ITEM 6.2 REPORTING MANAGER TRIM FILE REF 2014/120944 ATTACHMENTS ADOPTION OF THE DELIVERY PROGRAM 2014-2018 AND OPERATIONAL PLAN INCLUDING FEES AND CHARGES 2014/15 DEPUTY GENERAL MANAGER ENVIRONMENT 1 Summary of Public Submissions on Draft IP&R Documents 2 Additional Fees 2014/15 EXECUTIVE SUMMARY PURPOSE To seek endorsement of Council s Delivery Program 2014-2018, Operational Plan, including the fees and charges, for 2014/15 and Long Term Financial Plan 2014-2024. SUMMARY A suite of integrated planning documents has been prepared in accordance with the Local Government Act 1993 and the Office of Local Government s Integrated Planning and Reporting guidelines and manual. Council approved the public exhibition of the draft suite of documents at its meeting of 29 April 2014. The public exhibition lasted from 1 May to 30 May 2014 and generated seven submissions. Minimal changes have been made as a consequence of the submissions to the 2014/15 budget. The exhibited draft Delivery Program, Operational Plan and Long Term Financial Plan contained two scenarios: Scenario 1 was the Improve Service Levels, which allowed for a four-year Special Rate Variation from 2014/15 to 2017/18. This maintained existing service levels and allowed for a mixture of new operational funds for increased service levels and capital funds for new community assets. Scenario 2 was the Decline in Service Levels and was the base case. This allowed for rates to only increase in line with the estimated rate cap with no increases in service levels in either new operational and capital projects to further improve service levels. Scenario 2 was not sustainable as Council s budget would be in an operating deficit from 2017/18 without a reduction in service levels. Council s application for a Special Rate Variation was considered by the Independent Pricing and Regulatory Tribunal (IPART) and the determination was delivered to Council on 3 June 2014. IPART s determination was to award Council a four year Special Rate Variation commencing with an increase of 3.1% in 2014/15, 3% in 2015/16 and 2016/17, in line with the anticipated rate cap, and 9.4% in 2017/18 which is anticipated to be 6.5% above the rate cap. The Special Rate Variation awarded to Council was in order to maintain current service levels and financial sustainability. This determination will not provide for the increased level of services as exhibited in the draft IP&R documents. Once approved by Council, the suite of IP&R documents will be finalised and made available online. 1
FINANCIAL IMPACT Budget surplus The 2014/15 budget projects total operational expenditure of $159.8 million and a Capital Works Program of $40.3 million. It shows that our financial position is sound, with a projected surplus before Capital Grants and Contributions of $4.132 million and a sustainable asset base for the next decade. The components of the Surplus from Continuing Operations before Capital Grants and Contributions are as follows: Restricted $ 000 Domestic Waste Management Charges 1,681 Interest s94 and s94a Contributions 629 Kimbriki Environmental Enterprises Non-controlling Interests (Manly, Mosman and Pittwater Councils) 1,686 Expenditure relating to Grants and Other Funding received in 2013/14 (520) Unrestricted 3,476 Available for Working Capital 656 Total 4,132 Financial Planning The 10 year Long Term Financial Plan shows that the annual surplus before Capital Grants and Contributions can be maintained each year in accordance with Council s Financial Planning and Sustainability Policy. The surplus in each year of the Delivery Program takes account of IPART s Special Rate Variation determination which has approved a rates increase of 3.1% in 2014/15, an increase of 3% in 2015/16 and 2016/17, in line with the anticipated rate cap, and an increase of 9.4% in 2017/18 which is anticipated to be 6.5% above the rate cap. POLICY IMPACT Once adopted, the IP&R suite of documents will serve as Warringah Council s core strategic blueprint for 2014-2018 and financial blueprint for 2014-2024. RECOMMENDATION OF GENERAL MANAGER A. DELIVERY PROGRAM 2014-2018 AND OPERATIONAL PLAN 2014-2015 That Council s Delivery Program 2014-2018 and Operational Plan 2014/15, which includes the recommendations and amendments detailed below to the exhibited draft Delivery Program 2014-2018 and Operational Plan 2014/15, be adopted. B. RATES 1. That an Ordinary Residential Rate, to be named Residential Ordinary Rate of 0.206991 cents in the dollar on the land value of all rateable land, being land that falls within the Residential Category in the Warringah Council area, be made for the year 1 July 2014 to 30 June 2015 subject to a minimum Ordinary Residential Rate of 2
