Financial forecast

This page summarises Eurobodalla Shire Council's current financial challenges and service delivery plans now and into the future.

  • Page last updated: May 2024

Latest news: May 2024

Our draft work plan and budget for 2024-25 is on exhibition until Tuesday 28 May 2024. You can read the draft and tell us what you like and what you don't before it gets formalised by Council.

Many councils around NSW are in financial trouble, with 17 applying for a special rate variation in 2023.

Eurobodalla Council did not apply for a special variation in 2023, but - like many councils across the state - we are facing a serious, ongoing operating deficit in our general fund. The general fund delivers the majority of Council's services to the community, apart from water, sewer and waste. For some years, Council’s general fund has cost more on day-to-day basis than the revenue it collects.

Since the start of 2023, staff and councillors have managed to reduce the general fund operating deficit from $14M to $11M. This was achieved by reprioritising and staging our work plan and by using grant funds to support already programmed works and services.

A Finance Strategy with 12 actions has been developed to define a path to financial sustainability, adopted by Council in December 2023.

Information sessions

In April 2024, we hosted three community information sessions at Eurobodalla libraries to explain the Finance Strategy and Council's actions to date. At these sessions, our general manager and finance director share information about our current financial challenges, and changes and savings we have identified so far.

In May 2024, while our draft operational plan is on public exhibition, we are hosting three more community information sessions. At these sessions, our general manager and finance director will give an update on our financial situation, with a focus on the draft 2024-25 budget and works program.

What has happened so far

Council's General Manager Warwick Winn sought a financial health check in his first weeks on the job in late 2022. This identified large future deficits, current debt, and a work program that is too large to manage.

We are a medium-sized council trying to do the work of a large council, and that is not sustainable. Instead, councillors and senior staff understand that responsible and decisive actions are needed now to try and avoid special rate rises or service reductions in the future.

  • Councillors and senior staff reviewed the financial situation to identify a path forward for the shire at a strategic workshop in March 2023. Councillors continue to be briefed regularly on financial matters.
  • So far, we have managed to reduce 2023-24 financial year’s general fund operating deficit from $14M to $11M by reprioritising and staging our work plan and by using grant funds to support already programmed works and services. In the years ahead, we will propose reducing our capital works program to focus on maintaining and renewing existing assets like roads, public toilets, and recreation facilities.
  • We have prepared a finance strategy that will see us achieve long term financial sustainability by living within our means, with 12 key actions. The strategy was adopted by Council in December 2023.
  • We hosted three presentations for community members to hear from General Manager Warwick Winn and Director of Finance Stephanie Speedy about Council's current and future financial challenges while the draft 2023-24 operational plan was on public exhibition.
  • In May 2024, we are hosting three more community information sessions at the libraries while our 2024-25 draft operational plan is on exhibition.

Our approach to grant funding

We are grateful for the NSW Government grants that have allowed us to build new infrastructure for the community - especially after fires and floods - but the time has come to look carefully at our approach to seeking grants.

  • Going forward, we will be more strategic about the grants we pursue.
  • Grants should pay for work already in our plans, not add more work on top.
  • This is how we will use funds to cover projected expenses, and hopefully avoid service reductions or having to pursue special rate variations in the future.
  • A grants strategy has been developed and will be presented to Council in April 2024.

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