Dubbo council down $11 million for 2020/21 financial year due to COVID-19

Council's 2020/21 financial statements, tabled at a recent meeting, show COVID-19 had a greater financial impact than initially expected. In August 2020, council forecast a $7.5 million deficit.

However, council finished the year in a "sound financial position", according to the statements, with net assets of $2.6 billion, in addition to cash and investments worth $222 million.

Council's chief executive officer Murray Wood said while not a "critical emergency", it does show council's financial position in coming years will be "under significant duress".

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"With some areas of council's revenue streams affected, some more significantly, by the far-reaching effect of the pandemic over nearly two consecutive years, a hit was expected," Mr Wood said.

"Throw in the direct effect of closures and lockdowns across the local government area from August of this year - that hit on council has been challenging."

Mr Wood said it "just abut every way", the region's success, growth and strategic position had provided council with additional costs.

"With an unexpected decrease in revenue over consecutive years, those demands, if left unchecked or not addressed now, could out-strip council's annual revenue and cash reserves, ie. 'rainy day savings'. Because of the rolling effect of COVID-19... put in simple terms: council is currently 'asset rich' and 'cash poor'."

The CEO said there were steps the organisation could take now to reduce the pressure on the bottom line.

"A greater focus on directing grants to improve what we have versus 'nice to have' new assets. Tightening council's overall spending through a significantly more strategic capital expenditure review is another effective way of doing this; and making difficult cost-saving decision early - ahead of time," Mr Wood said.

Council's plan is to ensure the community is aware of the financial pressures as is involved in deciding where funds are spent.

"If the community wants to consolidate and focus on what we have now, we can work with what we've got to maintain a standard the community expects. If the community wants more new assets or more services, then council will need to actively look at what it can reduce or remove to balance expenditure, insofar as existing services and assets, to make it happen while remaining financially viable," Mr Wood said.

The full financial statements can be seen on the Dubbo Regional Council website.