Agenda of Northern Beaches Council Meeting

Recipient	Description	Allocation
Local Resident *	Financial assistance towards attending the Barnes Kid Lit Festival as an Australian author to make a presentation	$500
Local Resident*	Financial assistance to represent NSW at the Junior Nationals Wheelchair Basketball competition	$250
Local Resident*	Financial assistance to represent Australia at the World’s Floorball Championships in the U19 Men’s team	$500
Local Resident*	Financial assistance to represent NSW at the Australian Youth Beach Volleyball Championships in the U17 team	$250
Local Resident*	Financial assistance to represent Australia at the 2026 Winter Paralympic Games in cross country and biathlon (sit/ski category)	$500
Local Resident*	Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Men’s Division team	$500
Local Resident*	Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Men’s Division team	$500
Local Resident*	Financial assistance to represent Australia at the World Dragon Boat Championships – Senior B Women’s Division team	$500
Local Resident*	Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Women’s Division team	$500

Recipient

Description

Allocation

Supported by Councillor **

Local Resident *

Financial assistance towards attending the Barnes Kid Lit Festival as an Australian author to make a presentation

$500

Local Resident*

Financial assistance to represent NSW at the Junior Nationals Wheelchair Basketball competition

$250

Local Resident*

Financial assistance to represent Australia at the World’s Floorball Championships in the U19 Men’s team

$500

Local Resident*

Financial assistance to represent NSW at the Australian Youth Beach Volleyball Championships in the U17 team

$250

Local Resident*

Financial assistance to represent Australia at the 2026 Winter Paralympic Games in cross country and biathlon (sit/ski category)

$500

Local Resident*

Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Men’s Division team

$500

Local Resident*

Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Men’s Division team

$500

Local Resident*

Financial assistance to represent Australia at the World Dragon Boat Championships – Senior B Women’s Division team

$500

Local Resident*

Financial assistance to represent Australia at the World Dragon Boat Championships – Senior C Women’s Division team

$500

Item 9.1 Northern Beaches Council MEETING - 17 June 2025

9.0 Corporate Services Division Reports

ITEM 9.1

Outcome of the public exhibition of the draft Community Strategic Plan 2040, Delivery Program 2025-2029, Operational Plan 2025/26 and Resourcing Strategy and the Special Variation determination

Purpose

The purpose of this report is to consider the Independent Pricing and Regulatory Tribunal’s (IPART) determination on the application for a Special Variation of rates; submissions on the public exhibition of the draft Community Strategic Plan, Delivery Program, Operational Plan (including Fees and Charges), Long-Term Financial Plan, Workforce Management Strategy and Asset Management Policy, Strategy and Plans; and seek adoption of the revised documents.

Executive Summary

· The draft documents were exhibited from 17 April to 25 May 2025 through a range of engagement activities with a total of 219 individuals and groups making submissions, raising some 213 unique issues.

· Amendments have been made in response to the submissions as well as new and updated information being available since the draft documents were placed on exhibition.

· IPART has approved the first 2 years of Council’s 3 year proposal for a Special Variation to rates, allowing a permanent rates increase of 12.1% in 2025/26 and 11.7% in 2026/27. The revised Budget in the report and attachments is based on this approved additional income and associated expenditure program.

· The proposed 2025/26 rates notice for a typical residential property will increase by $45 per quarter (9%), of which $3 relates to the Domestic Waste charge, $13 to the rate peg and $29 to the Special Variation program.

· The 2025/26 budget proposes expenditure of $550 million (including a capital works program of $105 million), $2 million in savings and that a further $2.4 million in loans will be repaid. The budget has been boosted by an additional $16 million from the proposed Special Variation to fund:

- $8 million for improvements to roads, footpaths and stormwater infrastructure

- $5 million to improve facilities, rockpools, playgrounds and grass mowing schedules

- $3 million to expand tree maintenance and planting, compliance services, environmental and natural risk reduction programs and natural disaster funding

· The operating surplus before capital grants and contributions has reduced from the $3.9 million exhibited in the draft budget to a surplus of $2.1 million, primarily due to a $1.5 million increase in the Special Variation funded infrastructure maintenance program. Key financial and asset performance benchmarks are expected to meet industry benchmarks.

· Without the Special Variation, the Asset Management Plan requires an additional $15.1 million per year to maintain and renew existing assets, along with $10.4 million per year to uplift service levels and provide high priority new assets required by the community.

· The Long-Term Financial Plan highlights that, with the 2-year Special Variation, income levels are sufficient to maintain services, fund the Asset Management Plans, and withstand unforeseen circumstances, however alternative funding would be required to deliver some larger infrastructure renewal projects like a rebuild of the Warringah Aquatic Centre.

RECOMMENDATION

That Council:

1. Note that it has considered the submissions received and the Community and Stakeholder Engagement Report at Attachment 1.

2. Note the changes to the documents following exhibition at Attachment 2.

3. Endorse the revised Community Strategic Plan 2040 at Attachment 3.

4. Adopt the Delivery Program 2025-2029 and Operational Plan 2025/26 at Attachment 4.

5. Adopt the Fees and Charges 2025/26 and Pricing Methodology applying from 1 July 2025 at Attachment 5 as the fees in accordance with Part 10 of Chapter 15 of the Local Government Act 1993 (the Act).

6. Adopt the Long-Term Financial Plan 2025-2035 at Attachment 6.

7. Adopt the Asset Management Strategy 2025-2035 at Attachment 7.

8. Adopt the Asset Management Plan 2025-2035 at Attachment 8.

9. Endorse the Workforce Management Strategy 2025-2029 at Attachment 9

10. Make the following rates and charges:

a. In accordance with sections 494 and 495 of the Act and the IPART ‘Instrument Under Section 508A of the Local Government Act 1993’ dated 14 May 2025 at Attachment 10, Ordinary and Special Rates are made as shown in Table 4 in the report for this Item.

b. In accordance with section 496 of the Act, Domestic Waste Management Charges are made as shown in Table 5 in the report for this Item.

c. In accordance with section 496A of the Act, Stormwater Management Service Charges are made as shown in Table 6 in the report for this Item.

d. In accordance with section 67 of the Act, the fee for works on private land carried out by Council is set at the appropriate commercial rate (being cost of the works and standard on-costs, to provide full cost recovery plus a return to Council).

e. In accordance with section 611 of the Act, a charge on the person for the time being in possession, occupation or enjoyment of a rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place.

11. Adopt an interest rate of 10.5% on overdue rates and charges, in accordance with section 566(3) of the Act.

Background

Like many councils in NSW, Council is facing growing pressure to its financial sustainability as increases in income, under the NSW rate peg system, have not reflected the rising costs of materials, contracts and construction, with Sydney’s inflation over the 4 years to 30 June 2024 being almost double the increase in rates income.

At its meeting on the 28 January 2025, Council considered a report on the public exhibition of options for a Special Variation to rates and resolved in part as follows:

9. Apply to IPART for a permanent increase in rates income for the period from 2025/26 to 2027/28 (inclusive) of 39.6% (Option 3 ‘Improve Services’) under section 508A of the Local Government Act 1993, consisting of annual increases as set out below:

a. Year 2025/26 – 12.1% increase (8.3% + rate peg of 3.8%)

b. Year 2026/27 – 11.7% increase (8.3% + assumed rate peg of 3.4%)

c. Year 2027/28 – 11.5% increase (8.4% + assumed rate peg of 3.1%)

The application was submitted to IPART in February 2025.

At the same time updates to documents comprising Council’s Integrated Planning and Reporting Frameworks (IP&R) were being prepared for exhibition (draft Community Strategic Plan 2040, Resourcing Strategy 2025-2035, Delivery Program 2025-2029, Operational Plan and Budget 2025/26). The additional income and expenditure proposed in the 3-year Special Variation application was reflected in the draft 2025/26 budget, and the draft Long-Term Financial Plan presented an alternative scenario to illustrate the financial outcome if the Special Variation did not proceed and rates only increased by the rate peg. At its meeting on 15 April 2025 (and prior to IPART’s decision on Council’s Special Variation application), Council considered a report on the public exhibition of the IP&R documents and resolved:

That:

1. The final paragraph on page 46 of the Draft Community Strategic Plan 2040 (CSP) be amended to: Update the CSP to establish that Council will be setting clearer community emissions goals to align with the financial risks and targets set by state and federal governments.

2. The Improvement Plan within the draft Delivery Program 2025-2029 is amended to reinstate the Frenchs Forest New Year’s Fireworks event, with a budget allocation of $31,160, and the 2025/26 budget presented to Council for adoption in June 2025 incorporates this event.

3. The draft Community Strategic Plan 2040, Delivery Program 2025-2029, Operational Plan 2025/26 (including Fees and Charges and Pricing Methodology), Workforce Management Strategy 2025-2029, Long-Term Financial Plan 2025-2035 and Asset Management Policy, Strategy and Plans 2025-2035 be placed on public exhibition for a minimum of 28 days with the outcome reported to Council.

In accordance with items (1) and (2) above, the draft CSP and Delivery Program 2025-2029 were amended prior to the commencement of the exhibition. The reinstatement of the budget for the Frenchs Forest New Year’s Fireworks event at item (2) is part of the budget papers in this report.

This report outlines the decision of IPART on Council’s application for a Special Variation to rates, the community response to the public exhibition of the IP&R documents and provides further detail and explanation including recommended changes.

Consultation

The exhibition was open for 38 days from Thursday 17 April to Sunday 25 May 2025. Separate project pages were established for the CSP, Delivery Program and Resourcing Strategy on Council’s YourSay community engagement platform hosted the exhibition.

The exhibition was promoted via:

· Seven electronic direct mails (EDMs) with over 205,283 readers (Community Engagement newsletter and Council e-News).

· 14 Facebook posts with 247,820 reach.

· One Council media release

· Five community pop up/information sessions, with 233 conversations with members of the community.

· Two resident association meetings (Manly Ward Executive, Pittwater Community Alliance) and one Youth Action Group meeting – 28 attendees.

· Over 5,017 visits to the online engagement pages.

In addition, material was available online making it easier for the community to see what was happening in their local area via 12 local snapshots covering the Northern Beaches. Fact sheets were also provided on footpaths and road re-sheeting programs, recreation programs, ‘your dollars at work’ and the Special Variation to rates.

A total of 219 individuals and groups made submissions, comprised of:

· 179 online submissions using YourSay Northern Beaches engagement platform.

· 40 emails/letters direct to Council.

This was a 59% increase in submissions from the prior year.

Each separate YourSay community engagement page had their own online submission form. All submissions were analysed to establish key themes, unique issues and frequency of time raised. An overview of the submissions is below with further detail in the Community Engagement and Stakeholder report at Attachment 1.

Community Strategic Plan 2040 (Stage 2 Engagement) – submissions

There was a total of 26 submissions on the Community Strategic Plan (CSP) raising 35 unique issues. Below are the themes with 5 or more submissions and unique issues under each.

Theme	No. people	No. unique issues
Overall document	13	4
Safe and efficient transport	11	8
Protection of the environment	8	6
Housing, places and spaces	7	6
Community and belonging	5	5

The majority of unique issues only had a single submission and reflected specific areas of interest/concern of the individual. Unique issues raised most frequently included support for the revised CSP (5 submissions). This was balanced with feedback that the pitch of the document was too aspirational, lacked detail and extended beyond Council functions (6 submissions).

Council’s approach to the development of the CSP is guided by legislation and guidelines issued by The Office of Local Government (Integrated Planning & Reporting Guidelines for Local Government in NSW September 2021). They require councils to prepare the plan on behalf of their community and acknowledge that the aspirations in the Plan may extend beyond the responsibility of council. This is reflected in Northern Beaches’ draft CSP with goals and strategies on transport, housing, etc. requiring collaboration with other stakeholders to deliver the outcomes our community desire.

Changes to the plan are recommended in response to feedback. This includes adjusting the desired trend for the measure for unemployment (unemployment rate) from decrease to maintain. The desired trend is the preferred direction for the measure to move and Northern Beaches’ unemployment rate is low. Additional wording is also proposed to be included in the Safe and Efficient Transport outcome to recognise carbon emissions generated by car travel as well as a minor wording changes to adjust the aspirational target to “30% reduction in total trips by car” to align with the commitment in Council’s Transport Strategy.

