Delivery Program 2009–2012 - Rockdale City Council - NSW ...
Delivery Program 2009–2012 - Rockdale City Council - NSW ... Delivery Program 2009–2012 - Rockdale City Council - NSW ...
Loans PolicyCouncil has an annual borrowing program to provide for capital projects like footpaths and beachfront improvementsor the provision of special recreational facilities. This approach enables both current and future generations ofratepayers to contribute towards the use of these assets, thereby more equitably aligning the payment and use ofthese services.Council intends to borrow a total of $1.1 million in 2009/2010. However, it should be noted that Council may increasethis by a further $10 million to fund property acquisitions or strategic asset plans.Details of the total loan portfolio are:2008/09$2009/2010$Opening Balance at Start of Year 5,841,620 5,845,417Add: New Loans Taken Up 1,100,000 1,100,0006,941,620 6,945,417Less: Repayments -1,096,203 -1,032,220Closing Balance at End of Year 5,845,417 5,913,197Interest Costs 401,309 359,740Loans OutstandingMillion’s$10$9$8$7$6$500/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10Debt Service Ratio8%7.2%7%6% 5.7% 5.9%5%4.9%4.8%4%4.3%3.0%3%2.8%2%2.6% 2.5%00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10Borrowing Costs per CapitaDebt per Capita$9$8$7$6$5$4$120$100$80$60$300/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10$4000/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10Council will borrow at the most competitive rate it can secure from lending financial institutions. The loan will besecured as a charge against Council’s income as prescribed in the Local Government (General) Regulation, 2005.Rockdale City Plan | 36
Cash Reserves PolicyThe establishment and funding of cash reserves is a financial management strategy to provide funds for futureexpenditure that could not otherwise be financed during a single year without having a material impact on the budget.For example, local government elections occur every four years, so Council sets aside one quarter of the estimatedcost of this activity each financial year.Council has established the following reserves towards which an annual investment of about $3.6 million istransferred:RESERVEBexley Pool ComplexTown Hall UpgradeCentral Library ReservePlant ReplacementComputer, Telephone and Office EquipmentOpen Space and S94 ObligationsLocal Government ElectionBuilding Income EqualisationStreet Lighting HardwareWorkers’ Compensation EqualisationInterest on Investments EqualisationPublic Liability InsurancePURPOSEA level of $1,000,000 be provided for the future upgrade, major repairs orreplacement of Bexley Pool.An annual provision of $50,000 be allocated for the future upgrade of theRockdale Town Hall facilities.The cash balance in this reserve to be retained towards the provision of a newcentral library. Note: Four years ago, Council discontinued the annual provisionof $200,000 to this reserve which has been allocated to the Strategic Prioritiesreserve for the past three years.An amount equivalent to maintain a balance of $600,000 in this reserve beprovided for the future replacement of Council’s plant and equipment.$340,840 be provided per annum for the future upgrade and expansion ofCouncil’s computer and telephone systems.An annual provision of $510,000 be allocated from general revenue to providethe additional funds required to provide the assets and works as outlined inCouncils S94 Contribution Plan. It is recommended that for the next 7 years, thisannual provision will be used towards the delivery of the major capital projects(as resolved by Council on 18 June 2008).An annual provision of $126,000 be allocated from general revenue each yeartowards the cost of conducting Council’s general elections every four (4) years.Building Income fluctuates in accordance with the building and developmentmarket. This reserve quarantines income in favourable years to help minimisefinancial risk exposure when there’s a downturn in the building market.This reserve is provided by setting aside the unspent budget allocation for streetlighting energy costs in a particular year, to be used towards the cost of providingstreet lighting hardware in public places, the financial burden of which recentlybecame the Council’s responsibility.On an annual basis the