Business and Council Providers-
Annual Plan and
Budget
2015-16
Including Forward Estimates
2016-17 to 2018-19
Presented and submitted to the Council on
Wednesday, 17 June 2015 by the Right
Honourable the Lord Mayor of Brisbane
(Councillor Graham Quirk)
- 1 -
National Competition Policy
Council Providers and Businesses deliver products and services.
This disclosure in relation to National Competition Policy (NCP) is made to satisfy the City of Brisbane Act 2010.
A Budgeted Income Statement showing the anticipated 2014-15 and proposed budgets for 2015-16 and the next two financial years, and a brief description of the role of the Businesses and Council Providers delivering the following business activities is provided.
NCP Business Activities
· Brisbane Transport1
· Civil Construction and Maintenance Operations2
· Urban Amenities2
· Waste and Resource Recovery Services2
· City Projects Office3
· Brisbane City Cemeteries3,5
· City Parking1,6
· Golf Courses3,4
· Sports and Aquatic Centres3,4
· City Hall Precinct3
· Asset Portfolio Management3,7
Notes:
1. Council has resolved to apply commercialisation to these business activities.
2. Council has resolved to apply full cost pricing to these business activities.
3. Council has resolved to apply the Code of Competitive Conduct to these business activities.
4. Golf Courses and Sports and Aquatic Centres are managed by City Venues.
5. Narrative for Brisbane City Cemeteries can be found on Service 5.3.1.1 City Cemeteries.
6. Narrative for City Parking can be found on Service 2.3.4.2 City Parking.
7. Asset Portfolio Management’s external revenue includes non-contestable work.
Business Activities - Summary / 2014-15 / 2015-16 / 2016-17 / 2017-18Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2016 / $000 / $000 / $000 / $000
Revenue
Field Services Group* / 179,764 / 175,608 / 185,087 / 193,236
Brisbane Transport / 389,361 / 399,641 / 417,101 / 419,369
City Projects Office / 1,674 / 1,731 / 1,759 / 1,791
Total Revenue / 570,799 / 576,980 / 603,947 / 614,396
Expenses
Field Services Group* / 516,158 / 530,961 / 517,442 / 533,300
Brisbane Transport / 387,334 / 398,592 / 416,381 / 418,849
City Projects Office / 95,460 / 79,698 / 90,157 / 98,617
Total Expenses / 998,952 / 1,009,251 / 1,023,980 / 1,050,766
Less Costs allocated to internal services / 441,030 / 444,003 / 440,290 / 457,631
Total Expenses relating to external services / 557,922 / 565,248 / 583,690 / 593,135
Increase / (Decrease) in Operating Capability
Field Services Group* / 10,815 / 10,682 / 19,537 / 20,741
Brisbane Transport / 2,028 / 1,049 / 720 / 520
City Projects Office / 35 / - / - / -
Increase in Operating Capability / 12,878 / 11,731 / 20,257 / 21,261
Imputed Income Tax / 3,834 / 3,520 / 6,078 / 6,379
Increase / (Decrease) in Operating Capability after Tax / 9,044 / 8,211 / 14,180 / 14,883
*Excludes Asset Services
Total Project Expenditure Combined with Rolling ProjectsProject / 2015-16 / 2016-17 / 2017-18 / 2018-19
$000 / $000 / $000 / $000
Brisbane Transport Tools of Trade / 5,241 / 6,262 / 7,170 / 7,385
Brisbane Transport Total / 5,241 / 6,262 / 7,170 / 7,385
City Projects Office Tools of Trade / 198 / 197 / 90 / 92
City Projects Office Total / 198 / 197 / 90 / 92
Field Services Group Tools of Trade / 3,238 / 4,406 / 4,159 / 4,294
FSG Depot Enhancement Project / 796 / 589 / 581 / 547
Quarry Maintenance and Enhancement Project / 469 / - / - / -
Field Services Group Total / 4,503 / 4,995 / 4,740 / 4,841
Brisbane Transport
Objectives
Brisbane Transport is one of the largest bus operators in Australia and Brisbane's major provider of public transport. Brisbane Transport’s objective is to provide frequent, reliable and safe services with more buses, more often, and at the most comfortable standard possible for our passengers.
Role
Brisbane Transport has the second largest bus fleet in Australia which will travel approximately 71 million kilometres delivering high-quality services focusing on accessibility, safety, and customer service to contribute to reducing traffic congestion and associated adverse environmental impacts.
Record investment over recent years in public transport has resulted in more than 66% growth in combined bus and ferry patronage since 2003-14.
This was achieved by:
· an unprecedented program of acquisition of environmentally friendly, air-conditioned and accessible buses
· acquiring 13 additional CityCats, including two new CityCats in 2014-15
· the rollout of BUZ, the Blue CityGlider and the Maroon CityGlider.