Many of the unique issues were seeking further detail in the CSP. These issues are covered at a strategic level in the revised CSP as well as in other Council’s strategies and action plans. The key Council strategies were added under each outcome in the revised CSP in response to feedback on the Stage 1 engagement. This provides clarity on how Council will support community aspirations, and the specific initiatives planned to achieve the CSP’s goals.

More information on submissions and Council’s response is at Attachment 1. Changes made to the CSP is at Attachment 2.

Resourcing Strategy: Long-Term Financial Plan 2025-2035, Asset Management Policy, Strategy and Plan 2025-2035 and the Workforce Management Strategy 2025-2029 – submissions

There was a total of 6 submissions on the Resourcing Strategy (Long-Term Financial Plan, Workforce Management Strategy and Asset Management Policy, Strategy and Plan) raising 23 unique issues. Below are the themes and unique issues under each.

Theme	No. People	No. unique Issues
Long-Term Financial Plan	4	13
Workforce Management Strategy	5	7
Asset Management Strategy & Policy	1	1
Asset Management Plan	2	2

One submission expressed support for all 4 documents. The overall messaging across themes from the remaining submissions was the need for greater cost containment in expenditure on projects, assets, services and employees as well as improved performance. Two unique issues were commented on by two submissions while all other unique issues were commented on by a single submission.

A change to the Workforce Management Strategy is recommended in response to submissions on the need for regular workforce reviews. The initiative on workforce reviews under the Organisational Capability and Development Theme is proposed to be strengthened by referencing Council’s service review program.

The Service Review Program supports continuous improvement across Council operations to identify more economical ways of providing services to meet community expectations now and into the future. Reviews include an assessment of current performance, stakeholder input and preferred operating models (staffing levels, insourcing v outsourcing etc.). All 60 services will be reviewed with 5 scheduled in the Operational Plan for 2025/26. Efficiencies through this program will contribute to the achievement of Council’s savings target.

More information on submissions and Council’s response is at Attachment 1. A summary of the changes to the Long-Term Financial Plan, Asset Management Plan and the Workforce Management Strategy is at Attachment 2. Changes are not proposed to the Asset Management Policy and Strategy.

Delivery Program 2025-2029, Operational Plan 2025/26 and Fees and Charges 2025/26 - submissions

There was a total of 187 submissions on the Delivery Program, Operational Plan and Fees and Charges raising 155 issues. Below are the themes with 5 or more submissions and unique issues under each.

Theme	No. people	No. unique issues
Fees and charges	69	40
Roads and transport including wharves	32	15
Community buildings	31	4
Reduce expenditure	26	15
Rate increase	17	4
Increase service levels	8	11
Active travel	8	10
Other	7	5
Parks and open spaces	6	7
Foreshores	5	6
Stormwater and flood mitigation	5	5

Twelve submissions opposed the rate increase (explicitly referenced in the submission), two were in support of the increase and one requested Council defer taking up the Special Variation of rates until inflationary pressures ease. Other submissions did not specifically reference the rate increase but called for strengthening of the efficiency and improvement program and an increased focus on cost containment. This included unique issues relating to reducing employee costs (13 submissions), focus on core services (9 submissions), or nominating specific programs or projects that could be scaled back/removed.

Fees and Charges received the most submissions. The fees for the Kindergarten room at North Narrabeen Community and Tennis Centre received 43 and Manly Vale Community Centre received 8 submissions. There were 10 submissions also opposing childcare fee increases. Changes are recommended to the fees for North Narrabeen Community and Tennis Centre to address errors in the hire fee for the Kindergarten and the tennis courts.

There was also strong support to bring forward works to replace the Jamieson Park Sailing Club which was destroyed by fire (28 submissions). A change to the works program is recommended in the report with design and approvals in 2025/26 and construction in 2026/27. The works are proposed to be partially funded by the Special Variation to rates.

Submissions also requested improvements to infrastructure and levels of service associated with roads, maintenance of open space and ranger services. The Special Variation program will, if approved, allow additional funding to be directed to:

· Improving the condition of roads via additional road resheeting, patch repairs and preventative crack sealing

· Improving the appearance of open space with increased maintenance of open space assets as well as increasing the mowing program at over 800 sites (increase from 10 to 11 cuts per year)

· Increasing compliance service including rangers

More information on submissions and Council’s response is at Attachment 1. A summary of the changes made to the Delivery Program 2025-2029, Operational Plan 2025/26 and Fees and Charges 2025/26 is at Attachment 2.

Special Variation TO Rates – Application

IPART’s determination

Council applied to IPART in February 2025 for a Special Variation to rates in response to growing pressure on financial sustainability as increases in income, under the NSW rate peg system, have not reflected the rising costs of materials, contracts, and construction, with Sydney’s inflation over the 4 years to 30 June 2024 being almost double the increase in rates income. The application to IPART was for:

· Year 2025/26 – 12.1% increase (8.3% + rate peg of 3.8%)

· Year 2026/27 – 11.7% increase (8.3% + assumed rate peg of 3.4%)

· Year 2027/28 – 11.5% increase (8.4% + assumed rate peg of 3.1%)

The increased funds would enable Council to:

· Secure long term financial sustainability

· Address the backlog in infrastructure and maintenance

· Expand environmental and natural risk reduction programs and increase capacity to manage natural disasters

· Enable the capacity for larger capital works items

IPART announced its determination on Council’s application on the 16 May 2025. IPART approved the first two years of Council’s three-year proposal – giving permission for an increase of 12.1% in 2025/26 and 11.7% in 2026/27 (including the rate peg). IPART’s assessment of the application against the Office of Local Government criteria is below with the full report available on IPART’s website.

The report recommends that Council adopts the 12.1% 2025/26 rate increase based on the maximum permitted increase (inclusive of the Special Variation) as approved by IPART. This will enable Council, in accordance with the IPART instrument (Attachment 10) to fully fund the infrastructure and maintenance backlog, expand environmental and natural risk reduction programs, provide capacity to manage an increasing number of natural disasters and secure Council’s long term financial sustainability.

Deferring the commencement of the Special Variation to a later year is not supported. This will result in the programs being delayed and a loss of income which Council will not be able to recover in future years to support critical asset maintenance.

While it is acknowledged that there are some community members concerned about the affordability of the rate rise, given current cost of living pressures; IPART assessed Council's application, including an independent assessment of ratepayer’s capacity to pay, and found that the impact of the proposed SV on ratepayers is generally reasonable. Further, the Council has a hardship policy in place to support ratepayers experiencing financial stress along with concessions for eligible pensioners.

Special Variation Program - proposed changes

IPART’s decision to partially approve Council’s application and not allow the Special Variation in the third year (2027/28) requires the program exhibited in the draft Delivery Program and Operational Plan to be adjusted.

The initial program allowed for an uplift in maintenance programs phased in over 3 years and set aside funds to support the delivery of major projects in future years. The approved rate path means the special variation program is now primarily focused on maintenance and renewal. The program in the Delivery Program and Operational Plan has been rephased to remove $21m per year ($181m over the 10 years of the LTFP) of expenditure based on:

· Removing major projects proposed under option 3 such as Warringah Aquatic Centre and major works on Surf Life Savings Clubs which will likely not proceed without significant external funding or a separate IPART application.

· Reducing programs that went beyond the maintenance and upkeep of our existing asset portfolio under Option 2, including:

- Removal of upgrade projects such as water quality improvement devices (Clearwaters Program), Lagoon Park playground upgrade, Aquatic Reserve lighting upgrade, all-weather sportsfields, bike plan and smart parking infrastructure.

- Reducing the spend in programs for place plans and female friendly sports facilities in outer years.

· Maintenance programs fast tracked to achieve the Maintenance Renewal Ratio in 2025/26 by fully funding maintenance of roads and other maintenance programs fully funded in 2026/27.

· Bringing forward capital renewal projects where possible to 2025/26 or 2026/27.

These changes are outlined in the next section. The full revised Special Variation program is available in the Delivery Program from page 130 (Attachment 4).

Proposed changes to the Budget 2025/26

The 2025/26 Budget remains balanced, however the operating result has changed due to amendments to the Special Variation program, rollovers from the 2024/25 budget approved through the March Quarterly Budget Review and new information available since the draft documents were placed on exhibition.

The following table summarises the movement from the draft to the revised 2025/26 Budget.

Table 1: Movement in the draft 2025/26 budget - Income Statement and Capital Expenditure

	2025/26 Draft Budget April 2025 $'mil	2025/26 Revised Budget June 2025 $'mil	Change Incr / (Decr) $'mil



Income from continuing operations
Rates and annual charges	285.3	285.3	-
User charges and fees	104.6	104.4	(0.2)
Other revenues	21.3	21.3	-
Grants and contributions - operating purposes	21.0	20.7	(0.3)
Grants and contributions - capital purposes	24.3	31.2	6.9
Interest and investment revenue	8.2	8.2	-
Other income	7.1	7.1	-
Net gain from the disposal of assets	0.5	0.5	-
Total income from continuing operations	*472.3*	478.7	6.4

Expenses from continuing operations
Employee benefits and on-costs	178.5	178.3	(0.2)
Materials and services	185.4	187.1	1.7
Borrowing costs	3.0	3.0	-
Depreciation and amortisation	54.6	54.6	-
Other expenses	22.5	22.3	(0.2)
Total expenses from continuing operations	*444.1*	445.3	1.3

Operating result - Surplus / (Deficit)	*28.3*	33.4	5.1

Operating result - Surplus / (Deficit) before Capital Grants and Contributions	*3.9*	2.1	(1.8)

Capital expenditure	*96.2*	105.0	8.8

Operating Budget 2025/26 - changes

There has been a reduction in the operating surplus (excluding capital grants and contributions) from $3.9 million exhibited in the draft budget to $2.1 million, as outlined below in Table 2.

Table 2: Summary of proposed movement in operating budget result (excluding capital grants and contributions)

	Net	Income	Expenditure
	$’mil	$’mil	$’mil
Draft operating result before capital grants and contributions	3.924	447.985	(444.060)
Emergency services levy contribution¹	0.203	-	0.203
Grant funded project (grant received in 2024/25) - South Creek Rehabilitation - Urban Rivers and Catchments Program	(0.312)	-	(0.312)
Meals on Wheels - transferred to new provider - net result relates to internal charges	(0.043)	(0.509)	0.466
Special Variation program - increased maintenance on roads assets ($1.2m), stormwater infrastructure ($0.2m) and wharves ($0.2m)	(1.599)	-	(1.599)
Minor amendments	(0.031)	-	(0.031)

Changes to budget	(1.781)	(0.509)	(1.272)
Revised operating result before capital grants and contributions	2.143	447.476	(445.333)

1. NSW Emergency Services Levy Contribution: NSW Revenue have recently advised the Council’s Emergency Services Levy (ESL) for the 2025/26 financial year will be $9.4 million (6.2% increase), which is $0.2 million lower than forecast.

Capital Expenditure Budget 2025/26 - changes

The 2025/26 capital expenditure program has increased from $96.2 million to $105.0 million due to budget rollovers approved in the March quarterly budget review ($13.6m), projects rephased across financial years to align with revised timelines (-$8.6m), new grants ($0.8m) and an increase in the Special Variation funded program ($3.0m).

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Table 3 below identifies proposed changes to the capital works program.

Table 3. Proposed changes – Capital Works Program – Increases / (Decreases)

Overview of the Revised Budget 2025/26

Draft Budget 2025/26

The 2025/26 draft budget projects total expenditure of $550 million, including a capital works program of $105 million. The proposed $105 million capital works program includes $61 million in asset renewal to improve the overall condition of our assets and to reduce ongoing operational costs associated with asset repair and maintenance. A further $44 million will deliver high priority new assets to the community.

The budget forecasts an Operating Surplus before Capital Grants and Contributions of $2.1 million, which includes a $14 million investment in replacing Council’s core operating systems. A further $2.4 million in loans will be repaid.

Efficiency savings

Council is committed to realising productivity savings in its operations to reduce the burden on rates. A Productivity Journey and Improvement Plan, presented on 28 January 2025, outlines goals to achieve ongoing operational savings of $5 million over the next 3 years along with one-off capital savings totalling $10 million over the next 5 years.

