Agenda of Northern Beaches Council Meeting

Item 9.1 Northern Beaches Council MEETING - 21 April 2026

9.0 Corporate Services Division Reports

ITEM 9.1

Public Exhibition - Draft Delivery Program 2026-2030, Operational Plan 2026/27, Long-term Financial Plan 2026-2036

PURPOSE

The purpose of this report is to seek Council’s endorsement to publicly exhibit the draft Delivery Program 2026-2030, Operational Plan 2026/27, and Long-term Financial Plan 2026-2036 for a minimum of 28 days.

Executive Summary

· The updated Delivery Program, Operational Plan and Long-term Financial Plan have been prepared for public exhibition to seek community feedback ahead of Council endorsement and adoption by 30 June 2026.

· The 2026/27 draft budget proposes expenditure of $588 million including a capital works program of $125 million for new and improved community assets.

· The budget includes an additional $35 million from the IPART-endorsed Special Variation to fund:

- $15 million for improvements to roads, footpaths and stormwater infrastructure.

- $11 million to improve facilities, town centres, rockpools, wharves, playgrounds and increase grass mowing schedules.

- $6 million to expand tree maintenance and planting, compliance services, environmental and natural risk reduction programs and natural disaster management.

- $3 million towards future projects – including the female friendly facilities program, wharf and town centre improvements in 2027/28.

· The 2026/27 rates notice for a typical residential property will increase by $56 per quarter, of which $13 relates to the Domestic Waste charge, $15 to the rate peg and $28 to the Special Variation program to improve services.

· An operating surplus before capital grants and contributions of $19.8 million is forecast for the 2026/27 financial year, along with a stronger working capital position and achievement of the Office of Local Government’s financial and asset performance benchmarks.

· Heightened caution is required amid economic volatility and upward pressure on prices, as Council continues to assess the financial impacts of increased fuel and related costs, with contingencies in place through working capital and any necessary adjustments to be addressed through future budget reviews.

RECOMMENDATION

That the draft Delivery Program 2026-2030, Operational Plan 2026/27 (including Fees and Charges and Pricing Methodology), and Long-term Financial Plan 2026-2036 be placed on public exhibition for a minimum of 28 days with the outcome reported to Council.

Background

Following the ordinary local government election in September 2024, Council in accordance with the Local Government Act 1993 (Act) and Integrated Planning and Reporting Guidelines (September 2021) reviewed the Council’s Integrated Planning and Reporting Framework (IP&RF) in consultation with the community. Northern Beaches Council’s IP&RF comprises:

· Community Strategic Plan (CSP) - the highest-level plan that a council will prepare with an outlook of at least 10 years. The CSP identifies the community’s main priorities and aspirations for the future and strategies for achieving these goals.

· Resourcing Strategy - the people, asset and financial resources available to Council to support progress towards the goals in the CSP. It includes a 10-year Long-Term Financial Plan, Asset Management Strategy and Plan as well as a 4-year Workforce Management Strategy.

· Delivery Program - the principal activities Council will undertake in response to the CSP goals over 4 years.

· Annual Operational Plan - the individual projects that will be undertaken in that year.

Figure 1: Integrated Planning and Reporting Framework

Section 405 of the Act requires the annual operational plan to be adopted by 30 June. Northern Beaches Council also takes the opportunity to roll forward the Delivery Program a year to show a 4-year program.

While other elements of the Resourcing Strategy are reviewed in the year following an ordinary local government election, the Long-term Financial Plan is reviewed annually to ensure financial planning for the annual Operational Plan and Budget are sound.

These documents must be placed on public exhibition for a period of at least 28 days and comments from the community must be considered prior to the endorsement/adoption of the IP&R documents (Integrated Planning and Reporting Guidelines (2021)).

DRAFT DELIVERY PROGRAM AND OPERATIONAL PLAN

The Delivery Program 2026-2030 continues to respond to community priorities identified through community engagement.

The document flows directly from the CSP with the 16 key Council services mapped from the community outcome to the goals that they support.

For each service, the document shows the following elements for the next 4 years:

· Ongoing services and programs

· Operational and capital projects

· Performance measures, with revised targets

· Income and expenditure.

The Operational Plan 2026/27 supports the continued delivery of high-quality services and key operational projects to ensure better outcomes for our community. It includes 70 operational projects covering the development and implementation of key strategies and plans as well as service enhancements supported by the Special Variation in rates.

Service enhancements in 2026/27 include the extension of operating hours of lifeguards at Dee Why Beach and at other beach locations based on assessment of risk to keep our beaches safe; additional resources directed to Compliance Services to proactively monitor building sites, vegetation removal and high-risk environmental matter; as well as improvements to our environment with additional funding for mowing, bush regeneration and maintenance and planting of trees.

Council is gearing up to deliver its largest ever investment in community infrastructure. The capital works program in 2026/27 is $125 million including:

· $36.8m improving road assets and includes $12.8m for resurfacing roads

· $14m improving sporting facilities including the completion of the Warringah Recreation Centre

· $13.3m on community facilities including amenities at Freshwater Beach and Boondah Reserve

· $13m improving foreshores at various locations, including the Palm Beach Rockpool and South Collaroy foreshore

· $10.1m on priority stormwater management works to reduce flooding and pollution

· $6.5m on new and improved reserves and parks, including Warriewood, Clontarf, Frenchs Forest

· $4.3m on new and improved footpaths across 18 suburbs

· $4.3m town and village centres including works at Balgowlah and Avalon

· $2.9m continuing the Collaroy-Narrabeen coastal protection works

· $1.6m on new and improved playgrounds, including Collaroy Plateau

The Operational Plan 2026/27 contains 89 performance measures with targets and 10 workload measures to monitor the effectiveness of Council’s operations. The measures are reported to the community in the Quarterly Report (38 measures) and at the end of the year in the Annual Report (79 measures).

Minor adjustments have been made to the suite of measures from those in the Operational Plan 2025/26. This includes the retirement of 2 measures and addition of 2 new measures summarised below:

· Retired - Average time to prepare assessment reports for a regionally significant development application and refer to the Sydney North planning panel (days) – Regional Panels are being disbanded in 2026

· Retired - Number of sessions of youth and family counselling - Council no longer delivers youth and family counselling services

· New - Planning certificates issued within 2 working days of application

· New - Customer Satisfaction with CRMs at closure (Voice of the Customer) – this is aggregated result of all Voice of the Customer surveys across Council.

Targets for 37 performance measures have also been adjusted with 32 targets strengthened and 5 reduced. The performance measures with reduced targets are:

· Number of invasive pest animals controlled to protect native flora and fauna – adjusted to account for suitability of control sites and the difficulty in quantifying other control measures such as calicivirus

· Learn to swim attendance – adjusted as the methodology to count attendees differed across the aquatic centres and resulted in an inflated target

· Satisfaction with Council’s key community events – the measure was increased from 80% to 90% in 2025/26 based on performance in 2024/25. This has been reduced to 85% which is more consistent with industry practice

· Number of community road safety events/sessions held – adjusted to reflect the 2026/27 program which is focused on speeding. The prior years program was higher due to a focus on e-bike safety and joint stalls with Police

· Growth in active travel network - new works (m) (footpaths, shared paths and bike paths) – adjusted to reflect the 2026/27 program. A higher target was in place while the Frenchs Forest Active Transport Shared Path was delivered.

DRAFT LONG-TERM FINANCIAL PLAN

Council’s Long-term Financial Plan (LTFP) is updated annually as a rolling 10-year projection of Council’s income and expenditure, assets and liabilities and cashflow. The LTFP guides decision making and demonstrates how the objectives of the 10-year CSP and commitments of the Delivery Program and Operational Plan will be resourced and funded.

Financial sustainability remains a major challenge for NSW councils, largely due to the NSW Government’s rate peg, which constrained rate increases to well below inflation for several years. This resulted in a growing funding gap and increased pressure on councils’ ability to maintain infrastructure and service levels. These pressures were further compounded by the financial impacts of the COVID‑19 pandemic and a series of natural disasters.

The most recent LTFP, adopted by Council in June 2025, identified these challenges and outlined pathways toward improved financial sustainability. An IPART endorsed Special Variation to increase rates over a two-year period alongside an Improvement Plan has provided a key mechanism to support this transition.

Two scenarios are explored in the draft 2026-2036 LTFP:

· Scenario 1 ‘Delivery Program Model’ – Special Variation to maintain services

- This model is consistent with the draft Delivery Program 2026-2030 and Council’s Special Variation to rates program.

- In this model infrastructure expenditure is increased in line with the requirements of the Asset Management Plans and working capital is strengthened to provide the capacity to respond to unexpected events. Noteworthy is the increased expenditure in renewing road, footpath and stormwater assets which doubles from 2025 expenditure levels. This model produces a stronger operating result and asset management ratios along with improved outcomes for the community.

- Additional funding is also provided to expand environmental and natural risk reduction programs and provide capacity to manage an increasing number of natural disasters.

- To provide funding for this model, rates income increases $17 million above the 4.1% rate peg in the 2026/27 year and then rate peg each year following. This uplift brings the total Special Variation fund to $35 million ongoing.

· Scenario 2 ‘Alternative Model’ – Rate peg only

- Under this model, rates increase annually in line with the rate peg, which is intended to function similarly to CPI for local government. While the first year of the Special Variation in 2025/26 increased funding by $16 million per annum, this uplift is insufficient to close the funding gap that developed over the preceding 4 years. During that period, rate increases were limited to approximately half the rate of inflation, and the additional revenue does not address the existing backlog in asset management requirements. As a result, this structural funding issue remains unresolved.

- Income levels are not sufficient to fund operating expenses, invest in the ongoing renewal of infrastructure assets and provide the necessary working capital to manage unexpected events (such as the current escalating fuel and associated costs). 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.

The following graph illustrates the difference in the operating result (excluding capital grants and contributions) for the 2 scenarios. A sufficient operating surplus is essential to invest in infrastructure assets, repay loans, provide for future obligations and rebuild working capital to respond to unforeseen events like natural disasters and emerging opportunities.

