Business Units and Council Providers
Council Providers and Business Units 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 2011-12 and proposed budgets for 2012-13 and the next two financial years and a brief description of the role of the Business Units and Council Providers delivering the following business activities is provided.
NCP Business Activities
· Brisbane Transport1
· Civil Construction and Maintenance Operations2,8
· Urban Amenities2,9
· Fleet Services3
· Waste Services2
· City Projects Office3
· Brisbane City Cemeteries3,5
· City Parking1,6
· Golf Courses3,4
· Sports and Aquatic Centres3,4
· Scientific Analytical Services (SAS) Laboratory3,7
· Asset Portfolio Management3,10
· Spatial Information Services (SIS)3
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 6.3.1.1 City Cemeteries.
6. Narrative for City Parking can be found on Service 3.3.4.2 City Parking.
7. Narrative for Scientific Analytical Services (SAS) Laboratory can be found on Service 6.1.3.1 SAS Laboratory.
8. These business activities were previously reported under Brisbane CityWorks, City Building and Maintenance Services, and Water Meter Workshop. From 1 July 2012 these activities will be consolidated under Civil Construction and Maintenance Operations which is part of the Field Services Group with full cost pricing. This change has minimal impact on NCP disclosure.
9. These business activities were previously reported under Brisbane CityWorks, and Local Asset Services. From 1 July 2012 these activities will be consolidated under Urban Amenities which is part of the Field Services Group with full cost pricing. This change has minimal impact on NCP disclosure.
10. This business activity was previously reported under City Property.
Business Activities - Summary / 2011-12 / 2012-13 / 2013-14 / 2014-15Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2013 / $000 / $000 / $000 / $000
Revenue
Field Services Group* / 498,778 / 522,893 / 527,046 / 551,648
Brisbane Transport / 344,298 / 378,105 / 408,638 / 424,277
City Projects Office / 55,665 / 57,701 / 55,179 / 52,975
Total Revenue / 898,741 / 958,699 / 990,863 / 1,028,901
Expenses
Field Services Group* / 485,335 / 510,122 / 510,009 / 536,909
Brisbane Transport / 346,158 / 378,489 / 408,453 / 424,078
City Projects Office / 52,302 / 56,080 / 54,955 / 52,746
Total Expenses / 883,795 / 944,690 / 973,417 / 1,013,733
Increase / (Decrease) in Operating Capability
Field Services Group* / 13,443 / 12,771 / 17,037 / 14,739
Brisbane Transport / -1,860 / -384 / 186 / 200
City Projects Office / 3,363 / 1,621 / 223 / 229
Increase in Operating Capability / 14,945 / 14,009 / 17,446 / 15,168
Imputed Income Tax / 5,042 / 5,854 / 5,909 / 5,154
Increase / (Decrease) in Operating
Capability after Tax / 9,904 / 8,155 / 11,537 / 10,014
* Excludes Asset Services
Total Project Expenditure Combined with Rolling Projects
Project / 2012-13
$000 / 2013-14
$000 / 2014-15
$000 / 2015-16
$000
Field Services Group
Field Services Group - Tools of Trade / 3,960 / 4,059 / 4,160 / 4,273
Fleet Services Group - Fleet Services Tools of Trade / 15 / 15 / 16 / 16
Total / 3,975 / 4,074 / 4,176 / 4,289
City Projects Office
Survey Equipment - Schedule / 50 / 51 / 53 / 54
City Projects Office Tools of Trade / 188 / 172 / 177 / 200
Total / 238 / 223 / 229 / 254
Brisbane Transport
Brisbane Transport Tools of Trade / 5,290 / 5,452 / 5,558 / 5,708
HASTUS Upgrade / 143 / 178 / 367 / 0
New Bus Depot - Fitout / 1,323 / 0 / 0 / 0
On-Bus CCTV Corporate Integration / 1,500 / 0 / 0 / 0
Total / 8,256 / 5,630 / 5,925 / 5,708
Brisbane Transport
The objective of Brisbane Transport is to provide frequent, reliable and safe services with more buses, more often, and at the most comfortable standard possible for our passengers. It is one of the largest bus operators in Australia and Brisbane's major provider of public transport. Brisbane Transport has a fleet of over 1200 buses which will travel approximately 69 million kilometres and carry close to 80 million passengers in 2011-12. This represents an increase in patronage since 2004 of over 66%. The average annual increase in numbers for the ten years prior to 2004 was just 0.9%.passenger
Brisbane Transport provides scheduled network passenger bus services, school services, charter services and special event services and City Sight tours to residents and visitors of Brisbane. 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 Queensland Government. The services operated 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 and environmental initiatives.
Under the TransLink services contract, all fare revenue belongs to the State Government while Brisbane Transport receives funding for the services it operates from both State Government and Council. Funding received from Council in 2011-12 is $67.3 million.
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.
Brisbane Transport has nil outstanding or proposed borrowings.
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.
Brisbane Transport will report on financial and non financial outcomes, indicators and targets as contained in the Annual Plan and budget document.
