BUDGET 2019/2020...The preparation of this budget is influenced by an number of internal and...

WMRLC Budget 2019/20

Whitehorse Manningham Regional Library Corporation

BUDGET 2019/2020

Adopted 22 May 2019

1 WMRLC Budget 2019/20

CONTENTS Page 1 Introduction 2

2 Executive summary 3

3 Link to the Library Plan 5

Budget Analysis

4 Budget principles 9

5 Budget influences 9

6 Analysis of operating budget 10

7 Analysis of budgeted cash position 14

8 Budgeted Capital Works 16

9 Analysis of budgeted financial position

10 Strategic Resource Plan and Key Financial Indicators 19

11 Financial Statements 24

Appendices

A Fees and charges schedule 30

B Budget process 31


1 Introduction

Whitehorse Manningham Regional Library Corporation (WMRLC) is a Library

Corporation under section 196 of the Local Government Act 1989. The Corporation

provides a public library service to the municipalities of Whitehorse and Manningham

(the member Councils), which have a combined estimated residential population of

304,357.

The Corporation is governed by a Board comprising two Councillor Representatives

from each of the member Councils, the Chief Executive Officers from the member

Councils and two community representatives. The Corporation’s Chief Executive

Officer reports to the Board and is responsible for the management of the

Corporation.

The Library Plan 2017-2021 sets out the strategic plan to deliver the Corporation’s

vision over the four year period. The proposed Budget 2019/2020 details the

resources required over the next year to achieve the Library Plan actions. The budget

supports the continued transformation to a 21st century library service that embraces

the possibilities of new technology, while continuing to strengthen the reading and

learning services and resources most valued by our community.

The proposed 2019/2020 Budget is presented in a format which demonstrates the

proposed 2019/2020 Cash Budget, the 2019/2020 Budget and anticipated final

results for the 2018/2019 Budget. A Budgeted Income Statement, Budgeted

Statement of Capital Works, Budgeted Balance Sheet and Budgeted Cash Flow

Statement are provided.


2 Executive Summary

The Corporation has prepared a Budget for 2019/20 which is aligned to the vision in

the Library Plan 2017-2021. It seeks to maintain library services that are valued by

our community. It has been developed to ensure the Corporation is financially

sustainable, while also ensuring it can deliver the strategic objectives and actions set

out in the Library Plan.

The Corporation continues to strive to contain costs through system improvements,

respects the financially constrained environment and takes opportunities to explore

additional revenue sources where possible. Expenditure in all areas has been

reviewed and is considered realistic.

This Budget projects a balanced budget for the 2019/2020 financial year.

2.1 Key things we are funding

Strategy 1. Read, Learn and Discover

1) Maintaining collection resource allocation to allow for some growth in e-

resources.

2) Maintaining delivery of reading and learning programs and events for all ages

throughout the year.

3) Achievement of the Literacy Strategy priorities including support for early

literacy and English as an Additional Language programs and resources.

Strategy 2. Connect, Collaborate and Participate

1) Funding for participatory programs include Makerspace and special events.

2) Continued support for volunteer engagement; includes funding for human

resource to support the coordination of an increased number of volunteers.

Strategy 3. Experience

1) Support for the People and Skills Strategy to ensure the employment and

development of a workforce with capacity to support delivery of Library Plan

objectives.

2) Maintaining the IT network to enable the delivery of modern library services.

3) Scheduled replacement of IT equipment including branch and network

equipment.

4) Improvements to internal signage and way finding at library branches.


Strategy 4. Value

1) A reduction in the number of scheduled Internal Audits from three down to

two.

2) Continued implementation of the digitisation strategy, including procurement

workflows and records.

3) Discontinuation of discounted rates for multiple bookings of the meeting

rooms.

4) Maintaining support for fundraising, sponsorship and grant seeking activities.

2.2 Key Statistics

Total Income $11,209,764 (2017/18 = $10,989,958)

Total Expenditure $10,821,535 (2017/18 = $10,282,564)

Accounting Result* $388,229 Surplus (2017/18 = $707,394 (Anticipated Surplus)

(Refer to Income Statement in Section 11.1)

Total Capital Works $1,990,679 (2017/18 = $1,957,944)


3 Links to the Library Plan

This section describes how the Annual Budget links to the achievement of the Library

Plan.

3.1 Planning and accountability framework

The Strategic Resource Plan is a rolling four year plan that outlines the financial and

non-financial resources that the Corporation requires to achieve the strategic objectives

described in the Library Plan. The Annual Budget is framed within the Strategic

Resource Plan, taking into account the services and initiatives which contribute to

achieving the strategic objectives specified in the Library Plan. The Annual Report

includes a report on operations, financial statements and performance results.

The Library Plan, including the Strategic Resource Plan is required to be completed by

30 June following the general election of Councillors. The Strategic Resource Plan is

reviewed each year in advance of the commencement of the Annual Budget process.

3.2 Our purpose

Whitehorse Manningham Libraries – Open for Discovery

Our vision

A library open for all to discover a world of possibilities.

Our mission

To provide opportunities that inspire our community to read, learn, connect and create.

Our values

Respect

We acknowledge our diverse community and support equal access to services by all.

Integrity

We are open, honest and accountable in the way we conduct our business.

Community Driven

Our services and the way we deliver them are shaped by the needs and aspirations of

our community.

Collaboration

Together we develop positive relationships and partnerships that strengthen our services

and their impact.


