Year 4 2017-2021 - Ararat Rural City Council
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2017-2021 Year 4
CONTENT 3 Message from the Mayor and Councillors 4 Municipal Snapshot 5 Town and Rural District Names 5 Acknowledgement of Country 6 Our Municipality 7 Our Councillors 8 Message from the Chief Executive Officer 9 Our Organisation 10 Our Planning Framework 11 Our Vision, Mission and Values 12 Our Pillars 13 Strategic Objectives/Strategies - Our Community 14 Strategic Objectives/Strategies - Our Lifestyle 15 Strategic Objectives/Strategies - Our Economy 16 Strategic Objectives/Strategies - Our Environment 17 Strategic Objectives/Strategies - Our Organisation 18 2019/2020 Priorities Action Plan 22 Strategic Resource Plan 23 Comprehensive Income Statement 24 Balance Sheet 25 Statement of Changes in Equity 26 Statement of Cash Flows 27 Statement of Capital Works 28 Statement of Human Resources 29 Financial Performance Indicators 31 Funding Sources 33 Summary of Capital Works
MESSAGE
FROM THE MAYOR & COUNCILLORS
This coming year, our revised Council Plan outlines
new initiatives including:
• Developing township strategies for Lake Bolac
and Elmhurst.
• Seeking sector partners for the redevelopment of
the McDonald Centre site in Ararat.
• Completing the Skatepark Lighting element of
the Ararat on the Move project.
• Holding a cultural festival in 2020/2021.
• Advocating for the development of the Ararat
Regional Park Mountain Bike Track.
I am very pleased to present to the community the
• Starting female-friendly change facilities at the
revised Ararat Rural City Council Plan 2017-2021.
Willaura Recreation Reserve.
This is the fourth year of our Council Plan, and each
• Beginning work on the Mininera Recreation
year we update the document to inform our residents
Reserve irrigation project.
of how we are progressing with our goals.
• Starting planning for the Ararat Fitness Centre
and outdoor pool upgrades.
The Council Plan is one of the most important
• Establishing a co-working space.
documents Council develops as it is the foundation
• Planning for the Ararat bypass and continue
for everything we as an organisation strives to
advocating for the Western Highway duplication.
achieve for the community. The plan provides a
• Completing Council's Waste Management
blueprint for everything we do on a day-to-day
Strategy, including impacts of the State
basis, whether we are maintaining roads, building
Government's Circular Economy Policy.
a new facility, managing waste or administering the
organisation’s finances.
Thank you for taking the time to read the updated
Ararat Rural City Council Plan 2017-2021. Council
Ararat Rural City Council is committed to serving its
looks forward to implementing the exciting projects
community and the Council Plan outlines how we will
and programs outlined in the plan, providing our
do that to the best of our abilities. I strongly believe
community with the services and infrastructure it
we have developed a revised document that will
needs and deserves.
serve us and our residents very well over the next
year until we develop our new Council Plan in 2021.
Cr Jo Armstrong
Mayor
I am pleased to report that over the past year
we have made great headway with our strategic
objectives, achieving the goals that were outlined
in last year’s plan and making a start on others. It is
wonderful to see the list of achievements, as our CEO
Dr Tim Harrison will outline in his message following.
Ararat Rural City Council has accomplished some
great projects, with actions from our infrastructure
plan some of the most exciting. These have included
working on our transfer stations, planning for facility
upgrades, and working to secure funding for female-
friendly facilities at sporting grounds to help increase
participation and improve amenities for women.
ARARAT RURAL CITY COUNCIL PLAN 3
MUNICIPAL
SNAPSHOT
Number of Councillors 7
Rate and charge revenue $17.025 (2018/19 actual)
Total Revenue $34.184m (2018/19 actual)
POPULATION
Length of sealed local roads 764kms
11,845
Length of unsealed local roads 1,660kms
Ararat Rural City Council is an un-subdivided
municipality for electoral purposes.
AREA 4,230
SQUARE
KILOMETRES
RATEABLE
PROPERTIES
7,120
NUMBER OF
EMPLOYEES
136.4 EFT
4
ARARAT RURAL CITY
TOWN & RURAL DISTRICT NAMES
POMONAL 322
ELMHURST
ARMSTRONG
MT COLE
MOYSTON ARARAT WARRAK
BUANGOR
MAROONA
TATYOON
WILLAURA
MININERA
WESTMERE
WICKLIFFE STREATHAM
LAKE BOLAC
ACKNOWLEDGEMENT OF COUNTRY
Council acknowledges the traditional owners of the land on which we meet, and pay our respects to their
elders, past, present and emerging.
ARARAT RURAL CITY COUNCIL PLAN 5OUR MUNICIPALITY
ARARAT - located at the foothills of the Grampians and POMONAL - a picturesque village set against the dramatic
surrounded by picturesque grazing country, Ararat is the backdrop of the Grampians National Park, and is a 36
centrepiece in a region of tranquil and inspiring national kilometres drive north-west of Ararat. Pomonal’s hallmark
attractions, including the Grampians National Park, Mount is its spectacular variety of wildflowers, with a Native
Langi Ghiran, Mount Cole, Mount Buangor, Ararat Hills Flower Show held annually in spring.
Regional Park and the Pyrenees Ranges.
ROSSBRIDGE – established on the Ararat to Coast road
Ararat is also in the Grampians Wine Region, a historic and in the 1860s, the town gained its name from the Ross’s
expanding wine district renowned for high quality wines Bridge at the crossing of the Hopkins River.
and scenic vineyards.
STREATHAM, MININERA AND WESTMERE – small
ARMSTRONG – located on the Western Highway north of communities situated in the south eastern portion of
Ararat, it began as a gold-mining settlement with a Post the Ararat Rural City. These 3 townships are close
Office in 1859. communities.
BUANGOR - a small town on the Western Highway The communities of Streatham, Mininera and Westmere
nestled between Mount Buangor, Mount Cole and Mount are situated within 10kms of each other, their answer to
Langi Ghiran 20km west of Beaufort on the bank of the the declining population has been to work together to
Billy Billy Creek. The Buangor name is Aboriginal for maintain resources valuable to the district as a whole.
‘Pointed Hill’, a reference to Mt Buangor.
TATYOON – essentially a centre for farmers and their
CATHCART – was a site of the earliest gold discovery families, offering community and sporting facilities. The
(1854) in the Ararat district, and it has also been known as majority of residents are involved in primary production.
Old Ararat.
WARRAK/MT COLE – set in a beautiful valley, with a
ELMHURST - a small village between Ararat and Avoca on mountain backdrop and offers the feeling of peace
the Pyrenees Highway. Elmhurst is situated at the centre in a quiet country atmosphere. It is a predominantly
of a diverse agricultural region on the upper reaches of agricultural community.
the Wimmera River, bounded by the Pyrenees Ranges and
the southern end of the Great Dividing Range.