Performance indicators – Long-term Financial Plan Scenarios

Special Variation to Rates

Council’s ability to maintain services and community infrastructure at the required standard has come under increasing pressure. Prior to the implementation of the Special Variation in the 2025/26 year, this strain was driven by several key factors:

1. Rate peg constraints: IPART sets an annual cap on rate increases, known as the rate peg. In recent years, the rate peg has been less than the half the rate of inflation. This has resulted in a substantial and ongoing structural funding gap, equating to approximately $24 million per year in foregone rates income prior to the Special Variation. Without corrective action, this permanently eroded Council’s rate base.

2. Extraordinary events: A series of major events required significant reprioritisation of Council resources, including the COVID‑19 pandemic ($41 million cost) and 8 natural disasters ($16 million total cost, with $10 million recovered to 2025 through the Federal Government’s Disaster Recovery Funding).

3. Rising State Government charges: The Emergency Services Levy has increased by $3 million per year, representing a 50% increase.

4. Infrastructure investment needs: As identified in the Asset Management Plan, maintaining and renewing existing infrastructure requires an additional $15.1 million annually. And a further $10.4 million per year was needed to deliver service improvements and new infrastructure to meet community needs.

Council has implemented a range of initiatives to mitigate cost pressures in recent years. While ongoing efficiency measures and service improvements continue to be actively pursued, these actions alone are insufficient to address the scale of the long‑term financial challenges.

In 2025, IPART endorsed a Special Variation to increase Council’s rates income to:

· secure long term financial sustainability and address a backlog in infrastructure and maintenance requirements

· expand environmental and natural risk reduction programs and provide capacity to manage an increasing number of natural disasters

The Special Variation is being phased in over 2 years, comprising a 12.1% increase in the 2025/26 financial year, followed by an 11.7% increase in the 2026/27 financial year. These increases replace the standard rate peg for both years, which would otherwise have resulted in rate increases of 3.8% in 2025/26 and 4.1% in 2026/27. In 2026/27 year, the typical residential ratepayer will contribute an additional $28 per quarter above the rate peg towards the special variation program of works.

The draft IP&R documents (Delivery Program, Operational Plan and Long-Term Financial Plan) have been developed based on maintaining existing services and fully funding the renewal and maintenance of community infrastructure. Both rates income and expenditure assumptions reflect the IPART endorsed rate 11.7% rate increase for the 2026/27 financial year.

Productivity and Improvement Plan

Council is committed to realising productivity savings in its operations to reduce the burden on rates.

Over the next 3 years Council seeks to achieve ongoing operational savings totalling $5 million and in the next 5 years one-off capital savings totalling $10 million from the following:

Initiative	Savings
Initiative	Operational by year 3 (ongoing)	Capital by year 5 (one off)
Service rationalisation – adjusting the level of service of discretionary services	$2.14m	$0.33m
Workforce management - improve organisational design to ensure a cost effective and optimal structure	$1.7m	-
Property rationalisation – review the property portfolio to transfer underutilised assets from property to cash	-$0.2m (loss of income)	$10m
Fleet optimisation - rationalise the vehicle fleet	$0.58m	$0.04m
Energy efficiency – reduce energy consumption and associated costs	$0.75m	-
TOTAL	$4.98m	$10.37m

Of the above initiatives $1.6 million is being delivered in the 2025/26 budget and a further $1.2m in operational savings is proposed in the draft 2026/27 budget. Improvements forecast in the 2026/27 year include increased income generation through advertising bus shelters, savings through the rollout of the digital parking solution and other operational efficiencies.

Service reviews are also part of Council’s Productivity and Improvement Plan. The objectives of a services review is to:

· assess performance including efficiency (how well it uses its inputs) and effectiveness (how well it achieves its outcomes) to deliver current service levels

· understand community and customer needs and the relative importance of the service

· understand the financial impact of the service on rate subsidisation

· consider the balance between rate of subsidisation of the service against relative importance

· improve services by comparing with other high performing organisations and/or industry research.

Service reviews programmed for completion in 2026/27 are:

· Environmental Education and Community Sustainability

· Strategic and Place Planning

· Economic Development and Tourism

· Parking Operations

· Library

Throughout the year additional reviews may be initiated in response to changes in the operating environment.

DRAFT BUDGET OVERVIEW AND FINANCIAL FORECASTS

· Draft Budget 2026/27

The 2026/27 draft budget projects total expenditure of $588 million, including a capital works program of $125 million. The proposed capital works program includes $77 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 $48 million will deliver high priority new assets to the community, primarily funded by grants and development contributions.

The budget forecasts an operating surplus before capital grants and contributions of $19.8 million, which includes a $13 million investment in replacing Council’s core operating systems. A further $1.6 million in loans will be repaid and no new loans are proposed.

As indicated by the LTFP, key financial and asset performance ratios are on a stronger path with the Special Variation. All financial and asset management ratios are expected to meet industry benchmarks.

Net cashflow will be a negative $18 million in 2026/27, primarily due to the replacement of Council’s core operating systems and capital expenditure funded by grants and contributions already received by Council. Net cashflow will return to a positive position from the 2028/29 financial year.

The economic environment has shifted dramatically during the past month. Fuel related costs have risen sharply, driven by geopolitical disruptions and higher global oil prices. These increases are now flowing through to Council’s operating costs, particularly in:

· Waste collection and processing

· Road and civil works

· Fleet operations and transport dependent services

· Contracted services with fuel escalation clauses

We will continue to monitor this situation.

Heightened caution is needed in the coming months amid economic volatility and upward pressure on prices. Council is continuing to assess the financial impact of this situation, which may result in unfavourable adjustments as part of future budget reviews. At this stage, Council has made contingency provisions through working capital, and we will continue to closely monitor the movements in prices.

Draft 2026/27	Result	Forecast	Budget	Projected	Projected	Projected
Budget Snapshot	2024/25	2025/26	2026/27	2027/28	2028/29	2029/30
	$ 'mil	$ 'mil	$ 'mil	$ 'mil	$ 'mil	$ 'mil

Operating budget
Income	478	487	506	516	527	537
Operating expenses	(416)	(444)	(463)	(471)	(485)	(499)
Operating result - surplus / (deficit)	61	43	43	45	43	38
Less grants and contributions for capital projects	(44)	(35)	(23)	(19)	(17)	(12)
Operating result - excl capital income - surplus / (deficit)	17	9	20	25	26	26

Capital expenditure
New works	(63)	(40)	(48)	(39)	(22)	(23)
Renewal works	(36)	(64)	(77)	(66)	(68)	(70)
Total capital expenditure	(98)	(104)	(125)	(105)	(90)	(93)

Loans
Loan repayments in year	(5)	(3)	(2)	(2)	(2)	(2)
Loans drawndown in year	13	-	-	-	-	-
Loans balance on 30 June	17	15	13	12	10	8

Cash and investments
Externally restricted	64	66	51	54	60	60
Internally restricted	122	100	92	84	91	97
Unrestricted	45	47	52	53	55	59
Total cash and investments	230	213	195	191	207	216

Cashflows
Net cash from operating activities	106	88	107	101	106	103
Net cash from investing activities*	(82)	(102)	(123)	(102)	(87)	(91)
Net cash from financing activities	7	(4)	(3)	(3)	(3)	(3)
Net increase / (decrease) in cash	30	(17)	(18)	(4)	16	9
* Exclude purchase and sale of investments

Financial position
Assets	6,228	6,399	6,573	6,740	6,916	7,086
Liabilities	(191)	(181)	(181)	(176)	(178)	(181)
Net Assets	6,037	6,218	6,392	6,564	6,738	6,905

Numbers may not sum precisely due to rounding

Draft Revenue Policy

The estimated change in rates and annual charges, which represent the rates notice, is illustrated in the following table. If the proposed Special Variation is adopted, the rates notice for a typical residential property will increase by $56 per quarter, of which $13 relates to the Domestic Waste Charge, $15 to the rate peg and $28 to the Special Variation program to improve services.

Minimum and typical residential rates and annual charges 2026/27

- With proposed Special Variation to rates of 11.7%

	Minimum			Typical (median)
	2026/27 Amount	Increase		2026/27 Amount	Increase
Residential Rates	$1,377	$144	11.7%	$1,649	$173	11.7%
Domestic Waste Charge	$652	$53	8.8%	$652	$53	8.8%
Stormwater Charge	$12.50 (strata)	-	-	$25 (house)	-	-
TOTAL RATES NOTICE - Per annum	$2,042	$197	10.7%	$2,326	$226	10.7%
Per quarter	$510	$49	10.7%	$582	$56	10.7%
Per day	$5.59	$0.54	10.7%	$6.37	$0.62	10.7%

The typical (median) rate in 2026/27 is based on the median (midpoint) 2025 residential land value of $1.37 million – individual ratepayers may experience a difference in the change due to the impact of the new land values compared to their old land values that were used in the 2025/26 year. The minimum rate applies to land values under approx. $1.14 million and is paid by around a third of ratepayers.

- With rate peg only at 4.1%

	Minimum			Typical (median)
	2025/26 Amount	Increase		2025/26 Amount	Increase
Residential Rates	$1,283	$51	4.1%	$1,537	$61	4.1%
Domestic Waste Charge	$652	$53	8.8%	$652	$53	8.8%
Stormwater Charge	$12.50 (strata)	-	-	$25 (house)	-	-
TOTAL RATES NOTICE - Per annum	$1,948	$104	5.6%	$2,214	$114	5.4%
Per quarter	$487	$26	6.1%	$553	$28	5.2%
Per day	$5.34	$0.28	6.1%	$6.07	$0.31	5.2%

· Rating Structure 2026/27

The NSW Government, through IPART, caps the total income that may be raised from levying rates on property through the setting of a rate peg each year. While IPART has set the 2026/27 rate peg for Northern Beaches Council at 4.1%, it has also endorsed an alternative Special Variation of 11.7% for the 2026/27 financial year. The draft 2026/27 budget is based on the Special Variation program and funding.