$817.76 in respect of each separate parcel of rateable land in this category. 2. That the following business rates be made for the year 1 July 2014 to 30 June 2015: a. An Ordinary Business Rate, to be named Business Ordinary Rate of 0.569174 cents in the dollar on the land value of all rateable land, being land that falls within the Business Category in the Warringah Council area, be made for the year 1 July 2014 to 30 June 2015, subject to a minimum Ordinary Business Rate of $1,049.89 in respect of each separate parcel of rateable land in this category. b. An Ordinary Business Rate Sub-Category, to be named Warringah Mall Regional Shopping Centre Sub-Category of 1.013107 cents in the dollar on the land value of all rateable land, being land that falls within the Business Sub- Category in the Warringah Council area, be made for the year 1 July 2014 to 30 June 2015. C. DOMESTIC WASTE MANAGEMENT CHARGE (DWMC) That the charges for Domestic Waste Management be made for the year commencing 1 July 2014 as follows: Availability Charges - Vacant Land $83.00 Per 80 litre bin (1 st or additional garbage bins) includes availability $339.00 Per 120 litre bin (1 st or additional garbage bins) includes availability $505.00 Supply of additional vegetation bin $91.45 Repair of vegetation bin lid $16.00* Repair of vegetation bin wheels $9.50* Service increase fee applies for delivery of larger capacity or additional $25.00 bin compared to base 80 litre service or existing service level (*Includes GST in rate) D. SECTION 611 CHARGES That an annual charge under Section 611 of the Local Government Act 1993 be adopted, made and levied for the year commencing 1 July 2014 on the person for the time being in possession, occupation or enjoyment of a rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place. E. CHARGE FOR WORKS ON PRIVATE LAND That the statement of amounts and rates to be charged for works on private land for 2014/15 and entitled Works on Private Land be adopted. F. INTEREST ON RATES & CHARGES That interest charges on rates and charges which remain unpaid after they become due and payable for the year 2014/15, shall accrue on a daily basis at the rate of 8.5% per annum simple interest. This will be subject to the final determination of the Minister of Local Government. G. VOLUNTARY PENSIONER REBATES RATES & CHARGES 1. That for the year 2014/15 Council grant to eligible pensioners who have not reached the accepted male retirement age, to owners in receipt of the blind pension and to owners who have reached the accepted male retirement age and continue to receive either the Carer Payment or Disability Support Pension from Centrelink or either the Totally and Permanently Incapacitated (TPI) Pension or the Extreme Disablement Adjustment (EDA) Pension from the Department of Veteran Affairs, a further voluntary 3
50% reduction of rates subject to a maximum voluntary reduction of $150 in addition to the statutory reduction under Section 575 of the Local Government Act. 2. That for the year 2014/15, Council grant all eligible pensioners, in addition to the statutory reduction under Section 575 of the Local Government Act 1993, a further voluntary reduction of $42 on the Domestic Waste Management Charge where the service is used, irrespective of the bin size or number of bins used. H. AMENDMENTS TO DRAFT DELIVERY PROGRAM 2014-2018 AND OPERATIONAL PLAN 2014/15 1. That the following amendments result in a net decrease to the budgeted Operating Surplus of $1,257,370: a. Rates have decreased by $2,182,063 as a result of IPART s Special Rate Variation Determination reducing the proposed rates increase from 6.1% to 3.1%. b. User Fees and Charges have decreased by $2,529,727 principally due to income from the lease of properties being reallocated to Other Revenue to reflect presentation in the Office of Local Government Code of Accounting Practice and Reporting. c. Other Revenues have increased by $2,808,376 of which $2,514,189 relates to the reallocation of income from the lease of properties. The balance of the increase principally relates to funding from the NSW Government as part of the Waste Less Recycle More program. d. Grants and Contributions Operating Purposes has increased by $138,276. This principally relates to an additional grant from Department of Planning for the Northern Beaches Hospital Precinct and a number of small grants within Natural Environment Services. e. Employee Benefits and OnCosts have decreased by $419,775. This principally relates to a reduction in programs proposed as part of the Improve Scenario which formed part of Council s Special Rate Variation application and are no longer possible as a result of IPART s Special Rate Variation determination. f. Materials and Contracts have increased by $174,441. This principally relates to additional expenditure under the Waste Less Recycle More program and land use planning for the Northern Beaches Hospital Precinct as well as a reallocation of items from Other Expenses to reflect presentation in the Office of Local Government Code of Accounting Practice and Reporting. These items have been partially offset as a result of the capitalisation of landfill cell development costs within Kimbriki Environmental Enterprises. g. Other Expenses have increased by $290,446 principally due to a change in accounting treatment for Council s contributions to the Warringah/Pittwater Rural Fire Service which has been partially offset by the reallocation of items to Materials and Contracts. h. The costs relating to the Share of Interest in Joint Venture has decreased by $552,880 reflecting the change in accounting for Council s contributions to the Warringah/Pittwater Rural Fire Service. i. The Capital Works Program for the four year Delivery Program 2014-2018 has decreased by $10,131,347 4
