Bathurst Regional Council Unrestricted Cash Position

Council has flagged in its statement of investment, in the March business paper, reports of the difficult cash position that has been created by slow-moving land sales from its Windradyne subdivision, The Reserve. At the end of February, Council’s unrestricted cash position had decreased by $7.3million, while restricted cash had increased by $10.6million.  

Council has notified the Office of Local Government (OLG) and continues to meet with OLG on a regular basis. These meetings were initiated following the end of the consultation process on a Special Rate Variation in 2024. Council will report further on the additional strategies it will implement to return the unrestricted cash position back to a positive result.  

Council has been working on a pathway to sustainability that has been documented through numerous reports to Council that identify savings and efficiencies that have already been undertaken, including:  

Land Sales: 

• 7 lots sold in The Reserve, a further 20 lots under negotiation 

• Industrial land sales of $2.5million expected to settle once the registration of the subdivision plan is finalised.  

Other identified savings to date: 

• Delayed recruitment of non-critical roles 

• Reduction in events 

• Cost-recovery merchant fees and multiple other efficiencies/savings identified in Pathway to Sustainability reports to Council. 

Mayor Cr Robert Taylor said while the finances are not as desired, reduced spending and forthcoming income will ensure Council rectifies the position in a timely manner. 

“Council has made tough decisions in light of the cost pressures and present financial position, and while this may not be popular it is the financially responsible path to follow. We are in regular discussions with the Office of Local Government to determine future actions across our finance and asset management. 

“We have reduced the number of events across the LGA and are delaying recruitment for less critical roles across Council’s operational team. I want to emphasise however that we will not be in this position for a sustained period. At present, 20 lots at The Reserve are under negotiation that, when settled, will bring a $6million cash injection to Council,” Mayor Taylor noted. 

The Mayor additionally affirmed that there is no cause for concern for Council’s reimbursement of staff. However, that due to this current cash position, discussions for a Special Rate Variation may be reinitiated. 

“Council continues to function as normal, roles are in no way affected, and bills continue to be paid on time. 

“Council will consider a range of initiatives and strategies to return the unrestricted cash position back to a positive result. One of these may include an SRV, which has been recommended by the General Manager since 2013. Whilst no decisions have been made, this is something that Council will be discussing in the near future as an approach to stabilise finances and prevent further events and operational activities from being impacted across the community,” said Mayor Taylor.  

This position follows volatility in Council’s cash flow as a result of cost-shifting and revenue increases as a broader issue of sustainability within local government. 

Media contact: Genevieve Green Media and Communications Officer  

P: 02 6333 6179 M: 0448 685 340 E: genevieve.green@bathurst.nsw.gov.au