The rating structure is based entirely upon property valuations (ad valorem) but with minimum rates applying where appropriate. Rates for 2026/27 will be assessed on land values as at 1 July 2025 and are forecast to raise $222 million before pensioner rebates and adjustments (which includes an extra $17 million from the second and final year of the Special Variation to rates).

The 2025 land values recently issued to Council by the NSW Valuer General will be utilised for the next two financial years to calculate rates on properties. Council does not raise any additional income through changes in land value, but these new values can redistribute the amount of rates paid by individual ratepayers based on how their land value has changed in comparison to others in the Northern Beaches.

· Domestic Waste Management Charge 2026/27

The Domestic Waste Management (DWM) service is provided to all residential properties and includes the collection, transport, processing and disposal of household waste. For 2026/27, the standard domestic waste charge is proposed to increase to $652, representing an overall increase of $53 (8.8%). Of this increase, $40 is directly attributable to higher diesel fuel costs.

Diesel fuel is a significant cost driver for waste management, as the service relies heavily on fuel‑intensive vehicle fleets for kerbside collection and the transport of waste to processing and disposal facilities. These cost pressures are largely outside Council’s control and reflect broader market and supply conditions impacting the transport sector.

Charges for the 2026/27 financial year are estimated to generate approximately $70 million in revenue, which is required to fully fund the delivery of domestic waste services, including increased costs and ongoing service reliability.

· Stormwater Management Services Charge 2026/27

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 2026/27. 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.

· Pensioner rebates 2026/27

In addition to the maximum $250 pensioner rebate available under the Local Government Act 1993, Council’s Pensioner Rates and Charges Concession Policy provides further financial assistance to eligible pensioners who are under the recognised retirement age, as well as to certain categories of pensioners who have reached that age. For the 2026/27 financial year, it is proposed that the additional rebate be set at $80 for waste management charges and $150 for rates for eligible pensioners.

Pricing Methodology and Fees and Charges 2026/27

Fees and Charges relate mainly to the recovery of service delivery costs through the charging of fees to users. These include use of leisure, entertainment and other community facilities, the provision of services such as long day care, development and compliance activities.

The draft Fees and Charges schedule for the 2026/27 financial year is provided as Attachment 2 to this report and has been prepared in accordance with the principles of Council’s Pricing Methodology.

Consultation

A community engagement plan consistent with Council’s Community Engagement Policy and Strategy, has been developed to support the exhibition. The draft Delivery Program, Operational Plan (including Fees and Charges), and LTFP will be placed on exhibition for a minimum of 28 days in accordance with essential elements 3.10, 4.10 and 4.25 of the Integrated Planning and Reporting, Guidelines for Local Government in NSW (2021).

Promotion and engagement will include:

· A dedicated Your Say page, including all documents and frequently asked questions

· Social media

· Bulk emails to around 20,000 people on our Community Engagement Register

· Community outreach activities at 5 locations

· 12 locality-based summaries of the draft Operational Plan

· Fact sheets on the roads and footpath program.

Submissions can be made online as well as via letter and email.

Timing

The draft Delivery Program, Operational Plan (including Fees and Charges), LTFP will be exhibited for a minimum of 28 days. The outcome of the public exhibition will be reported to Council on 16 June 2026 for consideration and adoption of the documents.

Financial Considerations

In the present context of economic volatility and rising prices, Council is exercising increased caution while assessing the financial impacts of higher fuel and related costs. Contingencies are forecast to be available through working capital, with any necessary adjustments to be addressed in future budget reviews.

Based on the need to maintain financial sustainability and to continue to deliver services and assets as expected by our community, in 2025, IPART endorsed a 2-year Special Variation to increase rates income by a total of $35 million through a 12.1% increase in 2025/26 and an 11.7% increase in rates in 2026/27 instead of the standard rate peg in these years. This budget has been prepared to deliver on the second year of this endorsed pathway to sustainability.

With the Special Variation to rates, the actions of the Delivery Program and needs of the Asset Management Plans are funded including doubling renewal expenditure on roads, footpaths and stormwater infrastructure by 2027/28, expanding environmental and natural risk reduction programs and providing funding to withstand shocks and invest in future infrastructure needs.

The draft Long-term Financial Plan presents two scenarios: Scenario 1 presents the financial outcome if the Special Variation is in place and Scenario 2 presents the financial outcome if the Special Variation does not proceed and rates only increase by the rate peg.

For the 2026/27 financial year, Council is forecast to achieve an operating surplus before capital grants and contributions of $19.8 million, along with a stronger working capital position and achievement of the Office of Local Government’s financial and asset performance benchmarks.

There are several restrictions on funds within the operating result. When these are removed, the underlying operating result is forecast to be a surplus of $14.5 million (compared to the deficit of $0.4 million without the Special Variation).

	Budget	Budget without Special Variation
	2026/27	2026/27
	$m	$m
Underlying result
Surplus / (deficit) excluding capital grants and contributions	19.8	4.8
Less:
Interest on restricted Council funds	(2.9)	(2.9)
Domestic Waste net depreciation	(0.1)	(0.1)
Stormwater Charge net opex	(2.0)	(2.0)
Special Rates	(0.3)	(0.3)
Kimbriki (less dividend)	(0.8)	(0.8)
Mona Vale Cemetery	0.2	0.2
Developer contribution funded operating projects	0.5	0.5
Underlying surplus / (deficit) excluding restricted funds	14.5	(0.4)

Governance and Risk Considerations

The review and updating of the Delivery Program, Operational Plan, and LTFP are integral to good governance at Council. These documents have been prepared in accordance with sections 403-405, 406, 610B, 610F and 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

The proposed actions in this report will result in a beneficial environmental outcome. Protecting the environment and ensuring that we can live sustainably on the Northern Beaches are key features of the draft Delivery Program and Operational Plan to be exhibited. These documents detail programs and activities that protect the environment and support the community to live sustainably.

Social Considerations

The draft Delivery Program, Operational Plans (including Fees and Charges) and Long-Term Financial Plan will be exhibited for a minimum of 28 days. A summary of the submissions received along with revised documents will be presented to Council on 16 June 2026 for consideration.

LINK TO STRATEGY

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

· 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.

· Partnership and participation - Goal 21 Our community is engaged in decision making processes.

Reporting team

Finance

TRIM file ref

2026/140990

Attachments

⇨1 Draft Delivery Program 2026-2030 and Operational Plan 2026/27 (Included In Attachments Booklet)

⇨2 Draft Fees and Charges and Pricing Methodology 2026/27 (Included In Attachments Booklet)

⇨3 Draft Long-term Financial Plan 2026-2036 (Included In Attachments Booklet)

⇨4 Information Pack - Draft Operational Plan 2026/27 (Included In Attachments Booklet)

Item 9.2 Northern Beaches Council MEETING - 21 April 2026

ITEM 9.2

Suspension of the Alcohol Free Zone in Manly Corso for Rise Manly 2026

Purpose

The purpose of this report is to request that Council suspend part of the Alcohol Free Zone (AFZ) on The Corso in Manly to accommodate the operation of a temporary licensed activation as part of the winter destination marketing event, Rise Manly.

Executive Summary

· Rise Manly, running from 19 – 28 June 2026, will be delivered in partnership with the Manly Business Chamber and local businesses to support and attract visitation and trade during the traditionally quieter winter months.

· As part of the 2026 program, a temporary licensed activation would allow attendees to enjoy the open space of The Corso, listen to live music and socialise with friends and family, adding an outdoor element to the event and replicating the success of a similar temporary licensed activation held as part of Rise Manly 2025.

· The activation is proposed to operate between a maximum hours period of 11am – 10pm daily, Friday 19 to Sunday 28 June 2026.

· As the proposed temporary liquor licensed activation on The Corso is situated within an Alcohol Free Zone, if Council wishes to proceed with the activation it is necessary to suspend the operation of part of the Alcohol Free Zone.

· Northern Beaches Police Area Command Licensing Unit has been engaged to seek its endorsement which is required for the operation of the temporary liquor licensed activation in the proposed area on The Corso. That process is independent of Council’s consideration of the temporary suspension of the Alcohol Free Zone.

RECOMMENDATION

That Council:

1. Suspend operation of part of the Alcohol Free Zone on Manly Corso (as shown in Attachment 1) from 11am – 10pm on Friday 19 June 2026 through to Sunday 28 June 2026.

2. Authorise the Chief Executive Officer to do all things necessary to give effect to the suspension referred to in Item 1 above, including the publication of notices of suspension as required under section 645 of the Local Government Act 1993.

3. Note staff will continue to work with Northern Beaches Police Area Command Licensing Unit in relation to the safe management of the area during the suspension.

Background

In 2025 a new event was created called Rise Manly. The event was created in consultation with the Manly Business Chamber and the Manly Foreshore Syndicate, including several local hospitality businesses in Manly, MJC Group, The Boathouse Group, Artemus Group and Hotel Steyne.

Rise Manly will return in 2026 with a 10 day and night winter program showcasing the diversity of businesses and visitor experiences in Manly. The event program will run from 19 to 28 June and is focused on promoting local businesses and increasing visitation during the traditionally quieter winter season and will be delivered under the existing operational budget.

The program will be curated from an open expression of interest process. In 2025, over 28 businesses were involved in the program.

Council is also planning to deliver a range of activations across Manly CBD which may include light installations, art displays, family play spaces and entertainment for community and visitors to enjoy.

Rise Manly is designed to support and promote local businesses, increase visitation and spending in Manly and further enhance Manly’s reputation as a destination for great entertainment and hospitality.

Discussion

In 2025 a temporary licensed entertainment space was delivered on The Corso as part of the event, similar to temporary licensed activations delivered as part of Manly Jazz.

To support visitor experience in Manly and at the event, it is again proposed that a local business deliver a similar temporary licensed activation - an area where people can enjoy the open space of The Corso, listen to live music and socialise with friends and family. The objective is to add a unique element to the event that will attract new visitors and encourage people to stay longer in Manly.

The temporary licensed activation would occupy a space of approximately 14 x 40 metres on The Corso, in front of the New Brighton Hotel (see Attachment 1).

