area and protect the road pavement asset itself. Manager IES



Totals Roads 2,125,000$ -$ 600,000$ -$ 1,525,000$ 1,072,000$ 1,094,000$ 1,017,000$

751Construct Carmelo Cl Drainage to East Tce Detention Basin Construct Carmelo Cl Drainage to East Tce Detention Basin Manager IES



776 Miscellaneous Stormwater Drainage Works Design and implementation of various small scale stormwater drainage capital works Manager IES



777 Elaine Street Stormwater Upgrade Upgrade stormwater drainage in Elaine Street easement Manager IES



61





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

778

SUA Deed Harvest & Distribution Network incl. ASR, Evanston. Part deferral from 2016/17 budget

In accordance with the Southern Urban Areas Deed, the Harvesting Infrastructure ASR Headworks component to be procured by Council. Manager IES



779 SUA Deed - Dawson Road Wetland SUA Deed - Delivery of the Dawson Road Wetland component of the Infrastructure Deed Manager IES



786

Construct Stormwater Drainage Network at Willaston (Stage 1). Part deferral of project from 2016/17 budget

Implementation of underground drainage infrastructure through lower Willaston. This is carry forward of the same project ($1.2 Million) from 16/17. Manager IES



649Construct Erosion Control at Gawler River Outfalls

Construct Erosion Control at Gawler River Outfalls due to condition of existing infrastructure. There is no NRM funding for this project, as only relates to the upkeep of our stormwater infrastructure / headwall outlets. Manager IES


Capital (Renew/Replace) 75,000$ 75,000$ 75,000$

752Flood Damage and Mitigation Works Gawler Urban Rivers

Capital Works and associated asset investigations following September 2016 floods, Ford rehabilitation works, River Bank Rehabilitation (Stabilisation and Plantings), Rehabilitation of scoured footbridge abutments and paths. Manager IES

2 Sustainable Growth Management 2016:11:444


Totals Stormwater 1,095,000$ -$ 50,000$ 51,000$ 994,000$ 415,000$ 200,000$ -$

287 Improve Bus Stops Program 17/18

Improve Bus Stops Program in accordance with recommendations from the Bus Stop Audit Report in 16/17, and to implement a rollout of bus stop upgrades to DDA Compliance Standards for all bus stops in the Town of Gawler by 2022. Manager IES



789Renew Traffic Control Signal to DPTI Standard (Stage 2 of 2) Renew Traffic Control Signal to DPTI Standard (Stage 2 of 2) Manager IES



790Design Gawler Central Urban Precinct (Stage 2 Detailed Design)

Undertake the detailed design (Stage 2) of the Gawler Central Urban Precinct, including community consultation. The areas of Walker Place and immediate surrounds up to the bridge will be developed in preparation for implementation in 18/19. The implementation will be Stage 3 of the project. Manager IES 1 Our Identity

Capital (New/Upgraded) 70,000$ 70,000$ 1,000,000$

735 Renew Street Lighting Program 17/18

Scope of work is to upgrade street lighting on Murray Road Willaston and align with the Street Lighting Audit Report findings and previous IES Report Motions outlining all new lighting installation upgrades will be LED technology. Manager IES



755 Renew Street Signage Program 17/18Renew street signs at Town centre as per Street Signs Audit Report 2015 Manager IES 1 Our Identity


756 Renew Street Furniture Program 17/18

Renew Street Furniture Program 17/18.Renew street and park bin installations to align with new bin lifter utility and larger bin capacity. Aligned with depot capacity building. Manager IES 1 Our Identity


763 Replace Street Tree Program 17/18

Existing Acacia Pendula trees along Bond Street currently cause damage to the road surface, kerbing, overhead powerlines and properties. The Council and SA Power Networks approved trees would be replaced with 3m tall advanced trees to avoid denuding the street amenity. Manager IES 1 Our Identity


Totals Street Assets 325,000$ -$ -$ -$ 325,000$ 160,000$ 1,155,000$ 155,000$

Total Capital Expenditure Bids 2017/18 18,462,177$ 35,910$ 6,426,605$ 235,000$ 11,764,662$ 4,368,000$ 4,668,000$ 3,113,000$

Capital Expenditure LTFPCapital (Renew/Replace) 2,904,000$ 2,528,000$ 35,910$ 50,000$ 66,000$ 2,376,090$ 2,395,000$ 2,648,000$ 2,099,000$

$10,400,000 GCC Capital (New/Upgraded) 14,353,000$ 15,934,177$ -$ 6,376,605$ 169,000$ 9,388,572$ 1,973,000$ 2,020,000$ 1,014,000$ Total Capital Expenditure $ 17,257,000 $ 18,462,177 $ 35,910 $ 6,426,605 $ 235,000 $ 11,764,662 $ 4,368,000 $ 4,668,000 $ 3,113,000

62

Town of Gawler2017/18 New Operating Initiatives



Council Motion Number

2017/18 Gross Cost



Reserve Funding2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

485Update Building Asset Management Plan. Deferral of project from 2016/17 Budget.

Component of work required to meet legislative requirements around updating of Asset Management Plans every 4 years (within 2 yrs of an election). Council Policy 5.7 & 5.8 and leases require 5 yearly audit inspections to be undertaken on leased premises. Audits will be undertaken on all Council owned and leased buildings providing a 15 year projection on maintenance/replacement and refurbishment requirements. Cost is approx. $2,500 per property (23 leased premises and 14 Council buildings/structures). Some Lessee's are required to reimburse council for these audits. Manager IES 1 Our Identity 22,500$ 13,000$ 9,500$

Total Buildings and Property 22,500$ 13,000$ -$ 9,500$ -$ -$ -$

202 Emergency Management Plan

Council's annual contribution towards the implementation of the regional Emergency Management Plan which includes funding for the Regional Emergency Management Officer located at The Barossa Council.

Manager EDDERSMC

3 A Healthy, Active, Safe, Engaged Community 15,000$ 15,000$

792 Digitisation of Cultural Heritage Collection

Creating a digital catalogue and imagery for the Heritage Collection as well as enabling a digital capture of the collection for archival purposes. Manager LCS 1 Our Identity 40,000$ 20,000$ 20,000$ 20,000$

569Develop and deliver outreach library programs

During the closure of the main library in Murray Street the Outreach Library services will be vital to ensure community members are still able to connect with the library service. These outreach services will focus on Programs and Early Literacy. Manager LCS


618Mayor's Young Women's Leadership Program

6 month program employing a blended learning methodology based around peer / mentor knowledge / sharing, practical workplace application and personal reflection. CEO

5 A Strong Vibrant Community 4,000$ 4,000$

- Mayor's Christmas Card Competition

A competition for local children to design the Mayor's official Christmas cards. The winner will receive appropriate recognition and a small prize. CEO


Total Community Services 72,000$ 20,000$ -$ 52,000$ 20,000$ -$ -$

725

Undertake Strategic Risk Review Internal Audit. Deferral of project from 2016/17 budget

On the recommendation of the Audit Committee, a consultant is to be appointed to assist with a strategic risk review of selected Council operations. Manager FCS


Total Corporate and Finance 20,000$ -$ -$ 20,000$ -$ -$ -$

260

Prepare Gawler and Surrounds Stormwater Management Plan (Stage 3 of 3). Deferral of project from 2016/17 budget

Continuation of an existing study with the output for this respect to the Gawler River and North and South Para Rivers. The stormwater management plan will include:•Proposed flood mitigation strategy.•Floodplain mapping incorporating the proposed flood mitigation strategy.•Cost/benefit calculations.•Program of works, incorporating priority ranking criteria.•Consultation report. Manager IES

2 Sustainable Growth Management 80,000$ 80,000$

563

Implement Cat By-Law from Animal Management Plan. Deferral of project from 2016/17 budget Implement Cat By-Law from Animal Management Plan

Manager EDDERSMC

4 To Respect and Nurture the Environment 15,000$ 15,000$

Appendix 2 - Operating Initiatives Budget Bids 2017/18

63





2017/18 Gross Cost




2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

773 Gawler East Structure Plan DPA

Update Development Plan to reflect investigations associated with the provision of future critical infrastructure within Gawler East This includes the preferred alignment of the Gawler East Link Road, Stormwater Infrastructure, Traffic Interventions, open space and community Infrastructure. The DPA will also define the relationships between infrastructure provision, funding and development via land use policy.

Manager EDDERSMC


775Finalise Residential and Character DPA. Deferral of project from 2016/17 budget

Finalisation of the Residential and Character DPA - should the Minister agree to the Statement of Intent lodged in 2016.

Manager EDDERSMC 1 Our Identity 25,000$ 25,000$

782 Finalisation of Evanston Gardens DPA

The Evanston Gardens DPA commenced in 2015 as a developer funded DPA design to rezone land within Hillier and Evanston Gardens from deferred urban to residential and residential Park in order to meet an identified need.

Manager EDDERSMC

2 Sustainable Growth Management 12,000$ 12,000$ -$

313Prepare a Transit Orientated Gawler Town Centre Development Plan Amendment

Prepare a Transit Orientated Town Centre Development Plan Amendment, incorporating planning for electrification of train line to Gawler and potential extension of train service to former Wheatsheaf Inn at Gawler East. Manager DERS

2 Sustainable Growth Management 50,000$ 50,000$ -$

Total Growth Policy and Initiative Investigations 232,000$ 62,000$ -$ 170,000$ -$ -$ -$

771 Commercial and Rural Areas DPAContinuation of Rural Land Use and Infrastructure Investigations associated with the Commercial and Rural Areas DPA.

Manager EDDERSMC 1 Our Identity 85,000$ 65,000$ 20,000$

Total Land Use Policy 85,000$ 65,000$ -$ 20,000$ -$ -$ -$

203Karbeethan Reserve Master Plan. Deferral of project from 2016/17 budget

Development of Karbeethan Reserve Master Plan - Priority Project identified within Gawler Open Space Sport & Recreation Plan. Manager LCS

3 A Healthy, Active, Safe, Engaged Community 100,000$ 100,000$ -$

766Gawler Biodiversity Management Plan. Deferral of project from 2016/17 budget Completing the Gawler Biodiversity Management Plan in 17/18. Manager IES

4 To Respect and Nurture the Environment 2016:12:515 40,000$ -$ 25,000$ 30,000$

Total Open Spaces 140,000$ -$ 100,000$ 25,000$ 30,000$ -$ -$

631

Karbeethan Sporting Association Governance/Management. Deferral of project from 2016/17 budget

Implementation of Governance and Management Framework for Karbeethan Sporting Association Manager LCS


Total Recreation and Sport 8,000$ -$ -$ 8,000$ -$ -$ -$

341 Implementation The Regional Health Plan

In collaboration with our partner Councils and key stake holders undertake delivery and monitoring of key milestones and actions identified in the Regional Public Health Plan. Report to the Minister for Health.

Manager EDDERSMC

3 A Healthy, Active, Safe, Engaged Community 5,000$ 5,000$ 5,000$ 5,000$ 5,000$

772State Government Planning Portal - Council Contribution

State Government is seeking to recover the cost associated with the development of the new e-planning portal as per the Planning, Development and Infrastructure Act 2016.