Excellence

We aim for excellence and strive to find new ways to improve how we work and deliver

services.

3.3 Strategic objectives

The following table lists the four strategic goals as described in the Library Plan 2017-

2021

Strategic Objective Description

1. Read, Learn and Discover

Our library has a critical role in contributing to

community and individual wellbeing by

providing accessible and engaging collections,

resources and programs that encourage life-

long learning and reading for pleasure.

2. Connect, Collaborate and

Participate

Our library provides opportunities for social

connection and community engagement. We

actively invite and develop collaborative

community partnerships to achieve mutual

benefits.

3. Experience

Our libraries are important civic spaces where

all in the community should feel welcome. We

strive for excellence in all aspects of our

services to ensure a positive and responsive

experience for all customers.

4. Value We apply best practice principles to the way we

work to ensure our services continue to be

relevant and sustainable.


3.4 Service Performance indicators – five year trends

Sustained high use of library collections and branches

Note: 2017/2018 loans and visits impacted by the Box Hill Library renovation works

16.2% increase in information enquiries

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2013/14 2014/15 2015/16 2016/17 2017/18

Total Loans and Branch Visits

Visits to branches Loans of collection items

131,458

136,429

143,467

149,162

152,725

2013/14 2014/15 2015/16 2016/17 2017/18

Tota

l En

qu

irie

s

Financial Year

Information Enquiries responded to by staff


140.3% increase in volunteer numbers

93.3% increase in public Wi- Fi usage

12.5% increase in program attendance

6277 81

97

149

2013/14 2014/15 2015/16 2016/17 2017/18

Total Number of Volunteers

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013/14 2014/15 2015/16 2016/17 2017/18

Public Internet Sessions

Fixed PC Wifi

67,578

69,765 69,800 71,051

76,012

2013/14 2014/15 2015/16 2016/17 2017/2018

Program Attendance


Budget Analysis

4 Budget principles

The preparation of the 2019/2020 budget is informed by the following overarching

principles:

Service levels to be maintained at 2018/2019 levels.

Alignment of budget to the delivery of the Library Plan objectives.

Alignment of service delivery to community need and expectation.

Review of all areas of expenditure against anticipated service needs and market

trends and containing increases as much as possible.

Warrandyte Library is funded by Manningham City Council outside of the

Regional Library Agreement and is not reflected in this budget.

5 Budget Influences

The preparation of this budget is influenced by an number of internal and external factors

including the following:

Contributions from member Councils are forecast to increase by 2.5% in line with

the 2019/2020 rate cap percentage amount set by the State government.

State government grant is forecast to increase by 1.9% based on previous years’

experience.

Revenue from user fees and charges is forecast to decline by 6.6% compared to

the previous years budgeted revenue from this source. This sustained downward

trend is being experienced industry wide.

Enterprise Agreement increase of 1.9%

Based on forecasting from Trading Economics, interest rates are anticipated to

increase to 2% (currently 1.5%) by the end of 2018 and to 3% by the end of 2020.

Increased cost of collection materials, ICT, programs and marketing.

Increased cost of utilities.

Demographic trends including increased cultural diversity and ageing population.

Along with a forecast 1.55% increase in the Whitehorse Manningham population

in 2019 compared to 2018 (forecast.id).


6 Analysis of operating budget

This section of the report analyses the operating budget including the expected income

and expenses of the Corporation for the 2019/2020 financial year.

The following notes are presented to demonstrate the key parameters and assumptions

underpinning the budget and to provide additional explanatory information.

6.1 Income

The Corporation receives funds through member Council contributions and State

Government funding. The Corporation generates small amounts through user fees,

charges and interest earned on investments.

Income type Forecast

Actual

2018/2019

Budget

2019/2020

Variance

Council Contributions 8,617,720 8,833,163 215,443

State government Public Libraries Funding 1,734,859 1,767,821 32,962

Other Grants 127,207 128,942 1,735

Fees/Charges 331,149 353,000 21,851

Income from Investments 85,000 85,000 0

Cash Surplus c/fwd 149,290 41,838 (107,452)

Total Income 11,045,225 11,209,765 164,539

79%

16%

1% 3% 1% 0% Total Income 2019/2020

Council Contributions

State government PublicLibraries Funding

Other Grants

Fees/Charges

Income fromInvestments

Cash Surplus c/fwd


Council Contributions

Member Council contributions are in accordance with the agreed funding formula set out

in the Regional Library Agreement. The increase in contributions for the 2019/2020

financial year is 2.5% in line with the rate cap percentage amount.

Member Council Contributions Budget

2018/2019

Budget

2019/2020

Variance

City of Whitehorse 5,178,046 5,307,497 129,451

Manningham City Council 3,439,674 3,525,665 85,992

Total contributions 8,617,720 8,833,163 215,443

Grants

The State Government recurrent core and local priorities funding is forecast to increase

by 1.9%; the increase is confirmed by the State Government in June. No increase is

forecast for the Premiers Reading Challenge grant; the funding amount is usually

confirmed in December.

Income from other grants and donations is not included in the budget unless it is known

at the time of the budget preparation.

