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Achievements of State Road Funds to Local Government Agreement

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Achievements of State Road Funds to Local Government Agreement ACHIEVEMENTS OF STATE ROAD FUNDS TO LOCAL GOVERNMENT AGREEMENT 2005/06–2009/10 THE LOCAL ROAD NETWORK This report presents the achievements of the State Road Funds to Local Government Agreement 2005/06 – 2009/10. The Agreement can be found at http://www.walga.asn.au/about/policy/infrastructure/SRFTLGA ACHIEVEMENTS OF THE STATE ROAD FUNDS TO LOCAL GOVERNMENT AGREEMENT 2005/06–2009/10 1 CONTENTS INTRODUCTION 2 Category Two 15 Foreword by the Minister for Transport 2 Traffic Management and Road Safety 15 Foreword by the WALGA President 3 State Black Spot Program 16 THE LOCAL ROAD NETWORK 4 Access Roads to Remote Aboriginal Communities 18 Overview of the State Road Funds to Local Government Agreement 4 Local Government Bridges 19 Local Road Network Statistics 4 National Parks/DEC/Rottnest Island/Kings Park 20 Source of Funds – Local Roads 4 Category Three 23 Funding Under the Agreement 5 State Initiatives on Local Roads 23 Local Road Funding Pressures 5 Category One: Snapshot of Road Project and Black Spot Grants 24 DISTRIBUTION OF FUNDS TO AND WITHIN THE AGREEMENT 6 Gascoyne Regional Road Group 25 Category One 7 Goldfields-Esperance Regional Road Group 27 Direct Grants 7 Great Southern Regional Road Group 29 Road Project Grants 8 Kimberley Regional Road Group 31 Strategic and Technical Support 9 Metropolitan Regional Road Group 33 MINDER 10 Mid West Regional Road Group 35 ROMAN II 11 Pilbara Regional Road Group 37 WALGA RoadWise Program 12 South West Regional Road Group 39 The ROADS Foundation 13 Wheatbelt North Regional Road Group 41 Wheatbelt South Regional Road Group 43 INTRODUCTION Foreword by the Minister for Transport For 15 years Western Australia has led the nation with its fund sharing arrangement that has provided certainty of State Government contribution towards maintaining and expanding the State’s Local Government Road Network. The contribution, which is based on a fixed share of vehicle license fees, provides a growth revenue stream for Local Governments across the State to share. During the last five-year agreement Local Government’s share grew from $86 million in 2005/06 to $129 million in 2009/10. During the life of this Agreement it is estimated that revenue to Local Government will grow by at least 23 percent. The arrangements reflected in the Agreement not only provide a contribution certainty, it also enables both the State and Local Government to focus on regionally significant road links which bring the greatest benefit to the community. The State Road Funds to Local Government Agreement signifies the strength and maturity of the relationship between Local and State Governments in Western Australia. I look forward to working closely with Local Government in delivering improvements to the State’s local road network. Hon Troy Buswell, MLA Minister for Transport ACHIEVEMENTS OF THE STATE ROAD FUNDS TO LOCAL GOVERNMENT AGREEMENT 2005/06–2009/10 3 Foreword by the WALGA President Meeting the cost to build, maintain and renew the local road network is an ongoing challenge for Local Government. In Western Australia we enjoy a unique partnership between State and Local Government through the State Road Funds to Local Government Agreement. This Agreement is a vital source of local road funding. Also it provides the foundation for Local Government and Main Roads at a local, regional and State wide level to work together as network managers to plan for and deliver road infrastructure for the benefit of all road users. This Publication highlights the range of projects delivered through the State Road Funds to Local Government Agreement. This ranges from projects to upgrade and renew the road network and to maintain and replace vital bridge infrastructure through to dedicated traffic management and road safety activities delivering safer road and roadsides for our communities. I’d like to acknowledge the hard work and dedication of Local Governments, and in particular the members of the Regional Road Groups, in delivering road projects over the life of this Agreement. I look forward to the continuing partnership between State and Local Government in the provision of local road infrastructure, which is so critical to the ongoing economic and social health of Western Australia. Mayor Troy Pickard WALGA President THE LOCAL ROAD NETWORK Overview of the State Road Funds to Local Source of Funds – Local Roads Government Agreement The State Road Funds to Local Government Agreement is a critical The State Road Funds to Local Government Agreement 2005/06 source of funding for local roads. In 2008-09 funding from the to 2009/10 (the Agreement) is the third road funding Agreement Agreement provided 16.8% of funds (excluding funds allocated to between State and Local Government. These Agreements Local Government roads for expenditure by MRWA) for