Agenda of Ordinary Meeting - Tuesday, 26 November 2024

Ordinary Meeting

Meeting Date: Tuesday, 26 November, 2024

Location: Council Chambers, City Administrative Building, Bridge Road, Nowra

Time: 5.30pm

Membership (Quorum - 7)

All Councillors

Please note: The proceedings of this meeting (including presentations, deputations and debate) will be webcast, recorded and made available on Council’s website, under the provisions of the Code of Meeting Practice. Your attendance at this meeting is taken as consent to the possibility that your image and/or voice may be recorded and broadcast to the public.

Shoalhaven City Council live streams its Ordinary Council Meetings and Extra Ordinary Meetings. These can be viewed at the following link

https://www.shoalhaven.nsw.gov.au/Council/Meetings/Stream-a-Council-Meeting.

Statement of Ethical Obligations

The Mayor and Councillors are reminded that they remain bound by the Oath/Affirmation of Office made at the start of the council term to undertake their civic duties in the best interests of the people of Shoalhaven City and to faithfully and impartially carry out the functions, powers, authorities and discretions vested in them under the Local Government Act or any other Act, to the best of their skill and judgement.

The Mayor and Councillors are also reminded of the requirement for disclosure of conflicts of interest in relation to items listed for consideration on the Agenda or which are considered at this meeting in accordance with the Code of Conduct and Code of Meeting Practice.

Agenda

1. Acknowledgement of Country

Walawaani (welcome),

Shoalhaven City Council recognises the First Peoples of the Shoalhaven and their ongoing connection to culture and country. We acknowledge Aboriginal people as the Traditional Owners, Custodians and Lore Keepers of the world’s oldest living culture and pay respects to their Elders past, present and emerging.

Walawaani njindiwan (safe journey to you all)

Disclaimer: Shoalhaven City Council acknowledges and understands there are many diverse languages spoken within the Shoalhaven and many different opinions.

2. Moment of Silence and Reflection

3. Australian National Anthem

4. Apologies / Leave of Absence

5. Confirmation of Minutes

· Ordinary Meeting - 12 November 2024

6. Declaration of Interests

7. Presentation of Petitions

· Presentation of Annual Financial Statements – 30 June 2024

8. Mayoral Minute

Mayoral Minute

MM24.37..... Mayoral Minute - Karen Murphy AM - Sport Australia Hall of Fame............. 1

9. Deputations and Presentations

10. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL24.360..... Notice of Motion - Fleet & Plant - Fuel Usage - Cost Control & Transparency 2

CL24.361..... Notice of Motion - Fleet Accountability........................................................... 3

CL24.362..... Notice of Motion - Community Service Clubs Contact Board........................ 4

CL24.363..... Notice of Motion - Berry Village Pool............................................................. 5

CL24.364..... Question on Notice - CEO Resignation - Funding......................................... 7

11. Call Over of the Business Paper

12. A Committee of the Whole (if necessary)

13. Committee Reports

Nil

14. Reports

CEO

CL24.365..... Detailed Restructure Plan Concurrent with Resourcing Strategy.................. 8

CL24.366..... Draft Community Engagement Strategy and Framework............................ 11

City Performance

CL24.367..... Annual Report 2023-2024 and Audited Financial Statements for Year Ended 30 June 2024.............................................................................................................. 14

CL24.368..... Declaration of Countback - Vacancy Ward 3 - Councillor Denise Kemp.... 19

CL24.369..... 2024/2025 Community Donations - Round Two.......................................... 23

CL24.370..... Re-establishment - Alcohol Free Zones (AFZ) - East Nowra, Shoalhaven Heads, Culburra Beach, Orient Point, Mollymook.................................................... 37

CL24.371..... Ongoing Register of Pecuniary Interest Returns - October 2024............... 46

CL24.372..... Investment Report - October 2024............................................................... 48

City Futures

CL24.373..... DPOP 2024-25 - Quarterly Performance and Budget Report (July - September)...................................................................................................................... 53

CL24.374..... Recognition of Community Led Plans.......................................................... 64

CL24.375..... Report Back - Council Advocacy: Stricter Planning Regulation of Tobacco and Vape Stores............................................................................................................ 67

CL24.376..... Post-Exhibition and Finalisation - Planning Proposal - Local Character - Shoalhaven Local Environmental Plan 2014 (PP073)..................................................... 74

City Services

CL24.377..... Disaster Relief Australia Memorandum of Understanding with Shoalhaven City Council.......................................................................................................... 84

CL24.378..... Acquisition of Land for Road Widening - Part Lot 5 DP 571465 - 5 Kingsley Avenue, Ulladulla........................................................................................................ 87

CL24.379..... Grant Electricity Easement to Endeavour Energy – Community Battery – Lot 35 DP 242182 33 Tannery Rd Cambewarra........................................................... 91

City Development

CL24.380..... Coastal Management Program Advisory Committees and Floodplain Risk Management Committees............................................................................ 95

CL24.381..... Report back to Council - Notice of Motion - Tourist Cabins / Farm Stay - Commercial Farm / Primary Production land - Pre lodgement Discussion................... 102

15. Confidential Reports

Nil

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.367 Annual Report 2023-2024 and Audited Financial Statements for Year Ended 30 June 2024

HPERM Ref: D24/465716

Department: Corporate Performance & Reporting

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Annual Report 2023-2024 - Section 1 (under separate cover) ⇨

2. Annual Report 2023-2024 - Section 2 (under separate cover) ⇨

3. Annual Financial Statements 2023-2024 (under separate cover) ⇨

4. Summary Annual Report 2023-2024 (under separate cover)

Purpose:

The purpose of this report is to present the Shoalhaven City Council Annual Report 2023-2024 and the audited Financial Statements for the year ended 30 June 2024.

Summary and Key Points for Consideration:

In accordance with the requirements of the Local Government Act, all councils must produce an Annual Report outlining progress towards achieving the objectives and actions in the Delivery Program and Operational Plan. The report must also include mandatory reporting as prescribed by the Local Government (General) Regulation 2021. The 2023-2024 Annual Report for Shoalhaven City Council is included with this report. The audited financial statements are also presented to be received and noted.

Recommendation

That:

1. Council receive and endorse the Shoalhaven City Council Annual Report 2023-2024.

2. The presentation of the audited Financial Statements for the year ended 30 June 2024 be received and noted.

Options

1. Adopt the recommendation.

Implications: Nil.

2. Further information be requested for inclusion in the Annual Report.

Implications: Council will need to amend and notify the Office of Local Government of the updated Annual Report.

Background and Supplementary information

The Annual Report 2023-2024 has been prepared as per the requirements under the Local Government Act consisting of the following sections:

Section 1 – Delivery Program and Operational Plan Performance 2023-2024

This section includes a report on Council’s achievements in implementing the 2022-26 Delivery Program. The report outlines the key highlights, performance comments and status as of 30 June against each of the actions from the 2023-2024 Delivery Program Operational Plan (DPOP). The 151 deliverables set by Council in our 2023-2024 DPOP represents our services, key projects and works program. The final performance showed that 84% of actions we set out to achieve were rated as ‘completed’ or ‘on track’. The remaining 16% were rated as on hold, requires attention or deferred as of 30 June 2024.

Key Highlights

· Council worked with Reconstruction NSW to establish and support recovery hubs for two natural disasters – April and June storm and flooding events.

· Official opening in February of the redeveloped Artie Smith Oval in Bomaderry co-funded by the Council, the Australian Government, and the NSW Government’s Bushfire Local Economic Recovery Fund.

· Celebrating the Shoalhaven’s Aboriginal culture through initiatives such as NAIDOC Week including Regional Awards 2023, Family Funday and Flag Raising, Year 12 Graduation, Riverfront Activation community consultation and Aboriginal TAFE Art exhibition.

· Delivery of actions within the Sustainable Energy Strategy included replacement of all streetlights with energy efficient LEDs saving approximately 1,500 tonnes of CO2e emissions each year.

· Continued work on Floodplain risk management investigations including the Clyde River Flood Study, Willinga Lake Flood Study and the Lower Shoalhaven River and St Georges Basin Floodplain Risk Management Study and Plans.

· Projects to mitigate risk to critical water supply and wastewater assets include the Erowal Bay Sewer Relocation project and Wrights Beach Water Main Replacement Project.

· Water and wastewater infrastructure for the new suburb of Badagarang, Moss Vale Road.

· Progressing a range of planning projects for Nowra City Centre including continued collaboration on the Nowra City Centre Roadmap.

· Playground upgrades to Joe Hyam Reserve, Bawley Point Reserve and Kioloa Sporting Complex.

· Upgrades to Burton Street Mall in Vincentia.

· Internal road upgrades at Milton Showground and enhancements completed at Nowra Showground Pavilion.

Measuring Progress - Are we making a difference?

This year, the effectiveness of the activities undertaken in achieving the objectives in the Shoalhaven 2032 Community Strategic Plan (CSP) is included in the State of our City Report, noted by Council at the 28 October Ordinary Meeting.

Annual progress towards achieving the Community Strategic Plan (CSP) objectives are included under each theme Are we making a difference? These measures were established alongside the adoption of the CSP in 2022.

A copy of the Annual Report 2023-2024 Section 1 is included as Attachment 1.

Section 2 – Additional Local Government Act reporting requirements 2023-2024

This section of the report includes information that is prescribed by the Local Government (General) Regulation 2021. This includes details of contributions and donations, contracts, legal proceedings, public interest disclosures, planning agreements, Companion Animals Act reporting and progress on implementation of Council’s Disability Inclusion Action Plan. A copy of the Annual Report 2023-2024 Section 2 is included as Attachment 2.

Section 3 – Annual Financial Statements 2023-2024

This section includes the audited Financial Statements for the year ended 30 June 2024.

The Audit Office of New South Wales have completed the audit for the year ended 30 June 2024 and have issued their Independent Auditor’s Report and Report on the Conduct of the Audit in accordance with Section 417 of the Local Government Act 1993.

Council received an unqualified audit opinion on the general purpose financial statements, special purpose financial statements and the special schedule for permissible income for general rates.

The audited Financial Statements were lodged with the Office of Local Government by the statutory due date of 31 October 2024 and, in accordance with Section 418 of the Local Government Act 1993, Council advised the public on 11 November 2024 that the audited Financial Statements and the Independent Auditors Reports will be presented to Council at its meeting on 26 November 2024.

In accordance with Section 420 of the Local Government Act 1993, any person may make a submission in writing to Council with respect to the audited Financial Statements and/or the Independent Auditor’s Report. Submissions were invited from the public and will be received until close of business on 3 December 2024. All submissions received must be forwarded to Council’s auditor.

The audited Financial Statements have been available on Council’s website and printed copies have been available at the Nowra City Administration Building, Ulladulla Branch office, Nowra library and Ulladulla library.

The audited Financial Statements, which include the Independent Auditor’s Report and Report on the Conduct of the Audit, are provided as Section 3 of the Annual Report and included at Attachment 3.

Council’s auditor, Ms Min Lee from the Audit Office of New South Wales, has accepted an invitation to provide comments on Council’s audited Financial Statements and the Independent Auditor’s Report for the year ended 30 June 2024.

Some of the key financial data from the audited Financial Statements for the period ended 30 June 2024 are listed in the table below, with comparatives from the year ended 30 June 2023.

Comparative Year Ending Data

	2023/24 $’000	2022/23 $’000
Total income from continuing operations	439,478	387,034
Total expenses from continuing operations	352,338	345,060
Operating result continuing operations	87,140	41,974
Operating result before capital grants and contributions	(37,618)	(18,141)
Operating performance ratio	(9.11%)	(5.32%)
Unrestricted current ratio	1.08	0.67
Buildings and infrastructure renewals ratio	71.29%	96.49%

Note G5 – Statement of performance measures contains other financial performance indicators which assist users to assess the performance of Council in various areas as at the reporting date. Some of the areas measured include Council’s degree on reliance on external funding, the availability of operating cash to service debt and the adequacy of debt recovery processes for rates and annual charges.

Information on infrastructure asset performance indicators is included in the Special Schedules. The indicators provide information on items including renewal spends, asset backlog levels and an indicator on whether Council’s spend on asset maintenance is sufficient. The buildings and infrastructure renewals ratio are one of those indicators which measures the rate at which Council’s assets are being renewed compared to the rate at which they are depreciating. The benchmark for this ratio is 100% and Council did not meet this benchmark with a ratio of 71.29%. Meeting this benchmark remains a key challenge for Council each year with the amount of available funding and Council needs to ensure the allocation of available funding to the renewal of existing assets remains a high priority.

Section 4 – State of our City Report (Council term report 2021-2024)

The Annual Report in the year in which an ordinary election of Councillors is to be held must also contain a report as to the Council’s achievements in implementing the Community Strategic Plan over the previous 4 years. This is known as the State of our City Report. This report was noted by Council at the 28 October 2024 council meeting and will be included on Council’s website.

All sections of the Annual report will be notified to the Office of Local Government.

Internal Consultations

Council highlights and indicator data were provided by teams from across the organisation.

The Audit, Risk and Improvement Advisory Committee reviewed the draft Financial Statements and provided feedback.

External Consultations

Audit Office of New South Wales.