Recurrent grants Forecast Actual

2018/2019

Budget

2019/2020

Variance

State Public Libraries - Core 1,734,859 1,767,821 32,962

State Local Priorities 91,308 93,043 1,735

Premiers Reading Challenge 35,899 35,899 0

Other 0 0 0

Total recurrent grants 1,862,066 1,896,763 34,697

User Fees and Charges ($25,200 decrease)

User fees and charges includes income from lost, damaged, overdue and reservation

charges, printing and copying, meeting room hire and sale of products. User fees and

charges have been reviewed and benchmarked against those of other public library

services. Total revenue from user fees and charges is forecast to decrease by 6.66%

compared to the previous year’s budgeted income. Revenue from user fees and charges

has decreased by 39.5% ($76,626) over the past 5 years

The schedule of Fees and Charges is detailed at Appendix A.


Interest from Investments ($10,000 increase)

Interest from investments includes interest earned on available cash throughout the year.

Cash funds and cash requirements are reviewed on a daily basis to identify funds

available and required to meet the Corporation’s obligations and surplus cash funds are

identified for investment availability. The Corporation expects to receive more than

budgeted in 2018/2019 due to shopping around for the best interest rates and being

vigilant with cash flows.

6.2 Operating Expenditure

Expense types Forecast Actual

2018/2019

Budget

2019/2020

Variance

Employee costs 7,401,704 7,498,672 96,968

Grant expenditure 127,207 128,942 1,735

Other expenses 1,516,532 1,591,472 74,940

Total Expenses 9,045,443 9,219,086 173,643

Total operating expenditure is projected to increase by $173,643 over budgeted

expenditure for 2018/2019.

Employee costs ($138,783 increase)

Employee costs comprise 81% of total operating expenditure.

Employees costs include all labour related expenditure such as salaries and on costs

including allowances, banding increments, leave entitlements, employer

81%

3%

4%

3%

7%2% Total Expenditure 2019/2020

Employee costs

Collection resources

Information services andTechnology

Utilites

OtherExpenses

Other Grants


superannuation guarantee, Workcover, penalty payments for weekend work, staff

development, Employee Assistance Program, relief staff to cover leave absences and

engagement of external specialist resources where required.

Employee costs are forecast to increase by 1.9% or $138,783 compared to

2018/2019. This increase relates to three key factors:

Enterprise Agreement increases

Maintaining staff levels

Zero increase to staff development expenditure

Utilities ($38,446 increase)

Gas, Electricity, Water, Cleaning and Courier costs increased to meet anticipated

rises.

Building security costs decreased by $2,000 due to savings realised through change

in system communication mode.

Information services ($200 increase)

Included in this budget is the Library Management System, Debt Recovery and

Libraries Australia costs.

Information technology ($8,572 increase)

Increased to meet anticipated increased costs associated with software licences,

communications and support services.

Collection resources (non- capital) ($1,000 increase)

Included in this budget are periodicals, newspapers and some electronic collection

resources (e-magazines, online newspapers, databases). These types of items are

non-depreciable and therefore not regarded as assets.

Other expenses ($5,647 overall increase) includes:

Auditing (no increase)

The scope of internal audits in 19/20 FY will be reduced due to budget

constraints

Professional services ($5,200)

Increased due to commencement of Enterprise Bargaining negotiations in

February 2020


Programs ($6,000 increase)

Increased in response to community demand for library programs and events.

Marketing ($10,000 decrease)

Decreased due to budget constraints.

7 Analysis of Budgeted Cash Position

This section of the report analyses the expected cash flows from the operating,

investing and financing activities of the Corporation for the 2019/20 year. Budgeting

cash flows for the Corporation is a key factor in ensuring it can meet its strategic and

financial commitments, and provides a guide to the level of capital expenditure that

can be sustained with or without using existing cash reserves.

Forecast Actual

2018-2019

Budget 2019-2020

Variance

Cash flows from operating activities

Contributions Received 8,617,720 8,833,164 215,444

Grants Received 1,862,887 1,896,763 33,876

Interest Received 75,489 85,000 9,511 User Fees and Charges

434,351 394,838 (39,513)

Payments to Employees / Suppliers (9,202,902) (9,197,152) 5,750

Net cash provided by operating activities

1,787,545 2,012,613 225,068

Cash flows from Investing Activities

Payments for Collection Resources, Equipment and Furniture

(1,418,855) (1,990,679) (571,824)

Proceeds from Sale of Equipment

Net cash provided by investing activities

(1,418,855) (1,990,679) (571,824

Net increase (decrease) in cash held 368,690 21,934 (346,756)

Cash at the beginning of the year 2,495,498 2,864,498 369,000 Cash at the end of the year 2,864,498 2,886,432 22,244

Cash flows from Operating Activities

Operating activities refer to the cash generated by or used in the normal

service delivery functions of the Corporation.


Payments from Operating Activities

Employee costs comprise approximately 80% of the total cash expenditure

Small decreases in payments to suppliers based on the anticipated budget

result for 2019/20.

Overall, a small increase in Net Cash Flow from Operating Activities is

anticipated

Net Cash used in Investing Activities

The main impact on Investing Activities is increases in Collection Resources.

Cash at End of Financial Year

It is anticipated that at the end of the 2019/2020 FY the total cash will slightly

increase.

Restricted Funds and working Capital

The cash flow statements show that the Corporation is estimating at 30 June 2020 to

have cash and cash investments of 2,886,432 of which some investments are

restricted:

Employee Benefits – current $1,040,328

Employee Benefits – non-current $ 123,632

These funds are separately identified as restricted to ensure there are sufficient funds

to meet the Corporation’s obligations as set out in the Local Government (Long

Service Leave) Regulations 2002.

The Corporation also have monies set aside in a reserve account to assist with the

replacement of the Radio Frequency Identification (RFID) equipment.


