Hornsby Shire Council Agenda and Summary of Recommendations

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AGENDA AND SUMMARY OF RECOMMENDATIONS

Acknowledgement of Country

Statement by the Chairperson:

"Council recognises the Traditional Owners of the lands of Hornsby Shire, the Darug and GuriNgai peoples, and pays respect to their Ancestors and Elders past and present and to their Heritage. We acknowledge and uphold their intrinsic connections and continuing relationships to Country."

PRESENT

NATIONAL ANTHEM

OPENING PRAYER/S

Acknowledgement of RELIGIOUS DIVERSITY

Statement by the Chairperson:

"We recognise our Shire's rich cultural and religious diversity and we acknowledge and pay respect to the beliefs of all members of our community, regardless of creed or faith."

Video and AUDIO RECORDING OF COUNCIL MEETING

Statement by the Chairperson:

"I advise all present that tonight's meeting is being video streamed live via Council’s website and also audio recorded for the purposes of providing a record of public comment at the meeting, supporting the democratic process, broadening knowledge and participation in community affairs, and demonstrating Council’s commitment to openness and accountability. The audio and video recordings of the non-confidential parts of the meeting will be made available on Council’s website once the Minutes have been finalised. All speakers are requested to ensure their comments are relevant to the issue at hand and to refrain from making personal comments or criticisms. No other persons are permitted to record the Meeting, unless specifically authorised by Council to do so."

APOLOGIES / LEAVE OF ABSENCE

political donations disclosure

Statement by the Chairperson:

“In accordance with Section 10.4 of the Environmental Planning and Assessment Act 1979, any person or organisation who has made a relevant planning application or a submission in respect of a relevant planning application which is on tonight’s agenda, and who has made a reportable political donation or gift to a Councillor or employee of the Council, must make a Political Donations Disclosure Statement.

If a Councillor or employee has received a reportable political donation or gift from a person or organisation who has made a relevant planning application or a submission in respect of a relevant planning application which is on tonight’s agenda, they must declare a non-pecuniary conflict of interests to the meeting, disclose the nature of the interest and manage the conflict of interests in accordance with Council’s Code of Conduct.”

declarations of interest

Councillors are reminded of their Oath or Affirmation of Office made under section 233A of the Act and their obligations under the Council’s Code of Conduct to disclose and appropriately manage conflicts of interest.

Clause 4.16 and 4.17 of Council’s Code of Conduct for Councillors requires that a councillor or a member of a Council committee who has a pecuniary interest in a matter which is before the Council or committee and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

4.16 A councillor who has a pecuniary interest in any matter with which the council is concerned, and who is present at a meeting of the council or committee at which the matter is being considered, must disclose the nature of the interest to the meeting as soon as practicable.

4.17 The councillor must not be present at, or in sight of, the meeting of the council or committee:

a) at any time during which the matter is being considered or discussed by the council or committee, or

b) at any time during which the council or committee is voting on any question in relation to the matter.

Clause 5.10 and 5.11 of Council’s Code of Conduct for Councillors requires that a councillor or a member of a Council committee who has a non pecuniary interest in a matter which is before the Council or committee and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

5.10 Significant non-pecuniary conflict of interests must be managed in one of two ways:

a) by not participating in consideration of, or decision making in relation to, the matter in which you have the significant non-pecuniary conflict of interest and the matter being allocated to another person for consideration or determination, or

b) if the significant non-pecuniary conflict of interest arises in relation to a matter under consideration at a council or committee meeting, by managing the conflict of interest as if you had a pecuniary interest in the matter by complying with clauses 4.16 and 4.17.

5.11 If you determine that you have a non-pecuniary conflict of interest in a matter that is not significant and does not require further action, when disclosing the interest you must also explain in writing why you consider that the non-pecuniary conflict of interest is not significant and does not require further action in the circumstances.

confirmation of minutes

THAT the Minutes of the General Meeting held on 9 April, 2025 be confirmed; a copy having been distributed to all Councillors.

Petitions

presentations

Rescission Motions

Mayoral Minutes

ITEMS PASSED BY EXCEPTION / CALL FOR SPEAKERS ON AGENDA ITEMS

Note:

Persons wishing to address Council on matters which are on the Agenda are permitted to speak, prior to the item being discussed, and their names will be recorded in the Minutes in respect of that particular item.

Persons wishing to address Council on non agenda matters, are permitted to speak after all items on the agenda in respect of which there is a speaker from the public have been finalised by Council. Their names will be recorded in the Minutes under the heading "Public Forum for Non Agenda Items".

GENERAL BUSINESS

· Items for which there is a Public Forum Speaker

· Public Forum for non agenda items

· Balance of General Business items

Office of the General Manager

Nil

Corporate Support Division

Page Number 1

Item 1 CS17/25 Investments and Borrowings For 2024/25 - Status For Period Ending 31 March 2025

RECOMMENDATION

THAT the contents of Director’s Report No. CS17/25 be received and noted.

Page Number 4

Item 2 CS20/25 2024/25 Budget - March 2025 Quarter Review

RECOMMENDATION

THAT the March 2025 Quarter Review of the Operational Plan (Budget) for 2024/25 be received and noted.

Page Number 11

Item 3 CS21/25 Draft Long Term Financial Plan 2025/26 to 2034/35 - Adoption for Public Exhibition

RECOMMENDATION

THAT:

1. Council adopt the draft 2025/26 – 2034/35 Long Term Financial Plan attached to Director’s Report No. CS21/25 and place the document on public exhibition from 15 May 2025 to 12 June 2025.

2. Following public exhibition, a further report be prepared for Council’s consideration at the 9 July 2025 General Meeting that outlines and responds to any submissions received during the exhibition period and recommends the adoption of Council’s 2025/26 – 2034/35 Long Term Financial Plan.

Community and Environment Division

Nil

Planning and Compliance Division

Page Number 19

Item 4 PC9/25 Report on Submissions - Hornsby Town Centre Public Domain Plan, Development Contributions Plan and Development Control Plan Amendments

RECOMMENDATION

THAT:

1. Council endorse the Hornsby Town Centre Public Domain Guidelines, Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and amendments to Hornsby Development Control Plan 2024 attached to Director’s Report No. PC9/25.

2. Notification be published on Council’s website.

3. Submitters be advised of Council’s decision.

Infrastructure and Major Projects Division

Nil

PUBLIC FORUM – NON AGENDA ITEMS

Questions with Notice

Page Number 32

Item 5 QWN1/25 Synthetic Sports Fields

Mayor's Notes

Page Number 33

Item 6 MN4/25 Mayor's Notes 01 April 2025 to 30 April 2025

Notices of Motion

SUPPLEMENTARY AGENDA

MATTERS OF URGENCY

Director's Report No. CS20/25

Corporate Support Division

Date of Meeting: 14/05/2025

2 2024/25 BUDGET - MARCH 2025 QUARTER REVIEW

EXECUTIVE SUMMARY

· Accountable organisations like Council review their budget and operational performance at least each quarter. In this regard, the March 2025 Quarter Review of the 2024/25 Operational Plan and Budget is attached for Council’s consideration.

· The 2024/25 Original Budget forecast a surplus at 30 June 2025 of $1.983 million. The September 2024 Review had no net budget changes, whilst the December 2024 Review included budget changes of $100K that reduced the forecast surplus at 30 June 2025 to $1.883 million. This March 2025 Review recommends no net budget changes.

· While no net budget changes have been made that affect the forecast surplus, the Capital Works Program has been reduced by $26.487 million in line with revised timelines from project managers. Budgets have been restricted according to their original funding source and where possible will be returned in future years to complete capital projects as planned.

· The Capital budget reduction of $9m in respect of Westleigh Park relates to the ongoing discussion with the NSW Government regarding the retention of grant funds.

· This Report also provides Council with an update about the status of major projects that are of significant dollar value or of community interest.

RECOMMENDATION

THAT the March 2025 Quarter Review of the Operational Plan (Budget) for 2024/25 be received and noted.

PURPOSE

The purpose of this Report is to present for Council’s consideration the March 2025 Quarter Review of the 2024/25 Operational Plan.

