Future Ready Cabonne: Increasing the Understanding

Cabonne Council is asking residents to help shape the future of local services as it faces increasing financial pressure from rising costs, ageing infrastructure and limited government funding. Through the Future Ready Cabonne survey, the community is being asked to identify which services are most important and where they would be prepared to see reductions or changes.

With road maintenance accounting for the largest share of Council's budget, other services such as childcare, swimming pools, libraries and town maintenance are being reviewed to ensure they remain financially sustainable. Council is also exploring options to reduce pressure on rates, including reviewing fees and charges, identifying efficiencies and considering alternative revenue sources.

Mayor Kevin Beatty said the solution cannot simply be higher rates, highlighting the ongoing impacts of COVID-19, disaster recovery costs and declining federal funding to councils. He also stressed the importance of hearing from all parts of the Cabonne community, noting that survey responses to date have been strongest from rural residents.

The Future Ready Cabonne Community Survey closes on Monday, 31 August, and will help guide Council's future priorities and service delivery decisions.

Cut services or pay more: council's $21m budget ultimatum in wake of funding shortfall | Central Western Daily | Orange, NSW

WATCH: https://www.facebook.com/reel/1620680539653549

The Daily Telegraph approached Cabonne Council and asked the following questions. Please see below the responses to these questions by Mayor of Cabonne, Kevin Beatty.

Date: 23 July 2026

1. Crumbling community hubs, swimming pools and historic facilities are being left to rot as your council (like many others) admits it can only fund half its asset maintenance requirements. Why is this the case?

Cabonne Council's Local Government Area (LGA) has a population of just under 14,000 people, spread across 11 townships and localities over more than 6,000 square kilometres. We maintain over 2,000 kilometres of roads, seven swimming pools, numerous halls, public amenities and a wide range of community infrastructure.

The cost of maintaining and renewing this infrastructure continues to rise. The NSW Government has had a rate-capping system in place since the late 1970s, and arguably those increases have not kept pace with the rising costs faced by councils over time. Like many rural and regional councils, Cabonne has relied heavily on State and Federal Government grants to help fund infrastructure and services. However, the availability and value of these grants have reduced in recent years.

Cabonne is one of the few councils that has never undertaken a Special Rate Variation (SRV). Most people would be aware of the significant increase in costs since the COVID-19 period. Combined with the impacts of the major natural disaster experienced in 2022, Council must now actively address the risks posed by the long-term structural deficits identified in our financial modelling.

Council is critically reviewing its expenditure. In this year's budget, we reduced recurrent spending by approximately $850,000. However, there is a real risk of reduced services and declining asset condition if we continue to reduce expenditure without also addressing income. That is why we are engaging with our community to understand what trade-offs may be acceptable while still meeting expectations around services and infrastructure.

2. Ratepayers face a generational infrastructure decay under a severely underfunded strategy. What can your council and other tiers of government do to avoid neighbourhood halls rotting and crumbling community hubs being axed as the maintenance fund dries up?

Cabonne Council seeks competitive grant funding wherever possible to support the renewal and replacement of community assets. It is important that we avoid adding new, operationally intensive assets to our existing network when we are already finding it difficult to maintain the infrastructure we currently have.

In 2014, the Federal Government froze Financial Assistance Grants for councils nationwide until 2017, and funding has not returned to the same level since.

These grants are critical to supporting local government, particularly in rural and regional Australia. Historically, this funding represented around 1 per cent of Gross Domestic Product (GDP); today it has fallen to less than 0.6 per cent.

There have been numerous Federal and State inquiries into the long-term financial sustainability of local government. It is not difficult to understand why many rural and regional councils in NSW, operating under rate capping, are facing a growing gap between the level of infrastructure and services expected by their communities and what can realistically be funded.

The solution cannot only be asking ratepayers to pay more. Local government needs a larger and fairer share of Federal and State taxation revenue, particularly given that councils deliver many of the essential services and public infrastructure that communities rely upon every day.

