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Holroyd City Council Special Rate Variation Research Prepared by: Micromex Research Date: December 2013 Background Background & Objective Background Holroyd City Council is facing the challenge of balancing community expectations with future financial sustainability, and as such has determined that it needs to apply for a special rate variation in order to fund future services, facilities, programs and initiatives for its residents. Research Objectives As part of the application process, Holroyd City Council requested Micromex Research conduct a robust community research survey in order to: 1. Measure community support for the introduction of a special rate levy 2. Provide an avenue for feedback in order for residents to express their views on the proposed SRV 3 Interviewing & Sample Size Implications Interviewing A random telephone survey of 400 residents was conducted between 23rd and 27th November 2013. Interviewing was conducted in accordance with IQCA (Interviewer Quality Control Australia) Standards and the Market Research Society Code of Professional Conduct. Where applicable, the issues in each question were systematically rearranged for each respondent. Sampling Size Implication A random community sample size of 400 provides a maximum sampling error of plus or minus 4.9% at 95% confidence. This means that if the survey was replicated with a new universe of n=400 Holroyd residents, that 19 times out of 20 we would expect to see the same results, i.e. +/- 4.9%. Therefore the research findings documented in this report should be interpreted by Holroyd Council and IPART as not just the opinions of 400 residents, but as an accurate and robust measure of the entire Holroyd community’s attitudes. 4 Questionnaire Flow • The questionnaire, of approximately 5 minutes in duration, was designed to establish current attitudes and explore community response to the proposed resource strategies Questionnaire Structure QA. Before we start, I would like to check whether you or an immediate Q7. family member works for Holroyd City Council? Prior to this call were you aware that Council is potentially seeking to make an application for a special rate variation? Q1. In which suburb do you live? Q8. How were you informed of the Special Rate Variation? Q2. How satisfied are you with the quality of infrastructure, such as Q9. Based on what you have been told, how important do you Q3. Q4. buildings, roads, footpaths and parks, currently provided by Council in believe it is that Holroyd City Council is allowed to introduce the local area? this special rates variation? How satisfied are you with the level of services currently provided by Q10. Please stop me when I read out your age bracket: Council in the local area? Q11. Which of the following best describes the house where you How important do you believe it is for Council to implement programs that will provide better infrastructure? READ CONCEPT Q5. How supportive are you of Council proceeding with this special rate variation? Q6. are currently living? Q12. Do you live in a : Q13. Which of the following best describes your current employment status? Q12. Gender Why do you say that? The questionnaire was developed in conjunction with Council staff 5 How To Interpret Rating Scores Ratings questions The Unipolar Scale of 1 to 5 was used in all rating questions, where 1 was the lowest importance, satisfaction or support and 5 the highest importance, satisfaction or support This scale allowed for a mid range position for those who had a divided or neutral opinion. 1.99 or lower 2.00 – 2.49 2.50 – 2.99 3.00 – 3.59 3.60 – 3.89 3.90 – 4.19 4.20 – 4.49 4.50 + ‘Very low’ level of importance/satisfaction/support ‘Low’ level of importance/satisfaction/support ‘Moderately low’ level of importance/satisfaction/support ‘Moderate’ level of importance/satisfaction/support ‘Moderately high’ level of importance/satisfaction/support ‘High’ level of importance/satisfaction/support ‘Very high’ level of importance/satisfaction/support ‘Extreme’ level of importance/satisfaction/support 6 Sample Profile Sample Profile Gender Male 49% Female 51% Age 18-34 36% 35-49 28% 50-64 21% 65+ 16% Ratepayer status Ratepayers 80% Non-ratepayers 20% Years lived in the area Less than 6 months 1% 6 months - 2 years 1% 3 - 5 years 12% 6 - 10 years 23% 11 - 20 years 21% More than 20 years 42% Employment status Work full time outside the Holroyd LGA 36% Unemployed/Pensioner 15% Work part time outside the Holroyd LGA 13% Retired 10% Work full time in the Holroyd LGA Base: n=400 9% Home duties 7% Work part time in the Holroyd LGA 6% Student 3% Other 2% 0% 20% 40% 60% 80% The sample has been weighted to reflect ABS Census data 100% 8 90% Of Residents Are At Least Somewhat Satisfied With Infrastructure Provided By Council Q. How satisfied are you with the quality of infrastructure currently provided by Council in the local area? Very satisfied 18% Satisfied 55% Somewhat satisfied 17% Mean ratings Male Female Own Rent 3.78 3.77 3.73 3.94 Overall: 3.77 18-34 35-49 50-64 65+ 3.82 3.53▼ 3.76 4.10▲ Scale: 1 = not at all satisfied, 5 = very satisfied Not very satisfied ▲▼ = significantly higher/lower level(by group) 6% Not at all satisfied 4% 0% 20% 40% 60% Base: n=400 Those aged 65+ are significantly more satisfied with the quality of infrastructure currently provided than were those aged 35-49 9 93% Of Residents Are At Least Somewhat Satisfied With The Level Of Services Currently Provided By Council Q. How satisfied are you with the level of services currently provided by Council in the local area? Very satisfied 17% Satisfied 55% Mean ratings Somewhat satisfied 21% Not very satisfied Female Own Rent 3.76 3.83 3.78 3.85 18-34 