WILLAURA – located 34 kilometres south of Ararat on the
southern edge of the Grampians National Park. Willaura
LAKE BOLAC - a historical settlement some 30 minutes is supported by the local farming industry, which is mainly
drive south of Ararat. An important service centre for the involved in wool and cropping.
surrounding farms, the township is also an attraction in its
own right. The Lake is 27 kilometres around the foreshore
WICKLIFFE – is surrounded by agricultural land and has
and covers 1460 hectares, and is popular for boating,
a strong farming community. The township is home to
fishing and sailing.
a mix of residents who are attracted to the area for that
“quieter”lifestyle.
MAROONA – was the name of an early pastoral property,
and it is thought that the name was derived from an
Aboriginal word describing pine-like trees.
MOYSTON - a small village, only a 15-minute drive
from Ararat near the Grampians mountain range. The
discovery of gold in 1857 started a small gold rush and
the establishment of a township. Moyston is also the
birthplace of Australian Rules Football.
6 ARARAT RURAL CITY COUNCIL PLANOUR
COUNCILLORS
Mayor
Cr Jo Armstrong
0437 132 896
jarmstrong@ararat.vic.gov.au
Deputy Mayor
Cr Bill Braithwaite
0448 782 539
bbraithwaite@ararat.vic.gov.au
Cr Gwenda Allgood
0458 583 746
gallgood@ararat.vic.gov.au
Cr Peter Beales
0437 118 582
pbeales@ararat.vic.gov.au
Cr Frank Deutsch
0436 439 301
fdeutsch@ararat.vic.gov.au
Cr Fay Hull
0448 043 522
fhull@ararat.vic.gov.au
Cr Bernardine Atkinson
0400 524 132
batkinson@ararat.vic.gov.au
7MESSAGE
FROM THE CEO
• Received funding for female-friendly change facilities
at the Willaura Recreation Reserve with the aim of
increasing participation and providing much-needed
modern amenities for women and their families.
• The beginning of work on the Ararat on the Move
Premier Sporting Facility Development – Development
of Netball Courts and Upgrade of Olver Grandstand
project at Alexandra Oval, Ararat, another project
aimed at improving amenities for women participating
in sport.
• The beginning of work on the Ararat on the Move
On behalf of the organisation, I am very pleased to present Alexandra Oval Development – Events and Visitor
the revised Council Plan 2017-2021 to the Ararat Rural City Space project, a development that will help enliven the
community. oval precinct with a readymade space for events and
festivals.
Ararat Rural City Council is committed to ensuring the
Council Plan is a living document that we as employees use • Redeveloping and upgrading the Lake Bolac Transfer
to guide everything we do for our community. Station to provide improved facilities.
The Council Plan provides the organisation with a solid • Completing e-waste facilities at the Ararat and Lake
framework to ensure the services we provide and the Bolac Transfer Stations to ensure enough storage
infrastructure we deliver are done with a strategic purpose space after a state-wide ban on e-waste in landfill was
and offer the best possible value to the community. introduced.
The Council Plan also helps ensure the public funds we are • Advocating for the full funding of the East Grampians
entrusted with are used to better the community across Pipeline project, infrastructure that is much needed by
our four pillars – our community, our lifestyle, our economy our agricultural sector.
and our environment. Council aims to deliver projects that
• Overseeing the creation of the Greater Area Business
maintain and improve the wonderful lifestyle we hold dear
Network, a revitalised business organisation for the
and provide much-needed services that none of us could do
region.
without.
• Advocating for the continuation of the Western
The Council Plan seeks to ensure our available resources are
Highway duplication, an incredibly important
used in the most effective way possible to provide quality
infrastructure project for transport and economic
services, deliver them in a cost-effective manner and match
development across the region.
our commitments to the community’s needs and visions for
the future. • Implementing a street tree planting program to help
beautify streetscapes right across the municipality.
In this vein, I would like to outline just some of the
significant achievements from the past year’s Council Plan. It has been very rewarding implementing the actions from
the Ararat Rural City Council Plan 2017-2021 over the past
• The completion of the Ararat on the Move – Alexandra
year and I look forward to continuing this work over the
Gardens Safety Lighting project, which will enable
coming year.
residents to use a much-loved open space for sport and
recreation in the early mornings and evenings.
• Completion of a formal review of Council’s arts, Dr Tim Harrison
culture and heritage programs to identify areas for
improvement and cost savings. Chief Executive Officer
88 ARARAT RURAL CITY COUNCIL PLANOUR
ORGANISATION
SERVICE STREAMS
IT systems
ORGANISATIONAL
Organisational performance management
TRANSFORMATION
KPI program
Human resources management
HUMAN RESOURCES Occupational health and safety
Staff performance management
Major economic development projects
ECONOMIC DEVELOPMENT GABNet
Tourism
Governance
GOVERNANCE AND RISK Risk management
Statutory reporting
Media
COMMUNICATION Council website
Social media
Capital project design and costing
DESIGN AND PROJECT
Capital works project management
MANAGEMENT
Capital works planning
Asset valuation
ASSET MANAGEMENT GIS
Asset condition reporting
Local road maintenance
Parks and gardens
OPERATIONS Building maintenance
Road construction
Bridge maintenance
Ararat Art Gallery (TAMA)
ARTS, CULTURE AND HERITAGE Performing Arts Centre
Gum San
Emergency Planning
EMERGENCY MANAGEMENT
MERO & MRM roles
Statutory planning
CEO’S OFFICE
PLANNING Strategic planning
Dr Tm Harrison
Planning compliance
Julie Cronin
MUNICIPAL BUILDING Statutory Building Surveying
SURVEYOR Emergency Service Measure project
MANAGER PLANNING, COMMUNITY AND COMPLIANCE
Food safety programs
ENVIRONMENTAL Wastewater systems
HEALTH Public health programs
Circular economy
WASTE MANAGEMENT Kerbside collection
Transfer stations
Roadside pest management
SUSTAINABILITY Environment
Vegetation management and offsets
Veronica Schilling
Animal management
COMMUNITY SAFETY Parking management
Local Laws management
Support community events
COMMUNITY EVENTS Community event funding
Community Support Funding Program
Ararat Leisure Centre
RECREATION SERVICES Outdoor Pools
Recreation Officer role
Alexandra Oval Community Centre
FUNCTION SPACES Gum San Great Hall
Sporting club relationships
Ararat Library
LIBRARY SERVICES Lake Bolac Business and Information Centre
Mobile library services
Personal care
HOME AND Delivered meals
COMMUNITY CARE
Aged and disability services
ARARAT RURAL CITY Vincent St customer service centre
CORP. SUPPORT
CUSTOMER SERVICE Telephone service
COUNCIL Customer charter development
MANAGER
Alister Rowe
Financial accounting
ORGANISATIONAL FINANCE AND RATING Management accounting
Rates management
STRUCTURE Procurement management
PROCUREMENT Purchasing policy compliance
2020/2021 Vehicle fleet managementOUR
PLANNING
The Council Plan identifies Council’s direction for
the next four years. The Strategic Resource Plan
documents how we will fulfill these commitments.