Community Consultations

The Annual Report will be made available on Council’s website and a link to the report will be promoted through Council’s newsletter. A range of other methods will also be used to communicate the outcomes of Council’s 2023-2024 performance highlights including across Council’s social media platforms.

A Summary Annual Report 2023-2024 has also been developed. This will provide a more accessible version for distribution to our community. The summary report is included as Attachment 4.

In accordance with Section 420 of the Local Government Act 1993, any person may make a submission in writing to Council with respect to the audited Financial Statements and/or the Independent Auditor’s Report. Submissions will be received until close of business on 3 December 2024.

Policy Implications

The Annual Report is an essential element of Integrated Planning and Reporting Framework.

As stated in the Independent Auditor’s Report prepared by the Audit Office of New South Wales, Council’s accounting records have been kept in accordance with the requirements of the Local Government Act 1993, Chapter 13 Part 3 Division 2 (the Division).

Financial Implications

The audited Financial Statements provide details on Council’s financial performance during 2023/24 along with its financial position as of 30 June 2024.

Risk Implications

There are no additional risk implications.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.369 2024/2025 Community Donations - Round Two

HPERM Ref: D24/429132

Department: Business Assurance & Risk

Approver: Sara McMahon, Business Assurance & Risk Manager

Attachments: 1. Informal Minutes - Panel Meeting - 22 October 2024 ⇩

Purpose:

This report provides information to Council regarding the process followed for receiving and assessing Community Donations applications for the 2024/2025 second round. The report seeks Council’s approval for funding to the successful applicants of the second round of Community Donations 2024/2025, as recommended by the Community Donations Assessment Panel.

Summary and Key Points for Consideration:

On 29 July 2024 Council resolved to undertake a second round of the 2024/2025 Community Donations Program (MIN24.393), with a total budget of $52,568.19 left over after the first round of Community Donations.

In accordance with the Community Donations Policy, the Donations Assessment Panel met on 22 October and 24 October 2024. The Panel considered all 39 applications received totalling $192,720.73 of requested funds and recommended that the total amount of funding to be paid for the second round of the 2024/2025 Financial Year by the Community Donations Assessment Panel is $52,222.00, to the 15 organisations listed below. Further details about the applications recommended and not recommended for funding can be found at Attachment 1 of the report, along with the Donations Assessment Panel feedback.

It is also noted that the Rotary Club of Milton-Ulladulla withdrew from supporting the Ulladulla Blessing of the Fleet Festival, following Council’s resolution of successful applicants of the first round and requires a resolution to provide the previously resolved donation amount of $10,000 (MIN24.393) to the newly incorporated body, the Ulladulla Blessing of the Fleet Festival Inc.

Recommendation

That Council

1. Note the information in the report outlining the process followed for round two of the 2024/2025 Community Donations Program, including the applications received.

2. Approve the funding of the 2024/2025 Community Donations recommended by the Community Donations Panel, totalling $52,222.00 to the following community organisations and community groups in the Shoalhaven:

Organisation	Donation For:	Amount Recommended
City of Shoalhaven Eisteddfod Inc	City of Shoalhaven Eisteddfod Inc	$5000
Cudmirrah Berrara Community Garden	Community Wellbeing programs	$1000
Milton Ulladulla Family History Society	40th anniversary lunch celebration for Milton Ulladulla Family History	$1000
Rainbow Club Australia	Water Safety, Swimming Lessons and Events for Local Disabled	$2,500
Shoalhaven City Concert Band	Summer Sounds Concert Band Workshop and Free Concert	$1000
Shoalhaven Community Choir	Harmony Day Celebration	$3000
Tabourie Lake Museum	First Nations Collection Project	$3,100
Ulladulla & District Community Resource Centre	Community Connection through Activity in Fisherman's Paradise	$4,370
Walk n Talk For Life Ulladulla	Walk n Talk For Life Ulladulla	$1000
Love Culburra Beach Festival Inc	Culburra Beach Festival	$4000
Ulladulla Blessing of the Fleet Festival Inc	Ulladulla Blessing of the Fleet Festival	$10,000
Albatross Musical Theatre Company	Albatross Musical Theatre Company Rehearsal Support	$6000
Cambewarra School of Arts	Subsidised Council Rates and Council Water Rates	$2,132
Lay Missionary of Charity Soup Kitchen	Lay Missionary of Charity Soup Kitchen	$1,600
Wildlife Rescue South Coast	Wildlife Rescue South Coast	$6,520

3. Note that the previously resolved amount of $10,000 to the Rotary Club of Milton-Ulladulla will now be provided to the Ulladulla Blessing of The Fleet Festival Inc for the reasons detailed in the report, replacing the resolution of that amount being donated to the Rotary Club of Milton-Ulladulla (MIN24.393).

4. Advise the remaining applicants that their application for the Community Donations Program have been unsuccessful.

Options

1. As recommended.

Implications: The donations will be paid to the community organisations and groups as listed within the recommendation. This will result in funds of $52,222.00 being expended from the Community Donations funds, leaving an available balance of $346.19 in the Donations budget for 2024/2025.

2. That Council approve the funding as recommended by the Community Donations Panel totalling $52,222.00 as well as any additional funding being awarded to those Community organisations or groups as decided by Council.

Implications: The available balance of $346.19 will be reduced by any additional donation amounts decided by Council.

3. That Council determines funding to applicants differently to the recommendation made by the Community Donations Assessment Panel.

Implications: Distribution of funds would occur in accordance with the Council resolution.

Background and Supplementary information

On 29 July 2024 Council resolved to undertake a second round of the 2024/2025 Community Donations Program (MIN24.393):

That Council,

4. Undertakes a second round of Community Donations using the remaining balance of the 2024/2025 Community Donations Budget.

In accordance with the resolution of the Council on 25 March 2024 (MIN24.150), the Community Donations budget for the first round of 2024/2025 was $180,000. A total of $139,850 was awarded in the first round; the successful organisations which received funds in the first round can be seen on Councils Donation webpage. It should also be noted that due to a cancellation of a $10,000 donation amount which is further detailed in this report, and the retention $3,118.19 following the financial reconciliation of the first round, the actual budget for the second round was $52,568.19.

The process undertaken for this second round of the 2024/2025 Community Donations has been in accordance with the Community Donations Policy, and is summarised as follows:

1. Correspondence was sent to past donation recipients, both successful and unsuccessful to advise them of the application period opening and closing dates – (1 September to 30 September 2024).

2. Advertising and promotion of the Community Donations Program was made via Council’s website and Social media.

3. Applications closed on 30 September 2024.

4. A meeting of the Community Donations Assessment Panel was held on 22 October and 24 October 2024 to assess the applications received. The informal minutes of the Community Donations Assessment Panel meeting can be found at Attachment 1.

As part of the procedure in accordance with the Community Donations Policy, adopted at the Ordinary meeting of 27 June 2022, a Community Donations Assessment Panel was formed with the purpose of independently assessing applications across different areas of Council which involved staff from Community Connections, Arts & Culture, Tourism Events, Business Assurance & Risk and Governance.

The Community Donations Assessment Panel met on 22 October and 24 October 2024. The panel considered all 39 applications received totalling $192,720.73 of requested funds and recommended that:

· That of the 39 applications received, 15 be provided funding in full or part.

· That 24 applications do not receive funding on the basis that they are ineligible under the policy criteria, did not provide sufficient information for assessment, or were not considered as worthy as other applications to receive the limited funding.

o This represents $111,898.73 in applications. These are shown in table 2 of Attachment 1.

The total amount of funding recommended to be paid for the second round of the 2024/2025 Financial Year by the Community Donations Assessment Panel is $52,222.00. This leaves an available balance of $346.19 for 2024/2025 Financial Year. This balance is available for further consideration by Council.

Ulladulla Blessing of The Fleet

Following Councils resolution on 29 July 2024 (MIN24.393), staff were informed by the applicant that the Rotary Club of Milton-Ulladulla had withdrawn from running the Ulladulla Blessing of the Fleet Festival, who had been successful in receiving a $10,000 donation towards that event. This being the case, it was determined by staff that the application could no longer be considered eligible for payment, as the organisation which had submitted the application had withdrawn from running the event, and therefore the supporting financial documentation provided by the Rotary Club was no longer applicable. Subsequently, as the amount was yet to be paid to the Rotary Club, the donation of $10,000 was put on hold as staff determined a way forward with the applicant.

The applicant further notified staff that a new body was in the process of being incorporated (The Ulladulla Blessing of the Fleet Festival Inc) and that this new body would run the event. Upon confirmation of the incorporation of the Ulladulla Blessing of the Fleet Festival Inc, the previous payment to the Rotary Club of Milton-Ulladulla of $10,000 was Cancelled.

The Ulladulla Blessing of the Fleet Festival Inc submitted a further application for the Ulladulla Blessing of the Fleet Festival event in the second round of Community Donations 2024/2025, for a Donation of $10,000. The Panel has recommended $10,000 for this application with notes provided in Attachment 1. This information is provided to Council so a resolution can be made to provide the donation amount to the newly incorporated body and replace the resolution to provide $10,000 in donation towards the Rotary Club of Milton-Ulladulla (MIN24.393[2]).

Internal Consultations

In accordance with the Community Donations Policy, a Community Donations Assessment Panel was formed with the purpose of independently assessing applications across different areas of Council, which involved staff from the following departments: Community Connections, Arts & Culture, Tourism Events, Business Assurance & Risk and Governance. The staff from these departments review and make recommendations regarding applications received and provide feedback regarding the program.

External Consultations

It is not required under the Community Donations Policy to consult with external experts or organisations.

Community Consultations

Past applicants of donations, both successful and unsuccessful, were contacted via email to advise of the opening of the second round of 2024/2025 Community Donations Program and were encouraged to review the eligibility criteria to apply for a donation in line with the Community Donation Policy

Advertising was undertaken via Councils website and social media. The Customer Experience Team and Community Connections Team were also made aware in case of any calls were received in relation to seeking funding that could be referred to the process.

Information, eligibility criteria and online application forms were made available via Council’s website. The application period was open for a month from 1 September to 30 September 2024.

It is worth noting that 58 applications were received for the previous financial year (2023/2024), 46 were received for this year’s first round (2024/2025) and an additional 39 applications were received for this year’s second round (2024/2025). Of the 39 applications, 15 are new applicants that have never previously applied for a donation under the Community Donations Program.

Policy Implications

Applications were assessed in line with Councils adopted Community Donations Policy (POL23/68), and the recommendation above has no impacts upon the current Policy. It is worth nothing however that this is the first time Council has held a second round of Community Donations under the current Policy, and there are currently no provisions in the Policy regarding holding a second round of Donations. Further, the panel noted it was difficult to determine the second round due to less funds being available in the second round. If it was Council’s intention to hold two rounds each year, changes to the Policy and to determine a set amount per round would be beneficial.

Financial Implications

The donations budget for the first round of the 2024/2025 Financial Year was $180,000. Following Councils resolution, the remaining balance was $39,450, resulting in this being the budget for this second round of 2024/2025 Community Donations. However, the cancellation of $10,000 in payment towards the Ulladulla Blessing of The Fleet Festival, and that a further $3,118.19 was retained from GST following reconciliation of the first round, left a total actual budget for the second round of $52,568.19.

If Council resolves to approve the recommendation as outlined in the report, this will leave an available balance of $346.19 in the Donations Budget which could be returned to the general fund or rolled over into the next financial year’s budget.

Risk Implications

If Council substantially alters the applicants receiving funds as recommended by the Panel, this could undermine the independent process and divert funds from organisations who have demonstrated a need for a Donation.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.372 Investment Report - October 2024

HPERM Ref: D24/486857

Department: Finance

Approver: Kerrie Hamilton, Director City Performance

Attachments: 1. Monthly Investment Review - October 2024 (under separate cover) ⇨

2. Statement of Investments as at 31 October 2024 (under separate cover) ⇨

Reason for Report

The reason for this report is to inform the Councillors and the community on Council’s investment returns. The report also ensures compliance with Section 625 of the Local Government Act 1993 and Clause 212 of the Local Government (General) Regulation 2021, that requires a written report is provided to Council setting out the details of all funds it has invested.

Recommendation

That Council:

1. Receive the Record of Investments for the period to 31 October 2024.

2. Note that Council’s total Investment Portfolio returned 5.15% per annum for the month of October 2024, outperforming the benchmark AusBond Bank Bill Index (4.50% pa) by 65 basis points (0.65%).

Options

1. The report of the record of Investments for the period to 31 October 2024 be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 30 November 2024.

Implications: Nil

2. Further information regarding the Record of Investments for the period to 31 October 2024 be requested.

Implications: Nil

Background

Please refer to the attached Monthly Investment Review reports provided by Council’s independent investment advisor, Arlo Advisory Pty Ltd (formally Imperium Markets Pty Ltd).

Investment Portfolio

Council’s investment balance as at 31 October 2024 was $191.16 million and consisted of the following types of investments. This has decreased by $14.6 million since the end of September 2024 due to payments for operational needs and capital projects.

Investment type	Invested ($)
Term deposits/cash	150,162,569
Floating rate notes	36,000,000
Bonds	5,000,000
Total	191,162,569

The details of each investment held by Council at 31 October 2024 is included in the Statement of Investments at Attachment 2.

