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Town of Mosman Park Budget 2016/2017

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Town of Mosman Park Budget 2016/2017 Between River and Sea TOWN OF BUDGET MOSMAN PARK 2016/2017 1 Mayor’s Message It is with pleasure that I present to you the Town of Mosman Park Budget for the 2016/17 financial year. In the previous year, once we emerged from the threat of forced amalgamation with our neighbouring Councils, we set about cutting costs, finding efficiencies and using those funds to upgrade our infrastructure. In 2015-2016 Council identified significant savings of $500,000 through prudent financial management in both operational and capital expenditure, with the majority of these savings directed to the Infrastructure Reserve. The 2016/17 balanced budget aims to build on the Town’s strong position of financial management and deliver a soundly constructed balance of new and improved assets, provide a comprehensive suite of important community services and facilities, whilst at the same time, maintaining our reserve funds for future needs. Continued responsible financial management is the key objective of the Town’s financial planning and annual budget process, so as to ensure our ongoing financial sustainability. To be sustainable, we need to take a long term view by measured current spending against revenue sources to fund that spending. Council has this year maintained the average percentage increase in rates to 3.4%. This modest increase is required to ensure the provision of high quality services to our residents, as well as maintaining Council assets on their behalf, delivering excellent reserves and parks while maintaining streetscapes to the high standard that our residents expect. The average waste collection charge will only increase marginally from $313 to $317, which is an excellent result meaning we are able to deliver this essential service to households with a minimal year-on-year increase. Our successful application for grant funding to deliver innovations in waste management through the recent ‘bin tagging’ program has resulted in greater levels of compliance with recycling which, in turn, will yield less landfill and lower waste management costs. We have delivered important road renewal works in Palmerston, Victoria and Albert Streets. In this Budget, upgrades are planned for facilities at Nash Field and at the Margaret Baldwin Centre. We are also creating Master Plans for both Buckland Hill and Monument Hill, with some exciting ideas in the mix for connecting these spaces. The new financial year should also see the end to a long term planning project - Local Planning Scheme No. 3. The final draft has been forwarded to the Western Australian Planning Commission for final adoption by the Minister for Planning, which is expected to occur early in the financial year. This will lay the foundation for future planning and should provide redevelopment opportunities in the Town. This year we have commenced a positive collaboration between ourselves and the City of Fremantle to help preserve our Indian Ocean beachfront. Our responsibilities for the maintenance of our heritage listed buildings and civic facilities have been delivered thanks to streamlined new arrangements in building management and preservation that are already yielding excellent results. These works are being delivered through the diligence and dedication of our hard-working Depot Crew at the same time that important services are being delivered in ranger services, building, planning and environmental health. Our community is thriving through targeted and well-patronised services and events for all ages and abilities, including youth, families and seniors; while The Grove Library and community centres continue to provide resources, program and spaces for all members of the community. I wish to thank the team, both Councillors and staff, for their efforts in developing the 2016/17 Budget which I believe will serve the Town well into the future. Ron Norris Mayor TOWN OF MOSMAN PARK 2016/2017 BUDGET INDEX Section Page 2016/17 Budget Report 1-15 Financial Statements Budget – Cover Page 16 Statement of Comprehensive Income by Nature and Type 17 Statement of Comprehensive Income by Program 18 Statement of Cash Flows 19 Rate Setting Statement 20 Notes to Financial Statements 1 Significant Accounting Policies 21-33 2 Revenue & Expenses 34-35 3 Acquisition of Assets 36 4 Disposal of Assets 37-38 5 Information on Borrowings 39-40 6 Reserves 41-43 7 Net Current Assets 44 8 Rating Information 45 9 Specified Area Rate 46 10 Service Charges 46 11 Fees & Charges Revenue 46 12 Discounts, Incentives, Concessions & Write Offs 46 13 Interest Charges and Instalments 47 14 Councillors’ Remuneration 47 15 Notes to the Cash Flow Statement 48-49 16 Trust Funds 50 17 Major Land Transactions 51 18 Trading Undertakings and