Agenda of Ordinary Meeting - Monday, 24 June 2024

Ordinary Meeting – Monday 24 June 2024

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CL24.175 Financial Sustainability Productivity and Efficiency Report

HPERM Ref: D24/238496

Department: Financial Sustainability

Approver: Robyn Stevens, Chief Executive Officer

Reason for Report

The purpose of this report is to inform the Councillors and the community of the productivity and efficiency actions that have been taken to improve Council’s financial sustainability from March to May 2024.

Recommendation

That Council:

1. Receive the productivity and efficiency report for the period from March to May 2024.

2. Note the actions taken during the quarter that have supported Council’s financial sustainability.

3. Note that the organisation’s top priority is to address the current financial sustainability challenges, and there is significant work in progress to realise recurrent savings in the next financial year.

4. Note that future productivity and efficiency reports will align to the Quarterly Budget Review timeline to enable reporting on achievements realised in the quarter.

Options

1. The productivity and efficiency report for the period from March to May 2024 be received for information.

Implications: Nil

2. Further information regarding action taken during the quarter to improve Council’s financial sustainability be requested.

Implications: Any changes or additional matters can be added to future reports.

Background

The financial sustainability productivity and efficiency report provides a summary of actions taken to address Council’s financial sustainability challenge in the last quarter.

In January 2024, Council resolved under MIN24.44 to apply financial efficiencies and savings in the organisation commencing immediately and ongoing over the next four years. A report is to be provided to the Council every quarter to outline efficiencies and savings, with a savings target of $5 million per year.

The report also addresses the AEC report recommendation (CL23.420) to report to Council on a quarterly basis the progress in achieving efficiency and implement process to track the achievement of the productivity and efficiencies target.

To review detailed project activity, please refer to the monthly financial sustainability reports that have been presented to Council during the quarter:

· March 2024 (CL24.68)

· April 2024 (CL24.95)

· May 2024 (CL24.117)

Improved financial management – FY2024/25 budget process

A bottom-up budget process was adopted in building the FY2024/25 operational and capital budgets. This approach provides a realistic budget that is reflective of the cost incurred to deliver our current services at the current agreed service level. It also ensures all costs required to meet legislative requirements are adequately budgeted for. This results in a draft 2024/25 operating deficit which is larger than Council’s previous budget, however, is in line with the historical actual results achieved by Council.

Council has reduced its reliance on borrowing, with no unrestricted general fund borrowings proposed to be drawn down for works in FY2024/25.

In preparing for the FY2024/25 budget, Council’s enterprise Project Management Office (ePMO) ran an improved capital budget process, where all candidate projects were assessed on their readiness and criticality. The proposed total capital works program for FY2024/25 is $126.9m, which is a $61.3m reduction from the FY2023/24 capital program ($188.2m) adopted in June 2023. The capital works program is reflective of Council’s delivery capacity, taking into account financial and staffing resources. It is reflective of previous years capital spend and provides the community with a realistic expectation as to what capital projects will be delivered in FY2024/25.

Reducing costs – pausing capital projects

13 significant projects were paused during the quarter. The estimated total project cost to deliver the 13 capital projects was $105 million. The majority of the projects did not have a funding source identified for the full cost of the project (unfunded totalled $65 million across the 13 projects).

Pausing projects resulted in previously accepted grant monies being returned to their respective funding bodies, as well as a reduction in Council’s budget FY2023/24 loan borrowings of $2.5m, and further reductions in anticipated future year borrowings.

Reducing costs – staffing

Council resolved under MIN24.44 to consider placing a staffing freeze on all recruitment positions except where the Executive Management Team (EMT) determines whether the position is required or to be filled by internal recruitment to provide a career path for existing staff.

A process was established under the financial sustainability project, where the EMT review each vacancy and any new positions to determine if and when they’re required to fulfill operational, regulatory or required service level.

As a result of this process, there is a notable decrease in the number of roles being advertised (1 Feb to 28 May 2023: 105 vacancies advertised, 1 Feb to 28 May 2024: 69 vacancies advertised). This represents a 34% reduction in recruitment in 2024 compared with the same period last year. EMT have declined or placed on hold 46 recruitments during this period, resulting in reduced staff costs.

In consultation with Councillors, the CEO has commenced a review of staff costs to identify opportunities for efficiencies. The outcome of the review will be shared in a future quarterly report.

Reducing costs – increased cost controls

Under the financial sustainability project, increased cost control has been established to improve the financial position of Council. Since March 2024, all Managers were asked to do the following to contain costs within the FY2023/24 financial year, including:

· No new tenders

· No discretionary spending

· No consultants or contractors unless approved by Director

· No overtime or leave in lieu unless necessary (such as emergency response)

· Work with teams to reduce leave balances

· Manage budgets closely with no over-spends

Forecasting FY2024 year end results, the General Fund operating expenses are on track to be 0.46% below the adopted budget ($232M actuals vs. $233M budget, favourable). This is due to reduced spending on materials and services.

Reducing costs – other efficiency ideas

Throughout May, all department managers were tasked with identifying cost savings and revenue generating initiatives that will contribute to the savings target. As part of this ideas generation, staff submitted 284 ideas for consideration:

· 156 budget reduction ideas

· 85 revenue generation ideas

· 43 general business improvement ideas (may lead to efficiencies but no direct financial benefit identified)

These ideas have been triaged, and classified as:

· 119 progress immediately

· 114 business case or workplace change impact assessment needed

· 51 future considerations

As efficiency ideas are implemented, they will be reported in this report and adjustment made to Council’s budget through the quarterly budget review process.

Reducing debt – land sales

Under Council’s financial sustainability project, a review was undertaken of Council-owned property that could be sold to assist with the financial situation. As a result, investigations have been done across Council’s land portfolio to identify land for immediate sale and those to be further investigated for potential sale or maintained for future strategic land use. Multiple sites that are operational and community land require further investigation, rezoning and reclassification.

The properties subject to the investigation are included on Council website under “Property Sales Program”.

On 8 April 2024 Council resolved to sell nine properties of land immediately and proceed with the investigation of another 15 properties that could include rezoning or reclassification to enable their sale to assist with the current financial situation. All properties identified for potential sale are to be investigated for underuse or being surplus to the needs of the Council and community.

Land valuations will be done by professional Property Valuers and property sales will be managed by independent real estate agents who will engage in a competitive sales campaign to ensure the best sale price. Council has conservatively estimated the land sales proceeds to be $15M, and this has been accounted for in the draft FY2024/25 budget. Council has budgeted to use these proceeds as follows:

· $5.375M to fund capital works

· $9.625M to repay existing debt

This strategy is discussed in CL24.118 Draft Delivery Program Operational Plan and Budget 2024-25 - Public Exhibition which was presented to, and endorsed by, Council on 6 May 2024.

$7.2 million in revenue from land sales is expected to be received in June 2024, and this will be formally reported in the next quarterly productivity and efficiency report.

Financial Implications

Overview of reporting process

This report will track progress against the $5 million per annum savings target, by recording the financial sustainability initiatives that have resulted in a reduction in Council’s operational expenditure or an increase in Council’s revenue. Savings realised will be tracked separately for recurring savings/income and one-off savings, as the one-off savings do not count towards the savings target.

Recurrent savings

Recurring savings will permanently reduce Council’s operating budget by the amount of savings found and will reduce Council’s structural deficit. New or increased income streams will increase Council’s total revenue expectation in the budget.

As operational savings are identified through the Financial Sustainability Review project, and these savings are resolved by Council and ready for implementation, the operating budget will be revised at each Quarterly Budget Review (QBR) process with the savings being quarantined with the expectation they are used to rebuild Council’s unrestricted cash position, assist in funding future capital works, or assist with the repayment of Council borrowings.

The recurrent savings performance will be reported as per the following example:

Initiative	Saving/Income	Reported	Amount
e.g.1 Reduced opening hours at a facility	Saving	FY25 QBR1	-$40,000
e.g.2 A new fee for a service previously not charged	Income	FY25 QBR1	+$25,000
Recurrent productivity and efficiency TOTAL			$65,000

The recurrent savings report will be cumulative, with the newly realised efficiencies added each quarter.

One-off savings

One-off savings are identified efficiencies that can only be saved in the current year but will need funding for future years. One-off savings help to improve Council’s cash position by not spending the budget in the current year, however it doesn’t help to fix Council’s structural deficit.

The one-off savings will be reported as per the following example:

Initiative	Saving/Income	Realised	Amount
e.g.1 Land sales realised (MIN24.179)	Income	June FY24	+$15,000,000
e.g.2 Reduced community donations FY25 only (MIN24.150)	Saving	FY25 QBR1	-$20,000
One-off productivity and efficiency TOTAL			$15,020,000

March 2024 – May 2024 report

Recurrent saving realised:

Many initiatives are underway that will realise recurrent savings in the next 12 months, however no recurring savings have been found in the current quarter March – May 2024. It is expected that the next quarterly report will report on savings that will be realised in the first quarterly budget review for financial year 2024-25. This report will be for the period June – August 2024, and will be reported to Council in November 2024 (after election caretaker period and in line with QBR1 reporting).