workers’ compensation premium fluctuates with recentclaims history. One year there could be a saving, and the next there could bean adverse impact on the budget. This reserve is utilised to put funds away in agood year, and use them to relieve pressure on the budget when the workers’compensation result is unfavourable.Interest on investments fluctuates in accordance with market forces, and thequantum of funds held in cash reserves is subject to demands and prioritiesset by Council. This reserve is provided by quarantining interest income whichexceeds budget, to offset a downturn in interest received in subsequent years.Also, this reserve acts as a safeguard to the current year budget if a significantdraw-down on investments is required.The timing of claims under excess cannot be controlled. This reserve is providedby setting aside the unspent budget allocation in a particular year, to offset ahigher number of claims and increasing excesses in a subsequent year.Delivery Program 2009-2012 | 37
- Page 1 and 2: DeliveryProgram2009-2012
- Page 3 and 4: Table of Contentspage 5 Introductio
- Page 5 and 6: IntroductionThe Rockdale Community
- Page 7 and 8: Council’s Senior OfficersChris Wa
- Page 9 and 10: Departments and Their Responsibilit
- Page 11 and 12: Corporate Strategies and PlansAsset
- Page 13 and 14: Communications Strategy and PolicyC
- Page 15 and 16: Customer ServicesIn 2008, Council w
- Page 17 and 18: EEO Management PlanEqual Employment
- Page 19 and 20: Financial PlanExecutive SummaryUnde
- Page 21 and 22: Long-term Financial SustainabilityT
- Page 23 and 24: Budget Summary2008/2009$2009/2010$2
- Page 25 and 26: Budget Detail (cont.)Fixed CostsLoa
- Page 27 and 28: As we couldn’t afford to do these
- Page 29 and 30: Rating PolicyGeneral OverviewIn 200
- Page 31 and 32: Annual Charges PolicyDomestic Waste
- Page 33 and 34: Council charges a Stormwater Levy t
- Page 35: Work on Private LandCouncil carries
- Page 39 and 40: Environmental ManagementCouncil is
- Page 41 and 42: The State of Our City’s Environme
- Page 43 and 44: AtmosphereThe major air pollutants
- Page 45 and 46: Waste Avoidance and Resource Recove
- Page 47 and 48: Major Responses◆ Heritage items w
- Page 49 and 50: 01/02 02/03 03/04 04/05 05/06 06/07
- Page 51: 01/02 02/03 03/04 04/05 05/06 06/07
- Page 54 and 55: Strategic Direction 1Outcome: Corpo
- Page 56 and 57: Strategic Direction 1 (cont.)Outcom
- Page 58 and 59: Strategic Direction 2Outcome: Corpo
- Page 60 and 61: Strategic Direction 2 (cont.)Outcom
- Page 62 and 63: Strategic Direction 3Outcome: Corpo
- Page 64 and 65: Strategic Direction 4Outcome: Corpo
Loans Policy<strong>Council</strong> has an annual borrowing program to provide for capital projects like footpaths and beachfront improvementsor the provision of special recreational facilities. This approach enables both current and future generations ofratepayers to contribute towards the use of these assets, thereby more equitably aligning the payment and use ofthese services.<strong>Council</strong> intends to borrow a total of $1.1 million in 2009/2010. However, it should be noted that <strong>Council</strong> may increasethis by a further $10 million to fund property acquisitions or strategic asset plans.Details of the total loan portfolio are:2008/09$2009/2010$Opening Balance at Start of Year 5,841,620 5,845,417Add: New Loans Taken Up 1,100,000 1,100,0006,941,620 6,945,417Less: Repayments -1,096,203 -1,032,220Closing Balance at End of Year 5,845,417 5,913,197Interest Costs 401,309 359,740Loans OutstandingMillion’s$10$9$8$7$6$500/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10Debt Service Ratio8%7.2%7%6% 5.7% 5.9%5%4.9%4.8%4%4.3%3.0%3%2.8%2%2.6% 2.5%00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10Borrowing Costs per CapitaDebt per Capita$9$8$7$6$5$4$120$100$80$60$300/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10$4000/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10<strong>Council</strong> will borrow at the most competitive rate it can secure from lending financial institutions. The loan will besecured as a charge against <strong>Council</strong>’s income as prescribed in the Local Government (General) Regulation, 2005.<strong>Rockdale</strong> <strong>City</strong> Plan | 36
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