2011/12 budget concept forum 14 th june 2011. after beginning 2010/11 with a $193,000 cash deficit ...
TRANSCRIPT
After beginning 2010/11 with a $193,000 cash deficit
Expected break even position at end of year
2010/11 Budget Outcomes
Reserve Amount June 2011
Comments
Reserve•Staff leave•Plant replacement•Infrastructure/Building•Sitting Fees (elected members)•Library leave•Library infrastructure•Green Funds•Roads•POS
$888,597 Final project payment still outstanding ($50,000?)
RLCIP $60,000 Grants still to be paid out
Status of Reserves
Refer Status Report Sump Rationalisation Project ($400,000 estimate for under road sump option)
New Integrated Planning Framework see handouts
◦ Community Plan◦ Strategic Corporate Plan◦ Town Planning Strategy and Scheme◦ Asset Management Plan ◦ Long Term Financial Plan ◦ Capacity Plan (HR Plan, IT Plan)◦ Annual Business Plan and Budget
Disability Access and Inclusion Plan Customer Management Plan Traffic Management Initiatives
◦ The Esplanade/Lilla Street - $15,000◦ Hurstford Close - $1000 - $10,000◦ Stirling Hwy/Leake St – 5,000◦ McNeil Street/Stirling Hwy - $90,000
2010/11 Business Plan Status
Reduced from 5% to 3% from 1 July 2011
No impact on rate setting but will reduce income on interim rates raised on any vacant land during the year
New Rate on Vacant Land
Peppermint Grove staff will be responsible for 75% of the cost of landscaping maintenance –additional $12,500 for materials and contract services.
Utilities increased by 3 times due to increased building size and some tariff price increases.
Cleaning costs increased due to size of building. Maintenance costs increased due to complexity
of building and its systems. Insurance increased by 10%.
New Building
WMRC rubbish charge increased by $11 per tonne
Contract day labour 5 people x1day per week
Continue contracted bulk rubbish service $5,000 increase in tipping fees due to quantity
Rubbish Service
Final completion of project
◦ Bore issue◦ Cafe◦ Street furniture◦ On-going maintenance◦ Performance management
Other Impacts
Cafe redevelopment (No capital funds allocated – consultancy only)
River wall urgent repairs $50,000 (POS Reserve?)
Foreshore Strategy
Bulk Rubbish (Incredible Bulk) $33,000 Use of contract labour for valet weekly
rubbish collection
Rubbish Service
Traffic management $15,000 Integrated Planning $5,000 WESROC projects $20,000 Cafe redevelopment $??? Feasibility Study for Board Walk $40,000 Disability Access and Inclusion Plan $8,000
Consultants
Pontoon Board Walk $40,000 New mower $12,800 (secondhand - reserves)
2 vehicles for changeover (reserves)
Reticulation control box x 2 $16,000 (POS)
Bus Shelter (Leake St) $15,000 Summer Community concert at Manners Hill
$10,000 (grant) Safety barrier upgrade The Esplanade
$17,600
Other Initiatives & Key Expenditure
Election expenses $9,100 Revaluation $9,000 Interest on loan $66,000 Principal on loan $17,000 Playground safety inspections $1,200 Street trees and advice +$8,000 Street sweeping +$15,000 ROW repairs/maintenance $30,000 ROW drainage $15,000 Mosman Park Men’s Shed $5,000
Manager Corporate Services to discuss Model to table
Outsourced Valet Service $279,000 – business case to be developed?
Separate Rubbish Charge
Budget for $40,000 Actual 2010/11 $65,000 Encourages early payment – cash flow
benefit Allows for interest earnings Approx 66% of ratepayers take advantage
of discount Manager Corporate Services to discuss
Discount on Rates
1% = $19,000
Our Rating History
Year Rate Increase
2010/11 10%
2009/10 9%
2008/09 6%
2007/08 6%
2006/07 5%
LGA % LGA % LGA %
Exmouth 4 Melville 4 Irwin 4
Wyalkatchem 4.1 Vincent 4.25
Belmont 4.5
Busselton 4.5 Murray 4.5 Mandurah 4.75
Gosnells 4.9 Dalwalinu 4-5 Joondalup 5
Halls Creek 5 East Fremantle 5 Augusta-MR 5
Broome 5 Perth 5.05
Cockburn 5.5
South Perth 6 Bayswater 6 Swan 6
Bassendean 6 Capel 6 Pt Hedland 7
Geraldton 7.6 Vic Park 8 Roebourne 5+
Mundaring 8.5 East Pilbara 3-5 Donnybrook 7-8
Cottesloe 4.95
Subiaco 8.5 Bunbury 6-7
Claremont5% + 1.25% for WMRC subsidy
6 Nedlands ? Mosman Park ?
Draft Budget Assumptions 10% rate increase Reserves for funding of most capital Sitting fees from reserves Increased non discretionary costs related to new
building CPI March Quarter 2.8% EBA annual increase 3.5% Same income generated irrespective of rubbish
charge method Revaluation will have differing affect on individual
properties but will not impact on overall rate setting to achieve target rate revenue
Retaining rates discount at $40,000 cost