Budget considerations

We've been very busy of late, culminating with an intensive full weekend of planning last weekend. From Friday evening to Sunday afternoon, we ensconced ourselves at the Pines U3A centre to discuss this year's budget.

A central issue was what to do with rates - freeze them or allow a modest increase over last year. We are all mindful of the likely impacts of the Global Economic Crisis (GEC) and are exploring ways to stimulate the local economy and help those who need it most. All of us wish to help those in need with targeted assistance - the challenge we face is how to direct the funds. I and several of my fellow councillors support modest rebates to Health Card holders, whilst other councillors prefer not to use this indicator of need, but distribute financial relief through organisations such as Doncare instead. My position? I would like to provide targeted relief through BOTH channels, i.e. to Health Card holders and additionally, through case-by-case assistance facilitated by organisations such as Doncare.

When considering how much rates may have to increase by, factors that have weighed heavily in my personal deliberations include:
- our rates have increased 78% over the last 10 years on a compounding basis. (suggesting we should minimise rate increases now). This compares with the compounded consumer price index (CPI) increase of only 36% for the same period. In summary, our rates have increased at a rate over twice that of inflation! See footnote A below for data sources.

- the need to have sufficient capital to fund essential asset maintenance - we have an increasing cost associated with maintaining buildings we errected in the late 60's. My strong position on this is that all future capital works being considered by council MUST reflect TOTAL COST OF OWNERSHIP over the life of the asset, or at least 5-10 years out. Whilst Manningham is a leader in good asset management, we have yet to develop this level of "true cost" analysis. Having this information would allow us to make more informed decisions in a time when we have to balance the desire to build new facilities against the need to keep our costs (and hence the rates demand) down. All of this does unfortunately speak, in my mind, against a 0% rate rise.

- the benefit to the local economy of a strong capital works program. Spending on infrastructure is known to have positive flow-on effects across the wider community. To me, this makes a modest rate increase less unpalatable.

So, as you can see, there are many issues to consider and I'm certain that we will not be able to please everyone with our budget. Fortunately, there will be plenty of community consultation before anything is finalised, so look out for the notices and have your say! Be assured however that I will do my best to represent the balanced interests of our community, with an emphasis on financial sustainability and fairness.

All this should make for some interesting debates at the next public council meeting March 31st. As always, let me know what you think. Hope to see you there!

Footnote A: Data sources: Council-supplied data shows rates increased by the following percentages each year since 1999/2000 as follows: 2.5%, 6.7%, 4.5%, 7%, 9%, 8%, 5.5%, 6%, 5.5%, 4.8%; This compares unfavourably against the Consumer Price Index data from www.rba.gov.au which shows CPI year-ending June percentage changes (all groups) of 1.1%, 3.2%, 6.0%, 2.8%, 2.7%, 2.5%, 2.5%, 4.0%, 2.1%, 4.5% for the same periods.

New year, parking and savings

Happy New Year! I hope that everyone had a peaceful and joyous start to the new year. My family and I welcomed in the new year at a friend's house and we're all filled with optimism for a great year ahead (well, we have to start somewhere to defeat all the gloom and doom being reported in the news!).

It's early days yet, but as councillors, we've already started sinking our teeth into complex and unusual matters, with a regular council meeting and two special (closed) meetings since our inauguration already...


PARKING
In the week before Christmas, I responded to frustrated traders opposite Shoppingtown, whose business and very livelihood was being adversely affected by a lack of parking spots for their own legitimate customers. I understand that some people are parking outside Autobarn, Officeworks and Clarke Rubber without the intention of shopping there, but to avoid parking at Shoppingtown instead. This practice prevents legitimate shoppers from accessing these shops. I also received calls from residents in residential streets adjoining Shoppingtown on the same issue of overflow parking.

Working with the traders, I escalated the issue to our CEO Lydia Wilson and Director of Planning, Paul Molan, who were able to improve the situation somewhat, with new signs enforcing 1 hour parking limits and increased enforcement patrols. However these measures are only a partial solution and clearly this will be an ongoing challenge that the community, Westfield, traders and council will have to explore in earnest.

NOT IN AUSTRALIA I'M AFRAID!
On a lighter note, I had an amusing call from a resident recently. It started with congratulations at my election to Councillor, but then just hung there ... I could tell there was more to the call, and when asked what was on his mind, the caller suddenly wailed, "I got a parking ticket today! Can you do anything about it?" After clarifying the circumstances were legitimate, I had to break the news that there are strict laws against inappropriate influence by councillors that might benefit an individual or organisation more than the wider community. In other words, whilst such "favours" might be suspected in other countries, generally this doesn't happen here, and certainly not on my watch! Sigh. "If only" eh?


SAVINGS
As part of my election platform, I undertook to try and get more tangible benefits for residents out of future budgets. As a group, this term's councillors are definitely a financially responsible bunch. We've already "saved" money by having a much more modest Inauguration reception this year, and our new Mayor has been very sensible and modest in his choice of car. I've suggested that we start tracking such "relative savings" and ensure that the money that would previously have been budgeted for these items, be visibly re-allocated to tangible benefits for the community e.g. if we spent $5000 less this year than budgeted for civic receptions, there should be $5000 directly attributable to something else of tangible benefit to the community, e.g. increased budget for community grants. By tracking and linking savings in this way, we will all become more aware of unnecessary excesses and most importantly, demonstrate improved outcomes to the community in a tangible way.
I've already discussed this with our Mayor, who is very receptive to the suggestion, so watch this space.

Let's make good use of the Federal funding!

As you can read in various articles today, the Federal Government is releasing immediate funding for local councils to improve infrastructure and indirectly, stimulate our economy. These funds must be spent by June 2009. See article.

Manningham's allocation of $419,000, will enable us to review the priority of existing capital works as well as considering new initiatives.

I am particularly interested in seeking community views on worthy projects, but as a starting point, if elected, I would focus on new/upgraded sporting and community facilities (e.g. venues for community groups, particularly those providing facilities for youths (sporting) and the aged (care centres), kinder upgrades) and reprioritised infrastructure works (e.g. making the residential eastern end of King St safer, sooner). Whilst there will undoubtedly be restrictions on how these funds can be spent, the funds will free other parts of the budget to fund those items the community wants which are currently languishing low on Council's priority list.

Don't let our Council waste this valuable funding! Recall my observations (and your "gut-feel"), that we do not appear to be getting value for money from our council, particularly when compared with other local councils. You can do something - vote REID 1 to ensure our community benefits!