The 2025/26 budget has built in savings of $2 million by adjusting the levels of service for the Hop Skip and Jump Bus service, closing Vacation Care, revising the events program including reducing the number of outdoor cinemas and markets, removing the NSW Surf Life Saving Championships financial subsidy and a number of efficiency improvements.

The budget also proposes Council increasing the community-led event grants program by $86k to a total of $189k for the year.

Service reviews are a key part of the plan, focusing on efficiency, effectiveness, and financial sustainability. Reviews scheduled for 2025/26 include Recreational Services (aquatic centres), Events, Tree Management, Procurement and Stores.

Financial position and performance

Council has made positive and sound financial management decisions over many years which enabled Council to deliver significant projects, support the community during the COVID-19 pandemic and several natural disasters and invest merger savings into improved services and infrastructure to meet the needs of our community and improve their quality of life.

However, with inflation on infrastructure outpacing growth in rates income at double the rate over 4 years and no mechanism in the IPART rate peg to adjust for this, income levels are not sufficient to meet future operating costs and maintain infrastructure at the level required. The IPART approved Special Variation addresses this issue and, as such, the budget anticipates Council will achieve key financial and asset performance benchmarks in 2025/26.

The 2025/26 budget forecasts an operating surplus of $2.1 million (excluding capital grants and contributions) which results in an Operating Performance Ratio of 0.40%. This just meets the industry benchmark of 0%. However, if the $14 million investment in the replacement of Council’s core operating systems is excluded, the Operating Performance Ratio would be 3.5%, with an operating surplus of $16.1 million.

Liquidity meets the industry benchmark (greater than 1.50x) with an Unrestricted Current Ratio 2.30x, meaning for every $1.00 in current liabilities there is $2.30 in current assets.

Net cashflow will be a negative $29 million in 2025/26 and $10 million 2026/27, primarily due to the construction of assets funded by existing grants and contributions and the replacement of Council’s core operating systems. Net cashflow will return to a positive position from 2027/28.

Asset management ratios are strengthened by the Special Variation, meaning Council is able to invest in the maintenance and renewal of assets at the required rate.

Financial performance and position snapshot

	Result	Forecast	Budget	Projected	Projected	Projected
	2023/24	2024/25	2025/26	2026/27	2027/28	2028/29
	$ 'mil	$ 'mil	$ 'mil	$ 'mil	$ 'mil	$ 'mil
Operating budget
Income	442	458	479	496	500	512
Operating expenses	(398)	(424)	(445)	(458)	(464)	(476)
Operating result	44	34	33	38	36	36
Less grants and contributions for capital projects	(29)	(27)	(31)	(21)	(12)	(12)
Operating result - excl capital income	15	7	2	17	23	24

Capital expenditure
New works	(30)	(55)	(44)	(45)	(22)	(18)
Renewal works	(43)	(39)	(61)	(72)	(65)	(67)
Total capital expenditure	(73)	(94)	(105)	(117)	(88)	(85)

Loan repayments	(6)	(5)	(2)	(2)	(2)	(2)

Cash and investments
Externally restricted	62	56	49	40	45	49
Internally restricted	89	77	68	72	68	75
Unrestricted	49	57	44	39	41	43
Total cash and investments	200	190	161	151	154	168

Cashflows
Net cash from operating activities	93	75	78	107	91	100
Net cash from investing activities*	(71)	(92)	(103)	(114)	(86)	(83)
Net cash from financing activities	(5)	7	(4)	(3)	(3)	(3)
Net increase / (decrease) in cash	17	(10)	(29)	(10)	3	14
* Exclude purchase and sale of investments

Financial position
Assets	5,889	6,060	6,213	6,377	6,532	6,694
Liabilities	(186)	(181)	(172)	(174)	(168)	(169)
Net Assets	5,702	5,879	6,040	6,203	6,364	6,525

Sensitivity Scenario Analysis

The following table demonstrates the impact that an unexpected significant event could have on the financial performance and position of Council, if no adjustment was made to fund the event. Given the operating minor surplus forecast in 2025/26, a situation such as a $5 million storm event, inflation on contracts at 10% or a $10 million unfavourable income shock would result in an operating deficit. Key performance and liquidity ratios would be weaker, with the Operating Performance Ratio no longer meeting the industry benchmark.

The Long-Term Financial Plan (Attachment 6) also includes a Sensitivity Analysis to further test the impact of inherent economic risks.

Revenue Policy

Rating Structure 2025/26

The NSW Government, through IPART, caps the total general income that may be raised from levying rates on property. Northern Beaches Council resolved to apply to IPART for a Special Variation. On 14 May 2025 IPART announced that it had approved a 2-year permanent Special Variation of 25.2% for Northern Beaches Council, comprising an increase of 12.1% in 2025/26 and 11.7% in 2026/27. These approved increases include the rate peg component for each applicable year. The approved increase of 12.1% is the basis of the draft 2025/26 budget.

The rating structure is based entirely upon property valuations (ad valorem) but with minimum rates applying where appropriate. Rates for 2025/26 will be assessed on land values as at 1 July 2022 and are forecast to raise $222 million before pensioner rebates and adjustments.

It is recommended that Council adopts the maximum rate increase of 12.1% approved by IPART and in accordance with sections 494 and 495 of the Act, makes the following Ordinary and Special Rates for 2025/26:

Table 4: Ordinary and Special Rates 2025/26

Type	Category/subcategory	Number	Ad valorem rate*	Minimum $	Income estimate $’000
Ordinary	Residential	96,593	0.116573	1,232.85	183,663
Ordinary	Business	6,587	0.395969	1,605.23	29,823
Ordinary	Business – Manly CBD	639	0.634682	1,605.23	4,900
Ordinary	Business - Warriewood Square	1	0.643356	-	155
Ordinary	Business – Warringah Mall	1	1.214400	-	1,093
Ordinary	Business – Strata storage unit facility	716	0.395969	767.22	549
Ordinary	Farmland	7	0.045037	1,186.95	19
	TOTAL ORDINARY	104,544			220,202

Special	Manly business centre improvement	639	0.218089	-	1,622
Special	Balgowlah business centre improvement	85	0.117936	-	105
	TOTAL SPECIAL	724			1,727

	TOTAL RATES				221,929

* Ad valorem rate – cents in the dollar, charged for every $1 of land value

Note: The information in the above table has been determined using currently available property and rating information and may be subject to change prior to 30 June 2025, dependent on such matters as the processing of supplementary rates adjustments and revisions to ratepayer land valuations that may be determined by the NSW Valuer General.

Further details on the special rates as well as properties covered by business sub-categories and special rates are shown in Attachment 4 (Delivery Program) to this report.

Domestic Waste Management Charges

The Domestic Waste Management (DWM) Service is provided to all residential properties. Council must make and levy an annual charge for the service and income must not exceed the reasonable cost of providing the services (sections 496 and 504). The standard domestic waste charge is proposed to be $599 in 2025/26 (a $13 (2.2%) increase) raising $59 million in revenue. Improvements to recycling processing and a new income stream for recycling paper have helped keep this increase under inflation for residents.

Table 5: Domestic Waste Management Services 2025/26

Description	Number	Charge	Income estimate $’000
Domestic waste management service (includes 80L red, 140L blue, 140L yellow and 2x240L green lid services, 2 booked clean ups per year and vegetation drop-off at Kimbriki for residents (up to 300kg max. per day and 4,000kg max. per annum)	98,205	$599.00	58,825
Availability charge	1,366	$120.00	164
Additional 80L red lid rubbish service	12,770	$336.00	4,291
First additional 140L blue OR yellow lid recycling service	7,545	$37.00	279
Subsequent additional 140L blue OR yellow lid recycling service	316	$126.00	39
Third or fourth green vegetation lid service	11,317	$37.00	140
Clean up excessive or incorrectly presented waste	-	$230.50 per hour + cost recovery on landfill disposal charges	-
Clean up contaminated or excessive booked bulky goods collection in excess of the permitted 3 cubic metres	-	$88.70 per excess cubic metre	-
Empty contaminated bin	-	$36.50 per bin	-
Total domestic waste charge income $’000			63,738
Cost of domestic waste service $’000			(62,274)
Allocation to reserve $’000			1,464

Stormwater Management Services Charges

The Stormwater Management Services Charge is levied to all eligible residential and business ratepayers to fund a program of stormwater improvement projects and is forecast to raise $2.2 million in 2025/26. The charge is consistent with the upper limit set by the Local Government (General) Regulation 2021, which remains unchanged since the inception of the charge in the 2006/07 financial year. No changes to the charge are proposed.

Table 6: Stormwater Management Services Charges 2025/26

Stormwater Management Service	Charge
Residential – single dwelling	$25.00
Residential - strata lots	$12.50
Business	$25.00 per 350 square metres (or part thereof) for land categorised as business (excluding strata lots)
Business strata lots, business company title	$5.00 or the relevant portion of the maximum annual charge that would apply to the strata scheme if it were a parcel of land subject to the land categorised as business

Rates and annual charges

The estimated change in rates and annual charges, which represent the rates notice, are illustrated in the following table:

Table 7. Minimum and typical residential rates and annual charges 2025/26

	Minimum			Typical (median)
	2025/26 Amount	Increase		2025/26 Amount	Increase
Residential Rates	$1,233	$133	12.1%	$1,562	$168	12.1%
Domestic Waste Charge	$599	$13	2.2%	$599	$13	2.2%
Stormwater Charge	$12.50 (strata)	-	-	$25 (house)	-	-
TOTAL RATES NOTICE - Per annum	$1,844	$146	8.6%	$2,186	$181	9.0%
Per quarter	$461	$36	8.6%	$547	$45	9.0%
Per day	$5.05	$0.40	8.6%	$5.99	$0.50	9.0%

The typical (median) rate is based on the median (midpoint) 2022 residential land value of $1.34 million. The minimum rate applies to land values just under approx. $1.06 million.

Interest Charges on Overdue Rates and Charges

The Minister for Local Government has determined the maximum rate of interest payable on overdue rates and charges is 10.5% per annum for the period 1 July 2025 to 30 June 2026 (inclusive).

The methodology used to calculate the interest rate is consistent with the Supreme Court methodology utilised to provide a nationally harmonised provision for the awarding of post-judgement interest (the Reserve Bank cash rate plus 6%), rounded to the nearest half per cent. The cash rate used is based on the cash rate set by the Reserve Bank of Australia on 10 December 2024.

In accordance with section 566(3) of the Act, it is recommended that Council adopts the maximum interest rate allowed and this be applied to all Northern Beaches properties.

Section 611 Charges

Is it proposed that an annual charge under section 611 of the Act be made and levied for the year commencing 1 July 2025 on the person for the time being in possession, occupation or enjoyment of a rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place.

Works on Private Land

Council may carry out work on private land, either on request or agreement with the owner of the land, or under relevant legislation. The amount or rate proposed to be charged is the appropriate commercial rate – the actual cost of the works and standard on costs to provide full cost recovery plus a return to Council.

Pricing Methodology and Fees and Charges 2025/26

The revised Fees and Charges schedule for the 2025/26 financial year is provided as Attachment 5 to this report and has been prepared in accordance with the principles of the Council’s Pricing Methodology.

Overview of the revised Asset Management Plan 2025-2035

The Asset Management Plan (AMP) has been revised to reflect the changes to the budget due to the rephasing of capital expenditure projects.

The IPART approved Special Variation will address the funding gap outlined in the AMP, which currently requires an additional $15.1 million per year to maintain and renew existing assets, along with $10.4 million per year to uplift service levels and provide high priority new assets required by the community.

Overview of the revised Long-Term Financial Plan 2025-2035

The Long-Term Financial Plan (LTFP) has been revised to reflect the changes to the budget and the IPART Special Variation decision. The LTFP provides 3 scenario models.

Scenario 1: Delivery Program model – IPART approved special variation (8.3% p.a. over 2 years + rate peg)

· This model is consistent with the Delivery Program 2025-2029 at Attachment 4.

· The model addresses the maintenance and renewal funding gap for existing assets outlined in the Asset Management Plans and provides funding to support environmental and natural risk reduction programs.

· Infrastructure expenditure is increased and working capital is strengthened to provide the capacity to respond to unexpected events. This produces a stronger operating result and asset management ratios.

· To provide funding for this model, rates income increases over a 2-year period, providing an additional $35 million in income per year by the 2nd year (which is retained in future years).

· This model primarily offsets the impact of higher inflation levels in recent years and the increase in the Emergency Services Levy.