One-off savings:

Initiative	Saving/Income	Realised	Amount
Pause capital projects	Saving	FY24 QBR3	-$90,000,000 (total project cost excluding grant funding)
Reduced department spending (no discretionary spending, holding vacancies)	Saving	FY24 QBR3	-$1,700,000
One-off productivity and efficiency TOTAL			$91,700,000

Ordinary Meeting – Monday 24 June 2024

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CL24.176 Shoalhaven Australia Day Awards Program - Moving Forward

HPERM Ref: D24/196524

Department: Business Assurance & Risk

Approver: Kerrie Hamilton, Director City Performance

Attachments: 1. Australia Day Awards 2024 - Nominations Form ⇩

2. Australia Day Awards - Guidelines and Criteria ⇩

3. Draft - Online Nomination Form ⇩

Reason for Report

For Council to provide direction on any changes to the Shoalhaven Australia Day Awards program following the briefing of Councillors held on 2 May 2024.

Recommendation

That Council provides direction on how to proceed with the future Shoalhaven Australia Day Awards and advise of any changes they wish to make to the Awards program.

Options

1. Adjust the Shoalhaven Australia Day Awards program for 2025 and future Award arrangements as the Council considers appropriate.

Implications: Council will need to provide direction within the resolution of any changes / amendments to be made. Corresponding amendments will be made to the Australia Day Awards – Guidelines and Criteria. Councillors indicated at the briefing in May that they would propose relevant changes when considering this report.

The following are possible aspects of the Awards program Council may wish to consider making to changes to:

· Award categories

· Name and date of the Awards

· The nomination form

· The Judging Panel

· Communications strategy

2. Continue with the Australia Day Awards in its current format for 2025 and the Australia Day Awards – Guidelines and Criteria be endorsed without amendment (Attachment 3).

Implications: Council will commence the application process and promote the Awards as done the previous year.

Background

On 2 May 2024 Council received a briefing in response to the below resolution (MIN23.437):

“That Council proceed with the 2024 Australia Day Awards as per the status quo with adjustments to the award categories to be determined at a future Councillor Briefing for the 2025 Australia Day Awards.”

This resolution related to the report to Council on 14 August 2023 (Agenda - 14 August 2023), which sought Council’s direction on the future of the Shoalhaven Australia day Awards and any changes to the program.

At the briefing, Councillors were provided with information regarding the current Awards program, the outcomes of the 2024 Awards, feedback from other Councils on their Awards programs and potential ways forward. The following are the key aspects of the Awards program:

Awards Categories

In the 2019 Australia Day Awards the number of Award categories increased to 8, these categories included:

1. Citizen (25 and over)

2. Young Citizen (24 and under)

3. Sports Person (19 and over)

4. Junior Sports Person (18 and under)

5. Outstanding Contribution to Environment Award

6. Outstanding Contribution to an Inclusive Shoalhaven Award

7. Outstanding Contribution to Arts & Culture Award

8. Outstanding Emerging Artist

In 2018 only the first 6 of those categories were used and in 2017 only the first 4. The increase of categories was the result of an approach to combine separate award ceremonies and categories to achieve greater interest. Though the intention was to achieve greater interest, as the previous report and the Councillor briefing outlined, the number of nominations in general has decreased over recent years, as the following 7 year trend reflects:

· 2018 – 38 nominations

· 2019 – 37 nominations

· 2020 – 23 nominations

· 2021 – 17 nominations

· 2022 – 20 nominations

· 2023 – 28 nominations

· 2024 – 28 nominations

In addition to decreasing nominations, it should be noted by Councillors that some of the categories listed above have received little to no nominations over the past couple of years.

The following is a list of nominations for each category from 2018:

Category	2024	2023	2022	2021	2020	2019	2018
Citizen Award	9	12	2	6	6	11	17
Young Citizen	5	2	0	3	2	4	2
Outstanding Contribution to an Inclusive Shoalhaven Award	5	11	2	3	3	8	5
Outstanding Contribution to Environment Award	4	1	5	1	1	2	6
Outstanding Emerging Artist Award	0	1	3	0	1	2	N/A
Outstanding Contribution to Arts & Culture Award	2	2	1	2	3	10	N/A
Sports Person Award	2	0	2	0	0	1	3
Junior Sports Person	1	3	5	0	7	4	5

It is worth noting that in 2024, an incentive was provided to nominators to go in a draw to win a Holiday Haven gift Voucher valued at $500 in order to increase nominations. Additional funds were spent to increase awareness in 2024 however, the numbers declined or remained the same for many categories.

Reducing the number of categories may increase the prestige of the Awards and make the criteria simpler for those nominating. Council could, for example, reduce the categories to the following five:

1. Citizen

2. Young Citizen

3. Sports Person

4. Outstanding Contribution to Environment Award

5. Outstanding Contribution to Arts & Culture Award

This option is also reflected by other NSW Councils, which have a lower number of categories:

Kiama (4 Categories): Citizen Award, Young Citizen (24 years or under), Senior Citizen (65 years or over), Community Group of the Year

Bega (3 Categories): Citizen Award, Young Citizen (24 years or under), Senior Citizen (65 years or over)

Newcastle (5 Categories): Citizen of the Year, Young Citizen (30 years or under), Senior Citizen (60 years or over), Community Group of the Year, Freeman of the City

Name & Date of Awards

The name and date of the Awards was another aspect of the program discussed with Councillors at the briefing on 2 May. Councillors were advised that in September 2023, neighbouring Council, Kiama decided to present the Awards in August as part of Local Government Week and rename the program Kiama Local Government Awards. We are advised that rationale behind this decision is as follows:

“The suggestion to forgo the Australia Day Awards in 2024 and have Kiama Local Government Awards at another time is in a desire to foster a more inclusive and diverse celebration of our national identity. We acknowledge that January 26th is a date that has different meanings for different Australians. While it represents the establishment of British settlement in Australia for some, it is also a day of reflection and mourning for others, as it marks the beginning of significant hardships for Indigenous Australians. In response to this diversity of perspectives, it is important to create an inclusive Australia Day celebration that respects and acknowledges the full spectrum of our community's views. Therefore, we have decided to redirect our efforts toward community-led events and a citizenship ceremony to unite our community while fostering a spirit of inclusivity. We (as Council) are the arbiters of the awards, we felt that this valuable recognition would be better placed within Local Government Week, the first week of August.”

An alternative to current award arrangement council includes rebranding to The Shoalhaven Community Awards and/or changing the timing of the awards so that they are held:

· During Volunteers week (May)

· Or during Local Government Week (first week in August)

· Continue to be held on a day close to Australia day.

Other NSW Councils that have amended their approach in this way and have advised that this reinvigorated their awards are:

· Byron Bay Shire

· Lake Macquarie Council

· Eurobodalla

Nomination Form

Feedback was received from Councillors that the nomination form could be more accessible and less onerous for members of the community to complete. A copy of the 2024 nomination form can be found at Attachment 1. The 2024 Nomination form was reduced from the 2023 Nomination form by:

· Removing the residential address field

· The postal address field was deemed as optional.

· The selection criteria were refined from 13 points down to 7 points.

If Councillors were to make any changes, it should be kept in mind that staff do require certain information to be provided to be able to deem an application eligible as do the Judging Panel to make an informed decision in the Awards process, such as:

· Contact details of the nominee – this allows staff to confirm the nominee accepts the nomination and consents to participate in the process (as a number of nominees have declined to accept the nomination) and to enable an invitation to the Awards ceremony to be sent.

· Contact details of the nominator – this allows staff to contact the nominator in cases where further/updated information is required or to notify them of a nominee declining to accept the nomination and to enable an invitation to the Awards ceremony to be sent.

· Detailed nomination outlining the nominee’s background, achievements, and contribution to community – this allows the Judging Panel to make informed decision about the appropriate category and appropriately assess and compare nominations to identify those who have made the most significant impacts to the Shoalhaven.

Staff are currently working on a more accessible form to be provided in an online format and to allow users to save their progress as they go, leave the webpage, and return at a later time before submitting the completed form. This was an issue identified during the last submission process.

An example of the updated form and webpage are at Attachment 3. This webpage and online form are designed to minimise the fields required to be completed in the form by providing important information regarding eligibility and the process that will follow, ahead of seeking community members to complete the form.

The current information requested on the drafted form is considered essential to running the program and retaining a sense of prestige for nominations by calling our community to make meaningful nominations.

The Judging Panel

The current format and the role of the Judging Panel can be found in the Australia Day Awards Guidelines and Criteria (Attachment 2).

Panel members are appointed and/or reappointed each year in March by the elected Mayor of the Council during that term. The Australia Day Panel must be an odd number and not exceed 9 members.

The Judging Panel for the 2025 Awards is yet to be confirmed, as membership will be considered and confirmed by the newly elected Mayor in October 2024.

Policy Implications

The Australia Day Awards Guidelines and Criteria in their current format are attached to this report (Attachment 2). Any amendments that are made will be reflected in the Australia Day Awards Guidelines and Criteria prior to nominations opening.

Community Engagement

The process of promoting the Awards generally commences in September, after the information on the application forms is updated for the upcoming year.

