Shoalhaven Council Covid subsidies benefit home builders

Shoalhaven bushfire victims and home builders have saved more than $1.4 million in development application and contribution fees but it has cost the council, leaving a gaping deficit.

More than $1.4 million dollars has stayed in the pockets of developers and home builders, with Shoalhaven Council waiving development application and contribution fees.

The details come as the council records a deficit of $8.9 million in the 12 months to June 2021, more than double the forecast shortfall of $4.2 million.

Hundreds of DAs have been lodged by bushfire victims with Shoalhaven City Council, which has waived application fees. Picture: Toby Zerna

The council is still awaiting a claim to cover the cost of infrastructure repairs following the black summer fires, which is expected to boost the coffers.

“These unfavourable variances are largely driven by the loss of revenue as a result of Covid-19 subsidies and closure of facilities, and additional costs associated with the pandemic,” council’s director of city performance, Kevin Voegt, said in a quarterly budget report.

More than $812,000 in development application fees, over $1 million in local infrastructure contributions and levies, and $701,000 in water and sewage availability charges were waived by the council in 12 months.

Conjola Park’s Lisa Lander is among those who have been sparred development application fees on dwellings destroyed by the black summer fires.

“They have waived 50 per cent of our rates for this financial year as well,” she said.

Mrs Lander said they did have to pay more than $200 in administration fees for the council to write to four nearby residents asking them if they object to a shed being built on their block.

“We had to pay that to rebuild the house and shed we already had,” she said.

Construction underway in Conjola Park after the black summer fires. Picture: Toby Zerna

A council spokesperson said fees on more than 250 DAs lodged by bushfire victims have been waived sine November 2019

“Council continues to waive development application fees on all bushfire-affected premises,” they said.

Sixty four per cent of DA’s were processed within 40 days, with the council reviewing processes to improve overall time frames.

Meanwhile, an additional $550,000 was spent on administration expenses, $225,000 on more cleaning because of the pandemic, and $385,000 on more staff in swim and fitness centres.

“To assist residents during the unprecedented times of the Covid-19 pandemic, as well as supporting the recovery of the region, (the) council has endorsed an extensive financial relief package,” Mr Voegt said.

“Management will continue to monitor the evolving situation and continue to exercise prudent financial management to achieve reasonable budget savings and mitigate losses.”