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With 15 natural disasters declared in the Shoalhaven during the last five years, we have been more impacted by unforeseen events than most.
While each natural disaster disrupts normal business operations including asset maintenance work, each event costs more than $600,000 in unbudgeted works. Which is why we need to have money in the bank for a ‘rainy day’ and other unforeseen events. Access to Disaster Recovery Funding (DRF) requires the payment of an ‘opt-in fee’ which is not recoverable. This fee is equal to 0.75% of rateable income per disaster and is capped at 2% per annum if 3 or more disasters are declared. In 2023-24, Council had 3 disaster declarations, capping our opt in fees at 2% of rateable income, so it cost us $1.7m that we couldn’t be reimbursed for. This is a significant portion of the 3.7% base rate peg that was in place that year.
While the DRF provides significant funding towards the repair of essential public assets (roads, bridges, flood levies etc) it does not cover damage incurred to sporting, recreation, community facilities, beaches, cemeteries and roads on crown land. If these assets are damaged, repairs are funded through Council’s own general funds, including insurance policies. The increase in natural disasters has seen our insurance premiums increase over the past 5 years, and the increase in disaster events has also led to an increase in claims (including excess paid by council).
With 15 natural disasters declared in the Shoalhaven during the last five years, we have been more impacted by unforeseen events than most.
While each natural disaster disrupts normal business operations including asset maintenance work, each event costs more than $600,000 in unbudgeted works. Which is why we need to have money in the bank for a ‘rainy day’ and other unforeseen events. Access to Disaster Recovery Funding (DRF) requires the payment of an ‘opt-in fee’ which is not recoverable. This fee is equal to 0.75% of rateable income per disaster and is capped at 2% per annum if 3 or more disasters are declared. In 2023-24, Council had 3 disaster declarations, capping our opt in fees at 2% of rateable income, so it cost us $1.7m that we couldn’t be reimbursed for. This is a significant portion of the 3.7% base rate peg that was in place that year.
While the DRF provides significant funding towards the repair of essential public assets (roads, bridges, flood levies etc) it does not cover damage incurred to sporting, recreation, community facilities, beaches, cemeteries and roads on crown land. If these assets are damaged, repairs are funded through Council’s own general funds, including insurance policies. The increase in natural disasters has seen our insurance premiums increase over the past 5 years, and the increase in disaster events has also led to an increase in claims (including excess paid by council).