The activation would sell alcoholic and non-alcoholic beverages and food, in line with Responsible Service of Alcohol requirements.

To achieve this, a resolution of Council is required to temporarily suspend the Alcohol Free Zone in this area to allow the sale and consumption of alcohol.

Under the provisions of section 645(1) of the Local Government Act 1993 (Act), Council:

‘may, at the request of any person or body or of its own motion, suspend the operation of an alcohol-free zone by publishing notice of the suspension in a manner that the council is satisfied is likely to bring the notice to the attention of members of the public in the area as a whole or in a part of the area that includes the zone concerned.’

The proposed temporary liquor licensed activation would operate under a third-party operator with maximum hours of 11am to 10pm from Friday 19 June to Sunday 28 June 2026.

Independent of Council’s consideration of the temporary suspension of the Alcohol Free Zone as required under the Act, staff are working with the Northern Beaches Police Area Command Licensing Unit to seek its endorsement for the temporary liquor licence activation.

Historically, Council’s Manly Jazz event has hosted similar activations like the Jazz Garden in 2024 and 2025 and the pop-up wine garden which was first trialled in 2014 and continued annually until 2019, with no incidents reported by NSW Police or Council staff.

Consultation

Council is working with Northern Beaches Police Area Command Licensing Unit and will continue to collaborate with the unit and the selected temporary licensed activation operator to ensure the safe operation of the activity during the Rise Manly event program.

Consultation with the Manly Business Chamber, the Manly Foreshore Syndicate and other businesses is being undertaken to ascertain an appropriate local vendor through the expressions of interest process to deliver the activation.

Timing

The temporary licensed activation would be permissible to operate under a liquor licence of a third-party operator with maximum hours of 11am to 10pm daily, Friday 19 to Sunday 28 June 2026.

The endorsement of Council at the April Council meeting will allow sufficient time to manage a third-party operator to plan and deliver the activation, as well as give adequate notification of the lifting of the AFZ.

Financial Considerations

The recommendations of this report pose no financial impact on Council. The event program, Rise Manly 2026 is being funded by Council’s existing operational budget, including the Manly Business Levy, in collaboration with the Manly Business Chamber.

Governance and Risk Considerations

Council is working closely with Northern Beaches Police Area Command Licensing Unit to establish the parameters and conditions in which a third-party operator could run a temporary licensed activation during the Rise Manly event program.

The selected operator would be required to submit a risk assessment and would be subject to the authority of Police and liquor licensing requirements to ensure the responsible service of alcohol.

It would also be a condition of the agreement to operate the temporary licensed activation, that the operator must comply with directions from NSW Police and/or Council to cease operations for any reason to ensure public safety. This may include a liquor licence breach or an alcohol-related incident.

There have been no alcohol-related incidents recorded by NSW Police or Council resulting from the suspension of the Alcohol Free Zone for the purpose of a temporary licensed activation at this location in previous years.

The event program will be evaluated and success will be measured in alignment with the Northern Beaches Events Strategy.

Environmental Considerations

The subject of this report has no adverse environmental implications for Council. The event will be compliant with Council’s waste management plan and no single use plastics policy.

Social Considerations

The recommendations in this report will have a positive social outcome for the community by:

· expanding cultural events and creative opportunities, to enable social interaction/cohesion and stimulate wellbeing, enhancing and extending opportunities for sustainable tourist economy throughout the area

· facilitating active, safe, and welcoming centres for residents and visitors during the day and into the evening

· facilitating collaboration between businesses and government on projects

· promoting local businesses and Sydney’s premier beach destination through the traditionally quieter winter months.

Link to Strategy

This report relates to the Northern Beaches Events Strategy 2026 - 2035 Outcomes:

· Outcome 1: Social connection: enhance inclusion and a sense of wellbeing.

· Outcome 2: Environmental sustainability: demonstrate and promote leading practices in event delivery.

· Outcome 3: Economic growth: support local businesses and attract visitors.

· Outcome 4: Place-based vibrancy: activate town centres and public spaces.

· Outcome 5: Partnerships: collaborate with third party organisers to deliver events.

This report relates to the Community Strategic Plan 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 and community is resilient to natural hazards and climate change.

· Protection of the environment - Goal 3 Our community is well-supported in protecting and enhancing the environment, to ensure safe and sustainable use.

· Environmental sustainability - Goal 4 Our community is supported in the sustainable use of resources and working towards net zero and a local circular economy.

Reporting team	Community Engagement & Communications
TRIM file ref	2026/125648
Attachments	⇨1 Suspension of the Alcohol Free Zone in Manly CBD Area - Site Map - Rise Manly 2026 (Included In Attachments Booklet)

Item 9.4 Northern Beaches Council MEETING - 21 April 2026

ITEM 9.4

Response to Notice of Motion 44/2025 - Update to Expenses Policy

Purpose

The purpose of this report is to provide a response to Notice of Motion 44/2025 – Update to the Councillor Expenses and Facilities Policy.

Executive Summary

· In November 2025 Council resolved (329/25) to receive a report on possible amendments to the Councillor Expenses and Facilities Policy to ensure that Councillor expense claims made under the Policy provide sufficient information to demonstrate the benefit and relevance of the claim to Northern Beaches residents and ratepayers. 

· The current Northern Beaches Councillor Expenses and Facilities policy is consistent with the better practice template provided by the Office of Local Government.

· Council has already completed its statutory obligation to review and adopt the Councillor Expenses and Facilities Policy within 12 months of the new Council term.

· This report identifies potential policy amendments and operational process changes that Council could consider if it were seeking to change the claim information to be provided, and the frequency of sharing Councillor expenses information.

· Potential policy changes identified include more detailed substantiation requirements for expense claims, conferences and professional development requests, additional reporting for Councillors on outcomes of attendance, additional public reporting and/or publication of claim forms.

RECOMMENDATION

That Council note the report.

Background

Under section 252 of the Local Government Act 1993 (the Act) Council is required to adopt a policy concerning the payment of expenses and the provision of facilities to the Mayor, Deputy Mayor and Councillors in relation to discharging the functions of civic office. Council is required to adopt this policy within the first 12 months of each Council term.

The provision of facilities and expenses assists the Mayor and Councillors to fulfil their roles and responsibilities under the Act. The Councillor Expenses and Facilities Policy (the policy) enables the reasonable and appropriate reimbursement for expenses incurred by Councillors in undertaking their civic duties and provides support for participation in professional development.

Council reviewed and adopted the policy following a period of public exhibition on 10 December 2024, with a further review and minor administrative updates made to the policy in September 2025.

In response to a Notice of Motion at the November 2026 Council meeting, Council resolved (329/25):

That a report be prepared and brought to Council on possible amendments to the Councillor Expenses and Facilities Policy to ensure that Councillor expense claims made under the Policy provide sufficient information to demonstrate the benefit and relevance of the claim to Northern Beaches residents and ratepayers. 

Discussion

The current Northern Beaches Councillor Expenses and Facilities policy is consistent with the better practice template provided by the Office of Local Government.

The objectives of the policy are to enable reasonable and appropriate reimbursement and facilities, ensure accountability and transparency, ensure facilities and expenses meet community expectations and support diversity of representation.

Under this framework, Councillors must not obtain private or political benefit from any expense or facility provided under the policy.

Councillors operate in a complex decision‑making environment. They must act in accordance with community expectations which may be diverse, contradictory or highly emotive at times. They also must exercise judgement within legislative boundaries and apply policies and adhere to a Code of Conduct that relies on, in many instances, subjective reasoning.

This challenge is not uncommon. A tension can arise at all levels of government between technical compliance with entitlements under policies of this nature and public expectations of restraint or reasonableness.

In seeking to identify potential amendments to the policy in accordance with Council’s resolution, a number of operational process changes have also been identified, that can be implemented operationally without policy adjustments, for example updates to application forms.

Should Council wish to pursue changes to the policy, potential amendments are identified in the table below for consideration. The options have been numbered in the table below for ease of reference.

Ref	Section	Theme / Purpose	Detail
1	Reporting	Sufficient information	At present, Councillor expenses are reported to Council annually and published on Council’s website at https://www.northernbeaches.nsw.gov.au/council/elected-council/councillor-expenditure Subject to consideration and allocation of additional resourcing, the policy could be updated to require that Councillor expenses are tabled to a Council meeting more frequently, such as on a quarterly basis, and/or include further breakdown to specific categories of expense per Councillor.
2	Reporting	Sufficient information	The policy could be updated to require that all Councillor expense claim forms, including a certification from the Councillor that the expenses are directly relevant to their civic functions in accordance with the policy, be published on Council’s website.
3	Conferences and seminars	Benefit	The policy could be updated to require that where a Councillor attends a conference, seminar, forum or similar event that is not convened by a recognised local government industry or professional body, the Councillor must provide a written report to a Council meeting, within 3 months, outlining the key learnings and benefits realised from their attendance.
4	Representing Council at non-Council functions/ events	Relevance	The policy could be updated to provide additional criteria on the definition of claims permissible for non-Council functions or events. Expenses may be limited to those events where Councillors can demonstrably link an event to Council’s statutory role, functions, responsibilities, or adopted strategic priorities. Expenses that could not be claimed would be those where the event or function relates primarily to matters outside the jurisdiction, responsibilities, or core functions of local government, even where the cause or organisation is of general community interest or public benefit. This includes, for example, attendance at charity dinners, fundraising events, or social functions where the subject matter does not have a direct and substantive connection to Council’s statutory functions, services, or adopted strategic objectives.
5	Definitions	Relevance	The policy could be updated to provide additional guidance for Councillors on what constitutes a civic function, by including the definition of Civic office/Civic functions that is contained in the NSW Office of Local Government’s Guidelines for the payment of expenses and the provision of facilities for Mayors and Councillors in NSW Functions of civic office/civic functions: Functions that councillors are required to undertake to fulfil their legislated role and responsibilities for the council that should result in a direct benefit for the council and/or for the local government area.
6	Use of private vehicle	Sufficient information	The policy could be updated to require that Councillor log books for travel claims be enhanced to require more information including the date, distance, and purpose of travel including the type of event, reason for the event, meeting attendees, benefit to Council and/or the community from the travel.
7	Claim forms - various	Sufficient information	The policy could be updated to require that Councillors must ensure that any claims for reimbursement clearly demonstrate the direct connection between the claim and the achievement of a specific local government outcome in the form required. Claim forms that are incomplete or do not establish a direct connection and are not in the required form would not be processed.

