Two regional councils - Bathurst Regional and Shoalhaven City - have not met any financial benchmarks for at least three years, a report into NSW local government finances has found.
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Local Government 2024 by NSW Auditor-General Bola Oyetunji examined the financial sustainability of local councils across the state.
The A-G's March 31 report assessed financial sustainability benchmarks on operating performance and infrastructure renewal, among others.
A spokesperson for Bathurst Regional Council blamed cost-shifting and expenditure increases for its financial situation.
"Plans are in place to improve our position, including a reduction in events and delaying non-critical role hire," the spokesperson said.
The A-G's wide-ranging report found 16 councils had insufficient cash and investments to meet three months of expenses with "serious risks to their continued financial sustainability".
Those councils were Liverpool City, Bathurst Regional, Blue Mountains City, Central Darling Shire, Cessnock City, Dungog Shire, Glen Innes Severn, Griffith City, Hawkesbury City, Kiama Municipal, Lismore City, Shoalhaven City, Tamworth Regional, Upper Hunter Shire, Warren Shire and Wollondilly Shire.
Liverpool City was the only Sydney-based council in this category.
Blue Mountains, Hawkesbury City and Wollondilly Shire include parts of Greater Sydney as well as regional NSW.
Country Mayor's Association of NSW chairman Rick Firman told ACM there were "no surprises" in the report.
"Rural, regional and remote NSW councils are doing it extremely tough," he said.
Cr Firman, the mayor of Temora Shire Council in the Riverina, said financial sustainability was the number one issue for them.
"Genuine reform" was needed in the sector; otherwise, rural and regional communities would bear the brunt of it, he said.
Mayor of Mid-Coast Council and Rural/Regional vice president of Local Government NSW Claire Pontin told ACM they had been advocating to federal and state governments for help.
"At a federal level, a restoration of funding for all councils to 1 per cent of Commonwealth taxation revenue will assist councils immensely," she said.
The report also found thirty-five councils (10 metropolitan, 10 regional and 15 rural) met just one or none of the three financial sustainability benchmarks.
Forty per cent of councils did not break even in 2023-24.
Shoalhaven City council was contacted for comment.
Carla Mascarenhas
Carla Mascarenhas is a journalist with Explore Travel and The Senior. She specialises in deep issues affecting Gen X and beyond, and the latest in travel news. Contact her on carla.mascarenhas@austcommunitymedia.com.au
