Freo ratepayers reject City annual report – thrice

“Does the new Minister need to be made aware of the ratepayers’ rejection for a third year in a row?”

UNCOMFORTABLE truths about the impact of Fremantle’s failing finances on community services in the port city were front and centre at the annual general meeting on June 6. Pity it was not streamed live, the City’s 150-page annual report on June 6 presented as feedback on the achievements and challenges the City faced in 2021-2022.
Ratepayers asked questions about the CAT bus service, civic centre blow outs, Fremantle Markets and City’s failing finances StreetWise Media has reported exclusively at streetwisemedia.com.au.
South Fremantle resident Marija Vujcic at the meeting and on her online site noted that on page 10, ‘Message from the CEO’, Glen Dougall referred only to the construction costs of $47.9m for the Walyalup Civic Centre when the Office of the Auditor General’s audit confirmed the total project cost as $63m. Why is the total cost (blow out) properly disclosed?
“When building a house, you are interested in the total cost. You don’t get a loan just on the construction cost because you will be short. I guess we are short at least $15m on this project.”
The South Ward councillor said the report excludes architectural and management fees and other project costs and asked whether the City will amend the annual report to show at least the $63m civic centre cost and, for transparency, provide an itemised list of construction and project costs from 2021 to 2023. She said the annual report also referred to operating and capital expenditure of $120m when the audited cash flow statement shows $90m and rates of $53m when the cash flow statement shows $51m.
Cr Vujcic added the Fremantle Markets lease expires in October 2026, “and yet the Council wants to give another 20 year lease to the Murdoch family via a business plan and not through an open and competitive tender. The Murdoch family have operated the markets for forty plus years. Another 20 years, in my view, is more like a dynastic monopoly. There is still an opportunity for ratepayers and residence to put a submission to council regarding the business plan process”.
She said two separate proposals were presented to the City last year by GTL Enterprises and more recently Fremantle Markets stall holder Warren Thomas. Neither are included in the business plan, details of which can be found at streetwisemedia.com.au/murdoch-family-name-grab-for-freo-icon and streetwisemedia.com.au/we-have-been-incredibly-loyal-natasha-atkinson-ceo-fremantle-markets-pty-ltd.
“The Mayor has stated the Murdochs owned the Fremantle Markets name and the 150 operators when clearly the lease states otherwise.
Why did the CEO not correct the Mayor given he is the City’s ‘negotiator’ with FMPL and was involved in drafting the original 2008 lease. And why did the CEO not inform elected members about other proposals before the decision to recommend the existing operator, Fremantle Markets Pty Ltd?

Questions questions

RATEPAYERS raised concerns over why the City of Fremantle’s audited financial statements have been presented late three years in a row.
Freo’s FY22 audited financial statements (due by December 31 each year) are dated April 5, 2023 while Cockburn’s were completed on December 9, 2022 and East Fremantle’s November 23, 2022.
The Fremantle Society asked whether the City had sufficient finance and staff resources or internal controls to complete the audit process earlier? And why was the extra payment of $100,000 paid to auditors? City business director Matt Hammond told ratepayers he did not know.
Society president John Dowson said the City is not financially sustainable unless it raised rates even higher, selling more investment properties or reducing staff/services to ratepayers.
He questioned why the City stated the civic centre was finished in November 2021 when it continues to need capital expenditure including a further $1m for further construction and fit-outs.
“What is the capital expenditure on the civic centre in the FY23 year to date and what is the maintenance cost for the civic centre budgeted for in FY23?”
Mr Dowson also asked:
– Given the importance of Fremantle’s heritage, why are heritage assets not shown separately in the notes to the financial statements in line with best practice followed by other councils including Perth?
– Given the gross plant and equipment asset base of $10.9m, how does the City justify nil renewal expenditure for plant and equipment which is depreciating?
– Why is there no provision for rehabilitation recorded for the contaminated Jones Street property and disused South Fremantle landfill site as required by accounting standards?
– Why is the Quarry Street property included in the budget when the sale process has been held up and what are the sale pre-conditions?
– In relation to the Fremantle Markets Environs Masterplan 2007 council commissioned report, which of its 31 policies have been implemented, in particular policy 20?
– As per clause 2.3 of the Operating Strategy, was the money ($150,000 per year for 10 years) set aside and spent on conservations works as intended? What specifically was the $1.5 million spent on?
– The recently advertised Business Plan mentions “up to $3 million” will be sought from the Murdochs to get a new lease. “Up to” could be substantially less. Why is a definite figure not included?
– The Business Plan is informed by an asset management plan prepared for the Fremantle Markets which included conservation, together with works to meet heath and building compliance issues, and this was used in the development of the business plan. Is that plan publicly available?
– Why does the Business Plan not clearly articulate the priority of works needed at the markets?
– Why are no conservation works mentioned in the Business Plan when the Conservation Plan of 2007 clearly detailed works needed and their priority?

• Over to Balcatta MLA David Michael, the new WA minister responsible for ports, local government, road safety assisting WA deputy premier Rita Saffioti.