5.3.6 Energy Management In line with the sustainability of operations, Council should also be considering the use of solar power to further reduce operating costs, particularly with regard to big energy use sites. Energy audits carried out in 2007 should be reviewed to see that the actions to reduce costs, energy consumption, green-house gas emissions and increasing management commitment have been responded to. Monthly KPI’s should be introduced in line with the Strategic Plan, to measure performance, which will then aid in management and assist to drive improvements and cost savings. Some KPI’s which could be introduced to monitor overall cost reductions are shown in the table below, these need to be in line with Performance Management targets and compared to the IRIS survey results to determine if they will drive the desired community outcomes: Strategy KPI Target Revenue Enhance Ratepayer Value, Operating Profit/No of 0 – Ratepayers ongoing Services Revenue Enhance Ratepayer Value, % uptake Formsport or 10% – BPAYview Function Revenue Expand Revenue New Revenue Growth = 6% – – increase in revenue/last Services years revenue as % Revenue Expand Revenue Brand Increase in economic 6.2% inc – – – activity Shoalhaven area Improve Cost Structure Price Procurement Savings $200k – Improve Cost Structure Quality Savings from Continuous $200k – Improvement efficiencies Improve Asset Utilisation Availability Percentage Preventative 80% – Maintenance/Total Maintenance Costs Improve Asset Utilisation Selection Life Cycle Costing 80% – completed on all new assets Customer Satisfaction Community Satisfaction 90% Rating Innovation No. of new services No. of New Services 2 per annum – No of DA’s and 1400 per annum turnaround time < 60 days Improve Social Processes Expenditure on $100 per capita community health and safety/Avg population Deliver Products and Services Reduction in Asset 100% Backlog Capex – Expenditure/Depreciation Training Avg Training Cost per $750 per FTE FTE Cassi Implementation Modules go live meet Within plan and budget plan Leadership Training Managers Trained 80% Health and Wellbeing of Staff Safety LTI Hours Lost/Total hours – worked as a % 5.4 Service Sustainability There should be a full review of the services Council provide and questions posed as to whether the service is broadly valued and does it align to the Long Term strategic direction
5.3.6 Energy Management In line with the sustainability of operations, Council should also be considering the use of solar power to further reduce operating costs, particularly with regard to big energy use sites. Energy audits carried out in 2007 should be reviewed to see that the actions to reduce costs, energy consumption, green-house gas emissions and increasing management commitment have been responded to. Monthly KPI’s should be introduced in line with the Strategic Plan, to measure performance, which will then aid in management and assist to drive improvements and cost savings. Some KPI’s which could be introduced to monitor overall cost reductions are shown in the table below, these need to be in line with Performance Management targets and compared to the IRIS survey results to determine if they will drive the desired community outcomes: Strategy KPI Target Revenue – Enhance Ratepayer Value, ongoing Services Operating Profit/No of Ratepayers 0 Revenue – Enhance Ratepayer Value, Function % uptake Formsport or BPAYview 10% Revenue – Expand Revenue – New Services Revenue Growth = increase in revenue/last years revenue as % 6% Revenue – Expand Revenue – Brand – Shoalhaven area Increase in economic activity 6.2% inc Improve Cost Structure – Price Procurement Savings $200k Improve Cost Structure – Quality Savings from Continuous Improvement efficiencies $200k Improve Asset Utilisation – Availability Percentage Preventative Maintenance/Total Maintenance Costs 80% Improve Asset Utilisation – Selection Life Cycle Costing completed on all new assets 80% Customer Satisfaction Community Satisfaction Rating 90% Innovation – No. of new services No. of New Services No of DA’s and turnaround time 2 per annum 1400 per annum < 60 days Improve Social Processes Expenditure on community health and safety/Avg population $100 per capita Deliver Products and Services Reduction in Asset Backlog – Capex Expenditure/Depreciation 100% Training Avg Training Cost per FTE $750 per FTE Cassi Implementation Modules go live meet plan Within plan and budget Leadership Training Managers Trained 80% Health and Wellbeing of Staff – Safety LTI Hours Lost/Total hours worked as a % 5.4 Service Sustainability There should be a full review of the services Council provide and questions posed as to whether the service is broadly valued and does it align to the Long Term strategic direction
Attachment-13-Report-on-Financial-Sustainability.docx