8 Analysis of Capital Works

This section of the report analyses the planned capital expenditure budget for the

2019/20 year and the sources of funding for the capital budget.

Budgeted Statement of Capital Works

2018-2019 2019-2020 Variance

Capital Works

Collection Resources 1,664,944 1,696,577 31,633

Furniture and Equipment 58,000 59,102 1,102

Motor Vehicle Replacement 25,000 25,000 0

IT Replacement 210,000 210,000 0

Total Capital Works 1,957,944 1,990,679 32,735

Represented by:

Asset renewal expenditure 1,957,944 1,990,679 32,735

Total capital works expenditure 1,957,944 1,990,679 32,735

2018-2019 2018-2019 Variance

Sources of Funding

Council Contributions 1,593,754 1,619,569 25,815

Public Libraries Funding 364,190 371,110 6,920

Total 1,957,944 1,990,679 32,735

85%

3%

11%1%

Capital Expenditure 2019/2020

Collection Resources

Furniture &Equipment

IT Replacement

Motor VehicleReplacement


Collection Resources ($31,634 increase)

Collection Resources includes capital items such as physical books, audio-visual

resources, e-books and end processing costs. Collection resources are a major

asset. The Corporation continues to focus on improving the relevance and quality of

the collection by regularly evaluating collection borrowing trends and collection

condition and content and replacing the stock. CPI increase only.

Furniture and Equipment ($1,102 increase)

This assists the replacement of limited amounts of furniture in branch library public

areas and upgrades required to meet current ergonomic and OH&S standards.

Smaller items of equipment are covered in the operating budget under equipment

maintenance and replacement. CPI increase only.

Information Technology Replacement (no increase)

Information Technology capital expenditure covers the upgrade and replacement of

computer hardware, servers, RFID equipment, network hardware, printers and other

minor hardware items and the purchase of new software. The delivery of a modern

library service requires an IT network and equipment that can support service level

expectations.

Motor Vehicles (no increase)

The Corporation has a small fleet of cars that are used by all staff when moving

between branches or attending meetings. IT staff regularly use these vehicles when

providing support to branch libraries. The Home Library Service staff use vehicles on

a daily basis for deliveries. 1 vehicle scheduled for replacement.


9 Analysis of Budgeted Financial position

This section of the budget report analyses the movements in assets, liabilities and

equity between 2018/19 and 2019/20.

Budgeted Balance Sheet 2018-2019 2019-2020 Variance

Current assets

Cash assets 4,109,727 2,883,432 (1,226,295)

Receivables 65,000 65,000 0

Accrued Income 105,000 80,000 (25,000)

Prepayments 35,000 35,000 0

Total current assets 4,314,727 3,063,432 (1,251,295)

Non-current assets

Collection Resources 6,815,909 5,991,056 (824,853)

IT Equipment, Furniture and Equipment 960,156 1,322,455 362,299

Total non-current assets 7,776,065 7,313,511 (462,554)

Total assets 12,090,792 10,376,943 (1,713,849)

Current liabilities

Payables 585,044 531,865 (53,179)

Employee benefits 1,562,992 1,592,689 29,697

Other

Total current liabilities 2,148,036 2,124,554 (23,482)

Non-current liabilities

Employee benefits 100,487 102,396 1,909

Total non-current liabilities 100,487 102,396 1,909

Total liabilities 2,248,523 2,226,950 (21,753)

Net assets 9,842,269 8,149,993 (1,692,276)

Equity

Accumulated surplus 5,920,226 4,227,950 (1,692,276)

Members Contribution 3,922,043 3,922,043 0

Total equity 9,842,269 8,149,993 (1,692,276)

Cash assets reducing in 2019/2020 as a result of declining income. In

previous years the Corporation received additional grants such as the Living

Libraries Infrastructure Program Grant, thus increasing the cash holdings.

The Collection amount decreased in 2016/2017 due to writing off a large

proportion of items that had been deleted from the Library Management

System but not written off in the fixed assets. The depreciation for the


collection resources has reduced also as a consequence. From 2019/20 an

allowance has been made for part of the collection being written off as well

as depreciated.

Equity – the net decrease in equity represents the deficit for 2019/2020.

10 Strategic Resource Plan and Key Financial Indicators

10.1 Plan Development

A four year strategic resource plan and long term financial plan is developed and

adopted in conjunction with the annual budget. This financial plan is fundamentally

premised on the Corporation’s commitment to continue the Regional Library’s

operations on a financially sustainable basis and restricting Council contribution

increases (operational and capital).

Underpinning this commitment are the following objectives:

Restricting salary increases to industry standard Enterprise Bargaining

increases and corresponding increases in statutory on-costs.

Continuous pursuit of innovation and efficiency measures to reduce other

expenditure.

Lobbying wherever possible for increased government funding.

Maintaining existing service levels with the introduction of affordable service

initiatives.

Maintaining information communication technology systems within the

parameters of affordability.

Maintaining a capital expenditure on Collection Resources that meets the

objectives of the Collection Management Strategy and industry standards.

Prudently managing financial risks relating to assets and liabilities.

Providing full, accurate and timely disclosure of financial information.

10.2 Funding Strategies

The current long term plan is presented on an accrual basis. It reflects projected

income and expenditure in both capital and operational areas.