Total $ Draft Delivery Program 2014-2018 173,139,270 Less: Projects identified in SRV Improve Scenario (21,200,000) 151,939,270 Add: Glen Street Theatre Stage 2 funding shortfall 2,000,000 Less: Net impact of projects delayed to future years (2,000,000) 151,939,270 Add: 2013/14 rollovers approved by Council 27 May 2014 1,468,653 153,407,923 Add: Kimbriki Environmental Enterprises changes 9,600,000 Final Delivery Program 2014-2018 163,007,923 Total decrease in Capital Expenditure Program 10,131,347 I. FEES AND CHARGES 1. That the draft Fees and Charges 2014/15 be adopted. 2 That the draft fees proposed below and detailed at Attachment 2 be placed on public exhibition for a period of 28 days: J. BORROWINGS a. Fees for the art/craft room at Cromer Community Centre for profit, non profit, concession users and functions b. Fees for the western hall of Brookvale Community Centre for profit, non profit and concession users d. Fees for futsal court at the Warringah Recreation Centre for pre-school groups, schools and school holiday program Loan funding for the road infrastructure works at the Kimbriki Waste Landfill Site be included in Council s borrowing return to the Office of Local Government for 2014/15. K. INDEPENDENT ASSURANCE REPORT That Council note the auditor s draft Independent Assurance Report and that the final Independent Assurance Report be attached to the Delivery Program 2014-2018 once it is adopted. 5
REPORT BACKGROUND This report outlines the public exhibition of the suite of IP&R documents, summarises key findings arising from the exhibition, and provides further detail and explanation including recommended changes. The draft IP&R suite of documents was approved for public exhibition by Council at its meeting of 29 April 2014. Once the recommended changes are approved and made, this will form the final version of the IP&R documents available online. The Delivery Program 2013-2017 was adopted in June 2013. This program detailed the principal activities to be undertaken by Council to implement the goals outlined in the Community Strategic Plan 2023. Council is committed to providing a rolling four year planning horizon to the community in response to the Community Strategic Plan. As such, the Delivery Program has been reviewed and updated so that it now covers a time frame from 2014-2018. The Long Term Financial Plan is reviewed annually and updated to reflect the financial requirements of meeting the agreed service delivery. Change for the Better Special Rate Variation Council applied to the Independent Pricing and Regulatory Tribunal (IPART) for a special rate variation under s508(2) of the Local Government Act 1993 to improve service levels and maintain financial sustainability. The Special Rate Variation application proposed rate increases inclusive of the estimated rate cap of 6.1%, 6.0%, 6.0% and 5.9% from 2014/15 to 2017/18. As IPART had not determined the application by the time of exhibition, the draft suite of IP&R documents exhibited contained two scenarios: Scenario 1 Improve Service Levels (financially sustainable). This allowed for the four year Special Rate Variation from 2014/15 to 2017/18 discussed above. In addition to maintaining service levels, this scenario allowed for a mixture of new operational funds for increased service levels and capital funds for new community assets. Scenario 2 Decline in Service Levels was the base case and is financially unsustainable. This scenario allowed for rates to only increase in line with the estimated rate cap set by IPART with no increases in service levels in either new operational and capital projects to further improve service levels. Whilst this maintained service levels to the community it was not sustainable as Council s budget would have been in an operating deficit from 2017/18. Draft Delivery Program and Operational Plan Priorities The draft Delivery Program 2014-2018 and Operational Plan 2014/15 were based on Scenario 1, Improve Service Levels. Under this scenario, over the next four years Council would not only maintain existing levels of service to the community but also provide a range of improvements. The improvements provided for a range of new or enhanced infrastructure and facilities for the community including: The revitalisation of the Warringah Aquatic Centre ($10 million) Finishing the Glen Street Cultural Hub ($2 million) A new synthetic sports field ($2 million) Recreational dredging of Narrabeen Lagoon ($1.3 million) 6
