Dubbo's DREAM Festival is on shaky ground after the volunteer committee indicated they could no longer run the event.
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The DREAM (Dubbo Regional Entertainment Arts and Music) Festival started in 2010 as a way to celebrate culture in the region.
November should have been the 10th anniversary, however it will not be going ahead.
In a report to council, which will be presented at the Dubbo Regional Council meeting on Monday night, manager regional events Kim Hague said the volunteer committee no longer wished to run the week-long festival.
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"In March 2020, Dubbo Regional Council received advice from the committee that they intend to cease administering the annual DREAM Festival," she said.
"This decision was based on the significant size of the event and the volunteer committee no longer had the capacity to continue to deliver the event in its current size and format."
DREAM Festival chair Anne Field recommended council make use of the "extensive expertise" of its staff and take over the running of the event.
However, she told council the committee was "more than willing to continue to participate in an advisory capacity" to ensure a smooth transition.
A decision will be made on Monday night, but Ms Hague has recommended the festival not proceed this year because of the COVID-19 restrictions.
She is also recommending the $40,000 put aside for this year's event to go towards other cultural events.
The DREAM Festival attracts more than 20,000 people every year, with the parade and market day drawing crowds from across the region.
Council estimates it has provided about $2 million in economic benefit to the region in the last five years.
The meeting will also finalise the council budget for 2020/21, including the fees and charges.
There were 33 submissions to council submitted on the budget. That feedback will be used to shape the document before it is voted on by the councillors and adopted.
The June ordinary council meeting will be held at the Dubbo Regional Theatre and Convention Centre. However, members of the public will not be able to attend.
The meeting can be seen live on the council website or Facebook page from 5.30pm. Written statements can also be submitted to council before the meeting.