BATHURST Regional Council has confirmed its unrestricted cash is now back in the black following a financial modelling error identified in early 2025.
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The council was determined to get the unrestricted cash back in a positive position by June 30, 2025, either by way of a state government grant or an internal loan from the sewer fund to the general fund.
For now, the council hasn't had to make use of the internal loan, which general manager David Sherley has confirmed was ultimately approved by the Minister for Local Government.
He said the Financial Assistance Grant (FAG) from the state government was forthcoming before the end of the 2024-25 financial year, with the council receiving the pre-payment on June 26.
Bathurst council received $4,243,570, which is 50 per cent of the FAG grant.
Without this money or using an internal loan, the council's unrestricted cash position was expected to be sitting at negative $2.19 million on June 30.
That situation has been avoided.
"The draft unrestricted cash position is positive as at June 30, 2025," Mr Sherley said.
"This will be reviewed as part of the finalisation of the Annual Financial Statements."
As for the internal loan, which was the subject of a failed rescission motion on June 24, there are no plans to make use of it at this time.
"Council will consider whether it draws down any funds during the 2025-26 financial year," Mr Sherley said.
The council had sought approval from the Local Government Minister for an internal loan of up to $10 million from the sewer fund, which was to be repaid by June 2030.
The terms of the internal loan detailed in a letter to the Minister were, according to then-acting general manager Neil Southorn, "designed to provide maximum flexibility to council".
In a report to the June 18 council meeting, it was said the intention was to only take out a loan for the amount of negative unrestricted cash required and to repay it as FAG funds were received.