The upgrade of a surf club facility ($1 million) It also allowed for service levels to the community to be improved. This included: Improving maintenance of our roads 9km of new footpaths and better maintained footpaths Upgrading 16 playgrounds and building an additional outdoor youth facility Improving the appearance of our parks, reserves and public gardens Increased cleaning and maintenance of our neighbourhoods and shopping centres Restoring bushland Improving waterways Cultural programs and new events IPART s Determination Council s application for a Special Rate Variation was considered by Independent Pricing and Regulatory Tribunal (IPART) and the determination announced on 3 June 2014. IPART have partially approved Council s application. The partial approval allows for rate increases of 3.1%, 3.0%, 3.0% and 9.4% between 2014/15 to 2017/18. For 2014/15 this represents a 0.8% increase above the approved rate cap of 2.3%. The decision to partially approve the application recognises that Council s costs are increasing at a rate above the rate cap and provides for Council s long term financial sustainability. Council will be able to maintain existing services but will not be able to deliver the improved increased service levels and new community assets proposed under Scenario 1 in the draft Delivery Program 2014-2018 and Operational Plan 2014/15. These projects are now unfunded and can only proceed if service levels in other areas are changed or capital works reprioritised. CONSULTATION AND TIMING The draft IP&R suite of documents was exhibited from 1 May to 30 May 2014. The total package of documents on exhibition comprised: Draft Delivery Program 2014-2018 and Operational Plan 2014/15 Draft Schedule of Fees and Charges 2014/15 Draft Long Term Financial plan 2014-2024 The consultation plan included: Hard copy exhibition at Council s libraries and Civic Centre On-line exhibition Feedback was invited via posting a submission online, email or mail. Community Feedback The exhibition generated a total of seven submissions: Two online Five emails 7
All submissions were given a unique reference number and their content transcribed. The comments were then edited and sorted to: a. Allow managers to respond to comments contained in submissions b. Identify the issues generating the most comment by residents Summary of Issues A detailed account of the submissions on the draft suite of IP&R documents including numbers and Council s response is at Attachment 1. The issues raised in the submissions have been carefully considered. Amendments to the IP&R documents are not supported as it would require diverting funding from other priority programs and projects that are important to our community. Our ability to increase levels of service to the community requires additional income or reductions in service levels in other areas. The IPART determination on Council s Special Rate Variation application means that there is not sufficient funding to allow for any increased services levels. Glen Street Cultural Hub A component of Stage 2 of the Glen Street Cultural Hub project was intended to be funded by $2m from the Special Rate Variation. As the project has already commenced, Council believes it is important that this iconic project is completed and a reprioritisation of capital works is required to enable this project to be completed in accordance with the timeframes originally proposed. The following changes are proposed: 2014/15 $ 2015/16 $ 2016/17 $ 2017/18 $ Total $ Nolans Reserve, North Manly - construction of new amenities - - (1,000,000) 1,000,000 - Beach and surf club buildings renewal works - - - 100,000) (100,000) Community buildings renewal works - (433,500) - (150,000) (583,500) Operational facilities - renewals - - - (150,000) (150,000) Sporting club buildings renewal works - - - (500,000) (500,000) Playground Improvement Program - - - (100,000) (100,000) Tramshed Arts and Community Centre, Narrabeen - renewal (433,500) 433,500 - - - Cogeneration project (Warringah Aquatic Centre) (566,500) - - - (566,500) (1,000,000) - (1,000,000) - (2,000,000) Synthetic Sports Field Forestville Park Council is seeking to complete construction of a synthetic playing surface at Forestville Park as per the masterplan for the area. This synthetic sports field was to be built as Stage 2 of this project. However IPART s determination of the Special Rate Variation has led Council to reassess priorities and move forward with increasing the number of synthetic sports fields. This will improve the level 8
