Waverley Council unveil balanced budget after mass depletion

The local government covering some of Sydney’s most affluent suburbs has unveiled a drastic budget turnaround, after spiralling costs and blown out projects saw council bleeding cash. See what it means for ratepayers.

An eastern suburbs council, governing the playground for much of Sydney’s rich and famous, have unveiled their new budget after a five-year spending spree tore though $75m.

Waverley Council’s draft budget and long-term financial plan for the next financial year was presented at Tuesday night’s meeting, offering a new chapter in “fiscal discipline” for the previously cash-strapped council.

This masthead can reveal from 2019 to 2024, under a Labor and Greens council, Waverley blew through tens of millions of dollars of internal cash reserves, plunging council’s safety net from $142m to just $67m.

Major contributors to the previous council’s money woes were at least three high-profile projects eclipsing both time and budget expectations.

The Boot Factory restoration project nearly tripled in costs, ending up at $26m once completed, a dramatic leap from the $8.2m it was originally budgeted for.

Tamarama Surf Life Saving Club prior to redevelopment works

Upgrades to Tamarama Surf Club also nearly doubled, from an allocated to $6.5m to $12m, with cost blow outs for both projects partly due to the contractor Lloyds Construction, going under in early 2023.

The heritage listed Bondi Pavilion also proved a costly endeavour, with the restoration project ballooning from $34m to $50m.

Bondi Pavilion redevelopment works was also a budget blow out

Now, despite gearing up to spend $210,88m for the next financial year, the council says “prudent” management will see them on track for a balanced budget.

According to council papers, operating income for 2025 to 2026 is expected to increase by $4.8m along with a $1.4m increase in capital income.

The $57m allocated toward bigger ticket expenses for the capital works program, will be funded by a $23.8m operating surplus, an external loan, capital income, and $1.8m from dipping into reserves.

For the long term, an investment of $481m over 11 years is proposed for upgrading and acquiring new assets, with $110m pledged for projects to be completed within two years.

Bondi Pavillion in 2022

Work in the imminent pipeline includes the redevelopment of Bronte Surf Life Saving Club, using an external loan of $18m, along with upgrades to North Bondi bus terminus, Rose Bay North Centre and Waverley playground.

Across the board, fees and charges for council services will increase by around 6%, a hike which Tuesday’s meeting heard was due to increased demand from living pressures.

Meanwhile, Waverley will not follow the lead of North Sydney and Northern Beaches councils’ exorbitant rate hikes, with rates to go up by 3.8%.

Domestic waste charges will also stay the same as the previous budget, in recognition of ongoing living pressures, Mayor Will Nemesh said, describing the new budget as “transformative”.

“Despite record spending on essential services and infrastructure we have decided not to increase the domestic waste charge,” Cr Nemesh said

“This underpins our commitment to give back to the community during this cost-of-living crisis.

“This budget and long-term financial plan is transformative for our community, despite being in a cost-of-living crisis we are in a position to deliver more for our community than ever before.”