Manager EDDERSMC


Total Regulatory Services 33,000$ -$ -$ 33,000$ 5,000$ 5,000$ 5,000$

Total Operating Initiatives 2017-18 612,500$ 160,000$ 100,000$ 337,500$ 55,000$ 5,000$ 5,000$

64





2017/18 Gross Cost

2017/18 Asset Sales



Reserve Funding

2017/18 Net Cost

2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

Capital Expenditure Bids 2017-18 'Below The Line' (not considered for funding)

592 Implement Hardscaping Program 17/18 Implement Hardscaping Program 17/18 Manager IES



Cameron St (closed section) Rehabilitation & Landscaping Cameron St (closed section) Rehabilitation & Landscaping Manager IES



TotalCapital Expenditure Bids 2017-18 'Below The Line' (not considered for funding) 70,000$ -$ -$ -$ 70,000$ 60,000$ 35,000$ 40,000$

Appendix 3 - Below the line Budget Bids 2017/18 (projects not considered for funding)

65





2017/18 Gross Cost




2018/19 Gross Cost

2019/20 Gross Cost

2020/21 Gross Cost

Operating Initiatives 2017-18: 'Below The Line' (not supported for funding at this stage)

171Essex Park and Aquatic Centre Sporting & Recreation Precinct

Master Plan for Essex Park and Aquatic Centre Sporting Precinct - Multi-Sport Regional Sporting and Recreation Precinct. The fullscope of the Master Plan will be determined following presentation to Council Manager LCS

3 A Healthy, Active, Safe, Engaged Community 100,000$ 50,000$ 50,000$ 20,000$

245 Prepare Tree Management Plan

Prepare Tree Management PlanYear 1 Write a brief and engage consultant, consult and prepare draft planand finalise Plan Manager IES 1 Our Identity 30,000$ 30,000$

620Demolition of Apex Shed and Associated Infrastructure (Clonlea Park)

Demolition of unused Apex Shed in Clonlea Park and make safe the old barn, stage area & associated infrastructure. Manager IES


TotalOperating Initiatives 2017-18: 'Below The Line' (not supported for funding at this stage) $ 140,000 $ 50,000 $ - $ 90,000 $ 20,000 $ - $ -

66

2017/2018 BUDGET - OPERATING REVENUE ANALYSIS

Recurrent RevenueAdopted Budget

2016/2017

Forecast 2016/2017

Budget 2017/2018

% Variance (Adopted /

Budget)

Notes

Rates

General Rates (incl natural growth) (19,340,398) (19,340,398) (20,400,000) 5.5%Incorporates 3% base increase and 2% growth from new property development

Waste Management Service Charge (1,967,274) (1,939,869) (1,911,558) -2.8%Reduction in fees following kerbside waste collection tender process by NAWMA

Late payment penalty fines (90,000) (50,000) (50,000) -44.4%Reduction in income as a result of % reduction in outstanding debtors and increase in no. of customer payment arrangements

Separate Rates:Gawler Business Development Group (Business marketing & development) (167,727) (167,727) (172,759) 3.0% Collected on behalf of the Gawler Business Development GroupNatural Resources Management Levy (328,948) (328,948) (352,393) 7.1% Collected on behalf of State GovernmentLess Rebates & Remissions:

Mandatory Rebates 337,470 337,470 351,879 4.3%

Mandatory rebates provided to Schools, Hospitals, Churches, etc. Potential for future large increase in rebates pending transfer of SA Housing Trust homes to Community Housing providers who are eligible for 75% rebate

Discretionary Rebates 887,088 885,317 923,975 4.2%

Rebates provided based on 'tiered' rating methodology for Commercial and Industrial properties (including capping rebates). Capping rebates will cease to apply from 2016/17 in accordance with Strategic Rating Policy

Remissions (Valuation objections, etc.) 15,600 (400) 15,600 0.0% Remissions based on property valuation objections

TOTAL (20,654,189) (20,604,555) (21,595,256) 4.6%

Statutory Charges

Dog Registration Fees & Expiations (275,000) (255,000) (281,000) 2.2% Based on approximately 5,400 registered dogs

Development Application Fees (256,990) (232,990) (239,146) -6.9%

Revenue determined by volume/nature of applications received - reduction in volume of applications during 2016/17 hence reduction in revenue

Parking fines (140,000) (133,833) (141,000) 0.7% Revenue based on no. of expiations issued.

Food inspections & audits (17,000) (17,000) (12,140) -28.6%

Revenue based on food audits and inspections undertaken - revenue reduction due to ceasing of external audits across other Council areas thereby creating capacity for impact of new Local Nuisance and Litter Control Act 2016

Property search fees (46,000) (46,000) (47,000) 2.2% Revenue based on volume of property searches

Other fines & expiations (4,725) (4,725) (4,789) 1.4%Other sundry fines & expiations (e.g. inflammable undergrowth expiations, swimming pool regulations)

TOTAL (739,715) (689,548) (725,075) -2.0%

Appendix 4 - Operating Revenue Analysis

67



2016/2017

Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

User Charges

Swimming Pool (303,000) (328,000) (333,500) 10.1%Inrease in revenue based on increased patronage and actual revenue 2016/17

Recreation Centre (440,000) (418,000) (452,000) 2.7%

Leases & Rentals (355,776) (339,320) (430,385) 21.0%

Based on Lease/Licence agreements. CPI increments generally apply. Increase in revenue as a result of new rental income at Administration Centre

Cemetery fees (170,500) (182,500) (192,273) 12.8% Fees structure split between Residents/Non-Residents in 2016/17Visitor Information Centre (67,500) (67,500) (70,500) 4.4% Souvenir sales, accommodation bookings, various ticket sales. Immunisation program fees (10,453) (10,453) (11,671) 11.7%Other User charges (85,106) (112,138) (132,544) 55.7%

TOTAL (1,432,335) (1,457,911) (1,622,873) 13.3%

Grants, Subsidies & Contributions Note: This does not include Capital Grants

Federal Government grants:Financial Assistance Grant (1,172,210) (1,784,477) (606,605) -48.3%Local Roads Grant (296,524) (449,234) (152,710) -48.5%Supplementary Local Roads Grant (150,000) New funding announced in Federal Budget (2 year funding)'Roads to Recovery' Grant (500,131) (500,131) (433,000) -13.4% Based on advice from Federal GovernmentState Government grants:Library / Community Services Operating Grant (64,000) (73,528) (64,000) 0.0%Home Assistance Scheme (626,707) (634,430) (660,625) 5.4%Fuel Tax rebates (11,750) (11,750) (11,750) 0.0%Car Parking, Drainage & Open Space Contributions (100,000) (220,000) (102,000) 2.0%

Includes Developer contributions towards footpaths, stormwater drainage & carparking and other minor grants

Gawler & Surrounds Stormwater Management (150,000) (150,000) 0 -100.0% Final contribution 2016/17 included as New InitiativeWalking & Cycling Strategy (20,000) (20,000) 0 -100.0%Gawler Surrounds Biodiversity Plan (20,000) (20,000) -100.0%Gawler East Development (incl. Link Road) (472,080) Developer contributions based on 80 new allotmentsOther Grants, Subsidies & Contributions 0 (5,000) (115,000)

TOTAL (2,961,322) (3,868,550) (2,767,770) -6.5%

Investment Income

Local Government Finance Authority - Developer funds (33,000) (23,300) (20,000) -39.4%

Based on value of associated equity funds held towards future capital works. Funds held in trust with LGFA with interest reinvested

Federal Govt announced in May 2017 that 50% of 2017/18 contributions would be paid in advance in 2016/17

68



2016/2017

Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

Local Government Finance Authority - Other (26,000) (17,200) (13,000) -50.0%Based on projected future cashflows - LTFP projects future transition to reliance on bank overdraft

National Australia Bank (3,500) (2,000) (3,500) 0.0% Minimal funds held in daily operating account

Community Loans - interest repayments (1,679) (1,679) (168) -90.0%Based on associated loan schedules - interest component of repayments reduces over the life of the loans

TOTAL (64,179) (44,179) (36,668) -42.9%

Reimbursements

Other Councils (10,000) (10,000) (10,000) 0.0%DC Mallala contribution towards Library services provided at Two Wells

Vehicle contributions (90,500) (84,500) (111,500) 23.2% Employee contributionsLegal fees (including Debtor recovery) (53,000) (15,000) (30,000) -43.4% Recovery of legal fees

Insurance - claims, rebates, distributions (185,000) (236,561) (222,000) 20.0%Rebates from Local Government Risk Services insurance schemes

Traineeship rebates (23,000) (23,000) (43,500) 89.1% Additional trainee engaged during 2016/17-increase from 2 to 3Other reimbursements (53,183) (35,783) (60,846) 14.4%

TOTAL (414,683) (404,844) (477,846) 15.2%

Other Income

Sundry income - Town Planning (15,000) (65,000) (12,000) -20.0% Privately funded DPA developer contributions

Sundry income - Commissions (4,900) (4,900) (4,900) 0.0%Commissions from various activities at the Visitor Information Centre

Sundry income - Other (9,700) (29,814) (8,450) -12.9%Donations (750) (750) (750) 0.0% Various 'one-off' donations

TOTAL (30,350) (100,464) (26,100) -14.0%

Net Gain - Joint ventures & Associates

Northern Adelaide Waste Management Authority 0 0 (75,000)Movement in Council's equity share - based on budget provided by the Authority

Gawler River Floodplain Management Authority 0 0 0

TOTAL 0 0 (75,000) #DIV/0!

TOTAL INCOME (26,296,773) (27,170,051) (27,326,588) 3.9%

69

2017/2018 BUDGET - OPERATING EXPENDITURE ANALYSIS

Recurrent Expenditure Adopted Budget 2016/2017

Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

Employee Costs

Salaries & Wages 8,552,432 8,075,881 8,640,697 1.0%Increase allows for annual adjustments in line with Enterprise Bargaining Agreements

Superannuation 866,763 855,956 947,604 9.3%Income Protection Insurance 103,099 103,099 112,931 9.5%

Workers Compensation Insurance 424,601 430,601 465,020 9.5%

TOTAL 9,946,895 9,465,537 10,166,252 2.2%

Staff FTE nos. 121.87 121.87 No increase in FTE nos.

Materials, Contracts & Other Expenses

Contractors - Consultants

Building Assessment 10,000 5,000 10,000 0.0%Specialist assistance provided by external building consultants / surveyors.

