Businessesand CouncilProviders

NationalCompetitionPolicy

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 2013-14 and proposed budgets for 2014-15 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 Constructionand Maintenance Operations2
  • Urban Amenities2
  • Waste 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 / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
Field Services Group* / 167,526 / 172,775 / 181,003 / 188,668
Brisbane Transport / 382,837 / 390,252 / 399,720 / 415,962
City Projects Office / 1,500 / 1,674 / 1,756 / 1,805
Total Revenue / 551,863 / 564,701 / 582,480 / 606,435
Expenses
Field Services Group* / 483,023 / 505,186 / 537,756 / 522,753
Brisbane Transport / 386,535 / 396,420 / 402,893 / 415,862
City Projects Office / 87,017 / 99,439 / 87,034 / 100,029
Total Expenses / 956,575 / 1,001,045 / 1,027,683 / 1,038,644
Less Costs allocated to internal services / 411,861 / 443,744 / 461,970 / 454,826
Total Expenses relating to external services / 544,713 / 557,302 / 565,713 / 583,818
Increase / (Decrease) in Operating Capability
Field Services Group* / 11,001 / 13,568 / 19,939 / 22,517
Brisbane Transport / -3,698 / -6,168 / -3,173 / 99
City Projects Office / -154 / 0 / 0 / 0
Increase in Operating Capability / 7,150 / 7,400 / 16,767 / 22,617
Imputed Income Tax / 4,078 / 4,044 / 5,955 / 6,759
Increase / (Decrease) in Operating Capability after Tax / 3,072 / 3,356 / 10,811 / 15,858

*Excludes Asset Services

Total Project Expenditure with Rolling Projects
Projects / 2014-15 / 2015-16 / 2016-17 / 2017-18
$000 / $000 / $000 / $000
Brisbane Transport Tools of Trade / 6,655 / 7,255 / 8,037 / 7,339
HASTUS Upgrade / 424 / 0 / 0 / 0
Brisbane Transport Total / 7,079 / 7,255 / 8,037 / 7,339
City Projects Office Tools of Trade / 107 / 109 / 110 / 0
City Projects Office Total / 107 / 109 / 110 / 0
Field Services Group Tools of Trade / 4,124 / 4,347 / 4,447 / 4,208
FSG North Depot Relocation Development / 4,082 / 1,795 / 597 / 595
Field Services Group Total / 8,206 / 6,142 / 5,044 / 4,803

BrisbaneTransport

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 a fleet of over 1200 buses which will travel approximately 71 million kilometres and carry approximately 78 million passengers in 2013-14. This represents an increase in patronage since 2004 of over 62%. The average annual increase in passenger numbers for the ten years prior to 2004 was just 0.9%. The patronage target in the Brisbane City Council’s Corporate Plan is to carry more than 90 million passengers by 2018.

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, 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 2014-15, achieve:

•mean customer satisfaction with bus services of not less than 6.5

•patronage of 80 million

•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 / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 288,856 / 296,730 / 304,148 / 317,747
Community Service Obligations / 78,257 / 80,213 / 82,219 / 84,274
Interest Revenue / 400 / 0 / 0 / 0
Other Revenue / 15,324 / 13,309 / 13,354 / 13,941
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 382,837 / 390,252 / 399,720 / 415,962
Expenses
Materials and Services / 180,079 / 187,103 / 188,851 / 192,891
Employee Costs / 203,297 / 205,698 / 210,332 / 219,095
Depreciation and Amortisation / 3,155 / 3,598 / 3,688 / 3,853
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 0 / 0 / 0 / 0
Other Expenses / 5 / 21 / 22 / 23
Total Expenses / 386,535 / 396,420 / 402,893 / 415,862
Less Costs allocated to internal services / 0 / 0 / 0 / 0
Total Expenses relating to external services / 386,535 / 396,420 / 402,893 / 415,862
Net Surplus / (Loss) before Tax / -3,698 / -6,168 / -3,173 / 99
Imputed Income Tax / 0 / 0 / 0 / 30
Increase / (Decrease) in Operating Capability after Tax / -3,698 / -6,168 / -3,173 / 70

1

Businessesand CouncilProviders

Field ServicesGroup

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 principal customers.

Key operations include:

  • Asphalt and Aggregates Branch
  • Construction Branch
  • Urban Amenities Branch
  • Operational Services Branch
  • Asset Services Branch
  • Waste 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 / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 4,475 / 6,193 / 6,306 / 5,992
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 33,239 / 30,035 / 30,871 / 31,627
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 37,714 / 36,228 / 37,177 / 37,618
Expenses
Materials and Services / 218,731 / 235,622 / 263,984 / 239,826
Employee Costs / 139,161 / 139,749 / 143,170 / 147,870
Depreciation and Amortisation / 3,755 / 3,805 / 3,599 / 3,335
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 2,202 / 229 / 241 / 239
Other Expenses / 0 / 0 / 0 / 0
Total Expenses / 363,850 / 379,406 / 410,994 / 391,270
Less Costs allocated to internal services / 326,190 / 345,978 / 376,692 / 356,602
Total Expenses relating to external services / 37,660 / 33,427 / 34,302 / 34,668
Net Surplus / (Loss) before Tax / 55 / 2,801 / 2,876 / 2,951
Imputed Income Tax / 794 / 814 / 836 / 859
Increase / (Decrease) in Operating Capability after Tax / -739 / 1,987 / 2,039 / 2,092

CivilConstructionandMaintenanceOperations

Civil Construction and Maintenance Operations is part of the Field Services Group (FSG) and provides relevant services to Council that 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.

