A review of Shoalhaven Family Day Care has identified that the service could be provided independently of Council and yield around $90,000 per year in cost savings.
Last year, Council evaluated the operation as one of its many service reviews being conducted as part of the financial sustainability project.
The focus of the service review was to explore options to reduce the service's annual operating deficit, which was $96,000 in the 2023-24 financial year.
"Our financial position requires that we comprehensively examine all Council services through a lense of reducing our substantial operating deficit over time," said acting CEO James Ruprai.
"While any change to a service such as Shoalhaven Family Day Care can be challenging, through the comprehensive review process we have identified an option to work with other providers of Family Day Care, to transition Educators and families to their services.
"Reduced government funding opportunities over the past 5 years has significantly impacted on the ability to operate this service without suffering a financial loss to Council," he said.
A report going to the Council meeting on Tuesday 18 February outlines that while the service is the largest provider in the Shoalhaven, there have been challenges recruiting the educators required to be cost-neutral.
During the last five years, the service has gone from making a profit in 2019-20, to returning a loss each year of between $68,000 to $96,000.
Under the report's recommendation to Council, impacted educators would be supported to transition to other providers.
The recent service review considered strategies to grow income through increasing educators, mechanisms to reduce annual operating costs, through reducing Council staff supporting the service and consideration of alternative delivery models for the provision of family day care coordination across the Shoalhaven.