Human Resources 80,000 80,000 80,000 0.0%Budget provision for HR advice as required (in lieu of HR Manager) - incl. regional support agreement with The Barossa Council

Fleet Management 20,000 20,000 20,000 0.0% Fleet management software Heritage 30,000 30,000 30,000 0.0% Heritage advisory servicesTown Planning Projects 25,000 9,700 25,000 0.0% Development Assessment consulting adviceGrants Submission & Professional writing 50,000 40,000 40,000 -20.0% Reduction based on actual costs incurredOther Consultants 142,250 210,909 173,125 21.7%

Contractors - Employment Agency StaffSport & Community Centre 72,800 72,800 74,984 3.0% Casual staff for various Centre programsSwimming Pool 272,800 212,800 292,520 7.2% Lifeguards Depot 15,000 28,500 15,000 0.0% Casual/relief staffOther 2,500 - - -100.0% Casual/relief staff

Contractors - Operating Lease/LicencesHeritage Collection storage - Lease fees 2,621 2,621 3,230 23.2%Computer Hardware - Lease fees 215,000 215,000 234,551 9.1%Computer software - Licence fees 337,850 313,850 293,342 -13.2%Other Leases & Licences 53,200 53,200 46,800 -12.0%

Contractors - OtherWaste Management - Collection/Disposal 1,978,534 2,044,426 1,938,245 -2.0% NAWMA (Kerbside collection & disposal service)

Increases due to new positions in 2016/17 that were only part funded in that year due to commencement dates after 1/7/16. Full year oncosts for such positions subsequently need to be provided for in 2017/18

Appendix 5 - Operating Expenditure Analysis

70



Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

External Auditor 27,800 27,800 29,808 7.2% Dean Newbery & Partners Payment Collection agents / Banking services 85,090 85,090 85,064 0.0%Home Assistance Scheme 198,100 205,823 229,361 15.8% Based on level of associated grant funding receivedStreet Cleaning 123,000 123,000 123,000 0.0% Programmed street cleaning of CBD and urban streets. Plant Servicing & Repairs 135,000 137,000 135,000 0.0% Servicing and repairs of heavy/light fleet vehiclesRoads - Linemarking 50,000 50,000 50,000 0.0% Periodic Linemarking of sealed roadsRoads - Kerb & Footpath repairs 95,000 95,000 95,000 0.0%Roads - Road seal repairs 20,000 20,000 20,000 0.0% Crack sealing, pothole repairs, etcS/W drainage - Clean pipes/pits/drains 61,000 61,000 61,000 0.0% Programmed cleaning of side entry pits / pipes / drainsWeedspraying 48,200 48,200 48,200 0.0% Weedspraying of Ovals, Parks, Footpaths, etcPark/Street tree maintenance 12,000 12,000 12,000 0.0%

Buildings - Cleaning services 206,380 218,120 238,108 15.4%Programmed cleaning of various Council buildings. Reduction due to change in supplier and service level review during 2016/17

Buildings - Security services 62,360 61,060 58,815 -5.7%Buildings - Other Maintenance & repairs 180,520 166,975 160,380 -11.2%Internet expenses 14,600 19,600 5,452 -62.7%Office equipment maintenance 40,000 44,400 41,000 2.5% Routine servicing and repairs of photocopiers, etcIndependent Members fees 25,100 25,100 25,100 0.0% Audit Committee ($9.5k), Development Assessment Panel ($15.6k)

Couriers/Freight charges 10,900 15,400 24,950 128.9%

includes agenda/minutes delivery charges, freight charges, etc. Increase due to additional library book courier costs across increased number of sites (during Civic Centre redevelopment)

Equipment Hire 69,500 69,500 64,000 -7.9%

External hire of various plant/equipment - incl. Roller hire, elevated work platforms, Coffee machine hire (Gawler Aquatic Centre / Sports & Community Centre)

Property valuations 41,700 45,700 48,000 15.1% Provided by Valuer-General for rating purposes. Printing - Community Newsletters 546 546 1,000 83.2%Printing - Rate Notices 11,300 11,300 12,000 6.2%Printing - Other 30,000 25,000 33,000 10.0%

Property rent 58,917 67,477 - -100.0%Staff at former Centrelink Bldg office relocated to new Administration Centre

Lands Title Office reports 3,200 3,200 3,200 0.0% List of property ownership transfer reports for rating purposesSummer Initiatives 11,000 11,000 11,000 0.0% Outdoor film festival, etc.Milne Road stormwater maintenance 30,000 30,000 - -100.0% Clearing of watercourseContractors - Communication & Marketing 40,000 40,000 30,000 -25.0%Gawler Activation Program 42,000 42,000 39,000 -7.1%Australia Day Breakfast 4,000 6,826 6,500 62.5%Murray Street banners 16,000 16,000 19,740 23.4% Removal/installation of Murray Street banners Immunisation service 22,000 22,000 26,000 18.2% Increase in volume of immunisations providedAfter Hours Call Service 20,000 20,000 14,000 -30.0% Reduction due to change in supplierDumped Rubbish removal 7,000 7,000 7,000 0.0%

71



Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

Tree/Stump removal 6,000 6,000 6,000 0.0%'Closing the Gap' Initiative 10,000 10,000 10,000 0.0%Woody Weed Control 5,000 5,000 5,000 0.0%Pigeon/Corella Control programs 15,000 15,000 15,000 0.0%Provision for new Reserves maintenance costs 167,000 338,324 Further details presented to IES Committee 11/4/17

Records Management 10,000 10,000 18,900 89.0%External services & off-site records storage fees. Increase due to periodic Records training costs now incorporated in service fees

Other Contractual services 210,844 424,004 206,510 -2.1% Other sundry contractual services

Materials - EnergyFuel 109,441 109,441 107,153 -2.1% Based on quantity and anticipated usage of plant and vehicles.Gas 40,911 40,911 44,000 7.6% Pool heating, various Bldgs heating

Water 605,322 606,472 787,865 30.2%

Supply and consumption charges - increase due to major uptake of irrigated reserves from new residential land developments. Increase of >40% in hectaes of open space maintained in last 3 financial years

Electricity - Streetlighting 391,202 391,202 440,110 12.5%

Electricity - Other 239,780 265,780 317,000 32.2%Increase partly attributable to additional consumption at new Administration Centre (including third-party tenants)

Materials - Road makingRubble 50,000 50,000 71,000 42.0% Increase based on operational requirementsBitumen 40,000 40,000 40,000 0.0%Concrete 22,000 22,000 40,000 81.8% Increase based on operational requirements

Materials - OtherPark/Street trees 16,000 16,000 16,000 0.0% Purchase of new/replacement treesMinor asset & equipment purchases 55,280 53,280 58,900 6.5% Purchase of minor assets less than capitalisation thresholdSigns (including road/traffic control) 36,150 37,250 35,650 -1.4%First Aid/safety supplies 8,200 9,300 10,000 22.0%Canteen supplies 81,000 63,000 64,000 -21.0% Swimming Pool, Sport & Community Centre

Swimming Pool chemicals 24,000 24,000 20,000 -16.7%

Water treatment chemicals to maintain appropriate water standard. Reduction due to recent equipment improvements at the Centre which has reduced previous ongoing water loss

Vehicle/Machine parts 62,000 77,000 62,000 0.0%Stationery 43,000 43,000 42,200 -1.9%Depot store supplies 15,000 26,000 25,000 66.7% Sundry hardware and loose tools replacementLibrary materials 8,700 18,228 8,700 0.0% Local purchase of Books/Magazines/DVDs Christmas decorations 5,750 5,750 5,750 0.0%

72



Forecast 2016/2017

Budget

2017/2018


Budget)

Notes

Corporate Uniform payments 36,600 40,100 40,400 10.4%Purchases by staff above uniform allowance are reimbursed to Council

Catering supplies 30,830 30,830 38,300 24.2%Catering for various Council / Committee / Workshops / Staff / Volunteer meetings and events

Other sundry materials 239,050 239,451 240,150 0.5%

Other - InsuranceBldg & Contents, Plant & Equipment 156,647 167,697 153,748 -1.9%Public Liability 90,788 90,788 91,688 1.0%Provision for excess on claims 6,000 6,000 6,000 0.0%Other insurances 9,817 9,817 13,142 33.9%

Other - CommunicationsAdvertising - Recruitment 15,000 42,000 10,000 -33.3% Cost of advertising vacant positionsAdvertising - Marketing & Promotion 5,000 5,000 7,000 40.0%

Advertising - Other 32,995 40,995 39,970 21.1%Other general/sundry advertising - e.g. promoting Community events, Statutory adverts, Community consultation, etc.

Postage 66,600 56,600 56,600 -15.0%

Telephone 109,630 122,230 94,749 -13.6%Landlines, Mobile Phones, Data plans, etc. New plans negotiated resulting in reduced costs

Other - Staff Training & RecruitmentStaff training 109,900 111,150 109,500 -0.4% Budget based on identified Training Needs AnalysisPolice Clearance Checks / Pre-employment Medical assessments / Drug & Alcohol testing 12,300 12,300 11,800 -4.1%Study assistance payments 3,000 3,000 3,000 0.0%

Other - Rates, Taxes, Statutory Expenses

Fringe Benefits Tax 65,000 65,000 90,000 38.5%Increase due to additional vehicles captured and recent changes in taxation rates

Emergency Services Levy 18,898 18,898 19,497 3.2%State Govt NRM Levy 328,948 328,948 352,393 7.1% Payment of NRM levy funds collectedVehicle registration fees 40,000 40,000 43,000 7.5%Elected Member allowances 216,668 216,668 216,897 0.1%

Other - Contributions & Donations

Gawler Business Development Group Inc. 167,727 167,727 172,759 3.0%Payment of revenue collected for Gawler Business Development Group

Gawler Community House 15,000 15,000 15,000 0.0%Christmas Festival 27,000 27,000 27,000 0.0%

73



Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

Dog & Cat Management Board 45,000 45,000 45,900 2.0%Contribution based on 20% of previous years registration fees received (legislative requirement).