BACKGROUND

On 12 June 2024, Council adopted the 2024-2027 Delivery Program including the 2024/25 Operational Plan and Budget. The Delivery Program and Operational Plan set out the manner in which Council intends to deliver services and measure performance.

In line with Office of Local Government requirements, a Quarterly Budget Review Statement (QBRS) must be submitted for Council’s consideration at the end of each quarter. The Statement must be based on key financial indicators and the estimate of income and expenditure set out in Council’s Operational Plan for the relevant year.

DISCUSSION

This Review includes the third quarter results for 2024/25 comparing actual expenditure, income and funding sources for the third quarter against the Budget. The Net Operating and Capital Result after internal funding movements showed a positive variance of $7.46 million or approximately 5% of the consolidated year to date budget. This positive variance is largely the result of timing differences associated with project related works that are expected to be expended by 30 June 2025.

The 2024/25 Original Budget forecast a surplus at 30 June 2025 of $1.983 million. The September 2024 Review recommended no net budget changes, whilst the December 2024 Review approved budget changes of $100K that reduced the forecast surplus at 30 June 2025 to $1.883 million. This March 2025 Review recommends budget changes that net out to zero, thus retaining the forecast surplus at 30 June 2025 of $1.883 million.

The predicted budget result is satisfactory in maintaining Council’s existing liquidity levels.

Council committed to adopting a balanced budget each year as part of the justification for the Special Rate Variation, which includes achieving an end of year result that meets the financial performance measures set by the Office of Local Government. It is therefore recommended that the forecast surplus be retained to enable Council to respond in a timely manner towards events such as infrastructure assets that may fail, the impact of natural disasters on local service provision and clean-up costs, or cost shifting from other tiers of government, without affecting the normal continuance of service provision throughout the year.

During the quarter Council Officers have received a request from councillors to progress long term actions in the Rural Land Study requiring additional funding of $450K. It would be financially prudent to consider this matter when the 30 June 2025 year end result is reported to Council at the 13 August 2025 General Meeting. Subject to the achievement of the forecast surplus of $1.883 million it may be possible to set the funding required aside in an internally restricted asset account that would enable the initiative to be delivered in future years.

Capital Works Program

The 2024/25 Capital Works Program includes budget estimates for Council’s capital projects.

Advice has been sought from project managers throughout the year in respect of forecast expenditure at 30 June 2025, taking into account the most recent timelines for multi-year projects, with adjustments made in previous quarters to reflect the anticipated timing of project milestones. During the March quarter, it became clear due to a range of reasons that numerous capital projects would not meet their expenditure target for 2024/25.

As a result, the attached Capital Works Program includes budget changes of $26.487 million that reduce the capital budget for the 2024/25 financial year from the original $78.139 million to $51.652 million. These budget adjustments have been restricted according to their original funding source, and where appropriate will be returned in future years to complete capital projects as planned.

Key budget adjustments include:

· Westleigh Park – budget changes to revise the full year budget down by $9.0 million from $10.0 million to $1.0 million.

· Ongoing discussions with the Office of Local Government regarding the retention of grant funds has not yet been resolved and the budget has been reduced to $1 million to reflect a small allocation of development contributions available for the project which will allow the project to achieve a construction certificate, which is a pre requisite to construction activity on the site.

· Hornsby Park - budget changes to revise the full year budget down by $1.1 million from $13.0 million to $11.9 million in line with a revised timeline from the project manager for this project.

· Brooklyn Wharf – the budget of $650K has been removed following challenges extending the deadline for the grant awarded to deliver works. An application to secure an alternative grant has been lodged that would enable delivery in future years.

· Hornsby Town Centre Safe Speed – budget changes to reduce the budget by $2.57 million from $2.77 million to $200K in line with a revised timeline from the project manager for this project. The continuation of the project is dependent on an extension of the deadline for the grant from 30 June 2025 to 31 December 2025 and discussions between Transport for NSW and the project team are ongoing in respect of this matter.

· Asquith to Mount Colah Public Domain – budget changes to revise the full year budget down from $2.4 million to $1.7 million due to $700K of estimated savings, which will fund planning and design works for stage 2 in 2025/26.

· Mark Taylor Oval – budget changes to revise the budget down by $2.0 million from $3.5 million to $1.5 million following a revised timeline for the refurbishment of the Pavilion. The project is currently forecast to achieve practical completion in December 2025.

· Property Acquisition (Cherrybrook) – the budget of $1.53 million will be carried forward to 2025/26 as the acquisition is now expected to be completed after financial year end.

· A number of minor projects have completed under budget.

· Corporate Items – the reactive asset renewal budget of $1.48 million has been transferred to an internally restricted asset account, allocated to asset management expenditure in future years.

STATUS – MAJOR PROJECTS

Updates in respect to the progress of projects of significant dollar value or of community interest are noted below.

· Foxglove Oval – As reported in successive Quarterly Review reports to Council the estimated cost of landfill remediation works at Foxglove Oval will exceed the balance on hand in Council’s Domestic Waste Management externally restricted asset reserve by $23.38 million based on detailed costings prepared by the relevant Director and Project Manager.

In the March 2024 Quarter Review, $23.38 million was set aside from Council’s Capital Projects and Restricted Working Funds internally restricted asset account to fund an internal loan to Domestic Waste for this purpose, with all costs incurred to be recovered through future increases in Domestic Waste Annual Charges.

Whilst Council remains in a stable financial position, a reduction in cash of this size will impact on investment returns, thereby weakening Council’s liquidity position until the loan can be repaid. This places greater emphasis on the need for prudent fiscal management over future years, as set out in successive versions of Council’s Long Term Financial Plan including the continuation of the adoption of a balanced budget each year and maintenance of cash reserves at existing levels. Any funding transferred from cash reserves to respond to financial challenges and unforeseen events is to be repaid as soon as practicable, to ensure Council’s long term financial sustainability.

A separate report, providing a detailed overview of the history of the project to date as well as the forecast program of works, was referred to Council at the General Meeting held on 10 July 2024 in Directors Report CE7/24, Foxglove Oval Remediation Works Update.

Year to date expenditure at 31 March 2025 is $2.486 million and a plan to repay the loan amount through future increases in Domestic Waste Annual Charges has been developed, commencing with a 10% increase as included in Council’s draft 2025/26 Fees and Charges that was adopted for public exhibition at the 9 April 2025 General Meeting.

· Hornsby Park – At the 14 April 2021 General Meeting (in Deputy General Manager’s Report No. IM2/21 – Master Plan for Hornsby and Westleigh Parks) it was noted that the total estimated cost of the program of works included in the Hornsby Park Master Plan is significantly above the total level of funding available. Council resolved to acknowledge that a financially responsible approach requires the project to be staged commensurate with available funding.

During the year, Council was awarded a grant of $12 million from the Australian Government through the Thriving Suburbs grant scheme to fund the planned Field of Play at Old Mans Valley. This brings the total funding provided to this project to $91.3 million (plus interest earned on grant funds). This is made up of:

o $50 million grant from the NSW Government through the Stronger Communities grant scheme (100% of this grant and interest earned to date has been spent).

o $12 million Thriving Suburbs grant.

o $28 million allocated from development contributions, of which $12 million is required as a co-contribution for the Thriving Suburbs grant.

o $1.3 million of SRV funding for Shared Paths that is proposed to be expended on improvement works at Quarry Road.

The SRV did not provide any additional funds for the project over the next 10 years, and the Long Term Financial Plan does not provide for any general funds. Modelling in previous versions of Council’s Long Term Financial Plan indicated that exceeding the level of external funding available would reduce Council’s long term financial sustainability. Council is continuing to work to identify additional funding sources to deliver the Master Plan.

The total life to date expenditure on the project to 31 March 2025 is $57.598 million. Year to date expenditure to 31 March 2025 is $10.456 million compared to a year-to-date budget of $9.78 million and full year budget of $13 million. As noted above, this report proposes the full year budget be reduced by $1.1 million to $11.9 million in line with a revised timeline from the project manager for this project.

