The budget puts council’s operational deficit at $9,419,954, just achieving its goal of running at under $10 million.
Director of corporate services Stephen Fernando said he believed this budget would fit council’s operational deficit goal.
“One of the things that jumps out is that we are running at a deficit,” he said.
“This is a known fact that we have discussed with the community.
“Council has resolved ... that we can’t have a budget deficit of more than $10 million this year as part of a process of producing and getting back to a break-even position.
“That was achieved with this budget.”
Council is still planning the path forward to get out of a deficit in the next 10 years, and said residents should not be concerned that this budget did not reflect its long-term financial plan.
“It’s always tricky, but we are confident that this budget strikes a balance between fulfilling agreed levels of service, continuing delivery of some community projects and working towards our financial sustainability in the longer term,” Mayor Frank Crawley said.
In numbers, the budget forecasts a further deficit in the next 14 years, but Mr Fernando said this was an interim plan as council devised its course of action.
“Council also resolved to try and eliminate the deficit for a period of 10 years, getting into break-even point over 10 years,” he said.
“The long-term plan that is part of the budget does not reflect that position, simply because we are in the process of doing that work to figure out what has to be done to get to that position.
“That could involve significant changes in the way we do things, the services we provide the community and the level of service we provide the community.
“Because we don’t have that information, that aspect is not reflected in the long-term financial plan.
“It actually shows it getting slightly worse over 10 years, and that’s because of inflation and things.
“So that long-term plan is sort of a ‘business-as-usual’ plan, not a revised action plan to break even.”
The biggest short-term changes residents will notice are increases in rates and fees.
For the 2024/25 financial year, general rates will see a 4.7 per cent hike, in line with the guidelines set by the Independent Pricing and Regulatory Tribunal.
This means the base rate per property is $315, an increase from $300 in 2023/24. The total rates yield is more than $13 million, an additional $500,000 from 2023/24.
There is a $32.8 million capital works program, with $20.5 million funded by council and around $12.3 million from capital grants and contributions.
“We are having a capital program of about $30 million,” Mr Fernando said.
“That includes significant flood damage repair work that is being funded by a combination of state and federal funding.
“We have until June 2025 to finish that work, and we are quite ahead of it.
“The resealing program and re-sheeting programs ... they’re programs that continue year-round, year-on-year.
“Every year, there will be a capital allocation to do that, it’s keeping our roads up to standard.”
A significant portion of council revenue is invested into the maintenance of roads, especially as the council area is large, with a relatively small population.
“One of the core issues that impact financial sustainability in councils like ours is the density of population,” Mr Fernando said.
“(We have) a smaller number of properties, and a smaller number of rate payers have to sustain the cost of a much larger area.
“City councils, like in Sydney or Melbourne, have to maintain about 700m of road per property. In comparison, we have about 7km per property.
“About 60 per cent of our rate income is spent on road maintenance.
“That’s really what impacts (rates).”
Council welcomes public feedback on its draft budget documents until June 11.
“I’d encourage the community to take a look through the draft documents to get a better understating of charges and expenses for the coming year,” Cr Crawley said.
“The community is also reminded that council has a Rates and Hardship Policy, which applies to payments of all charges applied by council.”
Budget documents can be accessed at yoursay.murrayriver.nsw.gov.au
