Council draft budget, delivery program on public exhibition

Narrabri Shire Council is anticipating a $3.6 million budget deficit in the 2025/25 financial year followed by subsequent deficits while its unrestricted cash reserves will increase.

Next year’s budget deficit includes almost $17 million in depreciation – a non-cash expense – with actual cash flow expected to look better than what is projected in the budget statements.

Council has released draft financial and operational plans as well as its delivery program for public exhibition after being tabled at last week’s ordinary meeting.

As part of the set of documents, council anticipates its investments will total $56 million in 2025/26 before slightly decreasing to $52 million in subsequent years.

Cash and cash equivalents is expected to be $6.4 million in 2025/26 before increasing to almost $9 million in 2026/27 then almost $14 million in 2027/28.

These estimates have been based on a business-as-usual scenario. Additional scenarios were compiled.

General manager Eloise Chaplain said council is forecasting deficient budgets into the future in its long-term financial plans.

Mrs Chaplain described the deficient budgets as unsustainable and said more work was needed in this area.

“However, as we’ve noted in previous council meetings, we have a really large asset base, which is excellent. The value of our asset base is very high, but that also means we have a large depreciation figure, and that depreciation figure, I think it’s 17 million even just for this year,” she said.

“Just for depreciation … it isn’t a real cash movement. So when it comes to our cash flows, it does look better than what that deficient budget says.

“However, we have to report how those financial statements are in that report. We have to report that. And noting that it’s still not sustainable to have those years and years of deficient budgets. However, I will note we’re doing a lot of work over the next 12 months to improve that.

“We’re going to be talking with council and the community about a financial strategy so we can be sustainable into the future.”

Mrs Chaplain urged people to pay attention to the amount of unrestricted cash which is expected to increase.

“That’s the cash we have in the bank that’s not restricted at all that we can use to pay for whatever it is. So we do have cash there, and it is increasing,” she told the meeting.

Cr Greg Lamont said there was a lot of information in council’s draft plans, however, stressed the importance of the community reviewing the information and having its say.

“There’s a lot of information there, but it’s really critical information that we’ve gleaned from the community, and the staff have done a wonderful job in putting this together to present it in the statutory format, which is what we’ve got to deal with, and unfortunately, it’s that big,” he said.

“I could only recommend that the community members take note and have a good look at it, and then make submissions and come back to council for us to consider before we adopt it.”

In terms of capital expenditure, council has allocated $1 million towards the Boggabri Civic Precinct and $1.5 million towards the Wee Waa Community and Business Hub.

Council will also spend almost $5.4 million on shire roads as well as $4 million on the Violet Street bridge replacement.

Almost $1 million will be spent on water main renewals.

Capital expenditure is expected to total $23 million for the financial year.

The draft plans and strategies are available to view in full on council’s website. Members of the public are invited to make comments until 5pm on Thursday, June 12 online or in writing.

Submissions will be considered by council at the ordinary meeting in June, held on Wednesday, June 18.