These plans directly influence the Annual Budget.
Every year Council is required to report against the
indicators and measures identified in the Council
Plan in our Annual Report.
FRAMEWORK
NEEDS &
ASPIRATIONS LONG-TERM
OF THE VISION & PLAN COUNCIL'S PLAN
COMMUNITY
COUNCIL PLAN & BUDGET
Monitored
& Measured
STRATEGIC OBJECTIVES By Strategic
Indicators
STRATEGIES & COMMITMENTS Completion of
commitments
COUNCIL'S (YEARLY ACTIONS) measured in Annual
ONGOING Action Plan
SERVICE TO THE
COMMUNITY
OUTCOME: IMPROVED COMMUNITY ENGAGEMENT & WELLBEING
10 ARARAT RURAL CITY COUNCIL PLANOUR VISION OUR VALUES OUR MISSION
Our communities, Respect - Respect for each other and We will demonstrate
our opportunities the wider community. leadership through social
responsibility, openness and
Excellence - Striving for ongoing transparency by actively
professionalism and organisational working with our community
excellence. to achieve shared goals.
Passion - Passion for our people,
community and services.
ARARAT RURAL CITY COUNCIL PLAN 1111OUR PILLARS
Our Council Plan is built upon four pillars
OUR COMMUNITY OUR LIFESTYLE
Community Development Heritage/History
Community Safety Arts & Culture
Diversity & Inclusion Regional Living
Sport and Recreation
Passive & Active Public Space
Community Events
OUR ECONOMY OUR ENVIRONMENT
Economic Activity Building & Facilities
Tourism Environmental Sustainability
Digital Connectivity Natural & Built Environment
Major Events
Planning & Development
Supporting these pillars is the foundation of Our Organisation
Financial Sustainability
Civic Events
Organisational Processes & Systems
Leadership & Governance
12 ARARAT RURAL CITY COUNCIL PLANOUR
COMMUNITY
Incorporating: Community Development, Community Safety and Diversity and Inclusion
We value our people and our community, their sense of place, resilience and connectedness and we target our services
to meet their needs
Strategic Objective/Strategies
1.1 Work with communities to develop and prosper
1.1.1 Provide community development support and facilitate partnerships
1.1.2 Support vibrant community organisations
1.1.3 Promote the learning, literacy and information needs of the community
1.1.4 Create a culture which supports social inclusion
1.2 Accessible, responsive and inclusive community services
1.2.1 Partner to ensure that services and programs are delivered to families and children
1.2.2 Support programs and services for young people
1.2.3 Ensure Council's services and facilities are accessible
1.2.4 Develop an effective community engagement model
1.3 A safe community
1.3.1 Implement and support effective approaches to emergency management
1.3.2 Ensure delivery of legislated public safety and health programs
1.3.3 Support community safety programs
1.3.4 Promote initiatives that prevent violence against women
1.3.5 Promote, develop and administer Council's Local Laws and relevant legislation
ARARAT RURAL CITY COUNCIL PLAN 13OUR
LIFESTYLE
Incorporating: Heritage/History, Arts and Culture, Regional Living, Community Events, Sport and Recreation and Passive and
Active Public Spaces
We strengthen the underlying community fabric by celebrating and nurturing the culture and heritage which defines our
identity
Strategic Objective/Strategies
2.1 Community and cultural connectedness
2.1.1 Recognise cultural history and heritage, including local indigenous heritage
2.1.2 Support and develop local activities which activate spaces and enhance lifestyle
2.1.3 Support community events
2.2 Promotion of regional living
2.2.1 Promote Ararat as a regional centre
2.2.2 Leverage our proximity to Melbourne and other regional centres
2.2.3 Promote regional living benefits
2.3 Strong performing and visual arts program
2.3.1 Promote the Ararat Town Hall as a significant regional Performing Arts Centre
2.3.2 Develop the profile of the Ararat Regional Art Gallery as TAMA
2.3.3 Deliver an innovative, diverse and accessible program of exhibitions and performances
2.4 Ararat Active City
2.4.1 Promote community health and wellbeing through the provision of recreation facilities and programs
2.4.2 Develop walking and cycling trails for recreation and commuter use
2.4.3 Support schools and workplaces to be health promoting environments
2.4.4 Encourage delivery of community-based health and wellbeing programs
14 ARARAT RURAL CITY COUNCIL PLANOUR
ECONOMY
Incorporating: Economic Activity, Tourism, Major Events, Digital Connectivity and Planning and Development
We enhance our community’s prosperity through encouraging sustainable growth
Strategic Objective/Strategies
3.1 A strong and diverse local economy
3.1.1 Partner with businesses and peak organisations to support strong business sectors
3.1.2 Pursue investment opportunities to diversify and strengthen the municipality’s economic base
3.1.3 Support the tourism sector, through engagement with Grampians Tourism and regional stakeholders
3.1.4 Actively support the agribusiness sector through advocacy and industry programs
3.1.5 Promote the regional wine and food sector
3.1.6 Advocate for the active use and preservation of Aradale
3.2 Effective, efficient and safe transport networks
3.2.1 Plan and develop transport networks promoting social and economic connectivity
3.2.2 Advocate for increased passenger rail services across the western region
3.2.3 Maintain and develop roads, bridges and footpaths to agreed standards
3.2.4 Plan and implement road safety and traffic control improvements
3.2.5 Develop a freight strategy
3.3 Effective and efficient land use planning and building control
3.3.1 Implement a Planning Scheme that facilitates social, economic and environmental wellbeing
3.3.2 Provide an effective development application processing system
3.3.3 Preserve local heritage through appropriate planning controls
3.3.4 Utilise integrated urban design principles in support of the existing character of townships
ARARAT RURAL CITY COUNCIL PLAN 15OUR
ENVIRONMENT
Incorporating: Buildings and Facilities, Environmental Sustainability, Natural and Built Environment
We value our natural and built environment and want to manage, enhance and protect it, now and for future generations
Strategic Objective/Strategies
4.1 Attractive streetscapes, town entrances, parks and gardens
4.1.1 Develop and maintain Council owned and managed parks, gardens, playgrounds and open space
4.1.2 Develop and maintain township entrances and streetscapes
4.1.3 Provide and maintain public toilets and amenities at established standards
4.2 Effective management of municipal waste and disposal of domestic stormwater/wastewater
4.2.1 Manage and maintain stormwater infrastructure
4.2.2 Plan and regulate on-site domestic wastewater disposal
4.2.3 Continue to improve and deliver municipal waste and recycling collection services
4.2.4 Provide and effectively manage waste transfer stations
4.2.5 Promote recycling, reuse and minimisation of waste
4.3 Protected and enhanced natural environment
4.3.1 Promote Council’s environmental sustainability role across the municipality
4.3.2 Identify and pursue initiatives to reduce greenhouse gases, energy and water consumption and to
conserve water
4.4 Long-term asset management
4.4.1 Develop long-term Strategic Asset Management Plans for all Council assets to manage current and future needs
4.4.2 Manage and deliver a long-term Capital Works Program to improve community infrastructure and facilities
16 ARARAT RURAL CITY COUNCIL PLANOUR
ORGANISATION
The foundation of the four pillars
Incorporating: Organisational Processes and Systems, Leadership and Governance, Health and Wellbeing, Financial
