Budget Brief 2020-2021 by Town of Victoria Park

BUDGET BRIEF 2020 - 2021 VICTORIAPARK.WA.GOV.AU

BUDGET Mayor Karen Vernon Telephone 0407 448 336

Dear community, As part of our commitment to supporting our community through the unprecedented challenges of COVID-19, Council adopted an annual budget which achieves a significant reduction in total rates revenue of 7.88%, or $3.7 million, and freezes the majority of fees and charges. This will result in most residential and business ratepayers paying the same or less than last year. Whilst it was important not to increase total rates revenue from last year, Council recognised the importance of maintaining the delivery of services our community deserves, and committing to a significant capital works program to stimulate the local economy. Additionally, this year saw a revaluation of gross rental values (GRV) by the WA Valuer General. A general reduction in GRVs across Perth means some ratepayers will see a decrease in rates payable, while others would see an increase. Our decision to reduce total rates revenue will help offset those negatively impacted by increases in their GRV.

RATES PRIZE DRAW! Pay the first instalment, or your rates in full by 2 October 2020 to automatically go in the draw to win one of our great prizes. For full terms and conditions visit the Townâ&#x20AC;&#x2122;s website at victoriapark.wa.gov.au

Restart Vic Park COVID-19 Action Plan

The 7.88% reduction in rates E: kvernon@vicpark.wa.gov.au revenue was achieved on budget Term expires: Oct. 2023 night through careful consideration and amendments that focussed on funding part of the capital works program from reserves instead of relying on rates revenue, and also by identifying expenditure savings across the organisation. Budget highlights for our community include approximately $6 million for road renewals, $1.7 million completion of upgrades to GO Edwards Park, $1 million towards the Urban Forest Strategy, $1 million for renewals of community sports facilities including Aqualife and Leisurelife, and a $500,000 COVID-19 Restart Vic Park program of economic and social support initiatives, which will ensure we remain a dynamic place for everyone. Mayor Karen Vernon

Package one $2,000 cash

plus two A-Reserve tickets to WASO

Package five $500 cash

Package four $500 cash

Package two $1,000 cash

plus two A-Reserve tickets to WASO

Package three $1,000 cash

EXPENSES

REVENUE

BUDGET

Materials and contracts $27.3m • Maintenance of street trees, parks, reserves and sporting facilites • Waste collection and disposal • Consultancy

Rates $43.6m

Employee costs $22.6m

Fees and charges $7.5m

Depreciation on non-current assets $9.6m

• Salary • Superannuation • Leave allocation

• Parking • Leisure memberships • Development application fees

Utility charges $1.6m

Operating grants and contributions $1.4m

Interest expenses $0.3m

Interest earning $1.2m

Insurance expenses $0.25m

Other revenue $0.4m

Other expenditure $0.15m

Capital works breakdown

AT A G L A N C E

• Rebates and recoveries • Insurance subsidies

Roads

Land & buildings

Plant & machinery

Information technology

$7,515,578

$1,239,413

$880,340

$698,740

Other assets

Pathways

Parks & reserves

Drainage

$1,044,000

$2,279,636

$3,165,127

$440,000

The COVID-19 pandemic has had an unprecedented impact on the Town’s local community and businesses. Western Australia’s State Emergency Management Framework places local government at the forefront of leading recovery, once the initial emergency has passed. To guide this recovery process, the Town has prepared the Restart Vic Park - COVID-19 Recovery Strategy, and allocated $500,000 to delivering recovery projects. Restart Vic Park focuses on three distinct phases of the recovery process – survive, revive and thrive. Moving through these phases

will be ongoing and dependent on factors such as State and Federal Government policy and the progression of the pandemic. Recovery therefore needs to be a flexible and dynamic process, adapting to new challenges and opportunities as they arise. To achieve this, Restart Vic Park is complimented by a COVID-19 Action Plan, a living document which details all the projects and actions the Town will undertake to support recovery as it unfolds.

