Murray River Council is planning a capital works program of more than $30 million in the next financial year.

The ambitious program is set out in the 2026-27 operational plan, which projects a $78.18 million operational revenue but an operating deficit of $5.79 million, excluding capital grants and gains or losses from asset sales.

The proposed budget is based on a 3.2 per cent increase in general rate revenue, in line with the rate cap set by the Independent Pricing and Regulatory Tribunal of NSW.

Mayor John Harvie said it’s about delivering a carefully considered budget, focusing on renewal and maintenance.

“Much of our investment is directed toward maintaining and renewing our assets, and that remains critical,” he said.

“Despite the financial challenges the whole local government sector is facing, this budget is about finding the right balance; ensuring we look after what we have, maintain the services our communities rely on, and continue to progress priority projects where we can.”

Some of the larger areas of committed capital spend in council’s draft budget include:

• Moama water treatment plant dosing upgrade - $3.02m

• Kyalite Rd widening - $2.5m

• Maude Rd upgrade - $1.1m

• Landfill rehabilitation works - $2.2m

• Barham sewer pump station works - $802,000

• Moulamein levees and flood protection systems - $740,000

• Nancurrie Rd north resheeting - $1m

• Heavy fleet replacement - $2.52m

The draft budget estimates an operating revenue of $78.18 million and operating expenses of $74.46 million for the coming year.

Of the proposed $30.73 million capital works program, $21.83 million will come from internal resources, while $8.90 million will be funded through capital grants and contributions.

Council’s rates, charges and fees make up 36 per cent of council’s total revenue to cover expenses.

Access and usage charges for water and wastewater (sewer) will also only see increases of about 3.7 per cent.

In delivering the budget, Cr Harvie acknowledged that the local government sector was under increased financial pressure.

“Like most regional councils, MRC is facing increasing financial strain,’’ he said.

“Rising depreciation costs, fluctuating capital grant funding and rate peg limits that are not keeping pace with CPI are all placing pressure on council’s bottom line,” he said.

“Even where we are tracking towards a break-even position for utility services, our Water and Sewer Funds will continue to be challenged as we work to maintain ageing infrastructure and support growing communities.”

Cr Harvie said reductions in Commonwealth Financial Assistance Grants were compounding the issue.

“Financial Assistance Grants have effectively been halved over time, dropping from one per cent of Commonwealth taxation revenue in 1996 to around half a per cent today. This reduction equates to around $11 million a year for Murray River Council.”

“On top of this, councils are continuing to absorb cost shifting from other levels of government, which is simply not sustainable.”

He said calls to restore Commonwealth Financial Assistance Grants had so far gone unanswered.

“Despite clear recommendations from the federal Inquiry into Local Government Financial Sustainability and ongoing advocacy from across the sector, there has been no commitment to return funding to previous levels,” he said.

“Instead, councils are being left with limited options, including significant rate increases.’’

Murray River Council’s draft budget documents are available for public comment until May 29, and can be viewed online at yoursay.murrayriver.nsw.gov.au

Following the exhibition period, any submissions will be considered and the final Operational Plan and budget adopted at a council meeting to be held in June.

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Tuesday, 12th November 2030

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