Financial Considerations

The financial commitment for councillor expenses and facilities is outlined within the policy. Provision for expenses and facilities is included within the annual operational budget. There are no proposed changes to the financial limits within the policy arising from this report. Consideration of financial impact and budget allocation would be required in the event Council resolves to undertake additional activities that would have a resourcing implication or administrative burden for staff.

Governance and Risk Considerations

The policy is required under sections 252 and 253 of the Act, and 403 of the Local Government (General) Regulation 2021. The policy is aligned to the Office of Local Government’s better practice template policy.

Clear guidance on appropriate expense claims assists Councillors to comply with the complex legislative requirements under the Act and guidance issued by the Office of Local Government, while reducing the risk of inappropriate expenditure, reputational impacts and non-compliance with Council policies.

Councillors are provided with a monthly expense report to support tracking of their own expenses. All expenses claimed are certified by Councillors as expenses incurred in their roles as elected officials. Councillor expenses are routinely audited in accordance with Council’s audit program.

Environmental Considerations

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

Social Considerations

There is public benefit in ensuring transparency and value for money is delivered through the framework for Councillors to claim appropriate expenses and facilities.

Link to Strategy

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

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

Reporting team	Governance & Assurance Services
TRIM file ref	2026/172498
Attachments	Nil

Item 9.6 Northern Beaches Council MEETING - 21 April 2026

1950vid

ITEM 9.6

Monthly Investment and Finance Report - February 2026

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) and to present financial performance information for the month of February 2026 and the 2025/26 financial year to date.

Executive Summary

· Council’s investment portfolio remains fully compliant with legislative requirements and Council’s Investment Policy, with all exposures, credit ratings and maturity limits within approved thresholds.

· Council held $262.7 million in cash and investments as at 28 February 2026 comprising:

Trading Accounts	$4,323,742
Investments	$258,389,375

· These funds are substantially restricted for specific purposes (71%), with sufficient working capital maintained to support annual cash payments of around $500 million.

· The investment portfolio achieved a February return of 0.318% (0.038% above the benchmark AusBond Bank Bill Index) and the weighted average interest rate at month end is 4.33% (compared to 4.25% for the prior month).

· Year‑to‑date investment income of $7.6 million is $0.3 million above budget toward a full‑year target of $9.9 million.

· Council’s liquidity and projected financial position remains sound, with sufficient capacity to meet short-term financial obligations.

RECOMMENDATION

That Council note the Investment and Finance Report as at 28 February 2026, including the certification by the Responsible Accounting Officer.

Background

Investments

In accordance with section 212 of the Regulation, a report setting out the details of money invested must be presented to Council on a monthly basis along with certification as to whether or not the investments have been made in accordance with the Act, 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.

Financial performance

This report also includes a monthly financial report, including information on Council’s financial performance and position. Provision of this financial information is consistent with Quarterly Budget Review Statement Guidelines issued by the Office of Local Government (OLG).

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 Council’s Investment Policy – 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

The majority of Council’s funds are invested in term deposits, with staggered maturities to meet cashflow needs and reduce interest rate risk. All investments remain appropriate for a local government entity and fully comply with legislation and Investment Policy limits.

The following chart summarises Council’s investment portfolio (including funds relating to Kimbriki).

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.

The following chart illustrates the percentage of the portfolio held by each institution.

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.

The following chart illustrates the percentage of the portfolio held within each credit rating category.

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

The following chart illustrates the current term to maturity of the portfolio.

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 28 February 2026	39.3%	60.7%

Investment performance vs benchmark

a) Portfolio return vs benchmark

	Investment Portfolio Return *	Benchmark: AusBond Bank Bill Index
1 Month	0.318%	0.28%
3 Months	1.049%	0.90%
FYTD	2.548%	2.43%
12 Months	4.603%	3.83%

* 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, Perpetual CT Capital Pty Ltd (formerly 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 0.318% for the month of February which was 0.038% above the benchmark AusBond Bank Bill Index return of 0.28%. For the past 12 months the portfolio achieved a return of 4.603%, which was 0.773% above the benchmark AusBond Bank Bill Index return of 3.83%.

b) Portfolio interest rate vs benchmark

	Weighted Average Portfolio Interest Rate (%pa) *	Average RBA Cash Rate
1 Month	4.33%	3.85%
3 Months	4.29%	3.68%
6 Months	4.32%	3.64%
FYTD	4.37%	3.66%
12 Months	4.52%	3.77%

* 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 4.33%, compared to 4.25% for the prior month. For the past 12 months the weighted average interest rate of the portfolio was 4.52% compared to the average Reserve Bank of Australia Cash Rate of 3.77%.

Investment income* vs budget

	Year to Date $
Investment Income	7,582,976
Adjustment for Fair Value	10,139
Total Investment Income	7,593,115

Budgeted Income	7,295,642

*Includes all cash and investment holdings

For the month of February 2026 cash inflows were higher than cash outflows, resulting in a positive cash flow for the period. This is primarily related to the timing of rates instalment due dates, which fall on the last day of the months of August, November, February and May (some payments for these periods may fall into the following month). Short term cash holdings are also affected when a month-end occurs on a weekend as funds are received into Council’s bank accounts outside of normal business hours.

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 February 2026 total cash & investments were $262,713,117 and were made up of the following reserve allocations:

Allocation of Funds	Amount ($)	Percentage
Externally restricted	$71m	27.1%
Internally restricted	$115m	43.6%
Total restricted	$186m	70.7%
Unrestricted	$77m	29.3%
Total	$263m	100.0%

FINANCE REPORT

Income statement

The Income Statement below outlines Council’s financial performance against budget for the financial year to date as at the end of February 2026.

For the 8 months to 28 February, the operating result (including capital grants and contributions) was $9.4 million favourable to budget, or $9.0 million favourable when capital grants and contributions are excluded.

Income was $4.3 million (1%) ahead of budget. Favourable items included additional early learning grants ($0.7m), revenue from enforcement activities ($0.8m), higher than anticipated expenditure recoveries from external parties ($0.4m), venue and sporting facilities fees ($0.3m) and income from developer contributions ($0.3m). Income from development engineering services ($0.4m) and community centres ($0.2m) was below budget.

Operating expenditure was $5.1 million (2%) below budget, including depreciation. Employee expenses were under budget by $3.4m (3%) at the end of February driven by higher staff leave over the summer period and vacant roles. Materials and services expenses were $0.7m (1%) favourable to budget, primarily due to timing-related variances for project expenditure ($0.5m).

	February	Year-to-date					Annual
Income statement	Month Actuals	YTD Actuals	YTD Budget	YTD Variance		Current Budget
	$'000	$'000	$'000	$'000	%	$'000
Income from continuing operations
Rates & Annual Charges	49	285,605	285,324	281	0%	285,355
User Charges and Fees	8,416	71,284	71,235	49	0%	105,028
Other Revenues	1,975	16,454	15,111	1,344	9%	22,037
Grants and Contributions – Operating	1,734	12,836	11,619	1,217	10%	22,429
Grants and Contributions – Capital	1,866	17,593	17,232	361	2%	34,609
Interest and Investment Revenue	837	7,977	7,601	376	5%	10,410
Other Income	607	4,815	4,659	156	3%	6,778
Net Gain on Disposal of Assets	161	1,213	736	477	65%	484
Total Income from continuing operations	15,643	417,778	413,516	4,262	1%	487,131

Expenses from continuing operations
Employee Benefits & On-Costs	(14,118)	(111,729)	(115,133)	3,404	3%	(177,828)
Borrowing Costs	(242)	(2,007)	(2,008)	1	0%	(2,998)
Materials & Services	(15,007)	(111,512)	(112,181)	669	1%	(185,727)
Other Expenses	(934)	(13,283)	(13,433)	149	1%	(22,015)
Total Expenses from continuing operations	(30,300)	(238,531)	(242,754)	4,223	2%	(388,568)

Surplus / (Deficit) excl depreciation and amortisation	(14,657)	179,247	170,762	8,487	5%	98,563

Depreciation, Amortisation & Impairment	(4,062)	(35,097)	(35,961)	864	2%	(55,392)
Surplus / (Deficit)	(18,719)	144,150	134,801	9,349	7%	43,171

Surplus / (Deficit) before capital grants and contributions	(20,585)	126,557	117,569	8,988	8%	8,561

Capital expenditure

Capital expenditure in February 2026 totalled $4.6 million, bringing the year-to-date expenditure to $50.2 million, compared with a budget of $54.0 million to February 2026.

	February	Year-to-date				Annual
Capital expenditure	Month Actuals	YTD Actuals	YTD Budget	YTD Variance		Current Budget
	$'000	$'000	$'000	'000	%	$'000
Capital New	(1,867)	(19,855)	(21,455)	1,600	7%	(39,697)
Capital Renewal	(2,752)	(30,374)	(32,550)	2,176	7%	(64,493)
Total capital expenditure	(4,620)	(50,229)	(54,005)	3,776	7%	(104,189)

Statement of financial position

A summary of Council’s financial position as at 28 February 2026 is presented below.

		Year-to-date
Statement of financial position		Balance
Statement of financial position		Balance
		$'000
Current assets		369,140
Non-current assets		5,985,666
Total assets		6,354,806

Current liabilities		(105,979)
Non-current liabilities		(68,608)
Total liabilities		(174,588)

Net assets / equity		6,180,218

Council remains in a position to meet its financial obligations (liabilities) as they fall due.