Scenario 2: Alternative model – rate peg only

· Under this model, rates increase by the rate peg in each year, which is intended to be a CPI for local government. As a result, the funding gap created over the 4-year period during which rate increases were only half the inflation rate, remains unresolved.

· Income levels are not sufficient to fund operating expenses, invest in the ongoing renewal of infrastructure and provide the necessary working capital to manage unexpected events. Performance benchmarks are weakening or not met, especially regarding asset management and operating performance.

· This is not sustainable and will continue to reduce services to the community.

Scenario 3: Alternative model – IPART application 3-year special variation (8.3% p.a. over 2 years and 8.4% in year 3 + rate peg)

· This is consistent with the Special Variation application to IPART, based on ‘Option 3 Improve Services’ of the January 2025 LTFP. Council does not have approval for this full increase, the scenario is provided for comparative purposes only.

· In addition to the outcomes of Scenario 1, this scenario also provides capacity to deliver larger renewal projects in future years such as the renewal of the Warringah Aquatic Centre.

· To provide funding for this model, rates income increases over a 3-year period, providing an additional $57 million in income per year by the 3rd year (which is retained in future years).

The following graph illustrates the difference in the operating result (excluding capital grants and contributions) for the 3 scenarios. A stronger operating surplus enables greater investment in the renewal of infrastructure assets and rebuilding working capital to respond to unexpected events like natural disasters and new opportunities.

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The following table compares key performance measures for the 3 scenarios.

Performance measures – Long Term Financial Plan Scenarios Comparison

Adoption of Revised Documents

Revisions have been made to the Integrated Planning and Reporting (IP&R) documents placed on exhibition in accordance with the changes at Attachment 2. It is recommended that Council:

· Endorse the revised Community Strategic Plan 2040 at Attachment 3.

· Adopt the revised Delivery Program 2025-2029 and Operational Plan 2025/26 at Attachment 4.

· Adopt the revised Fees and Charges 2025/26 and Pricing Methodology at Attachment 5.

· Adopt the revised Long-Term Financial Plan 2025-2035 at Attachment 6.

· Adopt the Asset Management Strategy 2025-2035 at Attachment 7.

· Adopt the revised Asset Management Plans 2025-2035 at Attachment 8.

· Adopt the revised Workforce Management Strategy 2025-2029 at Attachment 9

Timing

In accordance with the Act, Council needs to endorse a Community Strategic Plan and adopt a Delivery Program and Operational Plan, Fees and Charges, Long-Term Financial Plan, Asset Management Policy, Strategy and Plan and Workforce Management Strategy by 30 June 2025.

These matters are addressed in sections 404(2), 405, 610F(2), 610B(1) and 406(1) of the Act and the Office of Local Government’s Integrated Planning and Reporting Guidelines for local government in NSW (2021).

Financial Considerations

2025/26 Budget and Delivery Program

The budget for 2025/26 projects total expenditure of $550 million, including a capital works program of $105 million. This includes investing $61 million in asset renewal expenditure to improve the overall condition of our assets and a further $44 million in delivering high priority new assets to the community.

The budget forecasts an operating surplus before capital grants and contributions of $2.1 million, which includes a $14 million investment in replacing Council’s core operating systems. A further $2.4 million in loans will be repaid and $2 million in savings are forecast.

The budget is based on the IPART approved 12.1% special variation increase in rates (which includes the 3.8% rate peg).

There are several restrictions on funds within the operating result. When these are removed, the underlying operating result is forecast to be a deficit of $0.2 million. If the replacement of Council’s core operating systems is excluded, the underlying result would be a surplus of $13.8 million.

	$'mil
Underlying result
Surplus / (deficit) excluding capital grants and contributions	2.1
Less:
Interest on restricted Council funds	(2.9)
Domestic Waste net depreciation	(0.1)
Stormwater Charge net opex	(2.0)
Special Rates	(0.1)
Externally restricted grants (net)	0.3
Kimbriki (less dividend)	0.2
Mona Vale Cemetery	0.3
Development contribution funded operating projects	2.5
Gain on disposal of assets	(0.5)
Underlying surplus / (deficit) excluding restricted funds	(0.2)
Exclude core operating systems replacement	14.0
Underlying surplus / (deficit) excluding restricted funds and core operating system replacement	13.8

The budget is balanced with funding identified for all planned expenditure, including the IPART approved Special Variation, and Council is anticipated to meet the Office of Local Government’s financial and asset performance benchmarks.

Long-Term Financial Plan 2025-2035

The revised Long-Term Financial Plan provides financial modelling for 3 scenarios:

· Scenario 1 ‘Delivery Program Model – IPART approved 2-year Special Variation’ – consistent with the Delivery Program 2025-2029 and Council’s approved Special Variation. This model addresses the infrastructure funding gap and expands environmental programs. Rates income increases above the rate peg by $16 million (8.3%) from the 2025/26 financial year, an extra $19 million (8.3%) in 2026/27. This scenario meets all financial and asset performance ratios in each year.

· Scenario 2 ‘Alternative Model – rate peg only’ – rates only increase by the rate peg, meaning the funding gap created when rate increases were only half the inflation rate, will remain unresolved. Performance measures for liquidity and debt management remain within the industry benchmark, however asset management and operating performance ratios are weak or below industry benchmarks. This model shows income levels are not sufficient to fund operating expenses, maintain infrastructure assets and provide the necessary working capital to manage unexpected events, a scenario which is not sustainable and without intervention will continue to reduce services to the community.

· Scenario 3 ‘Alternative Model – IPART application 3-year Special Variation’ – consistent with Council’s Special Variation application to IPART. In addition to the outcomes from Scenario 1, this model provides the capacity to undertake major renewal capital expenditure. Rates income increases above the rate peg by a further $22 million (8.4%) in 2027/28.

Governance and Risk Considerations

The review and updating of the documents within Council’s Integrated Planning and Reporting Framework are integral to good governance at Council. These documents have been prepared in accordance with Sections 402-405 and 610 of the Local Government Act 1993 and the Office of Local Government’s Integrated Planning and Reporting Guidelines for local government in NSW (2021) and Integrated Planning and Reporting Handbook for Local Government in NSW (2021).

Environmental Considerations

Protecting the environment and ensuring that we can live sustainably on the Northern Beaches are key community aspirations captured in the outcomes and goals of the Community Strategic Plan. The Delivery Program, Operational Plan and Budget feature programs and activities that protect the environment and support the community to live sustainably.

Social Considerations

The suite of documents prepared in the IP&R review includes initiatives aimed at continuing to build resilience within a connected, safe and diverse community.

Link to Strategy

This report relates to the Community Strategic Plan Outcome of:

· Good Governance - Goal 19: Our Council is transparent and trusted to make decisions that reflect the values of the community.

· Good Governance - Goal 20: Our Council is proactive, and efficiently and effectively responds to, and delivers on, the evolving needs of the community.

· Participation and Partnership - Goal 21: Our community is actively engaged in decision making processes.

· Participation and Partnership - Goal 22: Our Council builds and maintains strong partnerships and advocates effectively on behalf of the community.

The projects and programs in the Delivery Program 2025-2029 and Operational Plan 2025/26 will contribute to the advancement of all outcomes and goals in the revised Community Strategic Plan 2040.

Reporting team

Strategy & Performance

TRIM file ref

2025/345023

Attachments

⇨1 Community and Stakeholder report on Exhibition of the Community Strategic Plan, Delivery Program, Operational Plan and Resourcing Strategy (Included In Attachments Booklet)

⇨2 Proposed amendment to Community Strategic Plan, Delivery Program, Operational Plan and Resourcing Strategy (Included In Attachments Booklet)

⇨3 Community Strategic Plan 2040 (Included In Attachments Booklet)

⇨4 Delivery Program 2025-2029 and Operational Plan 2025/26 (Included In Attachments Booklet)

⇨5 Fees and Charges 2025/26 (Included In Attachments Booklet)

⇨6 Long-Term Financial Plan 2025-2035 (Included In Attachments Booklet)

⇨7 Asset Management Strategy 2025-2035 (Included In Attachments Booklet)

⇨8 Asset Management Plan 2025-2035 (Included In Attachments Booklet)

⇨9 Workforce Management Strategy 2025-2029 (Included In Attachments Booklet)

⇨10 Independent Pricing and Regulatory Tribunal's (IPART) Special Variation Instrument 2025/26 to 2026/27 (Included In Attachments Booklet)

Item 9.2 Northern Beaches Council MEETING - 17 June 2025

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ITEM 9.2

Monthly Investment Report - April 2025

Purpose

The purpose of this report is to provide details of all money that Council has invested under section 625 of the Local Government Act 1993 (Act).

Executive Summary

· In accordance with section 212 of the Local Government (General) Regulation 2021 (Regulation), the Responsible Accounting Officer must provide Council with a written report on a monthly basis setting out details of all money that Council has invested under section 625 of the Act.

· The Responsible Accounting Officer has certified that the investments listed in the report have been made in accordance with the Act, the Regulation and Council’s Investment Policy.

· As at 30 April 2025, Council had total cash and investments of $212,877,497 comprising:

Trading Accounts	$1,803,747
Investments	$211,073,750

· The portfolio achieved a return of 0.397% for the month of April, which was 0.047% above the benchmark AusBond Bank Bill Index return of 0.35%.

· The weighted average interest rate of the portfolio at month end is 4.86%, compared to 4.88% for the prior month.

· Total investment income year to date (YTD) to April 2025 was $9.3 million compared to the current YTD budget of $9.1 million.

RECOMMENDATION

That Council note the Investment Report as at 30 April 2025, including the certification by the Responsible Accounting Officer.

Background

In accordance with section 212 of the Local Government (General) Regulation 2021 (Regulation), a report setting out the details of money invested must be presented to Council on a monthly basis.

The report must also include certification as to whether or not the investments have been made in accordance with the Local Government Act 1993, the Regulation and Council’s Investment Policy.

The details of the report (the key aspects of which are in the Executive Summary) are set out below, together with the Responsible Accounting Officer’s certification.

CERTIFICATION – RESPONSIBLE ACCOUNTING OFFICER

I hereby certify that the investments listed in this report have been made in accordance with section 625 of the Local Government Act 1993, section 212 of the Local Government (General) Regulation 2021 and existing Investment Policies – Caroline Foley, Chief Financial Officer.

INVESTMENT REPORT

Investment Balances

*Rating is based on a private rating advised by the issuer to Council’s Investment Advisors.

Portfolio Analysis

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Institutional Credit Framework – Compliance with Investment Policy Requirements

Clause 4.2.2 of Council’s Investment Policy requires that exposure to an individual institution be restricted by their credit rating so that single entity exposure is limited, as detailed in the table below:

S&P Long Term Rating*	S&P Short Term Rating*	Maximum %	Portfolio Complies with Policy?
AAA (incl. government guaranteed deposits)	A-1+	50%	Yes
AA+
AA
AA-
A+	A-1	40%	Yes
A	A-1	40%	Yes
A-	A-2	30%	Yes
BBB+
BBB
BBB-	A-3	10%	Yes
Unrated**TCorp Funds	Unrated**	5%	Yes ($Nil)
Unrated***ADIs	Unrated***	$250,000	Yes ($Nil)

* Or Moody’s / Fitch equivalents

** Unrated Category is restricted to eligible managed funds such as the NSW Treasury Corporation Hour Glass Facilities

*** Unrated ADIs (Authorised Deposit-taking Institution) Category is restricted to those ADIs that are under the Australian government guarantee scheme and limited to maximum $250,000 per unrated ADI.

Overall Portfolio Credit Framework – Compliance with Investment Policy Requirements

Clause 4.2.1 of Council’s Investment Policy requires that the total percentage exposure within the market to any particular credit rating category be limited, as detailed in the table below:

S&P Long Term Rating*	S&P Short Term Rating*	Maximum %	Portfolio Complies with Policy?
AAA (incl. government guaranteed deposits)	A-1+	100%	Yes
AA+
AA
AA-
A+	A-1	100%	Yes
A
A-	A-2	80%	Yes
BBB+
BBB
BBB-	A-3	30%	Yes
Unrated**	Unrated**	5%	Yes ($Nil)

* Or Moody’s / Fitch equivalents

** Unrated Category is restricted to eligible managed funds such as the NSW Treasury Corporation Hour Glass Facilities and ADIs covered by the government guarantee scheme.

