Wollongong City Council’s draft Management Plan 2011-14 outlines a $66.7 million planned capital program for the city for 2011-12.
Major projects outlined in the draft Management Plan for 2011-2014 include:
- Completion of the $12 million refurbishment of the historic Bathers Pavilion in North Wollongong
- Implementation of the West Dapto Initial Access Strategy
- Crown Street Mall refurbishment and revitalisation
- Progressing the West Dapto Land Release area
Administrator Richard Colley said that during the past four financial years Council has been able to achieve significant operational savings of more than $11.8 million.
“This emphasis on operational cost savings has placed Council in a strong financial position,” Mr Colley said. “The level of cash that Council now holds exceeds Council’s target and this has provided us with an opportunity to invest in the increased capital program.”
For 2011-2012, Council’s projected expenses are expected to be $228.94 million, while Council’s income is expected to be $209.71 million leading to a pre-capital net deficit of $19.2 million. Council’s short to medium term financial position remains strong with a near balanced budget. In the longer term Council still sees a challenge in providing funding to renew and maintain long lived assets such as roads, bridges, pools and other recreation facilities that are integral for the city.
Council has included an additional operational savings target of $2 million in 2011-2012 and a further $1 million in each year after that in the three-year budget planning cycle.
Council also manages assets valued at more than $2.1 billion after depreciation. These assets have a current replacement value of more than $3.5 billion.
Council’s borrowings are expected to be $16.6 million at the end of 2011-2012 financial year. This includes the remaining debt from a $26.5 million interest free loan borrowed from the Department of Planning to accelerate the West Dapto Access Strategy.
Council has also set a target to maintain available funds of between 3.5 per cent and 5.5 per cent of operational revenue [pre capital].