meet Council’s target, it is anticipated further annual funding of $200,000 needs to be allocated. Summary If Council allocated a higher proportion of discretionary – funding to asset renewal works, this would further minimise Council's ability to provide new and/or upgraded infrastructure, particularly in the older parts of the city which do not benefit from the significant Section 94 funding which flows to new release areas. Much of these works are necessary to bring certain forms of infrastructure up to desired standard. For this reason, Council needs to balance its allocation of funding between asset renewal and asset upgrade. Greater use of existing reserve funds held by Council Consideration has been given to using funds held in reserve. Council acknowledges it has significant amounts held in reserve, and that it is logical where appropriate to consider opportunities to use some of these funds. As at December 2013 Council’s total investment balance was $303 million. Of this, approximately 56% ($170.2 million) comprised externally restricted reserves. These are funds such as unspent Section 94 contributions and grant funds which can only be expended on a specific purpose. These amounts included: $93.1 million Section 94 developer contributions – $39.5 million Second Creek planning agreement (to be repaid to – Urban Growth) $20.4 million Grants and contributions towards works – $13 million Domestic Waste Management reserve – $4.2 million Environmental Stormwater Management Charge – Council also held $126.5 million (42%) in internally restricted reserves (the remaining balance of $6.3 million comprises working capital and income received in advance). The funds in internal reserves are held for a specific purpose as previously resolved by Council. As such, Council can resolve to allocate these to other purposes should it consider appropriate. However, many of these reserves are held for a specific purpose and it is not appropriate that they be redirected to another purpose, such as increased funding for asset renewal. Examples are: $7.4 million Major computer systems reserve – $3.1 million Plant replacement reserve – $14.9 million Cash bonds and security deposits – $12.2 million Employees leave entitlements – $5.8 million Workers compensation reserve –
meet Council’s target, it is anticipated further annual funding of $200,000 needs to be allocated. Summary – If Council allocated a higher proportion of discretionary funding to asset renewal works, this would further minimise Council's ability to provide new and/or upgraded infrastructure, particularly in the older parts of the city which do not benefit from the significant Section 94 funding which flows to new release areas. Much of these works are necessary to bring certain forms of infrastructure up to desired standard. For this reason, Council needs to balance its allocation of funding between asset renewal and asset upgrade. Greater use of existing reserve funds held by Council Consideration has been given to using funds held in reserve. Council acknowledges it has significant amounts held in reserve, and that it is logical where appropriate to consider opportunities to use some of these funds. As at December 2013 Council’s total investment balance was $303 million. Of this, approximately 56% ($170.2 million) comprised externally restricted reserves. These are funds such as unspent Section 94 contributions and grant funds which can only be expended on a specific purpose. These amounts included: $93.1 million – Section 94 developer contributions $39.5 million – Second Creek planning agreement (to be repaid to Urban Growth) $20.4 million – Grants and contributions towards works $13 million – Domestic Waste Management reserve $4.2 million – Environmental Stormwater Management Charge Council also held $126.5 million (42%) in internally restricted reserves (the remaining balance of $6.3 million comprises working capital and income received in advance). The funds in internal reserves are held for a specific purpose as previously resolved by Council. As such, Council can resolve to allocate these to other purposes should it consider appropriate. However, many of these reserves are held for a specific purpose and it is not appropriate that they be redirected to another purpose, such as increased funding for asset renewal. Examples are: $7.4 million – Major computer systems reserve $3.1 million – Plant replacement reserve $14.9 million – Cash bonds and security deposits $12.2 million – Employees leave entitlements $5.8 million – Workers compensation reserve
Blacktown_City_Council_-_Special_Variation_Application_-_Part_B.docx