Regional Development Aus. Barossa Inc. 37,000 37,000 37,511 1.4%Heritage Grants 15,000 15,000 15,000 0.0% Provision for local heritage grantsHeritage Walls restoration grants 25,000 25,000 25,000 0.0%Social Support (Gawler Health Service) 51,125 51,125 51,125 0.0% Funded as part of State Govt Home Assistance Scheme grantCommunity Grants Scheme 25,000 25,000 25,000 0.0%Gawler Emerging Arts Film Festival 2,500 2,500 - -100.0%Northern Volunteering 13,600 13,600 13,600 0.0%Town Centre Shop Fronts 10,000 10,000 10,000 0.0% Hero Bldg ProgramOther contributions & donations 203,241 203,241 245,341 20.7% Value of community in-kind contributions

Other - Other ExpensesLegal fees - Debt collection 57,500 17,000 34,500 -40.0% Costs recoveredLegal fees - Industrial relations 6,000 - 6,000 0.0%Legal fees - Other 147,000 136,500 149,500 1.7%Memberships - Gawler River Flood Management Authority 12,800 12,800 13,395 4.6%Memberships - Local Government associations 30,650 32,725 33,678 9.9%Memberships - Other 22,585 29,635 25,722 13.9% Professional memberships, etc.Electoral roll updates 6,000 6,000 6,000 0.0% Electoral Roll updates provided by the Electoral Commission

Sundry Projects Fund 200,000 132,303 100,000 -50.0%Funding provision for Sundry projects (e.g. co-contributions required to secure grant funding)

Commissionable items (Visitor Information Centre) 49,100 49,100 52,100 6.1%Regional/Interstate Bus tickets, Sealink tickets, Accommodation bookings

Souvenirs (Visitor Information Centre) 12,000 12,000 12,000 0.0%

Other sundry expenses 66,991 67,591 80,839 20.7%Other minor expenses - e.g. volunteer training, carparking fees, publications & periodicals, referral fees, etc

Total - Recurrent activities 10,061,838 10,487,860 10,664,341 6.0%

(b) 'One-off' or cyclic projects:

Gawler East Link Road payments 294,640 Payments to State Govt (equivalent to developer contributions received during 2017/18)

Consultants - Residential & Character DPA 25,000 - 25,000 0.0% Bid #712 (deferred to 2017/18)Consultants - Internal Audit Strategic Risk Review 20,000 - 20,000 0.0% Bid #725 (deferred to 2017/18)Consultants - Animal Management Plan (Cat By-Law) 15,000 10,000 15,000 0.0% Bid #195Consultants - ICT Strategy 2016-2019 30,000 30,000 - -100.0% Bid #695

74



Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

Consultants - Update Emergency Management Plan 10,000 10,000 - -100.0% Bid #13Consultants - Willaston Local Area Traffic Management Study 20,500 20,500 - -100.0% Bid #19Consultants - Local Government Boundary Realignment investigation 20,000 10,000 - -100.0% Bid #230 Consultants - Gawler East DPA 30,000 30,000 - -100.0% Bid #713Consultants - Rural Land Use Investigation 20,000 20,000 - -100.0% Bid #711Consultants - Asset Valuation and Condition Assessment Audits 120,000 120,000 - -100.0% Bids #685, #682, #675Consultants - Karbeethan Reserve Master Plan 50,000 - 100,000 100.0% Bid #203 (deferred to 2017/18)Consultants - Community Engagement On-line Platform 30,000 30,000 - -100.0% Bid #629Consultants - Civica Authority software 'Health Checks' 10,000 10,000 15,000 50.0% Bid #676Consultants - Economic Development Strategy 25,000 25,000 -100.0% Bid #698Consultants - Gawler & Surrounds Biodiversity Management Plan 40,000 10,000 40,000 0.0% Bid #502 (deferral to 2017/18)Consultants - Engage Regional StarClub Officer 15,000 15,000 -100.0% Bid #631Consultants - Efficiency & Effectiveness Review 40,000 40,000 -100.0% Bid #709Consultants - Walking & Cycling Strategy 40,000 40,000 - -100.0% Bid #219Consultants - Bldg Asset Management Plan Update

45,000 22,500 22,500 -50.0% Bid #485 (50% deferral to 2017/18)Consultants - Gawler & Surrounds Stormwater Management Plan 220,000 140,000 80,000 -63.6% Bid #260 (part deferral to 2017/18)Consultants - Gawler Heritage collection Management Plan 30,000 30,000 30,000 0.0% Bid #705Contribution - Cycling Festival 3,000 3,000 -100.0% Bid #722Contribution: Gawler Biennial Art Award 3,500 3,500 -100.0%

New Initiatives Provision 302,500 Refer separate listing for list of projects (includes projects deferred from 2016/17)

Demolish old sewer infrastructure at Willaston Oval precinct 12,000 24,000 -100.0% Bid #640Asbestos removal and demolition of old canteen at Gawler Central Oval precinct 15,000 - -100.0% Bid #641Repairs to Fixtures/Fittings in Centrelink Bldg prior to vacating 15,000 15,000 -100.0% Bid #482Signage Strategy 25,000 25,000 -100.0% Bid #699Total - Non-recurrent activities 929,000 683,500 944,640 1.7%

75



Forecast 2016/2017

Budget 2017/2018


Budget)

Notes

TOTAL 10,990,838 11,171,360 11,608,981 5.6%

Finance Costs

Interest - Fixed Debenture Loans (LGFA) 535,828 535,828 463,763 -13.4%Reduction due to implementation of revised loan funding strategy - resulting in no fixed long-term loans since 2011/12

Interest - Cash Advance Debentures (LGFA) 60,000 100,000 300,000 400.0%Based on projected cashflows and expected increase in utilisation due to value of capital works program

Bank Guarantee fees - 11,300 22,617 Costs regarding Evanston Gardens Community Centre funding agreement with Federal Government

TOTAL 595,828 647,128 786,380 32.0%

Depreciation

Buildings 310,869 310,869 299,163 -3.8%Increase predominantly due to purchase of new Administration Centre

Infrastructure 3,460,324 3,495,800 3,766,466 8.8%Increase due to new road and stormwater infrastructure acquired as a result of new residential land developments

Equipment 493,090 493,090 583,308 18.3%Increase due to recent acquisitions of replacement vehicles. Replaced vehicles had already fully depreciated

Other Assets 190,124 190,124 193,881 2.0%Increase based on new depreciation from recently constructed assets

TOTAL 4,454,407 4,489,883 4,842,818 8.7%

Net Loss - Joint Ventures & associates

Northern Adelaide Waste Management Authority 88,305 88,305 - -100.0% Movement in Council's equity share - based on budget provided by

the Authority

TOTAL 88,305 88,305 - -100.0%

TOTAL EXPENSES 26,076,273 25,862,213 27,404,431 5.1%

76

Appendix 6 - Budget by Se rvice

ServiceService CategoryResponsible OfficerCommunity Plan ReferenceLegislative Reference

Key Recurrent activities:Assess building applications and administer compliance with Building Rules Support the operations of the Building Fire Safety CommitteeSupport the operations of the Development Assessment Panel

Current / Significant Issues:

Recent Achievements:

New Initiatives 2017/2018:

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateStaff (FTE) 3.0 3.0 3.0Bldg applications lodged 796 800 800Bldg notifications & inspections 395 400 400

FINANCIAL ANALYSIS 2015/16 Actual 2016/17 Budget 2017/18 Estimate$ $ $

Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (Vehicle contrib) (4,403) (5,000) (5,000)Statutory Charges (49,964) (56,400) (58,590)User Charges (1,036) (1,200) (1,200)

TOTAL OPERATING REVENUE (55,403) (62,600) (64,790)

Operating ExpensesDepreciationEmployee Costs (incl Overheads) 169,525 217,780 240,228Finance CostsMaterials, Contracts & Other Expenses 39,562 33,729 37,930

TOTAL OPERATING EXPENSES 209,087 251,509 278,158

NET COST OF SERVICE 153,684 188,909 213,368

Building ControlRegulatory ServiceTeam Leader - Development Services1.1 A Separate Town (not a Suburb)Development Act 1993

Engagement of Building Administrative Support Trainee in February 2016Engagement of Building Officer (permanent new position) January 2016

77


Key Recurrent activities:Maintenance of car parks (including Multi-Level Car Park) to an appropriate standard




Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 Estimate


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRates (Car Park Separate Rate)ReimbursementsStatutory ChargesUser Charges

TOTAL OPERATING REVENUE 0 0 0

Operating ExpensesDepreciation 4,376 7,050 8,050Employee Costs (incl Overheads) 368 0 1,000Materials, Contracts & Other Expenses 91,749 115,211 117,020



Completion of Willaton Oval Carpark Upgrade by in-sourced civil and horticulture works

Street sweeping contract encompasing multi-level carpark to be retendered in 17/18 financial yr

Team Leader - Depot

Car ParksCore Service

1.2 Well Presented Assets

78


Key Recurrent activities:Administer lessor obligations pertaining to Caravan Park lease




Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNet return on investment 13% 13% 13%


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (1,724) 0 (1,770)Statutory ChargesUser Charges (107,610) (111,717) (118,371)


Operating ExpensesDepreciation 14,353 15,553 14,077Employee Costs (incl Overheads) 169Finance CostsMaterials, Contracts & Other Expenses 14,610 5,735 7,753


NET COST OF SERVICE (80,202) (90,429) (98,311)

Caravan ParkNon-Core ServiceTeam Leader - Property & Procurement

79


Key Recurrent activities:Maintain Willaston Cemetery to an appropriate standardAdministration of burials and burial plot leases



New Initiatives 2017/2018:Ongoing implementation of Willaston Cemetery Management Plan

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of burials 101 100


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursementsStatutory ChargesUser Charges (158,240) (170,500) (192,273)


Operating ExpensesDepreciation 3,350 9,407 15,210Employee Costs (incl Overheads) 61,137 65,236 84,159Finance CostsMaterials, Contracts & Other Expenses 41,486 44,312 46,068


NET COST OF SERVICE * (52,267) (51,545) (46,836)

* Operating surplus allocated to associated Equity Reserve fund in accorance with Council policy

Willaston CemeteryNon-Core ServiceTeam Leader - Depot4.3 Sustainable Asset Management

80


Key Recurrent activities:Support operations and activities of the Gawler Youth Advisory Committee (GYAC)Recognise and celebrate National Youth WeekDeliver and support various youth projects and events


Recent Achievements:GYAC members awarded Gawler Young Citizen of Year (2016,2017)Delivery of leadership program to GYAC membersSuccessful delivery of youth events in 2016/17 (skate competitions, youth week, stress less festival)New Initiatives 2017/2018:

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateGYAC meetings held monthlyNational Youth Week celebrated in April each year


Operating RevenueGrants, Subsidies & Contributions (3,000) 0Investment IncomeOther Revenue (255) 0RatesReimbursementsStatutory ChargesUser Charges (175) 0 0

TOTAL OPERATING REVENUE (3,430) 0 0

Operating ExpensesDepreciation 747 747 747Employee Costs (incl Overheads) 84,081 119,483 124,767Finance CostsMaterials, Contracts & Other Expenses 53,155 53,600 65,450



Children & Youth Services

3.3 A Resilient CommunityTeam Leader - Recreation & CommunityNon-Core Service

81

Service Communication & MarketingService Category Core ServiceResponsible Officer Team Leader - Marketing & MediaCommunity Plan Reference 3.1 Well Informed CommunityLegislative Reference

Key Recurrent activities:Implementation of Murray Street banners schedule (cross street and portrait banners)


Recent Achievements:Banner schedule implemented and operating well

New Initiatives 2017/2018:$5k cash contribution towards restablishment of Gawler Farmers' Market

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of staff (FTE) 1.15 1.15 1.0


Operating RevenueGrants, Subsidies & Contributions (80,000)Investment IncomeOther Revenue RatesReimbursements (14,106)Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (94,106) 0 0

Operating ExpensesDepreciationEmployee Costs (incl Overheads) 124,504 127,053 108,572Finance CostsMaterials, Contracts & Other Expenses* 159,543 86,045 60,545



*2015/16 includes $80k contribution to Gawler Farmers Market (funded from external grant)

82

Service Community Assistance (Volunteer Services)Service Category Non-Core ServiceResponsible Officer Team Leader - Recreation & CommunityCommunity Plan Reference 3.5 An Engaging CommunityLegislative Reference