the local reinforce the strong partnership between the State Government road network. Figure 1 illustrates that total Local Government and Local Government in delivering road infrastructure for expenditure on roads was $565.3 m in 2008-09 and the source of Western Australia. these funds. The Agreement provided Local Government with an allocation of Figure 1: Sources of Local Government Road Funds 2008-09 annual funds based on 27% of vehicle license fee revenue, which was incorporated into the annual funding appropriations by the State Government to Main Roads Western Australia (MRWA). The remainder of the vehicle license Fees (73%) was allocated to MRWA forming part of their annual budget appropriations from the State Government. This Agreement was extended until July 2011 to enable negotiations for a new Agreement to reach a conclusion. MRWA and the Western Australian Local Government Association (WALGA), through the State Road Funds to Local Government Advisory Committee (SAC) oversee this road funding Agreement. SAC endorses an annual local roads program and monitors ongoing funding and expenditure. Procedures developed by SAC, detailing the requirements for administering, distributing and accounting for funding allocation and expenditure, are monitored and improved. For example, during this Agreement (Note: Excludes funds allocated to Local Government roads for expenditure by new Guidelines were developed for Black Spot and Road Project MRWA)3 Grants. Figure 2 outlines the sources of Local Government Road To facilitate regional involvement in the planning and delivery of Expenditure from 2004-05 to 2008-09, illustrating the critical projects, the Agreement establishes a network of ten Regional source of State funds for local roads. Road Groups (RRG), which allows all Local Governments within a region to be directly involved in decision making through the Figure 2: Sources of Local Government Road Expenditure allocation of road funds to strategic projects within their region. from 2004-05 to 2008-09 Local Road Network Statistics ■■ 72% of the WA road network² ■■ 128, 147 km ■■ 28.6% sealed ■■ $18.98 b replacement value as at 30 June 2009 ■■ 11, 210 km of footpaths and dual use paths ■■ 159, 929 m² of bridge area N.B: Excludes funds allocated to Local Government roads for expenditure by Main Roads WA4 3 Report on Local Government Road Assets and Expenditure 2008/09, WALGA, p5 2 Report on Local Government Road Assets and Expenditure 2008/09, WALGA, p14 4 Report on Local Government Road Assets and Expenditure 2008/09, WALGA, p9 ACHIEVEMENTS OF THE STATE ROAD FUNDS TO LOCAL GOVERNMENT AGREEMENT 2005/06–2009/10 5 Funding Under the Agreement Figure 3: Annual Shortfall between Road Preservation Needs and Expenditure7 The Agreement provides an annual allocation of 27% of projected vehicle license fees for expenditure on local roads. Over the life of the Agreement, the collection of annual vehicle license fees exceeded the projections in the Agreement as outlined in Table 1. This increased growth in licensed vehicles reflected economic conditions and population growth during this period. Table 1: Annual Projected and Actual Funds Year Projected Actual Allocation Allocation ($M) ($M) The ongoing contribution of State funds is critical in assisting 2005-06 84.968 86.968 Local Governments address this shortfall. 2006-07 87.781 94.072 In nominal terms, funds delivered under the Agreement increased 2007-08 91.456 108.367 49% over the five years ending 2009-10. Measured in real 2008-09 95.533 123.550 (constant purchasing power) terms using the Australian Bureau of Statistics (ABS) Road and Bridge Construction Cost Index8, 2009-10 98.740 129.675 there was a 25% increase in annual funding over the five years to TOTAL 459.478 542.632 2009-10 (Table 2). Economic activity in Western Australia grew 18.2% in real terms over this period9, while the population grew Source: ARRB Group Ltd 20105 11.4%10. In the five years 2004-05 to 2008-09 total funding for local roads Local Road Funding Pressures from all sources increased by 44% while the cost of roadworks, as measured by the ABS Road and Bridge Construction Cost Index for The estimated cost of maintaining the local road network at its Western Australia, increased by 29%. The proportion of funding current condition in 2008-09 was $519.4 m6. Local Governments for local roads provided by the State Government fell from 17.5% spent $368.5 m, a shortfall of $150.9 m. In the last five years the in 2005-06 to 16.8% in 2009-10. shortfall has increased from $93.1 m in 2004-05 to $150.9 m in 2008-09. Table 2: Annual Nominal and Real Value of the Funds The increase in the shortfall is partly due to increasing expenditure on capital upgrade and expansion of the road Year Nominal Real Value network to meet the growing transport task; costs of maintaining Value in $M the road network are increasing at a faster rate than road ($M) (indexed by RBCI) funding; and the cost of doing business has increased.
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