governance · Woollahra Municipal Council
Woollahra backs $10m reserve and borrowing policy changes after four submissions
The committee recommended new Financial Sustainability and Borrowing policies, the closure of 18 internal reserves and tighter controls on a new $10 million working-capital reserve.
Woollahra ratepayers are facing changes to how the council manages borrowing and internal funds, after the Strategic & Corporate Committee recommended new Financial Sustainability and Borrowing policies and a $10 million General Working Capital Reserve.
The committee’s recommendations followed four submissions during the public exhibition from 14 August to 13 September 2026. The policy recommendation passed 10-0, but Woollahra Municipal Council must still consider formal adoption.
The committee also recommended closing 18 named internal reserves from 31 October 2026 and transferring any remaining balances to Council’s unrestricted cash. The reserves cover areas including capital projects, employee leave entitlements, information technology, insurance, property and open space projects.
The proposed General Working Capital Reserve would hold $10 million. Its funds could be used only for expenditure authorised through Council’s adopted budget, a Quarterly Budget Review or a separate Council resolution.
The committee recommended a revised Restricted Funds Policy and authorised the Chief Financial Officer to make the accounting adjustments required to implement the changes if Council approves them. The supplied material does not include individual balances for the 18 reserves.
No rates, fees, levies or service charges were adopted at the committee meeting. The reserve closures have a proposed effective date of 31 October 2026, subject to Council adoption.
The policies and reserve changes would establish the framework for Woollahra’s long-term financial management, borrowing decisions and control of internal cash.
Reference minutes
This report is based on Woollahra Municipal Council’s Strategic & Corporate Committee meeting of 6 October 2026.
Key facts from the minutes
- Four submissions were received during the public exhibition of the draft Financial Sustainability Policy and Borrowing Policy from 14 August to 13 September 2026.
- The Strategic & Corporate Committee recommended adoption of both policies in a 10-0 vote.
- Eighteen named internal reserves are recommended for closure from 31 October 2026.
- Remaining balances from those reserves would be transferred to Council’s unrestricted cash.
- A $10 million General Working Capital Reserve is recommended, with use restricted to adopted budgets, Quarterly Budget Reviews or a separate Council resolution.
- The recommendations still require consideration by Woollahra Municipal Council.
Why it matters
- The recommendations would change how Woollahra plans borrowing and controls internal funds, including a new $10 million reserve restricted to authorised expenditure.