Council says the windfall is the result of a reduction in workers compensation insurance costs; savings in general insurances and reductions in senior management positions which won’t be replaced.
The Administrator of the new Council, Dick Persson, described the savings as a “huge win for the Northern Beaches community and demonstrates the benefit of merging Council’s resources”.
Mr Persson said merger savings will now be deposited in a special Northern Beaches Merger Savings Fund which will be used for community projects.
“The Fund will provide ongoing funding for these types of projects and this is great legacy for future generations on the Northern Beaches”, Mr Persson explained.
“This approach will ensure a significant dividend is delivered to the community every year from the efficiencies achieved from the merging of the three councils.”
The Fund won’t be used to reduce spending in other operational areas of Council.
Council says further savings stemming from the merger are expected over the next year.
“While it is too early to put a number on further annual savings from the merger, there is no doubt it is likely they will be substantial,” Mr Persson added.
