City’s Budget Addresses Real Issues to Ensure Future Sustainability

However, it is informing ratepayers more hard decisions will need to be made in the coming years to effectively address the challenges of rapidly escalating labour, materials, contract and fuel costs and the need to increase funding for asset maintenance and renewal.

The 2008/2009 Budget, which includes a $28.3 million capital works program and, due to the triennial revaluation of properties having taken place, the equivalent of an 8.8 per cent rate increase, was approved at last night’s (17 June) Ordinary Meeting of Council.

Mayor Russell Aubrey said while the rate increase was significantly higher than the CPI, it was a sensible and necessary increase to ensure the City could continue to provide high quality products, services and facilities. “During my election campaign last year, I highlighted to the community that we would be looking at major rate increases – as high as 18 per cent – for the 2008/2009 year because of the increasing costs of maintaining our infrastructure,” he said.” Figures from our tender documents and increased utilities charges indicate that we have been facing costs increases across the organisation in excess of 14 per cent.”

“This year we have limited the rate increase to 8.8 per cent, however, it is not sustainable for us to keep absorbing these extra costs within the organisation and not pass them onto our customers – the ratepayers. If we keep doing this, we will jeopardise the continued provision of services and infrastructure.”

Mayor Aubrey said during his 15 years as an Elected Member at the City of Melville, he had developed a good understanding of what Melville residents wanted and expected of their local council. “I believe that residents wouldn’t want to see community facilities and infrastructure such as roads, parks and community centres become run down just so their rates can be kept a bit lower,” he said. “I believe they would understand the need to pay an extra $1.50 in rates a week – which is what an 8.8 per cent rate increase equates to – to ensure they are getting facilities and services that meet their expectations.”

The Mayor said although the rates increase was higher than some councils, the actual rates charged were still lower than many councils. “When looking at the real costs as well as growth, Melville comes out quite favourably,” he said. “The rate in the dollar we are charging has also decreased to 5.599 cents (6.45924 cents in 2007/2008) for improved land and 4.362 cents (7.100 cents in 2007/2008) for unimproved land.”

Chief Executive Officer Dr Shayne Silcox said the continuing WA boom and rising world oil prices were presenting a considerable challenge for the City of Melville and all local councils. “The cost of road repairs and resurfacing has increase by 20 per cent in the past year; concrete pipe costs have risen by more than 70 per cent in the past two years; playground equipment and irrigation piping have jumped by more than 40 per cent and 35 per cent in three years respectively; and fertiliser is expected to rise by 50 per cent in the next year. This is on top of a significant increase in labour costs and average employee wages in WA as well as continued cost shifting from State Government to local government.”

Dr Silcox said the $28.3 million capital works program for 2008/2009 took into account these rising costs and went some way towards addressing the need to maintain the City’s natural and built assets to avoid putting the burden on future generations of ratepayers. “Rather than putting off the inevitable and just increasing rates by the CPI figure, we believe it is imperative that we address these issues now and deliver better outcomes to current citizens,” he said.

The 2008/2009 capital works program includes:

·         $8.1 million to undertake a potential refurbishment of Leeming Recreation Centre, depending on final cost estimations

·         $3.68 million for road resurfacing projects

·         $3.1m for replacement of motor vehicles and plant

·         $2.385 million on park improvements and renewals of assets, including $400,000 for reticulation replacement, $550,000 for replacement of the artesian bores at Shirley Strickland and Len Shearer reserves, $300,000 for a new pump station for Marmion Lake, $200,000 for playground equipment replacement and $600,000 for stage two of the redevelopment of the old Melville Primary School site

·         $1.29 million for major maintenance of various buildings

·         $1.01 million on various road improvements, including $291,000 to upgrade Melville Beach Road; $126,700 to treat various Black Spots on Riseley Street, South Street and Murdoch Drive; and $245,000 for traffic management projects, including $100,000 for Cranford Avenue

·         $920,000 for new and replacement footpaths

·         $787,000 for information technology hardware and software replacements

·         $310,000 for environmental works at the City’s foreshores, lakes, parks and bushland

·         $241,000 for the replacement of recreation equipment

·         $100,000 for continuation of the Public Arts Program

·         $65,500 Community Sport and Recreation Facilities funding to assist clubs with upgrading their facilities

·         $10,000 for the installation of CCTV at Heathcote.

Mayor Aubrey said the City was also developing a broad and focused approach to community development, implementing new policy initiatives for our sporting and community organisations, and generating more cohesive neighbourhood/local plans and actions that will address current and future needs.  “The Budget will strengthen our City’s strong financial standing and puts the framework in place to improve the amenity of our community for residents, businesses and visitors now and into the future,” he said.

This year, the Valuer General’s Office has conducted its triennial revaluation of properties, which means the rate increase that applies to particular properties will depend on the movement in value of their property when compared to the average movement in values.

Detailed Budget documents will be available at all City of Melville libraries, the City of Melville Civic Centre and on the City’s website at www.melvillecity.com.au.