Shellharbour City Mayor Chris Homer reviews the IP&R guide with Albion Park Library visitor Polly. Photo: Shellharbour City Council.
Revenue from the Shell Cove project is keeping Shellharbour City Council in the black, but concerns have been raised about the budget being in deficit once it ends.
At the most recent council meeting, the draft Integrated Planning and Reporting (IP&R) Suite of documents were tabled, which includes the 10-year Community Strategic Plan (CSP), four-year Delivery Program, and 2025-2026 operational plan and budget.
Now on public exhibition, council has simplified the complex and lengthy documents into easy-to-read guides and fact sheets, making it simple for residents to understand and provide feedback that will help shape the future of Shellharbour.
Councillor John Davey praised what he described as a “well crafted, interrelated set of documents defining our pathway for the coming decades”, and thanked the community for their input to date.
He said the CSP provided a 10-year vision setting out the community’s goals for the future of the city, with 845 pieces of feedback between May and October last year contributing to create the draft.
The CSP, in turn, informed the combined four-year delivery program and the annual operating plan 25-26, along with the budget.
While the draft budget revealed an operating surplus of $28.7 million, without the Shell Cove project profit council was anticipating a standalone operating performance deficit of $7.4 million.
“We forecast an operating surplus over the next five years due to the Shell Cove project dividends,” Cr Davey said.
“Following the conclusion of that project, we forecast an annual operating deficit between $6 million and $8 million per annum for each of the remaining five years.
“We mustn’t allow that deficit to increase as we manage competing demands upon finite resources and risk undermining our commitment to financial sustainability.”
Cr Kellie Marsh agreed it was going to be tough for council over the next few years.
“There’s no doubt about that, but I’m very proud that we’re still delivering a lot of infrastructure,” Cr Marsh said.
She said there was also a lot more to come.
“We’ve got Tripoli Way Bypass as well, which is our biggest ticket item that will be going ahead,” she said.
“Just in the current 24-25 year, we’ve seen approximately $86 million of assets being contributed to council from the Shell Cove project alone.
“Obviously, it has a depreciation increase on that of $1.2 million, but we do still have a lot that we’re doing in this space as well.”
Cr Rob Petreski said while the Shell Cove surplus and focus on long term financial sustainability were positive, the risk was the standalone deficit without Shell Cove.
“Shell Cove is doing its job – that’s what it was there for – but we have to look at that going forward,” he said.
“After the Shell Cove project has completed and run its course, we’re then forecasting deficits from then on.
“We need to make sure we keep a handle on that and live within our means.”
He said the high annual depreciation costs put a lot of pressure on the renewal ratio.
“The risk is that if we do not keep up with the renewals, it will come back to bite us further down the track,” he said.
“It was earlier this year that we passed a motion for the Shell Cove dividend to be used to make sure that council is financially sustainable and to make sure we have some kind of means to protect that asset and make sure that that is a gift and not a burden.”
He said there was a lot for the community to go through within the documents, but a key highlight was the capital works program, with more than 125 projects across parks, roads, drainage and buildings.
“It’s all the things that sometimes aren’t the things that make the headlines, but they’re the things that really matter to people,” he said.
Mayor Chris Homer echoed the sentiments of others, and said challenges in regards to renewal ratios and accounting mechanisms were putting pressure on many councils.
“It’s vital that we continue the feedback process with these important strategic document drafts to ensure the community’s interests are truly represented,” Cr Homer said.
“I’m urging the community to review the IP&R plans, to have their say and share their opinions on the future of Shellharbour.”
Councillors unanimously endorsed the suite of documents for public exhibition.
The IP&R Suite is on public exhibition at Shellharbour City Libraries until 27 May. Feedback submissions can be made on the Let’s Chat page, by emailing [email protected] or sending a written submission to Chief Executive Officer, Dharawal Country, Locked Bag 155, Shellharbour City Centre, NSW 2529.
