Financial forecast

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

  • Page last updated: September 2025

Latest news: August 2025

Council’s draft Delivery Program 2025-29, Operational Plan and Fee and Charges 2025-26 were adopted in June 2025. We held community briefings in May during the public exhibition period.

Background

The community had an opportunity to provide feedback on Council’s draft Delivery Program 2025-29, Operational Plan and Fee and Charges 2025-26 at three community briefings in May 2025 and also while the documents were on public exhibition. Documents were adopted at the June 2025 Council Meeting identifying financial challenges particularly in Council's General Fund.

A financial health check late 2022 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 to try and avoid special rate rises or service reductions in the future.

Local councils across NSW, including ours, are facing growing financial pressures that impact our ability to deliver services, maintain infrastructure, and plan for the future. These challenges are not unique to our community; they reflect broader issues affecting the entire local government sector in NSW.

For the 2025-26 financial year six councils submitted applications for a special variation. Eurobodalla Council did not apply for a special variation, but like many councils across the state - our general fund is facing ongoing operating deficits.

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.

Timeline of activities

  • As part of Council's Finance Strategy a review of existing internal and external cash reserves was undertaken, and a cash reserves policy was approved in March 2025, this will be applied in reporting of Council’s Annual Financial Statements 2024-25.
  • Council's Cash Reserves Policy (159.7 KB)
  • In May 2025, three community information sessions were held at the libraries and were hosted by Council's General Manager Mark Ferguson, Mayor Mathew Hatcher and Finance Director Stephanie Speedy. This provided the community an opportunity to ask questions and give feedback on the draft Delivery Program 2025-29, Operational Plan and Fee and Charges 2025-26 and Resourcing Strategy 2025-35.
  • The draft documents were on public exhibition from Wednesday 30 April to Tuesday 27 May 2025. Staff and councillors reviewed feedback received during the public exhibition and documents were adopted at the Ordinary Meeting of Council 24 June 2025.
  • In June 2025, the draft Investment Policy was presented to Council’s Audit Risk and Improvement Committee (ARIC). A recommendation in the June Council Report, was that the draft policy be placed on public exhibition before being presented to Council for formal adoption, ensuring input from Council’s ARIC and the community is incorporated.
  • The draft Investment Policy was on public exhibition from Thursday 26 June to 23 July 2025, no submissions were received. A report will be presented to Council in September 2025 for consideration of adoption.

  • In April 2024, we hosted three community information sessions to explain the Finance Strategy and Council's actions to date. At these sessions, our General Manager and Finance Director shared information about our current financial challenges, and changes and savings we have identified so far.
  • From Wednesday 1 to Tuesday 28 May, our draft 2024-25 operational plan was on public exhibition for community feedback. The draft operational plan forecast the general fund deficit reducing to $8.3M, reflecting the efforts to date to become more financially resilient.
  • In May 2024, we hosted three more community information sessions at the libraries while our 2024-25 draft operational plan was on exhibition. At these sessions, our General Manager and Finance Director gave an update on our financial situation, with a focus on the draft 2024-25 budget and works program.
  • Staff and councillors reviewed feedback we received during the public exhibition before the 2024-25 operational plan and budget was adopted at the June 2024 Council Meeting.

  • In March 2023, councillors and senior staff attended a strategic workshop to review the financial situation and identify a path forward for the shire. Councillors continue to be briefed regularly on financial matters.
  • At the start of 2023, the projected deficit was a $14M shortfall. Work undertaken to date to address these challenges now forecasts the deficit falling to $8.3M in the proposed 2024-25 plan.
  • Initially, we reduced the 2023-24 financial year’s general fund projected 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 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, followed in April by an accompanying grants strategy.
  • In May 2023, we hosted three presentations for community members to hear from General Manager and Director of Finance about Council's current and future financial challenges while the draft work plan was on public exhibition.
  • In late 2023, we undertook a budget reset process; all areas of Council examined operations and the cost of delivering existing services to identify where efficiencies could be made for the 2024-25 financial year onwards.
  • Service modifications proposed from the budget reset process include revised opening hours at the Bay Pavilions and the Moruya Library and Basil Sellers Exhibition Centre, along with a more targeted, prioritised asset renewal and road maintenance program, and a modified mowing schedule for low-use locations within the shire.

Related plans and strategies

Our approach to grant funding

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

  • 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 was adopted by Council in April 2024 to support this approach.

Related media releases