IPWEA Vic CONFERENCE 21 April 2016 SERVICE PLANNING

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IPWEA Vic CONFERENCE 21 April 2016 SERVICE PLANNING AND COMMUNITY ENGAGEMENT

IPWEA Vic CONFERENCE 21 April 2016 SERVICE PLANNING AND COMMUNITY ENGAGEMENT

Scope and Strategy

Scope and Strategy

Q and A • How many services does Council provide? • What are the

Q and A • How many services does Council provide? • What are the top 5 priority services? • What is the required expenditure reduction in Council arising from rate capping? • How will Council make comparative choices between services? • Reduce levels of service or reduce capital? • What is the strategy to engage the community? • What is the end game – open government? © CT Management Group Pty Ltd 2016

What outcomes does Council want? What outcomes do the community want? Simplified Strategic Framework

What outcomes does Council want? What outcomes do the community want? Simplified Strategic Framework VISION SERVICES ASSETS What assets are required to support the services? MANAGEMENT © CT Management Group Pty Ltd 2016 What services are required to meet the vision? What are the best management practices?

VISION Community Planning Community Engagement SERVICES Influences Service Planning ASSETS Levels of Service LTFP

VISION Community Planning Community Engagement SERVICES Influences Service Planning ASSETS Levels of Service LTFP SRP Budget Financial Sustainability People are becoming: • More connected; • More informed; • Less willing to accept other people’s choices; and • Want to be more involved. © CT Management Group Pty Ltd 2016 MANAGEMENT

Capacity to deliver services in a revenue constrained environment How do we decide? Discretionary

Capacity to deliver services in a revenue constrained environment How do we decide? Discretionary Services “like to do” Efficiency Gains All Services The Value of our Spend $ Business as Usual Preferred Services “should do” Mandatory Services “must do” PAGE 6 © CT Management Group Pty Ltd 2016 Time

Council’s future service model Customer Choice 2. Facilitates a network of service delivery options

Council’s future service model Customer Choice 2. Facilitates a network of service delivery options 1. Council determines what should be provided and how based on local priorities. Council’s traditional service model © CT Management Group Pty Ltd 2016 ns fo rm Co at n t io inu n C um ha n 3. Promotes and regulates a ‘market’ of service providers reflecting the preferences of users through community groups ge 4. Facilitate a ‘market’ of service providers to meet preferences of individual users Tr a Customer Focused Service Delivery- the end game? Consumer determines their own spending priorities based on need within financial constraints. Under threat as revenue growth becomes constrained Acknowledgement: Prof Helen Sullivan, Melbourne University – FOLG Conference 2015

Financial Challenges – LG sector

Financial Challenges – LG sector

Council Finances © CT Management Group Pty Ltd 2016

Council Finances © CT Management Group Pty Ltd 2016

Rate Capping Impact • Most Councils lose 1 years rate revenue in 10. •

Rate Capping Impact • Most Councils lose 1 years rate revenue in 10. • What is your Council’s position? PAGE 10 © CT Management Group Pty Ltd 2016

Councils response to Rate Capping © CT Management Group Pty Ltd 2016 • 17

Councils response to Rate Capping © CT Management Group Pty Ltd 2016 • 17 Councils reduced future rate increase to less than 3% • Remaining Councils retained rate increases into the future (Average ~5%) – How will your Council manage the reduced income? • Services or Assets; or • Good Management

Salaries and Wages Average Salary increase next 4 years (pa) 4. 2% Salary cost

Salaries and Wages Average Salary increase next 4 years (pa) 4. 2% Salary cost as a percentage of Rate Income 61. 6% Rate Increase required to cover Salary Increases (p. a. ) 2. 6% © CT Management Group Pty Ltd 2016

Capital Works Renewal New, Upgrade, Expansion Total Capital Works 2015/16 Budget ($, 000) $1,

Capital Works Renewal New, Upgrade, Expansion Total Capital Works 2015/16 Budget ($, 000) $1, 088, 874 $1, 268, 032 $2, 356, 906 Property Plant and Equipment Depreciation $74, 403, 808 $1, 340, 033 Depreciation Rate Operations & Maintenance Costs 1. 80% 1. 20% Additional Expense - New CW Depreciation Additional Expense - New CW O & M Rate & Charges Income Percentage of Rates – New Cap Works Total Percentage of Rates – New Cap Works & Salaries © CT Management Group Pty Ltd 2016 $22, 824 $15, 216 $5, 202, 833 0. 73% 3. 33%

Financial Sustainability Assessment © CT Management Group Pty Ltd 2016 Services (? ? )

Financial Sustainability Assessment © CT Management Group Pty Ltd 2016 Services (? ? ) LTFP Assets (AM Plans Renewal Programs CW Programs)

Expenditure Management Capital Works Evaluation and Asset Management Business Process Improvement PAGE 15 ©

