Council will next week consider the draft 2024-25 budget that provides for $472.6 million of capital works and essential community services as outlined in the draft Delivery Program and Operational Plan.
The report to Council identifies that prudent financial management and fiscal discipline has been applied to develop a balanced budget that includes an affordable list of capital works and infrastructure renewal projects.
"This proposed budget intends to take some of the significant steps necessary to address financial sustainability of the services and infrastructure council provides and reduce the gap between operating expenditure and revenue which is a challenge for us and so many other councils across the country," said CEO Robyn Stevens.
The draft budget allocates $111.4 million to capital expenditure that includes $38.95 million for roads, bridges and transport, $12.4 million for buildings and property and $10 million for waste and recycling separation and education facilities. More than $1.6 million is allocated to waterways infrastructure and $1.3 million to open space, sport and recreation facility infrastructure.
Shoalhaven Water has assigned $34.6 million for capital works to a range of projects, including $5.6 million for the South Nowra Surcharge Main project, $4.3 million to replace water mains and $2.1 million to upgrade the sewer pumping station for Huskisson and Vincentia.
"During the last six months, we have paused more than 80 capital works projects and funding of programs to reduce the forecast structural deficit identified in the independent Financial Sustainability Report. We have been driving efficiency measures to reduce expenditure by reviewing internal processes and assessing vacant positions for potential savings," Ms Stevens said.
"This budget reinforces the fact that there is not enough money to address the backlog of maintenance needed for our roads and buildings without a sustained increase to revenue. The condition of our cities assets will continue to degrade and cost even more to repair or replace in the future if we don't increase income soon," she said.
"Adjusting our accounting methodology to build a budget from the bottom-up by ignoring historic budgets provides a realistic account that is reflective of the cost to deliver our current services at the current agreed service level.
"Council has had a focus on meeting the ever changing demands and needs of a growing community, and without an increase to rates in the near future, will not meet these demands. The draft budget presented to Council, is minimal but responsible in the current financial circumstances," she said.
The draft budget includes a 4.5% rate peg increase as well as a 7.9% increase to the domestic waste charge, from $468 (2023-24) to $505 (2024-25) for a 120L bin.
Council has reviewed its fees and charges to better reflect the cost price for the provision of services and utilities. While many have remained the same, some fees and charges have been increased to cover costs. The review of fees and charges is in line with the independent advice council received in November 2023 when it undertook the Financial Sustainability Review.
Some of the changes include increases to hall hire fees, aquatics centre and recreation facility charges and some administrative fees.
Shoalhaven Water has reviewed its fees to meet the costs of providing water and sewer services and has proposed increasing water charges from $2 per kL to $2.50 per kL and sewer charges by an additional $72 per year. The projected cost for the average residential water customer would be an additional $206.50 per year.
The business paper outlining the draft Delivery Program and Operational Plan report is available on Council's website for the Council meeting to be held on 6 May 2024.
