Pittwater 2025

2013-17 Delivery Program & Budget

May 2013

Council Vision

To be a vibrant sustainable community of connected villages inspired by bush, beach

& water

Strategic Framework

Resourcing strategy10 years

Resourcing strategy10 years

Annual Report(includes SoE)

Annual Report(includes SoE)

Operational PlanOperational Plan

Delivery Program4 years

Delivery Program4 years

Community Strategic Plan10 years+

Community Strategic Plan10 years+

Perpetual monitoring and

review

Draft Pittwater 2025

Our Community Strategic Plan

Guiding Principles

• Sustainability – Environment, Social, Economic, Governance

• Civic Leadership

Delivery Program

• Introduction

• Overview

• Financials

• Delivery Program – Actions

• Capital Improvement Program

• Statement of Fees & Charges

2025 Vision

Changes to CSP

• Vision remains same• 5 Key Directions remain same • Rationalisation of number of strategies

– Reduced duplication– Feedback over 4 years plus community engagement

• Strategies– Updated Objectives– Strategic Initiatives now belong in Delivery Program– Added Challenges & Opportunities

• Review of indicators

Engagement Outcomes

• Updated Objectives– Prioritisation at Community Workshops & Online– Reference Group Workshop– Manager Workshop– Councillor finalisation

• Identified Challenges & Opportunities– Community Workshops– Youth workshops– Online comments– Email/ Letters

• List of actions for consideration in Delivery Planning Process

Engaging the Community

• Telephone Survey = 400• Online comments = 109 • Community Forums = 130• Youth Workshops = 10• Reference Group = 15• Councillor Workshop = 8• Online Discussion = 8• Email = 18• Letters = 3• Community Workshop = 30• TOTAL = 731

Draft Delivery Program

& Budget 2013-2017

Budget – Planning Relationship

As a part of the 2013/14 Budget process, financial information that relates to Council’s Delivery Program is utilised to produce next years budget estimates and longer term financial projections:

– Known income and expenditure, balance sheet and cashflow information– Projected income and expenditure, balance sheet and cashflow information based on the Delivery

Program, historical patterns and estimated future financial information– Sensitivity analysis (assumptions and scenarios that most likely affect Council)– Financial modelling for different scenarios (Loans, Developer Contributions, LTFP)

Budget relationship to Council’s Delivery Program is as follows:

1 2 3 4 5 6 7 8 9 10

Detailed budget Forward estimates Financial projectionsfrom the from the Delivery and assumptionsOperational Plan Program

Pittwater Councils Long Term Financial Plan - 10 Years

TCorp – Financial Sustainability Ratings

NSW Treasury’s (TCorp) recent Financial Sustainability Report has seen Pittwater Council rated one of the top 30 Council’s for financial sustainability in NSW with ratings of:

– FSR Current – Sound (Scale as seen above)

– FSR Outlook – Neutral (indicating continuing Sound position)

In discussions with TCorp, these results reflects Pittwater’s positive operating results, sound delivery of services and Infrastructure, continued financial sustainability and overall effective corporate management.

2013/14 Budget Estimates

Desciption Budget

2013/ 14

Operating Result 1,577,438$ Operating Income 74,246,397$ Operating Expenditure 72,668,959$ Consolidated Result 59,353$ Total Cash & Investments 19,896,000$ Major Capital Works Program 22,592,182$ Major Maintenance Works Program 14,121,679$ Total Equity 1,052,410,000$ Rating Income Yield 37,515,253$ Unrestricted Current Ratio 2.34 Debt Service Ratio 2.86%Building Infrastructure Renewal Ratio 93.76%

Projected Operating and Consolidated Budgeted Results For the Next 4 Years

Budget Forecasts 2013/ 14 to 2016/ 17

$1,577,438

$1,407,201

$1,017,413

$59,353

$1,273,302

$60,663$52,444$78,423

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2013/14 2014/15 2015/16 2016/17

Year

$

Operating Result Consolidated Result

2013/14 Budget – Major Works Program Funding

Pittwater Council - Total Major Projects Program 2013/14 Budget ($36,713,861)