The graph below illustrates Council’s investments balance on a rolling 12-month basis. The increase in investment balance in June 2024 was mainly attributable to receiving the following grants funds:

· The 2024/25 Financial Assistance Grant received early - $13 million

· Natural disaster funding from the NSW Reconstruction Authority - $24 million, and

· Grants for water infrastructure projects - $15 million

Council’s investment balance typically increases in the months when rate instalments are due in August, November, February and May each year. Timing of expenditure and grant monies varies throughout the year which can cause fluctuations in the overall balance at the end of each month.

Portfolio Return

The investment returns were a stable 5.15% p.a. in October 2024, outperforming the benchmark AusBond Bank Bill Index (4.50% p.a.) by sixty-five basis points (0.65%).

Investments

Graph 1 below, shows the performance of Council’s Investment Portfolio against the benchmark on a rolling 12-month basis.

Graph 1 - Performance of Council’s Investment Portfolio against the benchmark on a rolling 12 month basis

A graph of a graph showing the average return vs bank index

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Investment Interest Earned – October 2024

Table 1 below, shows the interest earned for the month of October 2024.

Table 1- Interest Earned for the Month of October 2024

Fund	Monthly Original Budget $	Actual Earned $	Difference $
General	296,224	482,242	186,018
Water	140,754	181,829	41,075
Sewer	54,485	126,490	72,005
Total excluding Long-Term Growth Fund	491,463	790,561	299,098

The interest earned for the month of October, was $790,561 compared to the monthly original budget of $491,463.

Investment Interest Earned - Year to Date

Table 3 below, demonstrates how the actual amount of interest earned year to date has performed against the total budget.

Table 3 - Amount of interest earned year to date, against the total budget.

Fund	Total Original Annual Budget $	Actual YTD $	% Achieved
General	3,487,804	1,859,564	53.32%
Water	1,657,263	930,899	56.17%
Sewer	641,521	416,452	64.92%
Total excluding Long-Term Growth Fund	5,786,588	3,206,915	55.42%

The interest earned in the general fund of $1,859,564 includes interest earned on unspent s7.11 developer contributions and Domestic Waste Management reserves, which is required to be restricted by legislation. Interest earned on unspent s7.11 developer contributions is $502,082 and Domestic Waste Management reserves is $316,126 to the end October 2024. This leaves $1,041,356 which is unrestricted.

The cumulative interest earned for the year (July to October) was $3,206,915 which is 55.42% of the current full year original budget.

Graph 2 (3 separate graphs) below, illustrates the cumulative interest earned for the year for each fund (General, Water and Sewer) against budget:

Graph 2 - Cumulative interest earned for the year for each fund against budget.

Statement by Responsible Accounting Officer

I hereby certify that the investments listed in the attached report have been made in accordance with Section 625 of the Local Government Act 1993, Clause 212 of the Local Government (General) Regulations 2021 and Council’s Investments Policy POL 22/78.

Katie Buckman Date: 26 November 2024

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.373 DPOP 2024-25 - Quarterly Performance and Budget Report (July - September)

HPERM Ref: D24/449948

Department: Corporate Performance & Reporting

Approver: James Ruprai, Acting CEO

Attachments: 1. Delivery Program Operational Plan - Quarterly Performance Report 2024-25 – July to September (under separate cover) ⇨

2. Quarterly Budget Review Report - September 2024 (under separate cover) ⇨

Purpose:

The purpose of this report is to include the Quarter 1 performance report on the 2024-25 Delivery Program and Operational Plan and present the proposed budget adjustments in the September 2024 Quarterly Budget Review for adoption.

Summary and Key Points for Consideration:

· This report outlines highlights for Quarter 1 performance (July to September 2024) against actions and targets set in Council’s 2024-25 Delivery Program and Operational Plan (DPOP).

· This report includes the proposed budget adjustments outlined in the September 2024 Quarterly Budget Review Report.

· Council has limited unrestricted funds. This is a matter for concern for Council and is regularly addressed in Council business papers, briefings and is evident in Council’s Long Term Financial Plan.

· The balance of grants spent in advance at 30 September 2024 is $14.7M.

· The budget adjustments proposed (carry forwards and quarterly budget adjustments) have a general fund unrestricted cash net impact of NIL. The closing unrestricted cash balance has not changed from original budget.

· This report seeks the creation of a new internal restriction, called the Financial Sustainability Reserve, which will be used to quarantine the savings identified through the quarterly “Financial Sustainability Productivity and Efficiency Report” – starting with the FY2024-25 savings noted in the report presented to Council on 28 October 2024 (CL24.287) which total $1.06M of which $20K has been returned to the Waste Reserve (External Restriction).

· Should the Financial Sustainability Reserve not be created, and savings are not quarantined in an internal restriction, then Council’s general fund unrestricted cash will improve by $1.04M from original budget.

Recommendation

That Council:

1. Receive the September Quarterly Performance Report on the 2022-2026 Delivery Program and 2024-25 Operational Plan and publish on Council’s website.

2. Receive the September 2024 Quarterly Budget Review Report.

3. Adopt the budget adjustments as outlined in the September 2024 Quarterly Budget Report Document.

4. Endorse the creation of a new internal restriction that will be used to quarantine the savings identified through the Financial Sustainability Project from FY 2024-25 onwards.

Options

1. Adopt the recommendation

Implications: The budget will be adjusted as outlined in the September 2024 Quarterly Budget Report Document, and a new internal restriction will be used to quarantine the savings identified through the Financial Sustainability Project from FY 2024-25 onwards.

2. Adopt an alternative recommendation

Implications: Staff will be required to rework the quarterly performance and budget report in accordance with the alternative resolution.

Background and Supplementary information

Section 404 of the Local Government Act 1993 requires the General Manager (Chief Executive Officer) to provide progress reports to the Council with respect to the principal activities detailed in the Delivery Program (Operational Plan) at least every 6 months. Furthermore, all councils must continue to consider a Quarterly Budget Review report.

Clause 203 of the Local Government (General) Regulation 2021 requires the Responsible Accounting Officer (Chief Financial Officer) to prepare and submit to the Council, a Quarterly Budget Review Statement that shows, by reference, the estimates of income and expenditure set out in the Operational Plan and a revised estimate of the income and expenditure for the full financial year.

The Responsible Accounting Officer is also required to report as to whether they believe the financial position of the Council is satisfactory, having regard to the original estimate of income and expenditure.

The September 2024 Quarterly Budget Review Statement (QBRS) includes an analysis of the year-to-date result and the reasons for the adjustments from the previously adopted budget by fund. Any proposed changes to the budget are included in the attached September Quarterly Budget Review Statement.

Summary of Delivery Program Operational Plan 2024-25 Performance

Table 1 below provides breakdown of performance as at 30 September 2024 across each of the key themes outlined in the Community Strategic Plan - Shoalhaven 2032.

Table 1: Action performance as at 30 September 2024 by Community Strategic Plan 2032 Theme area

CSP Theme	Progress snapshot
Resilient, safe, accessible and inclusive communities	97% actions on track or completed
Sustainable, liveable environments	72% actions on track or completed
Thriving local economies that meet community needs	100% actions on track or completed
Effective, responsible and authentic leadership	94% actions on track or completed

Of the 135 DPOP actions, the following two actions have been rated as ‘Completed’ in the first quarter of the year:

· 4.3.01.04 - Support the conduct of the 2024 Local Government elections

· 4.2.10.01 - Establish an Enterprise Project Management Office to oversee and support project governance through management of the corporate Project Management Framework and assess project readiness for inclusion in capital budgets

The remaining 119 actions are rated as ‘On Track’.

Key Highlights

Council has consistently delivered a range of services, projects and activities which work towards achieving the 11 key priorities outlined in Council’s Delivery Program 2022-26. Performance comments are provided in the report against each of the 135 actions and related targets in Council’s 2024-25 Operational Plan.

The complete DPOP Quarterly Performance Report (July - September) is included as Attachment 1.

Significant achievements between July and September 2024 include:

· This quarter, Council’s Financial Sustainability Program has reported recurrent general fund savings/income of $2.497 million and one-off savings/income of $698,975. These savings/income were either included in the original budget adopted by Council on 24 June 2024 or have been adjusted through this quarter’s budget review process (discussed below).

· Council’s Enterprise Project Management Office (EPMO) is operational. Projects are now being assessed and managed through the Project Lifecycle Management (PLM) for readiness and prioritisation.

· Council continues to submit grant funding opportunities through State and Federal government to support project delivery with 18 applications submitted and 4 successful grants totalling $460,000.

· Library events were held to create opportunities for diverse communities to be welcomed and celebrated for adults and children alike including inclusive story time, NAIDOC week celebrations, Seniors Week, and LGBTQI+ Q&A events.

· Delivered community initiatives to raise awareness of community access and inclusion needs through the Disability Forum and Disability Expo.

· Sustainability and Climate Actions implemented include completion of the 100% LED street lighting upgrade which is saving around $500,000 in annual electricity costs.

· In conjunction with the NSW EPA, a trial of the collection of embedded batteries has begun at the Nowra recycling centre. The new rubber crumb plant is processing used tyres into rubber crumb for which markets are being developed.

Requires Attention

Table 2 below outlines the seven Action items that have been reported as ‘requires attention’ at 30 September 2024. Full performance comments are in the attached report and remedial actions have been reported to senior management.

Table 2: DPOP Actions rated as ‘requires attention’ as at 30 September 2023.

Ref.	Action	Quarter 1 Comment (summary) Full comments in attached report
1.1.06.02	Undertake environmental health regulatory inspections to ensure compliance with legislative standards	The following Environmental Health inspections were completed during Quarter 1: 382 On-site sewage management systems 167 Food hygiene inspections 79 Skin penetration inspections 6 Underground petroleum storage systems 33 Constructions site audited for adequate sediment and erosion controls
2.1.02.03	Review the flood mitigation asset database and ensure it is up to date	Works are behind schedule. Resource reallocation required to meet 2024-25 DPOP targets.
2.1.03.01	Complete the Pathways Program as listed in the 2024-25 adopted capital works program	There have been some minor delays to the commencement of ground works, however based on current programming the works are expected to be completed within this financial year as intended.
2.2.01.03	Preparation of a new local infrastructure contributions scheme and governance framework	Work continued on the preparation of the new Local Infrastructure Contributions Scheme (Contributions Plan) for Shoalhaven. Regular progress reports provided to Council's Executive Management Team are to enable consideration of resourcing and other requirements to enable this key project to progress to finalisation in a timely manner.
2.3.03.02	Support organisational environmental due diligence	Relates to the completion of environmental assessments. For this quarter, this primarily includes the completion of Review of Environmental Factors (REF) for existing dog off-leash access areas. Four have been completed and published, eight with a 1st draft completed, and eight with some work required to complete the first draft. One is near completion - River Road, Shoalhaven Heads.
2.3.03.03	Implement water quality monitoring program	Four catchments were sampled during Quarter 1 including: Jervis Bay, Shoalhaven River, Clyde River and Burrill Lake. Budget cuts have reduced funding for the maintenance/replacement of water quality monitoring equipment. Without this funding this equipment will be unable to be replaced resulting in the end of the water quality monitoring program.
2.3.03.05	Prepare new, or review existing Bushcare Group Action Plans in consultation with community	The following Bushcare Group Action Plans were approved in the last quarter: - Orient Point; - River Road, Shoalhaven Heads; - Boongaree. Currently working on the Cunjurong Point – Manyana Bushcare Group Action Plan, which should be completed by the end of October.

On Hold

Table 3 below, outlines the seven Action items that have been reported as ‘on hold’ as at 30 September 2024. Full performance comments are in the attached report and remedial actions have been reported to senior management.

Table 3: DPOP Actions rated as ‘on hold’ as at 30 September 2024.

Ref.	Action	Quarter 1 Comment (summary) Full comments in attached report
2.3.01.01	Deliver the Shoalhaven Adaptation Plan	Awaiting appointment of Lead - Environmental Sustainability position.
2.3.02.01	Delivery of the Sustainability and Climate Action Plan	Awaiting appointment of Lead - Environmental Sustainability position.
2.3.03.07	Progress finalisation of Council's Urban Greening Strategy	The Urban Greening Strategy is included within the Federally funded Urban Rivers and Catchments project. Awaiting appointment of Lead - Environmental Sustainability position to further scope and engage a suitability qualified consultant to prepare the strategy.
2.3.04.01	Deliver the Sustainable Living Program for community members	Awaiting appointment of Lead - Environmental Sustainability position.
4.1.01.02	Run 'Voice of the Customer' program by responding to feedback and identifying process improvements to close the feedback loop	The voice of the customer program was set up last year and was on hold during Q1 this year for phone and in person customer satisfaction surveys due to the cost. Customer requests satisfaction surveys were still active in Q1 and a process is in place to review the feedback and identify improvements.
4.2.04.01	Implement an effective business partnership structure in supporting corporate information systems	Awaiting confirmation of any proposed structural changes before initiating meetings with Directorates. Planning for the agendas and communications to be distributed to stakeholders in early November and the first meeting to be scheduled for January 2025.
4.3.01.01	Facilitate staff education and awareness of the International Association for Public Participation (IAP2) Framework	Internal working group for the Community Engagement Framework identified the need for IAP2 training across the organisation. Part of the Community Engagement Framework will be to ensure staff have access to IAP2 training. On hold until training budget freeze is released.