Term to Maturity Framework – Compliance with Investment Policy Requirements

Clause 4.2.4 of Council’s Investment Policy requires Council’s investment portfolio is to be invested within the following maturity constraints:

Overall Portfolio Term to Maturity Limits			Portfolio Complies with Policy?
Portfolio % <1 year	Min 40%	Max 100%	Yes
Portfolio % >1 year ≤3 year	Min 0%	Max 60%	Yes
Portfolio % >3 year ≤5 year	Min 0%	Max 30%	Yes

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Environmental and Social Considerations

Portfolio investments: Fossil Fuel vs Non-Fossil Fuel Banks:

Portfolio Summaries	Fossil Fuel Lending ADIs	Non-Fossil Fuel Lending ADIs
As at 30 Apr 2025	51.3%	48.7%

Investment Performance vs Benchmark

a) Portfolio Return vs Benchmark

	Investment Portfolio Return *	Benchmark: AusBond Bank Bill Index
1 Month	0.397%	0.35%
3 Months	1.176%	1.04%
FYTD	4.163%	3.70%
12 Months	5.058%	4.46%

* Excludes trading account balances

Council’s Investment Advisors have stated this form of portfolio reporting conforms to global investment performance standards and that these standards say that periods below 12 months should not be annualised.

The above table shows a comparison of Council’s investment portfolio return to the benchmark. Council’s Investment Advisor, Laminar Capital, has created an accumulation index for the portfolio which increases each month by the portfolio internal rate of return to enable meaningful comparison to the benchmark AusBond Bank Bill index, which is an accumulation index.

The Bloomberg AusBond Bank Bill Index is engineered to measure the Australian money market by representing a passively managed short term money market portfolio. This index is comprised of 13 synthetic instruments defined by rates interpolated from the RBA 24-hour cash rate, 1M BBSW, and 3M BBSW.

The portfolio achieved a return of 0.397% for the month of April which was 0.047% above the benchmark AusBond Bank Bill Index return of 0.35%. For the past 12 months the portfolio achieved a return of 5.058%, which was 0.598% above the benchmark AusBond Bank Bill Index return of 4.46%.

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b) Portfolio Interest Rate vs Benchmark

	Weighted Average Portfolio Interest Rate (%pa) *	Average RBA Cash Rate
1 Month	4.86%	4.10%
3 Months	4.87%	4.10%
6 Months	4.92%	4.23%
FYTD	4.98%	4.28%
12 Months	5.02%	4.29%

* Excludes trading account balances

The above table shows the weighted average interest rate of the portfolio as at month end. This is an average of all the interest rates that each term deposit is earning. It is the current earning rate of the portfolio, and this information is useful as it shows how the earning rate changes each month in line with changes in market interest rates. Each time a term deposit matures during the month it is being reinvested at current interest rates. To facilitate meaningful comparison, the weighted average interest rate of the portfolio is compared to the average Reserve Bank of Australia Cash Rate for the same period.

The weighted average interest rate of the portfolio is 4.86%, compared to 4.88% for the prior month. For the past 12 months the weighted average interest rate of the portfolio was 5.02% compared to the average Reserve Bank of Australia Cash Rate of 4.29%.

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Investment Income* vs Budget

	Year to Date $
Investment Income	9,269,587
Adjustment for Fair Value	18,417
Total Investment Income	9,288,004

Budgeted Income	9,118,169

*Includes all cash and investment holdings

Statement of Compliance

Portfolio Performance vs Bank Bill Index over 12-month period.	✔	Council’s investment performance did exceed benchmark.
Monthly Income vs Budget	✔	Council’s income from investments did exceed monthly budget.
Investment Policy Compliance
Legislative Requirements	✔	Fully compliant
Portfolio Credit Rating Limit	✔	Fully compliant
Institutional Exposure Limits	✔	Fully compliant
Term to Maturity Limits	✔	Fully compliant

Restricted cash, cash equivalents and investments

At the end of April 2025 total cash & investments were $212,877,497 and were made up of the following reserve allocations.

Allocation of Funds	Amount ($)	Percentage
Externally Restricted	$60m	28.0%
Internally Restricted	$84m	39.6%
Total Restricted	$144m	67.7%
Unrestricted	$69m	32.3%
Total	$213m	100.0%

Financial Considerations

Actual investment income for the period from 1 July 2024 to date was $9,288,004 compared to budgeted income of $9,118,169, a positive variance of $169,835 as a result of both a higher than anticipated level of investments and higher investment interest rates. The current budget for the full year is $10,394,545 in investment income.

Governance and Risk Considerations

A revised Investment Policy was adopted by Council at its meeting on 26 July 2022. The Policy is reviewed annually by the Audit, Risk and Improvement Committee. It was reviewed by the Committee at its meeting in December 2024, and no changes to the Policy were proposed.

Council’s Investment Policy and Strategy was reviewed in September 2024 by Council’s Investment Advisors, Laminar Capital Pty Ltd, who confirmed that the current policy “remains consistent with the Ministerial Investment Order and guidelines issued by the Chief Executive (Local Government), Department of Premier and Cabinet” and that they “do not recommend any changes to the list of approved investments or credit limit frameworks”.

Environmental Considerations

Council’s investments are managed in accordance with Council’s Investment Policy. Council’s Investment Policy requires consideration of environmental responsibility when making investment decisions.

Social Considerations

Council’s investments are managed in accordance with Council’s Investment Policy. Council’s Investment Policy requires consideration of social responsibility when making investment decisions.

Link to Strategy

This report relates to the Community Strategic Plan Outcome and Goal:

· Good governance - Goal 19 Our Council is transparent and trusted to make decisions that reflect the values of the community.

Reporting team	Finance
TRIM file ref	2025/353473
Attachments	Nil

Item 11.1 Northern Beaches Council MEETING - 17 June 2025

11.0 Environment and Open Space Division Reports

ITEM 11.1

Outcome of Public Exhibition - Tree Management Policy

PURPOSE

The purpose of this report is to present the outcome of the public exhibition of the draft Tree Management Policy and seek its adoption.

Executive summary

· At its meeting of 18 February 2025, Council resolved to place the draft Tree Management Policy (Policy) on public exhibition.

· The draft Policy was publicly exhibited for community feedback from 24 February 2025 to 30 March 2025.

· Following the public exhibition period, a review of the 130 submissions received was undertaken - the findings are set out in the Community Engagement Report (Attachment 1) and summarised in this report.

· The majority of submissions received were very supportive or somewhat supportive of the draft Policy with a number suggesting changes.

· Some respondents who were not supportive indicated the draft Policy should be strengthened.

· Based on the review of the feedback received, minor amendments are proposed to the draft Policy as outlined in this report and a final draft Policy (Attachment 2) is now presented for adoption.

· The final draft Tree Management Policy is consistent with Council’s Tree Canopy Plan, which was adopted in 2023.

RECOMMENDATION

That Council:

1. Adopt the Tree Management Policy at Attachment 2.

2. Revoke the following policies:

a. Tree Management Policy - T69 (Attachment 3)

b. Tree Preservation Order Policy - ENV PL 440 (Attachment 4)

c. Street Tree Planting Policy - PL 416 (Attachment 5)

d. Urban Forest Policy - PL 800 (Attachment 6)

e. Significant Tree Policy - No 118 (Attachment 7)

Background

Five tree related policies from the former councils remain in force, and there is a need to harmonise these policies to reflect a common approach to managing trees across the Northern Beaches local government area (LGA).

Following a policy review, a draft Tree Management Policy (Policy) was prepared which reflects the intent of the current tree related policies, is consistent with Council’s Tree Canopy Plan (TCP) and strengthens tree assessment and protection requirements. The key objectives of the draft Policy are to:

· recognise the significant benefit provided by trees to our local community in terms of air quality, soil protection, water quality and quantity, carbon sequestration, energy conservation, noise reduction, urban cooling, and habitat for local wildlife

· increase tree cover by enhancing and promoting protection, increasing new or replacement planting, and improving rates of retention and long-term survival where trees are healthy and do not pose unacceptable risks to safety

· enhance canopy connectivity within and between natural areas (such as bushland, parks, and road reserves) and urban areas (including residential and commercial property) through the preservation of existing significant and old growth canopy trees, and the planting of trees and other vegetation.

The draft Policy was presented to Council at its meeting of 18 February 2025. Council subsequently resolved (Resolution 033/25) to place the draft Policy on public exhibition and the outcome reported to Council.

Discussion

In response to Resolution 033/25 the draft Policy was placed on public exhibition from 24 February 2025 to 30 March 2025. The majority of submissions received were very supportive or somewhat supportive of the draft Policy. Some respondents who were not supportive indicated the draft Policy should be strengthened.

Many of the comments and suggestions received for the draft Policy are covered by other Council policies, plans and strategies including the Community Engagement Policy and Strategy, Compliance and Enforcement Policy and Guidelines, Enterprise Risk and Opportunity Management Policy and the TCP. The draft Policy will operate in accordance with relevant Council policies, plans and strategies and any relevant legislation, guidelines or Australian standards.

Based on the review of the submissions and comments received, minor amendments are proposed to the draft Policy including:

· additional references and related documents have been added for completeness

· definitions have been updated including for a healthy tree

· a reference to rehabilitation added.

Further details on key themes raised through submissions and Council staff responses are summarised in the following section.

A final draft Policy (Attachment 2) has now been prepared for Council’s consideration.

Consultation

Public exhibition of the draft Policy and the opportunity to provide feedback was promoted via Council’s e-mail newsletter, stakeholder emails and a Your Say online project page. Feedback was collected through an online form and via email. During the public exhibition period 130 submissions, many with comments, were received. Following a review of submissions, the key themes arising and staff responses are summarised in Table 1 below.

Table 1. Consolidated summary of key themes raised through submissions and staff responses

