Documents published by Blayney Shire Council ahead of its November 9 meeting detailed how projected operating shortfalls into the millions of dollars for its 'general fund' were "not sustainable" and as a result, rates across the community would need to rise.

The average yearly forecast for the general fund estimated a $1.8 million deficit for the period between 2023/24 and 2033/2034.

The documents added that council had sought to address the operating deficit with a review of services.

Despite finding hundreds of thousands of dollars in savings, council said this would not be enough to maintain current service levels or adequate funding for infrastructure renewals.

"To achieve financial sustainability and maintain fit for purpose infrastructure, council requires a permanent cumulative rate increase from July 1 2024," the report read.

"Council has an obligation to ensure that it manages its financial resources sustainably, including that it has adequate revenue to cover expenditure."

After the council adopted its 2023/24 to 2026/27 'delivery program' and 2023/24 'operational plan' on June 27, it proceeded to engage Morrison Low (ML), a multidisciplinary management consultancy, which specialise in providing financial modelling to local governments across Australia.

ML has undertaken an independent financial assessment of Blayney Shire Council's ten-year 'long term financial plan' seeking to identify financial improvements.

Following the ML review, the company stated: "Unfortunately, it is not possible for council to 'do nothing'.

"A range of difficult decisions are needed to address the financial outlook for council's general fund.

"This is critically important because the general fund provides for all council services apart from sewerage and domestic waste, and the funding available supports the maintenance of critical assets such as roads, bridges, pathways, kerbs, storm water drains, parks and gardens and public buildings."

These are just some of the reasons indicated by council as to why it would consider a report on a proposed Special Rate Variation.

Three new options were proposed which would be discussed at Thursday's meeting.

The first would see a 26.5 per cent rate rise in 2024/25, followed by two consecutive years of 2.5 per cent. Option two would see a 14 per cent rise in 24/25 and again in 25/26 with a 2.5 per cent rise in 26/27. The third option would be three consecutive yearly rises of 10 per cent.

"Council under each scenario would move from a forecast deficient of -$1.43m in 2025, to a small surplus in 2028 and continued small surpluses to 2034," the report added.

"Whichever scenario is chosen, council would apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent cumulative rate increase of approximately 33 per cent."

The proposal which councillors are hearing is based around the commencement of a community consultation for the proposed rate hikes.

The consultation would commence November 10 and conclude December 15.

Following conclusion of that process, a report on the community engagement based on feedback would be prepared and submitted to council for consideration at an ordinary meeting scheduled for January 23 2024.

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