Major Trading Undertakings 51 19 Joint Ventures 51 19 Investment in WMRC 52 Program Schedules 2 to 14 53-68 Capital and Non Recurrent Budget 69-72 Schedule of Fees and Charges 73-83 Town of Mosman Park 2016/17 Budget Report I have pleasure in presenting the 2016/17 balanced Budget totaling $14.2m which aims to build on the Town’s financial management position and deliver a soundly constructed balance of new and improved assets, provide a comprehensive suite of important community services and facilities, whilst maintaining our reserve funds. This year’s Budget has been formulated in accordance with Council’s Corporate Business and Long Term Financial Plans with a rate increase of 3.4%. This increase ensures that the Town’s operational expenses are met in addition to allocating additional funds to the Capital Works Program for renewal of Buildings and Infrastructure Assets within the Town and maintaining the balance of the Infrastructure Reserve. The Town’s 2016/17 budget will continue to provide a wide range of services and activities benefiting our community, including but not limited to: • Major events in the Town, such as civic receptions, citizenship ceremonies, Australia Day and ANZAC Day and the Mosman Park Community Fair. • Allocations for donations, sponsorships and contributions to support local groups across the Town. • Specific community, senior and youth activities, programs and events by our Community Development team. • Commitment to funds to many community and recreation services such as the library, recreation facilities, parks and gardens, recreation ovals, skate parks, halls, cultural centers and BBQs. • Commitment to community safety programs and activities • Continued commitment to disability services • Significant investment in the Monument Hill Project with the provision of funding for the design of a master plan for the area, including community consultation. The capital works program shows a significant increase from the previous year. This is mainly due to increases in building renewal, parks renewal and environment construction. 2015/16 2016/17 CAPITAL BUDGET BUDGET VARIANCE Building Renewal 294,000 504,200 210,200 Footpath Construction 28,818 72,282 43,464 Drainage/ other construction 162,585 245,557 82,972 Parks Renewal 35,000 328,248 293,248 Environment Renewal 95,437 198,385 102,948 Roads Renewal 260,466 239,708 - 20,758 $ 876,306 $ 1,588,380 $ 712,074 1 Capital Expenditure The following table provides a breakdown of the combination of funding sources used to fund the capital works program for 2016/17: TOWN OF MOSMAN PARK CAPITAL BUDGET Funding Source SUMMARY Total Construction Municipal Reserve Govt Other Capital Fund Funds Grants Trade CONSTRUCTION Building Renewal $504,200 $504,200 $439,200 $65,000 $0 $0 Footpath Construction $72,282 $72,282 $72,282 Other Construction $245,557 $245,557 $177,833 $67,724 $0 $0 Parks Renewal $328,248 $328,248 $12,000 $316,248 $0 $0 Environment Renewal $198,385 $198,385 $165,865 $13,520 $19,000 $0 Road Renewal $239,708 $239,708 $10,715 $194,688 $34,305 $0 SUB-TOTAL $1,588,380 $1,588,380 $877,895 $657,180 $53,305 $0 Building renewal includes: • $110k for proposed works at the David Jones Pavilion • $65k for the upgrade of kitchen, change room and toilet facilities fit out at the Nash Field pavilion • $115k for works to the Bowling Club, including decommissioning the existing bar and replace with a new bar and fixtures and fittings. Footpath construction includes: • $41k for McCabe St footpath. • $21k for Mann Oval footpath Other construction and asset management activities include: • $73k for river walls and jetties • $57k for drainage data collection Parks renewal includes: • $36k for installation of 4 BBQs. • $55k for new exercise equipment in selected parks. • $67k relining of cooling ponds at Minim Cove Environment renewal includes • works at Bay View Park, Buckland Hill, Chidley Point Reserve, Garangup Park, Mosman Beach, Minim Cove Reserve and Point Roe Park and Monument Hill Road Preservation includes • works at Healing Lane, Lochee St, Owston St, lighting of the Mosman Park Bowling Club car park and upgrade at shopping hubs (Wellington St and Glyde St.) 2 Debt Servicing The following table provides a breakdown of the total debt service commitment for 2016/17. An amount of $638,065 that is the direct responsibility of Council. The remainder of the commitment, totalling $19,346 is fully funded by self-supporting loans. Council is ultimately responsible for the total loan portfolio, and will need to meet any repayments if any association that has a self-supporting loan defaults on the repayments. All self-supporting loans are to associations that are resident within Mosman Park and are domiciled in premises that are leased from the Council. TOWN OF MOSMAN PARK DEBT SERVICE PROGRAMME ESTIMATED ANNUAL REPAYMENTS
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