Eurobodalla Shire Council’s operating deficit has fallen from $14.3 million in 2024/25 to an estimated $6.6 million in 2025/26. Photo: Karyn Starmer.
Eurobodalla Shire Council continues to face its own cost-of-living pressures, forecasting an $8.72 million operating deficit (before capital income) in its general fund for the 2026/27 financial year.
Bringing together the sewer and water funds, the council is forecasting a $6.71 million operating deficit, before capital income, in its consolidated fund in 2026/27.
The general fund includes all council services financed by the general rate, the environment and stormwater levies and water charges. Primary sources of income are rates, plus fees and charges, many of which are capped by the NSW Government.
The draft 2026/27 operating plan has applied the NSW Independent Pricing and Regulatory Tribunal’s (IPART) core rate peg of 3.1 per cent for the 2026/27 general rate and the environmental levy.
The most expensive services for the council to provide, based on income less operating expenses, are transport, which is forecast to cost $21.2 million net, with recreation costing $10.7 million and information and support services $10 million.
Community facilities and spaces will cost the council $6.4 million in 2026/27, followed by public order and safety, which will require $4.9 million.
The council plans to spend $86.5 million on capital projects in 2026/27, some of which are partially or fully funded by grants.
The council intends spending $22.6 million on the Eurobodalla Southern Water Storage Facility in 2026/27. Image: Supplied.
Among the largest projects are the Southern Water Storage Facility, with $22.6 million expenditure planned, $7.7 million on the Tomakin Sewage Treatment Plant augmentation, $4 million on the Regional Co-located Emergency Services Precinct with the Moruya SES, and $3.3 million on the Moruya sewer for the new hospital.
Then there are transport works costing $3 million at the Moruya Housing precinct, Stage 1 of the rock wall at Beach Road, Caseys Beach costing $2.75 million, the $2.5 million upgrade of the Eurobodalla animal pound, $2.5 million on general fund plant and fleet, $2.5 million to upgrade sewer pump stations and transport systems, and a $2.2 million upgrade of the Tuross sewage pump station.
The council also plans spending $2 million each on construction works for its coastal management plan, the Hanging Rock sports precinct facility and the Moruya TAFE roundabout.
To try to better balance its budget, the council proposes to reinstate water and sewerage access charges for secondary dwellings and mixed-use developments at the same level as dual-occupancy developments. It said that proposed change would improve equity between users of its water and sewerage services and bring in $134,355 extra.
The good news is that after cash and non-cash capital grants and contributions and developer contributions, the council is forecasting an operating surplus of $12.3 million in its general fund and $18.1 million in its consolidated fund.
The papers for the council’s meeting on 28 April include draft fees and charges for 2026/27. In total, there are 782 fees and charges, with 80 new fees introduced and 54 discontinued. Most are rising 3.1 per cent in line with the IPART core peg.
The council is forecasting a net operating surplus, before capital income, of $2.5 million in FY20235/36. Photo: File.
“However, some discretionary, user-pay fees increased by around 6-12 per cent where the cost of delivering services has risen more sharply and existing fees recover only part of the cost,” the report said.
“These increases are focused on services that involve higher staffing, operational or materials costs and apply particularly to community transport, children’s services, arts, events and facility hire, and commercial waste and recycling.”
Where there is a clear community benefit, though, the council is applying discounted fees and charges for community groups, sporting clubs and not-for-profits using council facilities. The council also discounts charges for regular or bulk users of certain services to improve accessibility and utilisation.
The third related draft report is the council’s long-term financial plan covering 2026/27 to 2035/36.
The 10-year plan forecasts that the council’s consolidated operating results will move from 2026/27’s forecast deficit of $6.71 million to a $2.5 million surplus in 2035/36.
“However, within the general fund the operating position improves only marginally, with a forecast deficit of approximately $7.9 million remaining in the final year of the plan,” the report said.
“This outcome highlights ongoing structural pressures and the continued challenge of achieving long-term financial sustainability within the general fund.”
Challenges include limited growth in operating income under the current IPART rate pegging, rising costs and inflationary pressures increasing the cost of service delivery, workforce constraints, significant growth in the council’s asset base and associated renewal and maintenance costs, and cost shifting from the State and Federal governments.
Once approved by the council for public exhibition, the 2026/27 Draft Operational Plan, draft Fees and Charges 2026/27 and the 2026/36 Long-Term Financial Plan will be available for community feedback from 1 to 31 May.
During that period, everyone is welcome to attend the council’s community information sessions in Narooma, Moruya and Batemans Bay.