To protect Council from cost escalations as the redevelopment of the site progresses, a number of mitigation strategies have been agreed:

o The allocation of a 30% contingency for all components of the project, noting ongoing challenges in the external environment, including inflationary price increases, supply side shortages for materials and labour, and the impact of severe weather events and natural disasters.

o Staging the works over time, by splitting the project into components with discrete budgets. Some components would start only after others have been completed, with the budget available for later components being adjusted based on remaining budget available at the time, with appropriate contingency provisions.

o Works contracts to include suitable termination clauses to provide the option of ceasing work if costs escalate.

o Provision of information for consideration by Executive Leadership Team members in respect to approving when work on components can commence.

· Westleigh Park – $40 million of funding was originally provided from the NSW Government’s Stronger Communities Fund and allocated to the delivery of stage one. As noted in Deputy General Manager’s Report No. IM2/21 – Master Plan for Hornsby and Westleigh Parks (considered at the 14 April 2021 General Meeting), the total estimated cost of all facilities canvassed in the Master Plan was significantly above this level of funding.

During the 2023/24 financial year Council received notification from the Office of Local Government that remaining grant funding in the order of $36 million would be required to be returned. Council is continuing to assess its options in respect to this notification.

As noted in the Financial Risks section of Council’s adopted 2024/25 – 2033/34 Long Term Financial Plan and draft 2025/26 – 2034/35 Long Term Financial Plan, the notification received jeopardises the future of the project as insufficient available financial capacity is forecast over the next ten years to replace funding of this magnitude.

The total life to date expenditure to 31 March 2025 on this project (excluding the acquisition costs of $21 million funded by development contributions) is $6.515 million. Financial year to date expenditure at 31 March 2025 is $330K ($259K related to capital expenditure) that has been funded from a budget of $1 million from development contributions available for the project.

A Development Application for the project was approved by the Sydney North Planning Panel on 9 December 2024 with 133 conditions of consent.

The redevelopment of the site is Council’s second largest project; therefore, it would be financially prudent to follow the same mitigation strategies as noted for Hornsby Park, should the project proceed.

· Asquith to Mt Colah Public Domain – Upgrade works on Peats Ferry Road, Asquith between Hookhams Corner and Wattle Street have been completed. The corridor from Asquith to Mt Colah will be undertaken in two stages. Stage one includes works between Amor Street and Yirra Road, and stage two is from Yirra Road to Parklands Avenue.

The total life to date expenditure to 31 March 2025 on this project is $5.804 million out of a budget of $9.3 million, subject to the availability of development contributions. Year to date expenditure at 31 March 2025 is $1.031 million compared to a current year to date budget of $1.8 million and full year budget of $2.4 million.

Works for stage one are substantially complete and as outlined above, the attached Capital Works Report proposes that the full year budget be reduced to $1.7m. The $700k savings achieved on stage one will fund planning and design works for stage 2 in 2025/26. The construction of stage two is dependent on the collection of additional development contribution funding.

· Galston Public Domain – Council endorsed the Galston Village Public Domain Plan (Report No. IM6/24) on 10 July 2024 following public exhibition and community engagement.

Consultants were engaged in early December 2024 for detailed design development that is estimated to be completed by May 2025 with TfNSW approval. Once complete the project will proceed to Construction Tender.

The total life to date expenditure to 31 March 2025 on this project is $196K out of a budget of $7.1 million from an internally restricted asset account set aside using budget surpluses achieved in prior financial years. Year to date expenditure at 31 March 2025 is $168K (including $85K capital expenditure) compared to a current year to date budget of $600K. Attachment 2 - Revised Capital Works Program includes a budget change to revise the full year budget down by $400K from $800K to $400K.

BUDGET

This Report provides the March 2025 Quarter Review of the 2024/25 Operational Plan (Budget), which, if adopted, will achieve a forecast surplus at 30 June 2025 of $1.883 million. The predicted Budget result at 30 June 2025 is satisfactory in maintaining financial benchmark indicators in respect to liquidity and it would be financially prudent to continue to hold the surplus to respond to unforeseen budget shocks that may occur over the course of the year.

Details of budget changes to the 2024/25 Capital Works Program have been included in this report as Attachment 2 - Revised Capital Works Program 31 March 2025 resulting in a decrease of $26.487 million. This amount has been offset by the need to set aside these funds in reserves so that they can be reallocated in future years to complete these capital projects.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

Council’s consideration of this Report ensures that relevant statutory requirements have been met.

Council remains in a stable position to deliver local services and facilities in a financially responsible manner. However, it is noted that setting aside funds for the remediation of Foxglove Oval has materially depleted liquidity levels. Because of this, Council’s adopted 2024/25 - 2033/34 Long Term Financial Plan and draft 2025/26 - 2034/35 Long Term Financial Plan include recommendations for remaining cash reserves to be maintained at existing levels, with any funding transferred to respond to other immediate financial challenges, opportunities or unforeseen events be repaid as soon as practicable, to ensure Council’s long term financial sustainability.

The March 2025 Quarter Review has reduced the total amount of the capital works budget, with these funds to be transferred, where possible, to the following financial years so that projects can be completed as originally planned.

Capital budget reductions in respect of Westleigh Park ($9 million), Brooklyn Wharf ($650K) and Hornsby Town Centre Safe Speed ($2.57 million) relate to grant funded works where the original grant deadline has passed. The continuation of these projects is therefore dependent upon the extension of deadlines or the identification of alternate funding sources.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Chief Financial Officer – Duncan Chell – who can be contacted on 9847 6822.

Duncan Chell

Chief Financial Officer

Corporate Support Division

Sharon Bowman

Acting Director Corporate Support

Corporate Support Division

Attachments:

1.	Quarterly Budget Review Statement 31 March 2025
2.	Revised Capital Works Program 31 March 2025

File Reference: F2024/00060

Document Number: D09113952

Director's Report No. CS21/25

Corporate Support Division

Date of Meeting: 14/05/2025

3 DRAFT LONG TERM FINANCIAL PLAN 2025/26 TO 2034/35 - ADOPTION FOR PUBLIC EXHIBITION

EXECUTIVE SUMMARY

· Under section 403 of the Local Government Act, councils are required to prepare a Long Term Financial Plan in detail every four years that aligns to the integrated planning and reporting (IP&R) framework mandated by the Office of Local Government. The Plan is to be updated annually when developing the Operational Plan. The IP&R framework requires the Long Term Financial Plan to be placed on public exhibition and for submissions received by Council in that period to be noted and considered before the final adoption by Council and endorsement of the Long Term Financial Plan.

· A revised 2025/26 to 2034/35 Long Term Financial Plan has been prepared that includes income and expenditure allocations that align with Council’s original application for the approved Special Rate Variation (SRV), as well as allowing for discretionary and non-discretionary cost increases incurred since the SRV was approved.

· This revised version of the Plan indicates that forecast financial capacity has declined and the average annual forecast budget (cash) surplus has reduced by $1.9 million per year, from $3.0 million when the SRV was approved to $1.1 million in this version of the Plan. Council is unable to sustain future cost increases of this magnitude, and the average budget (cash) surplus forecast is insufficient to protect Council from budget shocks that typically occur from year to year and that have a higher likelihood of occurrence over the ten-year term of the Plan.

· Action is required to increase forecast financial capacity back to the level when the SRV was approved and the plan includes a number of recommendations that, if followed, should ensure that Council remains financially sustainable over the long term.

RECOMMENDATION

THAT:

1. Council adopt the draft 2025/26 – 2034/35 Long Term Financial Plan attached to Director’s Report No. CS21/25 and place the document on public exhibition from 15 May 2025 to 12 June 2025.

PURPOSE

The purpose of this Report is to present for Council’s adoption the draft 2025/26 to 2034/35 Long Term Financial Plan (LTFP) such that the document can be placed on public exhibition from Thursday 15 May 2025 to Thursday 12 June 2025. After the exhibition period Council will reconsider the LTFP for final adoption at the 9 July 2025 General Meeting.

BACKGROUND

Under section 403 of the Local Government Act, a council is required to have a long-term Resourcing Strategy that includes a Long Term Financial Plan aligned to the IP&R framework mandated by the Office of Local Government.

The LTFP must be for a minimum of 10 years and make clear the financial direction of Council as well as the impact of that direction on achieving community priorities.