September 2024 Quarterly Budget Results Overview

The main focus during the September 2024 quarter has been the preparation of Council’s Resourcing Strategy, including the Long Term Financial Plan (LTFP). The LTFP was being prepared ahead of the October briefing with Councillors, and in preparation for Council’s extraordinary meeting which took place on 5 November 2024. This document is now on public exhibition until 4 December 2024 and the community can make submissions through Council’s “Get Involved” page.

During the quarter Council’s Annual Financial Statements were prepared and were presented to Council for referral to the NSW Audit office. The external audit commenced the following week (9 September 2024), and was finalised by the 31 October 2024 deadline.

Council’s Financial Sustainability Review (FSR) project continued during the quarter with the first wave of operational savings being reported to Council on 28 October 2024 (CL24.287). In addition to savings achieved prior to 1 July 2024, and therefore already embedded into the original budget adopted by Council, an additional $1.060M in general fund savings (with $20K being returned to the Waste Reserve) was identified for removal from budgets, and is proposed to be quarantined in the proposed Financial Sustainability Reserve. This will ensure transparency of savings achieved, allowing community to see the balance of this reserve grow inline with each of Council’s Financial Sustainability Productivity and Efficiency Reports.

Council has limited unrestricted funds. This is a matter for concern for Council and is regularly addressed in Council business papers, briefings and is evident in Council long Term Financial Plan. Management of Council’s cash position continues to require considerable effort from the Finance and Disaster Recovery Teams to ensure that Council’s restricted cash reserves are not breached – given the significant on-going expenditure on disaster recovery works and the resulting processing and receipt of recovery and other grant funding acquittals.

At 30 September 2024, Council has spent $14.7M of General Fund cash in advance for grant funded projects whereby the grant monies have not yet been receipted, with $4.5M of this relating to Natural Disaster projects. This resulted in a preliminary negative unrestricted cash position of $13.0M. To restore Council’s unrestricted cash back to NIL, the Financial Assistance Grants internal restriction and the s7.11 recoupment restriction were utilised in accordance with Council’s Liquidity Contingency Policy. This policy ensures that external restriction amounts remain protected.

Further, throughout October and November conversations continued with Transport for NSW (TfNSW) regarding Natural Disaster funding and Council’s outstanding payment for claims submitted relating to Emergency Works (EW) or Immediate Reconstruction Works (IRW). Council has submitted claims totalling $7.5M, which are expected to be processed and paid prior to 31 December 2024. EW and IRW works are not covered by the Tripartite Agreement – an agreement between NSW Reconstruction Authority, Transport for NSW and Shoalhaven City Council that provides for the prepayment of funds to carry out - and therefore results in a cash payment to Council as opposed to a draw down on the prepayment already received.

It is imperative that Council remains cash flow positive when delivering these significant works. Failure to do so will place pressure on Council’s unrestricted cash position and could result in projects being temporarily suspended until cash is made available.

Preliminary General Fund Year End Results and Quarterly Review Movements

General Fund

Council’s General Fund original budget for 2024-25 was projecting a deficit before capital of $28M or an Operating Performance Ratio of negative 10.3%. This quarterly review has identified an increased in Council’s projected General Fund’s deficit as a results of project carried forward from 2023-24, and proposed quarterly budget adjustments. The updated projected General Fund deficit is $31.8M or Operating Performance Ratio of negative 12.3%.

The increase in the projected deficit is primarily driven by the following:

· Carry forwards of $3.2M for incomplete operational works in Natural Disasters, Works and Services, Environmental Services and Shoalhaven Riverfront. This is a timing difference and whilst the expenditure is now projected to be incurred in 2024-25, there is no impact on Council’s cash position as these works are funded through restricted reserves or general fund cash that was budgeted to be spent in the 2023-24 financial year.

· Quarterly budget adjustment of $1.3M for an unbudgeted developer claim for reimbursement under the Bishop Drive VPA (funded through Section 7.11 – no impact on unrestricted cash)

These expenses are partially offset by the Financial Sustainability Review savings/income that are to be recognised in quarter 1 – $1.013M in savings and $50K in increased income – totalling $1.06M

The following table presents a high-level summary of the budget and movements for the General Fund for Quarter 1 2024-25:

Table 4: General Fund budget movements for Quarter 1 2024/25

($'000)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Favourable / (Unfavourable)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Net Operating Result	80	53,492	53,572	86,564
Net Operating Result before Capital Grants & Contributions	-28,078	-3,677	-31,755	84,851

Finance is closely monitoring actual expenditure across Council. The improvements in financial culture, which have been embedded throughout the organisation over the previous 12 months, have resulted in improved fiscal outcome for the organisation. YTD expenditure is $84M compared to a full year revised budget of $345M – this represents 24% of the full year budget and is an appropriate year to date spend.

Whilst YTD actual employee costs are currently 21% of full year budget, seasonal casuals will be employed during November to March to service the community during peak summer season. Council’s employee costs budget is phased for this seasonal trend and therefore at 30 September 2024, actual YTD employee cost are $22M, compared to a YTD Budget of $23.9M. Salaries will continue to be monitored through to 31 December 2024, with the intention of reducing employee cost budgets and quarantining the underspend to date into the new internal reserve as part of the Quarter 2 (October to December) budget adjustments.

Whilst Materials and services YTD expenditure represents 25.7% of the full year budget, this is appropriate due to timing of expenditure. A number of key contracts are paid in full at the beginning of the financial year, and therefore a 25% per quarter expected spend pattern is not appropriate.

Other Expenses are behind budget due to the timing of Waste Levy payments. It is expected that the full year budget will be achieved by the end of the financial year.

Following the completion of the external audit, and the receipt of an unqualified audit opinion from the NSW Audit Office, the updated fair value of Council assets is known. As such, depreciation forecast will be revised in Quarter 2 budget review (October – December).

Income is on track to meet the full year forecast. Whilst user fees and charges are 21.5% received YTD, this is due to the seasonality of income earned at Holiday Haven and through aquatic centres which will spike over the summer months.

On the key unrestricted cash movement indicator, the original budget was built on the assumption there would be no decrease in unrestricted cash, and factored in a favourable movement of $1k for 2024/25. The budget adjustments made relating to Q1 and carry forwards are fully funded and do not change the forecast unrestricted cash position of council at 30 June 2025.

Performance Measures

The revised forecasts of the Office of Local Government (OLG) performance measures for the 2024-25 financial year are detailed in Table 5 below.

Table 5

Ratio	September revised forecast	Benchmark	Pass/Not Met
Operating Performance Ratio	-12.3%	>0%	Not Met
Own Source Revenue Ratio	72%	>60%	Pass
Debt Service Cover Ratio^	1.46	>2.00	Not Met
Infrastructure Renewal Ratio^^	47.5%	100%	Not Met

^ Debt service cover ratio denominator removes the additional $10m in voluntary loan repayments not contractually required to be paid in 2024-25

^^ Proposed Revised budget renewal ratio excludes Natural Disasters, if Natural Disasters had been included renewal ratio would be 111.2%

The calculations supporting these performance measures are reported in Attachment 2 – Quarterly Budget Review Report - September 2024.

In addition to the OLG performance measures, Council also has debt covenants it is required to achieve under its borrowings with NSW Treasury Corporation. Council is forecast to meet all required ratios on 30 June 2025 (the reporting date). The calculations supporting these debt covenant ratios are reported in Attachment 2 – Quarterly Budget Review Report - September 2024.

Financial Sustainability Internal Restriction

It is proposed that as part of the recommendation of this report to create a new internal restriction titled “Financial Sustainability Reserve”. The Reserve will be used to quarantine savings identified through the Financial Sustainability Project, providing transparency to community regarding where the savings have gone and how they are accumulating over time.

It is proposed to quarantine $1.04M in annual savings to date within the reserve.

Cash and Investments

Council held $205M in cash and investments at 30 September 2024. This is split between amounts externally restricted, internally restricted, and amounts unrestricted. Council’s cash and investments are reported in Attachment 2 – Quarterly Budget Review Report - September 2024.

The funding, and ongoing management, of the grants spent in advance has placed significant pressure on the management of Council’s cash resources, and it will continue to be a challenge until Council's unrestricted cash levels are reinstated to the pre COVID amounts.

Preliminary Water Fund Year End Results and Quarterly Review Movements

Council’s Water Fund original budget for FY 2024-25 was projecting a surplus before capital of $478K or an Operating Performance Ratio of positive 0.8%. This quarterly review has identified a slight deterioration in Water Fund’s position to a projected surplus before capital of $382K or Operating Performance Ratio of positive 0.8%.

The slight deterioration in the Water Fund projected performance is due to additional postage costs required. These costs have been partially offset by a reduction in insurance and communication charges, resulting in a next movement of $109K.

The following table presents a high-level summary of the budget and movements for the Water Fund for Quarter 1 2024/25:

Table 6: Water Fund budget movements for 2024/25

($'000)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Favourable / (Unfavourable)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Net Operating Result	2,118	-58	2,060	-872
Net Operating Result before Capital Grants & Contributions	478	-95	382	-1,030

Preliminary Sewer Fund Year End Results and Quarterly Review Movements

Council’s Sewer Fund original budget for FY 2024-25 was projecting a surplus before capital of $8.5M or an Operating Performance Ratio of positive 13.1%. This quarterly review has identified an improvement in Sewer Fund’s position to a projected surplus before capital of $9.9M or Operating Performance Ratio of positive 15.6%.

The improvement in the projected surplus is due to both an increase in income, and a reduction in expenditure. Sewer availability charges have exceed budget generating an additional $425K above budget. In addition, as part of the financial sustainability review program, a more cost effective solution for the disposal of biosolids has been implemented, saving $975K annually.

The following table presents a high-level summary of the budget and movements for the Sewer Fund for Quarter 1 2024-25:

Table 7: Sewer Fund budget movements for 2024/25

($'000)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Favourable / (Unfavourable)	Current Adopted Budget	Carry Forwards and QR Adjustments	September QR Revised Budget	YTD Actuals
Net Operating Result	10,511	1,370	11,881	3,504
Net Operating Result before Capital Grants & Contributions	8,486	1,370	9,856	3,316

Capital Projects Progress Overview

· The adopted 2024-25 capital works program consisted of 202 projects with a total capital works program of $126.9M of which Shoalhaven Water & General fund waste reserve constitute $51.6M and the remaining $75.3M to be delivered by general fund (excl Waste). The adopted capital works program excluded Natural Disasters.

· The proposed revised program including carry forwards and revotes (more details below) consists of 387 projects with a total capital works program of $186.1M. Of which Shoalhaven Water & General fund waste reserve constitute $64.5M, Natural Disasters constitute $41.1M, and the remaining balance of $80.5M is to be delivered by General Fund (Exc Waste).

· The General Fund (exc Waste) capital project budget has increased by $5.2M (from $75.3M to $80.5M).

· The proposed revised capital works program is $28.3M spent comprising 15% of the program.

· The general fund portion (unrestricted cash) of the program is $12.9M representing only 7% of the total program. Of this $12.9M, $3M is tied to grant funding

There are minimal projects that are 100% funded through general funds (unrestricted cash). The majority of projects are attached to multiple funding sources, and in some cases, more than 1 grant funding source. This makes the prioritisation of these projects critical. Should the projects not be completed on time, grant funding attached to the work could expire.

FY 2024-25 Carry Forwards and Revotes to be adopted

A carry forward is a capital project which commenced in the 2023-24 financial year but was not completed by 30 June 2024. A revote is a capital project that was budgeted for commencement in 2023-24 and did not commence (no expenditure incurred).

Council carry forwards and revotes request for FY 2024-25 are to be considered at the September 2024 quarterly budget review (QBR1).

Council has reviewed the adopted FY 2024-25 capital works program and considered the following:

· Inclusion of carry forwards and revotes from the 2023-24 financial year capital works program into the 2024-25 financial year program totalling $56.5M.

· Carry forward and revotes are split as follows:

· Natural disaster carry forwards totalling $33.3M and revotes of $1.8M (total $35.1M). These works need to be brought into 2024-25 to ensure delivery of works prior to the completion date of their respective funding arrangements.

· Shoalhaven Water carry forwards totalling $11.2M.

· Waste reserve revotes of $104K

· General fund (exc Waste) carryforwards of $9.7M and revotes of $336K. Of the $9.7M carryforwards $2.6M of this relates to Ulladulla Boardwalk and Ulladulla Harbourside, projects subsequently removed from the capital works in quarter 1 2025.

A resolution was passed 29 January 2024 (MIN24.44) requiring staff to “substantially reduce annual revotes/carry forwards unless approved by Council and should not represent more than $10 million of the capital works/renewals budget for the previous year”. Carry forwards/revotes have improved compared to prior year, however on a consolidated basis (General Fund and Shoalhaven Water), the total is more than $10M.

Council will continue to refine the 2024-25 capital works projects throughout the December 2024 quarter, as preparation for the 2025-26 financial year budget commences.

The EPMO is actively monitoring spend in accordance to Project Manager’s forecasts. In coming months, a detailed review will be conducted into the appropriateness of budget phasing and project deliverability to further improve budgeting accuracy, further limiting carryforwards required for 2025-26 with the aim to eliminate revotes, and to achieve the $10M target endorsed by Council.