Financial Considerations

Actual investment income for the period from 1 July 2025 to date was $7.6 million compared to budgeted income of $7.3 million (a positive variance of $0.3m) resulting from both higher than anticipated investment balances and higher investment interest rates. The current budget for the full year is $9.9 million in investment income, of which almost half relates to restricted funds.

Council remains on track to meet key financial and asset performance benchmarks for the year. The operating surplus for the full year is projected to be $8.6 million, excluding grants and contributions received for capital expenditure purposes. It should be noted this surplus includes income restricted by legislation, contract or policy for designated future purposes including interest income earned on restricted funds. Capital expenditure for the year is forecast to total $104.2 million.

Governance and Risk Considerations

The Investment Policy was adopted by Council at its meeting on 17 March 2026. The Policy is subject to annual review by the Audit, Risk and Improvement Committee and was most recently reviewed at the Committee’s meeting in December 2025, at which time no amendments were recommended.

Council’s Investment Policy and Strategy were also reviewed in September 2025 by Council’s Investment Advisors, Perpetual CT Capital Pty Ltd. The advisors confirmed that the Policy remains consistent with the Ministerial Investment Order and the guidelines issued by the Chief Executive (Local Government), Department of Premier and Cabinet, and advised that no changes were required to the approved investment list or credit limit frameworks.

Environmental Considerations

Council’s investments are managed in accordance with Council’s Investment Policy which requires consideration of environmental responsibility when making investment decisions. The budget includes funding to deliver a range of projects to protect and enhance our natural environment.

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. The budget includes funding to deliver services that support our community and economy.

Link to Strategy

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

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

Reporting team	Finance
TRIM file ref	2026/136701
Attachments	Nil

Item 13.1 Northern Beaches Council MEETING - 21 April 2026

13.0 Transport and Assets Division Reports

ITEM 13.1

Future Use of Manly Town Hall Site - 1 Belgrave Street, Manly

NOTE: This item was listed on the agenda but deferred by Council at the 17 March 2026 Council meeting.

Purpose

The purpose of this report is to report back to Council, as required by resolution 178/25 at Council’s ordinary meeting on 15 July 2025, outlining options for inviting expressions of interest for the redevelopment of Manly Town Hall.

Executive Summary

· Council has made various previous resolutions regarding the future use of this site.

· The previous feasibility study concluded that, while technically feasible, the proposed development of this site as a cultural venue was not financially viable with little chance of a commercial return on any required investment.

· On 15 July 2025, Council resolved (178/25) that a report be presented within 4 months outlining options for inviting expressions of interest for the redevelopment of Manly Town Hall, subject to specific conditions.

· This report provides information as to how to invite expressions of interest for the redevelopment of Manly Town Hall should Council wish to progress this matter.

· Given the identified site constraints and poor commercial viability of the preferred use, there is a concern that an expression of interest process would require additional uses to be commercially viable, with a risk that these uses could dominate the development.

RECOMMENDATION

That, should Council wish to proceed in light of the advice provided, it is recommended that an expression of interest process be conducted as detailed within the body of this report.

Background

Council has explored various options for the future use of Manly Town Hall since 2019, following multiple resolutions in 2020, 2021 and 2023, aimed at identifying suitable community or cultural uses for the site.

Initial efforts included short-term hire of meeting rooms for events and performances from 2020 to 2022. However, this approach was discontinued in 2022 due to the following constraints:

· limited room availability during business hours due to staff use

· restrictions on private social event hire

· high security staffing costs

In 2021, community feedback was sought for ideas on the future use and reimagining of Manly Town Hall. This was published on Council’s Your Say page and over 1000 ideas were submitted.

A working group comprised of various representatives of the community was also formed in 2022. Through this working group, stakeholder engagement identified 2 preferred reuse options: a multi-use performance space; and a gallery and museum.

These options aligned with the previous community feedback and were subject to a feasibility study commissioned in 2024. The study assessed financial, social, cultural, and environmental viability, including alternative operating models.

The feasibility study concluded that while technically feasible, the proposed cultural uses were not financially viable, noting:

· operating costs would exceed revenue, with limited potential for commercial return

· significant design and operational restraints would hinder long-term sustainability

· the relocation of approximately 100 Council staff would cost an estimated $1.4 million for fit out and $320,000 in rent if alternative Council-owned buildings were unavailable.

On 30 April 2024, Council resolved that the operating costs would likely exceed revenue, with little chance of commercial return on investment and noted the concerns around ongoing financial sustainability. The feasibility study was made publicly available online.

On 15 July 2025 Council subsequently resolved (178/25) as follows:

That a report be presented to Council within 4 months, setting out options for inviting expressions of interest for the redevelopment of Manly Town Hall, incorporating solutions which:

1. Provide long-term-benefit to Council.

2. Respect the heritage value of the building and its curtilage.

3. Is in keeping with community expectations of providing a multi-use performance and exhibition space.

4. Provide alternative solutions for Council’s operational needs in Manly.

5. Would come at no cost to Council.

6. Ensure that the ownership of the building remains in Council’s hands.

Discussion

Zoning

The Manly Town Hall site is currently zoned SP2 Public Administration Building under both the Manly LEP 2013 and draft new Northern Beaches LEP. This zoning permits limited uses, primarily for public administration purposes.

To enable broader cultural or entertainment facilities as permissible uses, a Planning Proposal would be required. This could include rezoning the land, such as to E1 Local Centre, which would allow uses such as galleries, theatres, and music venues, while retaining flexibility for other commercial development opportunities and Council operations.

Planning Proposals generally require supporting technical studies, community consultation, and assessment by the Department of Planning, Housing and Infrastructure. The process typically takes up to 18 months, with indicative costs as follows:

· lodgement fee: $36,166

· pre-lodgement meetings: $2,543 each

· external consultant reports (e.g. planning, heritage, traffic): $5,000 - $10,000 each

It would be reasonable to assume a cost of between $100,000 and $200,000 would be required to progress a planning proposal for this site, after which a DA would then be required.

Initial Expression of Interest (EOI)

To best progress this matter, an initial expression of interest process should invite ideas from the market regarding commercially viable options for delivering a multi-use performance and exhibition space, while maintaining the heritage significance of the building. All submissions would be asked to provide a proposal that includes the following:

· the mix of uses proposed for the site

· the desired zoning for the site

· the expected height and development controls required for the site to enable a feasible development

· the expected development timeframe, including any timing required for a planning proposal and subsequent DA

· a financial summary with sensitivities and risks and an expectation as to what would be compromised should the risks come into effect

· the timeframe that the site would need to be provided to the submitter to enable the project the be financially feasible

· any key matters that would need to be resolved by Council prior to progression.

This initial EOI would not commit Council to any specific redevelopment or partnership but would gauge market interest and identify feasible concepts. Respondents would be advised that any future tender or appointment would be subject to further assessment, including planning, regulatory and procurement processes.

The general EOI process includes:

· internal consultation to refine scope and objectives

· preparation of EOI documentation, including evaluation criteria

· public release via Tenderlink and relevant media

· briefing sessions and site inspections

· evaluation of submissions and reporting outcomes to Council.

Submissions would then undergo feasibility assessment against key constraints such as:

· planning and rezoning requirements

· heritage obligations

· building condition and structural capacity

· accommodation and relocation needs for staff

· financial impact / benefit to Council

· whether a Planning Proposal and Public Private Partnership (PPP) would need to be pursued.

This process would provide Council with information to guide the next stage, including whether a Planning Proposal and Public Private Partnership (PPP) would need to be pursued.

Public Private Partnership

A Public Private Partnership (PPP) is an arrangement where Council partners with a private entity to deliver public infrastructure, facilities or services, while retaining an ongoing interest or responsibility. In this case, the redevelopment of Manly Town Hall at no direct cost to Council, while ensuring ownership of the building remains with Council would almost certainly result in the process being defined as a PPP.

PPPs in NSW local government are regulated under the Local Government Act 1993 and the Local Government (General) Regulation 2021. The process is overseen by the Office of Local Government (OLG) to ensure probity, transparency, and protection of community assets.

A PPP is a complex and multi-staged process, typically including:

· initial assessment by OLG – submission of a self-assessment form, supporting documents, and Council resolution confirming in-principle support

· strategic and business case phases – preparation of detailed documents covering project objectives, responsibilities, risk allocation, funding sources, and costings

· economic appraisal and project planning – analysis of project feasibility and value for money

· procurement phase – release of an expression of interest (EOI) process, followed by detailed proposals from shortlisted respondents

· contract phase – negotiation and execution of formal agreements, subject to Council resolution and OLG approval.

A full assessment and referral to the OLG Project Review Committee (PRC) may be required if certain characteristics of the proposal are considered high risk (for example, estimated total costs of more than $50 million or there is a risk of Council losing money or asset / land value if the project fails). The OLG and/or PRC may request independent specialist consultant reports on certain project issues, which will need to be funded and commissioned by Council.

Given the numerous steps as outlined above and the extended timeframe to complete each phase, it is expected that a future PPP would require significant staff time and expense. Council’s previous PPP required expenditure on a range of third party companies to provide expertise. While Council now has greater experience in managing PPPs, a project of this scale would still require:

· project management resourcing and governance oversight

· specialist probity, financial, and legal advice

· ongoing reporting to both Council and the OLG.

Next Steps

Following an initial EOI process, in the event Council wished to proceed with a formal process for the re-use of Manly Town Hall, the next steps would include:

· formalisation of the preferred outcome to be delivered on the site

· identification of alternative locations for Customer Service and staff accommodation currently located at Manly Town Hall; this forms part of the wider Accommodation Plan, scheduled for completion by the end of 2026

· preparation of a Planning Proposal

· writing to OLG to initiate the PPP process

· conducting a second EOI should the OLG approve the PPP

· follow the formal PPP pathway.

Consultation

Consultation to date has seen broad community feedback through a ‘Your Say’ page on Council’s website and targeted consultation through the project working group.

Further consultation will be required with staff and the community on any proposed relocation of Council administration offices and Customer Service from this site.

Should a Planning Proposal be progressed the community would have the opportunity to make a submission during the exhibition period.