The plan is currently premised on the following key parameters:

Indexation of Council contributions by 2.50% each year


Indexation of State Government core and local priorities grants by 1.9% each

year

No increases to the Premier’s Reading Challenge grant

Interest on investments to remain stable across the ten year plan

Operating income continues to decline in each year by $10,000 per year

Total operating expenditure to increase by an average of 2.20% each year

2% increase in Collection Resources in the first four years on the plan then

increasing to 2.5%

2% Increases in Information Technology, Furniture and Equipment each year

until 2024/25

No increase in Motor Vehicles until 2024/25 then to increase 2.5% each year.

The Corporation reviews these financial parameters each year as part of the annual

budget process and adjusts the financial plan accordingly wherever parameters

have changed.

The Corporation has a tight financial position and limited opportunity to identify

compensatory discretionary cost items within the operating expenditure budget to

offset lost revenue. While the Corporation is continually reviewing ways to identify

savings, the ongoing reduction of revenue from user charges and interest presents

ongoing challenges when looking to maintain service levels within current budgets.

The Corporation endeavours to identity additional income sources to delivery

extension services and programs.


10.3 Ten Year Financial Plan

Budget Strategic Resource Plan Long Term Financial Plan

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Council Contribution

Whitehorse 5,307,497 5,440,185 5,576,190 5,715,594 5,858,484 6,004,946 6,155,070 6,308,947 6,466,670 6,628,337

Manningham 3,525,665 3,613,807 3,704,152 3,796,756 3,891,675 3,988,967 4,088,691 4,190,908 4,295,681 4,403,073

Total 8,833,163 9,053,992 9,280,342 9,512,351 9,750,159 9,993,913 10,243,761 10,499,855 10,762,351 11,031,410

Public Libraries Grant 1,767,821 1,801,410 1,835,637 1,870,514 1,906,054 1,942,269 1,979,172 2,016,776 2,055,095 2,094,142

Operating Income - WMRLC 438,000 438,000 428,000 418,000 408,000 398,000 388,000 378,000 368,000 358,000

Grants Local Priorities Funding 93,043 94,811 96,612 98,448 100,318 102,224 104,167 106,146 108,162 110,218

Premiers Reading Challenge 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899

TOTAL INCOME 11,167,927 11,424,112 11,676,490 11,935,212 12,200,430 12,472,305 12,750,998 13,036,676 13,329,508 13,629,668

EXPENDITURE

Operational 9,090,144 9,264,503 9,487,716 9,716,342 9,950,511 10,200,135 10,456,021 10,718,327 10,987,213 11,262,846

Depreciation/Disposal 1,602,449 1,980,239 2,176,490 2,355,754 2,524,830 2,499,870 2,619,684 2,736,959 2,501,715 2,503,017

Grants Local Priorities 93,043 94,811 96,612 98,448 100,318 102,224 104,167 106,146 108,162 110,218

Premiers Reading Challenge 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899

Total Expenditure 10,821,535 11,375,452 11,796,717 12,206,443 12,611,558 12,838,128 13,215,770 13,597,330 13,632,990 13,911,979

Net Surplus (Deficit) 346,391 48,659 (120,227) (271,231) (411,128) (365,823) (464,772) (560,654) (303,483) (282,311)

Adjustments to AAS27

Depreciation/Disposal (1,602,449) (1,980,239) (2,176,490) (2,355,754) (2,524,830) (2,499,870) (2,619,684) (2,736,959) (2,501,715) (2,503,017)

9,219,086 9,395,213 9,620,227 9,850,689 10,086,728 10,338,258 10,596,086 10,860,371 11,131,275 11,408,962

Collection Resources 1,696,577 1,730,508 1,765,119 1,800,421 1,836,429 1,882,340 1,929,399 1,977,634 2,027,074 2,077,751

Furniture & Fittings 59,102 60,284 61,490 62,720 63,974 65,573 67,213 68,893 70,615 72,381

Motor Vehicle Replacement 25,000 25,000 25,000 25,000 25,000 25,625 26,266 26,922 27,595 28,285

IT Replacement 210,000 214,200 218,484 222,854 227,311 232,994 238,818 244,789 250,909 257,181

NET SURPLUS (DEFICIT) (41,838) (1,094) (13,829) (26,471) (39,012) (72,485) (106,783) (141,933) (177,961) (214,892)


10.4 Financial Resources

Financial Plan Projections


2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Operating result 338,229 48,658 (120,227) (271,232) (411,128) (365,823) (464,772) (560,654) (303,483) (282,311) -

Cash & Cash Investments 2,886,432 2,937,776 2,979,875 3,021,918 3,018,805 3,011,799 2,989,009 2,956,659 2,832,045 2,672,991 0

Cash Flow from Operations 2,031,121 2,091,673 2,105,283 2,115,174 2,151,004 2,169,894 2,201,928 2,241,996 2,240,095 2,271,340 0

Capital Works 1,990,679 2,029,993 2,070,092 2,110,994 2,152,714 2,206,532 2,261,696 2,318,238 2,376,193 2,435,598 + Key to Forecast Trend: + Forecasts improvement in the Corporation's financial performance/financial position indicator o Forecasts that the Corporation’s financial performance/financial position indicator will be steady - Forecasts deterioration in the Corporation’s financial performance/financial position indicator

The key outcomes of the Plan are as follows:

Financial Sustainability

Cash and investments are forecast to increase over the ten year period to fund library materials and technology.

Council Contributions Strategy

Indexation of member Council contributions is based on the 2019/2020 rate cap percentage amount set by the State Government (2.5%).