Brisbane Transport provides scheduled network passenger bus services including high frequency BUZ and City and Maroon Glider services, school services, charter services and special event services. The services include non-commercial and community bus services and concessional travel for senior citizens, full time university students, school students and for disadvantaged members of the community. A modern, wheelchair-accessible, well-maintained, clean and carbon neutral bus fleet and strategically positioned depots ensure these services are delivered.
Brisbane Transport operates public transport services under a TransLink services contract with the Queensland Government. Under the TransLink services contract, fares are set by Queensland Government and all fare revenue belongs to it.
Financial and Non-Financial Targets
In 2015-16, achieve:
· mean customer satisfaction with bus services of not less than 6.5
· take delivery of 60 new rigid equivalent buses.
Community Service Obligations
Brisbane Transport receives partial funding for the services it operates from Council to enable better service to Brisbane ratepayers.
Cost of Community Service Obligations
Community Service Obligation funding by Council is stated in Brisbane Transport’s Budgeted Income Statement.
Notional Capital Structure and Surpluses
Brisbane Transport's notional capital structure is via equity funding from Council. Surpluses are treated in accordance with Council's dividend policy for Business Units after the application of the requirements of the Tax Equivalents Regime (TER) with any TER income tax remitted to Council.
Proposed Major Investments
There are no proposed major investments.
Borrowings
Brisbane Transport has nil outstanding or proposed borrowings.
Service Quality
Brisbane Transport will provide frequent, reliable and safe services at the most comfortable standard possible for passengers.
Delegations
The position of Divisional Manager, Brisbane Transport has delegations under the Council's Administrative Arrangements for the general working and business operations of Brisbane Transport, with responsibility to the Chief Executive Officer of Council.
Reportable Information
Brisbane Transport will report to Council regarding its operations and performance, including financial and non-financial targets.
Brisbane Transport / 2014-15 / 2015-16 / 2016-17 / 2017-18Budgeted Income Statement
/ Anticipated / Proposed / Proposed / ProposedFor the Year Ending 30 June 2016 / $000 / $000 / $000 / $000
Revenue
External Revenue / 294,030 / 304,148 / 317,747 / 319,545
Community Service Obligations / 80,213 / 81,978 / 85,392 / 85,624
Interest Revenue / - / - / - / -
Other Revenue / 15,118 / 13,515 / 13,962 / 14,199
Gain/(Loss) on Disposal / - / - / - / -
Total Revenue / 389,361 / 399,641 / 417,101 / 419,368
Expenses
Materials and Services / 181,949 / 188,900 / 197,768 / 198,157
Employee Costs / 201,765 / 206,356 / 215,123 / 217,182
Depreciation and Amortisation / 3,598 / 3,314 / 3,467 / 3,487
Finance Costs / - / - / - / -
Competitive Neutrality Costs / - / - / - / -
Other Expenses / 21 / 22 / 23 / 23
Total Expenses / 387,333 / 398,592 / 416,381 / 418,849
Less Costs allocated to internal services / - / - / - / -
Total Expenses relating to external services / 387,333 / 398,592 / 416,381 / 418,849
Net Surplus / (Loss) before Tax / 2,028 / 1,049 / 720 / 519
Imputed Income Tax / 608 / 315 / 216 / 156
Increase / (Decrease) in Operating Capability after Tax / 1,420 / 734 / 504 / 363
Field Services Group
Field Services Group is tasked with the delivery of a total civil construction and maintenance service to Council in conjunction with the high level management of service contracts.
The role of Field Services Group is to be a competitive provider of quality and value for money services to Brisbane ratepayers as Field Services Group's principle customers.
Key operations include:
· Asphalt and Aggregates Branch
· Construction Branch
· Urban Amenities Branch
· Operational Services Branch
· Asset Services Branch
· Waste and Resource Recovery Services Branch
Note the NCP activities carried out under these operations are described in the Businesses and Council Providers overview.
Field Services Group is primarily funded from Council's Annual Plan and Budget, supplemented by revenue from services supplied to the Queensland and local government bodies. Surpluses after the application of the requirements of the TER are returned back to Council's consolidated revenue. Field Services Group has nil outstanding or proposed borrowings.
As a quality endorsed business, Field Services Group’s objective is to provide civil construction and maintenance services to Council that will meet customer expectations in productivity, availability and value for money. This will be achieved by maintaining continuous improvement in all parts of the business and by fostering an innovative, motivated and dedicated team-based workforce.
The position of Executive Manager, Field Services Group has delegations under the Council's Administrative Arrangements for the general working and business operations of Field Services Group, with responsibility to the Chief Executive Officer of Council.
Field Services Group will report on financial and non-financial outcomes, indicators and targets as contained in the Annual Plan and Budget document.
