The Warrnambool City Council are hearing submissions to the 2020/2021 Draft Budget tonight at 5.45pm (Monday 15th. June). Ben Blain will be speaking on behalf of the Warrnambool Ratepayers Assoc who are calling for a Rate Freeze. The submission consists of measures the Council could be taking and how they would be funded rather the increasing rates by 2% in these challenging times. Please take the time to listen by following the link at https://www.warrnambool.vic.gov.au/
DRAFT BUDGET SUBMISSION
To Warrnambool City Council,
It has been great to see the State and Federal governments offering assistance to the community. Over the past few weeks, Warrnambool City Council has started to offer some relief but the Ratepayers Association believes it could be doing more by making some changes to the current budget. Warrnambool is a global tourist destination, hospitality our 4th largest employer has been hit hard by the effects of this recession. According to the spatial profile of Warrnambool nearly 19% of jobs have been lost due to the effects of COVID-19, we believe all residents need relief from our council.
The Warrnambool Ratepayers Association would hope the Council would consider the following relief measures
- A rate freeze for all properties – All residents and businesses are feeling the mental and financial pressures brought on by this pandemic. The Ratepayers Association believes the state and federal government are not raising tax revenue streams and instead are offering broad stimulus to the community, we believe Warrnambool City Council should be doing the same. According to the budget, this measure will cost 738K
- Waiver of all shop and community fees – Our local businesses and community organisations have been hit the hardest by the COVID restrictions. The Warrnambool Ratepayers Association commends the current efforts of the Warrnambool City Council but believes that more could be done to offer relief. A refund of food registration and health premises fees for the entire 20/21 financial year would be beneficial to those struggling. Waiving of fees for community and sporting groups for use of City-owned land/grounds and buildings for the 20/21 budget would see a small reduction in revenue of around 145K. It is not just sporting groups but also community organisations that are affected by the current COVID recession. Warrnambool City Council can help businesses and community groups get back on their feet after the pandemic. According to the budget, these measures will cost around 285K
- Free Parking- We would like to see free parking for at least the entire 20/21 financial year. We need to see Council enforce time limits during this period to keep the spaces turning over for maximum impact for traders, this will also provide a source of revenue for the council. Even after the pandemic has passed, we believe the behaviour of shoppers will be changed forever. According to the budget, this measure will cost around 1.4m.
The Total Stimulus measures proposed by the Warrnambool Ratepayers Association will cost 2.4m
These measures could be funded by showing restraint on large capital projects. We are not saying to cancel these projects we are suggesting a deferral for at least 12 months and then reassess the financial position of the council in 21/22.
- The Community Learning Hub- The Warrnambool Ratepayers Association would like to see this project deferred for 12 months. It isn’t just the project that is going to cost the council but refurbishment of the library space when vacant. The Council is planning to borrow 3 million dollars to refurbish the old library space. If this project is deferred, it will save the budget 5.5million in borrowed funds and 500K in the council budget.
- The Reid Oval Redevelopment- The Warrnambool Ratepayers Association would like to see the groundworks and the lights finished with the money from the state government grant, but a deferral on the redevelopment of the clubrooms. The Ratepayers Association has been advocating with user groups involved in the redevelopment. The facility should suit all user groups and be the best in the region, not the best we can do on a limited budget. If this project is deferred it could save 3 million in borrowings and leave 1.6 million as allocated in the budget for further stimulus measures.
- Upper management pay decreases- According to the 18/19 Annual Report the top 9 employee salaries cost the Warrnambool City Council budget 1.5 million dollars per annum. The Ratepayers Association believes the Warrnambool City Council should follow the lead of private boards, and take a 10% pay decrease with all bonuses being suspended until the 21/22 budget. This measure would see a saving of 150K to the budget.
If the Warrnambool City Council implements these measures, we could save 2.25million in the current budget and also save 8.5 million dollars in borrowings and interest. These savings in the budget are sufficient to implement all of the stimulus measures put forward by the Ratepayers Association.
The Association believes that all residents of the community need relief through council measures. Stimulus from the construction of these facilities will benefit a few, while the proposed measures we have put forward will support every single ratepayer in Warrnambool.
We find it very disappointing the Warrnambool City Council is planning to break the rate cap again within 2 years. It was made clear by 97% of respondents that ratepayers don’t want to be charged extra rates.
The Ratepayers Association would like to see the 450K of unallocated stimulus money be used in a grant program much like the Corangamite Shire. This program should be run by using current resources within the council so as not to utilise any of the funding. The local economy will be stimulated immediately by encouraging businesses to spend. This needs to be rolled out in July while restrictions are being eased, any later and these measures will not have the desired effect on the local economy. This will be critical to saving businesses and jobs in our city.
We need to reassess some of the council businesses that are creating unnecessary pressure on the Budget. One that stands out every year is the operation of Flagstaff Hill, it is projected to be running at an 800K deficit. The Ratepayers Association understands this is an important tourism hub but we need to look at it as a business. The council needs to find a way to make this icon break-even to ease pressure on the budget. One of the principles in this budget is offering good value for money, propping up Flagstaff Hill year after year is a complete waste of ratepayer’s funds.
The Warrnambool Ratepayers Association hopes that using these measures the Warrnambool City Council can offer relief to all the residents of Warrnambool. Everyone has been affected by this pandemic in some way and we all need support from our governments to come out on the other side.
Regards
Benjamin Blain
Vice President
Warrnambool Ratepayers Assoc