of service and the carrying capacity provided for our sporting community. By building the synthetic surface first, Council immediately responds to a clear direction from the community for increased access to facilities. The community engagement process indicated broad support for the proposed masterplan including the synthetic sports field. Subject to adequate funding it is planned to have the sports field completed by end of 2015. The estimate cost for the synthetic sports field, is $3 million. Allocated in the current Delivery Program is $1.0 million in 2014/2015 and $1.7 million in 2015/2016 for Stage 1 of the works. However additional funding is required to make up a $0.3m shortfall. In addition the $3m estimate does not include associated necessary infrastructure such as a fence (low height to keep dogs out), access paths necessary for maintenance or other minor renewals of associated park infrastructure. The minimum required to undertake these works is an additional $0.3m. The remaining Stage 2, Stage 1 and facility renewal works will be programmed as funds become available in the future. In summary $2.7m is available in the 2014/15 and 2015/16 Council Budgets. An extra $0.3m is needed for the synthetic field construction to proceed and another $0.3m is necessary for ancillary works for security and to facilitate maintenance of the new field and these sums will be considered in the preparation of the 2015/16 budget. Other Amendments to the Delivery Program and Operational Plan resulting from the Special Rate Variation determination Deletions: Operational 9 Delivery Program 2014/15 2015/16 2016/17 2017/18 TOTAL Biodiversity Management Bushland Improvement Program $100,000 $202,800 $208,276 $213,899 $724,975 Community Festivals New cultural events $75,000 $77,025 $152,025 Cultural Vitality and Creativity Maintenance of public art $10,000 $10,270 $20,270 Economic Development Additional support for local business and economic development $71,500 $76,931 $79,008 $227,439 Education for Sustainability Enhanced education for sustainability program $30,000 $30,810 $60,810 Footpaths and Cycleways Improved maintenance of footpath program $32,600 $192,913 $248,122 $387,821 $861,456 Natural Area Recreation Improved maintenance Anembo Reserve $2,000 $2,000 Parks and Reserves Improving the appearance of our gardens, parks and reserves $82,400 $142,307 $417,649 $628,926 $1,271,282 Playgrounds New Youth Recreational Facility $5,000 $5,000
Recreation and Wellness Design and community engagement on redevelopment of Warringah Aquatic Centre Interest and principal repayment on loan for redevelopment of Warringah Aquatic Centre $1,200,000 $1,200,000 Roads, Traffic and Streetscaping Road condition improvement program $111,500 $624,511 $646,373 $1,382,384 Sports and Recreation Additional outdoor youth facility New synthetic sports fields $25,000 $25,000 Waste and Cleansing Increased cleaning of public spaces $535,000 $799,980 $971,578 $997,810 $3,304,368 Waterways Waterway Improvement Program $100,000 $632,700 $732,700 Total $750,000 $1,521,000 $2,762,067 $4,936,642 $9,969,709 Delivery Program Capital 2014/15 2015/16 2016/17 2017/18 TOTAL Beach management and Safety Upgrade surf club facility $1,000,000 $1,000,000 Cultural Hub Glen Street Theatre revitalisation stage 2 $1,000,000 $1,000,000 $2,000,000 Cultural Vitality and Creativity Installation of public art $200,000 $200,000 Footpaths and Cycleways Accelerated new footpath program $550,000 $590,000 $1,110,000 $2,250,000 Natural Area Recreation Anembo Reserve, Duffy's Forest - trail upgrade Narrabeen Lagoon recreational dredging $1,360,000 $1,360,000 Playgrounds Accelerated playground improvement program New youth recreational facility $160,000 $790,000 $730,000 $1,680,000 Recreation and Wellness Redeveloping the Warringah Aquatic Centre $10,000,000 $10,000,000 10
Roads, Traffic and Streetscaping New kerb and gutter program $500,000 $310,000 $810,000 Sports and Recreation New synthetic sports fields $1,500,000 $1,500,000 Street Trees Street tree replacement $200,000 $200,000 Waste and Cleansing Increased cleaning of public spaces $200,000 $200,000 TOTAL $1,750,000 $1,750,000 $2,800,000 $14,900,000 $21,200,000 Domestic Waste Management Charge The Draft Long Term Financial Plan proposed to delay the increase in domestic waste management charges associated with anticipated collection and disposal cost increases and a new bin system rollout associated with the closure of the Belrose landfill site until 2018/19. Given IPART s determination to only approve an increase to maintain services and financial sustainability it is now appropriate from a financial sustainability perspective to phase in these increases over the four years of the Delivery Program. This will result in increases in the Domestic Waste Management Charge from 2014/15 to 2017/18 for an 80 litre bin by an average of $30 per annum (120 litre $45). Other Amendments to the Delivery Program and Operational Plan Additional actions: Strategic Planning o The action Review bush fire prone land' be added to the schedule of actions for 2014/15 Amendments to existing actions: Parks, Reserves and Foreshores o The action Perentie Road, Belrose - park works is renamed Lindrum Reserve, Belrose Park Works Changes to Fees and Charges A number of new hiring fees are also proposed at Council facilities. These fees were not exhibited as part of the draft Fees and Charges 2014/15 and relate to: Hiring of the art/craft room at Cromer Community Centre for profit, non profit, concession users and functions Hiring of the western hall of Brookvale Community Centre for profit, non profit and concession users Hiring of the futsal court at the Warringah Recreation Centre to pre-school, schools and school holiday program groups Details of the additional fees are at attachment 2. As the proposed fees are new they will need to be publicly exhibited for 28 days before being reported back to Council on 26 August 2014. 11