By Funding

$3,890,381

$1,591,826

$14,471,623

$1,192,426

$8,825,605

$6,742,000

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

General Revenue Special Rate Loan S94 Grants Contributions & Charges

Funding Source

$

2013/14 Budget – Major Works Program Capital

Graph 11

Upgrade - Additional expenditure on an asset to expand its useful life or add additional service potential Maintenance - Planned expenditure to maintain an asset in a condition comensurate to its deemed useful lifeRenewal - Unplanned expenditure on an asset to restore an asset to its deemed useful life Operating - Studies, Energy Initiatives, Sustainability Programs, CCTV Monitoring etcNew - Creation of a new asset

Pittwater Council - Major Projects 2013/14 Budgeted Expenditure ($36,713,861)

By Category

$16,322,263

$12,323,443

$1,753,236

$3,214,211 $3,100,708

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

Upgrade Renewal New Maintenance Operating

Expenditure Category

$

Building Infrastructure Renewal Ratios

Pittwater Council - Building & Infrastructure Renewal Ratio(Benchmark >100%)

74.85%

93.76%

71.98%

97.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2013/14 (Projected) 2012/13 (Projected) 2011/12 2010/11

Year

%

2013/14 Budget - Major Works Program

Carpark - Improvements 7,338,185$ 19.99%Bridge 5,145,605$ 14.02%Buildings - New 2,685,746$ 7.32%Streetscape - Maintenance 2,276,819$ 6.20%Buildings - Maintenance 1,719,223$ 4.68%Road - Heavy Patch 1,693,718$ 4.61%Reserves - Maintenance 1,690,685$ 4.61%Drainage 1,597,884$ 4.35%Buildings - Improvements 1,424,183$ 3.88%Sports Field - Maintenance 1,125,126$ 3.06%Road - Resheet 1,098,358$ 2.99%Coastal Management 1,029,982$ 2.81%Bushland Restoration & Protection 1,006,776$ 2.74%Footpath 872,452$ 2.38%Traffic Facilities 710,309$ 1.93%Other 696,509$ 1.90%Commercial Centre - Maintenance 620,759$ 1.69%Asset Management 541,462$ 1.47%Cemetery Maintenance 499,500$ 1.36%Road - Heavy Patch/Resheet 480,000$ 1.31%Reserves - Improvements 447,200$ 1.22%Natural Environment 399,182$ 1.09%Rock Pools - Maintenance 370,499$ 1.01%Wharfs - Maintenance 286,593$ 0.78%Wharfs - Improvement 251,296$ 0.68%Flood Management 217,596$ 0.59%Walkway - Maintenance 141,772$ 0.39%Walkway - Improvements 117,942$ 0.32%Reserves - Playground Improvements 80,000$ 0.22%Kerb & Gutter 50,500$ 0.14%Rock Pools - Improvements 45,000$ 0.12%Commercial Centre - Improvements 35,000$ 0.10%Carpark - Maintenance 18,000$ 0.05%Total 36,713,861$ 100%

Pittwater Council Total Major Works Program - By Type of Expenditure

2013/14 Draft Budget

LoansPittwater Council

10 Year Projected Loan Balance and Repayment Schedules

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Year

$

Loan Balances (Projected) Annual Repayments (Projected)

Pittwater Council 10 Year Projected Debt Service Ratio Projections

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Year

%

Debt Service Ratio (Projected) Debt Service Ratio Policy

Rating Valuations• In 2012 the Valuer General released the latest land values for

Pittwater.• As outlined below the variations of each suburb are shown.