This year’s awards were promoted across social media platforms (paid advertising), Council’s website, Council’s networks (I.e. CCB’s, sport groups, art groups and Council Committees), and via printed flyers/posters. It is worth noting that despite choosing not to advertise via newspapers and radio networks, which add a significant cost, we achieved the same number of nominations in 2024 and 2023, and more community engagement on our platforms. The results of the community engagement from the latest 2024 Australia Day Awards are as follows:

· Total Get Involved page visits: 1.21k

· Document downloads: 55

· FAQ visits: 117

· Nominations received through the Get Involved engagement platform: 23

Media contribution

· Social media:42.9%

· Council newsletter: 19%

· Radio: 14.3%

· Website: 12.8%

· Electronic Direct Mail Marketing :9.5%

All incoming applications are acknowledged on receipt. Upon applications closing, a Judging Panel meeting is arranged for the review of the applications and subsequent determination of the winners.

Trophies, certificates and invitations are arranged for the event in addition to booking a facility and arranging catering. The event is held in January close to Australia Day each year with the location alternating each year between Nowra and Ulladulla.

Financial Implications

The promotion campaign for the 2024 Awards ran from 13September - 24 November 2023. The details and financial cost of the 2024 Awards campaign was as follows:

Platform	Audience	Exposure	Result	Cost*
Council website	Homepage banner Get Involved page	45,000/month 1,200 total visits	23 nominations via Get Involved	Nil
Print	A5 flyers Posters Printed nomination forms	Admin building Ulladulla Service Centre Libraries Indoor Sports Centre	5 nominations via the paper form	$500
Social media	Facebook (26k followers) Instagram (4.5k followers) LinkedIn Community Facebook	2 paid FB posts 4 x Organic FB & IG posts	180 clicks to the website 25k reach	$100
Digital	Community newsletter	3,699 subscribers	52.6% open rate 9% click rate 21 clicks on article	Nil
Email	CCBs, sport and art groups, advisory committees	100+	Undefined	Nil
Media release	Media and news outlets in the Shoalhaven	113 subscribers	Undefined	Nil
Internal comms	Staff newsletter (Sep edition)	1,500	Undefined	Nil
			Total cost:	$600

*Cost does not include staff time

The total cost of the 2024 Awards Ceremony event was:

Item	Cost
Trophies	$728.00
Venue hire	$2660.00
Ambassador accommodation & gift	$257.45
Catering	$5126.00
Technical support	$1098.00
Entertainment	$200.00
Emcee & Elder	$1505.00
Photographer	$770.00
Frames, paper etc	$100.00
Event staff	$400.00
Total	$12,844.45

Total spent for the 28 Nominees for the Australia Day Awards 2024 - $13,444.45

It is worth noting that $2,051.46 was saved on the total cost of the Australia Day 2024 Awards as compared to 2023. These savings were primarily made in the promotions campaign, as can be seen in comparison to last year’s report:

The details and financial cost of the 2023 Awards campaign was as follows:

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The total cost of the 2023 2024 Awards Ceremony event was:

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Total spent for the 28 Nominees for the Australia Day Awards 2023 - $15,495.91

Fund	Monthly Revised Budget $	Actual Earned $	Difference $
General	281,333	303,005	21,672
Water	87,989	164,792	76,803
Sewer	56,904	63,790	6,886
Total	426,226	531,587	105,362

Fund

Monthly Revised Budget
$

Actual Earned
$

Difference
$

General

281,333

303,005

21,672

Water

87,989

164,792

76,803

Sewer

56,904

63,790

6,886

Total

426,226

531,587

105,362

Fund	Revised Total Annual Budget $	Actual YTD $	% Achieved
General	3,312,464	3,369,705	101.73%
Water	1,036,000	1,832,647	176.90%
Sewer	670,000	709,412	105.88%
Total	5,018,464	5,911,763	117.80%

Fund

Revised Total
Annual Budget
$

Actual
YTD
$

%
Achieved

General

3,312,464

3,369,705

101.73%

Water

1,036,000

1,832,647

176.90%

Sewer

670,000

709,412

105.88%

Total

5,018,464

5,911,763

117.80%

Ordinary Meeting – Monday 24 June 2024

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CL24.179 Delivery Program Operational Plan, Budget 2024/25 - Exhibition Outcomes

HPERM Ref: D24/210280

Department: Corporate Performance & Reporting

Approver: Robyn Stevens, Chief Executive Officer

Attachments: 1. Draft Delivery Program Operational Plan and Budget 2024-25 - Post Exhibition (under separate cover) ⇨

2. Draft Fees and Charges 2024-25 - Part 1 - Post Exhibition (under separate cover) ⇨

3. Draft Fees and Charges 2024-25 - Part 2 - Post Exhibition (under separate cover) ⇨

Reason for Report

The purpose of this report is to seek Council’s adoption of the 2024/25 Delivery Program and Operational Plan, Budget and Fees & Charges.

The report provides a summary and comments related to the outcomes of the public exhibition process undertaken from 8 May to 10 June 2024.

Recommendation

That having considered the submissions received as part of the exhibition process for the Draft Delivery Program and Operational Plan 2024/25 including Budget, Capital Works Program and Fees and Charges, Council:

1. Adopt the 2024/25 Delivery Program and Operational Plan and Budget inclusive of the following changes:

a. Updates to DPOP Actions and KPIs as outlined in this report

b. Revision of the capital works listing as outlined in Attachment 1.

c. Note that the budget reflects Council’s current service offerings, service levels and organisational structure. As savings are identified, endorsed, and implemented, they can be reliably measured. Once reliably measured, adjustments will be made to the budget at each quarter budget review to recognise the recurrent, and/or one off savings achieved.

2. Adopt the 2024/25 Fees and Charges Part 1 and Part 2 with the following changes:

a. Added new interment services levy as announced by Cemeteries and Crematoria NSW (CCNSW)

b. Amended regulated Development Application fees as announced by the Department of Planning, Housing and Infrastructure

c. Rectified Holiday Haven Van Occupancy Annual Fee with an additional line ‘All Other Parks’ - $7,907 (incl. GST)

d. Rectified Effluent Removal Charges for Properties with Bi-Weekly service

3. Resolve to make the following rates and charges in accordance with Section 535 of the Local Government Act 1993, inclusive of a 4.50% rate-peg increase as per and Section 506 of the Local Government Act 1993:

a. Make an Ordinary Rate, consisting of an ad valorem rate of 0.09923c for each dollar of rateable land value in addition to a base amount of seven hundred and sixty dollars ($760.00) per rateable assessment, under Section 537 of the Local Government Act 1993, on all rateable land categorised as “Residential”, in accordance with Section 516, for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “RESIDENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and sixty dollars ($760.00) per rateable assessment for the “RESIDENTIAL” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL” rate in accordance with Section 537(b) [base amount percentage is 49.94%].

b. Make an Ordinary Rate, consisting of an ad valorem rate of 0.09923c for each dollar of rateable land value in addition to a base amount of fifty dollars ($50.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land which is zoned so as not to permit any building (i.e.; Small Lot Rural Subdivisions) and categorised as “Residential”, in accordance with Section 516, sub category “NON-URBAN”, in accordance with Section 529(2)(b), for the period 1 July 2024 to 30 June 2025, and in accordance with Section 543(1), this rate be named “RESIDENTIAL NON-URBAN”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of fifty dollars ($50.00) per rateable assessment for the “RESIDENTIAL NON-URBAN” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL NON-URBAN” rate in accordance with Section 537(b) [base amount percentage is 37.92%]

c. Make an Ordinary Rate, consisting of an ad valorem rate of 0.19932c for each dollar of rateable land value, in accordance with Section 518 of the Local Government Act 1993: “Land is to be categorised as ‘business’ if it cannot be categorised as farmland, residential or mining”. Excepting all rateable land in the subcategories of Commercial/Industrial, Nowra, and Major Retail Centres, an ordinary rate be now made for the period of 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “BUSINESS”.

d. Make an Ordinary Rate, consisting of an ad valorem rate of 0.51600c for each dollar of rateable land value in addition to a base amount of seven hundred and sixty dollars ($760.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub-category “NOWRA”, in accordance with Section 529(2)(d), for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “BUSINESS - NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and sixty dollars ($760.00) per rateable assessment for the “BUSINESS - NOWRA” subcategory will not produce more than 50% of the total amount payable by the levying of the “BUSINESS - NOWRA” rate in accordance with Section 537(b) [base amount percentage is 16.75%].

e. Make an Ordinary Rate, consisting of an ad valorem rate of 0.17380c for each dollar of rateable land value in addition to a base amount of seven hundred and sixty dollars ($760.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land used or zoned for professional/commercial trade or industrial purposes, determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub category “COMMERCIAL/INDUSTRIAL”, in accordance with Section 529(2)(d), for the period of 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “BUSINESS - COMMERCIAL/INDUSTRIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and sixty dollars ($760.00) per rateable assessment for the “BUSINESS – COMMERCIAL/INDUSTRIAL” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – COMMERCIAL/INDUSTRIAL” rate in accordance with Section 537(b) [base amount percentage is 31.33%].