Expenditure Management Capital Works Evaluation and Asset Management Business Process Improvement PAGE 15 © CT Management Group Pty Ltd 2016 Service Planning

Essential Services Commission

Essential Services Commission

Rate Cap Variation (ESC) Councils can apply for a variation to the rate cap,

Rate Cap Variation (ESC) Councils can apply for a variation to the rate cap, but need to address : § The reason a variation from the cap is required; § Whether the application takes account of ratepayer and community views; § Whether the variation represents good value-for-money and is an efficient response to the budget requirement; § Whether service priorities and funding options have been considered; and § Whether the proposal is integrated into the Council's long term strategy. © CT Management Group Pty Ltd 2016

Engagement Principles (ESC) • Principle 1 - The engagement program must contain clear, accessible

Engagement Principles (ESC) • Principle 1 - The engagement program must contain clear, accessible and comprehensive information and follow a timely process to engender feedback from the community • Principle 2 - The engagement program should be ongoing and tailored to community needs • Principle 3 - The engagement program should prioritise matters of significance and impact • Principle 4 - The engagement program should lead to communities becoming more informed about council decision-making © CT Management Group Pty Ltd 2016

Service Planning

Service Planning

Key Outcomes • Define the current range of services • Define the current levels

Key Outcomes • Define the current range of services • Define the current levels of service • Ascertain the true cost of each service • Service costs linked to LTFP • Financially sustainable service driven organisation © CT Management Group Pty Ltd 2016

Sustainable Service Delivery © CT Management Group Pty Ltd 2016 Key questions: • What

Sustainable Service Delivery © CT Management Group Pty Ltd 2016 Key questions: • What are the current services that Council provides to the community? • Is the current service delivery model sustainable? • Is Council delivering the most appropriate services to the community within its financial capacity? • Is Council delivering these services in the most efficient manner?

Service Planning Information LTFP drives Services drive LTFP Services Capital Works (New/Upgrade) Asset Renewal

Service Planning Information LTFP drives Services drive LTFP Services Capital Works (New/Upgrade) Asset Renewal LTFP 0 1 5 YEARS © CT Management Group Pty Ltd 2016 10 15

COUNCIL PLAN Service Planning Fit Service Strategies Service Plan Reviews Financial Sustainability Service Management

COUNCIL PLAN Service Planning Fit Service Strategies Service Plan Reviews Financial Sustainability Service Management Strategic Resource Plan Service Planning Service Summaries Long Term Financial Plan Service Comparative Choice Evaluation Service Operations Capital Works (New, Upgrade, Expansion) Capital Works Evaluation AMP (Roads) Capital Works Program Asset Management AMP (Drainage) AMP (Buildings) AMP (Bridges) AMP (Open Space) © CT Management Group Pty Ltd 2016 Capital Works (Renewal) Infrastructure Operations & Maintenance

Revenue / Expenditure © CT Management Group Pty Ltd 2016

Revenue / Expenditure © CT Management Group Pty Ltd 2016

Service Planning Stage 1 Later Stage Detailed Service Plan for each Service (Operational Level)

Service Planning Stage 1 Later Stage Detailed Service Plan for each Service (Operational Level) PAGE 25 © CT Management Group Pty Ltd 2016 Later Stage - Service Reviews (Efficiency) Statutory Planning Other Services Aged Services Other Services Aerodrome Management Children’s Services Regulatory Services Children’s Services Environmenta l Health Youth Services Environmental Health Youth Services Road Maintenance ICT Road Maintenance s e c i v r e S l i c n u o C l l A ICT Parks Stage 1 - Summary Service Profile for each Service (Tactical Level) Parks Stage 1 - Capture Knowledge for a Comparative Choice (Relative Importance) and Sustainability Assessment

Scoring Assessment - Council © CT Management Group Pty Ltd 2016

Scoring Assessment - Council © CT Management Group Pty Ltd 2016

Scoring Assessment - Community © CT Management Group Pty Ltd 2016

Scoring Assessment - Community © CT Management Group Pty Ltd 2016

Service Profiles PAGE 28 © CT Management Group Pty Ltd 2016

Service Profiles PAGE 28 © CT Management Group Pty Ltd 2016

10 Year Service Costs © CT Management Group Pty Ltd 2016

10 Year Service Costs © CT Management Group Pty Ltd 2016

Service Scoring © CT Management Group Pty Ltd 2016

Service Scoring © CT Management Group Pty Ltd 2016

Sustainability Assessment PAGE 31 © CT Management Group Pty Ltd 2016

Sustainability Assessment PAGE 31 © CT Management Group Pty Ltd 2016

Long Term Financial Plan PAGE 32 © CT Management Group Pty Ltd 2016

Long Term Financial Plan PAGE 32 © CT Management Group Pty Ltd 2016

Standard Reporting © CT Management Group Pty Ltd 2016

Standard Reporting © CT Management Group Pty Ltd 2016

Challenges © CT Management Group Pty Ltd 2016 • Community Satisfaction versus customer satisfaction