Sustainability and Civic Events
Our Council is open, fair and honest, engaging with the community to provide leadership and supporting our community
through efficient and effective service provision
Strategic Objective/ Strategies
5.1 Good governance through leadership
5.1.1 Support the role of Councillors by informing, resourcing, skilling and supporting them
5.1.2 Ensure Council governance complies with legislative requirements and best practice
5.1.3 Support the Audit and Risk Committee to provide Council with pro-active advice on management of
corporate governance
5.1.4 Work with our communities to encourage open communication and participation
5.1.5 Pursue strategic alliances and partnerships to assist Council in policy development and service delivery
planning
5.2 Services and infrastructure that meets the municipality’s needs
5.2.1 Identify infrastructure and service funding gap priorities and appropriate solutions and funding options
5.2.2 Advocate for improved service provision by government, the private sector and not-for-profit providers\
5.3 Organisational Risk
5.3.1 Plan for and manage Council's strategic, reputational and operational risks
5.3.2 Develop and implement a project management framework that ensures effective project delivery
5.4 Sustainable, long-term financial management
5.5.1 Develop and maintain a strategic financial planning, management and reporting system
5.5.2 Develop and implement a balanced revenue model for funding Council's services, assets and operations
5.5.3 Commit to an ongoing Service Delivery Review Program
ARARAT RURAL CITY COUNCIL PLAN 17ACTION 2019/2020 PRIORITIES PLAN 18 18 ARARAT RURAL CITY COUNCIL PLAN
OUR COMMUNITY
Objective Action
1.1 Work with communities to develop and • Develop township strategies for Lake Bolac and Elmhurst
prosper • Preparation work for Moyston and Buangor township strategies
1.2 Accessible, responsive and inclusive • Seek sector partners for the redevelopment of the McDonald
community services Centre site
• Develop a Vocational Education & Training (VET) sector
partnership plan
• Develop a model to further expand the library into the
community education space
1.3 A safe community • Completion of the Skatepark Lighting element of the Active Link
project
OUR LIFESTYLE
Objective Action
2.1 Community and cultural connectedness • Hold a cultural festival in 2020/2021
2.2 Promotion of regional living • OPAN (Opportunity Pyrenees, Ararat & Northern Grampians)
project commenced
• Develop and promote the Pomonal Tunnel Track walk
2.3 Strong performing and visual arts program • Undertake formal review of Arts, Culture and Heritage programs
• 2020/2021 Town Hall and TAMA programs
• Investigate acquisition of the Cardamone Interior Design
Collection
2.4 Ararat Active City • Advocate for Ararat Regional Park Mountain Bike Track
• Develop a works priority for rural recreation reserves
• Commence development of Female Friendly change facilities at
Willaura Recreation Reserve
• Commence development of Mininera Recreation Reserve
irrigation project
• Ararat on the Move Events and Visitor Space and Pathways and
Active Links
• Ararat Active Link Stage 2 – multipurpose court and bouldering
wall
• Commence planning for Ararat Leisure Centre and Outdoor
Pool upgrades
ARARAT RURAL CITY COUNCIL PLAN 19OUR ECONOMY
Objective Action
3.1 A strong and diverse local economy • Promote the Ararat East Development Zone. Commence works on
Heath Street Level Crossing
• Attract a 4-star tourist accommodation business to Ararat
• Support development of a business association
• Conduct a wine industry conference in Ararat
• Establish a co-working space
• Support business recovery from COVID-19 event
• Promote improved commercial streetscapes
• Council to lead development of a Business Leaders Forum
• Actively engage in promoting renewable energy options for the
municipality
3.2 Effective, efficient and safe transport • Implement Capital Works Planning Model
networks • Continue to work with Rural Roads Group to develop rural
network based on economic and social outcomes
• Review the Road Management Plan
• Planning for the Ararat Bypass
• Continue to advocate for Western Highway duplication
3.3 Effective and efficient land use planning • Housing strategy developed and implemented
and building control • Public Private Partnership housing model explored with potential
private sector partners
OUR ENVIRONMENT
Objective Action
4.1 Attractive streetscapes, town entrances, • Street tree planting program, including introduction of edible
parks and gardens species
• Upgrade township and municipal welcome signage
4.2 Effective management of municipal • Complete Council's Waste Management strategy, including
waste and disposal of domestic impacts of the State Government's Circular Economy Policy
stormwater/wastewater
4.3 Protected and enhanced natural • Revision of the Environmental Sustainability Strategy (ESS)
environment
• Review engagement processes around sustainability
20 ARARAT RURAL CITY COUNCIL PLANOUR ORGANISATION
Objective Action
5.1 Good governance through leadership • Conduct candidate and Councillor mandatory training
• Conduct Council elections October 2020
• Councillor induction training program reviewed and implemented
• Implement Council’s Risk Management policy, procedure and
systems
• Implement a program of policy review across Council
5.2 Services and infrastructure that meets the • Undertake the Ararat Digital Transformation Project
municipality’s needs
5.3 Organisational Risk • Implement the Regional Councils Transformation Project (Central
Highlands)
5.4 Sustainable, long-term financial • Establish service standards and a Council senior management
management reporting framework
• 10-year capital works program funding model explored by Council
ARARAT RURAL CITY COUNCIL PLAN 21STRATEGIC RESOURCE PLAN
Council is required under section 126 of the Local The Strategic Resource Plan is prepared and revised
Government Act 1989 (the Act) to prepare a Strategic annually based on the latest financial data. It comprises
Resource Plan (SRP) covering both financial and a four-year financial estimate that comprises the:
nonfinancial resources for at least the next four financial
years to support the Council Plan. • Comprehensive Income Statement
The Strategic Resource Plan expresses Council’s • Balance Sheet
medium term financial and human resource planning • Statement of Changes in Equity
with a focus on ensuring resource allocation to deliver
Council’s strategic direction for the community. • Statement of Cash Flow, Statement of Capital Works
The key resourcing objectives, which underpin the • Statement of Human Resources
Strategic Resource Plan, are:
Council has also been mindful of the need to comply
• ensuring recurrent expenditure is managed with the following principles of sound financial
prudently to ensure Council’s long-term financial management as contained in the Act:
sustainability
• prudently manage financial risks relating to debt,
• rolling out a Capital Works program that meets assets and liabilities
community needs
• provide reasonable stability in the level of rate
• managing staff levels at sustainable levels burden
• delivering Council services effectively and efficiently • consider the financial impacts of Council decisions
within the ‘rate cap’ environment on future generations
• ensuring asset renewal at a rate which works • provide full, accurate and timely disclosure of
towards closing the ‘infrastructure gap’ financial information.