The main purpose of the LTFP is to guide and inform decision-making in respect of Council’s financial sustainability and to ensure that Council has sufficient financial resources to fund asset maintenance and renewal and provide services to the standard that the community expects. The LTFP establishes the framework for sound financial decisions and provides an insight as to the financial sustainability of Council over the 10-year planning period of the document. The key objectives in developing the LTFP are:

· To achieve balanced budgets and income statement results that provide sufficient capacity to respond to budget ‘shocks’ as they arise.

· To maintain into the future a level of service that the community has come to expect.

· To ensure that assets provided by Council are designed and funded to meet a defined level of demand and/or need of the community.

· To achieve continuous financial improvement.

· To continue Council’s debt free position.

· To maintain Council’s historically strong liquidity position and retain historic cash reserves.

· To achieve/maintain financial sustainability benchmarks (i.e. indicators prescribed by the OLG).

Previous versions of the Long Term Financial Plan (LTFP) that were adopted by Council in July 2022 and November 2022 concluded that forecast financial capacity was below acceptable levels and action was required to ensure that recurrent services, including allocating appropriate budgets for asset maintenance and renewal could be provided in a sustainable manner into the future. These versions of the Plan recommended a Special Rate Variation (SRV) to rebalance Council’s finances within acceptable levels over the long term. A special rate variation was recommended in the first instance because of the quantum of funds required to provide balanced budgets, with rates representing Council’s largest income stream.

Following the adoption of the 2023/24 – 2032/33 Long Term Financial Plan in November 2022 and based on modelling within that Plan Council commenced a significant project to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a total rate increase of 28% (31% cumulative increase) over 4 years inclusive of the estimated annual rate peg and comprising four consecutive rate increases of 8.5% in 2023/24, 7.5% in 2024/25, 6.5% in 2025/26 and 5.5% in 2026/27. Following a rigorous application to IPART, which included extensive community engagement an approval was granted by IPART in full in June 2023.

The LTFP has been updated once since the SRV was approved with this previous version of the Plan spanning a forecast period from 2024/25 to 2033/34. This plan noted that Council had incurred a number of unexpected cost increases since the SRV was approved. Most of the increases were broadly attributable to a continuation of the high inflationary environment for longer than economists at the time had predicted, and whilst forecast expenditure had increased, forecast investment income returns had also risen, which offset a portion of the total cost increase incurred. This previous version of the Plan therefore concluded that whilst some improvement was required, the Special Rate Variation was continuing to rebalance Council’s projected financial capacity. A number of recommendations were included that were designed to increase financial capacity back to the level forecast at the time the SRV was approved.

A further revision of the LTFP has now been completed to align with the next long-term resourcing strategy from 2025/26. This revised version of the Plan commences two years after the SRV was approved and spans a ten-year term from 2025/26 to 2034/35. This version therefore further assesses the success of Hornsby Shire Council in maintaining financial capacity, including whether capacity has increased back to the level forecast when the SRV was approved.

The draft LTFP is required to be placed on public exhibition and any submissions received during the period must be accepted and considered before final adoption of the LTFP by Council.

DISCUSSION

LTFP Summary

The LTFP is based on Council’s 2025/26 draft budget that was placed on public exhibition at the General Meeting held on 9 April 2025 and is currently scheduled to be referred to Council for adoption on 11 June 2025 following a review of submissions received. The 2025/26 draft budget forms year one of ten of the forecast period of the Plan. The 2024/25 budget as at the 31 December 2024 Quarterly Review is also disclosed in the Budget results as a reference point in the year before the ten-year forecast period commences. The actual audited Financial Statement results for the year ended 30 June 2024 are disclosed within the Income Statement, Balance Sheet and Cash Flow Statement results.

Future years are based on a range of forecasted assumptions used to determine:

· Future revenue and expenditure (Income Statement result including non-cash items prescribed by Australian Accounting Standards and a budget cash/liquidity result in the same format as reported to Council through the annual budget cycle/Integrated Planning and Reporting Framework).

· Balance Sheet and Cash Flow Statements.

· A projection for a range of key financial indicators prescribed by the Office of Local Government.

Council’s future financial position has been forecast based on a continuance of ‘normal operations’. This is difficult to define but can be regarded as the provision of services to stakeholders at levels of service that they have come to expect on a regular basis that have been determined through a range of community consultation. It is noted that levels of service may not remain the same given changes in community expectations in future years of the Plan. In this regard it is noted that ‘normal operations’ has been forecast as a minimum level over the life of the Plan as the community has indicated.

The LTFP also includes income and expenditure allocations that align with Council’s original application for the SRV, which canvassed the following objectives:

· Provide funding for the normal continuance of services into the future.

· Fund the requirements identified in Council’s Asset Management Plans and Asset Management Strategy funded by an SRV allocation of $4.1 million per year, on average.

· Provide recurrent funding from the SRV for Hornsby Park once construction is complete.

· Address the aspirations of the community as identified in numerous technical documents and strategies by funding Strategic Initiatives of $6.7 million per year from the SRV, on average.

· Forecast income based on a total rate increase of 28% (31.05% cumulative), comprising four consecutive increases of 8.5% in 2023/24, 7.5% in 2024/25, 6.5% in 2025/26 and 5.5% in 2026/27.

An additional objective to those listed above was to forecast an adequate budget surplus each year to provide capacity to respond in a timely manner towards infrastructure assets that may fail, the impact of natural disasters on local service provision and cost shifting from other tiers of government. The original LTFP that supported the SRV forecast an average budget (cash) surplus of $3.0 million per year, which was considered sufficient to provide the level of financial capacity required, whilst balancing the impact on the community at the time, noting that aiming for a forecast surplus above this level would have required a larger rate increase. It is considered financially prudent to continue to target a budget surplus of this level (e.g. $3.0 million per year, on average) to respond to one off budget shocks that can occur over the course of the year and not affect the normal continuance of service provision, noting the commitment of ongoing balanced budgets to ensure Councils long term financial sustainability was made to the community during the SRV application process and community engagement.

The LTFP has been updated once since the SRV was approved, with this previous version of the Plan spanning a forecast period from 2024/25 to 2033/34. This plan noted that Council had incurred a number of unexpected cost increases since the SRV was approved. Most of the increases were broadly attributable to a continuation of the high inflationary environment for longer than economists at the time had predicted, and whilst forecast expenditure had increased, forecast investment income returns had also risen, which offset a portion of the total cost increase incurred. The combined impact of these changes was a reduction in the average forecast Budget (cash) surplus over the ten-year term of the previous Plan from $3.0 million in the SRV version to $2.3 million in the 2024/25 – 2033/34 Plan.

This previous version of the Plan therefore concluded that whilst some improvement was required, the Special Rate Variation was continuing to rebalance Council’s projected financial capacity. A number of recommendations were also included, that were designed to increase financial capacity back to the level forecast at the time the SRV was approved. Key recommendations included maintaining cost increases at modest levels, ensuring no new positions for permanent staff from Council’s general fund were created (unless offset by an equivalent position elsewhere), and pursuing opportunities to increase income through streams other than rates, such as by renewing contracts for advertising space across the Shire.

LTFP 2025/26 – 2034/35

A further revision of the LTFP has now been completed to align with the next long-term resourcing strategy from 2025/26. This revised version of the Plan commences two years after the SRV was approved and spans a ten-year term from 2025/26 to 2034/35. This revised version of the Plan therefore assesses the success of Hornsby Shire Council in maintaining financial capacity, including whether capacity has increased back to the level forecast when the SRV was approved, as was recommended by the version of the Plan adopted last year.

The Plan has been prepared on the same basis as both the previous version (2024/25 – 2033/34) and the SRV version (2023/24 – 2032/33) and therefore continues to include all income and expenditure allocations that provide for the normal continuance of services based on Council’s latest budget, and consistently includes allocations in line with Council’s approved SRV program of expenditure and Asset Management Strategy.

Despite the recommendations made in the previous version of the Plan, forecast financial capacity has continued to decline over the past 12 months and the average annual forecast budget (cash) surplus has reduced to $1.1 million per year, which is $1.9 million per year less than the surplus of $3.0 million that was forecast when the SRV was approved. The decline in financial capacity is attributable to further cost increases incurred by Council over the course of the past year.

