Financial Sustainability Strategy: Beyond 2026 Proposal

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Bathurst Regional Council has reached a critical point at which its General Fund financial position is not sustainable and further decisions to ensure ongoing financial viability are necessary. 

The current financial outcome has been foreshadowed in previous budget discussions over many years. Council has responded in a range of ways by reducing services and reducing (or reviewing) the number of Council employees, whilst still delivering to the community the core services and functions that are necessary and desirable. 

Despite these sustained efforts, Council cannot deliver sufficient ongoing savings to offset the impact of rising costs and cumulative cost shifting from other levels of Government. 

As a result, Council will develop the Financial Sustainability Strategy:  Beyond 2026 proposal in a bid to determine what options it has to improve its General Fund financial position. 

At the Council meeting on 18 February 2025 Council voted to allocate $300,000 for the purpose of engaging external consultants to: 

  • undertake the options analysis and provide additional technical input for the Financial Sustainability Strategy: Beyond 2026 proposal,  
  • evaluate an SRV to be included as one of the options, and  
  • conduct community engagement on all options derived from the options analysis.  

As well as requiring that:  

  • prior to the release of any procurement documentation, the prescribed scope of works for the proposed consultancy(s) be provided to Councillors,  
  • monthly public reporting to Council commence on the progress of the consultancy engagements, including expenditures to date against the approved allocation,  
  • the final consultation briefs and any requests for tender documentation be provided to Councillors at the date of issue and  
  • receive and consider a further report on Council’s Financial Sustainability Strategy: Beyond 2026 proposal. 

To read the full report presented to the Council meeting click here

Frequently Asked Questions

 

Why is Council undertaking this work?

Council exists to provide essential infrastructure and services that support the wellbeing, safety and prosperity of the community. Ensuring financial sustainability is fundamental to maintaining these services and avoiding service decline, infrastructure failure, or external intervention.

Due to multiple contributing factors, many beyond Council's direct control, BRC's current and projected financial position is not sustainable. Council must take a responsible, transparent and balanced approach, including continuing to improve efficiency, reviewing and revising services and service levels, prioritising critical infrastructure and ensuring revenue levels are sufficient to support long-term sustainability.

What happens next (after the February 2026 Council meeting)?

Council staff are developing a brief for the selection of a consultant/s to undertake the financial sustainability work outlined in the report. Once the brief is approved, Council will go to the market and seek applications.

What is an SRV?

Council can apply to the Independent Pricing and Regulatory Tribunal (IPART) - the independent body that sets Council rate increases each year, which is referred to as the rate peg - to increase its rates by more than the rate peg. This extra increase is a special rate variation (SRV). The SRV does not apply to water, sewerage or waste charges on rates notices.

Is Council proposing to request an SRV?

At this stage Council is seeking to evaluate all reasonable options to secure the long-term financial sustainability of the Council. It is not endorsing any single outcome or proposing any singular direction.  Council's financial sustainability strategy is a bid to determine what options Council has to improve its General Fund financial position.   It is likely that an SRV may be one of the options available to Council.  

Given the community experience in 2023 it is reasonable to make the community aware that this is a consideration that is likely to form part of the discussion around sustainability moving forward.

 

What is financial sustainability?

Council exists for the public good, to act in the long-term interests of the community and to be able to deliver services and facilities into the future.  Financial sustainability is not an end in itself, in the same way that profitability is for a private company. 

It is the ability to protect and deliver the services, infrastructure and local decision-making that the community relies upon now and into the future.

The Auditor General's audit report for 2025 contains the following definitions:

Financial sustainability is the ability to meet current and future financial obligations without reducing essential services or borrowing money to fund successive operational deficits.

What is cost shifting?

Cost shifting, whereby other levels of government force councils to take on additional key responsibilities without providing supplementary funding. Local Government NSW estimates that the impact from the last decade of cost shifting now costs NSW ratepayers an average of $497.40 in additional rates costs per ratepayer per year.

 


How can I keep up to date with what's happening?

Keep an eye on Council's Facebook page where we provide updates after each monthly Council meeting, check out the business papers in the lead up to Council meetings and visit this page which will be updated as the project progresses and sign up to Council's monthly e-newsletter. 

 

   

 

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