f. Make an Ordinary Rate, consisting of an ad valorem rate of 0.72930c for each dollar of rateable land value in addition to a base amount of seven hundred and sixty dollars ($760.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on rateable land Lot 2 DP 874730 determined to be a major retail centre and categorised as “Business”, in accordance with Section 518, sub category “MAJOR RETAIL CENTRE - NOWRA”, in accordance with Section 529(2)(d), for the period of 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “BUSINESS - MAJOR RETAIL CENTRE - NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and sixty dollars ($760.00) per rateable assessment for the “BUSINESS – MAJOR RETAIL CENTRE - NOWRA” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – MAJOR RETAIL CENTRE - NOWRA” rate in accordance with Section 537(b) [base amount percentage is 0.96%].

g. Make an Ordinary Rate, consisting of an ad valorem rate of 0.35130c for each dollar of rateable land value in addition to a base amount of seven hundred and sixty dollars ($760.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on rateable land Lot 1 DP 1182358 determined to be a major retail centre and categorised as “Business”, in accordance with Section 518, sub category “MAJOR RETAIL CENTRE - VINCENTIA”, in accordance with Section 529(2)(d), for the period of 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “BUSINESS - MAJOR RETAIL CENTRE - VINCENTIA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and sixty dollars ($760.00) per rateable assessment for the “BUSINESS – MAJOR RETAIL CENTRE - VINCENTIA” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – MAJOR RETAIL CENTRE - VINCENTIA” rate in accordance with Section 537(b) [base amount percentage is 1.85%]

h. Make an Ordinary Rate, consisting of an ad valorem rate of 0.07520c for each dollar of rateable land value in addition to a base amount of one thousand and twelve dollars ($1,012.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “FARMLAND”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one thousand and twelve dollars ($1,012.00) per rateable assessment for the “FARMLAND” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND” rate in accordance with Section 537 (b) [base amount percentage is 32.99%].

i. Make an Ordinary Rate, consisting of an ad valorem rate of 0.03970c for each dollar of rateable land value in addition to a base amount of one thousand one hundred and forty-four dollars ($1,144.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, sub category “DAIRY FARMERS”, in accordance with Section 529(2)(a), for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(1), this rate be named “FARMLAND - DAIRY FARMERS”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one thousand one hundred and forty-four dollars ($1,144.00) per rateable assessment for the “FARMLAND – DAIRY FARMERS” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND – DAIRY FARMERS” rate in accordance with Section 537(b) [base amount percentage is 49.96%].

j. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.38260c for each dollar of rateable land value in addition to a base amount of two thousand six hundred and seventy-four dollars ($2,674.00), for the cost of road upgrades required to enable property owners to develop their allotments in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties with building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate, in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two thousand six hundred and seventy-four dollars ($2,674.00) per rateable assessment for the “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL” will not produce more than 50% of the total amount payable by the levying of the “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL” in accordance with Section 537(b) [base amount percentage is 49.98%].

k. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.07093c for each dollar of rateable land value in addition to a base amount of two hundred and ninety-seven dollars ($297.00), for the cost of the road upgrades in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties without building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two hundred and ninety-seven dollars ($297.00) per rateable assessment for the “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL” will not produce more than 50% of the total amount payable by the levying of the “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL” in accordance with Section 537(b) [base amount percentage is 49.83%].

l. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.06743c for each dollar of rateable land value in addition to a base amount of one hundred and nineteen dollars ($119.00) for the cost associated with the Nebraska road construction project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Nebraska Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one hundred and nineteen dollars ($119.00) per rateable assessment for the “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.62%].

m. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.20371c for each dollar of rateable land value in addition to a base amount of one thousand one hundred and forty-two dollars ($1,142.00) for the cost associated with the Jerberra road infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one thousand one hundred and forty-two dollars ($1,142.00) per rateable assessment for the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” in accordance with Section 53 (b) [base amount percentage is 49.98%].

n. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.06870c for each dollar of rateable land value in addition to a base amount of three hundred and eighty-five dollars ($385.00) per rateable assessment for the cost associated with the Jerberra electricity infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of three hundred and eighty-five dollars ($385.00) per rateable assessment for the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.97%].

o. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.36653c for each dollar of rateable land value in addition to a base amount of two hundred and fifty-seven dollars ($257.00) per rateable assessment for the cost associated with the Jerberra Road E2 infrastructure project. In accordance with Section 495(1) the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD E2 SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two hundred and fifty-seven dollars ($257.00) per rateable assessment for the “JERBERRA ROAD E2 SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD E2 SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.85%].

p. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.02175c for each dollar of rateable land value categorised as Business – Commercial / Industrial to meet the costs of business promotions for the Sussex Inlet area and surrounds, in accordance with Section 495(1), which in the opinion of Council is of special benefit to the rateable assessments subject to the rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2024 to 30 June 2025 and, in accordance with Section 543(2), this rate be named “SUSSEX AREA SPECIAL RATE”.

q. Make an Annual Charge for Water Usage and Water Availability, in accordance with Section 502 and 552(1) (a) and (b), for the period 1 July 2024 to 30 June 2025, comprising a Water Usage Charge of $2.50 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Water Availability Charge based on water meter size:

Size of Water Meter Service Connection	Charge 2024/25
20 mm	$145
25 mm	$243
32mm	$391
40mm	$614
50mm	$964
80mm	$2,455
100mm	$3,840
150mm	$8,630
200mm	$15,347

Properties with multiple water meter service connections will be levied an availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “WATER USAGE CHARGE” and “WATER AVAILABILITY CHARGE”, in accordance with Section 543(3).

r. Make an Annual Charge for Sewer Usage and Sewer Availability, in accordance with Section 502 and 552(3) (a) and (b), for the period 1 July 2024 to 30 June 2025, comprising a Sewer Usage Charge of $2.26 per kilolitre for all applicable, commercial and Community Service Obligation categorised properties and a Sewer Availability Charge for all residential, commercial and applicable Community Service Obligation categorised properties based on water meter size:

Size of Water Meter Service Connection	Charge 2024/25
20 mm	$1,028
25 mm	$1,432
32mm	$2,188
40mm	$2,901
50mm	$4,103
80mm	$8,465
100mm	$12,136
150mm	$20,912
200mm	$32,445

Properties with multiple water meter service connections will be levied a sewer availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “SEWER USAGE CHARGE” and “SEWER AVAILABILITY CHARGE”, in accordance with Section 543(3).

s. Make Annual Charges for the availability of a Domestic Waste Management Service, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, on all rateable properties categorised as residential for rating purposes and comprising of a building which is deemed to be a dwelling and located within the defined (urban) waste collection area.

The amount for the standard residential domestic waste management service be $505 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly, and the recycling bin is collected fortnightly other than for a 6-week period from the last Monday that is before Christmas Day during which it is collected weekly. For a higher annual charge of $871, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $383, the 120-litre landfill bin may be substituted for an 80-litre landfill bin. The amount for each 240-litre MGB recycling bin service additional to that included in the domestic waste management service, is $103.

In accordance with Section 543(3), the charge be named “DOMESTIC WASTE CHARGE” and “ADDITIONAL RECYCLING BIN CHARGE”.

t. Make Annual Charges for a rural Domestic Waste collection service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, on rateable properties comprising of a building which is deemed to be a dwelling and located outside of the defined (urban) waste collection area and opt for the rural domestic waste collection service.

The amount for the rural domestic waste collection service be $505 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly, and the recycling bin is collected fortnightly other than for a 6-week period from the last Monday that is before Christmas Day during which it is collected weekly. For a higher annual charge of $871, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $383, the 120-litre landfill bin may be substituted for an 80-litre landfill bin. The amount for each 240-litre MGB recycling bin service additional to that included in the rural domestic waste management service, is $103.

In accordance with Section 543(3), the charge be named “DOMESTIC WASTE CHARGE” and “ADDITIONAL RECYCLING BIN CHARGE”

u. Make an Annual Charge for a Wheel Out Wheel In special on property collection service, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, for participating properties that are the residence of the elderly or the sick, where assistance is required to present bins to the kerbside for collection, in the collection area.

The amount for the wheel out wheel in service is $270 per bin service.

In accordance with Section 543(3), the charge be named “WHEEL OUT WHEEL IN OTHER CHARGE”.

v. Make an Annual Charge for a Wheel Out Wheel In special on property collection service, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, for participating properties that are the residence of the elderly or the sick, where assistance is required to present bins to the kerbside for collection and a medical certificate is provided.

The amount for the wheel out wheel in service is $16 per bin service.

In accordance with Section 543(3), the charge be named “WHEEL OUT WHEEL IN INFIRM CHARGE”.

w. Make Annual Charges for commercial and business use of the Domestic Waste Management Service pursuant to Section 501 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, for participating properties categorised as Business located within the collection area.

The amounts for the extended domestic waste management service for Business properties be $505 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly, and the recycling bin is collected fortnightly other than for a 6-week period from the last Monday that is before Christmas Day during which it is collected weekly. For a higher annual charge of $871, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $383, the 120-litre landfill bin may be substituted for an 80-litre landfill bin. The amount for Business properties opting for a recycling only service is $155 for the first 240-litre MGB for recycling. The amount for each 240-litre MGB recycling service additional to either that included in the extended domestic waste management service or the first recycling only bin service, is $103.