22 ARARAT RURAL CITY COUNCIL PLANCOMPREHENSIVE
INCOME STATEMENT
For the four years ending 30 June 2024
Forecast Budget Strategic Resource Plan
Actual Projections
2019/20 2020/21 2021/22 2022/23 2023/24
$’000 $’000 $’000 $’000 $’000
Income
Rates and charges 17,742 17,702 18,056 18,417 18,785
Statutory fees and fines 190 176 180 184 188
User fees 1,349 1,654 1,704 1,755 1,808
Grants - Operating 5,222 7,617 7,655 7,693 7,731
Grants - Capital 6,484 4,086 795 795 795
Contributions - monetary 545 93 10 10 10
Net gain/(loss) on disposal of property,
infrastructure, plant and equipment 64 48 50 52 54
Other income 380 325 332 339 346
Total income 31,976 31,701 28,782 29,245 29,717
Expenses
Employee costs 11,551 12,077 12,319 12,565 12,816
Materials and services 9,744 7,620 7,007 7,196 7,254
Depreciation 8,610 6,888 6,957 7,027 7,097
Borrowing costs 126 118 56 17 12
Other expenses 314 337 347 357 368
Total expenses 30,345 27,040 26,686 27,162 27,547
Surplus/(deficit) for the year 1,631 4,661 2,096 2,083 2,170
Total comprehensive result 1,631 4,661 2,096 2,083 2,170
ARARAT RURAL CITY COUNCIL PLAN 23BALANCE SHEET
For the four years ending 30 June 2024
Forecast Budget Strategic Resource Plan
Actual Projections
2019/20 2020/21 2021/22 2022/23 2023/24
$’000 $’000 $’000 $’000 $’000
Assets
Current assets
Cash and cash equivalents 13,211 11,168 9,579 9,896 10,213
Trade and other receivables 2,035 2,035 2,035 2,035 2,035
Inventories 63 63 63 63 63
Other assets 3 3 3 3 3
Total current assets 15,312 13,269 11,680 11,997 12,314
Non-current assets
Trade and other receivables 16 14 12 10 9
Property, infrastructure, plant & equipment 230,967 237,539 239,087 240,713 242,419
Investment property 1,321 1,321 1,321 1,321 1,321
Total non-current assets 232,304 238,874 240,420 242,044 243,749
Total assets 247,616 252,143 252,100 254,041 256,063
Liabilities
Current liabilities
Trade and other payables 1,270 1,270 1,270 1,270 1,270
Trust funds and deposits 2,000 2,000 2,000 2,000 2,000
Provisions 2,606 2,606 2,606 2,606 2,606
Interest-bearing liabilities 134 2,139 142 148 150
Total current liabilities 6,010 8,015 6,018 6,024 6,026
Non-current liabilities
Provisions 286 286 286 286 286
Interest-bearing liabilities 2,736 597 455 307 157
Total non-current liabilities 3,022 883 741 593 443
Total liabilities 9,032 8,898 6,759 6,617 6,469
Net assets 238,584 243,245 245,341 247,424 249,594
Equity
Accumulated surplus 83,379 90,110 93,795 95,561 97,414
Reserves 155,205 153,135 151,546 151,863 152,180
Total equity 238,584 243,245 245,341 247,424 249,594
24 ARARAT RURAL CITY COUNCIL PLANSTATEMENT OF CHANGES IN EQUITY
For the four years ending 30 June 2024
Accumulated Revaluation Other
Total Surplus Reserve Reserves
$’000 $’000 $’000 $’000
2020 Forecast Actual
Balance at beginning of the financial year 238,732 75,610 145,293 17,829
Impact of adoption of new accounting standards 1,779 1,779 - -
Adjusted opening balance 236,953 73,831 145,293 17,829
Surplus/(deficit) for the year 1,631 1,631 - -
Transfers to other reserves - (710) - 710
Transfers from other reserves - 8,627 - (8,627)
Balance at end of the financial year 238,584 83,379 145,293 9,912
2021 Budget
Balance at beginning of the financial year 238,584 83,379 145,293 9,912
Surplus/(deficit) for the year 4,661 4,661 - -
Transfers to other reserves - (603) - 603
Transfers from other reserves - 2,673 - (2,673)
Balance at end of the financial year 243,245 90,110 145,293 7,842
2022
Balance at beginning of the financial year 243,245 90,110 145,293 7,842
Surplus/(deficit) for the year 2,096 2,096 - -
Transfers to other reserves - (411) - 411
Transfers from other reserves - 2,000 - (2,000)
Balance at end of the financial year 245,341 93,795 145,293 6,253
2023
Balance at beginning of the financial year 245,341 93,795 145,293 6,253
Surplus/(deficit) for the year 2,083 2,083 - -
Transfers to other reserves - (317) - 317
Balance at end of the financial year 247,424 95,561 145,293 6,570
2024
Balance at beginning of the financial year 247,424 95,561 145,293 6,570
Surplus/(deficit) for the year 2,170 2,170 - -
Transfers to other reserves - (317) - 317
Balance at end of the financial year 249,594 97,414 145,293 6,887
ARARAT RURAL CITY COUNCIL PLAN 25STATEMENT OF CASH FLOWS
For the four years ending 30 June 2024
Forecast Budget Strategic Resource Plan
Actual Projections
2019/20 2020/21 2021/22 2022/23 2023/24
$’000 $’000 $’000 $’000 $’000
Inflows Inflows Inflows Inflows Inflows
(Outflows) (Outflows) (Outflows) (Outflows) (Outflows)
Cash flows from operating activities
Rates and charges 17,742 17,702 18,056 18,417 18,785
Statutory fees and fines 190 176 180 184 188
User fees 1,484 1,819 1,874 1,931 1,989
Grants - operating 5,222 7,617 7,655 7,693 7,731
Grants - capital 6,484 4,086 795 795 795
Contributions - monetary 545 93 10 10 10
Interest received 256 202 206 210 214
Other receipts 124 123 126 129 132
Net GST refund / payment 839 597 530 544 545
Employee costs (11,551) (12,077) (12,319) (12,565) (12,816)
Materials and services (10,718) (8,382) (7,707) (7,916) (7,980)
Other payments (314) (337) (347) (357) (368)
Net cash provided by/(used in)
operating activities 10,303 11,619 9,059 9,075 9,225
Cash flows from investing activities
Payments for property, infrastructure, plant
and equipment (16,454) (13,648) (8,701) (8,857) (9,016)
Proceeds from sale of property,
infrastructure, plant and equipment 320 238 248 258 268
Net cash provided by/ (used in)
investing activities (16,134) (13,410) (8,453) (8,599) (8,748)
Cash flows from financing activities
Finance costs (126) (118) (56) (17) (12)
Repayment of borrowings (158) (134) (2,139) (142) (148)
Net cash provided by/(used in)
financing activities (284) (252) (2,195) (159) (160)
Net increase/(decrease) in cash
& cash equivalents (6,115) (2,043) (1,589) 317 317
Cash and cash equivalents at the
beginning of the financial year 19,326 13,211 11,168 9,579 9,896