Version of Plan	Average Budget (Cash) Result
2025/26 – 2034/35 (this Plan)	$1,091,503
2024/25 – 2033/34 (previous Plan)	$2,304,325
2023/24 – 2032/33 (Plan used to support SRV)	$2,996,613

Non-discretionary Cost Increases

As noted, the cost increases incurred between 2023/24 (SRV Plan) and 2024/25 (previous Plan) were broadly attributable to a continuation of the high inflationary environment for longer than economists at the time predicted, including increases for grass cutting on renewal of this contract, significant workers compensation and general insurance price increases, an increase in the Emergency Services Levy in 2023/24, and salary and wage increases prescribed by the Local Government Award greater than the level forecast at the time of the SRV. These cost increases, when offset by increased investment income, reduced forecast financial capacity by an average of $700K per year but and non-discretionary in nature due to being largely caused by factors external to Council.

Discretionary Cost Increases

The cost increases incurred between 2024/25 (previous Plan) and 2025/26 (this Plan) include $808K to fund newly created staff positions in the Infrastructure & Major Projects Division to assist in delivery of key services and projects and $409K to progress Property Strategy matters to deliver key works and initiatives identified by Council. These cost increases are discretionary in nature due to being incurred internally for reasons within Councils control, albeit identified in Councils plans. Initiatives to fund staff associated with the employment of an aboriginal officer, employees to undertake projects associated with the implementation of the Rural Lands Study and management of waste water systems through the rural area have also added to this burden.

Council is unable to sustain future cost increases of this magnitude, noting that the average budget (cash) surplus forecast of $1.1 million per year is less than the total value of discretionary cost increases incurred over the past 12 months of $1.2 million. The surplus forecast is also insufficient to protect Council from budget shocks that typically occur from year to year and which have a high likelihood of occurrence over the long term of the Plan (e.g.10 years). The risks section of the attached LTFP identifies a number of risks that may give rise to further non-discretionary cost increases over which Council has limited control (e.g. budget shocks) such as rising electricity costs and the potential for future remediation works at historic landfill sites. Additionally, a Sensitivity Analysis completed within the Plan has identified that Council is highly reliant on investment income to balance the budget each year and the cash surplus forecast is insufficient to withstand even a 1% decrease in investment returns below the level forecast. For these reasons the level of financial capacity currently forecast is regarded as insufficient and action is required to increase capacity back to the level when the SRV was approved (e.g. an average budget (cash) surplus of $3 million per year). This requires an increase in forecast financial capacity of $1.9 million per year, on average.

The forecast Income Statement (non-cash) results also highlight a trend of diminishing capacity over time, from a forecast surplus of $6.3 million in 2026/27 to $1.6 million in year 10 of the Plan. This trend of diminishing results over time is similar to the trend witnessed in successive versions of the Plan that led to the SRV. In the years prior to the SRV, the LTFP was characterised by a gradual erosion of financial capacity over time, with diminishing results in later years eventually turning into deficits during each annual update of the Plan. Financial capacity needs to be increased to reverse the trend of diminishing results and ensure Council remains financially sustainable into the future:

Income Statement	2026	2027*	2028	2029**	2030	2031	2032	2033**	2034	2035
Non-cash Surplus ($M)	$4.80	$6.31	$3.89	$2.35	$3.91	$3.66	$3.39	$1.78	$2.68	$1.64

*The surplus forecast in 2027 increases as this is the last year of the SRV and includes a 5.5% rate increase

**Surpluses forecast in 2029 and 2033 are lower due to the estimated cost of the Council Election of $1.05 million in these years

As the budget (cash) result forecast is unlikely to be sufficient to protect Council from budget shocks, and the Income Statement (non-cash) result indicates a trend of diminishing financial capacity over time, the Plan continues to include recommendations that if followed, should increase financial capacity back to the level when the SRV was approved. The recommendation included in previous versions of the Plan for cost increases to be maintained to modest levels has been strengthened to specify that no further non-discretionary recurrent cost increases are to be incurred, unless they are offset by the substitution of an existing budget elsewhere.

A key recommendation has also been added that calls for Council’s Executive Leadership Team to develop specific actions to progress the recommendations included in the Plan, and for an informal briefing with councillors to be held to discuss the outcomes and next steps to increase financial capacity.

Additional Recommendations

· No further non-discretionary recurrent cost increases to be incurred unless offset by the substitution of existing budgets elsewhere.

· No new positions to be created unless offset by an equivalent position elsewhere, or unless funding is identified such as from external grants, existing capital works budgets or additional income, with a business case required for the creation of new positions.

· If achieved, surpluses forecast in 2025/26 and 2026/27 are to be set aside in a restricted asset account to cover deficits forecast in 2027/28 and 2028/29.

· Council to consider increasing User Charges and Fees to catch up on missed cost growth.

· Council’s advertising space at bus stops and bus shelters to be retendered with the aim of increasing the level of income received compared to current levels and to seek an extension of areas utilised for this purpose.

· Cash reserves to be maintained at existing levels, with any funding transferred to respond to immediate financial challenges or unforeseen events to be repaid, to preserve Council’s cash liquidity position over the term of this Plan and beyond.

· Consideration for paid parking to be implemented on a staged basis with the aim of testing the assumptions that underpin the Car Parking Management Study before committing significant funding to new infrastructure and technology.

· The S7.11 Development Contributions Plan to prioritise projects that maximise development contribution funding on hand instead of Council’s general fund.

· No new loan borrowing to be undertaken.

· Continuance of financial improvement initiatives (the development of business improvement plans and service reviews) ensuring that any such plans are based on a principle of increasing financial capacity, having caution to potential cost increases that can arise from improvements generated from the implementation of new technology.

· Maximise returns from Council’s property holdings subject to appropriate business cases, including independent due diligence of key financial assumptions. A review of progressed initiatives to be undertaken that examines whether the benefits forecast in the original business case have been achieved.

· Progress areas for improvement identified in Council’s Asset Management Plans to ensure assets used by the community are maintained and renewed to the level of service required to further protect Council from the risk of budget shocks from reactive asset maintenance.

· Future capital grants to be carefully considered, including identification of a funding source for funding gaps and recurrent costs before they can be accepted. It is recommended that Council decline future capital grants for major new discretionary infrastructure projects unless additional funding to cover ongoing maintenance and renewal costs is identified, noting the current forecast Budget (cash) surplus is insufficient to fund an expansion of Council’s asset base above the level already forecast.

If the above actions are addressed progressively over coming years, Council’s forecast financial capacity should increase. Increasing financial capacity back to when the SRV was approved should ensure that Council remains financially sustainable over the long term.

BUDGET

All budget implications have been included in the Discussion section of this Report.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

Council’s consideration of this Report enables an understanding of the future financial position over the next 10 years in respect to maintaining a continuance of normal services into the future including providing the level of funding necessary to maintain and renew assets to the level of condition required.

Forecast financial capacity has declined and the average budget (cash) surplus forecast is insufficient to protect Council from budget shocks that typically occur from year to year and that have a higher likelihood of occurrence over the ten-year term of the Plan.

Action is required to increase forecast financial capacity back to the level when the SRV was approved and the plan includes a number of recommendations that, if followed, should ensure that Council remains financially sustainable over the long term.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Chief Financial Officer, Duncan Chell who can be contacted on 9847 6822.

Duncan Chell

Chief Financial Officer

Corporate Support Division

Sharon Bowman

Acting Director Corporate Support

Corporate Support Division

Attachments:

Draft 2025/26 to 2034/35 Long Term Financial Plan

File Reference: F2024/00060

Document Number: D09114025

Director's Report No. PC9/25

Planning and Compliance Division

Date of Meeting: 14/05/2025

4 REPORT ON SUBMISSIONS - HORNSBY TOWN CENTRE PUBLIC DOMAIN PLAN, DEVELOPMENT CONTRIBUTIONS PLAN AND DEVELOPMENT CONTROL PLAN AMENDMENTS

EXECUTIVE SUMMARY

· At its meeting on 12 March 2025, Council resolved to exhibit the draft Hornsby Town Centre Public Domain Guidelines, Hornsby Town Centre Development Contributions Plan and amendments to the Hornsby Development Control Plan (DCP) 2024.

