Tamworth Regional Council faces $3.9m decline in cash reserves across next four years

Service levels could decrease across the city if Tamworth Regional Council can't find a way to claw back a multi-million dollar decline in cash across the next four years.

Council's draft Annual Plan and Budget for the next financial year paints a grim state of affairs for the organisation's cash levels.

The plan, which will go before councillors on Tuesday, shows council's cash reserve balance, that is the amount of cash on hand to meet short-term, and emergency funding needs, is expected to drop by $3.9 million across the next four years.

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Mayor Russell Webb said while the organisation is facing a modest cash surplus for the next financial year, increasing price tags, and cost shifting from the state government were the biggest threats.

"In the coming financial year we have a budgeted cash surplus of $429,325," he said.

"But there will be a further depletion of our savings and we will be taking out loans to be able to deliver some projects for our community."

He said the "high inflation" being felt across households is no different for council.

The report says council will be reviewing options to improve it's unrestricted cash reserve, which could include the sale of real estate assets, review of grant funding, possible service decline and special rate variations.

"No increase in revenue will see the need for service levels to decrease over time," the plan says.

One potential sale could include a car park behind Ray Walsh House on Kable Avenue.

A spokesperson for council told the Leader the organisation "is in discussion with a suitable proponent", but further details are "commercial in confidence".

Cr Webb said the organisation had limited options to increase revenue while also maintaining the same level of services for the community.

"It will be necessary for council and the community to work together and re-evaluate what we do and how we do it," he said.

The budget reveals council intends to spend $249,708,004 as part of the general, water and sewerage fund during the 2023/24 financial year.

But throughout the year, Cr Webb said the organisation would be engaging with the community to figure out the best way forward.

How we "maintain", "grow", or "manage a decline", will be the three options on the table.

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