Tiered charging applies for multiple 240-litre services; $871 for one service, $891 for two services, and $1,124 for each additional 240-litre service.

In accordance with Section 543(3), the charges be named “COMMERCIAL WASTE CHARGE”, “COMMERCIAL RECYCLING BIN CHARGE” and “ADDITIONAL COMMERCIAL RECYCLING BIN CHARGE”.

x. Make an Annual Charge, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, of $109 per assessment for administration and new works associated with future provision of domestic waste management services. The charge to be applied to any properties categorised as Residential which have any boundary adjacent to a road receiving an urban domestic waste management service and

i. Does not have a dwelling situated thereon, or

ii. The closest point of the dwelling is 100 metres or more from the boundary of the road and the ratepayer chooses not to receive a domestic waste management service.

In accordance with Section 543(3), the charge be named “VACANT LAND SERVICE AVAILABILITY CHARGE”.

y. Make an Annual Charge for Stormwater Management Services, pursuant to Section 496A of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, of $25.00 per eligible residential or business rate assessment and $12.50 per strata assessment. In accordance with Section 543(3), the charge be named “STORMWATER MANAGEMENT SERVICE CHARGE”.

z. Make Annual Charges for Onsite Sewer Management Services, pursuant to Section 501 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, contributing to the costs associated with the ongoing inspection and approval to operate requirements for an onsite sewer management (OSSM) system/s, based on number of systems, located on residential and commercial properties, reduced for eligible pensioners:

Number of systems	Service Charge 2024/25
1-2 systems - Residential	$69.88
1-2 systems – Residential pensioner	$54.82
3-5 systems – Residential	$116.10
3-5 systems – Residential pensioner	$100.51
More than 5 systems - Residential	$140.29
More than 5 systems – Residential pensioner	$124.70
1-3 systems - Commercial	$125.24
More than 3 systems – Commercial	$166.62
Single pump-out or private pump station inspection	$85.46
High Risk Large system – Commercial	$478.38

In accordance with Section 543(3), the charges be named “ONSITE SEWER MANAGEMENT CHARGE”.

aa. Make Annual Charges for Effluent Removal pursuant to Section 501 of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025, for both residential and commercial properties, where the first 2,500 litres is levied within the service charge, based on the following service frequencies:

Frequency	Service Charge 2024/25
Bi-weekly	$8,606.00
Weekly	$4,303.00
2-weekly	$2,151.50
3-weekly	$1,406.75
4-weekly	$1,075.75
5-weekly	$827.50
6-weekly	$662.00
7-weekly	$579.25
8-weekly	$496.50

In accordance with Section 543(3), the charges be named “EFFLUENT REMOVAL CHARGE”.

bb. Grant a further $10 annual rebate in addition to the existing statutory maximum $250 pensioner concession included on a Rate Notice for the period 1 July 2024 to 30 June 2025, for eligible pensioners.

cc. Grant a further $20 annual rebate in addition to the existing statutory maximum $175 pensioner concession included on a Water Account, applied evenly across Water and Sewer charges for the period 1 July 2024 to 30 June 2025, for eligible pensioners, split $10 for Water charges where water charges apply, and $10 for Sewer charges, where sewer charges apply.

dd. Make an Interest Rate of 10.50% per annum, pursuant to Section 566(3) of the Local Government Act 1993, for the period 1 July 2024 to 30 June 2025 (inclusive), not exceeding the maximum permissible interest rate chargeable on overdue rates and charges, calculated daily, on a simple interest basis.

4. The Chief Executive Officer be delegated to make administrative and/or minor changes if required.

5. Thank the community for providing their submissions as part of the exhibition process and provide a response to each submission, outlining the outcome and actions undertaken relating to the issues raised.

Options

1. To endorse the 2024/25 Delivery Program, Operational Plan and Budget and the proposed recommendations for the making of ordinary and special rates and annual charges.

Implications: Delivery Program, Operational Plan and Budget and rates and charges will be adopted as required by legislation.

2. Not endorse the recommendations and resolve to make changes to the 2024/25 Delivery Program, Operational Plan and Budget or to make rates and annual charges using different values.

Implications: Council would need to provide direction to staff in relation to necessary budget adjustments to accommodate changes to the 2024/25 Delivery Program, Operational Plan and Budget or the recommended alternate rates and charges.

Background

Each year Council is required to outline the activities, programs, services and budget that are proposed for the following financial year. This process is undertaken to ensure that Council is clearly identifying how it will continue to meet the needs and aspirations of the community as specified within the Community Strategic Plan. This forms part of the Integrated Planning and Reporting (IP&R) Framework which is a legislative requirement of the Local Government Act 1993.

A report was provided to Council at the Ordinary Meeting on 6 May 2024 to seek to place the 2024/25 Draft Delivery Program, Budget and Fees and Charges on exhibition. The suite of documents was endorsed for public exhibition for 28 days.

This report outlines recommended changes and presents the final suite of planning documents to be endorsed.

Public Exhibition

In accordance with the resolution of Council, the 2024/25 Draft Delivery Program and Operational Plan (DPOP), Budget and Fees and Charges were placed on public exhibition from 8 May until 10 June 2024.

The engagement was set at the level of inform and consult within the IAP2 framework. The focus of the engagement was to inform the community and ask for feedback on the draft documents. Submissions could be made to Council either via the online Get Involved page, email, letter to Council or over the phone.

Communication & Engagement Activities included:

· Email invitations to provide feedback sent to:

o Community Consultative Bodies (CCB) Executive Committee members

o Council Advisory Committee members

· Overview presentation provided at CCB Executive Meeting 30 May 2024

· “Get Involved” website including online submissions (1,300 total visits)

· Social Media posts and campaigns (3,783 total reach)

· 1 Media release with media mentions/articles

· Details in Council’s monthly e-news, website news items

· Radio advertisements on Shoalhaven Water Fees increases

· Promotional posters, copies of documents at Council Admin and Library facilities

The overall purpose of the community engagement activities were to raise awareness that the draft documents were on exhibition and to encourage submissions.

Summary of Submissions

A total of 65 individual submissions were received during the exhibition period on the DPOP, Budget or Capital Works program. Within these submissions there were several items, requests and suggestions.

Many of the individual submissions also included requests for new projects or items for funding. Some submissions contained multiple issues, items or requests. A summary of each submission is included in Table 1 and are accompanied with a staff comment, recommendation or proposed action in response.

All submitters will receive an email response following adoption of the final documents with additional staff comments alongside the summary provided in Table 1. The table also indicates if the submission was received from a Community Consultative Body (CCB).