35-49 50-64 65+ 3.75▼ 3.61▼ 3.86 4.15▲ Overall: 3.79 Scale: 1 = not at all satisfied, 5 = very satisfied 5% Not at all satisfied Male ▲▼ = significantly higher/lower level(by group) 2% 0% 20% 40% 60% Base: n=400 Those aged 65+ were significantly more satisfied with the level of service currently provided than were those aged 18-49 10 98% Of Residents Believe It Is At Least Somewhat Important For Council To Implement Programs That Will Provide Better Infrastructure And Services Q. How important do you believe it is for Council to implement programs that will provide better infrastructure and services? Very important 60% Important 32% Somewhat important Mean ratings 6% Not very important 1% Male Female Own Rent 4.36▼ 4.62▲ 4.46 4.61 18-34 35-49 50-64 65+ 4.50 4.50 4.46 4.49 Overall: 4.49 Scale: 1 = not at all important, 5 = very important ▲▼ = significantly higher/lower level (by group) Not at all important 1% 0% 20% 40% 60% Base: n=400 A very small minority do not believe it is important for Council to implement programs that will provide better infrastructure and services 11 Funding Options SRV Concept Statement Read statement: Council is facing the challenge of balancing community expectations with future financial sustainability. Council is experiencing a growing gap between the cost of providing services and facilities and the available funding to meet those costs. This position is as a result of a long term ‘cap’ on Council’s ability to increase rates; costs rising more than CPI (especially in areas like construction) and the City’s increasing growth. Council has consulted with the community and has identified 3 potential options to deal with this growing funding gap. Those three options are: Option 1 - Decline in Service (Decline in services and maintain rates) Option 2 - Maintain Service (Maintain services, increase rates) Option 3 - Improve Service (Improve services, increase rates) Residents were read this before being asked for their level of support 13 Decline In Service Option 1: No rate increase above the State Restricted Level of around 3% which in effect would lead to a reduction in services and/or infrastructure. Based on an expected annual increase of around 3%, residential ratepayers would pay on average around $38 more each year. This is an average annual charge of $1,431 (or a quarterly charge of $358) by 2019/2020. Under this option savings could include: • • • • • • • • Reduced opening hours or possible closure of facilities including pools, libraries, etc. Reduced maintenance of sporting facilities, parks and gardens Reduced maintenance of roads, footpaths, cycleways and drains Reduced environmental programs (e.g. weed removal and native vegetation programs) Longer processing times for customer requests, applications and permits. Fewer community events Less funds for community sponsorship and economic development Large increases in user fees and charges Residents were read this before being asked for their level of support 14 Just Over ½ The Residents Are Supportive Of Option 1 – Decline Service Q. How supportive are you of Council proceeding with this option? Very supportive 9% Supportive 26% Mean ratings Somewhat supportive 21% Not very supportive Female Own Rent 2.97▲ 2.60▼ 2.75 2.89 18-34 35-49 50-64 65+ 2.77 2.65 2.76 3.02 Overall: 2.78 Scale: 1 = not at all supportive, 5 = very supportive 23% Not at all supportive Male ▲▼ = significantly higher/lower level (by group) 21% 0% 10% 20% 30% Base: n=400 Only 9% of residents are very supportive of this option 15 Maintain Service Option 2: Increase rates by 9% for 4 years and 8% for 1 year. Maintain our services and renew our current infrastructure. Residential ratepayers would pay on average around $85 more each year over this 5 year period. This is would mean that by 2019/2020 the average annual rate charge would be $1,711 (or a quarterly charge of $428) • • • • • • • Maintaining opening hours and programs at pools, libraries, although no new facilities would be constructed Maintenance of sporting facilities, parks and gardens would remain as is, with no increase to mowing, planting or maintenance Construction of roads, footpaths, cycleways and drains would be maintained Environmental programs would be retained (e.g. weed removal and native vegetation programs) Processing times for customer requests, applications and permits would remain the same Community events would be maintained, but not expanded Funding of community sponsorship and Economic Development would be maintained Residents were read this before being asked for their level of support 16 Almost ¾ Of Residents Are At Least Somewhat Supportive Of Option 2 – Maintain Service Q. How supportive are you of Council proceeding with this option? Very supportive 11% Supportive 32% Somewhat supportive Mean ratings 30% Not very supportive 12% Male Female Own Rent 3.05 3.12 3.04 3.28 18-34 35-49 50-64 65+ 3.25▲ 2.79▼ 3.12 3.20 Overall: 3.09 Scale: 1 = not at all supportive, 5 = very supportive ▲▼ = significantly higher/lower level (by group) Not at all supportive 16% 0% 10% 20% 30% 40% Base: n=400 Those aged 18-34 were significantly more supportive of Option 2 – Maintain Service than were those aged 35-49 17 Enhance Services Option 3: Enhanced Services. Under this option rates would increase by 9% for 6 years, which would provide for our services to be maintained, current infrastructure renewed and new services and/or infrastructure developed. Residential ratepayers would pay on average around $98 more each year over this 6 year period. This would mean that by 2019/2020 the average annual rate charge would be $1,790 (or a quarterly charge of $448). In addition to maintaining all current service levels this option would enable Council to provide the