BURSWOOD PENINSULA

PDE

LEGEND – Covid-19 Strategy

MAJOR PROJECTS GRAHAM FARM ER F

These projects will contribute to the economic recovery of the Town following the Covid-19 pandemic emergency

MAYLANDS PENINSULA

SOCIAL RECOVERY

MAPL

E ST

OLI S T GALL IP

RD ER TS

ST OA TS

T LLE

OATS STREET STATION

LS T BA L

EDWARD MILLEN RESERVE

RU T

AV E

WELSHPOOL RD

HIGGINS PARK

MAIN ST

YR AR ND

OTHER CATEGORIES Greening – This is a project that will contribute to the Town’s strong focus on greening and increasing CH AP canopy coverage. MA UR TO N

H HW LEAC

TC E LL

JAR

JO HN

KENT ST

MAN

COLLIER PARK GOLF COURSE

HAY

WELSHPOOL STATION

YH AN ALB

GRAYDEN RESERVE

IEW

HIL LV

NIS TE

RS T

FRASER PARK

RE ET

BA SIN G

LL S

EX S

RW I

OA TS

SU SS

T AY S

E DAN

WY GH

NIN

OA TS

ST AN LL MI MC RA TH

N RO

TE GA

KENSINGTON BUSHLAND

N RTO

7 HAROLD ROSSITER PARK

MIN

PARNHAM RESERVE

CARLISLE STATION

PPE

SA VE

SHE

JOHN MACMILLAN PARK

MORRIS MUNDY RESERVE

BIS

19 15

LATHLAIN PARK

PEET PARK

RO B

T INGT ON S TEDD

GH NIN CAN

VICTORIA PARK STATION

ANY ALB

GE OR GE

E AT PG

L DA MA

ICK S

GL OU

N XA

T2 A new and revived local economy

BIS

RW I

WILSON PARK

R2 Reactivate the local economy ALE

JA LEE RESERVE

HOW

S2 Maintain our local economy

CIS

MCCALLUM PARK

ECONOMIC RECOVERY ST

ST PLAIN

T1 Re-imagining the community

BURSWOOD STATION

G.O. EDWARDS PARK

VE TA

R1 Reconnect our local community

WA Y

ON LM

CAU SE

WY S1 HMaintain the social fabric of our community ERN

ST T EA GREA

CROWN PERTH

CHARLES PATERSON PARK

T Thrive

PAR K

GLOUCESTER PARK

VICT ORIA

STADIUM BUS STATION

R Revive

OPTUS STADIUM

NGLEY ARK

S Survive

STADIUM STATION

AR CH

EAST

LOR D

BANKS RESERVE

N RD

SO JACK

GEORGE BURNETT PARK

Advocacy required – This project requires advocacy at multiple levels to attract funding and/or support from State or Federal Government.

MANNING RD

VE NARY A

CENTE

CENTENARY PARK

Climate change adaptation & mitigation – This project will be a significant contributor to the Town’s climate change adaptation and mitigation efforts.

This mapCHALLENGER shows some of the BODKINmajor capital works projects happening in the Town. Visit our website for more budget highlights. WILSON PARK RESERVE

PARK

NEW PROJECTS

$2,900,000

Title

Description

1. LAOS Project - 25 Boundary Rd

Sump subdivision, increase of the sump’s capacity and stormwater network integrity

2. Rutland Avenue Shared Path

Construction of 1.7km shared path. Fully funded by State Government

RENEWALS

Icons S2

Description

3. State Underground Power Projects (SUPP6)

Undergrounding of overhead power infrastructure in Carlisle, and Victoria Park (East and West)

5. Clubroom Changeroom Upgrades

Refurbishment of aged changerooms at Carlisle Reserve & JA Lee Reserve. Upgrade of the facilities to accommodate all gender players and comply with disability access standards

6. Playground Renewals

Replacement of playground equipment at JA Lee Reserve and The Promenade

7. Library Fitout

Library fitout will accommodate new RFID systems with external return chute, automatic scanning and selfservice technology