Cash and cash equivalents at the
end of the financial year 13,211 11,168 9,579 9,896 10,213
26 ARARAT RURAL CITY COUNCIL PLANSTATEMENT OF CAPITAL WORKS
For the four years ending 30 June 2024
Forecast Actual Budget Strategic Resource Plan
Projections
2019/20 2020/21 2021/22 2022/23 2023/24
$’000 $’000 $’000 $’000 $’000
Property
Buildings 3,064 910 928 947 966
Total property 3,064 910 928 947 966
Plant and equipment
Plant, machinery and equipment 949 865 865 865 865
Fixtures, fittings and furniture 25 60 61 62 63
Library books 40 40 40 40 40
Total plant and equipment 1,014 965 966 967 968
Infrastructure
Roads 9,509 10,995 6,013 6,133 6,256
Bridges 2,421 325 332 339 346
Footpaths and cycleways 256 160 163 166 169
Drainage 190 293 299 305 311
Total infrastructure 12,376 11,773 6,807 6,943 7,082
Total capital works expenditure 16,454 13,648 8,701 8,857 9,016
Represented by:
New asset expenditure 766 303 232 237 242
Asset renewal expenditure 12,300 10,645 6,985 7,106 7,230
Asset upgrade expenditure 3,388 2,700 1,484 1,514 1,544
Total capital works expenditure 16,454 13,648 8,701 8,857 9,016
Funding sources represented by:
Grants 5,090 4,086 795 795 795
Grants from prior year 1,472 41 - - -
Contributions 390 - - - -
Asset sales 320 238 248 258 268
Council reserves 1,507 2,327 - - -
Council operations 7,675 6,956 7,658 7,804 7,953
Total capital works expenditure 16,454 13,648 8,701 8,857 9,016
ARARAT RURAL CITY COUNCIL PLAN 27STATEMENT OF HUMAN RESOURCES
For the four years ending 30 June 2024
A summary of human resources expenditure categorised according to the organisational structure of Council is included below:
Forecast Actual Budget Strategic Resource Plan
Projections
2019/20 2020/21 2021/22 2022/23 2023/24
$’000 $’000 $’000 $’000 $’000
Staff expenditure
Employee costs 11,551 12,077 12,319 12,565 12,816
Total staff expenditure 11,551 12,077 12,319 12,565 12,816
FTE FTE FTE FTE FTE
Staff numbers
Employees 137.3 136.4 136.4 136.4 136.4
Total staff numbers 137.3 136.4 136.4 136.4 136.4
A summary of human resources expenditure categorised according to the organisational structure of Council is included below:
Comprises
Budget
2020/21 Full time Part Time Casual
Department $’000 $’000 $’000 $’000
Planning, Community & Compliance 3,440 1,415 1,342 683
Arts, Culture & Heritage 739 447 118 174
Infrastructure 4,916 4,734 95 87
Corporate Services 576 350 226 -
CEO's Office 1,404 1,124 215 65
Governance 191 191 - -
Business Transformation 811 711 100 -
Total expenditure 12,077 8,972 2,096 1,009
A summary of the number of full time equivalent (FTE) Council staff in relation to the above expenditure is included below:
Budget Comprises
2020/21 Full time Part Time Casual
Department FTE FTE FTE FTE
Planning, Community & Compliance 38.5 14.0 15.1 9.4
Arts, Culture & Heritage 8.4 5.0 1.6 1.8
Infrastructure 60.5 58.0 1.5 1.0
Corporate Services 5.7 4.0 1.7 -
CEO's Office 12.0 9.0 2.5 0.5
Governance 2.0 2.0 - -
Business Transformation 9.3 8.0 1.3 -
Total staff 136.4 100.0 23.7 12.7
28 ARARAT RURAL CITY COUNCIL PLANFINANCIAL PERFORMANCE INDICATORS
The following table highlights Council’s current and projected performance across a range of key financial performance
indicators. These indicators provide a useful analysis of Council’s financial position and performance and should be
interpreted in the context of the organisation’s objectives.
Actual Forecast Budget Strategic Resource Trend
Indicator Measure Plan Projections
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 +/o/-
Adjusted Adjusted underlying -3.8% -12.6% 13.0% 7.3% 7.1% 7.3% -
underlying surplus (deficit)/Adjusted
result underlying revenue
Liquidity
Working Current assets / current 421.7% 254.8% 165.6% 194.1% 199.2% 204.3% +
Capital liabilities
Unrestricted Unrestricted cash /
cash current liabilities 337.9% 186.5% 114.4% 125.9% 131.1% 136.3% +
Obligations
Loans and Interest bearing loans 17.8% 16.2% 15.5% 3.3% 2.5% 1.6% +
borrowings and borrowings / rate
revenue
Loans and Interest and principal 0.8% 1.6% 1.4% 12.2% 0.9% 0.9% o
borrowings repayments on interest
bearing loans and
borrowings / rate revenue
Indebtedness Non-current liabilities /
own source revenue 16.6% 15.4% 4.4% 3.7% 2.9% 2.1% +
Asset renewal Asset renewal and
and upgrade upgrade expenses / 111.9% 182.2% 193.7% 121.7% 122.7% 123.6% -
Asset depreciation
Stability
Rates Rate revenue / adjusted 59.0% 64.7% 61.6% 62.5% 62.4% 62.6% o
concentration underlying revenue
Rates effort Rate revenue / CIV of 0.7% 0.6% 0.6% 0.5% 0.5% 0.5% o
rateable properties in the
municipality
Efficiency
Expenditure Total expenses/ no. of $4,212 $4,230 $3,770 $3,665 $3,676 $3,672 +
level property assessments
Revenue level General Rates and
Municipal Charges/ $1,983 $2,087 $2,070 $2,078 $2,008 $2,098 +
Number of property
assessments
Workforce No. of permanent
turnover staff resignations & 15.3% 11.7% 11.9% 8.9% 8.9% 8.9% o
terminations / average
no. of permanent staff for
the financial year
ARARAT RURAL CITY COUNCIL PLAN 29FINANCIAL PERFORMANCE INDICATORS
KEY TO FORECAST TREND
+ Forecasts improvement in Council's financial performance/financial position indicator
o Forecasts that Council's financial performance/financial position indicator will be steady
- Forecasts deterioration in Council's financial performance/financial position indicator
NOTES TO INDICATORS
1. Adjusted underlying result
An indicator of the sustainable operating result required to enable Council to continue to provide core services and
meet its objectives. Rate Capping will continue to have a significant impact on Council’s financial performance over the
period, with continued pressure to find savings each year in order to maintain the current levels of service. The adjusted
underlying result calculation includes recurrent capital funding such as Roads to Recovery funding. The adjusted
underlying surplus for the next four years is expected to be approximately 7% each year.
