SLIDE 1
PROPOSED INFRASTRUCTURE LEVY
COMMUNITY INFORMATION SESSIONS 22 MARCH 2007
SLIDE 2 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.
SLIDE 3 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.
SLIDE 4 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.
SLIDE 5
INFRASTRUCTURE INFRASTRUCTURE LEVY
LEVY
THE ASSETS
SLIDE 6 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’
SLIDE 7 Buildings
Actual Condition
Acceptable (12) Marginal (9) Unacceptable (3)
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
- verall half appear to be below the desired condition.
INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY
2 4 6 8 10 12 14 16 18 Green Orange Red Actual Condition Remaining Useful Life Backlog
SLIDE 8 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 INFRASTRUCTURE LEVY
Buildings
SLIDE 9 Roads
NETWORK CONDITION REPORT COMPLETED 2005
- ROUGHNESS
- RAVELLING
- STRUCTURAL CRACKING
- PAVEMENT CONDITION INDEX
- KERB & GUTTER
INFRASTRUCTURE LEVY
SLIDE 10
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
SLIDE 11 Footpaths
INFRASTRUCTURE LEVY
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
SLIDE 12 Marine Structures
INFRASTRUCTURE LEVY
- 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)
SLIDE 13 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 INFRASTRUCTURE LEVY
SLIDE 14
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
SLIDE 15
INFRASTRUCTURE LEVY
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
Retaining Walls
SLIDE 16
- Refuge Islands
- Street Signs
- Benches
- Fencing
- Handrails
- Steps & Stairs
INFRASTRUCTURE LEVY
Street Furniture
SLIDE 17 Infrastructure Levy 5 year Programme
0% 20% 40% 60% 80% 100% Year % Spend of $750,000 Annual Levy Stormwater Ovals & Reserves Buildings Marine Structures Footpaths Roads Stormwater 100 100 100 100 100 Ovals & Reserves 100 50 50 50 Buildings 50 200 150 150 150 Marine Structures 150 100 50 50 50 Footpaths 100 100 150 150 150 Roads 250 250 250 250 250 2007/08 2008/09 2009/10 2010/11 2011/12
SLIDE 18
Third Party Issues Third Party Issues
Energy Australia Sydney Water Similar with Telstra Private Property/DA Connections
INFRASTRUCTURE LEVY INFRASTRUCTURE LEVY
SLIDE 19 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 $$ funding needed to
maintain, replace & enhance assets (actioned)
- Complete Asset Management Plan to ensure it was in a
position to consult the community regarding any additional funding required to maintain infrastructure assets (actioned).
SLIDE 20 RAISING FUNDS
- Funding of Infrastructure renewal can take form
- f grants, borrowings, partnerships & rate base
as discussed in Sustainability report.
- Considered that best mix for Mosman is a rate
increase supplemented with grants as additional loan commitments would place too much burden
- n Working Capital.
- Recent community survey (18% accept a I/L of
12%)
- User Charges-Non Rateable W’shops, Parking at
Balmoral
SLIDE 21 DLG SUPPORT
- DLG has encouraged applications provided they
supply detailed business cases which clearly specify targets, set priorities, provide sound management & reporting are costed & have community support.
- In 06/07 approx 40 applications (largely based
- n I/Renewal with an approx 85% success rate.
SLIDE 22 $$$$/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.
SLIDE 23 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.
SLIDE 24
THANK YOU THANK YOU
QUESTIONS
