FAQs - Operational Plan and Budget
- The Operational Plan sets out our plans to:
- Undertake $39.1m worth of projects and capital works.
- Provide ongoing, high quality services with an operating budget of $139.5m.
- Undertake a range of business improvements and service reviews.
- Report to you regularly on progress and performance.
- Implement a preferred budget, assuming approval of a Special Rate Variation (SRV) in May:
- creates a surplus of $3.4m (before capital grants and contributions).
- an efficiency target of $2m for Council to achieve; and extra $2m spending to enhance maintenance of streetscapes, parks, ovals and our urban tree canopy.
- General rates increase by 15%, comprised of 10% SRV and 5% rates peg.
- Domestic waste charge increases by 3.5% and most other fees and charges increase by 4% to keep pace with inflation and other impacts on Council’s costs.
$7.5m for the Willoughby Leisure Centre upgrade
$2.25m to start construction of affordable housing units in Abbott Road Artarmon
$2.29m to complete a shared path on the Pacific Highway from Chatswood to St Leonards
$1.5m to start a shared path on the Pacific Highway from Mowbray Road to Boundary Road
$1.0m for the final phase of CONNECT, Council’s new corporate system
$700,00 for streetscape and traffic works at Edward and Penshurst Streets, Willoughby
$509,000 for construction of the Artarmon Parklands Pavilion upgrade
$500,000 for concept planning siting of the Gore Hill indoor sports complex
Increased waste management volumes resulting from more residents working from home
High inflation levels
The need to fund the up-front investment and ongoing incremental costs associated with adoption of the State Government’s Waste and Sustainable Materials (WaSM) Strategy which includes mandating the separation of food and garden organics for households and selected businesses. This item alone forecasts a 35% increase from 2029 to 2030 which is the target date for the introduction food and garden collection including 10% rise in collection cost plus anticipated rise in the processing cost.
What is the Operational Plan?
The Operational Plan details the services and projects we will provide in the upcoming financial year and how we will fund them. It includes our ongoing services, a range of projects and capital works, business improvements and how we measure our progress. The Budget section outlines the annual budget, and the Revenue policy including rates, fees and charges.
The plan is guided by the outcomes in our long-term Community Strategic Plan, Our Future Willoughby 2032 https://www.willoughby.nsw.gov.au/Community/Planning-for-our-Future/Our-Future-Willoughby-2032 . It also links directly to our four-year Delivery Program 2022-2026 https://www.willoughby.nsw.gov.au/Council/Policies-and-publications/Publications/Delivery-Program-z-2022-2026
Why do we need this document?
The Local Government Act requires councils to develop an Integrated Planning and Reporting Framework. This includes an annual Operational Plan, setting out what we will do over the coming year and how we will fund it. It is required to be adopted by the Council by the end of June, so the plan’s budget is in force from 1 July.
What are some quick facts about the Operational Plan 2024/25?
The Operational Plan sets out our plans to:
What are the major capital works projects proposed in 2024/25?
The plan proposes $39.1 million in funding for projects and capital works to protect our environment, increase green spaces, enhance recreational facilities, create vibrant local centres and foster connected and liveable communities. The major projects include:
Other highlighted projects include festivals and the Culture Bites series; upgrading buildings for lighting, air conditioning and facilities; renewal of amenities, ovals and playgrounds; a new cycle path; better pedestrian safety; stormwater works; and improved accessibility at 30 bus stops. A full list of all proposed projects and capital works are listed in Section 5 of the Plan.
By how much will rates increase in 2024/25?
Total revenue raised from the levying of land rates continues to be capped by the NSW Government, through the Independent Pricing and Regulatory Tribunal (IPART).
On 5 February 2024, Willoughby City Council applied for a 15% rate increase, which is proposed to commence in 2024/25. This increase includes the NSW Government’s 5% rate peg announced in November 2023, and a 10% Special rate variation (SRV). IPART is expected to make a decision on this application in May 2024, after considering community submissions.
If the SRV application is approved by IPART, the 2024/25 rate increase will be 15%. IPART has the discretion to fully approve the 15% proposal, decide on a lower Special Rate Variation, or reject the SRV application altogether. If IPART rejects Council’s SRV application, the 2024/25 rate increase will be 5% based on allowable rate peg set by IPART.
It should be noted that eligible pensioners receive a statutory reduction of 50% of the combined rates and domestic waste management charge to a maximum of $250.
Pensioners and qualifying self-funded retirees also receive a $164 reduction in the domestic waste management charge.
Given the Council’s preferred budget will increase overall rates revenue by 15%, how much will my own rates increase or change?
In general, if the Independent Pricing and Regulatory Tribunal (IPART) approve a 15% increase in rates in 2024/25, the rates for each property will increase by close to, or exactly 15%.
Some 56% of all Willoughby’s residential ratepayers pay a standard minimum rate amount, as their property values are lower relative to all properties within the LGA. For residential property owners, the minimum rate amount will increase by $132.15 from $881.20 to $1,013.35 (excluding the Domestic Waste Management Charge).
In addition, eligible pensioners will continue to receive a discount of $250 off their rates bill.
For more information on Willoughby rating in 2024/25, see https:// www.willoughby.nsw.gov.au/Council/News-and-media/WCC-Rates-Factsheet
What is the Council’s proposed operating result in 2024/25 and what is underpinning this outcome?
In the preferred budget, Council is budgeting for a 2024/25 Operating Surplus of $3.4m (before capital grants and contributions). This is dependant on IPART’s approval of a 15% rate rise. The alternative non-preferred (no-SRV) budget of a 5% rate rise will result in an Operating Deficit of $1.5m. IPART’s decision on the rate rise is expected in May 2024.
By how much will general fees and charges increase in 2024/25?
The Council has a wide range of fees and charges for services it provides to the community. These fees will generally increase by 4% in 2024/25. Some fees will not rise by this amount, as they are set by law or our benchmarking indicates that a 4% increase isn’t appropriate.
How much will the Domestic Waste Management Charge increase in 2024/25?
A 3.5% increase in the Domestic Waste Management Charge will result in the Domestic Waste Management Charge rising from $618 to $640 in 2024/25. This is required due to:
It should be noted that eligible pensioners receive a statutory reduction of 50% of the combined rates and domestic waste management charge to a maximum of $250. Pensioners and qualifying self-funded retirees also receive a $164 reduction in the Domestic Waste Management Charge.