2010/2011 City of Melville Budget “Financially Sound”

“The 2010/2011 Budget continues the City of Melville’s objective of delivering responsible budgets with a view to the long, rather than short-term financial position of the City,” Dr Silcox said.

“This position is due to the decisions taken by the Council in previous years, to address the issue of the historical under funding of asset maintenance and renewal, as well as a marked improvement in the value of the City’s investments and the rebuilding of reserve account balances back to a level equal to pre-global financial crisis levels.

“In the course of formulating the Budget, officers have ensured that: appropriate levels of service are maintained; increased costs of operating are provided for; appropriate funding levels are set aside for proactive asset maintenance, refurbishment and renewal; and the operational capacity of assets is maintained.

“All this has been achieved without resorting to loan borrowings. This is a very comfortable and responsible Budget.”

Highlights of the 2010/2011 Budget include allocations made in the Capital Works Program:

• $5.05 million for the Melville Recreation & Aquatic Centre upgrades;
• $5.06 million for road and car park resurfacing projects;
• $3.10 million to complete the development of the former Melville Primary School;
• $4.50 million for year one of two of the South Attadale Underground Power project;
• $3.85 million for various road, car park and traffic management improvement projects;
• $2.45 million for plant and vehicle replacements;
• $1.79 million for various major maintenance works
• $1.53 million for drainage works;
• $1.15 million for new and replacement footpaths;
• $937,700 for information technology hardware and software purchase and replacements;
• $886,500 for environmental and foreshore improvement projects;
• $600,000 for renewal of reticulation;
• $433,000 for replacement playground equipment and installation of outdoor exercise equipment
• $275,000 jetties and boardwalks refurbishment works.

“It’s also important to note that the rates charge delivers to ratepayers more than 200 products and services. In this 2010/2011 Budget, a rates increase was necessary because the City’s costs have gone up at a greater rate than revenue from other sources. These costs include electricity, water, gas, contractors’ and employee costs,” Dr Silcox said.

The 2010/2011 Budget includes a rates increase of 4.25 per cent (this amounts to 73 cents per week or $38 per annum).

“The City could deliver a budget with no rate increases. However to do this, it would be required to reduce service levels, reduce expenditure on capital works or defer maintenance of its assets to future years. These actions simply create a false sense of economy and will result in increased costs being passed on to future ratepayers,” Dr Silcox said.

“Evidence is also emerging that decisions taken by other local authorities in past years to impose rate increases pegged to the Consumer Price Index (CPI), has now resulted in them being required to past on successive rate increases well in excess of CPI.”

Other changes include an increase in the refuse charge for City of Melville residents to $360.00 (or $320 for eligible pensioners) – an increase of $15. This is due to the City of Canning’s withdrawal from the SMRC.

The Property Security and Surveillance Service Charge has also increased $4 from $44.50 to $48.50 per property. This is the first increase in three years.

The Swimming Pool Inspection Fee has increased from $16.60 to $25.60 inclusive of GST.

Overall, the average increase for homeowners (including rates, rubbish and security) is $57 per annum.

Mayor Russell Aubrey said the 2010/2011 Budget demonstrated the City was “financially healthy” and being managed “appropriately”.

“The budget has been prepared after careful consideration of the strategic, asset management, community and operational costs and revenues of the City. After the global financial crisis, it reveals a welcome return to normal operating conditions and secures a strong financial position for the City,” the Mayor said.

“Importantly, the hard decisions made by the Council in past years have ensured that an appropriate level of funding is now available to maintain the City’s $650 million worth of assets to a high standard.

“The City of Melville is a beautiful city that is endowed with high-quality natural and built assets.  As good stewards, the Council needs to ensure that we effectively manage these assets and public funds and continue to provide quality products, services and facilities to our ratepayers both now and into the future.

“The City will continually endeavour to ensure rates are kept as low as possible, while maintaining a high level of service delivery for residents. It’s also worth noting that the rates increase is much lower than is being adopted by other comparable Cities.”

For more information on how your rates are calculated and some of the products and services that are delivered visit www.melvillecity.com.au