-4.45%17,951,754,830 18,788,260,110

WHALE BEACH-14.07%738,822,900 859,761,600

WESTERN FORESHORES-16.09%199,200,800 237,393,700

WARRIEWOOD1.37%1,303,554,130 1,285,943,650

SCOTLAND ISLAND-20.15%135,587,860 169,807,600

PALM BEACH-15.46%2,276,766,550 2,693,143,250

NORTH NARRABEEN0.14%1,125,200,030 1,123,681,600

NEWPORT-0.26%2,471,983,751 2,478,345,340

MONA VALE2.18%2,681,321,150 2,624,093,130

INGLESIDE11.59%587,796,300 526,739,300

ELANORA HEIGHTS0.23%896,827,110 894,744,600

CLAREVILLE-11.63%457,210,300 517,356,800

CHURCH POINT-1.27%397,383,110 402,501,040

BILGOLA PLATEAU-1.23%724,350,930 733,387,250

BILGOLA BEACH-5.78%248,874,900 264,144,100

BAYVIEW-2.79%1,054,877,730 1,085,182,150

AVALON BEACH-8.30%2,651,997,279 2,892,035,000

Locality% change2012 LV2009 LV

Total Land Value Change

-4.45%17,951,754,830 18,788,260,110

WHALE BEACH-14.07%738,822,900 859,761,600

WESTERN FORESHORES-16.09%199,200,800 237,393,700

WARRIEWOOD1.37%1,303,554,130 1,285,943,650

SCOTLAND ISLAND-20.15%135,587,860 169,807,600

PALM BEACH-15.46%2,276,766,550 2,693,143,250

NORTH NARRABEEN0.14%1,125,200,030 1,123,681,600

NEWPORT-0.26%2,471,983,751 2,478,345,340

MONA VALE2.18%2,681,321,150 2,624,093,130

INGLESIDE11.59%587,796,300 526,739,300

ELANORA HEIGHTS0.23%896,827,110 894,744,600

CLAREVILLE-11.63%457,210,300 517,356,800

CHURCH POINT-1.27%397,383,110 402,501,040

BILGOLA PLATEAU-1.23%724,350,930 733,387,250

BILGOLA BEACH-5.78%248,874,900 264,144,100

BAYVIEW-2.79%1,054,877,730 1,085,182,150

AVALON BEACH-8.30%2,651,997,279 2,892,035,000

Locality% change2012 LV2009 LV

Total Land Value Change

Rating Valuations• Based on the movements in Land Values in conjunction with

Pittwater’s permissible rate increase of 5.9% for 2013/14, the average change in rates to be paid by suburb is shown below.

RESIDENTIAL No. Rate 12/13 Rate 13/14 Change $ Change %

AVALON BEACH 3,848 1,295.28 1,318.36 23.08 1.8%BAYVIEW 1,056 1,749.85 1,893.00 143.15 8.2%BILGOLA BEACH 112 3,787.66 3,976.05 188.39 5.0%BILGOLA PLATEAU 1,222 1,019.76 1,121.73 101.97 10.0%CHURCH POINT 439 1,550.73 1,705.04 154.31 10.0%CLAREVILLE 392 2,218.25 2,179.82 -38.43 -1.7%ELANORA HEIGHTS 1,387 1,085.59 1,211.32 125.72 11.6%INGLESIDE 281 2,179.08 2,756.37 577.28 26.5%MONA VALE 3,952 1,080.22 1,213.43 133.21 12.3%NEWPORT 3,763 1,194.15 1,320.15 126.00 10.6%NORTH NARRABEEN 1,755 975.66 1,088.47 112.81 11.6%PALM BEACH 1,231 3,586.97 3,372.53 -214.45 -6.0%SCOTLAND ISLAND 371 917.85 883.78 -34.06 -3.7%WARRIEWOOD 2,057 991.45 1,107.17 115.73 11.7%WESTERN FORESHORES 337 1,133.08 1,059.57 -73.51 -6.5%WHALE BEACH 300 4,810.49 4,581.43 -229.07 -4.8%

Total 22,503 1,389.42 1,471.26 81.83 5.9%

Average Residential RatesImpact of Revaluation & 5.9% Rates Increase

Where to From Here

• May – Public Exhibition & Meeting• 31 May for both CSP & Delivery Program

• Notes from public meeting to be posted to current consultation project page

• Early June – Collation of all submissions

• 17 June – Final documents to Council