Conclusion

This financial year will be extremely challenging. For the past 12 months Council has been open about its financial challenges, discussing the importance of Council’s long term sustainability at each Quarterly Budget Review. Further, the draft budget paper endorsed at the 6 May 2024 Council meeting (CL24.118) and the final budget paper endorsed at the 24 June 2024 Council meeting (CL24.179) highlighted the key financial challenges as they regard to minimal cash, exposure to natural disasters, and insufficient funding to support the required investment in roads and other infrastructure assets.

The current lack of available cash and the intervention that Council continues to take in the 2024-25 financial year to avoid using restricted cash puts Council at considerable risk. Council’s budget leaves no room for error and unplanned events, including further natural disasters, which continue to place more pressure on Council’s resources.

While improvements to the efficiency and productivity of service delivery will assist in closing the gap between revenue and costs these options take time to implement, and will fix the financial shortfall Council is facing.

Internal Consultations

Council staff from across the organisation have provided information to compile the report.

External Consultations

Nil.

Community Consultations

The community is consulted via public exhibition as part of the development of the DPOP and Budget each year.

Subject to Council’s endorsement, the Quarterly Performance report will be made available on Council’s website. A range of other communication methods may also be used to communicate the outcomes of the report including performance highlights across Council’s social media platforms.

Policy Implications

There are no policy implications.

Financial Implications

The proposed changes and 30 June 2024 year end adjustments impacting the 2024-25 Revised Budget result in a forecast unrestricted cash balance as at 30 June 2025 of $2.26M. 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 the adjustments conform to the requirement of no cash deficit budgeting.

Risk Implications

Due to the funding constraints documented throughout this report, it is unlikely there will be unrestricted general fund cash to commit to unplanned capital such as unfunded natural disaster works should another disaster be declared, or if a significant event was to occur such as mechanical failure of a major asset. This risk of not being able to fund the required works could result in reputational and safety risks for the Council.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.374 Recognition of Community Led Plans

HPERM Ref: D24/478415

Department: Corporate Performance & Reporting

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Cambewarra Resident and Ratepayers Association Business Plan (under separate cover) ⇨

2. Red Head Villages - Community Plan for a sustainable future 2024-2030 (under separate cover) ⇨

Purpose:

The purpose of this report is to provide details of the Cambewarra Business Plan and the Red Head Villages Community Plan that have been received and to be acknowledged by Council.

Summary and Key Points for Consideration:

The report provides details of two Community Led Plans that have been received by Council from the community. These plans join other Community Led Plans that Council has acknowledged and to recognise these plans as part of Council’s overall community engagement strategy for Council’s Corporate Planning Framework process.

Recommendation

That Council:

1. Recognise the following Community Led Plans:

a. Cambewarra Village Business Plan

b. Red Head Villages – Community Plan for a sustainable future 2024-2030

2. Acknowledges the dedication of the community members involved in developing these plans and encourages partnerships to achieve good outcomes into the future.

3. Will utilise Community Led Plans to assist in determining community priorities and needs as part of its overall community engagement strategy, and notes the priority projects to be considered in the annual development of the Operational Plan and Budget.

Options

1. Adopt the recommendation.

Implications: This will support the work that has already been carried out by the community and provide a consistent approach for any future community plans that may be received by Council. The community expects that their plans be received and considered by Council.

2. Adopt a different recommendation.

Implications: Staff will implement as recommended. Adopting an alternative approach in support of these plans may have several implications for Council policy and procedures and would need careful consideration.

Background and Supplementary information

Community Led Planning is a community engagement and strategic planning technique where the community undertake a discussion and consultation with their own community and develop a plan.

Shoalhaven City Council is one of a few councils that recognises and supports this type of process and one of a few Councils in NSW with such an active Community Consultative Body (CCB) network. CCBs are resident representative groups that are endorsed by Council as the representative group for residents and ratepayers in each geographic area with a common interest.

Several Shoalhaven communities have undertaken various forms of community led planning, which has resulted in the development of community plans for particular towns and villages. Each plan has been carried out in a different way and contains different, themes, actions and focus. Most have used consultants or other external facilitators to assist in the community engagement process and development of the plan. All plans have demonstrated detailed community engagement has been undertaken. Not all plans have had complete community agreement, but CCBs have supported the outcome of the final plans.

Plans that have been finalised and provided to Council since 2013 include:

· Shoalhaven Heads Community Strategic Plan

· Berry Community Strategic Plan

· Conjola District Strategic Action Plan 2014-2030

· Sussex Inlet & District Strategic Action Plan 2015-2030

· Bay & Basin Community Led Strategic Plan

· Community Led Adaptation and Resilience Strategy for Shoalhaven.

Council does not currently have the resources to actively participate in the development of the community plans or implement all the actions contained within plans. Council staff will continue to provide support to CCBs through the provision of advice, examples, contacts, grant opportunities and template suggestions.

Cambewarra Business Plan

In August 2022, the Cambewarra Residents and Ratepayers Association (CRRA) provided Council with a Business Plan which outlined a number of issues relating to pedestrian/cyclist safety and degradation of the village character. Staff have acknowledged the Plan and provided advice that Council is committed to considering the solutions outlined.

Requests in relation to a shared pathway around Cambewarra, Badagarang linked to Bomaderry have been included in Council’s new Active Transport Strategy and Pedestrian Access Mobility Plan (PAMP). Council will continue to consider proposed capital works for inclusion in forward programs or consideration for grant applications. A copy of the Business Plan is provided in Attachment 1.

Red Head Villages – Community Plan for a sustainable future 2024-2030

In June 2021, Council endorsed $50K financial support to the Red Head Villages Association (RHVA) towards consultant costs for the development of a masterplan (MIN21.395). The subsequent community plan was launched in September 2024.

The Red Head Villages Community Plan for a Sustainable Future (the Plan) has been developed by the Red Head Villages community based on the collective knowledge of members who participated in four community drop-in sessions (approximately 180 people) in October 2022 and a survey (406 people) in April/May 2023. The Plan represents the community’s expectations and is a call to action for ongoing engagement between the community, Shoalhaven City Council and others. The RHVA, its elected Committee will manage the implementation of this Plan with ongoing community consultation. A copy of the Plan is provided in Attachment 2.

Internal Consultations

The Cambewarra Business Plan was distributed to all Directors and their teams for consideration in forward planning in 2022.

External Consultations

Both CCBs were advised that these community led plans will be reported through for recognition by Council.

Community Consultations

No Council led community consultations were undertaken in preparation of this report.

Policy Implications

The level of recognition applied to these plans will directly impact on existing Council policy and strategic planning frameworks. The recommended approach acknowledges that existing frameworks are in place including legislative requirements and that these plans best fit into the community engagement component of the corporate planning process. Adopting an alternative approach may have several implications for Council policy and procedures and would need careful consideration.

Financial Implications

Support for projects identified through community led plans will require budget to be allocated through the annual process of developing Council’s Delivery Program Operational Plan.

Risk Implications

No additional risk implications are identified.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.375 Report Back - Council Advocacy: Stricter Planning Regulation of Tobacco and Vape Stores

HPERM Ref: D24/425481

Department: Strategic Planning

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Notice of Motion, June 2024 - Stricter Regulation of Tobacco and Vape Stores ⇩

Purpose:

To provide the resolved repot back on MIN24.317 (3 June 2024) that advocated for greater planning controls to help manage and reduce the number and location of tobacco and vape stores locally.

Summary and Key Points for Consideration:

The NSW Government and Local Government NSW (LGNSW) were contacted requesting a response to Councils resolved advocacy requests covering the following:

· Tobacconist stores be required to go through the development application (DA) pathway;

· Ability to limit and possibly reduce the number of stores operating in NSW; and

· Ability to cap the number per Local Government Area (LGA).

The written responses received are summarised below:

· Currently no legislative ability to prohibit a tobacco retailer from operating in a certain area based on proximity to other retailers.

· Tobacconists and stores selling vaping products are categorised as ‘shops’ or ‘neighbourhood shops’ and are allowed with development consent in various land use zones.

· Currently no restrictions on tobacconists in the immediate vicinity of schools or other shops frequented by children/families. Are considering whether the current exempt and complying development planning provisions (no DA needed) are appropriate for locations near sensitive land uses.

· Limiting or reducing the number of stores in NSW or each LGA is a market intervention outside the planning legislative framework and cannot be delivered through planning instruments.

· Matter will be debated at the 2024 NSW Local Government NSW Conference.

There is currently little direct action that Council can take in this regard given the current planning system within which it operates. The matter will however be monitored and reported back to Council should future intervention opportunities arise.

Recommendation

That Council

1. Receive the report back (required by Part 5 of MIN24.317, 3 June 2024) on Council’s advocacy to the NSW Government and Local Government NSW regarding controls on tobacconist stores for information;

2. Monitor any outcomes from the motion in this regard to the 2024 Local Government NSW Conference and also the NSW Department of Planning, Housing and Infrastructure’s review into the appropriateness of tobacconist stores being located near sensitive land uses through exempt and complying development planning provisions; and

3. Consider a future report on this matter if needed, depending on the outcome of Part 2.

Options

1. As recommended.

Implications: The report will be received for information. Any outcomes from the 2024 Local Government NSW Conference or the review into the appropriateness of tobacconist stores being located near sensitive land uses through exempt and complying development planning provisions will be monitored and reported back as needed.

2. Make an alternate recommendation that could include attempting to proceed to adjust or amend Councils Local Environmental Plan (LEP) or making further representations to government and others in this regard.

Implications: Would be dependent on the nature of any decision. However from the feedback received, there is currently no easy ability for a Council to amend its planning controls to effectively restrict or limit such stores. The utility of Council making further direct representations to government is unknown, but is likely to be limited considering the responses received.

Background and Supplementary information

Following a Notice of Motion (Attachment 1), it was resolved on 3 June 2024 (MIN24.317):

That Council:

1. Acknowledges that smoking is the leading cause of preventable disease and death in Australia.*

2. Advocate to the NSW Government that the standard instrument LEP zonings related to mixed-use and employment zones, and the exempt and complying criteria under the SEPP (Exempt and Complying Development Codes) 2008 are revised to mandate that tobacconist stores (whether attached to gift shops as a commercial premises or not) require approval through a development application.

3. Advocate to the NSW Government that there be a limit and possibly a reduction in the number of tobacconist stores authorised to operate in NSW and a cap on the number of these businesses per LGA.

4. Write to LGNSW to seek their assistance in advocating for these changes.

5. Receive a report back to Council identifying all local and state regulatory and planning powers and pathways that can be activated to achieve the objectives stated above.

*https://www.health.gov.au/topics/smoking-vaping-and-tobacco/about smoking/effects#:~:text=Heart%20disease%2C%20stroke%20and%20blood,the%20heart%2C%20brain%20or%20legs

As a result, Council wrote to the NSW Government and Local Government NSW (LGNSW) advising of them of the resolution and requesting that they take the necessary steps to assist. The following summarises the responses received.

Ryan Park MP, Minister for Health and Minister for Regional Health

Concerns and advocacy acknowledged. NSW retailing laws are designed to protect the community from harms associated with tobacco and e-cigarettes. This involves enforcing breaches relating to illicit/illegal products , sale to minors and display/advertising restrictions.

Legislation requires retailers to notify NSW Heath if they intend to sell tobacco, non-tobacco smoking products and/or e-cigarettes. There is a strong compliance/enforcement program for breaches. Premises proactively visited to monitor compliance and enforce breaches.

Currently no legislative provisions that prohibit a tobacco retailer from operating in a certain area based on proximity to other retailers.

NSW Department of Planning, Housing and Infrastructure (DPHI) on behalf of Paul Scully MP, Minister for Planning and Public Spaces

Each Council has its own LEP to regulate land use/development in its area. Tobacconists and other stores selling vaping produces categorised generally as ‘shops’ or ‘neighbourhood shops’ and are allowed with development consent in various zones.

No planning provisions in LEP’s or the NSW Government’s Codes State Environmental Planning Policy (SEPP) that differentiate shops selling tobacco/vaping products from other retail establishments. Thus, currently no restrictions on tobacconists in the immediate vicinity of schools or other shops frequented by children/families. Are however considering whether the applicable exempt and complying development provisions are appropriate for locations near sensitive land uses.

Limiting or reducing the number of stores in NSW or LGA is a market intervention that is outside the planning legislative framework and cannot be delivered through planning instruments.

Local Government NSW

Does not currently have any position in support of reducing tobacconist stores or a cap on these businesses per LGA. May be controversial given it seeks to restrict one particular kind of business.

Councils representations to the Minister for Planning noted. If Council wants LGNSW to take action on this matter, Council may wish to lodge a motion on it to the LGNSW Annual Conference, so that local government sector support for the proposal can be gauged.

Note: from this feedback, Council separately resolved in August 2024 (MIN24.448) to endorse the inclusion of an additional motion to the 2024 LGNSW Annual Conference covering MIN24.317 (above). Council’s advocacy points will now be considered at the Conference.

Concluding Comments

Part 5 of Councils resolution (MIN24.317) is aimed at what local and state regulatory and planning powers and pathways can be activated to achieve an outcome. The following comments attempt to clarify this, noting that there is currently no ability through the planning system to explicitly limit or control the location and number of this type of store.

Under the NSW Governments Standard LEP Instrument, on which Council’s LEP is legally based, it is not possible to separately define tobacconists and other stores selling vaping produces given the requirement to use definitions that are set within the instruments dictionary.

