A new resource allocation model is helping the City of Gosnells in Western Australia link its annual budget and strategic plan in a way that is equitable and transparent.
All capital expenditure over $5,000 must now go through an assessment process to ensure they fall into the following criteria.
- A sustainable environment
- A harmonious community
- A prosperous and diverse economic base
- Ensuring Council is a customer focused organisation
- Communicating a positive image of the City.
Council believes this is a unique process in Australian Local Government and a fairer method of allocating resources.
Gosnells aims to ensure funding requested under the RAM system is spent within the budget year to significantly reduce ‘carry overs’ and prepare a four year capital expenditure plan. The system works by Council officers completing a form that scores each of the five categories from 1 to 100 and provides an explanation of how they arrived at the points scored.
There is a formula for calculating a project’s inherent value using the median of projects in the previous year’s budget. Additional points are given if a project has external funding, if capital expenditure will reduce future maintenance and on the breadth of the benefit to the community. All costs are based on present day value, with CPI calculated at a later date by Council’s Financial Services Unit.
For further information contact Director of Corporate Services, Ron Bouwer, email rbouwer@gosnells.wa.gov.au or telephone (08) 9391 3250.
