ordinary meeting of council to be held on tuesday, 26 april 2005 at ...

• Implementation <strong>of</strong> medium <strong>to</strong> long term financial strategies <strong>to</strong> increase income and reduce
expenditure.
Council’s financial strategies are governed by its Ten Year Financial Model, which aims <strong>to</strong> increase
the organisation’s commitment <strong>to</strong> asset renewal, while simultaneously reducing debt. The Model was
developed out <strong>of</strong> the need <strong>to</strong> establish principles <strong>to</strong> ensure the long term financial sustainability <strong>of</strong>
Council whilst ensuring it would continue <strong>to</strong> provide existing levels <strong>of</strong> service <strong>to</strong> the community.
Key <strong>to</strong> driving these strategies is a transfer <strong>of</strong> all savings in<strong>to</strong> internally restricted reserves for
reallocation as capital works or asset management Programmes.
Aside from the long term financial model, Council’s financial position has improved steadily over
the past 4 years. This is illustrated in the following graph which shows Council’s surplus / deficit
from all activities 1999/2000-2003/2004.
Figure 1. Ku-ring-gai Council’s surplus / deficit ratio from all activities 1999/2000-2003/2004
$'000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
-$1,000
-$2,000
-$3,000
1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
Asset Management and Capital Works Programmes <strong>to</strong> both maintain the existing serviceability <strong>of</strong>
assets and improve them <strong>to</strong> meet the future needs <strong>of</strong> our community have <strong>be</strong>en increased
significantly as a result <strong>of</strong> Council initiatives over the last 4 years. The majority <strong>of</strong> savings that have
<strong>be</strong>en identified have <strong>be</strong>en transferred from Council’s working fund <strong>to</strong> its Capital Works Reserves
fund in order <strong>to</strong> <strong>be</strong>tter manage assets and systems in the longer term.
Under the Ten Year Financial Model and the creation <strong>of</strong> Works <strong>of</strong> Direct Community Benefit
restricted reserve and capital works reserves, a prioritisation process has <strong>be</strong>en adopted <strong>to</strong> govern
various programmes. This has enabled a strategic rather than reactive basis for the selection and
investment in works across the 12 categories <strong>of</strong> capital works (s<strong>to</strong>rmwater drainage, paved paths,
kerb and gutter, road rehabilitation, traffic facilities, cycle ways, <strong>council</strong> buildings, playgrounds,
indigenous tree canopy tree planting, open space amenities, sports fields and tennis courts). In each
<strong>of</strong> these categories, an assessment and weighting system has <strong>be</strong>en developed <strong>to</strong> score and thus
prioritise works according <strong>to</strong> available funding.
Complementary <strong>to</strong> the prioritisation process for the capital works programmes, a review <strong>of</strong> the
maintenance (repairs <strong>to</strong> existing fixtures and fittings) and refurbishment (minor improvements)
funding has <strong>be</strong>en undertaken on the broad range <strong>of</strong> Council assets. These include buildings, roads,
footpaths and cycle ways, drains, traffic facilities, street signs, fencing, car parks, passenger fleet and
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