Key Recurrent activities:Recognise and celebrate National Volunteer WeekCo-ordinate Council volunteer programs (e.g. Graffiti Removal team)


Recent Achievements:Recognition of Volunteer Service to Council/communityCommence development of new Volunteer programs


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateVolunteer hrs - graffiti removal 1,022 Graffiti Hits Removed 3,117 National Volunteer Week celebrated annually (in May each year)


Operating RevenueGrants, Subsidies & Contributions (980)Investment IncomeOther RevenueRatesReimbursements (12)Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (992) 0 0




83

Service Community Centres & HallsService Category Core ServiceResponsible Officer Team Leader - Property & ProcurementCommunity Plan Reference 1.2 Well Presented AssetsLegislative Reference

Key Recurrent activities:Maintenance of Community Centres and Halls to an appropriate standard (Gawler Institute, Evanston Gardens Community Centre)

Current / Significant Issues:Gawler Institute closed during Civic Centre redevelopment construction


New Initiatives 2017/2018:Civic Centre redevelopment project



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursementsStatutory ChargesUser Charges (1,000) (1,009) 0

TOTAL OPERATING REVENUE (1,000) (1,009) 0

Operating ExpensesDepreciation 37,330 37,811 17,121Employee Costs (incl Overheads) 440 0 0Finance CostsMaterials, Contracts & Other Expenses 62,086 56,795 60,689



84

Service Community SupportService Category Core ServiceResponsible Officer Team Leader - Recreation & CommunityCommunity Plan Reference 3.5 An Engaging CommunityLegislative Reference

Key Recurrent activities:

Support Australia Day breakfast/awards

Support bi-annual Gawler Art AwardsDelivery of Community Grants program


Recent Achievements:Delivery of community events and initiativesDevelopment of Art and Culture StrategySuccessful launch of 2017 Gawler Fringe




Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (1,604) (1,500)RatesReimbursements (465) (13,726) (13,765)Statutory ChargesUser Charges (3,873) 0 0





Support other local events (e.g. Christmas Festival, Gawler Show, Anzac Day, etc)

Support operations of the Gawler Community House

85

Service Crime PreventionService Category Non-Core ServiceResponsible Officer Team Leader - Property & ProcurementCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference

Key Recurrent activities:Usage of CCTV systems to facilitate reduction in anti-social behaviour

Current / Significant Issues:The current CCTV system requires updating to ensure it provides a suitable coverage across thetown centre. The current system has limitations due to its age and the wireless infrastructure.Council are investigating options for grant funding to improve the CCTV system.Recent Achievements:

New Initiatives 2017/2018:Upgrade CCTV in Town Centre



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursementsStatutory ChargesUser Charges


Operating ExpensesDepreciation 12,769 13,103 12,768Employee Costs (incl Overheads)Finance CostsMaterials, Contracts & Other Expenses 6,306 9,149 7,308



86

Service Customer ServiceService Category Core ServiceResponsible Officer Team Leader - Customer ServicesCommunity Plan Reference 5.4 Good AdministrationLegislative Reference

Key Recurrent activities:Provision of high quality customer service in accordance with Customer Service CharterProcessing of Property Search requestsLodgement of Customer Action Requests (CARs)Receipting / banking of revenue received


Recent Achievements:Streamline / seamless transition from Town Hall to new Administration Centre


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of property searches processed 826 840 850 Volume of Customer Action Requests 4,579


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (77)RatesReimbursements (568)Statutory Charges (Search fees) (45,208) (46,000) (47,000)User Charges


Operating ExpensesDepreciationEmployee Costs (incl Overheads) 553,544 612,535 596,516Finance CostsMaterials, Contracts & Other Expenses* 5,013 4,550 18,409



*2017/18 includes cost of after hours Customer Call Service - transferred from IT Service

87

Service DepotService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 5.4 Good AdministrationLegislative Reference

Key Recurrent activities:Manage and administer activities of Council's outdoor staffProvide appropriate training and development of staff

Review employee overhead rates on an annual basis to ensure accurate service costs

Current / Significant Issues:Sustainably managing growth in maintenance obligations, particularly with respect to new landdivisions & horticultural services

Recent Achievements:Review of depot operations resulting in increased workforce capacityPreliminary workforce planning for growth in 2016/17 & 2017/18 & implementation ofmanagement strategiesNew Initiatives 2017/2018:Upgrade depot facilities - including front fence replacement



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (2,818) 0RatesReimbursements 1,489 (10,000) (10,000)Statutory ChargesUser Charges (91) 0 (500)


Operating ExpensesDepreciation 11,835 10,415 17,345Employee Costs (incl Overheads) * (598,847) (529,086) (688,262)Finance CostsMaterials, Contracts & Other Expenses 171,175 116,099 140,732

TOTAL OPERATING EXPENSES (415,837) (402,572) (530,185)


* Includes recovery of on-costs charged to other services

Provide appropriate protective clothing and safety equipment to staff to minimise personal injury exposure

88

Service Dog & Cat ControlService Category Regulatory ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference Dog and Cat Management Act 1995

Key Recurrent activities:Facilitate the effective control and regulation of companion animalsCompliance with Dog & Cat Management Act 1995

Current / Significant Issues:By-LawsNew Dog & Cat Management Act amendments

Recent Achievements:Introduction of new payment receipt process through introduction of EFTPOS at the DepotImplementation of reminder notices for dog registrations

New Initiatives 2017/2018:Design and construct dog park

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of registered dogs 5,335 5,625 5,800 Expiations issued 325 300Dog Attacks 22Dogs reported wandering at large 383


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue 0 (5,000) 0RatesReimbursementsStatutory Charges (264,692) (275,000) (281,000)User Charges


Operating ExpensesDepreciation 356 1,156 2,338Employee Costs (incl Overheads) 152,705 130,870 173,560Finance CostsMaterials, Contracts & Other Expenses 100,701 130,327 112,680


NET COST OF SERVICE * (10,930) (17,647) 7,578

* Excludes administrative support costs

89

Service Elderly CentreService Category Core ServiceResponsible Officer Team Leader - Property & ProcurementCommunity Plan Reference 3.3 A Resilient CommunityLegislative Reference

Key Recurrent activities:Maintenance of Elderly Centre to an appropriate standardAdminister and promote usage of CentreSupport the operations of the Elderly Centre Advisory Group






Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursementsStatutory ChargesUser Charges (43,568) (45,000) (61,500)


Operating ExpensesDepreciation 12,136 31,927 14,107Employee Costs (incl Overheads) 1,147 0 500Finance CostsMaterials, Contracts & Other Expenses 62,573 64,742 63,476



90

Service Elected MembersService Category Legislative RequirementResponsible Officer Chief Executive OfficerCommunity Plan Reference 5.3 Responsible GovernmentLegislative Reference Local Government Act 1999

Key Recurrent activities:Provision of facilities and support to the Elected Members of CouncilProvide administrative support to the office of Mayor



New Initiatives 2017/2018:Mayor's Young Women's Leadership Program

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of Elected Members 11 11 11


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (Mayoral vehicle) (10,000) (10,000) (10,000)Statutory ChargesUser Charges


Operating ExpensesDepreciation 0 5,000 0Employee Costs (incl Overheads) 22,647 24,078 24,498Finance CostsMaterials, Contracts & Other Expenses 272,677 263,128 255,644



91

Service Emergency ServicesService Category Regulatory ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference Fire and Emergency Services Act 2005

Key Recurrent activities:Minimise inflammable undergrowth through monitoring and enforcement of fire safety regulations

Current / Significant Issues:Complacency by land ownersWet summer causing rapid regrowthRoadside slashing repeated several times due to wet summerRecent Achievements:Compliance with notices - no need to slash property by CouncilNew Surface pro device - access to database in the field


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateFire prevention expiations sent 17Fire prevention notices issued 426Properties slashed


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (368) (360) (377)Statutory Charges (Expiations) (6,031) (1,500) (1,500)User Charges (432) (1,500) (500)


Operating ExpensesDepreciationEmployee Costs (incl Overheads) 15,225 32,071Finance CostsMaterials, Contracts & Other Expenses 12,162 9,893 6,907



92

Service Engineering ServicesService Category Core ServiceResponsible Officer Manager - Infrastructure & Engineering ServicesCommunity Plan Reference 2.4 An effective transport systemLegislative Reference

Key Recurrent activities:Administer the design and delivery of related Capital Works programsReview of Asset Management Plan (including standard unit rates of road construction)Provision of quality technical and engineering assessment adviceTraffic investigation and management






Operating RevenueGrants, Subsidies & Contributions 215 (190,000) 0Investment IncomeOther Revenue (1,388) 0 (1,000)RatesReimbursements (Vehicle contributions) (15,173) (15,000) (15,000)Statutory ChargesUser Charges


Operating ExpensesDepreciation 25,574 27,274 27,424Employee Costs (incl Overheads) 800,056 474,471 337,578Finance CostsMaterials, Contracts & Other Expenses 327,655 641,874 236,366TOTAL OPERATING EXPENSES 1,153,285 1,143,619 601,368

NET COST OF SERVICE 1,136,939 938,619 585,368

93

Service Financial ServicesService Category Legislative RequirementResponsible Officer Manager - Finance & Corporate ServicesCommunity Plan Reference 5.1 Sustainable Financial ManagementLegislative Reference Local Govt (Financial Management) Regulations 2011

Key Recurrent activities:Co-ordinate development of Annual Budget/Business PlanMonitoring of financial performance (Monthly Finance Report, Quarterly Budget Reviews)Preparation of Annual Financial Statements & assoc. annual returns (e.g. Grants Commission)Preparation of annual update to Long Term Financial PlanProvide accounting support activities (e.g. Accounts Payable/Receivable, GST / FBT admin)Periodic review and development of Finance PoliciesSupport the operations of the Audit Committee

Current / Significant Issues:Rewrite of General Ledger (new ledger to take effect from 2017/18)

Recent achievements:

New Initiatives 2017/2018:Undertake Strategic Risk Review Internal Audit

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateMonthly Finance Report, Quarterly Budget Reviews, Annual Budget, Annual Financial StatementsNo. of staff (FTE) 5.3 5.3 5.3


Operating RevenueGrants, Subsidies & Contributions * (603,030) (1,172,210) (606,605)Investment Income (83,169) (64,179) (36,668)Other RevenueRatesReimbursements (1,149) 0 0Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (687,348) (1,236,389) (643,273)

Operating ExpensesDepreciation 0 4,000 4,000Employee Costs 513,317 483,080 507,842Finance Costs 624,187 595,828 786,380Materials, Contracts & Other Expenses 111,656 146,873 126,417

TOTAL OPERATING EXPENSES 1,249,160 1,229,781 1,424,639

NET COST OF SERVICE 561,812 (6,608) 781,366

* 50% of Federal Government grant for 2017/18 received in 2016/17. Revised forecast for2016/17 is $1,784,477 (Note: Value in table above for 2016/17 is Adopted Budget)

Annual Financial Statements completed without audit qualification

Prepare comparative data reports on an annual basis (comparing financial performance with similar Councils)

