At Tuesday night’s  meeting, council resolved to place its $73 million budget on public exhibition. 

Mayor Brian Petschler described the new budget as progressive and balanced.

‘‘It’s a positive, progressive, we’ve got good capital works in there.

‘‘We’ve kept it within the reins of the allowable rate increase of 2.4 per cent.’’

According to council’s report, as stressed in previous years, the traditional sources of revenue are not maintaining an appropriate link to the cost increases which council has to face each year, and if council was reliant on these traditional sources as its only form of income, there would be serious difficulties.

‘‘As council is aware the federal government has frozen the indexation of financial assistance grants and it has been estimated that this will reduce council’s grant by $71,914 in 2015/16 and over the ten-year long-term financial plan period there will be approximately $1 million less for council and the local community,’’ the report said.

‘‘Cost shifting to local government from the federal and state governments is an ongoing concern.

‘‘In preparing the budget consideration has been given to financial health indicators with the emphasis being placed on asset maintenance and renewal.’’ 

Also according to the report, major capital works over the past decade have generally been financed either by operations run by council which are self-supporting, or by other revenue sources, particularly land development.

‘‘At this stage council is not proposing to borrow any new funds in the 2015/2016 year.

‘‘Major loans will be sought in 2016/17 to provide additional funding for the Centre of Aged Care Excellence project at the Kiama Hospital site.’’

The land supply of Elambra Estate has been exhausted, and according to council’s report their delivery program and the Long Term Financial Plan are dependent on residentially zoned land owned by council at Spring Creek being developed in 2016/17.

Cr Petschler said council was ‘‘using reserves, and one of the big long-term problems we’ve got is that our land development reserve is not now being replenished because we’ve basically sold all the land that we had been developing’’.

‘‘We’ve got the Spring Creek land in the future... That will be a good revenue source for some time,’’ he said.

‘‘But after that, we’ve got nothing, and at the moment we’ve got nothing, other than land we can find within our own land holdings. 

‘‘So that is a concern for the future, is that we’ll have to find a way of funding capital works, which for the last 20 years or so we’ve been using the land development reserve to do.’’

On Tuesday night, council being able to meet the criteria set down for the state government’s Fit for the Future initiative was raised by councillor Andrew Sloan. 

‘‘So we don’t need to shave another two or three per cent off this budget right now to help us to get to that Fit for the Future operating ratio?’’ he said.

‘‘Not at this budget, but I think we need to be serious about the future, and have strategies in place to work towards getting above that line,’’ general manager Michael Forsyth said. 

The government has announced the $1 billion project, which looks to implement structural changes at the local government level, such as council amalgamations.

According to council, by July they will be making a submission to the state government on how council will be “Fit for the Future”. 

‘‘While council presently meets a majority of the sustainability, efficiency and infrastructure and service management indicators, actions will be proposed to strengthen council’s position,’’ the report stated. 

It is expected that the government’s assessment of council’s proposal will be completed in October.

‘‘Virtually all the councils will not meet all the criteria, the way they’re currently structured,’’ Cr Petschler said.

‘‘We’re in a pretty good position; we meet four of the seven criteria right now, and two of the others we’re close.’’

Key factors affecting the draft budget include:

*Council’s priority is a focus on asset maintenance and renewal and to restrict expenditure on new capital works to priority projects.

*The 2015/2016 budget includes $1.8 million for rural, regional and urban road maintenance. Also included in the capital works program is $1.6 million for resealing local roads. In addition the last remaining timber bridge in the municipality at Cloonty Road is to be replaced with a concrete bridge at a cost of $500,000.

*In 2014/15, council upgraded the Blowhole Point amenities block and provided additional toilets at the Kiama Harbour. During the 2015/16 year it is planned to upgrade the existing facilities at Kevin Walsh Oval, Jamberoo. Upgrade of the Kendall’s Beach Holiday Park amenity block, which includes public toilets, should be finalised during the year.

*A significant upgrade of the Youth Cottage is being undertaken with a new kitchen already installed, allowing additional programs to be offered.

*According to the council report, the introduction of a security surveillance system in the Kiama CBD has responded to community safety needs and the surveillance system is to be expanded to the Gerringong Town Centre in 2015/16. 

*A total of $150,000 has been allocated for an upgrade of the Jamberoo town streetscape, while $200,000 will go to the Jamberoo Valley cycleway.

*Council has allocated $650,000 towards the decommissioning of Jerrara Dam.

*Council is to progress the re-development of the Akuna Street car park for mixed use with additional parking being provided for shoppers and visitors to the Kiama town centre. During the past year, council acquired 100 Terralong Street and 1 Akuna Street which ‘‘provides an opportunity for the provision of additional public parking in the future’’. The construction of additional carparking in the vicinity of the Kiama Lighthouse is also proposed. New boat trailer parking is also to be provided at Kiama Harbour.

Other details of note:

*At Tuesday night’s meeting, councillor Neil Reilly moved that those items which have any component of revenue funding  ‘‘listed as in our budget preparation documents as ‘Capital New (not included in delivery plan)’ be placed in a specific category of ‘Unfunded, extraordinary capital projects’’. 

If a councillor wishes council to proceed with a specific project from this list, a Notice of Motion must be put, outlining the benefits and need for that project in terms of council’s Integrated Planning and Reporting Framework, clearly identifying how that project satisfies the required quadruple bottom line and identify the area of budget from which the project will be funded. The motion will be debated in open council. Cr Petschler said Cr Reilly’s motion had set up a policy.

‘‘What’s been happening, particularly in this council, there’s been some ad hoc stuff brought up from time to time, that just suddenly makes its way into works programs without really going to council,’’ he said.

‘‘So Cr Reilly’s motion in effect is a very good one, because it does create the process by which we’re going to bring matters forward to be considered.’’

The draft 2015/16 budget is open for comment until May 29.