Theme	Issues, suggestions, requests and other considerations raised	Responses
Draft Policy and processes should be strengthened:	Draft Policy wording: Considered too vague and needs to be strengthened and/or, remove subjective words/terms. Definitions and further information needs to be provided for stakeholders, tree retention measures, reasonable justification and what constitutes healthy trees.	The draft Policy will be implemented in accordance with relevant legislation, guidelines, Australian standards, and Council’s policies, plans and strategies. The draft Policy does not and is not required to replicate existing legislation, guidelines and the like. Additional references have been added to the draft Policy for completeness. Tree retention measures are undertaken in accordance with Council’s risk framework and Enterprise Risk and Opportunity Management Policy. The framework will be reviewed to consider if it can be strengthened for trees. A definition of a healthy tree has been added to the draft Policy. Stakeholders are defined for each engagement project in accordance with Council’s Community Engagement Policy and Strategy.
Draft Policy and processes should be strengthened:	Comments on draft Policy specifics: Draft Policy should specify that Council will investigate and pursue the rehabilitation of a tree and that the removal of a tree will be a last resort. Needs to allow for flexibility and consider the needs of the surrounding area and wildlife. Draft Policy should detail best practice for tree management on private land.	The draft Policy provides principles for tree management. The retention of trees and the improvement of the tree canopy is a key principle of the draft Policy and the TCP. Tree rehabilitation is considered during assessments and the draft Policy has been amended to clarify this. Where required the impacts on ‘surrounding areas’ and wildlife are considered in tree management. No change proposed to the draft Policy. Information regarding ‘best practice’ for managing trees on private land can be found on Council’s website.
Tree Management	Property owners and individuals should not be restricted on private land particularly regarding removal of non-native trees. Landowners should be able to prune imposing trees from neighbouring land as they see fit. The draft Policy does not go far enough to protect trees on private land. Permits should be required for trees 3m and above, not 5m and above. Existing trees should not be allowed to be removed and should be incorporated into new developments. Process to remove trees for development should be easier.	Management of trees on private land is governed by relevant legislation particularly the State Environmental Planning Policy (Biodiversity and Conservation) 2021 NSW (SEPP) and relevant Development Control Plans. No change proposed to the draft Policy. An Exempt Species list is available on Council’s website – the tree species listed are suitable for removal without consent unless identified as a heritage item or within a heritage area. No change proposed to the draft Policy.
	Removal and/or pruning of trees on Council land: If a tree is dangerous, damaging private or public property or creating mess it should be easy to apply for it to be removed or pruned. Improved notification to the community when a tree on Council land is to be removed. Trees should be allowed to be pruned to improve views / trees need to be protected from pruning for improved views.	Trees are assessed according to relevant legislation, Council policies, and the Enterprise Risk and Opportunity Management Policy. Tree removal is generally not supported for normal leaf, flower, or fruit drop. The draft Policy includes community notification for tree management, except for high-risk trees or emergencies. Public trees are protected and not pruned for private views, but views are considered when planting on Council land. No change proposed to the draft Policy.
	Some submissions commented on the Iconic Tree Register.	The establishment of an Iconic Tree Register is a commitment in the TCP and is planned to be launched on Council’s website in late 2025. Criteria and definitions will be included for the Register. No change proposed to the draft Policy.
Compliance Management	There should be stronger enforcement and penalties for tree vandalism.	Vandalism and unauthorised tree removal or pruning is managed in accordance with Council’s Compliance and Enforcement Policy 2024 and relevant legislation. The draft Policy now includes a reference to Council’s Compliance and Enforcement Guidelines 2018.
	Council’s risk policy and framework should be made publicly available and be included as part of the draft Policy.	Council’s Enterprise Risk and Opportunity Management Policy is available on Council’s website and added to the list of references in the draft Policy. The framework is an internal document.
	Concerns of the validity of privately contracted arborist reports. Concerns over conflicting assessments between Council and private arborist assessments	Council accepts and reviews reports from arborists registered and qualified at level 5 or above. No change proposed to the draft Policy.
	How will Council’s compliance with the draft Policy and Tree Canopy Plan be measured, will there be a quota that needs to be met and what kind of technology and mapping will be used. Insufficient number of Rangers to police public compliance with draft Policy. Need a designated Ranger to assess 10:50 clearing.	The TCP includes actions like planting 5,000 trees annually in priority areas and conducting LIDAR (Light Detection and Ranging) surveys every 4 years to assess tree height, density, and canopy cover. Council’s Rangers manage compliance matters, including tree-related issues, with resources allocated based on operational needs and annual budget. No change proposed to the draft Policy.
	Permits for work on private trees: Exhibited to allow for public review, input & monitoring	The permit process requires among other things that a copy of the permit be displayed on a front fence, and a photo provided as evidence of replanting. No change proposed to draft Policy.
Tree selection and replanting	Importance of non-native trees. Feedback is critical of historic and current tree selection on Council land (Coastal Banksias should not be planted on nature strips as they cause damage, do not plant gum trees, do not plant Camphor Laurels along creeks).	The TCP outlines key principles, including providing a diverse range of species, prioritising local native species where possible (non-native trees are included). Due diligence ensures appropriate species are selected for each location. No change proposed to the draft Policy.
	Ensure that Council land is fully utilised, increasing trees on all reserves and nature strips.	The TCP aims to among other things to integrate nature into the built environment. It includes improving tree canopy and coverage in parks and reserves, with a target of planting at least 5,000 trees annually in priority areas. No change proposed to the draft Policy.
	Clarify how the location and species selection will be managed.	The TCP includes actions like planting 5,000 trees annually in priority areas. These areas include vulnerable, high heat indexed, and low canopy locations such as Brookvale. Species selection will follow the Plan and Council’s approval. No change proposed to the draft Policy.
Environmental and community benefits	Climate Change: Trees are important in combating the urban heat island effect. Tree management must consider increased risks from extreme weather events like storms and bushfires. Pruning should be allowed when trees shade solar panels.	Trees play an important role in moderating urban heat, and the draft Policy recognises their cooling benefits. Climate change is addressed in greater detail in other Council strategies, including the Environment and Climate Change Strategy 2040. Exempt tree works follow relevant legislation, regulations, and Council policies. No change proposed to the draft Policy.
Environmental and community benefits	Native trees are important to support biodiversity and trees of all species and age classes are needed to support local wildlife and habitat and should be protected to ensure the future tree canopy growth. Non-native trees provide essential nesting and roosting for native animals and should be protected.	The benefits provided by trees for habitat and local wildlife is referenced in the objectives of the draft Policy and reflected in Council’s suite of environmental sustainability policies and strategies. No change proposed to draft Policy.
Education, community engagement and advocacy	Education: Educate the community and local businesses that trees are an asset to the community and outline all benefits. Important to communicate to the community regularly and through various methods the importance of trees. Provide a list of recommended trees for small spaces Increased education at local schools so the next generation understand the importance of trees. Greater education regarding weeds, invasive and unsuitable plants.	There are actions in the TCP regarding raising community awareness about trees, involving volunteers and education initiatives. These actions are implemented when funds and resources are available. Recent responses include that: · Council’s website has been updated with new information about removing and pruning trees, a planting guide and a photo registry. · Community planting days are an annual activity undertaken when resources are available. No change proposed to the draft Policy.
	Community engagement: Allow the community to easily provide feedback to Council. Council did not listen to the community regarding the trees on Ruskin Row, Avalon.	Engagement is conducted in accordance with Council’s Community Engagement Policy and Strategy. No change proposed to the draft Policy.
	Advocacy: Council needs to continue to advocate for the 10/50 Vegetation Clearing Code of Practice be tightened to greater protect trees. LEP needs to be amended to ensure draft Policy is more actionable	We will continue to advocate for changes to State policies, legislation and plans that align with Council’s objectives for tree management. Tree Management matters have been considered in the development of the Local Strategic Planning Statement 2040 and the draft Northern Beaches Local Environmental Plan and District Control Plan. This is in keeping with the TCP. No change proposed to the draft Policy.

Further information on the details about the public exhibition, analysis of the feedback received, responses to the key themes arising and access to the verbatim responses (redacted) are presented in the Community Engagement Report at Attachment 1.

Timing

Should the final draft Policy be adopted by Council, it will come into immediate effect. Revoked policies will be removed from Council’s website and replaced with the adopted Policy.

Financial Considerations

Adoption of the policy does not have a financial impact to Council. The funds and resources required to manage Council’s obligations for tree management (for example under the Tree Canopy Plan) are considered annually through the preparation of Council’s Delivery Program and operational and capital budgets. Supplementary funding is also sought through grants when opportunities arise.

Governance and Risk Considerations

The final draft Policy has been developed in accordance with Council’s Policy Framework NB-P-01. If adopted, it is proposed the following current policies would be revoked:

· former Manly, Tree Management Policy - T69 (Attachment 3)

· former Warringah, Tree Preservation Order Policy - ENV PL 440 (Attachment 4)

· former Warringah, Street Tree Planting Policy - PL 416 (Attachment 5)

· former Warringah, Urban Forest Policy - PL 800 (Attachment 6)

· former Pittwater, Significant Tree Policy - No 118 (Attachment 7)

Environmental Considerations

The final draft Policy aims to provide improved controls and positive environmental outcomes in keeping with Council’s Tree Canopy Plan.

The final draft Policy recognises trees as green infrastructure and that trees contribute to air quality, prevent soil erosion and assist with improving water quality, carbon sequestration, stormwater retention, energy conservation, noise reduction, urban cooling and provide habitat for wildlife. Implementation would be undertaken in accordance with all relevant environmental and other legislation and Council’s environmental and other policies and directions.

Social Considerations

The final draft Policy supports positive social outcomes through improved protection of trees and improvements to the Northern Beaches tree canopy.

Link to Strategy

This report relates to these Council policies, strategies and plans:

· Community Engagement Policy and Strategy

· Community Strategic Plan 2040

· Compliance and Enforcement Policy and Guidelines

· Enterprise Risk Management Policy

· Environment and Climate Change Strategy 2040

· Local Strategic Planning Statement - Towards 2040

· Policy Framework

· Tree Canopy Plan 2023.

This report also relates to these Community Strategic Plan 2040 Outcomes and Goals:

· Protection of the environment - Goal 1 Our bushland, coast and waterways are protected for their intrinsic value.

· Protection of the environment - Goal 2 Our environment is resilient to natural hazards and climate change.

· Environmental sustainability - Goal 6 Our Council is recognised as a leader in environmental sustainability.

· Good governance - Goal 19 Our Council is transparent and trusted to make decisions that reflect the values of the community.

Reporting team

Parks & Open Space

TRIM file ref

2025/297128

Attachments

⇨1 Community Engagement Report - Draft Tree Management Policy (Included In Attachments Booklet)

⇨2 Final Draft Tree Management Policy (Included In Attachments Booklet)

⇨3 Former Manly Tree Management Policy - T69 (Included In Attachments Booklet)

⇨4 Former Warringah Tree Preservation Order Policy - ENV PL 440 (Included In Attachments Booklet)

⇨5 Former Warringah Street Tree Planting Policy - PL 416 (Included In Attachments Booklet)

⇨6 Former Warringah Urban Forest Policy - PL 800 (Included In Attachments Booklet)

⇨7 Former Pittwater Significant Tree Policy - No 118 (Included In Attachments Booklet)

Item 13.2 Northern Beaches Council MEETING - 17 June 2025

ITEM 13.2

Response to Notice of Motion No 41/2024 - Review of Council’s Administrative Office Accommodation and Potential Property Rationalisation

Purpose

The purpose of this report is to respond to Notice of Motion No 41/2024 – Review of Council’s Administrative Office Accommodation and Potential Property Rationalisation with a report that outlines opportunities to reduce costs through the rationalisation of Council-owned operational properties currently occupied for administrative purposes.

Executive Summary

· At its ordinary meeting on 10 December 2024, Council resolved (324/24) to receive a report within 6 months identifying opportunities to cut costs and improve efficiency through the rationalisation of operational properties used for administrative purposes.

· Council currently accommodates approximately 1,020 staff requiring desk access across 12 separate buildings, excluding staff housed within operational service locations such as libraries, childcare centres and aquatic facilities.

· An initial review of office accommodation has been conducted using a workplace density measure (square metres per work point) to assess efficiency.

· Government benchmarks suggest efficient workplace density is between 13m² and 15m² per work point (which includes circulation space, kitchens, meeting rooms etc.) with Council's current average at 16.1m², noting that some sites exceed the benchmark and others are well below it.

· Council’s Vuko Place holdings comprises 2 components being 3 levels of commercial strata office space, and a strata warehouse unit, which could offer a number of options to generate income either through divestment or leasing should these sites be able to be vacated.

· Council’s Property team is currently developing an Accommodation Plan to guide future decisions, focusing on efficient utilisation, flexible work practices, staff wellbeing, and cost management.

RECOMMENDATION

That Council note the report.

Background

At its ordinary meeting of 10 December 2024, Council considered Notice of Motion No 41/2024 – Review of Council’s Administrative Office Accommodation and Potential Property Rationalisation. Council resolved (324/24) as follows:

That Council receive a report within 6 months on operational properties currently occupied for administrative purposes and note where cost savings and efficiencies could be made, detailing a roadmap of priority sites for action.

Within the notice of motion Council’s operations in Vuko Place were called out as particular sites to focus on, noting that one unit was temporarily housing the Peninsula Bridge Club which is scheduled to relocate to the new Warriewood Valley Community Centre in 2026.

Discussion

Review of staff office accommodation

Following the amalgamation of the former Manly, Warringah, and Pittwater Councils in 2016, Council inherited a dispersed workforce of approximately 1,800 employees across a wide range of locations and services. This has presented ongoing logistical and operational challenges in achieving optimal use of office accommodation.

Currently around 1,020 staff requiring desk access are accommodated across 12 separate buildings. This figure excludes administrative roles embedded within operational facilities such as childcare centres, libraries, aquatic centres, theatres, galleries, and the Coastal Environment Centre (CEC).

There has been no significant change to Council’s office accommodation for a number of years. This low level of investment in staff office accommodation has led to a position that it is not meeting modern office standards and, in a number of locations, is no longer fit for purpose. There are also some locations, including both ‘Red Brick House’ and HR House, that are approaching the end of their useful life which will require the staff in these locations to be relocated in the near future.

Currently, administrative staff work out of a range of office style accommodation located at:

Location	Workpoints
Dee Why Civic Centre	324
Manly Town Hall	124
Soldiers Avenue, Manly	53
Balgowlah Depot	35
Cromer Depot	32
Cromer Administration	179
Vuko Place, Warriewood	152
Boondah Depot, Warriewood	125
Mona Vale Civic Centre	29

Feasibility of rationalisation

An initial review of the utilisation of Council office accommodation has been undertaken based on a workplace density approach, measured by dividing the Net Lettable Area (NLA, excluding operational areas) by the total number of staff that can be accommodated at work points in the space at any given time.

