The unit contains 23 individuals. The unit’s objectives are:
- adding value to the organisation
- influencing responsible allocation of resources
- providing quality information for management decision–making
- providing confidence through financial compliance and financial risk management
- developing systems and streamlining processes
- communicating and performing the financial function effectively and efficiently
- adhering to the City of Perth’s themes of serving, leading and growing and embracing the values of teamwork, excellence and pride.
The City of Perth, as the capital city of Western Australia, covers 8.1 sq kms and has a fast growing residential population of around 19,000 with a daytime workforce population in excess of 110,000. The city raises $72 million of its total revenue of $178 million from rates.
Remaining revenue is derived from parking (the City operates 33 multi-storey and open-air car parks), property rentals, investment income and bin and general fees and charges. The City is rapidly expanding its residential population by promoting inner city living and will in the next few years take over responsibility for significant new infrastructure being developed by State Government authorities, including the City Link involving the sinking of rail lines and the construction of an underground bus station with the release of land for development and the creation of a City Square.
The team works well together because it is busy and because the unit is a great place to work. Positions are rotated particularly during leave periods. The unit promotes from within, where possible, and optimises staff abilities providing opportunities to progress. This is only limited by the fact that there is a low staff turnover. Staff mentoring is practiced extensively. Work/life balance is promoted and study assistance conditions are generous.
As Manager, Ian Berry enjoys leading a team who focus on their work but are also relaxed enough to enjoy their roles and have fun. “There are challenges to be met and goals to achieve, all of which make the role interesting and provide job satisfaction.”
WA has introduced integrated planning as a reporting framework to local government. Part of this involves the introduction of long term financial planning. Building on our previous Strategic Financial Plan Mr Berry said it was invigorating to produce a ten year plan of how the City will progress financially – minimising rate increases, optimising revenue especially from the more commercial aspects of City business, controlling operating costs and carrying out capital expenditure programs as befits an expanding capital city. Funding the above will be supplemented by accessing reserves, optimising capital grants, realising some assets and borrowing moderately and within their means.
Challenges include complying with and, indeed, embracing integrated planning especially asset management, retaining a stable workforce in a competitive labour environment, funding a $61 million state of the art library, and dealing with council amalgamation proposals, currently under consideration in WA.
Asset management is currently in another directorate, although it will be brought into their directorate later this financial year. The City has revalued its land and buildings for a number of years and progress has been made with revaluations of other fixed assets including plant and machinery. Bringing infrastructure into the financial books at fair value as opposed to cost is our greatest current challenge and will require the development of close working relationships with the Asset Management section.
The amalgamation process is at a fairly early stage. Financial services have provided information regarding the impact of various proposals on the rate base and the impact on rates charged to existing ratepayers. When amalgamation or boundary changes are promulgated the financial implications will be dealt with by the unit.
The team is working on a number of projects and strategic initiatives including:
- improving and enhancing the Long Term Financial Report both as regards to content and integrating more seamless processes, with changes to the operating statement flowing through into the balance sheet and rate-setting statements
- establishing improved sustainability reporting
- strengthening capital cost control
- improving the content of the Budget document and rigorously improving the accuracy of the budget reviews, diligently questioning forecasts from units and making unit management more accountable
- conducting a rate differential justification update exercise
- obtaining the best out of the electronic accounting systems and making full use of the enhancements recently made
- obtaining the best return from the investments, commensurate with risk and Local Government Department regulations
- maximising grants and contributions.
The Finance Team was nominated as high achievers by Deputy Lord Mayor Janet Davidson for their consistently strong financial management, accountability, risk management and governance to the City of Perth.
