Port Stephens Council has continued a seven year trend of achieving financial surpluses, earning a gold star rating from councillors for not only its economic management but also for the presentation of its 2018-19 Annual Report.
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All six councillors - Paul Le Mottee, Ken Jordan, Chris Doohan, Steve Tucker, John Nell and mayor Ryan Palmer - present at the November 26 meeting spoke glowingly of corporate services manager Carmel Foster's two-volume report, available on council website.
Councillors Jaimie Abbott, Glen Dunkley, Sarah Smith and Giacomo Arnott were absent from the meeting.
The report reinforced the council's status of being "financially sustainable and fit for the future", achieving a $1million-plus surplus for the sixth year in a row after having turned around a $13 million deficit from a decade ago.
The council's surplus for 2018-19 was $1.003 million, down slightly on the previous 12 months ($1.078 million) while "keeping rates at the lowest level in the Lower Hunter region and continuing to meet our asset renewal targets and improving service delivery to our community".
Ironically, the council's strong economic position was partially blamed for having its rate rise proposal of 7.5 per cent over seven years rejected earlier this year by the Independent Pricing And Regulatory Tribunal.
In his report, general manager Wayne Wallis said that "in 2018-19 council has been firmly focused on the future [and] had a decision to make".
"We could continue to deliver the standard services and facilities our community values or invest in the future of Port Stephens to improve the lives of our community," Mr Wallis said.
"After six months of consultation, council applied for a rate rise to deliver an extensive program of works. But being financially fit and having a reasonable infrastructure backlog worked against us."
He said that despite the knock back, the council had delivered more than $25.6 million of major projects in 2018-19 and made significant progress on two priority projects: the Medowie Sport and Community facility and One Mile koala sanctuary.
"And we've been successful in securing grant funding of $25.4 million, including $11.7 million for the aerospace precinct."
Mayor Palmer also acknowledged the SRV as being one of the biggest challenges the council faced during the year.
"It was an ambitious plan. Our vision was to deliver a $100-million-plus program of infrastructure projects across Port Stephens - projects that our community asked us to deliver," he said.
"While our community wanted these projects, they told us they were not willing to pay for them through increased rates. While I'm disappointed by the outcome, I stand by this council's decision to set a bold vision for the future of Port Stephens and attempt to make it happen."
The report showed that the council's operating result produced a surplus of $25.2 million - higher than last year's surplus of $20 million.
"We received $147.5 million in revenue, with the largest income sources coming from rates and annual charges ($57.7 million); and user charges and fees ($44.7 million) including holiday park fees and RMS charges. We spent $160 million during the year - $122.3 million on operations and $37.7 million on capital additions."
Major infrastructure spending included: roads $8.2 million; drainage $4.2 million; buildings $4 million; Newcastle Airport $3.3 million; other open space or recreational assets $2.3 million; and footpaths $1.8 million.
The total amount of assets dedicated to council in 2018-19 was $10.4 million and the council's community equity (defined as its net worth) was $1 billion at June 30, 2019.