8. Street lighting renewal

Replacement of old street lights in Burswood Peninsula

9. GO Edwards Masterplan

Delivery of final stages (4 & 5) of masterplan including revitalisation of ROW59

10. Blackspot intersection projects

11. Community Development Grants Programme

13. Lathalin Park Redevelopment Project - Zone 1

Perth Football Club and community facilities concept and detailed design

14. Ed Millen Heritage Precinct

Detailed design for the Edward Millen Park Master Plan

15. Macmillan Precinct Masterplan

Stage 3 of the Macmillan Precinct Masterplan – detailed masterplan document

16. McCallum Park Active Area

Detailed design for the McCallum Park Active Area project

17. Update the Albany Highway Planning Framework

Precinct planning for the Town Centres of Victoria Park, East Victoria Park and St James and setting direction for Albany Hwy

18. Burswood Station Detailed design for stage 1 East Streetscape Upgrade

Road safety improvements to: Archer/Orrong, Star/Briggs, Hordern St/Geddes and Hordern/McMillan. State funding Stage 2 lighting upgrade along Terminus Lane, East Victoria Park and locations in Carlisle. Fully funded by Federal Government

The second year of funding for the five year drive to implement the Urban Forest Strategy and the actions from the Implementation Action Plan

$3,756,000 Description

12. Urban Forest Strategy (Town wide)

Icons

Renewal of local roads with State and Federal Government funding

Title

Description

Icons

4. Local Road Renewal program (Town wide)

UPGRADES

$3,379,000

Title

$9,779,000

Title

OPERATIONAL

Icons R1

T2 S2

19. Archer/Mint Street Upgrade detailed design

Detailed design for stage 1 of the Archer/Mint St Streetscape Upgrade project

20. Integrated Movement Network Strategy & Parking Management Plan (Town wide)

Update to the strategic direction for the Town’s transport network to create a more connected and accessible urban community

21. Burswood & Teddington Streetscape Improvement Plan

Creation of a concept plan to improve the streetscape and stimulate redevelopment

22. Local Planning Scheme 2 (Town wide)

Funding for technical advice to inform the Local Planning Scheme no.2

23. Climate Emergency Plan (Town wide)

Development of plan to reduce the Town’s climate impact

24. CCTV Partnership Program (Town wide)

Funding available for community to install CCTV

25. Operating subsidies

Subsidies supporting local community groups

T2 R1

T2 T2

S1 S1

F R E Q U E N T LY A S K E D Q U E S T I O N S

What are differential rates?

Do I have to pay my rates all at once?

Differential rates mean there is a different rate in the dollar for different groups i.e. residential, commercial and industrial. The reason for them is so one group isn’t burdened by rate increases more significantly than others.

We understand that sometimes people experience financial hardship which makes it difficult to meet all of their financial commitments when they are due. Please contact the Town’s rates department to arrange a suitable payment arrangement to settle your rates by the end of the financial year.

How are my rates calculated?

How can I get more information about the budget?

Rate

Valuation

(cents in $ set by Town)

(set by Valuer General)

Annual rates

The rates paid on a property is calculated based on the potential rental value of the premises and the operating requirements of Council. The rates you pay are a proportionate share of what is needed by Council to provide local services and facilities. That is, if your home has greater potential rental return than your neighbours, you will pay a higher share of the total rates budgeted by Council.

What can make my rates go up? Your rates can increase if Council requires more funds to provide local services and or facilities. For example, if it builds new facilities, adds services or implements new initiatives. Rates can also increase if your property increases in potential rental value faster than others in your area. For example, if you make improvements to your home that increase its rental value then your share of rates will increase. Council budgets and consequently funds required through rates are also affected by changes made by other sectors of government. For example, if the state government increases its charges for power and water, or adds to the street lighting, that increase in cost will need to be met by councils.

What is the Emergency Services Levy? The state government requires councils to collect the Emergency Services Levy from ratepayers. The funds raised go to the Department of Fire and Emergency Services. The funds do not go to councils and the rate charged is not set by councils.

