FAQs

Community Insights (high level indicators) are included in the Four Year Delivery Plan, and enable ongoing monitoring and review of Council’s progress and effectiveness towards achieving its goals and outcomes. Community perception research on the insights will be undertaken periodically to provide Council with insight into how the community perceive Council is progressing towards achieving its vision. Initial research was undertaken in late 2020 to provide baseline information. The 34 community insights are listed in the draft 2022/23 Annual Business Plan, Budget and Long Term Financial Plan. The community insights are supported by other measures and data sources as necessary. Council’s Performance Reports are available at https://www.mitchamcouncil.sa.gov.au/council/corporate-documents/annual-reports(External link) and provide detailed measures. 

Operating Projects 

Each year, Council undertakes projects that do not result in increased ongoing costs, such as the cost of new maintenance or a commitment to deliver services into the future.

We call these ‘Operating Projects’ and our list of projects each year often includes preparing new designs, updating policies or undertaking reviews. Sometimes we are required to do these projects to comply with legislation, other times we need to do them to help run our organisation effectively.

Council will progressively review the funding allocated to Operating Projects during the year to respond to emerging and changing demands, priorities and opportunities. 

Capital Projects

Capital projects involve creating new assets or replacing / upgrading existing assets. ‘Assets’ are physical things like footpaths, playgrounds and buildings. New assets incur ongoing costs, such as interest, maintenance and depreciation. Replacing our assets does not increase Council’s ongoing costs as maintenance and depreciation is already built into the budget.

Excluding growth means not including new properties as a result of developments that didn’t exist at the time of setting the rates.  It is a common term used across local government although lots of Council’s don’t disclose that the stated rates increase is “excluding growth” or “plus growth” as some Council’s term it. We have done so to be as transparent as possible.

Within a twelve-month delivery window, the first half of the year is typically spent undertaking activities such as planning, design, consultation, procurement of construction works and getting on-site works underway.  Consequently, a significant portion of construction, and therefore spend, occurs in the 2nd half of the financial year.

As with any construction program, particularly of the scale and diversity of Council’s, there are a number of delivery risks associated with the implementation of each project on the capital works program, these delivery risks typically relate to consultation, contractor and resource availability and weather conditions. Should these risks materialise projects often require rescheduling to ensure effective outcomes are achieved.  

Council’s focus continues to be on delivering its asset replacement projects efficiently and effectively, ensuring value for money whilst maximising community outcomes.  Additional elements are often incorporated to create greater value for the community, these can include Water Sensitive Urban Design (WSUD) greening features, tree plantings, network connectivity assessments, local urban heat island impacts and long term climate change impacts.  It can often be advantageous to reschedule projects to ensure the best project outcomes and community benefits are achieved.

Asset renewals are identified primarily by asset condition in order ensure that agreed condition-based service levels are met. Once identified, individual assets are reviewed with respect to their surrounding streetscape and open space.

Asset renewal and asset maintenance activities are funded and delivered quite differently. 

The asset ‘backlog’ refers to the renewal (replacement) of assets considered beyond their theoretical useful life.  Asset maintenance refers to the ongoing management of defects associated with Council’s existing assets.

All infrastructure assets are routinely condition assessed, and it is these condition scores than inform the renewal programs.  Renewal funding is set in alignment with future asset renewal requirements over a 10 year period and as such can fluctuate on an annual basis depending on the extent of renewals.  Asset maintenance is set with respect to the extent of the entire asset network, inclusive of new infrastructure, and is undertaken in accordance with operational service levels.

The existing asset renewal ‘backlog’ is a result of previously deferred renewals rather than deferred maintenance – there has been no deferral of asset maintenance.  The Long Term Financial Plan has already allocated renewal funding sufficient to clear the asset renewal backlog in the near future, and maintenance for all assets (including those classed as ‘in backlog’) will continue on an annual basis.

The investment in new assets is a process by which resident requests can be funded through approval of the Elected Member body, or as a result of external funding received.

Asset condition and financial sustainability are key metrics for asset renewal forecasting and these ratios are mandated financial based ratios; however, they are not the only considerations.  There are a number of additional elements that are incorporated into renewal decisions to create greater value for the community.  These include Water Sensitive Urban Design (WSUD) features, tree plantings, network connectivity assessments, local urban heat island impacts and long term climate change impacts.  The City of Mitcham has invested strongly in the establishment of baseline data through which future environmental sustainability metrics will be able to be objectively measured alongside financial indicators.  Such baseline data includes Council tree canopy cover, surface temperature mapping and future climate risk indicator mapping.

As new assets are constructed the future maintenance requirements are identified and an increase in the maintenance budgets is allocated, to provide for the additional maintenance expenditure required.  This is in addition to the existing maintenance budgets.