Table 1 - Submission items, staff comment and recommended action

Ref #	Submission From	Subject/Comment/Issue	Staff Comment and Recommended Action Required
D001	Community/Resident	Shoalhaven Water Fees - in support	Support of fee increase noted.
D002, D013, D034, D035, D039, D040, D044, D045, D046, D047, D052, D053, D054, D057, D063, D064	Community/Resident	Holiday Haven Annual Fees	The fee for Holiday Van Owners incorrectly published the maximum price charged at Holiday Haven White Sands only ($9,461) and not representative of the fee charged at other Parks ($7,907). Both fees are increasing by 5.5% inclusive of GST. Any submissions relating to this item have been advised the correct fees via email.
D003, D004, D005,	Community/Resident	Shoalhaven Water Fees - objection	Fee increase objection noted. See response D007.
D006	Community/Resident	Shoalhaven Water - suggestion for higher fees for private caravan parks due to water truck road damage	Shoalhaven Water does not supply water to the Bawley Point area, these properties are provided water through private arrangements. It is agreed that all residents and businesses should adopt water saving and conservation practices.
D007 D008, D010, D025, D028, D032, D033,	Community/Resident	Shoalhaven Water Fees - objection; Charge developers for new infrastructure.	Background • The water usage charge has risen by an average of less than 3% per year over the past 10 years. • The water availability charge has risen from $81 per year to $88 per year in the past 10 years ($7 rise in 10 years). • Council’s Water Fund has been in operational deficit for the past 3 years. • There will be no dividend paid from the Water Fund as surplus will not be achieved in 2023/24. Why the increased prices • Council has experienced a significant increase in our operating costs in the past 3 years. The proposed water price increases are targeting a breakeven operational budget for the Water Fund in 2024/25 financial year. • The cost for electricity has increased by 72% in the past 3 years, cost for chemicals has increased by 70% in the same period. The cost for materials and contracting have increased by 30-50%. • During the period of COVID we experienced a sharp reduction in water usage (due to the wet weather during that period). • Our Water and Sewer Funds must also fund our water and sewer capital works programs (renewals, new works etc). Impact of water price increase • For the average residential water customer (155kL per year) the availability charge will rise by $57 per year (or $1.10 per week) and water usage will rise from $77 per year (or $1.48 per week). • In comparison with neighbouring and similar size Councils, Shoalhaven’s water pricing will still be among the very lowest. Developer Works • Shoalhaven Water collects charges from developers to construct infrastructure to support development areas. In the case of Badagarang a Government grant was also received.
D009	Community/Resident	General objection	Noted.
D011	Community/Resident	Operational feedback on efficiencies and staff numbers. Focus should be on essentials with all other non-essential services suspended. Review of spending required.	Feedback on proposed budget and commentary is noted. See response D38.
D012	Community/Resident	Detailed cost control needed; increase profitability of existing assets; reduce headcount.	Feedback on proposed budget and commentary is noted. See response D37.
D014, D015, D016, D017, D018, D019, D020, D021	Community/Resident	Wharf Road boat ramp Shoalhaven Heads renewal prioritised over Myola Boat ramp project	Waterways Infrastructure renewals such as boat launching ramps, pontoons, jetties and slipways are very large and complex projects that generally need to be funded through a combination of grants and Council capital works budget. The much needed replacement and upgrade of the Myola boat launching ramp and associated pontoon is a current commitment with significant grant funding already secured from the State Government. The Wharf Road boat ramp at Shoalhaven Heads has also been identified for future renewal and this project will be pursued when grant funding opportunities arise and Council budget permits.
D022	Community/Resident	Operational feedback on efficiencies and staff numbers. Review of consultant and contractor spending required. Shoalhaven Water Fees - objection.	Feedback on proposed budget and commentary is noted by staff. See response D37.
D023	Community/Resident	Budget / Staffing / Shoalhaven Water Fees - objection.	Objection to fee increases noted. See response D007.
D024	Community/Resident	Shoalhaven Water Fees - objection. Payment assistance.	Objection to fee increases noted. See response D007. Council recognises that the proposed increase in water prices are significant and will impact our customers. Shoalhaven Water has a number of ways which support vulnerable customers: - Pension rebates applied to eligible customers for both water and sewer charges - Payment Assistance Scheme that is administered through a network of local Community agencies, that provide financial support and guidance to residents of the Shoalhaven that are experiencing financial stress.
D026	Community/Resident	Higher fees / Shoalhaven Water Fees - objection / Staffing reductions.	Objection to fee increases noted. See response D007.
D027	Community/Resident	No allocation for individual capital projects. Shoalhaven Water Fees - objection.	Shoalhaven City Council has nominated to advertise budgets for the 24/25 Capital Works program by program line rather than itemised projects. From time to time, projects need to change and it is more informative and relevant to detail how much funding is available throughout the entire program. The $5M NSW Government Pathways projects are in the 24/25 capital program now that funding agreements have been secured.
D029	Community/Resident	Lack of action to address financial sustainability; Reduce employee costs; unacceptable cumulative shortfall.	Feedback on proposed budget and commentary is noted by staff. See response D37.
D030	Milton Ulladulla Croquet Club (MUCC)	Funding for Milton Ulladulla Croquet Clubhouse Facilities at the Ulladulla Sports Park	Council is aware of the matters raised in the Milton Ulladulla Croquet Club’s submission in relation to the draft DPOP 2024/25. The proposed figure ($145,000) is not considered a realistic cost estimate for an adequately specified shed with suitable fit out for the purpose of providing a clubhouse facility. The proposal (as described) is not supported. Furthermore, there is insufficient funding available to support this request at this time. This request will be added to the Register of Community Requests for further consideration as part of a review (underway) of Council’s Community Infrastructure Strategic Plan.
D031	Community/Resident	Budget should be externally audited; consider reduction in some services with financial sustainability the main driver. Shoalhaven Water Fees - support.	Shoalhaven Water does not supply water to the Bawley Point area, these properties are provided water through private arrangements. It is agreed that all residents and businesses should adopt water saving and conservation practices. Feedback on proposed budget and commentary is noted by staff.
D036	Community/Resident	Operational in-house savings; quality control on roads; Object to all increases.	Feedback on proposed budget and commentary is noted by staff.
D037, D038	Community/Resident	Reduce operating costs as they are too high; address excessive loan borrowing and unrestricted cash reserves; address road maintenance; Shoalhaven Water Fees - objection.	A bottom-up budget process was adopted in building the FY2024/25 operational and capital budgets to provide a realistic budget that is reflective of the cost incurred to deliver our current services at the current agreed service level and to meet legislative requirements. This results in a draft 2024/25 operating deficit which is larger than Council’s previous budget however, is in line with the historical actual results achieved by Council. As operational savings, or revenue generation initiatives are identified through the Financial Sustainability Review project, and these initiatives are resolved by Council and ready for implementation, the operating budget will be revised at each Quarterly Budget Review process with the savings being quarantined with the expectation they are used to rebuild Council’s unrestricted cash position, assist in funding future capital works, or assist with the repayment of Council borrowings. A prudent approach has been taken to council loans borrowings in FY2024/25, with borrowing only proposed for Waste Funded projects. This is a significant reduction in borrowing compared to previous budget cycles. Further, Council has budgets to repay$10m in existing general fund loan borrowings utilising the sale proceed from the land sale program. The development of council’s proposed capital budget was performed through our newly established Council’s Enterprise Project Management Office (ePMO). The ePMO performed a thorough review of all requests and focused on those outstanding capital works projects that have commenced and will be incomplete by 30 June 2024 (carry forwards), and projects not yet commenced but need to be delivered in FY2024/25 due to funding deed or other contractual obligations. This review process has ensured that our limited funds have been strategically allocated to our most critical capital projects.
D041	Community/Resident	Object to Fees & Charges increases / Fix Infrastructure; Shoalhaven Water Fees - objection.	Objection to fee increases noted. See response D007.
D042	Community/Resident	Concern Ulladulla Visitors Centre to be managed from Nowra.	Visitor Services are currently run from both Nowra and Ulladulla. Due to the current recruitment freeze resulting in less permanent staff, shifts from staff in Nowra to assist Ulladulla three days per week have been temporarily ceased. Noting that these extra shifts were only every supplementary to business as usual in Ulladulla.
D043	Community/Resident	Funding for Myola Active Transport Grant funded program.	Myola Active Transport project is included in the budget, capital project 132 on page 86. It is part of the NSW Government grant funding of $5M.
D044	Community/Resident	Draft document is not appropriately outlining current financial situation. Focus should be on control of budgets, tackling head count, efficiency measures, and clear measures of success required.	Feedback on proposed budget and commentary is noted. Refer to D037.
D048	Community/Resident	Loss of Shoalhaven Recovery Hub grant-funded staff and programs	Council continues to advocate for funding to provide disaster recovery and social recovery of communities. Council will transition the Recovery Hotline to the customer contact centre from July 2024 and provide support on the most frequent requests.
D049	Community/Resident	Limited time provided for feedback; Shoalhaven Water Fees - objection.	Objection to fee increases noted. See response D007.
D050	Community/Resident	Request Opt-in Green Waste bin service	Request for service noted by staff.
D051	Community/Resident	Financial Sustainability initiative savings targets required; ratepayer subsidy of tourists; Hyams Beach Paid Parking suggestion; Funding for Coastal Management actions.	Feedback on proposed budget and commentary is noted.
D055	Community/Resident	Total Flood Warning System Funding	Council received grant funding from the Australian Government to undertake a scoping study for the implementation of a Total Flood Warning System (TFWS) for Lake Conjola, Burrill Lake and Tabourie Lake catchments. This scoping study will be completed by the end of 2024 and include all technical details required to implement the system. Council has applied for 2/3 grant contribution from the NSW Government for the implementation of the TFWS. The outcome of this application will be released later this year. Council’s Floodplain Management Unit is in strong support of the community feedback to include funding for the implementation of a TFWS in the FY24/25 budget. At this time, 24/25 funding was unable to be allocated to the project but will be reviewed on the outcome of the grant application.
D056	Community/Resident	Roads improvements - Prince Edward Ave, Culburra Beach	Council is aware of the condition of Prince Edward Avenue, this road is not currently planned for resurfacing or rehabilitation within the current capital works plan. Council is currently undertaking a comprehensive road condition survey, which will allow us to prioritise road resurfacing and rehabilitation activities into the future. As such, these works may be identified for future years funding as part of this process.
D058	Community/Resident	Flood Alert System ongoing capital funding	Council has not allocated the $40K in annual funding towards the upgrade of Flood Alert System (Alert 1 to 2) in the 24/25 budget.
D059	Currarong Community Association (CCB)	Various infrastructure and maintenance requests in Currarong: Currarong Road; pedestrian footpath along caravan park; dog beach access signs, replacement of poisoned trees, shower upgrade, disability access for beaches.	Multiple issues and suggestions for capital works program and maintenance in Currarong, Full response will be provided directly to the CCB on the appropriate channel to direct these requests.
D060	Vincentia Ratepayers and Residents Association Inc (CCB)	Frederick Street / Elizabeth Drive Pedestrian Refuge, Shared User Path from Moona Creek to Plantation Point Fit for Purpose, Storm Water Collection and Discharge Solutions.	Multiple issues and suggestions for capital works program and operational budget for Vincentia. This items have been directed to staff for forward prioritising of capital programs.
D061	Community/Resident	Fees and Charges increase queries, Suggestion to review the Shoalhaven Entertainment Centre, Rehabilitate Burrier Road, and capping of Councillor expenses.	CERTIFICATION - Page 4 ‘Applications NOT involving building work’ - These are new charges to cover CDC applications for demolition. Page 5 ‘Principal Certifier Fees' The new fee per inspection is $317.10. Comment per inspection has been added against the fee in the version for adoption. COMMUNITY FACILITIES - Page 23 ‘Destination Facility Function’. The fee only applies to private and commercial one-off functions and will not impact regular hirers. The heritage halls require additional operational funds due to aging heritage infrastructure. Callala Beach Community Centre is a highly utilised wedding venue, and community expectation is that hirers should contribute to the upkeep of the hall in line with their use of the venue (there are two other halls in the village where the lower Village Hall fees apply). INFRASTRUCTURE AND WORKS - Page 64 Tree Inspections - ‘Completion of a Simple Environmental Assessment’ ‘Application for re inspection - These fees have been adjusted to reflect the staff time to complete the work. LAND USE AND PLANNING - Page 71 ‘Search fee to provide information on Dwelling Entitlement Potential’ ‘Certificate Urgency Fee’ - These are both fees for service and are optional at an individual’s discretion. The proposed increases better reflect the work and priority that needs to go into the research and preparation of the certificates. As an alternative to a Dwelling Entitlement Potential request proponents can do their own research/due diligence and confirm the dwelling entitlement status of a property. The Certificate Urgency Fee is for urgent certificate’s that sit outside the normal 10.7 Certificate processing times and require staff to be dedicated to the task. TOURISM - Page 153 ‘Event Application Additional Fee - Traffic Impacts - Class 1 (Down to Class 4) and ‘Event Application Processing Fee - Large Events’ The additional fees have been introduced as a new way to process events impacting on traffic. This will allow the events team to issue Section 144’s under the Roads Act, in place of the current Section 138’s that event organisers are currently required to submit through the NSW Planning Portal. This new fee will be instead of the Section 138 fee and has been tiered to accommodate different levels of traffic impacts. It also allow for partial cost recovery of the multiple teams involved in reviewing the documentation submitted. The increase to the event application fees are to bring the fees in line with other neighbouring Councils, these fees have not been increased for the past two years. The fees are tiered to accommodate different event sizes, with a heavily discounted Not For Profit / Charity rate available.
D062	Community/Resident	Non-core services funding, increasing management expenses, priorities too high level, some measures for success not clear. Shoalhaven Water Fees - objection.	Feedback on draft DPOP and commentary on measures of success is noted. Objection to Shoalhaven Water fees noted.
D065	Shoalhaven Heads Chamber of Commerce and Tourism	Revaluate Council's $500K budget reduction for Economic Development and Tourism and the related impact on local economy, support for local business and social and economic impact of the cuts on delivery on Destination Management Plan, NSW Visitor Economy Strategy.	Reduction in the Economic Development, Tourism & Events budget by $500,000 ongoing, as directed by Council, will see the deletion the entire Tourism Event Support Program. This program supports off-season visitation to the region by way of an ROI of estimated $50million per year to the region. The reduction in support for events has already seen the cessation of flagship events like Fairgrounds festival and the South Coast Food and Wine Festival in 2024. The remaining shortfall will cut the Tourism Marketing budget by close to 40%, which will result in a reduction of overall services. Including a reduction in winter marketing campaigns aimed at growing off-season visitation and promoting the region as a year-round destination. Also impacted will be peak season communications that manage and move people from hot spots, including the 100-beach challenge and conscious traveller messaging. Other cuts will include significant reduction in funding available via the Precinct Marketing Program, which supports local business chambers with dollar-for-dollar funding for their own regional marketing initiatives. In addition, Visitor Servicing is also undergoing a service review with results to be reviewed in the new financial year.