· The draft documents provide the framework for the design of development, funding of local infrastructure and delivery of public domain improvements within the Town Centre.

· The draft documents were exhibited from 17 March 2025 to 18 April 2025 and 21 submissions were received, including two late submissions.

· Most submissions raise concerns or comments regarding the Hornsby Town Centre Masterplan or the Hornsby Transport Oriented Development Precinct rezoning which have already been finalised. Seven submissions raise concerns or queries regarding the exhibited documents. Matters raised in submissions are addressed in this report.

· Amendments have been made to the draft Public Domain Guidelines in accordance with Council's March resolution to include reference to Council's Healthy Ageing Hornsby Strategy, Disability Inclusion Action Plan and to reflect the specific dementia friendly design and maintenance considerations and references from the existing Public Domain Guidelines. Amendments to the draft Contributions Plan are recommended in response to submissions and a post exhibition review, along with a minor change to the draft Hornsby Development Control Plan 2024 amendment for clarity.

· It is recommended that Council endorse the Public Domain Guidelines, Hornsby Town Centre Development Contributions Plan and amendments to the Hornsby Development Control Plan 2025 attached to this report.

RECOMMENDATION

THAT:

2. Notification be published on Council’s website.

3. Submitters be advised of Council’s decision.

PURPOSE

The purpose of this report is to address matters raised in submissions received in response to the exhibition of draft documents which provide the framework for the design of development, funding of local infrastructure and delivery of public domain improvements within the Hornsby Town Centre.

BACKGROUND

At its meeting on 12 March 2025, Council considered Director's Report No. PC5/25, which presented the draft Hornsby Town Centre Public Domain Guidelines, draft Development Contributions Plan and draft amendments to the Hornsby Development Control Plan 2024. Council resolved that:

1. Council endorse the draft Hornsby Town Centre Public Domain Guidelines, draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 attached to Director's Report No. PC5/25 for public exhibition.

2. During exhibition period, the draft Hornsby Town Centre Public Domain Guidelines be updated to include reference to Council's Healthy Ageing Hornsby Strategy, Disability Inclusion Action Plan and to reflect the specific dementia friendly design and maintenance considerations and references from the existing Public Domain Guidelines.

3. Following exhibition, a report on submissions be presented to Council for consideration.

4. Council write to Transport for NSW and Department of Planning, Housing and Infrastructure to express concerns about the traffic generating changes to the proposed split bus interchange.

In accordance with Council's resolution, the draft documents were publicly exhibited from 17 March 2025 to 18 April 2025.

Furthermore, the draft Public Domain Guideline has been updated and the General Manager wrote to Transport for NSW and the Department of Planning, Housing and Infrastructure expressing concerns about the traffic generating changes to the proposed split bus interchange. A meeting with Transport for NSW is currently being scheduled in response. In addition, the Mayor has written to the Minister for Planning to request a meeting to discuss implementation of Council’s vision for the Town Centre. To date, a response has not been received.

DISCUSSION

This report addresses submissions received in response to the exhibition of the draft Hornsby Town Centre Public Domain Guidelines, draft Development Contributions Plan and draft DCP amendments and recommended amendments to those documents.

Public exhibition and responses

The draft documents were exhibited from 17 March 2025 to 18 April 2025 and included notification via print and online advertising, and notifications to the 496 community and agency submitters to Council’s Hornsby Town Centre Masterplan.

In response to the exhibition, 21 submissions were received including two late submissions, one being from Scentre Group (Westfield). Submissions were also received from GoGet, a carshare provider and Urban Taskforce, an advocate organisation representing property developers and equity financiers.

Of the submissions, 14 discuss the Hornsby Town Centre Masterplan and TOD rezonings, which have been finalised. Three submissions comment only on the exhibited documents and four submissions discuss both the exhibited materials and previously finalised plans. The issues raised in submissions are addressed below.

Hornsby Town Centre Masterplan and rezoning

The Hornsby Town Centre Masterplan was adopted by Council in November 2023, with Director’s Report No. PC23/23 detailing the extensive consultation with the community and responses. In November 2024, the NSW Government finalised the rezoning of the Town Centre, generally in line with the Masterplan.

Submissions which discuss the finalised plans raise the following issues:

· Future traffic congestion.

· Height and scale of buildings.

· Planning and supporting active transport.

· Parking for residents, visitors and commuters.

· Community facilities, such as schools, a performing arts centre and parks.

· Bushfire risk.

· Operational conflicts regarding the delivery of Jersey Street Park.

· Acquisition of Hornsby Square.

· Objection to the delivery of a new community space given renovation of existing library.

· Objection to floor to floor building heights.

· Objection to residential floorplate size limits.

· Objection to lot amalgamation requirements.

· Objection to proposed 4% development contribution levies.

Comment

The Hornsby Town Centre Masterplan has been adopted, with planning controls in place to facilitate the delivery of approximately 6,000 new homes and 3,000 new jobs in the Centre. Changes to planning controls within the Hornsby Local Environmental Plan 2013 (Hornsby LEP) were implemented by the State Government through its Transport Oriented Development (TOD) rezoning program. The planning controls include the scale and density of development, site amalgamation requirements, location and type of community facilities, parking requirements and provision of supporting infrastructure.

The matters raised in submissions were considered by the State Government in finalising the planning controls and are not within the scope of the currently exhibited documents which do not alter the intensity of development permitted under the rezonings, requirements for amalgamation or the provision of community facilities. The exhibited documents seek to support and complement the rezonings by outlining requirements for improvements to the public domain, payment of development contributions to deliver community infrastructure and draft DCP amendments to promote quality built form outcomes.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on the Hornsby Town Centre Masterplan and Hornsby TOD Precinct rezoning.

Delivery of community infrastructure at Westfield Hornsby

One submission on behalf of Scentre Group comments on the delivery of community infrastructure on the Westfield Hornsby site.

As part of the Hornsby TOD rezoning, the NSW Government amended the Hornsby LEP to require the delivery of specific community infrastructure within designated precincts in association with development. Specifically, approximately 3,000sqm is required to be provided for a community facility or library on the Westfield Hornsby site. Similar controls exist for other key sites, such as a 7,000sqm community centre and library within the Central Heart precinct.

The submission requests the facility not be required to be delivered as part of development on the Westfield site. Rather, it is suggested the facility cost be included in draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 schedule of works and maps.

The submission states that this would ensure a consistent and equitable approach across all key sites. It also suggests the change would allow a Planning Agreement to reduce monetary development contributions for a future development on the Westfield Hornsby site, if the development delivered a ‘community facility or library.’

Comment

Council’s Masterplan for the Town Centre identifies a 7,000sqm, multi-purpose community facility, proposed to be located within the Central Heart precinct.

The Hornsby LEP key site provision for a 3,000sqm community space on the Westfield site is an additional facility introduced by the State Government after the Hornsby TOD public exhibition. Other changes for the site include increasing permitted building heights to 53 stories along Burdett Street and a reduced non-residential floor space ratio from 2:1 to 1.3:1, meaning more space could be dedicated to housing.

As discussed in the Hornsby TOD finalisation report, landowners raised concerns the provision of the proposed open space and community facilities would adversely impact development feasibility. The report notes the State Government engaged in discussions with Scentre Group regarding increasing the development potential on the Westfield Hornsby site to secure delivery of community benefit, specifically open space. It also identifies 3,000sqm of community floorspace on the site as a post-exhibition change.

Accordingly, the delivery of open space and a community facility are appropriate community benefits identified to be delivered on the site in association with the substantial increase in residential development potential delivered under the rezoning. These requirements have been finalised under the rezoning process.

The draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 schedule of works identifies funds for the fit out of a future multi-purpose community facility. It does not identify funding for the acquisition or construction of the space itself, as that is required to be provided within a Central Heart development site, and the Westfield Hornsby site as required under the Hornsby LEP Key Site provisions.