94

Service Gawler Aquatic CentreService Category Core ServiceResponsible Officer Team Leader - Recreation & CommunityCommunity Plan Reference 3.4 An Active CommunityLegislative Reference

Key Recurrent activities:Manage and maintain the Gawler Aquatic Centre in accordance with community health standardsProvide community aquatic facilityDeliver key programs - Learn to Swim, Lap Swimming, Recreational Swimming, Facility Hire)Actively promote and encourage community use of the facility

Current / Significant Issues:Ageing facilityWater space limitations (result of growth in Learn to Swim Programs)

Recent Achievements:Gawler Aquatic Centre needs and feasibility analysisRecreation SA - watch around water community inivation award

New Initiatives 2017/2018:Upgrade pool edgingUpgrade main pool pump room

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of visitors 53,162 Swim School Enrolments 1008


Operating RevenueGrants, Subsidies & Contributions (15,000) 0 0Investment IncomeOther Revenue (900) (1,000) (1,000)RatesReimbursementsStatutory ChargesUser Charges (280,958) (303,000) (333,500)


Operating ExpensesDepreciation 73,762 98,131 114,857Employee Costs (incl Overheads) 215,627 112,710 116,830Contracts - LifeguardsMaterials, Contracts & Other Expenses 408,577 491,602 531,128



95

Service General AdministrationService Category Legislative RequirementResponsible Officer Chief Executive OfficerCommunity Plan Reference 5.3 Responsible GovernmentLegislative Reference Local Government Act 1999

Key Recurrent activities:Facilitate minimisation of Council's exposure to risk via effective Risk Management programsAdminister effective purchasing & procurement practicesPreparation and distribution of Council/Committee agendas/minutesReview of relevant governance processes and proceduresPreparation of Annual ReportEffective management of Council's Administration and associated legislative obligationsCurrent / Significant Issues:Review of Community Plan

Recent Achievements:Relocation to new Administration Centre (realising recurrent savings of over $100k)




Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (93) 0 (50)RatesReimbursements (222,393) (198,000) (245,050)Statutory ChargesUser Charges (22,505) 0


Operating ExpensesDepreciation 282 282 280Employee Costs (incl Overheads) 769,464 823,814 834,943Finance CostsMaterials, Contracts & Other Expenses * 630,254 827,867 1,293,336


NET COST OF SERVICE 1,155,009 1,453,963 1,883,459

* 2017/18 includes Sundry Projects Fund, New Initiatives Funding

96

Service HeritageService Category Core ServiceResponsible Officer Manager - Library & Community ServicesCommunity Plan Reference 1.3 Valued Local History & CultureLegislative Reference

Key Recurrent activities:On-going maintenance of Gawler's local heritage collectionGawler Historic Walls Scheme

($250K funding ($25k over 10 years) towards restoration of historic walls)

Current / Significant Issues:Lack of storage facilities to appropriately house heritage items

Recent Achievements:Updated catalogue due to collection moving to temporary storage during Civic Centre Redevelopment

New Initiatives 2017/2018:Proposed commencement of digitisation project for Heritage Collection itemsDesign and construct all War Memorials in Pioneer Park





Operating ExpensesDepreciation (Monuments & Statues) 7,184 7,185 8,503Employee Costs (incl Overheads) 0 45,066 69,289Finance CostsMaterials, Contracts & Other Expenses 27,559 59,621 60,230



97

Service Home Assistance SchemeService Category Non-Core ServiceResponsible Officer Team Leader - Recreation & CommunityCommunity Plan Reference 3.3 A Resilient CommunityLegislative Reference

Key Recurrent activities:Support services to assist aged/disabled to live independently in their homesSocial support services (in conjunction with Gawler Health Service)Host and facilitate 'Ageing in Style' Expo

Current / Significant Issues:Changes to funding model (commencing 01/07/17)Signfiicant changes to aged care and disability sectors

Recent Achievements:Increase in consumers accessing servicesConduct outreach to community services


Service Levels: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of clients 653No. of service hours 9,972 Jobs Completed 3409


Operating RevenueGrants, Subsidies & Contributions (635,386) (634,430) (660,625)Investment IncomeOther RevenueRatesReimbursements (1,434) (1,500) (1,500)Statutory ChargesUser Charges


Operating ExpensesDepreciation 206 207 0Employee Costs 320,161 356,134 356,059Finance CostsMaterials, Contracts & Other Expenses 295,065 282,894 306,066


NET COST OF SERVICE (21,388) 3,305 0

98

Service Human ResourcesService Category Core ServiceResponsible Officer Team Leader - Organisational DevelopmentCommunity Plan Reference 5.4 Good AdministrationLegislative Reference

Current / Significant Issues:Manage and administer Council's Human resources / Industrial relationsDevelopment and review of HR policies and procedures

Critical Issues:Ensure appropriate leave taken by staff, thereby minimising Leave Entitlements Liability

Recent Achievements:Traineeships - 2nd year for Admin roles2nd Round LGA Traineeship HorticultureImplementation of 'Skytrust' software for HR & WHSNew Initiatives 2017/2018:

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateStaff turnover 7%Staff Sick Days 695Days Lost due to Work Injuries 44Annual Leave Liability Hours 22093Time in Lieu Liability Hours 2487LSL Liability Hours 33345No of FTE 115 121.87 121.87FINANCIAL ANALYSIS 2015/16 Actual 2016/17 Budget 2017/18 Estimate

$ $ $Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (1,058) (23,000) (43,500)Statutory ChargesUser Charges (7,132) 0 0


Operating ExpensesDepreciationEmployee Costs (incl Overheads) * 303,918 307,836 316,487Finance CostsMaterials, Contracts & Other Expenses 229,647 254,820 251,870



* 2014/15 increase due to organisational restructure

99

Service ImmunisationService Category Non-Core ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference Controlled Substances Act 1984

Consent to Medical Treatment and Pallative Care Act 1995Health Practitioner Regulation National Law (SA) Act 2010

Key Recurrent activities:Delivery of immunisation programs for the community

Current / Significant Issues:Provision of vaccination for emerging diseases eg. flu, meningococcal

Recent Achievements:Community vaccination programs targeting specific diseases being implemented through communityimmunisation program.


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of immunisations provided 2,035 Immunisation clinics - 3 times per monthImmunisation program for two local schools


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (1,188) (1,290) (1,290)Statutory ChargesUser Charges (16,897) (10,453) (11,671)





100

Service Information TechnologyService Category Core ServiceResponsible Officer Team Leader - Info & Communication Tech.Community Plan Reference 5.4 Good AdministrationLegislative Reference

Key Recurrent activities:Develop expertise on evolving technologies. Identify evolving technologies to provide products and services that will assist Council staff in accomplishing their mission, goals, and objectivesProvide IT value. Be well managed and fiscally responsible as we continue to maintain, update, and improve the quality and timeliness of our servicesMaintain and update existing information technology systems and infrastructureManage IT security systems to ensure the integrity of the data and systems operated by the CouncilCurrent / Significant Issues:

Recent Achievements:Completion of ICT Strategy 2016-2019Seamless migration of IT infrastructure to new Administration Centre

New Initiatives 2017/2018:Purchase of 'Info council' softwareFree public Wi-Fi roll out

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of FTE staff 3.0 3.0 3.0Visits to Council Website 126,759


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (953) 0 0RatesReimbursements (7,500) (7,500) (7,500)Statutory ChargesUser Charges





101

Service Investment PropertiesService Category Non-Core ServiceResponsible Officer Team Leader - Property & ProcurementCommunity Plan ReferenceLegislative Reference

Key Recurrent activities:Administer Council's obligations in accordance with conditions of leases

Current / Significant Issues:Identify properties that may be surplus to operational requirements On-going development and review of Property Divestment Strategy

Recent Achievements:Commercial tenancy income has increased as a result of purchasing the 43 High Street property, and continuation of a number of commercial leases pre-existing.






Operating ExpensesDepreciation 4,229 4,229 4,229Employee Costs (incl Overheads)Finance CostsMaterials, Contracts & Other Expenses 6,395 4,255 6,716



102

Service LibraryService Category Core ServiceResponsible Officer Team Leader - Library ServicesCommunity Plan Reference 3.1 Well Informed CommunityLegislative Reference Libraries Act 1982

Libraries Regulations 1998Key Recurrent activities:Provision of Library services in accordance with community needs

Current / Significant Issues:Redevelopment and temporary closure of Murray Street Library

Recent Achievements:Development of Library Strategic Management PlanOperation from two new sites (Admin Centre + Gawler Sport & Community Centre)Incrased outreach programs (Fringe, Artisan Market in Park)

New Initiatives 2017/2018:Develop and deliver outreach library programs

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of active borrowers 8,631 No. of Loans 130,281 Library users as % of population 36%Library Events Held 88Attendees at Library Events 1125


Operating RevenueGrants, Subsidies & Contributions (85,855) (73,528) (64,000)Investment IncomeOther Revenue (1,755) (750) (750)RatesReimbursements (24,987) (10,500) (10,500)Statutory ChargesUser Charges (9,282) (9,300) (9,300)



TOTAL OPERATING EXPENSES 1,015,336 920,412 862,340


103

Service Litter ControlService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.4 A Better EnvironmentLegislative Reference

Key Recurrent activities:Collection and disposal of waste from litter bins within streets, parks and ovals (162 bins)Disposal of waste from 'Doggy' bins (13) and Cigarette butt bins (12)

Current / Significant Issues:Number/type of bin installations across council areaManual handling issues for field staff

Recent Achievements:Delivery of wheelie bin lifter response truck to increase efficiency in operations & reduce manualhandling issues


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateMain street bins emptied dailyOther bins emptied less regularly







104

Service OccupancyService Category Core ServiceResponsible Officer Team Leader - Property & ProcurementCommunity Plan Reference 1.2 Well Presented AssetsLegislative Reference

Key Recurrent activities:Administer and manage appropriate Building Maintenance programsAdministration of Property Services section



New Initiatives 2017/2018:Update Building Asset Management Plan



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (9,423) (23,000) (23,000)Statutory ChargesUser Charges * (106,500) (156,000)





* Rental income from Town of Gawler Administration Centre

105

Service Other ActivitiesService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 2.2 Services and Facilities that meet needsLegislative Reference

Key Recurrent activities:Weedspraying / mowing of road reservesRemoval of dumped rubbish from roadsidesSupport the operations of the Rapid Response Team

Current / Significant Issues:Verges in new land divisionsSeasonal conditions over 16/17 (high spring/summer rainfall) have resulted in unseasonablyhigh weed/road reserve growth to maintainIncrease in resident numbers have increased occurences of dumped rubbishRecent Achievements:Delivery of rapid response wheelie bin lifter utility aimed at increasing efficiency in operations &decreasing WHS issues via manual handlingEfficient and effective weed/verge management given seasonal conditionsNew Initiatives 2017/2018:








106

Service Other Environmental ServicesService Category Legislative RequirementResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 4.4 A Better EnvironmentLegislative Reference Natural Resources Management Act 2004

Key Recurrent activities:Administer collection/payment of State Government Natural Resource Management levyPromote and participate in environmental initiatives (incl Clean-up Australia Day)Provide advice on environmental queries

Current / Significant Issues:Management of unsightly premisesIllegal Dumping

Recent Achievements:Annual participation in Clean Up Australia Day

New Initiatives 2017/2018:Emergency Management PlanGawler Biodiversity Management Plan



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRates (State Govt NRM Levy) (309,884) (328,948) (338,765)Reimbursements (NRM levy collection) (4,600) (4,600) (5,000)Statutory ChargesUser Charges


Operating ExpensesDepreciation 510 511 510Employee Costs (incl Overheads) 180,562 201,952 301,671Finance CostsNRM Levy transfer to State GovtMaterials, Contracts & Other Expenses 348,306 387,258 381,376



107

Service Other Regulatory ServicesService Category Regulatory ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference

Key Recurrent activities:Impounding of abandoned vehicles (as required)Monitor compliance with associated regulations

Current / Significant Issues:New legislative amendments to Local Government Act impacting Council's ability to removeabandoned vehicles. S237 Local Government Act.