Field Services Group / 2014-15 / 2015-16 / 2016-17 / 2017-18Budgeted Income Statement
/ Anticipated / Proposed / Proposed / ProposedFor the Year Ending 30 June 2016 / $000 / $000 / $000 / $000
Revenue
External Revenue / 5,832 / 4,687 / 5,300 / 4,961
Community Service Obligations / - / - / - / -
Interest Revenue / - / - / - / -
Other Revenue / 35,935 / 30,783 / 31,539 / 32,233
Gain/(Loss) on Disposal / - / - / - / -
Total Revenue / 41,767 / 35,470 / 36,839 / 37,194
Expenses
Materials and Services / 238,589 / 248,729 / 228,633 / 237,791
Employee Costs / 141,726 / 145,110 / 151,264 / 152,266
Depreciation and Amortisation / 4,890 / 4,293 / 4,276 / 4,255
Finance Costs / - / - / - / -
Competitive Neutrality Costs / 233 / 205 / 220 / 215
Other Expenses / - / - / - / -
Total Expenses / 385,438 / 398,337 / 384,393 / 394,527
Less Costs allocated to internal services / 347,209 / 366,035 / 351,892 / 360,805
Total Expenses relating to external services / 38,229 / 32,302 / 32,501 / 33,722
Net Surplus / (Loss) before Tax / 3,538 / 3,168 / 4,338 / 3,472
Imputed Income Tax / 1,035 / 950 / 1,301 / 1,042
Increase / (Decrease) in Operating Capability after Tax / 2,503 / 2,218 / 3,037 / 2,430
Civil Construction and Maintenance Operations
Civil Construction and Maintenance Operations is part of the Field Services Group and provides relevant services to Council that meet customer expectations in quality, productivity, availability and value for money. This will be achieved by maintaining continuous improvement in all parts of the business and by fostering an innovative, motivated and dedicated team-based workforce.
A diverse range of services are delivered across the following operational areas:
Asphalt and Aggregates
· operates highly efficient asphalt plants located at Eagle Farm and Riverview
· conducts quarrying operations at Mt Coot-tha and Bracalba quarries, producing an extensive range of road and quarry products
· operates a recycling facility at Pine Mountain quarry which allows the re-use of concrete materials, reclaimed road base and asphalt
· conducts major road resurfacing, minor road maintenance services and line marking.
Construction
· road construction and rehabilitation
· construction of bikeways, footpaths and kerb and channel
· construction, stabilisation and maintenance of steel, timber and concrete bridges
· construction, stabilisation and maintenance of retaining walls and embankments
· manufacture, installation and operation of traffic management systems
· services in local and major drainage, and stormwater projects
· trade services and construction management for Council-owned offices, industrial locations, entertainment facilities and heritage buildings.
Surpluses after the application of the requirements of the TER are returned back to Council's consolidated revenue.
The position of Executive Manager, Field Services Group has delegations under Council's Administrative Arrangements for the general working and business operations of Civil Construction and Maintenance activities, with responsibility to the Chief Executive Officer of Council.
Civil Construction and Maintenance Operations will report on financial and non-financial outcomes, indicators and targets as contained in the Annual Plan and Budget document.
Civil Construction and Maintenance Operations / 2014-15 / 2015-16 / 2016-17 / 2017-18Budgeted Income Statement
/ Anticipated / Proposed / Proposed / ProposedFor the Year Ending 30 June 2016 / $000 / $000 / $000 / $000
Revenue
External Revenue / 4,959 / 3,856 / 4,432 / 4,088
Community Service Obligations / - / - / - / -
Interest Revenue / - / - / - / -
Other Revenue / 35,847 / 30,783 / 31,539 / 32,233
Gain/(Loss) on Disposal / - / - / - / -
Total Revenue / 40,806 / 34,639 / 35,971 / 36,321
Expenses
Materials and Services / 193,208 / 189,312 / 173,695 / 184,536
Employee Costs / 86,562 / 88,474 / 92,425 / 92,850
Depreciation and Amortisation / 4,275 / 4,205 / 4,186 / 4,197
Finance Costs / - / - / - / -
Competitive Neutrality Costs / 217 / 190 / 204 / 199
Other Expenses / - / - / - / -
Total Expenses / 284,262 / 282,181 / 270,510 / 281,782
Less Costs allocated to internal services / 246,651 / 250,505 / 238,639 / 248,710
Total Expenses relating to external services / 37,611 / 31,676 / 31,871 / 33,072
Net Surplus / (Loss) before Tax / 3,195 / 2,963 / 4,100 / 3,249
Imputed Income Tax / 959 / 889 / 1,230 / 975
Increase / (Decrease) in Operating Capability after Tax / 2,236 / 2,074 / 2,870 / 2,274
Urban Amenities