In area, the Shire of Swan is the largest Council in the Perth Metropolitan area. Located in the north east metropolitan sector, the Shire covers 1029 square kilometres and, as its name suggests, is largely rural in nature. In addition to its thriving rural base, the Shire is experiencing a rapid urban growth incorporating significant commercial and industrial development.
Swan’s population of around 75,000 has doubled in the past ten years. Operating revenue is expected to exceed $40 million in the 1996/97 financial year, with the major revenue source, rates, exceeding $20 million.
Rapid population growth is expected to continue, largely from one particular development known as Ellenbrook. It is situated 15 kilometres north of Midland, the Shire’s main commercial centre. When completed, it will be home for 35,000 people. With its own town centre and several district centres, Ellenbrook will have a significant impact on the Shire.
At its peak, the rate of lot production will reach 1,000 lots per annum resulting in the expected population being accommodated within a 15 year period. However, as the development is not an extension of an existing urban area, it is relatively remote from existing services and facilities.
“Council decided that this development warranted special treatment from a financial planning point of view,” said Cliff Frewing, Swan’s Executive Manager Management Services. “The developers, Ellenbrook Management, and the Shire entered into an agreement where each contributes an indexed sum of $300 per lot sold.”
This goes into a special community reserve fund account controlled by Council. Administered by a Committee, comprising Swan and Ellenbrook representatives as well as a member of the local community, it makes recommendations to Council. A key objective of the fund is to provide basic community services and facilities up front.
“Rather than address service provision in a traditional way, often resulting in these facilities being funded and provided years after they were really required, Swan and Ellenbrook have taken a proactive approach to this issue,” Cliff Frewing continued.
Construction of the first community centre is soon to commence, with a completion date early in 1997, when approximately 1,000 people will reside at Ellenbrook. A cash flow budget has been prepared for the entire construction phase of the project. It identifies the size and timing of all major capital requirements traditionally funded from Local Government sources.
Expenditure of this nature, not funded from the community reserve account, includes larger facilities such as libraries, aquatic centres, depots and road infrastructure. Identification of the timing of abnormally large capital requirements will assist in eliminating peaks and troughs in financing needs, that would otherwise inevitably occur, and facilitate easier financial planning.
The cash flow analysis was linked to a community plan prepared using a standards based approach. For example, it was determined that a community recreation centre would be required when the population reached 12,000. Using the lot production projection and an average occupancy of 2.5 persons per dwelling, a recreation centre will be required in the year 2001 so is funded accordingly.
“This integrated planning approach can be used to justify to the Council, and the community at large, that proper financial planning for community development will result in not only the timely provision of appropriate facilities for the local community when required but will benefit the wider community as well,” Cliff Frewing concluded.
For further information contact Cliff Frewing, telephone (09) 274 9804.