Capital Works Strategy

Capital expenditure over the ten year period will total $21 million with $18.7 million being spent on library collection materials and $2.1 million on Information

Technology. This allows for continued renewal of the collection, IT and RFID equipment.

Service Delivery Strategy


Existing service levels are maintained throughout the ten year period.

10.5 Non-Financial Resources

Salary expenses and on-costs represent approximately 83% of the Corporation’s total operating expenditure (excluding depreciation).

Statement of Human Services For the years ending 30 June 2020 - 30 June 2029

Forecast Budget Strategic Resource Plan Long Term Financial Plan

2018/19 2019/20 2020/21 2021/22 2022/23 2024/2025 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029

Staff expenditure

Employee costs –operating

7,401,704 7,498,672 7,641,147 7,832,175 8,027,980 8,027,979 8,228,680 8,434,396 8,645,256 8,861,388 9,082,923

Employee costs –capital 0 0 0 0 0 0 0 0 0 0 0

Total staff expenditure 7,401,704 7,498,672 7,641,147 7,832,175 8,027,980 8,027,980 8,228,680 8,434,396 8,645,256 8,861,388 9,082,923

EFT EFT EFT EFT EFT EFT EFT EFT EFT EFT EFT

Staff numbers

Employees 74 74 74 74 74 74 74 74 74 74 74

Total staff numbers

74 74 74 74 74 74 74 74 74 74 74


11 Financial Statements

This section presents information in regard to the Financial Statements. The budget information for the years 2019/20 to 2022/29 has

been extracted from the Strategic Resource and Long Term Financial Plan.

This section includes the following financial statements and the following budgeted information:

Budgeted Comprehensive Income Statement

Budgeted Balance Sheet

Statement of Changes in Equity

Budgeted Statement of Cash Flows

Budgeted Statement of Capital Works


11.1 Budgeted Comprehensive Income Statement

For the years ending 30 June 2020-2029


2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Revenue

Council Contributions 8,833,163 9,053,992 9,280,342 9,512,350 9,750,159 9,993,913 10,243,761 10,499,855 10,762,351 11,031,410

State Government Grant 1,767,821 1,801,410 1,835,636 1,870,513 1,906,053 1,942,268 1,979,171 2,016,776 2,055,094 2,094,141

Fees and charges 394,838 353,000 343,000 333,000 323,000 313,000 303,000 293,000 283,000 273,000

Other Grants 128,942 130,710 132,511 134,347 136,217 138,123 140,066 142,045 144,061 146,117

Interest from Investments 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 Proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0

Total Revenue 11,209,764 11,424,111 11,676,489 11,935,211 12,200,429 12,472,304 12,750,998 13,036,676 13,329,506 13,629,668

Expenses

Employee costs 7,498,672 7,641,147 7,832,175 8,027,980 8,228,679 8,434,396 8,645,256 8,861,388 9,082,922 9,309,995

Financial Expenses 34,000 34,680 35,374 36,081 36,803 37,741 38,704 39,691 40,703 41,741

Collection Resources 250,960 255,979 261,099 266,321 271,647 278,574 285,678 292,963 300,433 308,094

ICT 383,772 391,447 399,276 407,262 415,407 426,000 436,863 448,003 459,427 471,143 Depreciation/Collection Withdrawal 1,602,449 1,980,239 2,176,490 2,355,754 2,524,830 2,499,870 2,619,684 2,736,959 2,501,715 2,503,017

Other expenses 922,740 941,250 959,792 978,699 997,975 1,023,423 1,049,520 1,076,283 1,103,728 1,131,873

Grant Expenditure 128,942 130,710 132,511 134,347 136,217 138,123 140,066 142,045 144,061 146,117

Total Expenses 10,821,535 11,375,452 11,796,717 12,206,443 12,611,558 12,838,128 13,215,771 13,597,330 13,632,990 13,911,980

Net Gain (Loss) on disposal of Equip - - - - - - - - - -

PROFIT/(DEFICIT) FOR THE PERIOD 388,229 48,658

(120,228)

(271,232)

(411,129)

(365,824)

(464,773)

(560,654)

(303,484)

(282,312)


11.2 Budgeted Balance Sheet

As at 30 June 2020 - 2029


2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Current Assets

Cash assets 2,883,432 2,975,751 2,985,851 2,988,264 3,024,782 3,011,799 2,989,009 2,956,659 2,832,045 2,672,991

Receivables 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000

Prepayments 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

Accrued Income 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000

Total Current assets 3,063,432 3,155,751 3,165,851 3,168,264 3,204,782 3,191,799 3,169,009 3,136,659 3,012,045 2,852,991

Non-Current assets Collection Resources 5,991,056 6,077,430 5,991,006 5,751,545 5,369,271 5,072,947 4,703,168 4,264,247 4,149,399 4,097,364

IT Equipment, Furniture & Equipment 1,322,455 1,269,171 1,269,289 1,241,811 1,213,742 1,187,096 1,161,909 1,138,217 1,116,058 1,095,470

Total Non-Current assets 7,313,511 7,346,601 7,260,295 6,993,356 6,583,013 6,260,043 5,865,077 5,402,464 5,265,457 5,192,834

Total Assets 10,376,943 10,502,352 10,426,146 10,161,620 9,787,795 9,451,842 9,034,086 8,539,123 8,277,502 8,045,825

Current Liabilities

Payables 531,865 563,736 573,178 544,613 545,939 529,939 529,938 547,437 539,902 539,904

