Financial Reserves Policy

Now on Public Exhibition

Wollondilly Council’s financial reserves are important funding sources that help us deliver capital projects and essential services for our growing community.

Currently, Council manages reserves through Council resolutions as part of the annual budget process. Introducing a formal Financial Reserves Policy will strengthen Council’s financial management and provide greater transparency for the community.

The proposed policy establishes a clear framework for how reserves are created, managed and used, helping to ensure funds are applied appropriately and for their intended purpose. It also streamlines the list of reserves by merging those with similar purposes.

We are currently inviting feedback from the community about the draft policy.


Types of Reserves

Council’s reserves fall into two main categories:

Externally Restricted Reserves are funds that must be used for a specific purpose, following rules from outside of Council such as state legislation or other external requirements. Examples include Developer Contributions and Domestic Waste funds.

Internally Restricted Reserves are funds that Council has set aside for specific future needs. Examples include plant replacement, Information Technology, and infrastructure projects.


Current Reporting

Although a formal policy has not previously been in place, Council already reports on its reserves regularly, including:

Quarterly Budget Reviews – which provide Council with updates on the forecast reserves position.

Annual Audited Financial Statements – which include the final reserves position at the end of each financial year and are subject to independent audit.


Benefits of the Policy

The proposed policy will:

  • Outline the process for creation and alterations of reserves
  • Provide guidance on the allocation of funds to and from reserves
  • Set out the accounting requirements for reserves
  • Clearly define the purpose of each reserve
  • Establish a target level of $1.5 million for Unrestricted Funds

Overall, the policy will help ensure Council’s reserves are managed responsibly, transparently, and in alignment with their intended purpose, supporting sound financial management and long-term planning for the community.


View the Draft Policy

  • Under the key documents tab (scroll down below the feedback form if viewing on a phone)
  • Council’s Customer Service Centre, 62-64 Menangle Street, Picton
  • Wollondilly Library, 42 Menangle Street, Picton and via the Mobile Library, which visits 14 towns and villages across the Shire
  • Via the Dilly Wanderer outreach service, visiting 15 towns and villages across the Shire.


Give Feedback

  • Online: Complete the feedback form below
  • Email: council@wollondilly.nsw.gov.au quoting reference CM 16571
  • Hand delivery: Wollondilly Shire Council, 62-64 Menangle Street, Picton
  • Post: Wollondilly Shire Council, PO Box 21, Picton NSW 2571


More Information

We are accepting feedback until 5:00pm on Tuesday 5 May 2026.

For more information please contact Council’s Management Accounting Team on 4677 1100.

Now on Public Exhibition

Wollondilly Council’s financial reserves are important funding sources that help us deliver capital projects and essential services for our growing community.

Currently, Council manages reserves through Council resolutions as part of the annual budget process. Introducing a formal Financial Reserves Policy will strengthen Council’s financial management and provide greater transparency for the community.

The proposed policy establishes a clear framework for how reserves are created, managed and used, helping to ensure funds are applied appropriately and for their intended purpose. It also streamlines the list of reserves by merging those with similar purposes.

We are currently inviting feedback from the community about the draft policy.


Types of Reserves

Council’s reserves fall into two main categories:

Externally Restricted Reserves are funds that must be used for a specific purpose, following rules from outside of Council such as state legislation or other external requirements. Examples include Developer Contributions and Domestic Waste funds.

Internally Restricted Reserves are funds that Council has set aside for specific future needs. Examples include plant replacement, Information Technology, and infrastructure projects.


Current Reporting

Although a formal policy has not previously been in place, Council already reports on its reserves regularly, including:

Quarterly Budget Reviews – which provide Council with updates on the forecast reserves position.

Annual Audited Financial Statements – which include the final reserves position at the end of each financial year and are subject to independent audit.


Benefits of the Policy

The proposed policy will:

  • Outline the process for creation and alterations of reserves
  • Provide guidance on the allocation of funds to and from reserves
  • Set out the accounting requirements for reserves
  • Clearly define the purpose of each reserve
  • Establish a target level of $1.5 million for Unrestricted Funds

Overall, the policy will help ensure Council’s reserves are managed responsibly, transparently, and in alignment with their intended purpose, supporting sound financial management and long-term planning for the community.


View the Draft Policy

  • Under the key documents tab (scroll down below the feedback form if viewing on a phone)
  • Council’s Customer Service Centre, 62-64 Menangle Street, Picton
  • Wollondilly Library, 42 Menangle Street, Picton and via the Mobile Library, which visits 14 towns and villages across the Shire
  • Via the Dilly Wanderer outreach service, visiting 15 towns and villages across the Shire.


Give Feedback

  • Online: Complete the feedback form below
  • Email: council@wollondilly.nsw.gov.au quoting reference CM 16571
  • Hand delivery: Wollondilly Shire Council, 62-64 Menangle Street, Picton
  • Post: Wollondilly Shire Council, PO Box 21, Picton NSW 2571


More Information

We are accepting feedback until 5:00pm on Tuesday 5 May 2026.

For more information please contact Council’s Management Accounting Team on 4677 1100.