Recent Achievements:New procedure when recovering abandoned vehicles.




Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (517) 0 (200)RatesReimbursements (498) 0 0Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (1,015) 0 (200)

Operating ExpensesDepreciation 1,544 4,893 8,192Employee Costs (incl Overheads) 52 0 0Finance CostsMaterials, Contracts & Other Expenses 7,442 2,200 1,000



108

Service Parking ControlService Category Regulatory ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 5.3 Responsible GovernmentLegislative Reference Expiation of Offences Act 1996

Key Recurrent activities:Monitor parking control for time zones, permit zones and disabled bays

Current / Significant Issues:On street traffic control in town centre causing congestion in some areas.Underutilisation of council car park.Recent changes with the introduction of timed parking to private parking areas.

Recent Expiation Devices / Achievements:Pinforce now being used extensively.Increased enforcement activity.


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of expiations issued 1,499 1,800 1,800


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursementsStatutory Charges (102,096) (140,000) (141,000)User Charges





109

Service Parks & GardensService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.2 Good Quality Open SpaceLegislative Reference

Key Recurrent activities:Maintenance of parks & gardens in accordance with service standardsMaintain playground facilities to an appropriate and safe standard

Current / Significant Issues:Development of maintenance contractor management frameworkConsistency & sustainability in new land division open spaceGrowth managementRecent Achievements:In-sourcing significant quantity of high grade open space from new land divisionswithin existing worforceQuantifying & costing 16/17 & 17/18 developing preliminary management plans for growthNew Initiatives 2017/2018:Pioneer Park upgradeUpgrade parking facilities at Clonlea Reserve

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateHectares of Open Space maintained 436 457


Operating RevenueGrants, Subsidies & ContributionsReimbursementsOther RevenueRatesReimbursementsStatutory ChargesUser Charges (239) 0 0

TOTAL OPERATING REVENUE (239) 0 0

Operating ExpensesDepreciation 63,792 117,887 86,039Employee Costs (incl Overheads) 726,533 801,216 822,042Finance CostsMaterials, Contracts & Other Expenses* 411,097 449,422 873,204Net Gain (loss) on Disposal of Assets 32,947 0 0



*2017/18 includes new costs for maintenance of new Parks & Reserves acquired from developers

110

Service Pest ControlService Category Core ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 2.2 Services and Facilities that meet needsLegislative Reference

Key Recurrent activities:Provision of effective pest/vermin control services and eradication programsDestruction of European wasp nests

Current / Significant Issues:Maintain and improve feral pigeon control, maintain Corella dislocation/relocation strategy

Recent Achievements:Significant reduction in feral pigeon populations in Town of GawlerState Research project Llittle Corellas has been completed - working with LGA, DENWR andlocal councils to formulate control strategyNew Initiatives 2017/2018:





Operating ExpensesDepreciationEmployee Costs (incl Overheads) 500 2,000 2,000Finance CostsMaterials, Contracts & Other Expenses 268 900 400

TOTAL OPERATING EXPENSES 768 2,900 2,400

NET COST OF SERVICE 768 2,900 2,400

111

Service Plant & MachineryService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.3 Sustainable Asset ManagementLegislative Reference

Key Recurrent activities:Maintain an appropriate fleet of road plant and machinery to facilitate effective service deliveryImplement programmed servicing regimeAnnual review of internal hire rates

Current / Significant Issues:Completion of vehicle policy review

Recent Achievements:Design/procurement & delivery of civil/horticulture watering truck & rapid response bin lifter utility(first of type in South Australia)

New Initiatives 2017/2018:Programmed plant replacement

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateFuel consumption (litres)Plant Utilisation 82.20% 100%


Operating RevenueGrants, Subsidies & Contributions (13,543) (11,750) (11,750)Investment IncomeOther Revenue (784) 0 (1,000)RatesReimbursementsStatutory ChargesUser Charges


Operating ExpensesDepreciation 240,048 283,037 335,060Employee Costs (incl Overheads) 82,077 81,523 82,961Finance CostsMaterials, Contracts & Other Expenses 543,507 118,665 70,690Net Gain (loss) on Disposal of Assets 207 0 0


LESS Internal Hire Charges (589,261) (459,475) (561,180)

NET COST OF SERVICE 262,251 12,000 (85,219)

112

Service Preventive Health ServicesService Category Regulatory ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference Public & Environmental Health Act 1987, Food Act 2001

Supported Residential facilities Act 1992

Key Recurrent activities:Provision of technical advice and monitoring services of a broad range of public and environmental health services in accordance with legislative requirementsRegister and inspect food premises, and respond to requests from the Dept of Health to investigate outbreaks of food poisoning and communicable disease


Recent Achievements:Introduction of "scores on doors".Regional Food Safety Week implementation.

New Initiatives 2017/2018:Implementation of the Regional Health Plan

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of Food inspections 177 160No. of food audits 38 40


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (850) (300) (300)RatesReimbursements (75) 0 0Statutory Charges (23,451) (20,225) (15,429)User Charges





113

Service Public ConveniencesService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.3 Sustainable Asset ManagementLegislative Reference

Key Recurrent activities:Maintenance of public conveniences in good working order and to a high state of cleanlinessSites cleaned include: Clonlea Reserve, Julian Tce, Deadman's Pass Reserve, Gawler Oval, Willaston Cemetery, Multi-Level Carpark, Council depot

Current / Significant Issues:Ageing facilities which are not fit for modern purposeSustainable management of growth in council area due to new land divisions

Recent Achievements:Implementation of new cleaning roster to provide workforce capacity to areas of growth


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 Estimate7 sites cleaned daily







114

Service Rates AdministrationService Category Legislative RequirementResponsible Officer Team Leader - FinanceCommunity Plan Reference 5.3 Responsible GovernmentLegislative Reference Local Government Act 1999

Key Recurrent activities:Accurate and timely update of property rating databasePrepare rate modelling scenarios for CouncilAdminister distribution of quarterly rate notices and collection of rate revenueAnnual review of Strategic Rating Policy

Current / Significant Issues:Establishment of proposed new Separate RatesValidation of ratepayers database structure

Recent Achievements:Reduction in level of outstanding rate debtors in accordance with policyImplementation of new payment options (ie direct debit / Bpay view etc)Implementation of streamlined follow up procedures for outstanding debtsNew Initiatives 2017/2018:

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateRate debtors as % total rate revenue 3.95 4.0 4.0No. of FTE staff 1.6 1.6 1.6No. of rateable properties 10,834 11,063


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue 779 0 0Rates (17,233,390) (18,190,240) (19,158,546)Reimbursements (Debt recovery) (30,953) (48,000) (25,000)Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (17,263,564) (18,238,240) (19,183,546)



NET COST OF SERVICE (17,020,741) (17,966,793) (18,918,052)

115

Service Records ManagementService Category Legislative RequirementResponsible Officer Team Leader - Info & Communication Tech.Community Plan Reference 5.4 Good AdministrationLegislative Reference State Records Act 1997

Key Recurrent activities:Administer and manage Council's Records Management system Storage of historical records in accordance with legislative and regulatory requirementsRetrieval of records from State Records and temporary storage (as required)Administer Freedom of Information (FOI) requests


Recent Achievements:General Disposal Schedule (GDS) 21 certification


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of records recorded 87,180 90,000 90,000 No. of FTE staff * 3 3 3FOI requests 8


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (343) (100) (300)RatesReimbursements (35) 0 0Statutory ChargesUser Charges

TOTAL OPERATING REVENUE (378) (100) (300)

Operating ExpensesDepreciation 18,144 19,720 19,764Employee Costs (incl Overheads) * 194,906 222,256 225,568Finance CostsMaterials, Contracts & Other Expenses 69,973 77,220 76,260



116

Service Support to Regional DevelopmentService Category Non-Core ServiceResponsible Officer Manager - Development, Environment & RegulatoryCommunity Plan Reference 2.1 Invest in Planning related to growthLegislative Reference

Key Recurrent activities:Support the programs and activities of Regional Development Aust. Barossa Inc.Support economic and regional development initiativesActively pursue appropriate external grant funding via engagement of Grants Submission Writer






Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRatesReimbursements (Vehicle contribution) 0 0 (11,000)Statutory ChargesUser Charges

TOTAL OPERATING REVENUE 0 0 (11,000)

Operating ExpensesDepreciationEmployee Costs (incl Overheads)* 0 79,783 441,766Finance CostsMaterials, Contracts & Other Expenses 0 0 8,800

TOTAL OPERATING EXPENSES 0 79,783 450,566

NET COST OF SERVICE 0 79,783 439,566

*2017/18 includes Manager Business Enterprises and Communications, Digital Hub Officer,Multi-Function Space Officer and Special Projects Officer

117

Service RoadsService Category Core ServiceResponsible Officer Team Leader - Engineering ServicesCommunity Plan Reference 4.3 Sustainable Asset ManagementLegislative Reference

Key Recurrent activities:Undertake grading and general maintenance of unsealed roads in accordance with service standardsMaintain sealed road network in accordance with service standardsUpgrade/replace infrastructure in accordance with Asset Management PlanMaintain footpath/kerb infrastructure in accordance with service standards

Current / Significant Issues:Council are currently in the process of developing a Policy framework to better manage unsealedroads in Gawler

Recent Achievements:Murray Street Stage 5 works and delivery of the road reseal program for 16/17 earlier than expected

New Initiatives 2017/2018:Murray Street - Stage 6 0.9 kms of kerb/gutter renewalGawler Mill Bridge remediation Gawler East Link Road construction commencement3.1 kms of new footpaths 1.1 kms of unsealed roads resheeting

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateKms of road resealedKms of road resheetedMetres of footpath renewedMetres of new footpath constructed


Operating RevenueGrants, Subsidies & Contributions (734,833) (796,655) (735,710)Investment IncomeOther RevenueRatesReimbursementsStatutory ChargesUser Charges