Challenges © CT Management Group Pty Ltd 2016 • Community Satisfaction versus customer satisfaction • Documenting actual range and levels of service on a business as usual basis • Moving from finance driven services to levels of service properly costed and agreed; • Community Engagement and Involvement • Organisational Change and culture • Base Data – Assets, classifications • Standards and benchmarks for “comparative choices” • Ultimate alignment to Council Plan • Maintaining a sustainable pathway

Community Engagement

Community Engagement

Community Engagement Drivers Good Governance • Ensure alignment with community / key customer group

Community Engagement Drivers Good Governance • Ensure alignment with community / key customer group needs Target Council’s investment and effort to areas of highest community need • Community Expectations • Many community members now want to participate in the decisions that influence their lives Legislation – Local Government Act • Role of Local Government Rate Capping (Essential Services Commission) • © CT Management Group Pty Ltd 2016 “. . Whether the application takes account of ratepayer and community views…”

Current Community Engagement Prepare within 6 months of Election 4 years forward look -

Current Community Engagement Prepare within 6 months of Election 4 years forward look - Includes SRP Review Annually (Good Practice) Submit to State Government * LG Act Municipal Strategic Statement Community Engagement Review within 12 months of Council Plan Must be consistent with Council Plan Further the objectives of Planning in Victoria * P&E Act Other Council Strategies Community Engagement * MPHWB Act Other Council Plans Other Council Operational Plans © CT Management Group Pty Ltd 2016 Community Plan numbers range from 0 to 35 Council Plan Municipal Public Health and Wellbeing Plan Evidence Based Prepare within 12 months of Election Review Annually Aligned to State Government Plan Community Engagement Community Plan(s) Good Practice - Review at least every 4 years Council 1 – Large Metro – 77/305 Strategies, Plans and Policies Council 2 – Provincial City – 75/172 Strategies, Plans and Policies

IAP 2 Public Participation Spectrum Empower Most Council’s Engagement Strategies are based on this

IAP 2 Public Participation Spectrum Empower Most Council’s Engagement Strategies are based on this model (to invest with legal power, to authorise) Collaborate (to work together) Involve (to engage or include as participants) Consult (to seek advice or information) Inform (to impart information) © CT Management Group Pty Ltd 2016 Community driving us in this direction

Community Engagement Strategy What level of engagement is required ? – Inform : One

Community Engagement Strategy What level of engagement is required ? – Inform : One way communication providing balanced and objective information to assist understanding about something that is going to happen or has happened. – Consult : Two way communications designed to obtain public feedback about ideas on rationale, alternatives and proposals to inform decision making. – Involve : Participatory process designed to help identify issues and views to ensure that concerns and aspirations are understood and considered prior to decision making. – Collaborate : Working together to develop understanding of all issues and interests to work out alternatives and identify preferred solutions. – Empower : Providing opportunities and resources for communities to contribute to solutions by valuing local talents and skills and acknowledging their capacity to be decision makers in their own lives. Based on International Association for Public Participation (IAP 2) model © CT Management Group Pty Ltd 2016

Community Engagement Strategy How do you engage ? Inform Consult üFact Sheets ü Web

Community Engagement Strategy How do you engage ? Inform Consult üFact Sheets ü Web sites üPublic comment üWorkshop üFocus Groups üDeliberate üSurveys polling üSocial Media © CT Management Group Pty Ltd 2016 Involve Collaborate üWorkshop üDeliberate polling

Engagement Matrix © CT Management Group Pty Ltd 2016

Engagement Matrix © CT Management Group Pty Ltd 2016

What is the strategic end game ? Open Government Open Data Transparency Collaboration Open

What is the strategic end game ? Open Government Open Data Transparency Collaboration Open Government Participation Open Decisions Source: A vision for public services, European Commission (2013) © CT Management Group Pty Ltd 2016 Open Services

THE HON. JEFFREY KENNETT A. C. Chairman MICHAEL COURTNEY Managing Director DIANA TAYLOR Executive

THE HON. JEFFREY KENNETT A. C. Chairman MICHAEL COURTNEY Managing Director DIANA TAYLOR Executive Director IAN MANN Executive Director E: [email protected] com. au E: [email protected] com. au E: [email protected] com. au HEAD OFFICE PO Box 1374 Geelong Vic 3220 P: 1300 500 932 F: 03 5221 2666 [email protected] com. au QUEENSLAND PO Box 1057 Capalaba Qld 4157 P: 07 3390 1685 F: 07 3390 3909 [email protected] com. au Owen Harvey Regional Manager M: 0419 741 592 SOUTH AUSTRALIA Unley Annexe PO Box 616 Unley SA 5061 P: 1300 500 932 F: 03 5221 2666 [email protected] com. au Kathy Timmins Business Development Manager M: 0400 373 703 www. ctman. com. au