'Cash running out': Council's dire warning as push for 35% rates rise continues

During discussion at the council meeting on Wednesday, June 29, the CEO Anthony McMahon was clear in his warning to councillors.

"If we don't do something very soon we will run out of cash and not be able to pay creditors," he said.

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He told councillors that council needed $20million every year for depreciation, to be put aside for maintenance/renewal of council's assets such as roads and buildings.

"The underlining issue is we have a lot of assets that we look after, but don't have the revenue to provide all those services," he said.

Mr McMahon said that of the $20m allocated for asset maintenance, transport - the roads/bridges network - took $12m in depreciation of assets.

He warned there were gaps in the depreciation schedule, which meant council would have to take out loans to cover the infrastructure that needed attention.

"There are a couple of years where we have to pick up on the backlog, in 2024 there's $34million for bridges," he said.

Council plans to take out a $34m loan in 2024 with Mr McMahon warning that if it didn't, there could be a "catastrophic issue" in regard to infrastructure failure.

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Acting director assets and operations Ian Macfarlane explained that of that $34m proposed loan, $15m would be allocated for Cuttagee Bridge. He said the bridge was at the end of its life, council was still chasing grant funding and that $15m was unlikely to be sufficient.

The following year in 2025, council proposes to take out a further loan of $9m for the Bega swimming pool, which was at the end of the life.

Mayor Russell Fitzpatrick said the 35 per cent increase would allow council to "steer our own course" and be "masters of our own destiny" and warned that the Bega pool could cost as much as $15m. He said more revenue was needed to allow council to provide the various services and maintain and renew community assets.

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If council decides to apply for a future special rate variation, it must apply to the Independent Pricing and Regulatory Tribunal and seek community feedback.