Council has proposed a capital works program of $34.6 million in the draft Operational Plan, with $23 million to come from internal resources and the remaining $11.6 million to be funded through capital grants and contributions.
It contributes to the total budgeted expenditure of $68.8 million for the coming year.
But with council only estimating an operating revenue of $64.8 million, this will mean an operating deficit of $3.93 million.
Council is proposing a 5.3 per cent increase in general rate revenue, in line with the rate cap set by the Independent Pricing and Regulatory Tribunal of NSW.
Access and usage charges for water and sewer will also only see increases in line with a six per cent rate cap this year, due to full-cost recovery now being in place.
Council’s rates, charges and fees only make up around half of council’s total revenue to cover expenses.
Mayor John Harvie acknowledged ongoing financial pressures facing local government, including constrained revenue growth and declining federal support.
He said it’s one of the reasons councils lobbied both sides of government at the Federal Election to commit to increasing Financial Assistance Grants from 0.5 per cent to one per cent.
“At a time of continued high inflation and revenue-raising limitations, the impact of the reduction in the Commonwealth’s Financial Assistance Grant really comes into focus,” he said.
“On top of this, councils continue to face cost shifting from other levels of government.
“It’s unsustainable, and we’ll be continuing our advocacy in this space.”
Cr Harvie said despite the challenges, the budget was “well balanced” to cover all necessary areas.
“It’s a carefully considered budget that keeps us on the right path for this year,” he said.
“Asset maintenance and renewal, particularly on our transport network, account for the majority of the projected spend.
“We are confident this budget strikes a balance between focusing on our assets, fulfilling general levels of service and continuing delivery of some community projects.”
Major areas of capital spend in the budget include:
• Regional road renewals - $3.7 million.
• Moama water treatment plant upgrades - $2.5 million.
• Unsealed road resheeting - $1.3 million.
• Moama sewer treatment plant upgrades - $1.3 million.
• Barham sewer treatment plant upgrades - $1.1 million.
• Other asset replacements - $4 million.
The draft Operation Plan is now on public exhibition, and open for public comment until June 11 at yoursay.murrayriver.nsw.gov.au.
Once submissions have been considered, a report will be put to the June council meeting.
For any residents struggling to pay rates, council has a Rates and Hardship Policy. Talk to the council for more details.
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