A diverse range of services are delivered across the following operational areas:

Asphalt and Aggregates

  • operates state-of-the-art asphalt plants located at Eagle Farm and Riverview
  • conducts quarrying operations at Mt Coot-tha and Bracalba quarries, which produce an extensive range of quarry products
  • operates as a recycling facility at Pine Mountain quarry which allows the re-use of some building materials and reclaimed road base
  • conducts major and minor road surfacing, as well as road maintenance, including line marking.

Construction

  • road construction and rehabilitation
  • construction of bikeways, footpaths and kerbs 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 and sewerage 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 / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 1,969 / 5,382 / 5,475 / 5,124
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 33,239 / 29,947 / 30,783 / 31,539
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 35,208 / 35,329 / 36,258 / 36,662
Expenses
Materials and Services / 192,805 / 187,676 / 200,888 / 177,931
Employee Costs / 84,991 / 85,527 / 87,633 / 90,009
Depreciation and Amortisation / 3,216 / 3,191 / 3,274 / 3,289
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 1,915 / 213 / 225 / 223
Other Expenses / 0 / 0 / 0 / 0
Total Expenses / 282,927 / 276,608 / 292,020 / 271,452
Less Costs allocated to internal services / 247,362 / 243,804 / 258,350 / 237,443
Total Expenses relating to external services / 35,565 / 32,804 / 33,670 / 34,010
Net Surplus / (Loss) before Tax / -357 / 2,525 / 2,588 / 2,653
Imputed Income Tax / 794 / 758 / 776 / 796
Increase / (Decrease) in Operating Capability after Tax / -1,151 / 1,768 / 1,812 / 1,857

UrbanAmenities

Urban Amenities is part of the Field Services Group (FSG) and provides civil maintenance services to Council in conjunction with high-level management of service contracts that meet customer expectations in productivity, availability and value for money. This is achieved by maintaining continuous improvement in all parts of the business and by fostering an innovative, motivated and dedicated team-based workforce.

Urban Amenities delivers a broad range of services including the following NCP related activities:

  • cleaning of urban precincts and streets, including bus stops, graffiti removal, road sweeping and stormwater gully cleaning
  • delivery of arboriculture, natural area, parkland and horticultural maintenance services, including street tree maintenance
  • delivery of pest, weeds and vermin control services
  • delivery of street and project sign maintenance and installation.

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 the Council's Administrative Arrangements for the general working and business operations of Urban Amenities activities, with responsibility to the Chief Executive Officer of Council.

Urban Amenities will report on financial and non-financial outcomes, indicators and targets as contained in the Annual Plan and Budget document.

Urban Amenities / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 1,029 / 811 / 831 / 868
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 0 / 0 / 0 / 0
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 1,029 / 811 / 831 / 868
Expenses
Materials and Services / 27,958 / 23,310 / 23,058 / 23,806
Employee Costs / 40,311 / 41,065 / 42,091 / 43,859
Depreciation and Amortisation / 44 / 16 / 16 / 17
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 287 / 16 / 15 / 16
Other Expenses / 0 / 0 / 0 / 0
Total Expenses / 68,600 / 64,407 / 65,180 / 67,698
Less Costs allocated to internal services / 67,505 / 63,784 / 64,548 / 67,039
Total Expenses relating to external services / 1,095 / 623 / 632 / 658
Net Surplus / (Loss) before Tax / -66 / 188 / 199 / 210
Imputed Income Tax / 0 / 56 / 60 / 63
Increase / (Decrease) in Operating Capability after Tax / -66 / 132 / 140 / 147

WasteServices

Waste Services provides waste management and recycling services that are competitive, sustainable and environmentally responsible. These services reflect a commitment to community safety, whole of life cycle waste management and industry best practice.

Waste Services will:

  • undertake the collection and management of domestic waste and recycling materials
  • through Brisbane Waste Innovations Alliance (BWIA), ensure the transfer stations at Nudgee, Willawong, Chandler and Ferny Grove and the Brisbane landfill at Rochedale are effectively managed, with a focus on innovation in the area of environmental sustainability
  • strive to achieve environmental excellence through raising the current operating standards by using new technology and investigating Towards Zero Waste solutions
  • deliver strategies on waste minimisation management in accordance with the Towards Zero Waste Strategy
  • implement and manage the Litter Prevention strategy
  • work with industry to develop robust markets for recyclable materials
  • develop and deliver education and communication on waste management, waste minimisation and litter to improve community understanding and influence behaviour change.

