Council-News: Incoming Councillors Face Huge Financial Challenges

Urgent Financial Decisions for Upper Hunter Shire Council

The incoming group of Upper Hunter Shire councillors faces a daunting task in guiding the council out of fiscal distress. Operating with a deficit projected until 2032, the council is burdened with a staggering $32 million debt. To remedy this, the council has proposed a special rate variation (SRV) of 10 percent per year for the next three years, enabling a permanent cumulative increase of 33.1 percent.

Council documentation indicates a consistent operating deficit over the past four years, collecting only $12.4 million in rates against a $50 million operational budget for the fiscal year 2023/24. Factors contributing to these financial struggles include the rising costs of infrastructure maintenance, particularly the extensive road network, and the impact of inflation on construction expenses.

Failed Projects and Expensive Mismanagement

• Warbirds Over Scone festival reported a loss of $133,000 in its 2024 edition, a relative improvement over previous years.
• Cost overruns on the Coulsons Creek Road upgrade ballooned its budget from $8 million to over $56 million.
• The council incurred near $10,000 in expenses contesting a freedom of information request from a councillor regarding a geotechnical report.

Under new proposals, the council anticipates raising $4 million in annual rate income with the SRV and could potentially save $750,000 through organizational restructuring.

As elections approach, 11 candidates vie for positions, with a minimum of four new councillors expected to take office. Current councillors Ron Campbell, Belinda McKenzie, and Lee Watts will not seek re-election, alongside former councillor Elizabeth Flannery.