Budgeted Income Statement
For the Year Ending 30 June 2013 / 2011-12 / 2012-13 / 2013-14 / 2014-15
Anticipated / Proposed / Proposed / Proposed
$000 / $000 / $000 / $000
Revenue
External Revenue / 256,856 / 286,599 / 314,844 / 328,138
Internal Revenue / 1,544 / 520 / 533 / 546
Community Service Obligations / 67,310 / 73,363 / 75,197 / 77,077
Interest Revenue / 635 / 724 / 742 / 760
Other Revenue / 17,953 / 16,900 / 17,322 / 17,755
Gain/(Loss) on Disposal - Other Assets / 0 / 0 / 0 / 0
Total Revenue / 344,298 / 378,105 / 408,638 / 424,277
Expenses
Materials and Services / 148,925 / 166,082 / 176,302 / 181,927
Employee Costs / 192,436 / 207,099 / 226,710 / 236,574
Depreciation and Amortisation / 2,182 / 1,994 / 2,044 / 2,095
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 0 / 0 / 0 / 0
Other Expenses / 2,614 / 3,314 / 3,396 / 3,481
Total Expenses / 346,158 / 378,489 / 408,453 / 424,078
Net Surplus / (Loss) before tax / -1,860 / -384 / 186 / 200
Imputed Income Tax / 0 / 0 / 56 / 60
Increase / (Decrease) in Operating
Capability after Tax / -1,860 / -384 / 130 / 140
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 principal customers.
Key operations include:
- Asphalt & 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 Business Unit and Council Providers overview.
Field Services Group is primarily funded from Council's Annual Plan and Budget, supplemented by revenue from services supplied to state and local government bodies, including Queensland Urban Utilities. Surpluses after the application of the requirements of the Tax Equivalents Regime (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 Groups' 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.
Budgeted Income Statement
For the Year Ending 30 June 2013 / 2011-12 / 2012-13 / 2013-14 / 2014-15
Anticipated / Proposed / Proposed / Proposed
$000 / $000 / $000 / $000
Revenue
External Revenue / 79,284 / 73,436 / 75,272 / 77,154
Internal Revenue / 302,308 / 323,200 / 317,366 / 333,903
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 800 / 0 / 0 / 0
Other Revenue / 899 / 1,105 / 1,133 / 1,161
Gain/(Loss) on Disposal - Other Assets / 0 / -961 / 0 / 0
Total Revenue / 383,291 / 396,781 / 393,771 / 412,218
Expenses
Materials and Services / 228,848 / 249,460 / 242,924 / 261,594
Employee Costs / 142,056 / 135,984 / 139,384 / 142,869
Depreciation and Amortisation / 3,560 / 3,954 / 4,053 / 4,154
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 2,559 / 2,930 / 3,003 / 3,078
Other Expenses / 2,099 / 3,802 / 286 / 294
Total Expenses / 379,122 / 396,130 / 389,651 / 411,988
Net Surplus / (Loss) before tax / 4,169 / 651 / 4,120 / 230
Imputed Income Tax / 1,251 / 1,732 / 1,911 / 672
Increase / (Decrease) in Operating
Capability after Tax / 2,918 / -1,081 / 2,209 / -443
Civil Construction and Maintenance Operations
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 Operations:
· 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
· water reticulation to main connections, maintenance and pipeline testing
· services in local and major drainage, and stormwater and sewerage projects.
Building and Maintenance Services:
· facility management, trade services and construction management for Council owned offices, industrial locations, entertainment facilities and heritage buildings.
Water Meter Workshops:
· NATA accredited water meter maintenance and testing facilities.
Surpluses after the application of the requirements of the Tax Equivalents Regime (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.
Operations
Budgeted Income Statement / Anticipated / Proposed / Proposed / Proposed
For the Year Ending 30 June 2013 / $000 / $000 / $000 / $000
Revenue
External Revenue / 74,678 / 68,942 / 70,665 / 72,432
Internal Revenue / 224,840 / 244,563 / 236,728 / 251,250
Community Service Obligations / 0 / 0 / 0 / 0
Interest Revenue / 0 / 0 / 0 / 0
Other Revenue / 0 / 0 / 0 / 0
Gain/(Loss) on Disposal - Other Assets / 41 / -961 / 0 / 0
Total Revenue / 299,559 / 312,544 / 307,394 / 323,681
Expenses
Materials and Services / 197,177 / 211,151 / 203,561 / 221,309
Employee Costs / 88,673 / 84,813 / 86,933 / 89,107
Depreciation and Amortisation / 2,921 / 3,253 / 3,335 / 3,418
Finance Costs / 0 / 0 / 0 / 0
Competitive Neutrality Costs / 2,328 / 8,439 / 8,300 / 8,739
Other Expenses / 75 / 129 / 132 / 135
Total Expenses / 291,174 / 307,785 / 302,261 / 322,708
Net Surplus / (Loss) before tax / 8,384 / 4,759 / 5,133 / 974
Imputed Income Tax / 2,515 / 1,428 / 1,540 / 292
Increase / (Decrease) in Operating
Capability after Tax / 5,869 / 3,332 / 3,593 / 682
Urban Amenities
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 will be achieved by maintaining continuous improvement in all parts of the business and by fostering an innovative, motivated and dedicated team-based workforce.