As a benchmark, Council refers to the following NSW Government guidelines:

· Office Design Requirements (June 2010), which recommend workplace density should not exceed 15m² per person in metropolitan areas

· Fitout Design Principles (Office Workplace Accommodation) (July 2017), which recommend achieving a density of 13m² per person or better in government-owned assets.

Council’s current commercial office accommodation has an average density of 16.1m² per work point, slightly above the recommended range of 13–15m². Detailed analysis by site reveals the following:

· Below Benchmark Range (8–11m² per work point):
Cromer Administration Centre, Cromer Depot Blue Room, Dee Why Civic Centre, Dee Why Civic Centre HR House, Manly Soldiers Memorial Hall, and Vuko Place. These sites demonstrate workplace efficiencies exceeding the NSW Government benchmarks.

· Within Benchmark Range (13–15m² per work point):
Boondah Depot, Cromer Gate House, Dee Why Civic Centre Print Room, and Manly Town Hall. These sites meet the expected standard for efficient office space utilisation.

· Above Benchmark Range (19.5–67m² per work point):
Balgowlah Depot Admin Building, Cromer Depot Central Store, and Mona Vale Library Admin Building. These sites indicate potential for increased efficiency. However, it is important to note that both Cromer Depot Central Store and Mona Vale Library Admin Building accommodate functions beyond typical office use, which accounts for the lower workplace density.

This analysis compares the floor area and number of work points across 12 Council buildings to provide an indication of the spatial efficiency of current office fit-outs. It does not assess how often each work point is actually used during business hours, recognising that with flexible work practices, as well as leave and absences, no desk is in use 100% of the time. A more detailed picture of occupancy and usage patterns will be developed as part of the Accommodation Plan currently underway.

In looking at all the sites in total, there is opportunity to reduce the space allocated per person across the administrative sites. However, amendments to workstation layout and reduction of space would require capital investment to realise the benefits of a reduction in the space allocated per workpoint.

The opportunity to consolidate Council staff’s office environments into a centralised location is a matter that should be further investigated. Currently staff occupy a number of buildings in town centres that could be re-purposed for other uses, such as the Dee Why Civic Centre, Manly Town Hall and the Mona Vale Civic Centre. To enable this centralisation to occur would require either the construction of office accommodation on alternate Council land holdings, or the lease or purchase of additional office accommodation, all of which require both capital and operational funds. It is proposed that this matter be further explored at the future Councillor Property workshop.

Vuko Place, Warriewood

As previously noted, Vuko Place was highlighted in the notice of motion as a particular site to focus on given part of the site is due to be vacated later this year. As such a further analysis has been provided for this site.

Council’s Vuko Place holding comprises 2 distinct components: (a) 3 levels of commercial strata office space, and (b) a strata warehouse unit.

Levels 1 to 3 of 5 Vuko Place, Warriewood comprises approximately 1,770m² of commercial office space. This area currently accommodates around 100 staff. It should be noted that the divestment of the Vuko Place office space would result in the requirement to identify and secure alternate office space suitable to accommodate the staff currently based in this location (currently estimated at circa 100 staff).

Unit 9 of 5 Vuko Place, Warriewood - the warehouse includes 685m² of ground floor space, 367m² mezzanine, and 250m² of parking, totaling 1,302m². It is partially occupied by the Bridge Club on a holdover basis, pending the completion of the new Warriewood Community Centre. Once vacated, the warehouse will be largely unutilised, aside from a small staff gym facility and storage space for Council use.

Council’s early assessment indicates potential for revenue generation through either divestment or lease of the Vuko Place holdings.

Opportunity 1: Sell the Warehouse Component:

· Market analysis suggests the warehouse could be sold for between $3 million and $4 million, noting that there will be costs associated not included in these figures such as agent fees and legal fees.

Opportunity 2: Sell the Office Component:

· A full divestment of the 3 commercial floors could yield between $6 million and $8 million. Alternatively, consolidating staff into 2 levels and selling a single floor may achieve approximately $2 million to $3 million.

Opportunity 3: Lease the Warehouse Component:

· If retained, the warehouse component could generate in the order of $180,000 per annum in gross rental income according to market research and discussions with a local agent.

Opportunity 4: Lease the Office Component:

· Alternatively, lease incomes could be generated from the office components at ranges dependant on which portions of the holding are offered up for rent.

Accommodation Plan

Council’s Property team is currently developing an Accommodation Plan to guide the future use of administrative office space. The plan will focus on aligning space with organisational needs, improving utilisation, and enhancing employee experience.

Key deliverables will include:

· Assessment of available office space and configuration

· Consideration of staff wellbeing in workspace design

· IT infrastructure needs to support flexible and remote work

· Location suitability and accessibility

· Integration with Council’s Flexible Work Guidelines

· Financial implications of potential changes

· Analysis of staff occupancy patterns and operational requirements across different business units and locations.

The objectives of the Accommodation Plan include:

· Rationalisation of office space to accommodate the current and future needs of the growing workforce incorporating future workplace practices.

· Enhancement of collaboration and communication among employees through office configuration and design and appropriate IT solutions.

· Implementation of flexible work arrangements to support a modern and adaptable work environment.

· Incorporation of sustainability principles in the design and usage of office spaces.

· Improvement in technology infrastructure to facilitate remote work and digital collaboration.

Work on the Accommodation Plan is currently underway and is anticipated to be completed in 2025.

Consultation

The subject of this report does not require consultation at this stage.

Timing

Options involving the sale or lease of Unit 9 at Vuko Place, Warriewood require the current lessee, the Bridge Club, to vacate which is dependent on the completion of the Warriewood Community Centre (into which they are relocating), assumed to be late 2025. The leasing or divestment of any other facility currently utilised as workspace for Council staff would require alternate solutions to be put in place prior to this occurring.

Financial Considerations

The recommendations of this report do not result in any change to the existing Council budget.

Governance and Risk Considerations

Although there may be opportunities to increase desk capacity within existing office sites, this would require changes to current fit-outs. Transitioning to more open-plan configurations with appropriately sized meeting spaces would involve significant capital investment.

Environmental Considerations

The subject of this report has no adverse environmental implications for Council.

Social Considerations

The subject of this report has no adverse social implications for Council.

Link to Strategy

This report relates to the Community Strategic Plan Outcomes and Goals:

· Vibrant local economy - Goal 13 Our businesses are resilient, well-connected and thrive in an environment that supports innovation, entrepreneurialism and economic growth.

· Good governance - Goal 19 Our Council is transparent and trusted to make decisions that reflect the values of the community.

· Good governance - Goal 20 Our Council is proactive, and efficiently and effectively responds to, and delivers on, the evolving needs of the community.

Reporting team	Property, Buildings & Beach Services
TRIM file ref	2025/199412
Attachments	Nil

Item 13.4 Northern Beaches Council MEETING - 17 June 2025

ITEM 13.4

Response to Notice of Motion No 44/2024 - E-Bikes and E-Scooters

Purpose

The purpose of this report is to respond to Resolution No. 64/2025 relating to the findings of the NSW e-bike inquiry and staff recommendations for further advocacy.

Executive Summary

· In response to Notice of Motion No. 44/2024 regarding e-bikes and scooters, Council resolved (064/2025) at its ordinary meeting on 18 March 2025 that a report be prepared on the findings of the recent NSW e-bike inquiry and any staff recommendations for further advocacy.

· Notion of Motion No. 44/2024 requested that Council write to the Premier, Leader of the Opposition, Ministers and Shadow Ministers for Transport and Roads and all local State MPs calling for proper legislation on a number of matters relating to the use of e-bikes and e-scooters, and oppose the State Government’s announcement to legalise e-scooters and until there is better regulation of e-bikes.

· Council first recognised e-bikes as a community concern on the Northern Beaches in 2022, and in 2023, with input from NSW Police, began providing information via website and social media, lobbying the NSW Government for changes in NSW road rules, and engaged a behavioural science consultant to help develop an e-bike safety campaign for youth and parents.

· In June 2024, a legislative inquiry (terms of reference in Attachment 1) was established to review and report on the use of e-scooters, e-bikes and related mobility options, to which Council made submission No. 141 (Attachment 2) in August 2024.

· The Inquiry findings and recommendations (Attachment 3) were released by the Legislative Council on 13 February 2025, and the Government’s response (Attachment 4) was released on 13 May 2025.

· The Government response is lacking detail in some areas and, whilst most issues raised in Council’s submission have been supported, there still is a lack of clear change to enforcement, the implementation of a speed limit for bicycles (including e-bikes) on shared paths, and a defined age limit for e-bike usage.

RECOMMENDATION

That Council:

1. Note the Recommendations Report from the NSW Inquiry into the use of e-scooters, e-bikes and related mobility options.

2. Note the Response Report from the NSW Government.

3. Staff undertake a review of the Shared Transport Policy to include further e-mobility options.

4. Write to the Premier and Minister for Transport requesting they urgently progress the remaining recommendations of the report, including suitable legislative changes, to allow enforcement by NSW Police.

5. Work with Transport for NSW and other NSW Government agencies to manage e-mobility in the safest possible manner for the residents of the Northern Beaches.

Background

Council first recognised e-bikes as a community concern on the Northern Beaches in 2022, and since then, Council has seen a rapid growth in e-bike usage. In 2023, Council started collaborating with NSW Police, providing information to community via website and social media, lobbying NSW Government for changes in NSW road rules.

Although e-bike usage brings some great benefits, Council has grappled with the risks of increased bicycle activity at excessive speeds on footpaths, with key concerns raised by Council including:

· the rapid growth of young people under 16 years riding e-bikes, particularly the 'fat tyre' model, on footpaths which is legal under both existing and proposed legisaltion

· concerns for the safety of both pedestrians and riders 'due to the speed, size and quietness of these devices', noting some riders can be as young as 10 years old

· the limited knowledge or understanding of road rules by the young riders, riders who may also lack cognitive ability or empathy to appropriately evaluate and manage risks’

· the prevelance of illegally modifying e-bikes, enabling the ability to travel above 40 km/h

· the removal of warning bells, which are required by law

· riders not wearing helmets or wearing helmets incorrectly

· pillion/additional passengers.

The rapid uptake of e-mobility devices has meant that the implementation of laws and infrastructure have not kept up. This has forced Council, instead of embracing the opportunities that e-mobility devices represent, to be reactive and addressing problems after they arise. The e-mobility usage needs to be supported by safety initiatives, enforcement and adequate infrastructure.

In 2024, the Council devised an e-bike safety education campaign using information from behavioural insights provided by Council’s research consultants. The campaign was rolled out over 8 weeks and included broad media coverage with an estimated 2.78 million viewers, a broad social media campaign, physical signage across 60 locations on our bike network, and collaboration with schools, bike shops, Bicycle NSW and local Police. Following the recommendations of the behavioural change specialists, a campaign was developed with a short and simple code, similar to the 'surfers code’ being 'Slow down to walking pace when others are on the path, Ring your bell and call 'on your right' to let others know you are approaching and Be ready for sudden changes – people, pets and prams can be unpredictable'.

To address concerns related to the rapid increase of e-mobility devices in NSW, the ‘Use of e-scooters, e-bikes and related mobility options inquiry (the Inquiry)’ was established in June 2024, to enquire into and report on the use of e-scooters, e-bikes and related mobility options. The Council made a submission (No.141) into this Inquiry in August 2024. The Inquiry findings and recommendations were released by the Legislative Council on 13 February 2025, followed by the NSW Government’s response to the Inquiry on 13 May 2025.

Council’s e-bike campaign was considered crucial in prompting the Inquiry, because it was the first of its kind. The campaign was successful, with a comparison between the 9 months before the campaign and the 9 months after showing that the complaints plateaued, despite a steep increase in e-bikes in the community.