Do pensioners get a discount on rates? Pensioners with a valid seniors or concession card have been entitled to rate reductions depending on their status on council rates, water charges and the Emergency Services Levy. On 1 July 2016, the state government capped the rebate to pensioners at 50% of their rates up to $750.

A copy of the budget is available on the Town’s website or alternatively community members can call 9311 8111 to speak to one of the Town’s Finance officers.

How much will my rates go up this year? On average rate payers should pay the same, or less, as last year depending on how their individual Gross Rental Value has moved.

Why did Council choose not to increase rates? Due to the impact of COVID19, Council was conscious of balancing the need to maintain the operating costs of essential services for the community against the strain of the current economic climate and cost of living. As such, Council deemed it appropriate to provide assistance to ratepayers via a variety of financial relief options, one of which was the endorsement of a 7.88% reduction in rates.

How was Council able to achieve a 7.88% reduction? The 2020/2021 Annual Budget was prepared utilising a zero-based budgeting approach which identified major productivity gains across the organisation. In addition Council has also drawn down on reserves to fund capital projects.

Does that mean I will pay the same amount as my rates notice last year? As Gross Rental Valuations were carried out by the Valuer General’s Office this year, there have been some variations across the Town. However, the vast majority of rate payers should pay the same or less than last year.

What do I get for my rates? Income generated from rates is used to provide services run from facilities such as the library, leisure centres as well as community development programs such as events, public art programs and safety initiatives. Your rates also helps to provide essential services such as waste collection, and is used for maintaining and improving the Town’s infrastructure such as parks, roads, footpaths and drainage and provide services relating to environmental health, animal control, local business support.

How do my rates compare to other local governments? It is not reasonable to compare rates (and rate rises) with other councils as each council is unique in growth, services, and residential property versus commercial property ratios. The majority of local governments

have already indicated a 0% change in rates this financial year. In recognition of these unprecedented times the Town of Victoria Park has adopted a 7.88% reduction in rates.

How does the state and federal government impact the Council budget? Increased cost shifting and legislation from state government means increased administration costs for councils to facilitate the collection of fees for various services and rebates. If the state government increases the cost of power, water and other utilities, these costs are passed on to you via rate increases. All councils also rely on and compete for additional funds from the state and federal government through assistance grants and funding bid opportunities. Without these we would not be able to implement large scale infrastructure projects or subsidise health and safety initiatives such as installing CCTV cameras.

X Multiply

To calculate

the value of your property

the rate in the dollar

your rates for the year

Gross Rental Value explained

How reliant is Council on rate revenue?

Gross Rental Value (GRV) is the gross annual rental income that a property might reasonably be expected to earn annually if it were rented. This figure is provided to us by Landgate.

Around 76% of Council’s operating revenue budget is met through rate revenue.

Every three years Landgate undertakes a major review of all GRVs which is this year.

What if I can’t pay my rates? A payment arrangement can be made if you are unable to pay in full or by installments. The Town has also adopted a Financial Hardship Policy. Please contact the Rates Team to discuss your options.

The calculation of the GRV for a residential property is based on many factors, including: • • • •

location age and size of the property additional facilities (including carports or below ground pools) proximity to services (schools, public transport, shops etc.)

We use the GRV of your property to calculate the rate in the dollar which, multiplied by your GRV, gives us your final rate amount.

D I F F E R E N T I A L R AT E S F O R 2 0 2 0 - 2 0 2 1 Due to a motion passed by Council at its April Special Council Meeting the proposed differential rate and the minimum payment was calculated based on a 0% rate increase, which was put forward to Council for consideration and approval as part of the 2020-2021 Annual Budget. Council has subsequent adopted a 7.88% reduction in rates and minimum payments. A summary of the rates proposed and adopted is shown below. DIFFERENTIAL RATING CLASSIFICATION

PROPOSED

ADOPTED

Residential - GRV rate in the $

0.0816

0.0916

Minimum payment in respect to residential - GRV

1,197

1,136

Non-residential GRV rate in the $

0.0913

0.0969

Minimum payment in respect to non-residential - GRV

1,245

1,181