FAQ
How can people make early input and suggestions for the budget before it is framed?
| Council Member Engagement - People can contact their Council Member who can forward any priorities at sessions held throughout the year for the Long Term Financial Plan and Annual Business Plan and Budget or alternatively directly to Council at any point during the year to council@mountbarker.sa.gov.au. Long Term Financial Plan - People can also provide inputs and suggestions as part of this public consultation process for the Long Term Financial Plan. Consultation usually takes place in November each year. |
How is the CPI calculated for our rates?
The Consumer Price Index (CPI) is a general measure of changes in prices of consumer goods and services purchased by Australian households including for example transport, food and non-alcoholic beverages, and communication. This is applied to rates to reflect a ratepayer’s ability to pay.
This differs from the Local Government Price Index (LGPI) which is a financial indicator for inflation applicable to the cost of goods purchased by Local Government entities, which is higher than CPI. In order to deliver a balanced budget Council would need to deliver efficiencies in its expenditure base.
What does the 1% increase for financial sustainability fund? How long do we have to pay for it?
1% For Financial Sustainability - The Adopted LTFP included an assumption that the four years from 2021/22 to 2024/25 inclusive would include a 1% increase above CPI for Financial Sustainability. The decision on whether the 1% for financial sustainability is required is determined each year when the draft Annual Business Plan and budget is prepared.
Rationale For 1% - The 1% for financial sustainability is a mechanism used to ensure that Council operates within key financial indicator targets in the short to medium term, whilst it supports the funding of Strategic New Capital Projects (SNCP) such as the Regional Aquatic Centre and redresses past standards to ensure equity across the community e.g. the footpath connectivity program to provide intergenerational benefits to the community.
Treasury Management Policy - Aligned with Council’s Treasury Management Policy, if required an additional increase in general rates may be included for the funding and debt servicing of major projects.
What is a Long Term Financial Plan?
| The purpose of a long-term financial plan is to express in financial terms the activities that the Council proposes to undertake over the medium to longer term to achieve its stated objectives. It is similar to, but less detailed than the Annual Budget and helps guide Council’s future actions depending on the longer-term revenue and expenditure proposals. It provides guidance and as such Council is not bound by the assumptions included within it. |
How often is the Long Term Financial Plan updated?
The Long Term Financial Plan is updated annually.
Please explain the difference between operating budget and capital budget.
| The Operating Budget - Identifies the amount of money Council will receive in income and spend on expenses in the course of its normal operating (non-capital) activities. The Operating Budget includes items such as rates, user charges, specific operating grant revenue, salaries and wages, utility and administrative costs. The Capital Budget – Is the amount of money Council will invest in the creation of new assets or renewal/upgrade of our current assets. Associated revenue can include grant revenue supporting the delivery of capital projects or developer contributions. |
Why do we need an operating surplus?
Council requires an operating surplus, so that it can not only fund day-to-day operations and services for the community, but also fund the repayment of debt associated with planned Major Capital projects.
How does Council decide how much to spend renewing footpaths?
Through a combination of formal asset condition audits, customer requests (CRMs) received and internal analysis, a number of high priority footpaths are identified for renewal each year.
When we undertake this work we take into account the location, usage, connectivity, condition and typical useful life of a footpath.
How many paths we have and what the useful life of a footpath is assumed to be then guides us as to how much we need to spend each year to renew them.
How does Council decide which footpaths are repaired and renewed?
Council aims to undertake condition audits on footpaths every 4 years. This produces a score of the condition across the network, helping prioritise the worst condition paths and which need replacement.
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How can I see if my local footpath is included in this year’s Annual Business Plan?
Click here for a searchable e-map that shows the individual projects included in this year’s capital works program.
What priority is given for surfacing or grading and improving rural roads?
Through a combination of formal audits, customer requests received and internal analysis, a number of high priority roads are identified each year.