2011/12 Budget Concept Forum 14 th June 2011. After beginning 2010/11 with a $193,000 cash deficit Expected break even position at end of year.

Shire of Peppermint Grove

2011/12 BudgetConcept Forum14th June 2011

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

IMPACTS ON 2011/12 BUDGET

Library Budget

Manager Corporate Services to present

Revaluation

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

Tariff increased by 29% Increase of approximately $10,000

Street Lighting

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

2011/2012 BUDGET INITIATIVES

1 day per week – support for Building and Planning

1 day per week – administration support

Staffing

Asset Management Infringements Purchase Orders Customer Service Website upgrade

IT Software

$49,000 Roads to Recovery grant Hurstford Close entry onto Leake Street

Traffic Management

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

ISSUES FOR CONSIDERATION

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

RATING OPTIONS

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

Yacht Club donation $25,000 River Wall construction $205,000 Budgeted funds for reserves (asset

management) $50,000 Landscaping median strip Leake/Stirling

Hwy $10,000 Stirling Highway verge paving $80,000

Initiatives Not Included