Timing

Any re-zoning and redevelopment of the site is a multi-year process, requiring sequential steps including a planning proposal, PPP approvals, EOI processes, staff relocation, statutory approvals, and delivery of any works. Realistically, this would extend over several years.

Financial Considerations

There is no identified funding in the Long-Term Financial Plan for future capital works for re-purposing Manly Town Hall. There would be costs involved with lodging a Planning Proposal that are currently not budgeted for. The costs involved with full redevelopment of the site would be a requirement of any future contract under a PPP relationship.

Governance and Risk Considerations

As found in previous feasibility studies, the proposed use of this site as multi-use performance and entertainment space would likely result in financial operating costs that exceed revenues. As such an EOI is likely to provide feedback from the market that another commercial income stream would be required from the site to subsidise the operational costs.

There are risks associated with a lessee redeveloping an iconic heritage Council asset in Manly which would need to be carefully managed through close consultation with the community regarding any proposed future development.

A PPP process requires strict adherence to statutory guidelines to ensure transparency, fairness and value for money, and an independent probity advisor would need to be engaged.

Environmental Considerations

The subject of this report has no direct adverse environmental implications for Council. Environmental impacts of any future redevelopment would be assessed through the statutory planning process.

Social Considerations

Redevelopment of the Manly Town Hall for cultural and creative use has the potential to deliver a variety of social and cultural outcomes for the Northern Beaches Community. It is important to acknowledge that retention of an accessible Customer Service location also delivers important social and community benefits.

Link to Strategy

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

· Community and belonging - Goal 7 Our community has access to a diverse range of cultural activities and events.

· Housing, places and spaces - Goal 11 Our local centres are vibrant and healthy, catering for diverse economic and social needs.

Reporting team	Property, Buildings & Beach Services
TRIM file ref	2026/152577
Attachments	Nil

Item 13.2 Northern Beaches Council MEETING - 21 April 2026

ITEM 13.2

Revocation of Policies - Road Reserves Leases, Road Reserve and Streetscape Management, and EncroachmentS/Constructions and Road Reserve Leases

NOTE: This item was listed on the agenda but deferred by Council at the 17 March 2026 Council meeting and has been amended.

Purpose

The purpose of this report is to seek the revocation of 3 policies of the former councils.

Executive Summary

· Council’s Policy Framework (Framework) outlines the strategic principles for certain corporate documents including Council policies.

· Council is progressively reviewing all corporate documents covered by the Framework.

· Three legacy policies relating to encroachments and leases within the road reserve have been reviewed and are proposed to be revoked, as they are no longer required under the Framework:

- Encroachments/Constructions and Road Reserve Lease Policy – (former Warringah Policy)

- Road Reserve and Streetscape Management Policy – (former Pittwater Policy)

- Road Reserve Leases Policy – (former Manly Policy)

· These policies are no longer required as their provisions are already covered by existing legislation (Roads Act 1993 and Local Government Act 1993), Northern Beaches Public Space Vision & Design Guidelines and the Development Control Plan (for land within the former Pittwater LGA) which continue to regulate the design, construction and maintenance of encroachments in the road reserve.

· These policies do not set out any guidance for Council staff regarding investigation or enforcement of unauthorised works within the road reserve.

· Following revocation, Tier 3 technical guidelines will be used to provide a consistent, Northern Beaches–wide approach and will be referenced in the future Northern Beaches Development Control Plan once adopted.

RECOMMENDATION

That Council revoke the:

1. Encroachments/Constructions and Road Reserve Lease Policy (former Warringah).

2. Road Reserve and Streetscape Management Policy (former Pittwater).

3. Road Reserve Leases Policy (former Manly).

Background

Council adopted a Policy Framework (Framework) at the Ordinary Council meeting held on 28 November 2023. The Framework provides the strategic principles for all Council policies and sets out the governance arrangements for the establishment and review of Council policies and other internal facing corporate documents.

All existing Council policies and other relevant internal corporate documents are progressively being reviewed in accordance with the settings of the Framework which require that Council policies:

· provide high level strategic direction, are linked to Council’s Community Strategic Plan (CSP) and/or are required by relevant legislation and have community focus and/or significant public interest

· will, where appropriate, adopt and implement relevant model NSW Government policies which have been prepared for local government, rather than establish discrete Council policies on the same topic

· will not simply duplicate or re-state legislative requirements but, where appropriate, may expand on Council’s application of legislation.

The Framework provides that Tier 1 documents (Council policies) are governed by resolution of the elected Council, and the management of Tier 2 and 3 documents are the operational responsibility of the Chief Executive Officer.

Discussion

The Encroachments/Constructions and Road Reserve Lease Policy (former Warringah Policy), Road Reserve and Streetscape Management Policy (former Pittwater Policy) and the Road Reserve Leases Policy (former Manly Policy) all relate to the regulation of works undertaken in the road reserve by third parties (typically adjoining property owners) and were legacy policies from Warringah, Pittwater and Manly that are currently in operation.

These policies do not set out any guidance for Council staff regarding investigation or enforcement of unauthorised works within the road reserve. Collectively, the documents focus on consent pathways and risk allocation for authorised uses of road reserves, rather than directions for investigating or enforcing unauthorised works.

Revocation of these policies does not change Council’s ability to regulate the design, construction and maintenance of encroachments and manage leases in the road reserve, nor does revocation automatically allow for the construction of encroachments previously prohibited under the policies. Encroachments, leases and other works in the road reserve are also regulated under:

· Roads Act 1993 (NSW)

· Local Government Act 1993 (NSW)

· Pittwater Development Control Plan

· Northern Beaches Public Space Vision & Design Guidelines

Additionally, it is proposed that upon the revocation of these policies, guidelines (Tier 3) will be used in accordance with the Framework to provide further technical information pertaining to encroachments and leases to allow for a consistent approach to managing the design, construction and maintenance of structures/works in the road reserve across the entire Northern Beaches Council and will be referenced in the future Northern Beaches Development Control Plan once adopted.

Information for the community on the matters contained within these policies proposed for revocation is included within the Planning section on Council’s website.

Constructing any works in the road reserve managed by Council requires the permission of Council in accordance with the Roads Act 1993. Should encroachments be constructed on the road reserve without authority from Council, Council has the ability to require the demolition of the works.

Consultation

While Council’s Policy Framework encourages involvement by the community in developing and reviewing its policies, it acknowledges that consultation may not be required in all circumstances, such as where a policy is to be re-adopted or is consistent with a model policy provided by the NSW Government.

It is not proposed to undertake public consultation for the policies intended to be revoked.

Financial Considerations

The recommendations of this report have no financial impact on Council.

Governance and Risk Considerations

The recommendations of this report are in line with Council’s Policy Framework. The Framework provides for an improved governance outcome for the management of Council policies.

Environmental Considerations

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

Social Considerations

Policies are an important tool for Council to communicate its strategic direction to the community and provide visibility of the governance framework in line with Council’s key Community Strategic Plan outcome of Good Governance.

Link to Strategy

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

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

Reporting team

Transport & Civil Infrastructure

TRIM file ref

2026/152585

Attachments

⇨1 Encroachments/Constructions and Road Reserve Leases Policy (Included In Attachments Booklet)

⇨2 Road Reserve and Streetscape Management Policy (Included In Attachments Booklet)

⇨3 Road Reserve Leases Policy (Included In Attachments Booklet)

Item 13.3 Northern Beaches Council MEETING - 21 April 2026

ITEM 13.3

2 Bangaroo Street, North Balgowlah - Proposed Sale of Council Land

Purpose

The purpose of this report is for Council to consider the sale of a surplus parcel of Operational Land located at 2 Bangaroo Street, North Balgowlah, while retaining a portion of the site as public reserve.

Executive Summary

· The Independent Pricing and Regulatory Tribunal (IPART) report, which supported Council’s application for a Special Rate Variation, included a commitment by Council to deliver savings through the divestment of surplus and underutilised assets to generate $10 million.

· Council owns a property at 2 Bangaroo Street, North Balgowlah (Lot 1 DP 1296934) which includes a 3 bedroom weatherboard residential dwelling on 4,547m² of land, currently tenanted as an investment.

· It is proposed to sell a portion of the land for residential development and retain a portion of the land along the Burnt Bridge creek as public open space / creek buffer land.

· Prior to sale, infrastructure works will be required to relocate an existing Council stormwater drainage pipe affecting the land which would be funded by working capital and reimbursed from sale proceeds.

· Sale proceeds will be placed into Council’s restricted Property Reserve and may only be used for community infrastructure, environmental acquisitions, or commercial development projects.

RECOMMENDATION

That Council:

1. Adopt the recommended approach as referred to in the report.

2. Authorise the dedication of that part of 2 Bangaroo Street, North Balgowlah (part Lot 1 DP 1296934), which is proposed to be retained in public ownership as shown in Attachment 2, as a public reserve.

3. Authorise the sale of the remainder of 2 Bangaroo Street, North Balgowlah (part Lot 1 DP 1296934) as a single parcel.

4. Delegate authority to the Chief Executive Officer to:

a. appoint a suitable agent to market and sell the residential lot by the most appropriate method (e.g. public auction, expression of interest, tender or private treaty)

b. negotiate a sale price in accordance with the Land Dealings Guidelines including if the property fails to sell at auction

c. take any necessary action to give effect to this resolution.

5. Note that Attachment 4 is confidential in accordance with section 11(3) of the Local Government Act 1993 (the Act), as it relates to matters specified in section 10A(2) of the Act relating to information that would, if disclosed, confer a commercial advantage on a person with whom Council proposes to conduct business.

Background

As part of Council’s Productivity Journey and Improvement Plan 2024 endorsed through Council’s submission to IPART during the Special Variation to Rates application process, Council committed to achieving $10 million in property rationalisation savings over 5 years. While the decision to sell any Council‑owned property rests solely with the elected Council, the proposed divestment of 2 Bangaroo Street, North Balgowlah is one of the properties identified as a potential contributor to this target.

