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Metropolitan Local Government Review – Submission

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Metropolitan Local Government Review – Submission Local Government Reform The Future of the City of Canning Metropolitan Local Government LocalReview Government - Submission Reform The Future of the City of Canning Local Government Reform Local Government Reform CITY OF CANNING METROPOLITAN LOCAL GOVERNMENT REVIEW – SUBMISSION OVERVIEW The City of Canning is a well-established and well-resourced local government that continues to effectively provide a full range of local government services that are both expected and appreciated by its community. The Department of Local Government Local Government Reform Steering Committee Report - May 20101 assessed Canning as having a “Category 1” capability which was defined as being “demonstrative of organisational and financial capacity to meet current and future community needs”.2 It also asserted that the City was “not targeted in the Minister’s current Reform Agenda”.3 The City has never sought, of its own initiative, to amalgamate with a neighbouring local government nor to enlarge its territory by means of acquiring parts of its neighbours. In the past there have been formal attempts from a group of citizens outside Canning to be included in the City by way of a suggested boundary amendment4 and, conversely, a group of Canning residents have opposed being included in a neighbouring local government5. Both were unsuccessful. The City accepts most of the findings of the Review Panel and supports WALGA’s recommendation that the number of metropolitan local governments be reduced from 30 to between 15 and 20. This is commensurate with reductions recommended in previous reviews made between 1954 and 2006 which predominantly ranged from 17 to 22, and the results of a recently-held ballot of 19 “G20” Mayors who preferred ( in order) 16, 18 and15. This submission puts the case for Canning to remain with its present boundaries if the resultant number is in the 15-20 range. Should the Government enforce a lower number the City would, in the first instance, prefer an amalgamation with the whole of the City of South Perth and the Town of Victoria Park rather than the exchange of parts of neighbouring councils. The result of consultation with Canning’s community supports that position. On a preferential ranking basis an almost equal majority of respondents favour Canning remaining “as is” or amalgamating with South Perth and Victoria Park. We acknowledge this does not reflect the preference of South Perth and Victoria Park. The City recommends any adjustment of boundaries to follow more identifiable natural features or built infrastructure such as rivers, highways and railways could follow as a subsequent stage in the rationalisation process and the City will be receptive to discuss these with the Minister and neighbouring councils in that event. However should the government require boundary alterations in conjunction with amalgamations, the City is willing to consider proposals that would not compromise the viability of the new local government. 1 Local Government Reform Steering Committee Report - May 2010 – DeptLG – Map (Page 23) 2 ibid – Page 21 3 Ibid - Table (Page 28) 4 Canning Vale residents of City of Gosnells (2000) 5 City of Melville application to acquire part Rossmoyne (1988) 1 CITY OF CANNING RESPONSE TO REVIEW PANEL RECOMMENDATIONS 1. The City endorses the position of WALGA on recommendations 1-7 and 10- 30. 2. The City of Canning does not support recommendations 8 and 9. While acknowledging that on occasions the Lord Mayor of the City of Perth speaks for a larger area than the Perth CBD, there is already the ability to create a suitable forum for that purpose within the existing WALGA structure. The choice whether to establish this forum should be at the discretion of WALGA. 3. The City of Canning supports the retention of the 2 optional methods of electing the Mayor. 4. The City of Canning’s preference is for its existing name and boundaries to be retained. 5. The City of Canning has considered a number of amalgamation options and submits that if the Government enforces a reduction in metropolitan local authorities to a number between 16 and 20 then each of those options ought to retain Canning in its present configuration. 6. Should the number of local governments be reduced to 12 or less, the City of Canning has a strong preference for: amalgamations of entire local governments as opposed to the Option 12B recommendation of the Review Panel; and an amalgamation of Canning with South Perth and Victoria Park (including Burswood). 7. Should the Government enforce an option that amalgamates Victoria Park with Canning, the legislation should include a provision that Victoria Park’s share of the interest it holds in the Tamala Park property located at Mindarie (together with Perth, Cambridge, Vincent, Stirling, Joondalup and Wanneroo) is transferred to the newly constituted local government . 