Gawler 2012-13 Annual Report - page 57

Page 57
Town of Gawler Annual Report 2012/13
Performance Summary
Achievements for 2012/13
Financial performance
The operating result for the 2012/13 financial year was
a deficit of $120,000 which was substantially less than
the adopted budget forecast result of $2.559M.
Consequently, Council has successfully eliminated
its recurrent operating deficits of nearly $3m (which
occurred in the 2009/10 and 2010/11 financial years)
within the space of two financial years.
This result has ensured that the Council’s recurrent
financial operations have returned to a financially
sustainable basis.
Comparative performance (for the 2011/12 financial
year)
Using historical data sourced from the SA Local
Government Grants Commission, the Council
continued to compare its financial performance with
nine other similar Councils (the most recent available
data being as at 30 June 2012).
Key findings included:
• Gawler achieved the second highest favourable
movement in its operating result (reduction of $2M);
• Gawler was one of only two Councils that reduced
its net debt;
• Gawler’s 20% reduction in its Net Financial Liabilities
ratio was the largest of any Council, although
Gawler’s ratio result is still relatively high by
comparison to other Councils.
Financial reporting
Council continued its financial reporting regime of
providing monthly Finance Reports outside of the
Quarterly Budget Review cycle. The Quarterly Budget
Reviews (prepared as at the end of October, January
and April each financial year) were enhanced from
October 2012 to include analysis of various non-
financial data relating to a range of services.
Strategic Rating Review
Following the comprehensive rating review undertaken
during the 2011/12 financial year, which incorporated
two rounds of public consultation and considerable
public feedback, Council adopted a revised Strategic
Rating Policy in June 2012 for application from the
2012/13 financial year.
The key rating changes, incorporated in the revised
policy, were the disbandment of the Car Parking
Separate Rate (which had previously been levied
since 2011 against commercial properties in the Town
Centre) and the introduction of an innovative ‘tiered’
general rating system for all commercial and industrial
properties. The ‘tiered’ rating structure, which operates
similar to a progressive tax system, was designed
such that low-valued commercial and industrial
properties are effectively levied a lower net rate in the
dollar when compared to high valued properties.
This approach culminated in an immediate 20-
30% rate reduction for low-valued commercial
properties within the Town Centre, as distinct from
high-valued commercial properties. These were
levied with a higher net rate in the dollar based on
their considerably enhanced capacity to pay when
compared to small local businesses. However, to
minimise the impact on properties adversely affected
by the introduction of the ‘tiered’ rating structure,
Council capped the rate increase for such properties
to no more than 25%.
Organisational restructure
Another significant change made at Council was an
organisation review which provided a flatter reporting
structure. This has resulted in five Divisions comprising
the Development, Environment and Regulatory Services,
Infrastructure and Engineering Services, Library and
Community Services, Finance and Corporate Services
and the Chief Executive Officer’s Unit.
Review operations of the Waste and Recycling
Transfer Station
In October 2012 a review of the Waste and Recycling
Transfer Station (WRTS) was completed. The
comprehensive review identified declining use, a
reduction in tonnes managed, increasing costs,
ongoing losses and the need for a significant capital
upgrade to meet legislative requirements. Based on
the results of the review, ongoing future cost pressures
faced within the waste management industry and the
need to act in a fiscally responsible manner the WRTS
was closed in February 2013.
View table and figures
relating to the waste management on page 60.
An alternative service was provided by the newly
opened Northern Adelaide Waste Management
Authority (NAWMA) Resource Recovery Centre. The
NAWMA facility provides superior services and many
at a reduced cost. Council assisted Gawler residents
to use the NAWMA facility by providing a 10% discount
to 30 June 2013.
introduction • summary •
strategic directions
• statutory information • index
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