Operating ExpensesDepreciation 2,725,400 2,663,349 2,867,900Employee Costs (incl Overheads) 753,960 728,143 570,792Finance CostsMaterials, Contracts & Other Expenses 533,597 517,051 622,744Net Gain (loss) on Disposal of Assets 369,294 0 0



118

Service Sports Facilities - Indoor (Sport & Community Centre)Service Category Core ServiceResponsible Officer Team Leader - RecrTeam Leader - Recreation & CommunityCommunity Plan Reference 3.4 An Active CommunityLegislative Reference

Key Recurrent activities:Provision of community recreation facility - key programs (skating, facility hire), fitness programsActively promote and encourage community use of the facility


Recent Achievements:Significant increase in attendances at skating programs

New Initiatives 2017/2018:Replace Foyer / Studio / Youth Shak flooringPainting of Foyer and Rotary roomCarpet replacement



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (114) (200) 0RatesReimbursements (191) (550) 0Statutory ChargesUser Charges (404,217) (440,000) (452,000)





119

Service Sports Facilities - OutdoorService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 3.4 An Active CommunityLegislative Reference

Key Recurrent activities:Maintenance of sporting surfaces and facilities to appropriate service standardsAdminister Council's obligations relative to community lease/licences arrangements

Current / Significant Issues:Consideration of refinancing of community loan for Karbeethan Sporting Association

Recent Achievements:Provision of community loans to Gawler Bowling Club (resurfacing of greens), South Gawler Cricket Club (installation of turf pitch), Gawler Central Sporting Club ('Dog Box' extension)Willaston Oval irrigation system replacement

New Initiatives 2017/2018:Karbeethan Reserve Master PlanKarbeethan Sporting Association Governance/ManagementRenew / replace irrigation systems (including South Gawler Oval)\Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateWater consumption (kilolitres) 82,931 84,000







120

Service Stormwater DrainageService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.3 Sustainable Asset ManagementLegislative Reference

Key Recurrent activities:Maintenance of stormwater drainage infrastructureCleaning of side-entry pitsUpgrade/replace stormwater infrastructure in accordance with Asset Management PlanSupport the provision of flood monitoring systems

Current / Significant Issues:Minimise exposure to local flooding through appropriate infrastructure maintenance programsGrowth due to new land divisionsEnvironmental management during developmentRecent Achievements:Effective emergency management of major 1:20 flood event in September/October via planned /prepared approach and sufficient monitoring & community, executive, elected member andemergency service engagementNew Initiatives 2017/2018:Completion of underground drainage through lower WillastonFlood damage and mitigation works - Gawler Urban RiversErosion control at Gawler River outfallsService Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 Estimate




Operating ExpensesDepreciation 715,858 629,901 792,648Employee Costs (incl Overheads) 32,780 46,500 32,000Finance CostsMaterials, Contracts & Other Expenses 161,489 109,400 111,895Net Gain (Loss) Joint Ventures * 37,768 0 0Net Gain (loss) on Dispoal of Assets 3,291 0 0



* Gawler River Floodplain Management Authority

121

Service Street CleaningService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 4.4 A Better EnvironmentLegislative Reference

Key Recurrent activities:Programmed streetsweeping of urban roads to maintain a tidy appearance and assist in minimisingblocked drains due to leave litter/debris

Current / Significant Issues:Growth due to new land divisionsRequirement to retender contract in 2017/18 financial year

Recent Achievements:Sustainable program that resulted in reducing down system blocking in rainfall/flood events


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateMurray Street - 3 x per weekUrban Streets - 5 x per annumHeavy leaf fall streets - 7 x per annum




Operating ExpensesDepreciationEmployee Costs (incl Overheads)Finance CostsMaterials, Contracts & Other Expenses 144,271 158,000 140,500



122

Service StreetlightingService Category Core ServiceResponsible Officer Team Leader - Engineering ServicesCommunity Plan Reference 3.2 A Safe CommunityLegislative Reference

Key Recurrent activities:Facilitate community safety through the provision of appropriate streetlighting


Recent Achievements:Council engaged SA Power networks to carry out a Gawler wide street lighting audit. The auditidentified areas where lighting upgrades were to be done in priority order, and lighting upgradeshave been completed in a number of areas.New Initiatives 2017/2018:Upgrade street lighting Murray Road, Willaston





Operating ExpensesDepreciation 1,144 0 5,063Employee Costs (incl Overheads)Finance CostsMaterials, Contracts & Other Expenses 397,552 391,202 440,110



123

Service StreetscapingService Category Core ServiceResponsible Officer Team Leader - DepotCommunity Plan Reference 1.2 Well Presented AssetsLegislative Reference

Key Recurrent activities:Maintain urban streetscapes to an appropriate standardDevelop and implement programs to maintain and upgrade town entrancesDevelop and implement a town-wide street tree strategy

Current / Significant Issues:New development treatment of verges (ie. turf)Sustainably managing growth due to major new land divisions

Recent Achievements:Arborculture program to minimise disruption during storm events & provide quality amenities tothe communityArborculture review. Recommendations to implement increased efficiency in practices of teamin 2017/18New Initiatives 2017/2018:Renew street furniture program








124

Service Support to Local Businesses - Gawler Business Dev. GrpService Category Non-Core ServiceResponsible Officer Manager - Library & Community ServicesCommunity Plan Reference 2.1 Invest in Planning related to growthLegislative Reference

Key Recurrent activities:Support the operations of the Gawler Business Development Group Inc. via administration and collection of associated Separate Rate levied

Current / Significant Issues:Review of agreement with Gawler Business Development Group Inc. (GBDG) (expires June 2018)

Recent Achievements:GBDG Review Report received and workshoppedGBDG Annual Report and 2017/18 budget received

New Initiatives 2017/2018:GBDG refining focus to business training rather than events.



Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueRates (Business Development & Marketing) (162,745) (167,727) (172,759)ReimbursementsStatutory ChargesUser Charges


Operating ExpensesDepreciationEmployee Costs (incl Overheads)Finance CostsFunds provided to GBD Group Inc.Materials Contracts & Other 163000 167,727 172,759


NET COST OF SERVICE 255 0 0

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Service Tourism (Visitor Information Centre)Service Category Non-Core ServiceResponsible Officer Team Leader - Marketing & MediaCommunity Plan Reference 3.5 An Engaging CommunityLegislative Reference

Key Recurrent activities:Support the operations and activities of the Gawler Visitor Information Centre


Recent Achievements:Volunteer Audit and training requirement analysisHistory Month Walking Tour creation


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of visitors 19,371 19,500 Volunteer hrsOpening hrs: Mon-Fri 9am-5pm, Weekends & Pub. Holidays 10am-4pm. Closed Xmas/Good Friday


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther Revenue (3,768) (4,900) (4,900)RatesReimbursements 46 0 0Statutory ChargesUser Charges (78,056) (67,500) (70,500)





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Service Town PlanningService Category Regulatory ServiceResponsible Officer Team Leader - Development ServicesCommunity Plan Reference 2.1 Invest in Planning related to growthLegislative Reference Development Act 1993

Key Recurrent activities:Deliver efficient and effective development assessment/compliance processesSupport Council's Development Assessment decisions

Current / Significant Issues:Changes to State Planning Regulations - Transitional implementation of new planning regulations

Recent Achievements:Moving towards an electronic/digital assessment process /system (internally) - "e-planning"

New Initiatives 2017/2018:Gawler East Structure Plan DPAFinalise Residential and Character DPAFinalisation of Evanston Gardens DPACommerical and Rural Areas DPAState Government Planning Portal - Council contribution

Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateNo. of development applications 777 700

FINANCIAL ANALYSIS

Operating RevenueGrants, Subsidies & Contributions * (53,337) (100,000) (689,080)Investment IncomeOther Revenue (36,163) (18,100) (15,100)RatesReimbursements (68,876) (15,000) (15,500)Statutory Charges (219,893) (200,590) (180,556)User Charges


Operating ExpensesDepreciation 0 0 0Employee Costs (incl Overheads) 735,623 878,622 841,993Materials, Contracts & Other Expenses 367,802 406,562 565,197TOTAL OPERATING EXPENSES 1,103,425 1,285,184 1,407,190


* Includes developer contributions received towards Gawler East Development area** Includes payment to State Govt of developer contributions towards Gawler East Link Road

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Service Traffic ManagementService Category Core ServiceResponsible Officer Team Leader - Engineering ServicesCommunity Plan Reference 2.4 An effective transport systemLegislative Reference Road Traffic Act 1961

Key Recurrent activities:Monitor and promote community safety through the maintenance of traffic control signs and infrastructure to Australian StandardsCollection and analysis of Road Traffic Counters data

Current / Significant Issues:Council are currently in the process of finalising the Gawler Traffic and Transport Management Planand Willaston Local Area Traffice management Plan and expect to complete these projectsover the coming months.Recent Achievements:Facilitated road closures at various locations for community events, including Fringe Festival,Sustainable Living Festival, Farmers Market, Anzac DayInstallation of traffic control signage, new pedestrian refuges, medians at various locationsNew Initiatives 2017/2018:Renew traffic control signal to DPTI standard (stage 2 of 2)Renew street signs in Town Centre








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Service Waste Management (including Kerbside collection prograService Category Core ServiceResponsible Officer Team Leader - Environment & Regulatory ServicesCommunity Plan Reference 4.4 A Better EnvironmentLegislative Reference

Key Recurrent activities:Provide an effective domestic/green waste and recycling collection and disposal serviceAdminister joint-owner responsibilities of Northern Adelaide Waste Management Authority (NAWMA)

Current / Significant Issues:Providing a cost effective solution to wate management and landfill diversion rates

Recent Achievements:Kerbside Waste service retendered resulting in reduced service costs from early 2017


Service Levels/Measures: 2015/16 Actual 2016/17 Budget 2017/18 EstimateWaste collected - Recycled 1976 1900Waste collected - Green Waste 1797 1700General Waste collected (tonnes) 5,085 4,700


Operating RevenueGrants, Subsidies & ContributionsInvestment IncomeOther RevenueNet Gain. on Ventures * (123,054) 0 (75,000)Rates ** (1,795,308) (1,967,274) (1,911,558)ReimbursementsStatutory ChargesUser Charges 0 (25,860)

TOTAL OPERATING REVENUE (1,918,362) (1,967,274) (2,012,418)

Operating ExpensesDepreciation 9,664 9,664 10,049Employee Costs (incl Overheads) 136 0 0Finance CostsMaterials, Contracts & Other Expenses 1,814,338 1,969,956 1,927,618Net Loss Joint Ventures 0 88,305 0


NET COST OF SERVICE (94,224) 100,651 (74,751)

* Northern Adelaide Waste Management Authority (NAWMA)** Waste Management Service Charge

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Appendix 7 : Map 1 – Gawler East Development Area

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Documents

Town of Gawler 2017/18 Budget Business Plan · 2017/18 ($78,000) ($759,000) $681,000 All other Councils’ will be similarly affected by their advance grant payment being received