Appendix B includes a map of infrastructure locations and identifies the fit out for a community facility/library only on the Central Heart site. It would be appropriate to amend the map to indicate that the funding for the fit applies to both the Central Heart site and the Westfield site. Accordingly, the map should show two locations for the expenditure of contributions for the fit out of a community space.

Recommendation

That Appendix B – Map of infrastructure locations in the draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 be updated to show item ‘C2’ (the item number for Regional multi-purpose/regional library) on the Westfield Hornsby site as well at the Central Heart site.

Development value capture

One submission recommends that Council capture part of land value uplift associated with future development to fund infrastructure.

Comment

In the broad terms, value capture involves a planning authority, such as councils, capturing for community benefit some of the land value increase accruing to a parcel of land from changes to planning controls which increase the development potential of the land and hence its value. However, this concept is not explicitly provided for under NSW planning legislation.

As part of the State Government’s rezoning of the Hornsby TOD Precinct, the maximum levy for development contributions under Section 7.12 of the Environmental Planning and Assessment Act 1979 was increased within the precinct. In recognition of the significant increase in development potential, the maximum levy for residential development within the precinct is 4%, which will be allocated to local infrastructure through the Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025.

In addition, incentive provisions within the Hornsby LEP, require the delivery of key infrastructure, including space for a new regional library and community facility, rail bridge crossing and open space.

Therefore, as an alternative to value capture, higher development contribution rates and incentive provisions incorporated into Council’s Local Environmental Plan will ensure new developments make substantial contributions towards the delivery of local infrastructure.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions recommending value capture for infrastructure provision.

Cost estimates for community space

One submission questions the community space which is proposed to be partly funded through the draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025. The submission comments that the amount included in the Plan would not be sufficient to deliver a performance centre.

Comment

The draft Development Contributions Plan works schedule includes delivery of a multi-purpose facility and regional library. This is consistent with the recommendations of Council’s Community and Cultural Facilities Strategic Plan. That plan includes design brief options for a 7,000sqm facility, of which up to 3,000sqm would be for library space and 4,000sqm of community, cultural, creative and possibly civic spaces.

Examples of what could be established within the multi-functional space include a 600sqm hall with flexible performance space facilities, which would accommodate about 350 seats. The Plan notes that a need had not been identified for a fixed performance space in Hornsby Shire, and that a large flexible space would be capable of accommodating performances as well as other large community gatherings.

The multi-purpose and regional library identified in the Community and Cultural Facilities Strategic Plan has been included in the Hornsby Town Centre Masterplan and the NSW Government’s Hornsby TOD rezoning. Under the TOD provisions, the space for this facility would be delivered by a future developer as part of incentive provisions under the Hornsby LEP.

The estimated cost for fit out of the space is approximately $14.1 million. This figure has been arrived at through a quantity surveyor report for Hornsby Town Centre infrastructure undertaken during the preparation of the Hornsby Town Centre Masterplan. It has since been validated by community infrastructure consultants engaged by Council and the NSW Government and reflected in the Infrastructure Delivery Plan (Hornsby IDP), prepared as part of the Hornsby TOD Precinct rezoning.

Contributions collected under the plan would make up about $2.7 million, or 19 per cent of the cost. This apportionment reflects the demand for the facility from new local residents. Council’s existing contributions plan covers the remaining cost.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on funding for community space and a performance centre.

Priorities for types of infrastructure

One submission suggests there should be less development contribution funding allocated to streetscape works such as street trees and more on community facilities.

Comment

The development of the Hornsby Town Centre Masterplan was supported by a Transport Plan, Landscape and Public Domain Report, as well as Council strategies such as the Community and Cultural Facilities Strategic Plan. The Masterplan and supporting studies summarise critical infrastructure needed to support the anticipated growth in residents and key workers associated with the Masterplan.

The draft Development Contributions Plan works program is based on the infrastructure identified through the development of the Hornsby Town Centre Masterplan, supported by costings prepared on behalf of Council and reviewed by the NSW Government. Although not all works are completely apportioned to the plan, the costs of works for the supporting infrastructure projects totals over $132M. This is summarised below by infrastructure type and percentage of the works schedule cost:

· Community Facilities: 13%

· Traffic and Transport: 25%

· Open Space and Recreation: 17%

· Drainage Works: 4%

· Streetscape: 41%

However, the above percentage breakdown of the works schedule costs does represent the full value of the infrastructure as it does not include costs for acquisition of open space by the State Government or costs of floor space provided by developers for community facilities, which Council does not have to fund. The total value of the community facilities infrastructure is higher than the fit out cost which Council needs to fund from the plan.

Overall, the draft Development Contributions Plan reflects the costs that Council needs to recoup to provide the infrastructure projects. It does not necessarily equate to the total value of that infrastructure or its priority.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on priorities for types of infrastructure.

Internal solar access requirements

The Urban Taskforce submission suggests the proposed requirement that 70 per cent of new dwellings achieve 2 hours of unobstructed sunlight between 9am and 3pm on 22 June (mid-winter) may reduce project yield and feasibility. It also suggests not all occupants demand the amenity, stating that ‘shift workers, students, hospitality workers, etc. do not require the high levels of sunlight the draft DCP controls require.’ The submission suggests consumers are capable of selecting homes that meet their own needs and budget, implicitly linking lower amenity to lower housing costs.

The submission suggests an average sunlight measure or other model may be more appropriate for the Hornsby Town Centre for a more flexible delivery of homes.

Comment

The referenced Hornsby DCP control is a continuation of the current 4.5.9 Sunlight and Ventilation control that applies to the town centre area. It is consistent with solar access controls within the NSW Government’s Apartment Design Guide. Further, the State Environmental Planning Policy (Housing) planning controls relating to affordable housing cite the standard as non-discretionary. As such, this is an accepted minimum standard for apartment delivery, including affordable housing.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on solar access requirements.

Photovoltaic solar access requirements

The Urban Taskforce submission suggests the proposed requirement that new development should maintain solar access to existing photovoltaic solar panels should not be a determining factor in future built form. The submission suggests that loss of energy production of a neighbouring building is not comparable to the contributions of height and density to productivity and is an unnecessary hurdle.

The submission recommends that instead, new solar panels be placed in consideration of applicable planning controls for surrounding land.

Comment

The referenced Hornsby DCP control is an adaptation of the current 4.5.9 Sunlight and Ventilation control that applies to the town centre area. The proposed control, in full, requires that ‘Development, including new planting, should maintain solar access to existing photovoltaic solar panels having regard to the performance of, efficiency, economic viability and reasonableness of their location.’

The proposed control provides several matters for consideration and reasonableness for preserving access to solar panels. Further, the TOD planning controls require development applications to consider the impacts of the built form on the solar amenity of existing and future residential buildings, with shadow diagrams to identify the impacts on the surrounding context. The proposed controls are a reasonable extension of those controls to identify matters for consideration. As with existing controls, an applicant’s analysis may demonstrate that impacts are reasonable, considering overall built form controls.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on the photovoltaic solar access requirements.

Bicycle parking requirements

The Urban Taskforce submission suggests that existing bicycle parking requirements within the Hornsby DCP should not apply to development in the Hornsby Town Centre, claiming that the increasing popularity of public bike-share and continued car dependency means bicycle car parking should not be mandated.

Comment

The proposed amendments to the Hornsby Town Centre DCP controls do not change existing bicycle parking requirements for new development. Exempting development in the Town Centre would be inconsistent with the overarching objectives of the Hornsby Town Centre Masterplan which advocate for active transport.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on bicycle parking requirements for new developments.

Car share space requirements

The GoGet submission suggests that more car share spaces should be provided in areas where less residential car parking is provided. The exhibited DCP controls for the Hornsby Town Centre, would require one car share space for every 90 residential car spaces.

Comment

The proposed change may have merit. However, an analysis of the effects of the change to planning controls is outside the scope of the Hornsby Town Centre project. The suggestion would more appropriately be considered as part of a broader analysis of sustainability planning controls.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on car share space requirements, but that any future review of sustainability planning controls consider the potential for revised car share space requirements.

Car share provider engagement

The GoGet submission recommends an amendment to Council requirements for the use of designated car share spaces. The submission suggests an agreement should be required at the time of occupation, and if an agreement has not been made, that evidence be provided that a car share provider has rejected the management of the space.