Discussion

Timeline

A timeline of Council’s involvement in e-bikes leading up to the Inquiry is presented below:

· 2022: Council first recognised e-bikes as a community concern on the Northern Beaches

· 2023: Council collaborated with Police, provided information to community via website and social media, lobbied NSW Government for changes in NSW road rules and engaged behavioural science agency to help develop an e-bike safety campaign for youth and parents

· 13 May 2024: NSW Police Traffic and Highway Patrol Command Northern Sydney Sector raised the need for tighter regulations on e-bikes at the launch of Northern Beaches Council’s ‘Know The Code’ e-bike campaign, the first behavioiural change campaign with e-bikes in Australia

· June 2024: The Inquiry established to enquire into and report on the use of e-scooters, e-bikes and related mobility options

· August 2024: Council made a submission (No. 141) to the Parliamentary Inquiry into the use of e-scooters, e-bikes and related mobility options

· 13 February 2025: Legislative Inquiry findings and recommendations released by the Legislative Council

· 13 May 2025: The NSW Government's response to the legislative inquiry is released.

Council’s submission into the Inquiry

Council made a submission into the Inquiry on 16 August 2024. In the submission, key opportunities to reform the regulatory framework to achieve better and safe outcomes for riders and the community were raised, including requests for:

· Clear unambiguous legislation to enable police enforcement with current legislation too ‘grey’ and difficult to enforce

· Speed management for riders utilising footpaths including mechanisms to prevent the overriding of speed-limiting settings on the e-bikes. This would establish legal requirements to slow down around pedestrians, giving them right of way and exercising caution around children and pets

· A framework to define types of devices informed by device size, weight, power output, and maximum speed capabilities

· Manufacturing standards and import regulations to align with a framework of device types

· Mandatory education to ensure riders have appropriate level of knowledge and awareness of road rules and behaviours to protect the safety of both the rider and of pedestrians

· Consider appropriate minimum age for riders of various device categories and riding locations (i.e. footpaths and shared paths)

· Pedestrian crossings - Most bike riders rarely walk their bikes across the crossing as required under legislation (unless signs indicate otherwise). The weight and size of the e-bike makes it more difficult for riders to dismount and walk their bikes. With the introduction of e-bikes this raises an even greater hazard for motorists with the speed that e-bikes can ‘suddenly’ appear in front of them giving little time to brake.

The inquiry (published in February 2025)

The ‘Use of e-scooters, e-bikes and related mobility options (Report 25) Inquiry’ by the Legislative Council was released in February 2025. The Inquiry presented three key findings:

· Finding 1: The proliferation of 'fat bikes' and associated rider behaviour is raising serious safety concerns for pedestrians in several New South Wales local government areas. The committee noted the current ambiguity surrounding these bikes, including a lack of a clear definition and uncertainty regarding their permissibility, which hinders effective regulation and enforcement.

· Finding 2: That implementing a bureaucratic registration system could create barriers to adoption and limit accessibility of e-mobility devices, especially for low-income users.

· Finding 3: Shared e-bike operators claim to have the technology and adequate staffing to manage parking and pathway obstruction issues. However, the committee finds that these problems persist and are increasingly impacting public amenity and safety, demonstrating a disconnect between operator claims and the reality on the ground.

The Inquiry also presented a total of 34 legislative recommendations including:

· A speed limit of 15km/h for e-bike riders on footpaths

· Clear legal guidelines to enable enforcement of risky and illegal behaviour, including illegally modified bikes

· Update of the Road Rules and implementation of a Driver Knowledge Test to include elements relating to e-mobility device use

· Education campaigns to target young riders

· Compulsory insurance for owners/riders

· Priority of funding and policies that promote mode shift to active travel

· Reduction of on-road speed limits to 30/40 km/hour.

The NSW Government response to the inquiry

The NSW Government response to the Inquiry was presented in May 2025. Although the response is vague in some areas, most issues raised in Council’s submission were supported including:

· Review the definition of an e-bike and potential for footpath riding in the NSW Road Rules

· Establish safety standards and risk-based protocols for the use, storage and charging of e-mobility device batteries, to reduce the likelihood of, for example, battery fires

· Boost rider and road user education, with new voluntary tests, campaigns, and updates to in-school road safety education programs and the Driver Knowledge Test online

· Provide Get NSW Active funding to support development / delivery of critical infrastructure (but without a promise of a greater pool of funds)

· Provide targeted support to help Councils effectively manage services and usage

· Explore options for e-micromobility insurance.

Key areas that were included in Council’s submission, but were not addressed in the Government response, include:

· A clear change to enforcement, with the response providing a vague statement that TfNSW will ‘explore opportunities to enhance enforcement’, with little direction for the NSW Police

· The implementation of a 15km/h speed limit for bicycles (including e-bikes) on shared paths (recommendation ‘noted for review’ for footpaths)

· Age limit (16 years and over) and defined usage areas for e-scooters were addressed, but not for the use of e-bikes on footpaths.

Key risks

Based on the review of the NSW Government response, it is noted that little has been done to assist enforcement, with a vague response stating that TfNSW will explore opportunities to enhance enforcement, with little direction for the Police. Council has identified the following key risks going forward:

· Both Police and Council are limited by legislative gaps related to:

- no speed limits for bicycles on footpaths

- youth under 16 are allowed to ride a bicycle on a footpath, regardless of type, size and weight of the bike.

· The Federal Government needs to provide improved regulation on the importation of e-bikes, in their direction on how these devices are adding to the first and last mile solutions available to our community.

· The outcome to progress reforms to legalise the use of e-scooters in public places does introduce new risks to Council.

Next steps

The NSW Government will progress the proposed regulation of e-scooters and road rule changes, which will be supported by communication initiatives to build awareness of all community members.

Options for Council going forward include:

· further lobbying of the NSW Government to implement the legislative recommendations

· working with TfNSW to implement the supported recommendations

· continue community education via website and social media, including addressing the new risk of e-scooters

· continue to work with schools/Department of Education and Police

· continue to submit applications for active travel funding

· prioritise separated bike paths where feasible and financially viable

· continue to update the local bike network subject to funding

· review its Shared Transport Policy to include further e-mobility options.

Consultation

Consultation has been undertaken with several community members, stakeholders and focus groups since the start of the e-bike increase, from the middle of 2021.

In 2021, the Council undertook surveys on adult residents on general bike safety awareness, which contributed to the development of the e-bike education campaign.

During 2023, consultation was undertaken with several stakeholders such as the Northern Beaches Youth Advisory Group, behavioral changes specialists, bike shops and focus groups such as youth and adults on e-bikes.

Periodic communication with high schools, to gain insight into changes in student e-bike situations, and with local bike shops, to gain insights into changes in e-bike sales, was held between 2022 and 2024. There is also ongoing consultation between Council and Bicycle NSW on the matter. Community stalls on e-bikes were held on several occasions throughout 2024.

Timing

The recommendations in the NSW Government’s response are vague and generally non-committal about whether or how the recommendations will be implemented. Since there are no specific dates on any of the Inquiry recommendations, it is difficult for Council to forward plan accordingly.

Financial Considerations

Financial considerations for Council moving forward include ongoing costs towards continued educational campaigns, to address the behaviour of riders. Noting that the Road safety Function is partially funded by TfNSW it is likely that this will become an activity that the Local Government Road Safety Program will contribute funding to at some point in the future.

Governance and Risk Considerations

With the lack of commitment by the State Government to address e-bike safety in the short term, with clear rules that allow clear enforcement, Council has the obligation / duty of care to residents to address e-bike safety as best it can via education and improved infrastructure.

Going forward, a key risk consideration for Council is also to monitor for any increase in crashes between e-mobility users and pedestrians and between e-mobility users and motorists on Northern Beaches, if the uptake of e-mobility devices keeps increasing.

Environmental Considerations

The proposed recommendations in this report will result in a beneficial environmental outcome by encouraging the uptake of more sustainable transport options for the community.

Social Considerations

The recommendations in this report will have a positive social outcome for the community through improved direction on legislation around e-mobility use and safety for the community. The NSW Government response does however lack commitment around enforcement, the implementation of speed limits for e-bikes and age limits for users. This, along with the outcome to progress reforms to legalise the use of e-scooters in public places, introduces new considerations for Council. Another social consideration is the negative impact of increased e-bike usage, being that many young people are not getting the exercise of walking or pedal riding to places.

Link to Strategy

This report relates to actions in both the Move Transport Strategy and the Road Safety Plan:

· MOVE – Northern Beaches Transport Strategy 2038’s objective: ‘Expand the footpath and shared path networks to improve connectivity and safety that makes walking and cycling attractive alternatives to the car’

· Road Safety Plan’s objective ‘Implement behavioural change campaigns on bicycle safety based on analysis of current research’ and ‘Educate drivers on the importance of safe passing distances for bicycle riders’.

This report relates to the Community Strategic Plan Outcomes and Goals:

· Community and belonging - Goal 8 Our community feels safe and supported.

· Transport, technology and connectivity - Goal 16 Our integrated transport networks meet the needs of our community and reduce carbon emissions.

· Transport, technology and connectivity - Goal 17 Our community can safely and efficiently travel within and beyond the Northern Beaches.

Reporting team

Transport & Civil Infrastructure

TRIM file ref

2025/355856

Attachments

⇨1 Terms of reference - PC 6 - Inquiry into the use of e-scooters, e-bikes and related mobility options - updated 11 December 2024 (Included In Attachments Booklet)

⇨2 0141 Northern Beaches Council - submission (Included In Attachments Booklet)

⇨3 Report No 25 - Portfolio Committee No. 6 - Transport and the Arts - Use of e-scooters, e-bikes and related mobility options (Included In Attachments Booklet)

⇨4 Government response - Report No. 25 - Portfolio Committee No. 6 - Transport and the Arts - Use of e-scooters e-bikes and related mobility options (1) (Included In Attachments Booklet)

^{^[2]} The latest figures from the Palestinian Ministry of Health in the occupied West Bank as of 3 February 2025.

^{^[4]} OHCHR update of database of all business enterprises (PDF). Office of the UN High Commissioner for Human Rights (OHCHR). 30 June 2023.

Program Year	Funding Status	Site Locations
N/A	Complete	- Dee Why CBD to Beachfront - Manly CBD
2024/25	Funded for Delivery	- Dee Why – Fisher Road to Pittwater Road - Beacon Hill – West Precinct - Frenchs Forest – South Precinct - North Balgowlah – Stages 1 & 2 - Palm Beach to Avalon Beach Precinct - Narrabeen to Mona Vale Precinct
2025/26	Funded for project development only, not implementation	- Collaroy Basin - Eastern Hill – Manly - Freshwater Central - Balgowlah Heights and Clontarf - Belrose Central
2026/27	Unfunded	- Freshwater Beach - Beacon Hill East - Narraweena to Cromer - Collaroy Plateau - Fairlight / Manly West - Warriewood Valley - Avalon West
2027/28	Unfunded	- Mona Vale to Newport Beach - Terrey Hills - Frenchs Forest – North - Allambie Heights to Beacon Hill - Seaforth to North Balgowlah - Dee Why – West Precinct
2028/29	Unfunded	- North Manly to Queenscliff - Bilgola Beach - Mona Vale – West Precinct - Cromer Heights - Allambie – East Precinct - Seaforth - Frenchs Forest – West Precinct
2029/30	Unfunded	- North Curl Curl - Belrose – North Precinct - Forestville – North Precinct - Fairlight – East Precinct - Manly Lagoon - Newport to Clareville
2030/31	Unfunded	- Forestville to Killarney Heights - Mona Vale to Church Point - Elanora Heights to North Narrabeen - Beacon Hill – North - Davidson- Manly Vale to Balgowlah

a.	Dee Why Fisher Road to Pittwater Road	$389,280
b.	Frenchs Forest South Precinct	$650,000
c.	Beacon Hill West Precinct	$440,000
d.	Palm Beach to Avalon Beach Precinct	$650,000
e.	Narrabeen to Mona Vale Precinct	$1,200,000
f.	North Balgowlah Stages 1&2	$550,000

Reporting team	CEO
TRIM file ref	2025/360058
Attachments	Nil

Reporting team	Environment & Resilience
TRIM file ref	2025/300169
Attachments	⇨1 Council Policy - Bushland and Biodiversity - 2025 - Proposed Updates (Included In Attachments Booklet)

Reporting team	Development Assessment
TRIM file ref	2025/359004
Attachments	⇨1 Draft Community Participation Plan 2025 (Included In Attachments Booklet)

TRIM file ref	2025/327859
Attachments	⇨1 2024/25 Residential and Business Ordinary Rates by post code (Included In Attachments Booklet)