Draft 2019/20 Operational Plan and Budget

Transport, Stormwater Drainage and Buildings Program for 2019/20

Works Program

Lithgow City Council has commenced development of the Draft 2019/20 Operational Plan and Budget.  The Operational Plan details the operational (recurrent or annual) activities, capital works and new initiatives to be undertaken in the 2019/20 financial year.  Council is currently inviting community submissions into the development of the Draft 2019/20 Operational Plan which will be investigated and considered as part of the development of the draft Plan and Budget.

If you would like an item considered as part of this process, please fill in the submission form below.   Council aims to provide the best possible value for money services for our community while ensuring financial sustainability.  

Proposed Special Rate Variation

In 2019/20 we will be applying for a Special Rate Variation, as such all items to be considered as part of this process will be considered in accordance with sound financial management practices.

Council is proposing to increase funding for the following assets:

The projected total SRV income (from maintaining the current SRV plus adding the new SRV) is estimated at $1.14 million for the 2019/20 year

  • $725,000 on Transport (sealed roads, unsealed roads, footpaths, cycleways, bridges and road drainage)
  • $100,000 on stormwater drainage
  • $250,000 on buildings

Increasing the level of funding for these assets will allow council to renew those which are currently in a poor condition. It will also ensure that the number of assets in poor condition does not continue to grow. It is essential that our community assets are safe, in working order and meet community expectations. The expenditure will ensure that the Fit for the Future asset benchmarks are met over time.

The remainder of the increased funding (approx. $70,000 p.a.) will be spent on business improvement initiatives which will either generate additional revenue or reduce long-term costs.

Proposed Buildings, Transport & Stormwater Drainage

The ‘first Draft’ of the proposed Program of Works for Buildings, Transport and Stormwater Drainage is available for viewing and public comment. This program is subject to change and will not be finalised until June 2019.

The works identified in this program to be funded by the Special Rate Variation will not proceed in 2019/20 without approval of a Special Rate Variation.

Two scenarios will impact Council’s decision making as we continue to the 2019/20 Operational Plan.

Scenario 1

Current SRV expires + rate peg

On 1 July 2019, the current 4.77% SRV expires. A 2.7% rate peg would be added to the lower rate base. The projected loss of rates revenue due to the expiry of the current SRV is estimated at $624,000 for the 2019/20 year.

Council will need to prepare a Draft Operational Plan/Budget to fund services within revenue constraints. The loss of $624,000 of rates revenue would be reflected in the cessation of the SRV program, which in 2018/19 funded capital improvements to the condition of roads, street & lanes, as well as capital improvements to buildings.

Scenario 2

Maintain the current SRV + rate peg + one-off (permanent) 4.23% SRV

Council proposes to apply to retain the current SRV of 4.77%. Council also plans to request an additional one-off SRV of 4.23%. The total SRV application will be for a 9% increase in rates revenue (i.e the current 4.77% SRV plus a new 4.23% SRV). The 2.7% rate peg will also be added. The impact on ratepayers will be a new 4.23% SRV plus the rate peg. The projected total SRV income (from maintaining the current SRV plus adding the new SRV) is estimated at $1.178 million for the 2019/20 year.

Importantly, the allocation of funding would be subject to legislatively required annual Service and Asset Management Plan reviews and to addressing priority risk mitigation actions. Expenditure would target critical service/ asset priorities that the community places a high value on and / or those that have a high risk profile. It is proposed to utilise $1.078 million of SRV funds to improve the condition of critical transport assets, buildings and stormwater drainage. The funds would be used for asset renewal and/or maintenance programs. It is also proposed to utilise $100,000 of SRV funds for business improvement initiatives which will either generate additional revenue or reduce long-term costs.

 

Draft 2019/20 Operational Plan and Budget
(This can include community programs/initiatives, infrastructure project such as building, road, recreational capital projects)
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The information on this form is being collected to allow Council to process your application and/or carry out its statutory obligations. All information collected will be held by Council and will only be used for the purpose for which it was collected. An individual may view their personal information and may correct any errors.