The City of Joondalup's draft 2026-27 budget places a strong emphasis on Perth's northern coastline, with significant funding earmarked for projects from Burns Beach to the Sorrento Surf Life Saving Club. However, these multimillion-dollar investments may necessitate reductions in various community services.
Capital Works Program Highlights
The budget features a $48 million capital works program, led by a $7.9 million allocation toward the $19.3 million Sorrento SLSC and foreshore precinct redevelopment. Other major projects include $6 million for the Burns Beach coastal node redevelopment, $4.1 million to upgrade the Joondalup and Hodges Drive intersection, $1.9 million for the Northshore Drive boulevard upgrade, and $1.3 million for improvements on Eddystone Avenue between Joondalup and Honeybush drives.
Service Reductions to Address Deficit
Despite these investments, the city faces a forecast $6.8 million operating deficit and increasing pressure on its long-term finances. To counter this, the draft budget proposes several service cuts, including the closure of the Volunteer Joondalup Resource Centre and the elimination of multiple community outreach programs. Specifically, the city is discontinuing its discovery outbound program for adults aged 50 and older, ending its library community outreach program, and ceasing funding for the Constable Care foundation.
Reliance on Reserves
The city plans to draw over $21.4 million from its reserves to fund major projects, a move that will nearly deplete its asset renewal reserve. Consequently, the city acknowledges that all future capital works will require comprehensive review to ensure affordability and deliverability.
Other Capital Projects
Additional projects in the capital works program include $1.2 million for the Prince Regent Park facility upgrade, $1 million for the Hillarys cycle network expansion, and nearly $1 million for the Chichester Park skate and play facilities upgrade.
Budget Overview
Total expenditure for the 2026-27 financial year is estimated at $222.7 million, down from $224.1 million in the current fiscal year. Operating expenditure accounts for $203 million, covering employee costs, materials and contracts, and utilities. Rates are projected to generate $124 million, the largest revenue source, supported by a proposed average rate increase of 6.5 percent.
Economic Context
City officers noted that the budget was developed amid a volatile economic environment driven by global uncertainty, which has influenced budget decisions. Factors include the Middle East conflict's impact on energy prices and inflation, with inflation remaining above the RBA's target range and the cash rate returning to the peak of the 2023-24 tightening cycle. The city also cites cost shifting from other government tiers, challenges in attracting and retaining staff in a tight labour market, and growing community expectations for sporting and community infrastructure.
Balancing Act
Despite the rate increase and service cuts, officers believe the budget strikes a balance between maintaining essential services and ensuring long-term financial sustainability. They highlight that the City of Joondalup has had a cumulative rate increase of only 8.9 percent over the past five years, compared to an average of 18.2 percent for benchmarked local governments. This has been achieved through prudent financial management, but the city now needs to work diligently to return the annual operating result to a balanced position.
The council is expected to vote on and adopt the draft budget at its June 23 meeting.
