Snowy Monaro Regional Council (SMRC) has released its draft Suite of Integrated Planning and Reporting (IP&R) documents for community comment until 6 June 2022. They include the Draft 2022-2026 Delivery Program (4 Years), Draft 2022-2023 Operational Plan (annual), Draft Long Term Financial Plan (LTFP) 2022-2032 (10 years), Draft Revenue Policy 2022-2023 (annual) and Draft Fees and Charges 2022-23 (annual).
One key element in the suite of documents is the draft LTFP. The Plan includes projected income and expenditure and cash flow statements for the ten years to 2031/32. A key aim of the Plan is to bring Council’s operating budget deficit back into balance over time. The Plan includes four financial scenarios relating to how Council can secure increased annual income through land rates to eliminate its operating deficits:
1. An annual land rate increase from FY 2023/24 to FY 2031/32 in line with the annual IPART approved rate peg;
2. An annual land rate increase from FY 2023/24 9.347% each year for 8 years;
3. A one off land rate increase of 18.4% in FY 2023/24, followed by annual rate increases in line with the approved IPART annual rate peg; and
4. A 5% special rate increase each year over the 8 year period commencing in FY 2023/24.
It is very important that everyone reads the suite of IP&R documents, tell council what you think through their consultations and lodge your comments here: https://yoursaysnowymonaro.com.au/draft-smrc-ipr-documentation-2023
Background
Snowy Monaro Regional Council (SMRC) has released its draft Suite of Integrated Planning and Reporting (IP&R) documents for community comment until 6 June 2022. The documents include: the Draft 2022-2026 Delivery Program (4 Years), Draft 2022-2023 Operational Plan (annual), Draft Long Term Financial Plan (LTFP) 2022-2032 (10 years), Draft Revenue Policy 2022-2023 (annual) and Draft Fees and Charges 2022-23 (annual).
SMRC is seeking the Snowy Monaro community’s input on the draft IP&R documents and has placed them on its “Have Your Say” website. Written public comments, submissions can be lodged with Council until Monday 6 June 2022. Council has commenced face-to-face community consultations on the IP&R process and documents with drop-in sessions across the LGA. These commenced in Nimmitabel, Bombala and Delegate on 11 May, Bredbo (14 May) and 16 May Numeralla. Sessions continue on 17 May (Berridale) and 18 May (Adaminaby) and in other localities thereafter (Full dates and other details are on the Council website (see link below)).
IP&R is a system of integrated business planning for local government in New South Wales. It comprises a series of interrelated documents that together provide a rigorous, consistent approach to community planning across all NSW local councils, and which is also aligned with regional and state priorities (“Integrated Planning & Reporting Handbook for Local Councils in NSW, September 2021, NSW Office of Local Government”, p8). IP&R is at the centre of all council plans, activities, resourcing decisions and improvement strategies.
The requirements for IP&R are set out in the NSW Local Government Act 1993 and the NSW Local Government (General) Regulation 2021.
IP&R allows councils to bring plans and strategies (goals, priorities and activities) together that supports a clear vision for the future and provides an agreed roadmap for delivering community priorities and aspirations. While councils (Councillors and staff) lead the IP&R process, they do so in close consultation with communities. (“Integrated Planning & Reporting Handbook for Local Councils in NSW, September 2021, NSW Office of Local Government”, p3). Importantly, the IP&R process is designed so that the strategic goals and activities can be achieved within council resources.
SMRC’s draft suite of IP&R documents cover a wide range of matters, all of which should be read and understood as they operate in a holistic manner. They set out the priorities, direction and expected levels of service that the Snowy Monaro community expects over the lifespan of the document, i.e., 10 years from 2022/23. They also describe how Council will deliver services to meet those expectations and the resources – time, money, assets and people – to actually carry them out.
SMRC is encouraging the community to tell Council what the future of local government in the Snowy Monaro region should look like and what level of additional financial investment through revenue from annual rates the community is willing to pay for the delivery of Council services. To this end, Council is seeking views on 4 financial scenarios in the Draft Long Term Financial Plan (LTFP) 2022- 2032 aimed at funding and delivering the community’s priorities in the IP&R suite of documents, and also aimed at bringing Council’s long-term operating budget deficit into balance.
The four financial scenarios are premised on Council exiting the delivery of Aged Care services in the LGA by November 2022. They also assume either the delivery of the same levels of Council services as today or a reduction in service delivery over the 8 years, depending on the level of income generated by each scenario. As noted in the papers, a substantive increase in the financial investment through revenue from annual rates and charges by the community for the delivery of Council services would be required to maintain the current levels of Council provided infrastructure and delivery of services (increases in total income received by council from land rates of between approximately 40% and 100% (using the compounding interest rate (interest-on-interest) accounting approach) are envisaged in 3 of the 4 scenarios.
Over the next few days, we will be undertaking some analysis of the financial implications of the 4 financial scenarios in the LTFP on notional ratepayers. We have developed notional case studies, based on what a notional ratepayer pays in land rates under Council’s current land rate structure, projected forward over the 8 financial years covered by the Plan. These case studies can be found here.
The weblink to the IP&R documents and Council’s Have Your Say website is:
https://yoursaysnowymonaro.com.au/draft-smrc-ipr-documentation-2023
Interested in some more reading?
For those who might be interested in doing a deeper dive into the IP&R process, click on the weblinks below:
https://www.olg.nsw.gov.au/councils/integrated-planning-and-reporting/
For those who might also be interested in doing a deeper dive into how land rates are set and how the NSW Independent Pricing and Regulatory Tribunal (IPART) determines the annual rate peg, click on the following links:
https://www.ipart.nsw.gov.au/Home/About-IPART/Our-role
For those interested in the process for a Special Rate Variation (SRV), the following links provide some useful information:
https://www.ipart.nsw.gov.au/Home/Industries/Local-Government/For-Ratepayers/Special-Variations
https://www.ipart.nsw.gov.au/Home/Industries/Local-Government/Special-Variations
https://www.ipart.nsw.gov.au/search?keys=special%20variations&f%5B0%5D=industry%3A34