8. The City of Canning considers it essential that the Burswood Peninsula remain with the former Town of Victoria Park in any proposal to amalgamate that district into a new local government. 2 OPTIONS ANALYSED The City of Canning considered a variety of different boundary configurations and ultimately elected to present 2 proposals (Options C and D) for consideration by the Canning community as alternatives to the Review Panel suggestions (Options A and B), as well as the existing situation (Option E). Option A (Review Panel Option 12A) Option B (Review Panel Option 12B) 3 Option C (Canning) Option D (Canning) 4 Option E (Existing) ANALYSIS OF THE OPTIONS A comparative analysis of the options was made on the following criteria: POPULATION - Current and projected REPRESENTATION – Electors/elected member ratios, current & projected ECONOMIC (RATES) IMPACT ON CANNING. 5 Population The City considers a viable local government in Perth, not including the CBD, to: have a minimum population of 35,000; ideally have an average of 100,000 (2011average of 15 Councils including Perth is 107,500); and not exceed a population of 150,000 to 170,000. The minimum figure of 35,000 is an arbitrary number that recognises that the resident population is not – as mentioned in the 2006 LGAB Report - an exclusive criteria or measure of size6. The daily visiting population is possibly as relevant, if not more relevant, to a local government, particularly in the use or demand for local government services. The 100,000 average is derived from an assumption that the preference is for metropolitan Perth to be reduced to 16 local governments. The City submits that there is a size limit beyond which the potential for local government to lose its distinctiveness increases in terms of representation and service delivery. In 2004, 16 of 43 metropolitan councils in NSW had populations over 120,000, with an average of 98,420; 15 of 31 councils in Victoria were over 120,000 with an average of 116,150, and the largest local governments in NSW, Victoria and South Australia were 278,532, 174,426 and 153,496, respectively. At that time the City of Stirling’s population was listed at 181,079. A maximum population target in the range of 150,000 – 170,000 appears, at face value, to be a reasonable and practical criterion. OPTION A B C D E 2011 pop. 192,000 132,000 131,000 159,000 86,000 2031 pop. 235,000 158,000- 159,000- 192,000- 102,000- 260,000 169,000 169,000 203,000 109,000 Representation The City currently has 10 councillors and an elector mayor. It compared the electors/elected members ratio for each of the options for both the 2011 and 2031 elector populations, based on the assumption that the new local government would have the maximum number of elected members (15) presently permitted under the Local Government Act 1995. Option A projects the ratio of electors to elected members to increase from 7250 to 9500; significantly higher than the 2011/2012 City of Stirling ratio of 8500. OPTION A B C D E Ratio Elected Members -2011 7250 5000 5000 6250 4500 Ratio Elected Members - 2031 9500 6250 6250 7750 5500 6 LGAB Local Government Reform in WA – April 2006 p.48 6 Economic (Rates) Impact on Canning The City obtained from Landgate the UCV and UV figures for the various parcels making up each of the options. For the areas outside the City boundaries the 2012/13 rates revenue was calculated, or interpolated, using the rating information from the budgets posted on the respective council websites. The assumption was made that the same amount of rates revenue for each of those areas would need to be raised after they were incorporated into the new local government. This, in turn, was converted to a rate-in-the-dollar equivalent and compared against the City of Canning’s 2012/13 rate. Due to Canning’s higher percentage of rates from its Commercial and Industrial areas, compared with its neighbours, each alternative option demonstrated that Canning’s rates would need to increase significantly to yield the same revenue. Rating mix: OPTION A B C D E Commercial/Industrial 34% 37% 36% 38% 47% Residential 63% 61% 61% 59% 51% Miscellaneous & Vacant 3% 2% 3% 3% 2% Equivalent Rate Increase for Existing Canning: 23.9% 15.6% 28.7% 20.3% N/A Community Consultation The City of Canning consulted the community between 25 February and 15 March. The invitations were advertised in the local newspapers and the respondents directed to the City’s website for information about the Review and an opportunity to complete an online survey. The same information was provided by means of displays at the City’s Administration Centre and its 4 libraries. The City presented five options for consideration by the community. Respondents were asked to rank them in order of preference (where 1 was the most, and 5 the least preferred option) and requested to indicate why they chose their most and least preferred options.
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