As advised by the DPHI, these types of shops currently fall within the existing definitions of ‘shops’ or ‘neighbourhood shops’. These uses are mandated by the government as being permitted with consent under the broader ‘commercial premises’ (shops are permitted as retail premises) in the E1 Local Centre, E2 Commercial Centre and MU1 Mixed Use land zones under the Standard LEP Instrument. Most existing CBD’s and town centres within Shoalhaven are zoned E1, E2 or MU1 or a mix of these zones.

Thus it is not possible to amend Councils LEP to prohibit (in some locations) or limit consideration of stores of this nature or their number. This nuanced level of control would require amendments to the Standard LEP Instrument that would need to be undertaken by the NSW Government and given the nature of this instrument would then apply statewide. At present DPHI has advised that this will not be pursued, noting that it is not the role of the planning system to intervene in the market.

Under the current provisions in the Codes SEPP it is possible for an existing approved ‘shop’ of one kind to change to another kind without the need for development approval from Council. As a result Council is not able to consider the appropriateness or otherwise of a use in a particular location. The DPHI have advised that they are looking into whether the applicable exempt and complying development provisions are appropriate for locations near sensitive land uses.

This general issue (growth of tobacco/vape stores, sales restrictions and use) is continuing to receive considerable attention by all levels of government. For example, in August 2024 the NSW Parliament’s Legislative Assembly Committee on Law and Safety tabled its report on E-cigarette regulation and compliance in New South Wales. This report contains detailed findings and recommendations that will now be considered by the NSW Government, with a response due in early 2025. In late October 2024 the NSW Government announced that it would strengthen enforcement to tackle illegal tobacco, including a new licencing scheme for retailers.

Whilst Council cannot currently take any direct action given the planning system within which it has to operate, there are a range of matters running that could deliver general changes in this regard (e.g. changed licencing schemes and enforcement/compliance activity). These will be monitored and reported back to council for consideration should future opportunities arise.

Internal Consultation

No internal consultation necessary at this stage.

External Consultations

No formal external consultation undertaken. Council wrote to the NSW Government and LGNSW.

Community Consultations

Broader community engagement not required/undertaken at this point.

Policy Implications

The planning policy considerations are discussed in this report.

Financial Implications

No direct financial implications at this point. Actioning the Council resolution was undertaken within the existing budget for the Strategic Planning Team.

Risk Implications

No direct risk implications at this point.

Ordinary Meeting – Tuesday 26 November 2024

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CL24.376 Post-Exhibition and Finalisation - Planning Proposal - Local Character - Shoalhaven Local Environmental Plan 2014 (PP073)

HPERM Ref: D24/308440

Department: Strategic Planning

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Character Planning Proposal Submission Summary ⇩

Purpose:

The purpose of this report is to detail the outcomes of the public exhibition of the Planning Proposal (PP073) – Local Character and seeks to proceed to finalise the resultant amendment to Shoalhaven Local Environmental Plan (LEP) 2014.

Summary and Key Points for Consideration:

Council resolved on 8 April 2024 (MIN24.176) to progress a Planning Proposal (PP073) to better address consideration of local character in Shoalhaven LEP 2014 as part of the development assessment process. The PP received a favourable Gateway determination from the NSW Government in June 2024.

In simple terms, the PP seeks to:

· Add an additional overall aim into the LEP to ensure that the protection and enhancement of the unique local character and scenic landscapes of the localities within Shoalhaven is considered in the development assessment process.

· Include additional objectives into six land use zones in the LEP, where medium/high density housing development types (e.g., attached dwellings, dual occupancy, multi dwelling housing, residential flat buildings) are permissible with consent.

In accordance with the Gateway determination and Council resolution, PP073 was publicly exhibited earlier this year. A total of 13 submissions were received, with ten of these generally supportive of the proposed amendments. No changes are proposed to the scope of the PP following public exhibition, and it is recommended that it now proceed to finalisation.

Council’s previous resolution required a further report following the conclusion of the public exhibition period, prior to finalisation.

Recommendation

That Council:

1. Adopt Planning Proposal PP073 as exhibited, and using Council’s delegation, forward to the NSW Parliamentary Counsel’s Office to draft the resulting amendment to the Shoalhaven Local Environmental Plan 2014 and proceed to finalisation.

2. Advise key stakeholders, including those who made a submission and CCBs, of this decision and when the Amendment will be made effective.

Options

1. As recommended.

Implications: This is the preferred option as it will enable the PP to be finalised, and the relevant provisions included in Shoalhaven LEP 2014 in a timely manner. Consideration of character as part of the development process is a key continuing concern for the community and this amendment provides additional mechanisms to address and require due consideration of this key concern through the development assessment process.

Ideally changes to the LEP would be supported by additional character content in the DCP (e.g., a new DCP chapter or other approach) providing clear character statements for settlements or areas to assist the development application process. Such content would be prepared with input from the community, landowners etc. This additional work on planning for character will however be undertaken as part of the proposed Stage 2 work on the new Land Use Planning Scheme for the City. In the meantime the Shoalhaven Character Assessment Report (February 2020) was adopted by Council to provide ‘interim’ Character Statements to support the proposed planning controls for managing local character. As such, it is recognised that this staged DCP approach could add a level of complexity to the development application process for certain applications for a period of time.

2. Adopt an alternative recommendation.

Implications: Depending on its nature, an alternative recommendation could delay the enhancing the consideration of impact on local character in Shoalhaven LEP 2014, or potentially a need to publicly re-exhibit the planning proposal.

3. Not proceed with the planning proposal.

Implications: This is not the preferred option as the identified local character protection matters will remain unresolved. Consideration of local character is a key ongoing community concern.

Background and Supplementary information

On 14 November 2022, a Notice of Motion was presented to Council highlighting community concern regarding the impacts of inappropriate development on local character. A primary focus was the investigation of how local character could be elevated as a key consideration in the assessment of development process, through planning instruments and related documents.

On 28 August 2023, Council resolved (MIN23.451) the following as part of the New Land Use Planning Scheme process:

(Part 1) Endorse the preparation of a Planning Proposal to update the City-wide Local Environmental Plan with provisions elevating the consideration of character in the assessment of development applications. Potential updates could include new Aim(s) for the Plan and Land Use Zone Objectives

(Part 4) Adopt the “Existing Character Statements” and “Future Desired Local Character Statements” identified in the Shoalhaven Character Assessment Report (February 2020) as ‘interim’ character statements to support the proposed planning controls for managing local character. (link to document)

As a result on 8 April 2024, Council resolved (MIN24.176) to:

1. Endorse the preparation of a planning proposal relating to character, based on the scope in Table 1 of this report.

2. Submit the planning proposal to the NSW Department of Planning, Housing and Infrastructure (DPHI) for a Gateway determination and, if favourable:

a. Proceed to formal public exhibition in accordance with the terms of the determination and legislative requirements; and

b. Receive a further report on the following the conclusion of the public exhibition period.

5. Advise key stakeholders, including relevant Community Consultative Bodies, of the resolution and public exhibition arrangements for the planning proposal.

In accordance with the Gateway determination and Council resolution, the PP was publicly exhibited from 26 June to 26 July 2024 (inclusive) on Council’s website. A total of 13 submissions were received (ten of these generally supportive) on the proposed amendments, as follows:

· Three individual submissions supported the proposed amendments

· One individual submission was not supportive of the amendments, raising concerns relating to potential impacts on housing delivery and affordability.

· One submission from a development industry representative recommending an amendment to the zone objectives to shift the focus of the amendments towards ‘future character’ and away from ‘desired’ future character or ‘identified’ character.

· One submission from a development industry representative did not support progressing the PP until further community consultation has been undertaken to establish the desired future character of each locality and also seeking the adoption of a supporting Development Control Plan related to assessment of character.

· Three submissions from Community Consultative Bodies (Basin Villages Forum, Red Head Villages Association & Huskisson Woollamia Community Voice) generally supportive of the proposal with one submission raising concerns about the accuracy of the current adopted Shoalhaven Character Statements document and the need for further consultation.

· Three submissions from community groups (Bay and Basin Community Led Strategic Plan Group, Our Future Shoalhaven, Sanctuary Point & St Georges Basin Community Champions) in support of the proposal.

· One submission from the Huskisson Heritage Association supportive of increased equity and a Shoalhaven-wide approach in addressing heritage issues noting the contribution heritage makes to local character.

A more detailed summary of these submissions is provided in Attachment 1.

Conclusion

Based on the nature of the submissions, and the fact that Council has endorsed further work on character to be undertaken as part of the New Land Use Planning Scheme work, no changes to the PP are recommended post exhibition.

It is recommended that the PP now progress to finalisation. The NSW Government granted Council delegated authority for the PP, which means that Council can prepare and finalise the resulting LEP amendment.

Internal Consultations

Council’s Development Services section were consulted and notified of the exhibition of the PP.

External Consultations

The Gateway conditions did not require the PP to be referred to any NSW Government agencies for review/comment.

Community Consultations

The PP was publicly exhibited from 26 June to 26 July 2024 (inclusive). Key stakeholders, including Community Consultative Bodies (CCBs), were also directly notified in writing of the exhibition arrangements.

The exhibition material remains available on Council’s website and includes:

· Explanatory Document.

· Planning Proposal Document.

· Gateway Determination.

· Public Notification.

A total of 13 submissions were received during the exhibition period, which are discussed briefly above and summarised at Attachment 1.

Policy Implications

Finalising the PP will help ensure there is additional consideration of local character in the development assessment process, which is considered in the broader public interest.

As previously resolved by Council, further investigations into character at a local level will be undertaken as part of Stage 2 of the New Land Use Planning Scheme (consideration in the Development Control Plan).

Financial Implications

There are no immediate financial implications for Council.

The finalisation of the amendment to the LEP will continue to be resourced from the existing Strategic Planning budget.

Risk Implications

It is important to ensure that any change to the LEP is consistent with the Illawarra- Shoalhaven Regional Plan, specifically that the proposed amendments will not impact upon the opportunity to provide additional diverse housing growth generally across Shoalhaven. However, the provision of higher density housing needs to be balanced with the consideration of the long-term liveability and sustainability of the communities in which it will be located.

The amendment seeks to ensure that development does not result in distinct localities no longer being discernible from each another and to retain a level of community connection with these localities.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.377 Disaster Relief Australia Memorandum of Understanding with Shoalhaven City Council

HPERM Ref: D24/500077

Approver: Carey McIntyre, Director - City Services

Attachments: 1. Shoalhaven City Council MOU - DRA (under separate cover) ⇨

Purpose:

The purpose of this report is to seek Council’s adoption of a Memorandum of Understanding (MOU) between Shoalhaven City Council (Council) and Disaster Relief Australia (DRA).

Summary and Key Points for Consideration:

DRA has approached Council seeking its agreement to enter into a MOU with it to provide for resources to be bought to bear by DRA.

The MOU would work together with Council’s existing and unchanged commitments and collaboration with other members of the Local Emergency Management Committee (LEMC).

The resources of DRA would be in addition to those already accessible by the Council in a disaster.

The proposed MOU has been considered by Council’s Local Emergency Management Officer (LEMO), domiciled in the City Services Directorate.

Being a MOU, a resolution of the Council is required to allow for Council to enter into the understanding.

Recommendation

That Council

1. Enter into the proposed Memorandum of Understanding with Disaster Relief Australia for an initial period of two years, to be reviewed and possibly extended at that time on mutual agreement.

2. Delegate the Acting CEO to sign the Memorandum of Understanding on behalf of Shoalhaven City Council.

3. Note Disaster Relief Australia will attend an upcoming meeting of the Local Emergency Management Committee to familiarise itself with the membership of the Committee and also provide an opportunity for the Committee to develop its relationship with Disaster Recovery Australia.

Options

1. Adopt the recommendation as printed.

Implications: Council and the LEMC will be able to access what resources are available within DRA to assist it to participate in the management of and the recovery beyond a disaster.

2. Not enter into the MOU with DRA.

Implications: Council will not be able to access to resources advantages offing being ion a MOU with DRA. Council will be reliant on existing management and recovery resources, which while critical to the wellbeing of the community could be advantageously increased through entering into the MOU.

Background and Supplementary information

The City of Shoalhaven has suffered 15 natural disasters since November 2019. During time of disaster, the resources needing to be drawn from Council on behalf of the community are immense. Any opportunity to mitigate impact that by accessing support available from other organisations needs to be considered.

DRA is a veteran-led disaster relief non-profit organisation. It brings together the skills and experience of military veterans and other volunteers to help communities prepare for and recover from disasters.

DRA has steadily gained traction since its inaugural mission to Proserpine in 2017. It integrated veterans with emergency services specialists in a cyclone recovery effort and demonstrated a unique capability to help communities recover from disaster.

DRA was awarded the 2023 Australian Charity of the Year. That award recognises DRA’s capability and capacity – through its Project Resilience initiative and Big Map exercises – to help communities prepare for future disaster events.

Subsequently, on 14 October 2024, DRA provided Council with a draft MOU (see Attachment 1).

The MOU has the following objectives (see page 2 of the MOU):

1. This Memorandum of Understanding (“MoU”) is not intended to create legally binding obligations between either party.

2. This MoU sets out an arrangement between Disaster Relief Australia (“DRA”) and the Shoalhaven City Council (“SCC”) for the coordination of disaster relief, recovery, planning and capacity building capabilities offered by DRA.