Provisions 1,592,689 1,624,543 1,657,033 1,690,174 1,723,978 1,767,077 1,811,254 1,856,535 1,902,949 1,950,522

Total Current Liabilities 2,124,554 2,188,279 2,230,211 2,234,787 2,269,917 2,297,016 2,341,192 2,403,972 2,442,851 2,490,426

Non-Current Liabilities Provisions 102,396 104,444 106,533 108,664 110,837 113,608 116,448 119,359 122,343 125,402

Total Non-Current Liabilities 102,396 104,444 106,533 108,664 110,837 113,608 116,448 119,359 122,343 125,402

Total liabilities 2,226,950 2,292,723 2,336,745 2,343,451 2,380,754 2,410,624 2,457,640 2,523,332 2,565,194 2,615,828

Net assets 8,149,993 8,209,629 8,089,402 7,818,169 7,407,041 7,041,218 6,576,446 6,015,791 5,712,308 5,429,997

Equity Accumulated surplus 4,227,950 4,287,586 4,167,359 3,896,126 3,484,998 3,119,175 2,654,403 2,093,748 1,790,265 1,507,954

Members Contribution 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043 3,922,043

Total equity 8,149,993 8,209,629 8,089,402 7,818,169 7,407,041 7,041,218 6,576,446 6,015,791 5,712,308 5,429,997


11.3 Statement of Changes in Equity For the years ending 30 June 2020 – 30 June 2029

Accumulated Members

Total Surplus Contribution

Budget 2020 Balance at beginning of the financial year 7,761,764 3,839,721 3,992,043

Surplus (deficit) for the year 399,206 399,206 0

Balance at end of the financial year 8,160,970 4,238,927 3,992,043

2021 - SRP Balance at beginning of the financial year 8,160,970 4,238,927 3,922,043

Surplus (deficit) for the year 48,659 48,659 0



Surplus (deficit) for the year (120,228) (120,228) 0





2024 - LTFP Balance at beginning of the financial year 7,818,169 3,896,126 3,922,043



















11.4 Statement of Cash Flows

For the years ending 30 June 2020 – 30 June 2029


2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Cash flows from Operating Activities

Contributions Received

8,833,164

9,053,992

9,280,342

9,512,350

9,750,159

9,993,913

10,243,761

10,499,855

10,762,351

11,031,410

Grants Received

1,767,821

1,801,410

1,835,636

1,870,513

1,906,053

1,942,268

1,979,171

2,016,776

2,055,094

2,094,141

Interest received

85,000

85,000

90,000

85,000

85,000

85,000

85,000

85,000

85,000

85,000

Other Grants

394,838

130,710

132,511

333,000

136,217

138,123

140,066

142,045

144,061

146,117

Other Income

128,942

353,000

343,000

134,347

323,000

313,000

303,000

293,000

283,000

273,000

Payments to Employees/Supplies

(9,178,644)

(9,332,439)

(9,576,206)

(9,820,036)

(10,049,425)

(10,302,410)

(10,549,070)

(10,794,680)

(11,089,411)

(11,358,328)

Net cash provided by operating activities

2,031,121

2,091,673

2,105,283

2,115,174

2,151,004

2,169,894

2,201,928

2,241,996

2,240,095

2,271,340

Cash flows from Investing Activities

Payments for property, plant and equipment

(1,990,679)

(2,040,329)

(2,063,184)

(2,084,104)

(2,141,487)

(2,176,900)

(2,224,718)

(2,274,346)

(2,364,709)

(2,430,394)

Net cash from Investing Activities

(1,990,679)

(2,040,329)

(2,063,184)

(2,084,104)

(2,141,487)

(2,176,900)

(2,224,718)

(2,274,346)

(2,364,709)

(2,430,394)

Net increase (decrease) in cash held

21,934

51,344

42,099

31,070

9,517

(7,006)

(22,790)

(32,350)

(124,614)

(159,054)

Cash at the beginning of the year

2,864,498

2,886,432

2,937,776

2,990,848

3,009,288

3,018,805

3,011,799

2,989,009

2,956,659

2,832,045

Cash at the end of the year

2,886,432

2,937,776

2,979,875

3,021,918

3,018,805

3,011,799

2,989,009

2,956,659

2,832,045

2,672,991


11.5 Statement of Capital Works

For the years ending 30 June 2020 – 30 June 2029


2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Collection Resources 1,696,577 1,730,508 1,765,119 1,800,421 1,836,429 1,882,340 1,929,399 1,977,634 2,027,074 2,077,751

IT Replacement 210,000 214,200 218,484 222,854 227,311 232,994 238,818 244,789 250,909 257,181

Furniture and Equipment 59,102 60,284 61,490 62,720 63,974 65,573 67,213 68,893 70,615 72,381

Motor Vehicles Replacement 25,000 25,000 25,000 25,000 25,000 25,625 26,266 26,922 27,595 28,285

Total capital works 1,990,679 2,029,993 2,070,092 2,110,994 2,152,714 2,206,532 2,261,696 2,318,238 2,376,193 2,435,598

Represented by: Renewal 1,990,679 2,029,993 2,070,092 2,110,994 2,152,714 2,206,532 2,261,696 2,318,238 2,376,193 2,435,598

Upgrade - - - - - - - - - -

Expansion - - - - - - - - - -

New assets - - - - - - - - - -

Total capital works 1,990,679 2,029,993 2,070,092 2,110,994 2,152,714 2,206,532 2,261,696 2,318,238 2,376,193 2,435,598


