• Principles of draft ten year financial plan (2017-27) accepted by audit and risk management committee.
• Plan confirms Kings Square city centre renewal project as central to providing a solid financial base for the City of Fremantle and a strong economic future for Fremantle as a whole.
• Reserves to be reinstated to current levels by 2027.
• The ability for all debt to be paid off within 10 years of Kings Square redevelopment.
• Demonstrates all of the above can be delivered with CPI rate increases.

The City of Fremantle’s Audit and Risk Management Committee this week approved the principles of a draft ten year financial plan (2017-27) which confirms the City has the ability to deliver its portion of the $270m redevelopment of the Fremantle city centre with CPI-based rate increases and without a need for future sale of income generating assets.

The long-term plan was also developed to deliver balanced annual budgets and restore reserves to current levels (~$20m) within the ten year period of the plan. 

Fremantle Mayor Brad Pettitt said the draft plan included the City’s largest capital works program in its history to deliver a renewed city centre and strengthen the City’s long-term financial position.

“The redevelopment of Kings Square is a major long-term investment in the economic future of Fremantle and the revised financial modelling which includes the latest information on Kings Square costs demonstrates this,” Mayor Pettitt said.

“This year the most important Fremantle capital works program in a generation will commence, delivering 2 000 new workers to Freo and injecting more than $350m into the local economy.

“Before this investment in the Fremantle city centre there was a serious fear Fremantle was on an unsustainable economic trajectory. The City committing to the catalyst Kings Square project in 2013 has renewed investor confidence and has been a major contributor to the $1.3b development boom we now see in Freo.

“We’ll be prioritising the Kings Square development over the next two financial years and adjusting budgets accordingly, but importantly our long-term plan demonstrates the ability to deliver this project based on CPI-based rate increases,” Mayor Pettitt said.

The total estimated project cost for the new library, civic and administration building is $50m.

The draft plan will be presented to full council on Wednesday 24 May.

Background

The previous City of Fremantle Long Term Financial Plan (2015-25) was adopted by council in 2015. There is a requirement to review the corporate planning process every two years

Over the past six months the City has been finalising indicative costs for the redevelopment of Kings Square to provide data for long term financial planning. 

At its core, the $270m project is an integrated redevelopment of key sites in Fremantle’s Kings Square precinct. It includes the redevelopment or refurbishment of the Queensgate Centre, Queensgate car park and Spicer site and the former Myer building.

It will also deliver new civic/community buildings including a new library, council chambers, community meeting rooms and administration offices as well as enhanced public spaces, commercial and retail offerings and a new visitor centre.

The project was triggered by the confirmation late last year that a state government department will relocate to Kings Square to become the major commercial tenant for the City’s project partner Sirona Capital.

The project will create a civic, retail, commercial and community hub that is a vibrant, active and safe place which reflects Kings Square’s unique position in the heart of Fremantle.