3. The parties wish to document their operational understandings and agreed protocols in respect to the coordinated delivery of disaster relief, recovery, and resilience capabilities to people, properties and environment impacted by disasters, and support the Local Emergency Management Committee (“LEMC”), and to enable the parties to plan and develop the resources and capacities necessary to carry out the responsibilities specified in this MoU.

The proposed MOU has been reviewed by Council staff, including the LEMO and no changes were considered necessary.

DRA will be attending an upcoming meeting of the LEMC in order to develop the relationship further, between it, the LEMC and Council.

Internal Consultations

Internal consultation has occurred with staff within the City Services Directorate, including the LEMO.

External Consultations

As this is a proposed MOU between DRA and Council, no other external notification is required.

Community Consultations

Community notification is limited to this open report to the Council.

Policy Implications

There are no policy implications as a result of the recommendations of this report. Being a MOU, a resolution of the Council is required to allow for Council to enter into the understanding.

Financial Implications

Support arrangements are set out on Page 9 of proposed MOU (Attachment 1). Similarly, financial arrangements are set out on Page 10.

DRA has been communicated with in regard to financial arrangements. Council has been advised that DRA does a significant amount of community-based short term operations that is budgeted for by DRA.

In circumstances where a disaster has more prolonged impacts and where a need exists, Council may engage DRA to undertake services, on a Fee for Service basis (see page 10), but under the proposed MOU is not compelled to do so.

In short, where a Fee of Service applies, Council has the prerogative to opt in or opt out of engaging DRA for that service.

Risk Implications

DRA is responsible for its own insurances and liabilities associated with the delivery of its services, its members and maintaining their currency and coverage. DRA will require that any individual or organisation sign a waiver prior to any DRA work commencing.

DRA has and maintains the following insurances:

· Public Liability Insurance – $20M

· Directors’ and Officers’ Insurance

· Volunteer Insurance

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.378 Acquisition of Land for Road Widening - Part Lot 5 DP 571465 - 5 Kingsley Avenue, Ulladulla

HPERM Ref: D24/446451

Department: Technical Services

Approver: Carey McIntyre, Director - City Services

Purpose:

The purpose of this report is for Council to consider the acquisition of part Lot 5 DP 571465, (No. 5) Kingsley Avenue, Ulladulla under the provisions of the Land Acquisition (Just Terms Compensation) Act 1991 for the purpose of public road requirements.

Summary and Key Points for Consideration:

On 25 July 2022, Council resolved (MIN22.491C) to acquire approximately 235m² from the property at 28 St Vincent Street, Ulladulla (having rear access to Kingsley Avenue) for the purposes of public road (cul-de-sac construction) to facilitate traffic management and access along Kingsley Avenue. Settlement for the land acquisition occurred in August 2023.

The required design for the cul-de-sac construction also requires a separate 25m2 area of land to be acquired, being the adjoining land Lot 5 DP571465.

Negotiations with the landowner of Lot 5 DP 571465 (5 Kingsley Avenue), have been ongoing and agreement has now been reached on the compensation amount.

A Council resolution is required to acquire the additional area of land and to approve the compensation amount.

Recommendation

That Council

1. Acquire by negotiation under section 177 of the Roads Act 1993 the land described as part Lot 5 DP571465 identified in this report, for road widening purposes comprising an area of approximately 25m2 (subject to final survey and plan of acquisition).

2. Authorise the Chief Executive Officer be delegated with authority to complete negotiations including compensation payable in the amount $22,500 excluding GST (if applicable) including minor adjustments subject to final survey.

3. Dedicate the identified area of part Lot 5 DP571465 as public road pursuant to section 10 of the Roads Act 1993 including notice in the Government Gazette.

4. Be responsible for all costs including landowner’s reasonable costs such valuation, survey, plan registration, transfer and legal costs in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.

5. Authorise the Common Seal of the Council of the City of Shoalhaven to be affixed to any document required to be sealed and delegate authority to the Chief Executive Officer to sign any documentation necessary to give effect to this resolution.

Options

1. Adopt as recommended

Implications: The acquisition of part Lot 5 DP 571465 will formalise the creation of a cul-de-sac within the public owned road reserve to address traffic flow and garbage collection issues on Kingsley Avenue, complementing the land acquisition already completed for road purposes at the southern end of Kingsley Avenue.

2. Not adopt as recommended

Implications: Council will be unable to deliver a cul-de-sac to address traffic flow and garbage collection issues at the southern end of Kingsley Avenue, Ulladulla. This will negatively impact services to the multi-dwelling properties on the street.

Background and Supplementary information

The assessment of a Development Application for a multi-dwelling housing development at 28 St Vincent Street, Ulladulla identified that a wider road carriageway within an extended road reserve was required to service proposed new residential development accessing Kingsley Avenue.

Kingsley Avenue is a ‘no through road’ connecting Nurrawallee Street to the north and terminating adjacent to 28 St Vincent Street to the south. Private property redevelopment has taken place along Kingsley Avenue requiring improved traffic management and access and provision for garbage collection services.

With the road design process, Council staff determined that a 9.5m minimum radius cul-de-sac and minimum 3m verge, would resolve the traffic challenges as shown in Figure 1 below.

Map

Description automatically generated with medium confidence

Figure 1: Proposed cul-de-sac design

The cul-de-sac arrangement required the acquisition of approximately 235m² from the landowners of 28 St Vincent Street, Ulladulla, plus a separate 25m² area from adjoining Lot 5 DP 571465, as shown shaded red in Figure 2 below (the subject of this report).

Figure 2: Land identified for acquisition for road purposes

Council initiated negotiations with the landowner of 28 St Vincent Street, Ulladulla to acquire the identified land for road widening consistent with Council’s resolution (MIN22.491C) with settlement occurring in August 2023. Negotiations with the landowner of Lot 5 DP 571465 for the additional area of land continued for a longer period.

Agreement has now been reached with the landowner of Lot 5 DP 571465 for the acquisition of approximately 25m² subject to Council resolution.

Internal Consultations

Consultation has taken place with the relevant asset custodian.

External Consultations

Negotiations with the landowner has been undertaken in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.

Community Consultations

Community engagement is not required for operational purposes such as land acquisition.

Policy Implications

The acquisition process has been undertaken in accordance with policy POL22/120 – Acquisition of Land by Shoalhaven City Council.

Financial Implications

An independent valuation report was commissioned from certified practicing valuer consistent with the Land Acquisition (Just Terms Compensation) Act 1991. The valuer’s recommended compensation amount of $22,500 excluding GST (if applicable) was accepted by the landowner.

Council will reimburse the landowner’s reasonable legal, valuation and other costs associated with the acquisition as required under the Land Acquisition (Just Terms Compensation) Act 1991.

The costs of acquisition will be funded from Council’s existing budget. No unbudgeted costs will be incurred.

Risk Implications

Acquisition of the land is required for Council to deliver a constructed road cul-de-sac to address traffic flow and garbage collection challenges at the southern end of Kingsley Avenue, Ulladulla. Council’s interests have been considered and there is minimal risk associated with the proposed acquisition.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.379 Grant Electricity Easement to Endeavour Energy – Community Battery – Lot 35 DP 242182 33 Tannery Rd Cambewarra

HPERM Ref: D24/473325

Department: Buildings & Property Services

Approver: Carey McIntyre, Director - City Services

Purpose:

The purpose of this report is to provide Council with an update on the consultation undertaken with Cambewarra Community Consultative Body (CCCB) as resolved by Council (MIN24.570).

On 28 October 2024 Council resolved that:

1. Council defer this item for further Community Consultation with Cambewarra Community Consultative Body.

2. The consultation period be for 14 days.

3. The CEO provide a further report to the Ordinary Meeting 26 November 2024.

Endeavour Energy seeks approval to the grant of an easement for a proposed community battery installation over Council community land known as Howell Faulks Park being Lot 35 DP 242182, 33 Tannery Road, Cambewarra.

The community battery is part of an Endeavour Energy program to roll out battery infrastructure over sites in nominated local government areas. Council will receive compensation from the grant of the easement.

Summary and Key Points for Consideration:

· Pursuant to Section 46(1)(a) of the Local Government Act 1993, Council may grant easements for public utilities and works over community land.

· Endeavour Energy is an acquiring authority and can acquire land (or an interest in land) by agreement or by compulsory process in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.

· Council resolution is required to grant an easement and determine the compensation amount.

· Council has consulted with the Cambewarra Community Consultative Body (CCCB) and following these discussions, the CCCB extends its support to the solar battery instal proposal.

Recommendation

That Council:

1. Grant an Easement for Electricity pursuant to section 46(1)(a) of the Local Government Act 1993 approximately 64m²area (subject to final survey) over Council community land known as Lot 35 DP 242182, 33 Tannery Road, Cambewarra in favour of Endeavour Energy as shown on Figure 2.

2. Accept payment in the amount of $10,000 (excluding GST) as compensation for the grant of easement which includes Council’s valuation and legal costs of $2,700 (excluding GST) associated with the proposed grant of easement.

3. Consent to Endeavour Energy being responsible for preparation of the easement survey and plan registration with NSW Land Registry Services.

4. Authorise the Common Seal of the Council of the City of Shoalhaven be affixed to any document required to be sealed and delegates authority to the Chief Executive Officer to sign any documentation necessary to give effect to this resolution.

Options

1. Resolve as recommended.

Implications: Occupation of the land will be formalised by registered plan of subdivision and Section 88B Instrument benefitting Endeavour Energy and protecting the long-term integrity of the community battery. Council will receive compensation for the creation of the easement determined by valuation.

2. Not resolve as recommended.

Implications: Endeavour Energy is an acquiring authority and can acquire land (or an interest in land) in accordance with the Land Acquisition (Just Terms Compensation) Act 1991. Compulsory acquisition process to create an easement for the proposed community battery installation will incur more costs and significantly longer period to procure. Endeavour Energy has the authority under the Electricity Supply Act 1995 to instal the proposed community battery infrastructure.

Background and Supplementary information

Endeavour Energy has approached Council seeking an easement for a proposed community battery on Council land.

About Community Batteries

Community batteries give customers choice on how they generate, share, and consume energy. They are part of an initiative to maximise rooftop solar on homes across the Endeavour Energy network.

Community batteries allow a group of neighbours to store and share solar power. For residents with solar installation, excess solar is stored in the community battery and available when needed. The Endeavour Energy community battery program seeks to deliver ten community batteries across Blacktown, Campbelltown, Kiama, Liverpool, Shellharbour, Shoalhaven, Wingecarribee and Wollondilly local government areas.

Proposed Works

Lot 35 DP 242182, 33 Tannery Road, Cambewarra (Howell Faulks Park) is Council owned community land. The grant of the easement will not impact the current use of the community land.

The battery unit proposed is an Ecojoule 30kVA pole mounted battery bank. A new single power pole (timber) will be installed to hold the battery unit, and a single overhead conductor will run between an existing pole supporting the Tannery Road overhead powerline to the new pole (see Figure 1).

Figure 1 – Proposed new community battery pole and overhead cable.

A street with power lines and trees

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Easement

Endeavour Energy require an easement to formalise the occupation of the land and protect the long-term integrity of the community battery. The easement and Section 88B Instrument will formalise maintenance obligations of the proposed infrastructure to ensure Council is not responsible for future maintenance and repair.

The easement size will vary with an easement approximately 7.5m wide around the pole and battery unit and 1.5m wide easement for the overhead conductor. The total easement area is approximately 64sqm subject to final survey as shown in red and green on Figure 2.

Figure 2 – Proposed easement plan (subject to final survey).

An aerial view of a field

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The Howell Faulks Park location was nominated by Endeavour Energy based on the site meeting the technical and environmental requirements needed for the battery project including the potential for a customer base to access the solar generation.

Internal Consultations

The District Engineer – North has been consulted and no objection has been raised to the proposal.

External Consultations

Council engaged a certified practicing valuer to determine the amount of compensation for the easement.

Community Consultations

Community consultation on the installation of the battery at this site was undertaken in January 2024 by Endeavour Energy as part of the environment assessment and determination process. Endeavour Energy will be the determining authority under Part 5 of the Environmental Planning and Assessment Act 1979 for this project. Endeavour Energy directly notified owners/occupiers adjoining the community land of the proposal. No submissions were received.

The proposed easement for community battery was reported to Council on 28 October 2024 (CL24.295). Council deferred consideration pending community consultation with CCCB. CCCB was contacted by Council officers following the 28 October Meeting and responded 5 November 2024 indicating support for the community battery initiative. Council staff subsequently provided more information to the CCB, following feedback from Endeavour Energy.

Endeavour Energy has further advised that once the battery is commissioned notification will be undertaken to a wider group of residents inviting them to participate in the battery program.

Upon request from the CCB, Endeavour Energy also confirmed that in the event there is demand for a greater take-up of the community battery initiative but no additional capacity in the Howell Faulks infrastructure to cater for that demand, it could investigate potential other sites in Cambewarra in the future. This would require negotiation for a new easement and be accompanied by notification to residents to make comment on any new community battery proposal in the village.

Policy Implications

Council’s Development and/or Disposal of Council Lands policy has been observed.