2. Working Capital
The proportion of current liabilities represented by current assets. Working capital is forecast to decrease in 2020/21 as
Council transfers funds from Reserves to pay for capital works.
3. Unrestricted Cash
Councils cash and cash equivalents are subject to external restrictions that limit amounts available for discretionary use,
which includes trust funds and deposits. This indicator measures the proportion of current liabilities represented by
unrestricted cash.
4. Debt compared to rates
Trend reflects the $1 million loan taken up in 2018/19 to complete the Ararat Performing Arts Centre and the $2 million
interest only loan using the Local Government Funding Vehicle to fund the Alexandra Oval Community Centre which is
due to be repaid in 2021/22.
5. Asset renewal and upgrade
This percentage indicates the extent of Council's renewal and upgrade of assets against its depreciation charge (an
indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is
maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are
being renewed and upgraded and future capital expenditure will be required to renew and upgrade assets. The total
capital works program for 2020/21 is $13.648 million compared with a forecast of $16.454 million in 2019/20.
6. Rates concentration
Reflects extent of reliance on rate revenues to fund all of Council's on-going services. This indicator proves Council relies
heavily on rates as a source of income. The trend indicates Council will become more reliant on rate revenue compared
to all other revenue sources. Rate capping has restricted Council’s capacity to raise income at an appropriate level to
fund Council’s operations.
30 ARARAT RURAL CITY COUNCIL PLANLIST OF FUNDING SOURCES IN RELATION TO THE
PLANNED CAPITAL WORKS EXPENDITURE
A summary of the funding sources in relation to the planned capital works expenditure, classified separately as to grants,
contributions, Council cash and borrowings is included below:
Capital Works Area Project Asset Expenditure Types Summary of Funding
Cost Sources
New Renewal Upgrade Grants Asset Council Council
sales operations reserves
$’000 $’000 $’000 $’000 $’000 $'000 $'000 $'000
PROPERTY
Buildings
Ararat Active Link Stage 2 200 200 - - 49 - - 151
Ararat on the Move - Events/ Visitor Space 450 - 270 180 117 - - 333
Female Facilities Willaura Rec Reserve 200 - 150 50 - - - 200
Structural Works - Rural Halls 20 - 20 - - - 20 -
Minor Building Works 40 - 40 - - - 40 -
TOTAL PROPERTY 910 200 480 230 166 - 60 684
PLANT AND EQUIPMENT
Plant, Machinery and Equipment
Global Vehicle Purchases 220 - 220 - - 100 120 -
Global Major Plant Purchases 645 645 138 507
Fixtures, Fittings and Furniture
Server Purchases 25 - 25 - - - 25 -
Parking Meters 35 - 35 - - - 35 -
Library books
Bookstock 40 - 40 - - - 40 -
TOTAL PLANT AND EQUIPMENT 965 - 965 - - 238 727 -
ARARAT RURAL CITY COUNCIL PLAN 31LIST OF FUNDING SOURCES IN RELATION TO THE PLANNED CAPITAL WORKS EXPENDITURE Capital Works Area Project Asset Expenditure Types Summary of Funding Cost Sources New Renewal Upgrade Grants Asset Council Council sales operations reserves $’000 $’000 $’000 $’000 $’000 $'000 $'000 $'000 INFRASTRUCTURE Roads Resheeting Works 1,000 - 1,000 - - - 1,000 - Reseal Works 1,405 - 1,405 - - - 1,405 - Major Patching 250 - 250 - - - 250 - Heath Street 800 - 640 160 500 - - 300 Woorndoo-Streatham Road 1,967 - 1,377 590 980 - 644 343 Darlington-Carranballac Road 558 - 390 168 500 - 58 - Tatyoon Road 3,110 - 2,177 933 1,150 - 960 1,000 Truscott Street 376 - 301 75 376 - - - Baird Street 154 - 123 31 - - 154 - Willaura-Wickliffe Road 1,375 - 962 413 455 - 920 - Bridges Bridge Strengthening 75 - 65 10 - - 75 - Major Culvert Renewal 100 - 80 20 - - 100 - Excavate and Relay Culverts 150 - 150 - - - 150 - Footpaths and Cycleways Footpath Connections 60 60 - - - - 60 - Condition Assessment Program 100 - 80 20 - - 100 - Drainage Drainage Renewal Works 250 - 200 50 - - 250 - Mininera Recreation Reserve Drainage 43 43 - - - - 43 - TOTAL INFRASTRUCTURE 11,773 103 9,200 2,470 3,961 - 6,169 1,643 TOTAL NEW CAPITAL WORKS 13,648 303 10,645 2,700 4,127 238 6,956 2,327 32 ARARAT RURAL CITY COUNCIL PLAN
SUMMARY OF CAPITAL WORKS
Forecast Actual Budget Change
2019/20 2020/21
$’000 $’000 $’000 %
Property 3,064 910 (2,154) -70.30%
Plant and equipment 1,014 965 (49) -4.83%
Infrastructure 12,376 11,773 (603) -4.87%
Total 16,454 13,648 (2,806) -17.05%
ARARAT RURAL CITY COUNCIL PLAN 33CONTACTING COUNCIL Postal Address: Ararat Rural City Council PO Box 246 Ararat 3377 Telephone: 03 5355 0200 Fax: 03 5355 1695 Email: council@ararat.vic.gov.au Website: www.ararat.vic.gov.au Customer Centre: Municipal Offices Cnr Vincent and High Streets Ararat 3377
DoW os] Hi Tim I seek further detail or explanation of the following points in the Council Draft Budget and Council Draft Plan as follows: Draft Budget 1 Oneof the significant external influencesis the Ongoing cost shifting. This occurs where Local Government providesa service to the community on behalf of the State and Federal Government. Over time the funds received by local governments do notincrease in line with real cost increases. Howis this being addressed by Council to State and federal funding sources andis there a responsible Officer nominated for this importantactivity? Additionally, is there a nominated responsible officer for the promotion of Ararat as a regional centre and its associated tourist activities? 2 Section 2.5 Service performance. Unlike many Councils Ararat does not appear to have a composting program utilising the kerbside green waste — with the resulting product available for purchase by residents 3 MajorInitiatives has a reference to the Ararat Digital Transformation project — can this be expanded with a reference document explaining the Project and its expected outcome. 4 A MajorInitiative is described as “Actively engage in promoting renewable energy options for the municipality” I cannot locate further detailed reference or objectives forthis initiative, please advise The Draft Council plan 1 Rates increase appears to be some 5% pain future years — is this correct given the State Gov capping? 2 Is there a revenue projection /return on the Major investment for the Town hall Regional performing Arts Centre, and the Ararat regional Art Gallery?. Also, the events “Ararat on the move” I note the significant losses these items continue to accrue at a rate of some $800,000 pais there a plan to recover from this ? 3 Underthe section “Comprehensive Income Statement’””» DEPRECIATION showsan increase in the years 2022/23 and 2023/24 whyis this? 4 There are two items that I seek further breakdown,they are A BORROWING COSTS actual $126,000 against budget of $118,000 whatinterest rate is being paid ? B OTHER EXPENSES a significant $314,000 against budget of $337,000 5 Underthe Section “Statement of Changes in Equity” The Council has a rolling strategic reserve of some $240,000 pa is this a prudent approach given the low interest rates and margin for borrowings? 6 Underthe section “Statement of cash Flows” Cash flows from Financing activities, an Investment activity showssignificant differences between budget and actuals, can you elaborate on the discrepancies here? 7 Under Statement of capital works 8 Please advise the season for the significant drop in Grants over the planning period? Kind regards Mike Russell
Qo\\ Uo3&
igs (20
Cr Jo Armstrong
Mayor
Ararat Rural City Council
59 Vincent Street
ARARAT, VIC 3377
By email: jarmstrong@ararat.vic.gov.au
18 May 2020
Dear Cr Armstrong,
RE: 2020/21 Draft Budget - Farm Rates
Victorian agriculture cannot be expected to shoulder an even greater rating burden as we work to
help rebuild the state’s economyin the wake of COVID-19.
