meet Council’s target, it is anticipated further annual funding of $200,000 needs to be allocated. Summary – If Council allocated a higher proportion of discretionary funding to asset renewal works, this would further minimise Council's ability to provide new and/or upgraded infrastructure, particularly in the older parts of the city which do not benefit from the significant Section 94 funding which flows to new release areas. Much of these works are necessary to bring certain forms of infrastructure up to desired standard. For this reason, Council needs to balance its allocation of funding between asset renewal and asset upgrade. Greater use of existing reserve funds held by Council Consideration has been given to using funds held in reserve. Council acknowledges it has significant amounts held in reserve, and that it is logical where appropriate to consider opportunities to use some of these funds. As at December 2013 Council’s total investment balance was $303 million. Of this, approximately 56% ($170.2 million) comprised externally restricted reserves. These are funds such as unspent Section 94 contributions and grant funds which can only be expended on a specific purpose. These amounts included: $93.1 million – Section 94 developer contributions $39.5 million – Second Creek planning agreement (to be repaid to Urban Growth) $20.4 million – Grants and contributions towards works $13 million – Domestic Waste Management reserve $4.2 million – Environmental Stormwater Management Charge Council also held $126.5 million (42%) in internally restricted reserves (the remaining balance of $6.3 million comprises working capital and income received in advance). The funds in internal reserves are held for a specific purpose as previously resolved by Council. As such, Council can resolve to allocate these to other purposes should it consider appropriate. However, many of these reserves are held for a specific purpose and it is not appropriate that they be redirected to another purpose, such as increased funding for asset renewal. Examples are: $7.4 million – Major computer systems reserve $3.1 million – Plant replacement reserve $14.9 million – Cash bonds and security deposits $12.2 million – Employees leave entitlements $5.8 million – Workers compensation reserve
Category Sub-category name and vacant / split Current Minimum Minimum Rates Year 1 Minimum Rates Year 2 2013/14 2014/15 2015/16 Farmland General $830.00 $874.00 $900.00 Residential Vacant minimum $375.00 $395.00 $407.00 Residential Non vacant minimum $830.00 $874.00 $900.00 Business General $375.00 $395.00 $407.00 Business General - Non vacant minimum $830.00 $874.00 $900.00 The second set are those properties proposed to be increased by a 12.3% SRV in year one and a further SRV of 13.0% in year two. Category Sub-category name and vacant / non-vacant split Current Minimum Rates 2013/2014 Minimum Rates Year 1 2014/2015 Minimum Rates Year 2 2015/2016 Business Blacktown North - Vacant 375.00 422.00 477.00 Business Blacktown North - Non vacant minimum 830.00 933.00 1,054.00 Business M4 Corridor - Vacant 375.00 422.00 477.00 Business M4 Corridor - Non vacant minimum 830.00 933.00 1,054.00 Business Marsden Park - Vacant 375.00 422.00 477.00 Business Marsden Park - Non vacant minimum 830.00 933.00 1,054.00 Business Mount Druitt - Vacant 375.00 422.00 477.00
Business Mount Druitt - Non vacant minimum 830.00 933.00 1,054.00 Business Riverstone 375.00 422.00 477.00 Business Riverstone - Non vacant minimum 830.00 933.00 1,054.00 Business Rooty Hill & Glendenning 375.00 422.00 477.00 Business Rooty Hill & Glendenning - Non vacant minimum 830.00 933.00 1,054.00 Business Hills 375.00 422.00 477.00 Business Seven Hills - Non vacant minimum 830.00 933.00 1,054.00 Business General 375.00 395.00 407.00 Business General - Non vacant minimum 830.00 874.00 900.00 Affordability and community capacity to pay Show how your IP&R processes have established that the proposed rate are affordable for your community, and that affected ratepayers have the capacity to pay the higher rate levels. (Indicators considered in this context may be similar to those cited under criterion 2). Key summary of proposed rate increase 73% of residential ratepayers will have a total increase of 5.3% (SRV and rate peg) in 2014/15. This increase is 85 cents per week. The average increase for residential ratepayers will be 88 cents per week.
Other information Previous Instruments of Approval If you have a special variation which is due to expire at the end of this financial year or during the period of the proposed special variation, when was it approved and what was its purpose? Please attach a copy of the Instrument of Approval that has been signed by the Minister or Chairman. Not applicable Reporting to your community The Guidelines set out reporting mechanisms that show your accountability to your community. Please tell us how you will go about transparently reporting to the community on the proposed special variation, should it be approved. Also indicate the performance measures you will use to demonstrate how you have used the additional funds (above the rate peg) generated by the special variation. The mechanisms that Council has in will be further developed to ensure transparent communication and reporting to the community on the special variation are outlined in the following areas. Performance and Budget reporting Council currently provides a comprehensive suite of IP&R reports to the community, made available through the Council business paper and online through the IP&R reporting section of Council’s website. All of the reports indicated can readily include specific reporting on the outcomes of the special variation, if approved and the appropriate performance measures. The current reporting framework includes: Quarterly Operational Plan and Budget Review Council’s reporting goes beyond compliance with the IP&R legislation and includes not only the required Quarterly Budget Reporting Statement but the performance of all actions and performance measures in its Operational Plan. This incorporates the capital works programs which will be relevant to the special variation and asset renewal expenditure by asset category. 6-monthly Delivery Program Review