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 Waste Services activities, with responsibility to the Chief Executive Officer of Council.

Waste Services will report on financial and non-financial outcomes, indicators and targets as contained in the Annual Plan and Budget document.

Waste Services / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 125,445 / 132,118 / 139,331 / 146,463
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 4,367 / 4,429 / 4,495 / 4,587
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 129,812 / 136,547 / 143,826 / 151,050
Expenses
Materials and Services / 111,963 / 119,090 / 119,957 / 124,406
Employee Costs / 4,370 / 4,294 / 4,405 / 4,698
Depreciation and Amortisation / 2,699 / 2,200 / 2,200 / 2,200
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 140 / 196 / 201 / 178
Other Expenses / 0 / 0 / 0 / 0
Total Expenses / 119,173 / 125,780 / 126,762 / 131,483
Less Costs allocated to internal services / 308 / 0 / 0 / 0
Total Expenses relating to external services / 118,865 / 125,780 / 126,762 / 131,483
Net Surplus / (Loss) before Tax / 10,947 / 10,767 / 17,064 / 19,567
Imputed Income Tax / 3,284 / 3,230 / 5,119 / 5,870
Increase / (Decrease) in Operating Capability after Tax / 7,663 / 7,537 / 11,945 / 13,697

1

Businesses and Council Providers

CityProjectsOffice

The objective of City Projects Office is to provide professional services across project management, built environment and engineering disciplines. As an in-house project management and design group, emphasis is placed on value adding, quality, design best practice, innovation, and environmental sustainability. City Projects Office continues to maintain strong customer and stakeholder relationships to ensure expectations are realised, all within the wider goal of contributing to a better Brisbane.

In 2014-15, City Projects Office will deliver high quality project management and planning and design outcomes to meet Council's engineering, built environment, land management and natural environment needs, within the framework of the Brisbane Vision.

The business will support its customers to deliver across a broad range of programs across Council.

City Projects Office proposed investments in 2014-15 are focused on maintaining industry standard tools of trade through a planned replacement program for high specification technical workstations and related design and modelling software, as well as replacing end-of-life laboratory equipment.

City Projects Office is primarily funded from Council's Annual Plan and Budget, supplemented by revenue from services supplied to Queensland and local government bodies. Surpluses after the application of the requirements of the TER are returned back to Council's consolidated revenue.

City Projects Office has nil outstanding or proposed borrowings.

The position of Divisional Manager, Brisbane Infrastructure has delegations under Council's Administrative Arrangements for the general working and business operations of City Projects Office, with responsibility to the Chief Executive Officer of Council.

City Projects Office will report on financial and non-financial outcomes, indicators and targets as contained in the Annual Plan and Budget document.

City Projects Office / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 1,500 / 1,674 / 1,756 / 1,805
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 0 / 0 / 0 / 0
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 1,500 / 1,674 / 1,756 / 1,805
Expenses
Materials and Services / 38,857 / 48,692 / 35,090 / 45,863
Employee Costs / 48,050 / 50,621 / 51,816 / 54,034
Depreciation and Amortisation / 76 / 78 / 80 / 82
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 35 / 47 / 48 / 50
Other Expenses / 0 / 0 / 0 / 0
Total Expenses / 87,017 / 99,439 / 87,034 / 100,029
Less Costs allocated to internal services / 85,363 / 97,765 / 85,278 / 98,224
Total Expenses in relation to external services / 1,654 / 1,674 / 1,756 / 1,805
Net Surplus / (Loss) before Tax / -154 / 0 / 0 / 0
Imputed Income Tax / 0 / 0 / 0 / 0
Increase / (Decrease) in Operating Capability after Tax / -154 / 0 / 0 / 0
Brisbane City Cemeteries / 2013-14 / 2014-15 / 2015-16 / 2016-17
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2015 / $000 / $000 / $000 / $000
Revenue
External Revenue / 8,573 / 8,914 / 9,145 / 9,485
Community Service Obligations / 2,600 / 2,665 / 2,732 / 2,800
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / -1,217 / -1,247 / -1,278 / -1,303
Gain/(Loss) on Disposal / 0 / 0 / 0 / 0
Total Revenue / 9,956 / 10,332 / 10,599 / 10,982
Expenses
Materials and Services / 4,748 / 4,985 / 5,499 / 5,508
Employee Costs / 3,354 / 3,437 / 3,524 / 3,681
Depreciation and Amortisation / 614 / 623 / 643 / 655
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 0 / 0 / 0 / 0
Other Expenses / 34 / 35 / 36 / 37
Total Expenses / 8,749 / 9,079 / 9,702 / 9,881
Less Costs allocated to internal services / 0 / 0 / 0 / 0
Total Expenses relating to external services / 8,749 / 9,079 / 9,702 / 9,881
Net Surplus / (Loss) before Tax / 1,207 / 1,253 / 897 / 1,101
Imputed Income Tax / 362 / 376 / 269 / 330
Increase / (Decrease) in Operating Capability after Tax / 845 / 877 / 628 / 771

CityParking

Objectives