Borrowings At its meeting on 9 April 2013 Council resolved to seek loan funding for road infrastructure works at the Kimbriki site and that such borrowings be included in Council s borrowing return to the Office of Local Government for 2013/14. Pending final planning approvals for those works, which are now estimated to increase by $1.685m, construction is now expected to commence in September 2014. These borrowings will need to be included in Council s borrowing return to the Office of Local Government for 2014/15 as the loan was not taken in 2013/14 as originally intended. Changes to Kimbriki Environmental Enterprises Capital Works Program The principal changes are associated with landfill cell development costs. To comply with the site's Environmental Protection Licence Kimbriki is required to install a leachate barrier system to each surface within the premises that is used for the drainage and storage of leachate constructed after 1996. The following details all changes identified to Kimbriki Environmental Enterprises Capital Works Program: Delivery Program 2014/15 2015/16 2016/17 2017/18 TOTAL High Level Drain - - - 550,000 550,000 Resource Recovery Facility - (1,176,675) 351,675 - (825,000) Office and Amenities 1,200,000 (200,000) (1,000,000) - - Landfill Cell Development 870,000 2,550,000 1,470,000 3,300,000 8,190,000 Access Road 1,685,000 - - 1,685,000 Total 2,070,000 2,858,325 821,675 3,850,000 9,600,000 Other Capital Works Project Changes The following changes have been identified to the timing and allocation of projects since the presentation of Draft Delivery Program 2014-2018: Delivery Program 2014/15 2015/16 2016/17 2017/18 TOTAL Tramshed Arts and Community Centre, Narrabeen - renewal (653,948) 653,948 - - - Collaroy Stormwater Outlet 305,000 - - - 305,000 Planned Stormwater Renewal Program (305,000) - - - (305,000) Sporting Club Buildings Renewals 25,000 (25,000) - - - North Curl Curl Rockpool - Access (80,000) - - - (80,000) Foreshore Renewal Program (40,000) - - - (40,000) General Infrastructure Renewal Program (30,000) - - - (30,000) Queenscliff Rockpool - upgrade 200,000 (50,000) - - 150,000 Total (578,948) 578,948 - - - POLICY IMPACT Once adopted, the IP&R suite of documents will serve as Warringah Council s core strategic blueprint for 2014-2018 and financial blueprint for 2014-2024. 12
FINANCIAL IMPACT Budget surplus The 2014/15 budget projects total operational expenditure of $159.8 million and a Capital Works Program of $40.3 million. It shows that our financial position is sound, with a projected surplus before Capital Grants and Contributions of $4.132 million and a sustainable asset base for the next decade. The components of the Surplus from Continuing Operations before Capital Grants and Contributions are as follows: Restricted $ 000 Domestic Waste Management Charges 1,681 Interest s94 and s94a Contributions 629 Kimbriki Environmental Enterprises Non-controlling Interests (Manly, Mosman and Pittwater Councils) 1,686 Expenditure relating to Grants and Other Funding received in 2013/14 (520) Unrestricted 3,476 Available for Working Capital 656 Total 4,132 Financial Planning The 10 year Long Term Financial Plan shows that the annual surplus before Capital Grants and Contributions can be maintained each year in accordance with Council s Financial Planning and Sustainability Policy. The surplus in each of the Delivery program takes account of IPART s Special Rate Variation determination which has approved a rates increase of 3.1% in 2014/15, an increase of 3% in 2015/16 and 2016/17, in line with the anticipated rate cap, and an increase of 9.4% in 2017/18 which is anticipated to be 6.5% above the rate cap. Independent assurance To provide an additional level of rigour, an independent auditor Hill Rogers Spencer Steer has reviewed the Long Term Financial Plan and has provided an Independent Assurance Report that assures Council that it has been based on sound procedures and in accordance with internal guidelines. A final copy of the auditor s report will be attached to the final Delivery Program/Operational Plan provided no additional alterations having a net impact on Council s financial planning will be made other than that recommended in this report. 13