That’s why | am writing to all Victorian local government councils to encourage a fair and balanced
rating strategy, and to extend an invitation to partner with the Victorian Farmers Federation (VFF) in
advocating for an overhaul to Victoria’s rating system.
The VFF recognises the difficult position councils face when it comes to the resources available to
them to develop a fair rating strategy. Victoria’s rating system has created the situation whereby
regional and rural ratepayers pay morein rates as a percentage of the value of their property than
ratepayers in metropolitan Melbourne.
What’s more,regional and rural ratepayers often receive and have access to fewerservices from
local government than ratepayersin the city.
The VFF is deeply concerned aboutthe inequities that all regional and rural ratepayers face, not just
farmers. Changes must be made to the state’s rating strategy in the long term and we would
welcome the opportunity to work with Ararat Rural City Council to advocate for reform.
However, our expectation remains that all councils will put forward a fair and equitable rating
strategy this year, particularly in light of recent drought conditions, the bushfires and the COVID
pandemic.
The VFF constantly monitors and reports on the rates set by all local government councils to
promotefair rating strategies and to actively campaign against unfair and inequitable rate hikes.
The VFFwill be vocal in calling out councils that unfairly shift the rating burden onto farmers and
the agricultural sector, whilst acknowledging and publicly commending councils that strike balance
in their rating strategy.The current model of using land valuations for striking rates, places undue financial stress on farming businesses as the value attributed to farm land does not reflect farm businesses’ revenue generation nor capacity to pay. Differential rates were introduced as a tool for councils to address equity issues arising from the land valuation method of determining rates. The fundamental principle should be that as the value of farmland increases, the differential rate is adjusted to reduce the rate in the dollar so that the rate burden paid by the farm sector remains stable. The VFF expects that Ararat Rural City Council will use the mechanisms it has available to maintain a balanced rating strategy. The VFF is very happy to meet with your council to discuss your rating plans for 2020/21 and how we may work together to advocate for long term reform. To discuss further, Yours sincerely, Oe ~ David Jochinke President Victorian Farmers Federation cc: Dr Tim Harrison, Chief Executive Officer, Ararat Rural City Council
2o\\4 038
2b|slao
Neil Manning
Mayor and CEO,
Ararat Rural City Council
Submission to the 2020-21 Budget
| commend Council on introducing a 1% reduction of budget. It is appropriate and timely given the
severity of the Covid 19 economic downturn.
However, the decision to further change the rates burden to further advantage the Farm sector is
extremely short-sighted and will further compound Covid 19 economic downturn on the
Business/Industrial sector. The rates differential is meant to be fluid and change with changing
economic influences. It is meant to provide a lever for Council to influence economic outcome for
the benefit of the whole economyof Ararat.
| note the justification provided by Council to lower the Farm sector differential to 47% of the
General rate is to cap the total proportion of rates levied from the Farm sector to the proportion
that has been levied in the immediate past several rates cycles. This is a difficult argument to sustain
given the affect on the community by Covid 19. Covid 19 is the biggest shock to the economysince
the 1990’s recession and is projected to severely affect the economywell into the future.
The decision to take the Farm sector to 47% of the General rate does not take into account which
sectors of the community are affected most by the economic downturn Covid 19 has inflicted. It is
hard to argue that the Farm sector is more affected than the Business/ Industrial sector. The Farm
sector in Ararat is undeniably better off than the Business/Industrial sector. Diesel is the lowest price
in decades, there has been undeniable good rains and sound produceprices. There is no justification
to continue the down would trajectory of the rates differential to 47%.
On the other hand, the severity of Covid 19 effect on Business/ Industrial is acknowledged
nationwide. You only have to see the empty shops,for sale and for lease signs in Barkly St to realise
something has to be done to encourage business back into the municipality. Businesses are going to
the wall and people arelosing their jobs andlivelihood.
| request that Council recasts the budget to give immediate rates relief to Business/Industrial sector
through the rates differential system. | ask that the Business/ Industrial sector rates differential be
lowered from 125% to that of the General rate and Farm sector differential rate be adjusted for the
balance.
| request to speak to my submission.
Neil Manning2o0\\4o38
or\ob (20
Darren Ford
Chief Executive Officer
Ararat Rural City Council
PO Box 246
Ararat 3377 council@ararat.vic.gov.au.
Re: Draft Budget 2020/2021
DearSir,
It is my view that differential rates are there to moderate impacts on
Ratepayers according to need, equity, and fairness.
I accuse the current Councillors of applying differential rates in exactly the
wrong direction knowingthat they are causing unreasonable hardship to the
Town. They are howeverprotecting the advantage given to the few and not
being attacked by the VFF — is this the happy Council we sought — I think
we should be very concerned?
AlthoughI think the Minister for Local Government Adem Somyurek
should be made aware of Ararat’s draft budget and the VFF’s influence, I
am not requesting intervention,yet.
Instead I would appeal, and give every opportunity to the Councillors to
moderate their draft decision whenit is clear that differential rates are being
misused upon the vulnerable people of the Town who have no democratic
voice that can be heard.
I urge the Councillors to take this olive branch and do some good for the
people who elected you.
I wish to present my submission to Council.
Yours sincerely
Darren Ford.
Former Ararat CouncillorYou can also read