Delivery Program Operational Plan

The following proposed amendments to Council’s Operational Plan Actions from the version placed on public exhibition. The Final Draft DPOP 2024-25 is included as Attachment 1, with the Fees and Charges included as Attachment 2 (Part 1) and Attachment 3 (Part 2).

Table 2 – Amendments to Draft DPOP 2024/25 Action Items

DPOP Original Item #	Amendment	Rationale
2.1.02.04	Update Action: Manage Council’s Flood Alert Network New KPI: Percentage of network operational – 100%	Funding for upgrade of 10% network from Alert 1 to Alert 2 not available in capital program for 24/25. Flood study and plans KPIs have been moved to 2.1.02.01.
3.1.01.03	Remove Action: Continue to develop and subdivide employment land including expressions of interest for sale Replaced Action: Support business networks and industry groups to allow businesses and employees to establish, develop and thrive in the Shoalhaven	Due to Council process for selling industrial land no longer proceeds to expression of interest (resolution).
3.1.03.02	Remove Action: Deliver an event support program to drive off-season visitation to reduce seasonality of tourism employment opportunities Replaced Action: Advocate for and support events coming to Shoalhaven in the off-season to increase visitation, provide employment and boost the visitor economy	As Council Tourism Event Support program has not allocated funding in 24/25 budget, action has been updated.

Editorial and Formatting Changes

As part of the exhibition process some minor editorial and formatting changes were identified and these changes have been made to the DPOP and included in the documents provided with this report.

These changes have not been specifically identified within the body of the report as they do not change the intent of the document or any budget position and are considered minor in nature.

Considerations and Proposed Changes to 2024/25 Budget

Operational Budget

Council’s dedicated Financial Sustainability Review project team will continue to coordinate financial sustainability actions and initiatives in response to previous Council resolutions and those noted in the November 2023 AEC Financial Sustainability review, with the aim of returning Council into a financially sustainable position. As operational savings are identified through the Financial Sustainability Review project, and these savings are resolved by Council, ready for implementation, and can be reliably measured, the operating budget will be revised at each Quarterly Budget Review process with the savings being quarantined with the expectation they are used to rebuild Council’s unrestricted cash position, assist in funding future capital works, or assist with the repayment of Council borrowings.

Due to the status of this work, at present Council is unable to reliably measure, nor determine the timing, of these savings for inclusion in the budget. Council does expect the start realising savings from FY 2025 QBR 1, which will be reported to Council in November 2024.

Proposed changes to draft budget

The operational budget deficit when compared to the Draft exhibited budget has increased by $2.4M, to $21.0M (Draft: $18.6M).

Rates and Annual Charges Income has increased by $320K to reflect a small increase in rateable properties in 2024/25. This is due to the further subdivision of properties that have occurred since the Draft DPOP was prepared. This income is partially offset by a decrease of $96K in User Fees and Charges arising from an adjustment to budgeted income from the Visitors Centre that was historically overstated. The net increase in income is $224K.

Employee Benefits and On Costs have increased by $1.1m due to required adjustments to Job Cost Recovery. These adjustments reduce the amount of employee costs expected to be recovered through capital expenditure, resulting in an increase in net operational employee costs. This adjustment does not change the gross budgeted amount for employee costs (total operational and capital) and does not increase Council’s cash outflows for employee costs.

Materials and Contracts have also increased by $1.4m. The increase is due to minor increases to operational expenditure which are funded by the $224K net increase in income. The remainder of the increase is due to certain capital projects being reclassified as operating expenditure. The scope of these projects meets the definition of an operational project in accordance with Australian Accounting Standards. The reclassification of Materials and Contracts expenditure does not increase Council’s cash outflows, as these costs were already in the capital budget.

Proposed Borrowings

Council has reduced its reliance on borrowings for FY 2024/25 and no changes to anticipated borrowings are proposed from what was published in the draft DPOP.

Capital Works Listing

It is important to note that the Draft DPOP was prepared prior to the March Quarterly Budget Review. As such, further changes were made to refine the Capital Works Program as outlined in Attachment 1.

Council proposes a capital spend for the year ended 30 June 2025 of $126.9M (FY 2023/24: $188.2M). The final program is $61.3M less than the amount proposed in the FY2023/24 Budget. and an increase of $15.5M on the draft DPOP (Draft: $111.4M). General Fund works increased by $13.5M, Water by $0.25M and Sewer by $1.7M.

March Quarterly Budget Adjustments showed capital carry forwards of $42M. The entire capital program (including carry forwards) was reviewed prior to determining an appropriate deliverable FY 2024/25 capital program

Of the $42M carry forward, $9.9M was deferred to future years primarily the Local Road Upgrades Program ($7.7M); Huskisson Service Lane - Morton Street ($1.6M); and Mossvale Rd South URA - Land Acquisitions (Open Spaces) ($634K). A further $1M in grant funded projects was reclassified as operational due to finalisation of project scope.

From the draft DPOP $21.6M of projects were deferred to future years, primarily: Local Road Upgrades Program ($9.6M); Showground BLERF Projects ($5.5M); Mundamia Urban Release Area - Roads LCLI ($3.5M); ENSA - Detailed Design and Early Works ($3M); a further $550K was reclassified as operational due to change in project scope.

Additional new grant funded projects were added totalling $5M. These relate to the Far North Collector ($1.4M); Roads to Recovery 2025-2029 program ($1.9M) West Nowra URA ($1M), Culburra WWTP Upgrades ($733K), and an additional $410K for increased scope of works for Jervis Bay Road which is also funded from the Roads to Recovery program.

