PROPOSED INFRASTRUCTURE LEVY COMMUNITY INFORMATION SESSIONS 22 - PowerPoint PPT Presentation

PROPOSED INFRASTRUCTURE LEVY COMMUNITY INFORMATION SESSIONS 22 MARCH 2007

BACKGROUND • Local Government is trustee of substantial public assets. • 30 June 06, Council’s financial reports revealed a WDV of infrastructure assets at $171.54M. • Council values its assets by the at cost methodology. International Accounting Standards shortly demand fair value approach. This will further exacerbate problem as it will increase value of assets, increase depreciation level & thus increase Council’s funding deficiency. • In Sep 05 LGSA commissioned an independent inquiry into the Financial Sustainability of Local Gov’t in NSW.

FINDINGS • Huge backlog in Infrastructure renewals in NSW (over $6 billion) which is expected to grow to almost 21 billion within 15 years if current expenditure patterns remain static. • Cost shifting (out of every rate $ collected 7.5 cents goes back to State). • Managing rising community expect. • Maintaining existing services in the face of huge infrastructure bills.

REALITY Quite clear that no level of government is meeting their charter re Infrastructure Management. (Just look at State Gov’t in elation to water, energy, transport, health, ducation & telecommunications) Council wants to take initiative & ensure nfrastructure receives investment it requires.

INFRASTRUCTURE LEVY LEVY THE ASSETS INFRASTRUCTURE

INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY AIM (Total Asset Management System) • Complete condition statement • Accurate Data • Categories • Financial System Link • Cost Details – Historical and Tracking • Prioritisation • Management & Maintenance Strategies • Adaptable & ‘Living’

INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY Buildings Current Condition (25 Sites Audited) •Comparison between desired and actual condition shows concern for several facilities. •From an analysis of the acceptable condition of facilities overall half appear to be below the desired condition. Actual Condition 18 16 Unacceptable (3) 14 Actual Condition 12 10 Remaining Useful Life 8 Acceptable (12) 6 Backlog Marginal (9) 4 2 0 Green Orange Red

INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY Buildings Priority 1 Sites • Clifton Gardens Amenity Block - $250,000 (Replacement) • Rosherville Reserve Amenity Block - $150,000 (Replacement) • Boronia House - $64,000 (backlog) Priority 2 Sites • Oval Buildings (Backlog works) - $70,000 • Change Facilities/Toilet Block Upgrades - $75,000

INFRASTRUCTURE LEVY Roads NETWORK CONDITION REPORT COMPLETED 2005 •ROUGHNESS •RAVELLING •STRUCTURAL CRACKING •PAVEMENT CONDITION INDEX •KERB & GUTTER

INFRASTRUCTURE LEVY Roads Funding Levels (from 2005 Pavement Assessment) Required Annually - $1,000,000 Actual Allocation (Ave. 2000-05) - $710,000 Mosman Council Community Survey (2006) identified “construction & maintenance of local roads” as one of the top 3 issues for residents

INFRASTRUCTURE LEVY Footpaths PRIORITY ACTIONS •Condition surveys to be completed for new 5 year programme •Required Annual Expenditure Level - $350,000 •Actual expenditure (Ave. 2000-05) - $275,000

INFRASTRUCTURE LEVY Marine Structures • Balmoral Baths: $250,000 works to complete • Clifton Gardens: Condition Audit ($10,000) & Future works of >$100,000 • Edwards Beach: Retain or Remove – $40,000 • Annual Maintenance costs - $25,000 (swells, net inspections)

INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY Parks & Reserves Plans of Management (Upgrade to achieve AS) • Clifton Gardens: Shade Sail, Picnic Area Upgrade - $200,000 • Balmoral: Floodlight Improvements - $45,000 • Replacement Fencing to Allan Border Oval - $85,000 • Replacement Fencing to Rawson Park - $85,000 • Play Equipment: Rosherville Res, Hunter Park, Spit West, Beaconsfield Road - $250,000

INFRASTRUCTURE LEVY Stormwater Condition Audit analysis underway to identify standard of assets CCTV Analysis – North Sydney Total Replacement Cost - $43m New pipes in areas where none exist - $11m Present situation - $2m works identified on unfunded works list Annual maintenance costs - $100,000

INFRASTRUCTURE LEVY Retaining Walls 1653 different sections of wall in Mosman 33 rated condition 5 – Poor & in need of major work within 2 years 172 rated condition 4 – Defects & in need of major work within 5 years 281 rated condition 3 – Serviceable and inspect annually 264 rated condition 2 – Generally sound and inspect 3 yearly 903 rated condition 1 – Acceptable and inspect 5 yearly

INFRASTRUCTURE LEVY Street Furniture • Refuge Islands • Street Signs • Benches • Fencing • Handrails • Steps & Stairs

Infrastructure Levy 5 year Programme % Spend of $750,000 Annual Levy 100% Stormwater 80% Ovals & Reserves 60% Buildings Marine Structures 40% Footpaths 20% Roads 0% 2007/08 2008/09 2009/10 2010/11 2011/12 100 100 100 100 100 Stormwater 100 0 50 50 50 Ovals & Reserves 50 200 150 150 150 Buildings 150 100 50 50 50 Marine Structures 100 100 150 150 150 Footpaths 250 250 250 250 250 Roads Year

INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY Third Party Issues Third Party Issues Energy Australia Sydney Water Similar with Telstra Private Property/DA Connections

THE WAY FORWARD • Future Mosman identified the importance of developing & maintaining infrastructure & its future funding. • Nov 05 DLG undertook review-key recommendations: • Develop systems to provide $$ funding needed to maintain, replace & enhance assets (actioned) • Complete Asset Management Plan to ensure it was in a position to consult the community regarding any additional funding required to maintain infrastructure assets (actioned).

RAISING FUNDS • Funding of Infrastructure renewal can take form of grants, borrowings, partnerships & rate base as discussed in Sustainability report. • Considered that best mix for Mosman is a rate increase supplemented with grants as additional loan commitments would place too much burden on Working Capital. • Recent community survey (18% accept a I/L of 12%) • User Charges-Non Rateable W’shops, Parking at Balmoral

DLG SUPPORT • DLG has encouraged applications provided they supply detailed business cases which clearly specify targets, set priorities, provide sound management & reporting are costed & have community support. • In 06/07 approx 40 applications (largely based on I/Renewal with an approx 85% success rate.

$$$$/LEVY • Estimated 39.808M required over next 10 years. 22.118M as 1 off (above what is programmed into forward estimates). • 6% rate increase would provide revenue of approx $750K. • 6% would equate on average to increase in residential rate of $56 p/a & $132 p/a business rate. • Given scope of works applicationn would be for unlimited time span.

THE FUTURE • Much of our infrastructure is out of sight, but it should not be out of mind. The time has come for us to work together to ensure that it receives the attention & investment necessary for it to be maintained for generations to come. • As a ratepayer your private investment in Mosman is substantial & Council intends to keep it as such.

THANK YOU THANK YOU QUESTIONS