Financial Implications

Council engaged a certified practicing valuer to undertake a valuation for compensation that would be payable by the applicant to Council for the grant of an easement. The amount of compensation was assessed at $3,500.00 (excluding GST). Endeavour Energy has offered to pay compensation to Council for the grant of the easement of $10,000.00 excluding GST which includes Council’s incurred valuation and legal costs ($2,700.00 excluding GST).

Council will receive net compensation of $7,300 (excluding GST) for the grant of the easement which is considered fair and reasonable based on the valuation report obtained. The applicant will be responsible for all costs in the creation of the easement including survey plan and registration at NSW Land Registry Services to complete.

Compensation will be allocated to Easement right of use income and the surplus deposited into Council’s general fund.

Risk Implications

It is normal practice to allow for an interest in land in the form of an easement with compensation determined by valuation. Council’s interests have been considered and there is minimal risk associated with the recommended grant of easement.

Ordinary Meeting – Tuesday 26 November 2024

Page 1

CL24.381 Report back to Council - Notice of Motion - Tourist Cabins / Farm Stay - Commercial Farm / Primary Production land - Pre lodgement Discussion

HPERM Ref: D24/385908

Approver: Bruce Gibbs, Acting Director - City Development

Attachments: 1. LTL Advice Tourist Cabins (Confidential - under separate cover)

Purpose:

Provide a report back to Council as resolved by Council at its Ordinary Meeting of 12 August 2024 (MIN24.436).

Summary and Key Points for Consideration:

Categorising all tourist accommodation on RU1 and RU2 zoned land as ‘Farm stay accommodation’ will lead to circumstances where Farm stay accommodation may not be the most appropriate land use characterisation for a development proposal. Staff should not be impeded in considering the nature of the proposed development in the first instance and be unfettered in identifying the most appropriate characterisation from that starting point.

Given that staff must characterise use based on the unique attributes of a development proposal, it becomes problematic for Council, by resolution, to direct development assessment staff to characterise land uses in a predetermined way. There would be an increased risk of Council being drawn into appeals that may prove expensive and difficult to defend, if a predetermined process of characterisation is followed. Such a direction may also conflict with aspects of the Local Government Act.

Given that a direction to assessment staff would mean that the starting point may no longer be the development that is proposed and the operational nature of such a direction, the most appropriate approach would be to effect strategic or policy change. Notwithstanding, review of the current land use characterisations and nominate/innominate uses by senior staff has noted that where appropriate, assessments will be undertaken on cabins as farm stay accommodation

Recommendation

That Council:

1. Receive the report and its findings for information; and

2. Consider the matters raised in respect of land use characterisation and controls as part of its work on Stage 2 of the New Land Use Planning Scheme for Shoalhaven, including any required or possible amendments to the Shoalhaven Local Environmental Plan and Shoalhaven Development Control Plan.

Options

1. Maintain existing practice by allowing staff to undertake land use characterisation under merit assessment.

Implications: This may allow some larger tourist accommodation developments on RU1 and RU2 zoned land.

2. Amend the Shoalhaven Local Environmental Plan and Shoalhaven Development Control Plan

Implications: This may limit the density of tourist and visitor accommodation developments in RU1 and RU2 zoned land.

3. Direct staff to characterise all tourist accommodation on RU1 and RU2 zoned land as farm stay accommodation.

Implications: For the reasons set out in this report, it it not recommended that staff are directed to characterise all tourist accommodation as farm stay development.

Background and Supplementary information

At the 12 August 2024 Ordinary Meeting, Council resolved on a Notice of Motion that

Council receive a priority report back that covers:

1. Pre-lodgement discussions for staff to check if the land is a commercial farm (Farmland or used for Primary Production).

a. If the land is a commercial farm, staff advise the applicant that the Agritourism provisions apply, and cabins should be characterised using the LEP term Farm Stay Accommodation.

i. If the applicant ignores this advice, staff are to formally advise the applicant during assessment that cabins will be assessed as farm stay accommodation not the innominate term tourist cabin.

This priority report seeks to consider the motion in three (3) distinct parts:

1. If all cabin accommodation on commercial farms can be characterised as ‘farm stay accommodation;

2. Whether it would be then appropriate for Council, by resolution, to direct development assessment staff to characterise land uses in a particular way; and

3. If the above cannot be achieved, what is the most appropriate mechanism to achieve the outcome desired by the motion?

To assist in the preparation of this report, legal advice was sought form Shaw Reynolds Lawyers and is included with this report as Confidential Attachment 1. The advice has been provided as confidential as the advice may prejudice Council’s legal position in appeals related to cabins, farm stay accommodation or with respect to Agritourism provisions.

The Process of Land Use Characterisation

In dissecting the various components of the motion, it is helpful to start with the matter of characterising tourist accommodation on commercial farms as ‘Farm stay accommodation’ under the Shoalhaven Local Environmental Plan 2014 (the SLEP).

Often, development applications for visitor accommodation in RU1 and RU2 zoned land in the past have been characterised by applicants and staff as ‘Tourist cabins’. The alternative characterisations of Farm stay accommodation and Tourist cabins are considered in turn:

1. Farm stay accommodation is a ‘nominate’ use in the SLEP, that is to say it is specifically referred to in a land use table, under the group definition of ‘tourist and visitor accommodation’ as follows:

Tourist and visitor accommodation means a building or place that provides temporary or short-term accommodation on a commercial basis, and includes any of the following-

(a) backpackers’ accommodation,

(b) bed and breakfast accommodation,

(d) hotel or motel accommodation,

(e) serviced apartments,

but does not include-

(f) camping grounds, or

(g) caravan parks, or

(h) eco-tourist facilities.

Farm stay accommodation means a building or place-

(a) on a commercial farm, and

(b) ancillary to the farm, and

Note- Farm stay accommodation is a type of tourist and visitor accommodation—see the definition of that term in this Dictionary.

The definitions of Farm stay accommodation and the group term of Tourist and visitor accommodation are therefore nominate terms in the SLEP for which development is Permitted with consent.

Section 5.4 of the SLEP provides a specific density control for guests, limiting accommodation to no more than 7 bedrooms in buildings.

2. Tourist cabins could be described as an innominate use because it is not specifically referred to in a land use table in the SLEP. That does not make it a ‘prohibited’ use though as referenced in Botany Bay City Council v Pet Carriers International Pty Limited [2013] NSWLEC 147 “An innominate purpose is one which the environmental planning instrument does not nominate by name as being within one of the three classifications, but rather identifies as falling within a particular classification by reason of it not being nominated in other classifications”. The term is further considered in the development control plan (DCP), being defined in this document as:

‘…. means a freestanding building used to provide short-term self-contained holiday accommodation.’

The DCP further notes that ‘Tourist cabin’ is a type of ‘Tourist and visitor accommodation’ as defined in SLEP 2014. The group term ‘Tourist and visitor accommodation’ is a ‘nominate’ use, meaning that it is Permitted with consent in the RU1 Primary Production and RU2 Rural Landscape zones.

There are specific controls found in the DCP at chapter G15 Tourist and Visitor Accommodation for matters such as density. Acceptable Solution A25.1 provides the number of tourist cabins (from 1-6 or more) against minimum land requirements (2-10 hectares or more). The acceptable solution could lead to relatively large-scale developments; for example, a 20-hectare lot could achieve a yield of 12 cabins, a 30-hectare lot a yield of 18 cabins and so forth. The Performance Criteria requires that density should be of a rural nature and be consistent with the surrounding area, which could lead to variation requests with still larger densities.

Given the generic nature of the land use definition (freestanding building used to provide short-term self-contained holiday accommodation) and the yield which can be achieved, this characterisation is often preferred by applicants and difficult for staff to reject, given the broad inclusions of the definition.

As both the above land uses are permitted with consent in the RU1 and RU2 zones, it then becomes a matter of determining through the assessment process which is the most appropriate characterisation and that will depend on the specific circumstances of each development proposal. In particular:

a. there will be circumstances where cabins at a commercial farm are not “farm stay

accommodation” or a “tourist cabin”.

b. a tourist cabin which is not “farm stay accommodation” could be characterised as “tourist and visitor accommodation”, or another land use category which is nominated under that definition.

c. if such an application was to be before the Land and Environment Court (LEC), it is likely that a tourist cabin would be characterised as one of the nominated land use categories (i.e. such as Tourist and visitor accommodation)

The starting point for staff to characterise a use is therefore a matter of determining whether a proposal is within the purpose of a defined use and, where there are multiple alternatives, whether the unique attributes of a proposal lean towards a use being characterised in a certain way. The advice sets out that, categorising all accommodation cabins on RU1 and RU2 zoned land as ‘Farm stay accommodation’ would not be the correct pathway for staff to follow and notes that it would be contrary to the guidance provided in the LEC case, Botany Bay City Council v Pet Carriers International Pty Limited [2013] NSWLEC 147 at paragraphs [30] to [32}, given the starting point would no longer be the development that is proposed. In essence, there are circumstances where Farm stay accommodation may not be the most appropriate land use characterisation for a development and staff should continue to consider the proposed development in the first instance and then identify the appropriate characterisation.

Notwithstanding the above, another alternative pathway for proponents of visitor accommodation on RU1 and RU2 zoned land could be to consider the Farm stay accommodation development provisions under State Environmental Planning Policy (Exempt and Complying Development Codes) 2008. In this instance proposals for development at a density of 1 building per 5 hectares, up to a maximum cap of 6 buildings could be achieved as complying development and privately certified, avoiding altogether the need for a DA through Council.

Given the significant community interest in this issue, assessment staff will be formally advised of the need to consider whether proposals for visitor accommodation in RU1 and RU2 zoned land can be characterised as Farm stay accommodation during prelodgement discussions with applicants and when undertaking development application assessments. This approach will ensure staff give due consideration to characterising proposed uses as Farm stay accommodation and whether such a characterisation can be reasonably preferred over other alternatives.

Direction to Staff

Given that staff must characterise use based on the unique attributes of a development proposal, it becomes problematic for Council, by resolution, to direct development assessment staff to characterise land uses in a predetermined way. In North Sydney Municipal Council v Boyts Radio & Electrical Pty Ltd, the New South Wales Supreme Court of Appeal said that, when defining an existing use, it is necessary to do a detailed examination of the facts to determine the use. Not following the guidance handed down by the court could lead to potential inconsistencies with the SLEP and relevant planning provisions which offer a nuanced approach to land use characterisation, that may not always align with Farm stay accommodation. The SLEP includes provisions for “agritourism” and other forms of development, and it may be necessary to consider a range of possible land uses depending on the specifics of each case. There would be an increased risk that Council would be drawn into appeals that may prove expensive and difficult to defend, given the process of characterisation followed.

Such a direction may conflict with section 352 of the Local Government Act (LG Act) which provides that Council staff are independent in providing advice and recommendations. This includes matters related to development assessment and any future motions that direct staff on how advice should be framed could raise legal considerations, as this would go beyond the advisory role set out under the LG Act.

The role of the governing Council, as outlined in section 223 of the LG Act, emphasises that Councillors are responsible for setting strategic direction and policy. Any attempt to prescribe the content of staff advice may create tensions with the intended separation of governance and operational responsibilities. This could also conflict with the General Manager’s statutory responsibilities under section 335 of the LG Act, and matters relating to delegation requirements under section 377 and 378 of the LG Act.

Appropriate mechanism

Given that a direction to assessment staff would mean that the starting point for characterisation may no longer be the development that is proposed and the operational nature of such a direction, the most appropriate approach would be to effect strategic or policy change.

Should the Council wish to clarify or modify the relevant planning provisions, a more appropriate approach might be to explore potential amendments to the SLEP and DCP. This approach would provide greater certainty in applying the provisions related to accommodation on land in RU1 and RU2 zones.

Any changes to the SLEP and / or the DCP will require further, careful consideration. This should be assessed and progressed as part of the overall work on Stage 2 of the New Land Use Planning Scheme, including possible amendments to the Shoalhaven Local Environmental Plan and Shoalhaven Development Control Plan.

Internal Consultations

Strategic Planning – Council has committed to work toward a new Land Use Planning Scheme for the City. As a result, any changes to the SLEP and DCP should be considered and progressed as part of this overall review and not as part of a standalone project to amend the SLEP/ DCP. Should Council wish to proceed with a standalone project, then its priority and impact on the overall review should be considered.

External Consultations

None required at this stage

Community Consultations

None required at this stage.

Policy Implications

· Nil policy implications at this stage. Future Policy implications are likely in the event of any changes to the SLEP and/or DCP

Financial Implications

· Financial implications relating to funding appeals in the Land and Environment Court, where staff are directed to characterise developments in a certain way, or where the directed characterisation does not align with the applicants proposed use if it is legitimate.

Risk Implications

· An increased risk that Council would be drawn into appeals that may prove expensive and difficult to defend, given the process of characterisation followed.

· Where staff are directed to characterise developments in a certain way, such a direction may conflict with section 352 of the Local Government Act (LG Act) which provides that Council staff are independent in providing advice and recommendations.

Directorate	Name	Designated Position Start Date	Returned
Councillor	Jason Cox	03/10/2024	02/10/2024
Councillor	Luciano Casmiri	03/10/2024	05/10/2024
Councillor	Ben Krikstolaitis	03/10/2024	10/10/2024