community new additional or enhanced services and infrastructure that could include: • • • • • • • Improve condition of standard of assets such as roads, footpaths, cycleways and drains, sporting grounds, parks and gardens in a shorter timeframe Processing times for customers making requests, lodging applications, seeking permits, etc., would be improved Delivery of new and enhanced services in consultation with the community New capital works projects built and managed such as buildings, sporting facilities and playgrounds Hyland Road Sporting Complex fully implemented in a shorter timeframe Improve condition of standards of existing assets Increase allocation of parking in town centres Residents were read this before being asked for their level of support 18 66% Of Residents Are At Least Somewhat Supportive Of Option 3 - Enhance Q. How supportive are you of Council proceeding with this option? Very supportive 18% Supportive 24% Mean ratings Somewhat supportive 24% Male Female Own Rent 3.07 3.10 2.98▼ 3.54▲ Overall: 3.09 18-34 35-49 50-64 65+ 3.56▲ 2.85▼ 2.77▼ 2.87▼ Scale: 1 = not at all supportive, 5 = very supportive Not very supportive 17% Not at all supportive 17% 0% 10% 20% ▲▼ = significantly higher/lower level (by group) 30% Base: n=400 Non-ratepayers are significantly more supportive of this Option than are ratepayers 19 Option 2 – Maintain Services Is The Most Preferred Option With 40% Of Residents Selecting This As Their First Preference Q. Please rank the 3 options in order of preference: Mean ratings Maintain services, increase rates (40%) Option 2 - Maintain services 40% Option 3 - Enhance services 50% 35% 27% 10% 1.70 2.03 38% Services and facilities need to be maintained 15% Happy to pay an increase to see the area maintained 6% Enhance services, increase rates (35%) Services and facilities need improvement 21% Decline in services and maintain rates (26%) Option 1 - Decline in services 26% 0% 23% 20% 40% 1 2.26 52% 60% 2 80% Can not afford a rate increase 15% Council need to find alternative funding 6% 100% 3 Base: n=400 The majority recognise that there needs to be some investment into the services and facilities offered in the LGA 20 Option 2 – Maintain Services (40%) Q. What is your reason for choosing that option as your highest preference? “Services need to be maintained for the increasing the population” “The area is already better than most other surrounding Councils and it doesn't need much improvement, but I don't want services to deteriorate in the area” “It is financially, a better option for most people in the area” “Council needs to be more efficient with how funds are spent” “I am happy to pay a slight increase to see the area maintained” “Council needs to maintain current services without too high a rate increase” “The community needs services to be maintained so they don't go backwards” “Council needs to maintain services but ensure extra funding is spent in the right areas” 21 Option 3 – Enhance Services (35%) Q. What is your reason for choosing that option as your highest preference? “It will be a greater benefit to the community as the local area has to be sustainable” “Everything needs to be improved and I don't mind paying a little more for this” “This allows for new projects and developments in the area” “It creates jobs for people within the community” “Growth is required so services don't go backwards” “If no one pays for a rate increase then nothing will get done and everything will decline” “Rates are going to increase regardless so I would prefer to see improved services in the area as a result of a rate increase” 22 Option 1 – Decline In Services (26%) Q. What is your reason for choosing that option as your highest preference? “Both Council and residents need to contribute to maintaining services and infrastructure” “Council has given no guarantee that older, more established areas will benefit from the rate increase” “Council are not spending current funds wisely and need to review this” “I can not afford a rate increase” “I don’t believe Council would make any changes even with higher rates” “As the area is growing Council are getting more funding” “I already pay enough in rates each year and am not being provided with decent infrastructure or services” 23 42% Of Residents Were Aware Of Council Potentially Applying For An SRV Q. Prior to this call were you aware that Council is potentially seeking to make application for a special rate variation? Those aged 35-65+ more likely than those aged 18-34 No 58% Yes 42% Males more likely than females Ratepayers more likely than non-ratepayers Base: n=400 Not surprisingly, ratepayers are more aware 24 Conclusion Conclusion Residents have strong levels of satisfaction with the current levels of servicing and facilities provided by Council. Residents indicated they believe it is highly important that Council continues to improve facilities and services. As such, it is of little surprise that residents are generally supportive of a rate increase of some type. 1. 2. Residents were most supportive of Option 2 – Maintain Services and Increase Rates 73% of residents were at least ‘somewhat supportive’ of Holroyd Council proceeding with Option 2 66% of residents were at least ‘somewhat supportive’ of Holroyd Council proceeding with Option 3 Overall, residents preferred Option 2 – Maintain Services and Increase Rates 40% of residents selected Option 2 as their most preferred option 35% of residents selected Option 3 as their most preferred option These outcomes indicate that the community wants to be able to invest in ensuring the quality of services and infrastructure is at least maintained 26 Telephone: (02) 4352 2388 Fax: (02) 4352 2117 Web: www.micromex.com.au Email: [email protected]