Appendix A: Fees and Charges Schedule Table 1: Fees and Charges

2018/2019 Draft 2019/2020 Notes

Overdue Charges - Adult items 35c per day 35c per day

Overdue Charges - Children items 20c per day 20c per day

Maximum Overdue charge per item cost of item cost of item

Maximum Overdue charge per Member no limit no limit

Lost/totally damaged items Item cost plus $15.10 admin charge

Item cost plus $15.20 admin charge

Damaged Items (minor repairs inc. RFID tag replacement)

$5.20 $5.30

Debt Collection Charge (plus debt) $17.50 $17.60

Replacement Membership Card $3.50 $3.50

Inline with other libraries

Reservations $2.20 $2.20

Inter Library Loans – standard fee $11.10 $11.10

Inter Library Loans – from State, University or Special Library

$27.60 $27.60

Fax Services - Victoria $3.00 first page $1.10 ea following page

$3.00 first page $1.10 ea following page

Fax Services - Interstate $3.30 first page $1.10 ea following page


Fax Services - International $5.00 first page $3.30 ea following page


Received fax 50c per page 50c per page

Photocopying/Printing - Black & White A4 30c A3 50c A4 30c A3 50c

Photocopying/Printing - Colour A4 $1.30 A3 $2.00 A4 $1.30 A3 $2.00

Scanning 20c per page 20c per page

Library Bags $2.00 $2.00

Earbuds $2.00 $2.50

USB 8G $8.00 $8.20

Page markers $1.00 $1.10

Microfiche Reader Printing A4 30c A3 50c

A4 30c A3 50c

Box Hill Bert Lewis Room (formerly Meeting Room 1)

Commercial $49.00 per hour Community $23.50 per hour


Box Hill Meeting Room 2 & Vermont South Meeting Room



Box Hill Meeting Room 3



Now available for hire afterhours , includes access to amenities

Box Hill Training Room Hire $49 per hour $55 per hour

Training Room PC Hire per session $14.50 per PC Folded into room hire rate

Training Room PC Setup $165 per hour $165 per hour

Administration fee for room bookings $25.50 $26.00

Meeting Room AV Hire $42 per session AV equipment in meeting rooms

Meeting Rooms Set Up fees $52 per session $52 per session

Booking fee: Children’s School Holiday Programs

Up to $4.00 per child Up to $5.00 per child Excludes regular programs

Booking fee: Adult Programs – selected special events and high profile authors

Up to $10.00 per booking Up to $15.00 per booking

Makerspace Programs – selected programs Up to $10.00 per booking


Appendix B: Budget Process This section lists the budget processes to be undertaken in order to adopt the Budget in

accordance with the Local Government Act 1989 (the Act) and Local Government (Planning

and Reporting) Regulations 2014 (the Regulations).

Under the Act, the Corporation is required to prepare and adopt an annual budget for each

financial year. The budget is required to include certain information about the fees and

charges that the Corporation intends to levy as well as a range of other information required

by the Regulations which support the Act.

The 2019/20 budget, which is included in this report, is for the year 1 July 2019 to 30 June

2020 and is prepared in accordance with the Act and Regulations. The budget includes

financial statements being a Comprehensive Income Statement, Balance Sheet, Statement

of Changes in Equity, Statement of Cash Flows and Statement of Capital Works. These

statements have been prepared for the year ending 30 June 2020 in accordance with the Act

and Regulations, and consistent with the annual financial statements which are prepared in

accordance with Australian Accounting Standards. The budget also includes information

about the fees and charges to be levied, the capital works program to be undertaken, the

human resources required, and other financial information the Board requires in order to

make an informed decision about the adoption of the budget.

In advance of preparing the budget, officers first review and update the Corporation's long

term financial projections. Financial projections for at least four years are ultimately included

in the Corporation’s Strategic Resource Plan, which is the key medium-term financial plan

produced by the Corporation on a rolling basis. The preparation of the budget, within this

broader context, begins with officers preparing the operating and capital components of the

annual budget during December to February.

With the introduction of the State Government Rate Capping legislation in 2015, the annual

rate cap percentage amount forms the basis of the indexation of the member Councils annual

contributions to the regional library.

A ‘proposed’ budget is prepared in accordance with the Act and submitted to the Board

meeting in February whereby the Board approves the draft budget, in principle, which is then

advertised publically.


The draft budget is placed on public exhibition seeking submissions from the community. Any

person has a right to make a submission on any proposal contained in the budget under

Section 221 of the Act.

The final step is for the Board to adopt the budget after receiving and considering any

submissions from interested parties. The budget is required to be adopted by 30 June and a

copy submitted to the Minister within 28 days after adoption.

The key dates for the budget process are summarised below:

Minister of Local Government announces maximum rate

increase.

Dec

Budget preparation by Corporation officers Dec/Feb

Proposed budget presented to the Board for approval to

advertise

February 2019

Public notice advising intention to adopt budget March/April 2019

Budget available for public inspection and comment April/May 2019

Submission period closes (28 days) May 2019

Budget and submissions presented to the Board for

adoption

May 2019

Copy of adopted budget submitted to the Minister June 2019

BUDGET 2019/2020...The preparation of this budget is influenced by an number of internal and...

Documents

Transcript of BUDGET 2019/2020...The preparation of this budget is influenced by an number of internal and...