Comment

The exhibited DCP control requires the provision of car share spaces as part of new development in the Hornsby Town Centre. Should the spaces not be allocated to a provider, they would remain as visitor car parking until a provider is engaged. This allows certainty in the availability of the spaces, where such commercial arrangements are beneficial. It also encourages competition within the car share industry so that their product is desirable. Given the complexity of building design and management, this is a reasonable balance between the promotion of the service and market conditions.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on car share provider engagement.

Allow residential car parking replacement by car share

The GoGet submission recommends an amendment to proposed Hornsby Town Centre DCP controls to allow residential car parking to be replaced by car share parking in development comprising 25 or more dwellings, rather than the exhibited threshold of 50 dwellings.

Comment

The control has been carried forward from the existing Hornsby DCP relating to the town centre. However, as the TOD rezoning has introduced car parking maximums, the control is of no effect in the Hornsby Town Centre.

The control may be beneficial in other areas within the Shire where a reduction in private vehicle use may be sought. That analysis is outside the scope of the Hornsby Town Centre project and could potentially be considered as part of a broader analysis of sustainability planning controls.

Recommendation

That the Hornsby Town Centre DCP controls regarding the replacement of residential car parking with car share be deleted and that any future review of sustainability planning controls consider the potential for certain areas to have residential car parking replaced with car share.

EV readiness for car share

The GoGet submission recommends a new planning control that requires car share spaces to be prioritised for electric vehicle infrastructure.

Comment

The current Hornsby DCP control 1.3.2.1 Transport and Parking includes requirements for electric vehicle charging. All car share spaces should have access to an on-premises shared EV connection. As such, the objective is already achieved by the existing DCP control.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on car share EV readiness.

Designing for shared and micromobility

The GoGet submission suggests new development include and co-locate car share and other shared mobility options, such as ebikes and scooters, with EV charging and active transport infrastructure. It cites such integration as a way to improve active and alternative transport around transport hubs, with ongoing trials with TfNSW.

Comment

Promotion of active transport is an objective of the Hornsby Town Centre Masterplan and TOD rezoning. This could potentially be achieved, in part, by an increase in bike share and transport methods that reduce the need for private vehicle trips. However, the integration with Hornsby Station and surrounds is likely to be complex, particularly given the extensive infrastructure required in the area. The delivery of active transport and shared/micromobility would be more appropriately considered during design and development of lands adjacent to the station.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on shared and micromobility.

Development conditions

The GoGet submission suggests the inclusion of specific conditions of consent regarding car share.

Comment

Conditions of consent are not being reviewed as part of this project and are outside the scope of the exhibited documents.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions suggesting conditions of consent for carshare developments.

Plane Trees not be used for street tree planting

One submission requests that Plane Trees not be used for street tree planting and that native trees be planted, citing allergy concerns.

Comment

The draft Hornsby Town Centre Public Domain Guidelines identify that Plane Trees (Zelkova and Platanus species) have already been planted in the Florence Street Mall and Peats Ferry Road areas. However, the draft Guidelines recommend native species be planted in future that reflect the local natural biodiversity of the bushland setting of the Hornsby Town Centre.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions requesting that Plane Trees not be used for street tree planting.

Technical nature of documents

One submission raises concern the documents are too technical and should be simplified for the community.

Comment

The draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 are, by their nature, technical documents, as they must clearly articulate the responsibilities of proponents of development in the Hornsby Town Centre and comply with relevant planning legislation and best practice.

The draft Hornsby Town Centre Public Domain Guidelines are more community focused, with descriptions of objectives and imagery of plans and intended outcomes to support readers. Further, the vision behind the technical documents is articulated in Council’s Hornsby Town Centre Masterplan.

Recommendation

That no changes be made to the exhibited draft documents in response to submissions commenting on the technical nature of the documents.

CONSULTATION

In accordance with the consultation strategy outlined in Director’s Report No. PC5/25, the draft Hornsby Town Centre Public Domain Guidelines, draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 were exhibited between 17 March 2025 and 18 April 2025.

The draft documents were exhibited via the following channels:

· Council’s Your Say Hornsby website.

· Notifications to submitters to the Hornsby Town Centre Masterplan.

· Hornsby eNews; and

· Advertisements in local publications.

A total of 21 submissions were received and are addressed in this report.

BUDGET

There are no budgetary implications associated with this report. Costs associated with the preparation of the draft Hornsby Town Centre Public Domain Guidelines, draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 and public exhibition are covered by the Strategic Land Use Planning operational budget.

POLICY

Subject to Council endorsement, Hornsby DCP amendments would come into force once published on Council’s website. The amendments would apply to development applications received after that publication.

Subject to Council endorsement, the draft Section 7.12 Development Contributions Plan 2025 would amend the Hornsby 7.11 Development Contributions Plan 2020-2030 and Hornsby 7.12 Development Contributions Plan 2019-2029 to exclude their application to the Hornsby Town Centre. Development applications not yet determined would be subject to the development contribution rate outlined in the finalised contribution plan.

CONCLUSION

The draft Hornsby Town Centre Public Domain Guidelines, draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 were exhibited between 17 March 2025 and 18 April 2025. The documents provide the framework for the design of development, funding of local infrastructure and delivery of public domain improvements within the Hornsby Town Centre.

Of the submissions 21 submissions received, 14 solely discuss the Hornsby Town Centre Masterplan and TOD rezonings, which have been finalised. Three submissions only relate to the exhibited materials and four submissions discuss both the exhibited materials and previously finalised plans. Two amendments are recommended in response to submissions.

Amendments have been made to the Hornsby Town Centre Public Domain Guidelines, as per Council’s 12 March 2025 resolution and post-exhibition changes are recommended to the draft Hornsby DCP 2024 and draft Development Contributions Plan. It is recommended that Council endorse the draft Hornsby Town Centre Public Domain Guidelines, draft Hornsby Town Centre Precinct Section 7.12 Development Contributions Plan 2025 and draft amendments to Hornsby Development Control Plan 2024 as attached to this report.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Manager, Strategic Land Use Planning – Katherine Vickery – who can be contacted on 9847 6744.

Katherine Vickery

Manager - Strategic Landuse Planning

Planning and Compliance Division

James Farrington

Director - Planning and Compliance

Planning and Compliance Division

Attachments:

1.	Draft Hornsby Town Centre Public Domain Guidelines - Post Exhibition
2.	Draft HTC 7.12 Contributions Plan - Post Exhibition
3.	Draft HDCP 2024 Part 1 - Hornsby Town Centre - Post Exhibition
4.	Draft HDCP 2024 Part 4 - Hornsby Town Centre - Post Exhibition

File Reference: F2018/00321-004

Document Number: D09112751

1.	HSC Investments Summary Report March 2025
2.	HSC Borrowings Summary Report March 2025

RECOMMENDATION

RECOMMENDATION

RECOMMENDATION

EXECUTIVE SUMMARY

RECOMMENDATION

PURPOSE

BACKGROUND

DISCUSSION

BUDGET

CONCLUSION

RESPONSIBLE OFFICER

EXECUTIVE SUMMARY

RECOMMENDATION

PURPOSE

BACKGROUND

DISCUSSION

BUDGET

POLICY

CONCLUSION

RESPONSIBLE OFFICER

EXECUTIVE SUMMARY

RECOMMENDATION

PURPOSE

BACKGROUND

DISCUSSION

BUDGET

POLICY

CONCLUSION

RESPONSIBLE OFFICER

EXECUTIVE SUMMARY

RECOMMENDATION

PURPOSE

BACKGROUND

DISCUSSION

Public exhibition and responses

Hornsby Town Centre Masterplan and rezoning

Delivery of community infrastructure at Westfield Hornsby

Development value capture

Cost estimates for community space

Priorities for types of infrastructure

Internal solar access requirements

Photovoltaic solar access requirements

Plane Trees not be used for street tree planting

Technical nature of documents

Other post exhibition amendments

CONSULTATION

BUDGET

POLICY

CONCLUSION

RESPONSIBLE OFFICER