Due to the funding constraints currently faced by Council and despite the austerity measures taken to present a realistic and funded capital works program for FY 2024/25, it is unlikely there will be unrestricted general fund cash to commit to capital in FY2025/26, and onwards, unless a Special Rate Variation (SRV) is adopted. Therefore, Council has only presented a 1 year capital program in the FY2024/25 delivery program operational plan as there is no certainty around the future of the capital works program at this time.

Rating Structure

In order for Council to levy rates and charges for the 2024/25 rating year, Council is required to resolve the making of all rates and annual charges, in accordance with the Local Government Act 1993 & Local Government (General) Regulations 2005.

Following publication of Council’s draft Statement of Revenue Policy, and in accordance with Section 532 of the Local Government Act 1993, maximum permissible income has been recalculated to incorporate new properties from the ongoing issue of supplementary land values from the Valuer General, up to 20 April 2024. This recalculation of maximum permissible rates income has resulted in minor changes.

The final rating structure for 2024/25, for both ordinary rates and special rates, is shown in the following tables. These changes have already been included in the DPOP documentation that has been provided with this report.

Table 3. Ordinary Rates

Sub-Category	No. of Rateable Properties	Land Value	Ad Valorem (c in $)	Base Rate Amount ($)	Total Rate Yield ($)
Residential Rates	56,427	$43,315,562,986	0.09923	$760.00	$85,866,884
Residential Non-Urban Rates	937	$77,278,850	0.09923	$50.00	$123,534
Ordinary Farmland Rates	627	$1,714,065,000	0.07520	$1,012.00	$1,923,501
Farmland Rates - Dairy Farmers	142	$409,815,000	0.03970	$1,144.00	$325,145
Business Ordinary Rates	147	$3,225,070	0.19932		$6,428
Business Nowra Rates	378	$276,769,980	0.51600	$760.00	$1,715,413
Business Commercial / Industrial Rates	1,881	$1,802,814,108	0.17380	$760.00	$4,562,851
Business - Major Retail Centre - Nowra	1	$10,700,000	0.72930	$760.00	$78,795
Business - Major Retail Centre - Vincentia	1	$11,500,000	0.35130	$760.00	$41,160
	60,541	$47,621,730,994			$94,643,711

Table 4. Special Rates

Sub-Category	No. of Rateable Properties	Land Value	Ad Valorem (c in $)	Base Rate Amount ($)	Total Rate Yield ($)
Verons Road Upgrade Special Rate - Dwelling Potential	22	$15,386,000	0.38260	$2,674.00	$117,695
Verons Road Upgrade Special Rate - No Dwelling Potential	10	$4,215,000	0.07093	$297.00	$5,960
Nebraska Road Construction Special Rate	24	$4,300,400	0.06743	$119.00	$5,756
Jerberra Rd Infrastructure	102	$57,225,000	0.20371	$1,142.00	$233,057
Jerberra Electricity Infrastructure	102	$57,225,000	0.06870	$385.00	$78,584
Jerberra Road - E2	16	$1,128,500	0.36653	$257.00	$8,248
Sussex Area Special Rates	97	$85,244,270	0.02175		$18,541
Total	373	$224,724,170			$467,841

In accordance with Sections 534 and 535 of the Local Government Act 1993, Council can resolve to make rates and charges for the 2024/25 financial year.

Fees and charges

Cemeteries and Crematoria NSW (CCNSW) has confirmed the expansion of the interment services levy. The new levy is $41 per cremation, $63 per ash interment and $156 per bodily interment. The levy will commence on 1 July 2024 for large operators, with GST to be applied on top of the forementioned amounts.

During the period of public exhibition the Department of Planning, Housing and Infrastructure released the FY2024/25 fee unit amounts for development applications resulting in a number of changes to the draft fees and charges. The impacted fees are located on page 36-45 in Attachment 3.

The fee for Holiday Van Owners incorrectly published the maximum price charged at Holiday Haven White Sands only ($9,461) and not representative of the fee charged at other Parks ($7,907). Both fees are increasing by 5.5% inclusive of GST. Any submissions relating to this item have been advised the correct fees via email and the error has been rectified.

A reduction of $200 was made to Effluent Removal Charges for Properties with Bi-Weekly service due to administrative error.

The updated 2024-25 Fees and Charges (Part 2) is included as Attachment 3.

Conclusion

The 2024/25 Draft Budget was prepared based on the principles of prudent financial management and fiscal discipline. As demonstrated in the table below, the proposed changes to the 2024/25 Draft Budget have minimal impact on net unrestricted cash and the final 2024/25 budget will remain balanced and does not result in a negative unrestricted cash movement. This indicates that the budgeted general fund operational and capital expenditures do not exceed the general revenue and available internal and external restrictions of the Council and consequently conforms to the requirement of no cash deficit budgeting.

Draft 2024/25 Budget	2024/25 Budget ($'000)
Draft 2024/25 Budget	General Fund	Water Fund	Sewer Fund	Consol.
Net Operating Results	1,675	1,985	10,266	12,010
Net Surplus/(Deficit) before Capital	-25,291	345	8,241	-18,621
Other Cash Adjustments
Capital Expenditure	-76,767	-14,385	-20,225	-111,377
New Borrowings	3,751	0	0	3,751
Loan Principal Repayments	-26,165	0	-5,045	-30,782
Net Gains from the disposal of assets	-6,099	0	0	-6,099
Proceeds from the disposal of assets	18,965	120	100	19,185
Receipt of Internal Loan Repayment	0	428	0	0
Depreciation Adjustment	64,553	15,144	17,523	97,220
Dividend Paid to General Fund		-167	-1,749	0
Net Cash Outflow	-20,088	3,125	870	-16,093
Reserve Movements
Net Transfers from Reserves	20,119	-3,125	-870	16,124
General Fund Net Cash Movement	31	0	0	31

Adjustments to 2024/25 Draft Budget Post-Exhibition:	2024/25 Budget ($'000)
Adjustments to 2024/25 Draft Budget Post-Exhibition:	General Fund	Water Fund	Sewer Fund	Consol.
Net Operating Results	-1,595	133	244	-1,218
Net Surplus/(Deficit) before Capital	-2,787	133	244	-2,410
Other Cash Adjustments
Capital Expenditure	-13,540	-250	-1,732	-15,522
New Borrowings	0	0	0	0
Loan Principal Repayments	248	0	0	248
Net Gains from the disposal of assets	0	0	0	0
Proceeds from the disposal of assets	0	0	0	0
Receipt of Internal Loan Repayment	0	0	0	0
Depreciation Adjustment	0	0	0	0
Dividend Paid to General Fund	0	0	0	0
Net Cash Outflow	-14,886	-117	-1,488	-16,491
Reserve Movements
Net Transfers from Reserves	14,856	117	1,488	16,461
General Fund Net Cash Movement	-30	0	0	-30

Updated 2024/25 Budget	2024/25 Budget ($'000)
Updated 2024/25 Budget	General Fund	Water Fund	Sewer Fund	Consol.
Net Operating Results	80	2,118	10,510	10,792
Net Surplus/(Deficit) before Capital	-28,078	478	8,485	-21,031
Other Cash Adjustments
Capital Expenditure	-90,307	-14,635	-21,957	-126,899
New Borrowings	3,751	0	0	3,751
Loan Principal Repayments	-25,917	0	-5,045	-30,534
Proceeds from the disposal of assets	-6,099	0	0	-6,099
Proceeds from the disposal of assets	18,965	120	100	19,185
Receipt of Internal Loan Repayment	0	428	0	0
Depreciation Adjustment	64,553	15,144	17,523	97,220
Dividend Paid to General Fund	0	-167	-1,749	0
Net Cash Outflow	-34,974	3,008	-618	-32,584
Reserve Movements	0	0	0	0
Net Transfers from Reserves	34,975	-3,008	618	32,585
General Fund Net Cash Movement	1	0	0	1

Following the consideration of the submissions received and the identification of the required changes, it is recommended that the Draft Delivery Program and Operational Plan 2024/25, Draft Budget and Fees and Charges be adopted by Council, with proposed changes, as outlined in the recommendation at the beginning of this report.

2015/16	$18,380 Councillors $40,090 Mayoral Additional Fee
2016/17	$18,840 Councillors $41,090 Mayoral Additional Fee
2017/18	$19,310 Councillors $42,120 Mayoral Additional Fee
2018/19	$19,790 Councillors $43,170 Mayoral Additional Fee
2019/2	$20,280 Councillors $44,250 Mayoral Additional Fee
2021/22	$24,320 Councillors $53,250 Mayoral Additional Fee
2022/23	$25,310 Councillors $62,510 Mayoral Additional Fee
2023/24	$32,590 Councillors $94,950 Mayoral Additional Fee

CATEGORY	Councillor Annual Fee	Mayor Additional Fee*
Regional Strategic Area	$ 32,590	$ 94,950

CATEGORY	Councillor Annual Fee		Mayor Additional Fee*
CATEGORY	Minimum	Maximum	Minimum	Maximum
Regional Strategic Area	$20,500	$33,810	$43,530	$98,510

Tenderer	Location
East West Ferry Services Pty Ltd	Numbaa
Ferrymen Port Macquarie Pty Ltd	Port Macquarie