In 2006, former Warringah Council resolved to reclassify and rezone the land so that the riparian area adjoining Burnt Bridge Creek would be retained as Community Land, while the balance would be reclassified as Operational Land suitable for future residential use. This reclassification was gazetted in July 2008 and is reflected in the Warringah Local Environmental Plan 2011. Plans illustrating the site boundaries, zoning and historical planning context are provided in Attachments 1–3.

Development Consent for a three-lot residential subdivision with a separate riparian corridor lot was granted in June 2016 but was not acted upon and subsequently lapsed in 2023. Option 1 in the report generally follows the division of the site into residential and public open space as approved in this Development Application (DA). In 2022, Expressions of Interest were invited for the residential portion of the site, but the property was withdrawn from sale due to concerns raised regarding riparian protection. It was recommended that any sale be paused until completion of the Conservation Zones Review, which has now been finalised and will inform the draft Northern Beaches Local Environmental Plan (LEP), noting that the draft plan has not yet received Gateway Determination.

The site is largely undeveloped except for a small weatherboard dwelling which is currently leased. It comprises both R2 Low Density Residential and RE1 Public Recreation zoned land, with the RE1‑zoned portion adjoining Burnt Bridge Creek and containing native vegetation on moderately to steeply sloping terrain. The site also contains a Council stormwater pipe that is proposed to be relocated into the road reserve before any sale.

Discussion

The subject site is a 4,547m² irregularly shaped parcel with frontage to Bangaroo Street and residential development on 3 boundaries. The southern boundary adjoins Burnt Bridge Creek and comprises sloping land with native vegetation that functions as part of the riparian corridor. A small weatherboard dwelling occupies the northern portion of the site and is currently leased as a residential investment. The site has intermittently accommodated informal parking and temporary operational uses.

The majority of the land is zoned R2 Low Density Residential, with a strip of RE1 Public Recreation zoned land along the creek. The RE1 zoned land is proposed to be excised and retained in public ownership as a riparian reserve. Outside this area, the site has limited ecological constraints, and any future subdivision would be subject to Development Consent.

The land is not required for new public open space due to the number of neighbourhood parks nearby, including Koobilya Street Reserve and Manly Warringah War Memorial Park, nor is it suitable for sports fields or similar recreational uses given its size, shape and slope. While options for community infrastructure and affordable housing were examined, the site’s characteristics, limited dwelling yield and underlying land value indicate that residential sale is the most appropriate use. Two confidential sales appraisals for the site are provided in Attachment 4 for reference.

The site was assessed as part of Council’s Conservation Zones (C Zones) Review, undertaken by the Strategic & Place Planning (S&PP) team to inform the preparation of the new Northern Beaches LEP. The purpose of the review was to ensure a consistent, evidence‑based approach to the identification and application of environmental conservation zones across the LGA.

The review evaluated land against State and local planning criteria to identify areas with important environmental values or processes that warrant protection or long-term management. This included consideration of reserves and bushland, waterways and riparian corridors, threatened ecological communities, habitat for threatened species, regional biodiversity corridors, and land affected by high-risk natural hazards. The assessment was informed by expert external studies and detailed technical input from Council’s Catchment Management and Bushland & Biodiversity teams.

The methodology used to determine land suitable for C2 Environmental Conservation zoning followed a structured, evidence-based process aligned with the NSW Standard Instrument LEP and contemporary NSW planning reforms. Land was generally considered appropriate for C2 zoning where it demonstrated high ecological, scientific or conservation value; was largely undeveloped or minimally disturbed; required a high level of protection from development impacts; and contributed to broader environmental resilience and biodiversity connectivity across the region.

The completed C Zones Review supports future rezoning of the riparian corridor adjoining Burnt Bridge Creek to C2 Environmental Conservation in the new Northern Beaches LEP. This outcome reinforces the long-term protection of the creek corridor’s ecological values and supports its retention in public ownership as part of the broader riparian reserve network.

Consistent with the findings of the review, the balance of the site outside the riparian corridor—currently zoned R2 Low Density Residential—is proposed to transition to C4 Environmental Living under the draft new LEP. This proposal will be subject to Gateway Determination and public exhibition, during which time any prospective purchasers will have the opportunity to make formal submissions.

Any future DA would consider the appropriate biodiversity assessments, vegetation management plans, weed removal, tree protection measures and ecological oversight adjacent to the riparian reserve.

An existing Council stormwater pipe traverses the north‑eastern portion of the site and impacts development potential. Relocation of the pipe into the road reserve is recommended prior to sale to ensure essential infrastructure is not located on private land and to maximise the developable area. This work, estimated at $250,000 does not require a DA and is proposed to be funded from working capital and reimbursed from sale proceeds.

The subdivision of the land to be retained by Council as public reserve will be exempt development under the provisions of SEPP (Exempt and Complying Development Codes) 2008 as the subdivision proposes to create a public reserve.

Recommended approach

It is recommended that Council proceed with divesting 3,011m² of R2-zoned Operationally classified land for future residential subdivision and retain the existing creek buffer comprising 1,536m² of Community classified land as public reserve, as originally determined under the development application granted consent in June 2016.

This DA was notified to the appropriate Council departments responsible for bushland and creeks and catchments and it was determined that the creekline corridor as approved was appropriate for managing the flora and fauna of the area and providing a buffer between the creek and future residential development. Refer to Attachment 3 for an aerial map depicting the creekline corridor and residential components.

Should Council wish to increase the environmental buffer and reduce the developable residential land size in response to some previous community concerns about the riparian protection; the alternative option would be to divest only 2,582m² of R2-zoned land for future residential subdivision and retain an increased 1,965m2 creek buffer and public reserve.

This would expand the open space component of the site by approximately 28%, diminishing the residential component proportionally.

Consultation

Council acknowledges community interest in property decisions and is presenting this matter in a non-confidential Council report, with only commercial-in-confidence details withheld to protect Council’s negotiating position.

The option of divesting this property has been under consideration for many years, with the former Warringah Council first exploring a sale prior to amalgamation and again by the Northern Beaches Council in 2022.

Timing

As the site is currently tenanted, it is proposed that the property be marketed as a tenanted investment, with the lease transferring to the new owner. Should the purchaser wish to obtain vacant possession, they would be required to provide 90 days’ notice to the tenant, in accordance with the Residential Tenancies Act 2010.

Financial Considerations

Funding of approximately $250,000 is required to relocate the stormwater pipe prior to sale, and it is proposed that this be drawn from working capital and reimbursed from sale proceeds.

Proceeds from the sale are required to contribute to Council’s commitment under the Productivity Journey and Improvement Plan 2024, which includes a Property Rationalisation Plan identifying an estimated $10 million in revenue over 5 years through the sale of surplus and underutilised properties.

Additionally, the sale will help meet IPART’s recommendation that Council seek additional revenue through the sale of underutilised assets. Costs associated with the pipe relocation and sale of the property, including real estate agents costs, can be paid back from the sale proceeds.

In accordance with Council’s Property Management Framework, all proceeds from the sale of Council land will be placed into a restricted financial reserve established to reduce Council’s reliance on rates and to fund future community needs. Funds in this reserve may only be used for community infrastructure, environmental acquisitions, or commercial development projects. Decisions regarding the allocation of proceeds will be made by Council through a future Delivery Program.

Confidential agent appraisals of the expected sale price based on the existing riparian buffer configuration are provided in Confidential Attachment 4. This attachment also outlines the indicative impact on land value associated with the reduced developable area that would result from the alternative option.

Governance and Risk Considerations

The proposed sale aligns with the historic reclassification and rezoning of the land undertaken by former Warringah Council and is consistent with Council’s commitment under the Productivity Journey and Improvement Plan 2024 to progress property rationalisation opportunities.

The draft Northern Beaches LEP proposes rezoning the residential portion of the site from R2 Low Density Residential to C4 Environmental Living, and this potential change, together with its implications for future development potential, will be clearly communicated to prospective purchasers. Any prospective purchaser will have the opportunity to make a submission during the public exhibition of the draft LEP.

The riparian corridor, currently zoned RE1 Public Recreation, is proposed to transition to C2 Environmental Conservation under the draft LEP, providing a higher level of environmental protection and supporting its long‑term retention in public ownership. If Option 2 is adopted, the additional land to be incorporated into the riparian buffer will be mapped as C4 Environmental Living in the draft LEP, however, as this portion will remain in Council ownership, and given the time and cost associated with pursuing a stand-alone Planning Proposal, it is not considered necessary to progress rezoning at this stage. Should rezoning of this area become appropriate in future, it would be a matter for consideration by Council’s Strategic Planning team.

Environmental Considerations

The subject of this report has positive ongoing environmental implications for Council. The riparian buffer zone along Burnt Bridge Creek will be retained in public ownership and protected through its proposed rezoning to C2 Environmental Conservation, ensuring the ongoing preservation of its ecological values, habitat connectivity, biodiversity, creek bank stability, filtration of sediments and nutrients and the continuity of the creekline corridor.

Social Considerations

The recommendations in this report will have positive social outcomes for the community by enabling the creation of new residential lots within the Council area, contributing to housing supply. Proceeds from the sale will be reinvested in line with Council’s Property Management Framework, supporting environmental acquisitions, community infrastructure, and commercial developments that benefit the broader community and reduce reliance on rates.

Link to Strategy

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

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

· Good governance and participation - 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

2025/447974

Attachments

⇨1 2 Bangaroo Street, North Balgowlah - Location Plan (Included In Attachments Booklet)

⇨2 2 Bangaroo Street, North Balgowlah - Zoning Plan (Included In Attachments Booklet)

⇨3 2 Bangaroo Street, North Balgowlah - Zoning Overlay (Included In Attachments Booklet)

4 2 Bangaroo Street, North Balgowlah - Sales Appraisals (Included In Attachments Booklet) (Confidential)

⇨5 2 Bangaroo Street, North Balgowlah - Plan showing proposed addition to reserve (Included In Attachments Booklet)

Reporting team	Environment & Resilience
TRIM file ref	2025/836238
Attachments	⇨1 Draft Bush Fire Management Policy 2026 (Included In Attachments Booklet)