3. Do you think LGAs are absorbing too much from other levels of government?

Cost shifting is a major part of the financial sustainability challenge facing local government.

A clear example is the Emergency Services Levy, which places a significant burden on rural councils. In Cabonne's case, the levy costs more than $600,000 each year and must be funded from rates revenue. In effect, this is money collected from local ratepayers that is used to fund State Government services, yet it is not separately identified on residents' rates notices.

To put that into perspective, $600,000 is approximately half the operating budget required to run Council's seven public swimming pools, or enough funding to undertake around 15 kilometres of gravel road re-sheeting.

We are frequently told by State and Federal governments that local government is the level of government closest to the community and plays a critical role in delivering public infrastructure and services. While that sentiment is appreciated, the way funding responsibilities and costs are currently structured does not always reflect that recognition.

4. The strategy admits the base case funding model allocation of $150k p.a. leaves a "to do list" of 45 high-risk projects across 150 facilities untouched, ensuring only half of needed structural maintenance will occur over the next decade. Is this a concern for you and your council? Are other councils feeling the pinch too?

This is absolutely a concern for me, for Council, and most importantly for our community, because they are ultimately the ones who experience the consequences of declining asset condition and reduced service levels.

Maintenance programs are often among the first areas impacted when councils come under financial pressure, and we are constantly trying to make every dollar go as far as possible. I am aware that many of my fellow mayors, particularly those represented through the Country Mayors Association, are facing similar challenges and having the same difficult conversations with their communities.

Some councils have already undertaken multiple Special Rate Variations in an effort to address substantial and ongoing funding shortfalls. While councils must always look for opportunities to reduce expenditure and improve efficiency, the gap between community expectations and the funding available to maintain infrastructure and services is becoming increasingly difficult to manage.

Without broader reform to local government funding, many councils will continue to face challenging decisions about service levels, asset maintenance and long-term financial sustainability.

Link to article: https://www.dailytelegraph.com.au/subscribe/news/1/?sourceCode=DTWEB_WRE170_a_FBK&dest=https%3A%2F%2Fwww.dailytelegraph.com.au%2Fnewslocal%2Fdubbo%2Fnsw-councils-warn-essential-community-infrastructure-faces-deteriorating-future%2Fnews-story%2F1dc8a01036359f5960fbd3c143a90c28&memtype=anonymous&mode=premium&v21=GROUPB-Segment-2-NOSCORE

A looming financial crisis is threatening the very survival of councils. That is the message the councils from every State and Territory and Union representing the entire Local Government sector sent to Federal Parliament in Canberra. Australia's 538 local councils united at the National General Assembly in Canberra to call on the Australian Parliament to deliver an immediate increase in united funding, warning the financial sustainability of councils and the services communities rely on are increasingly at risk.

Australian Local Government Association President Mayor Matt Burnett said the motion reflected the shared reality facing councils across metropolitan, regional, rural and remote Australia.

"Financial sustainability is not an abstract discussion for local government. It is about whether councils can keep doing the job our communities expect us to do," Mayor Burnett said.

"Councils are responsible for the roads, bridges, libraries, pools, parks, footpaths, storm water systems, waste services and community facilities Australians rely on every day. We are also the first people communities call when something goes wrong, whether that is a local road failure, a disaster, a planning issue or a service disruption. Yet councils are increasingly being asked to do more with less funding certainty, less flexibility, limited revenue capacity and less ability to plan for the long term."

Mayor Burnett said the Financial Assistance Grants were central to councils' ability to respond to local priorities because they are untied and flexible.

"Financial Assistance Grants are not just another grant program. They recognise that no two communities are the same and trust councils to make decision based on local needs", he said.

"For rural, regional and remote councils, the pressures include vast geographic areas, small populations, ageing infrastructure and limited rate bases. For fast-growing urban councils, the challenge is keeping pace with demand for new roads, drainage, parks, community facilities, waste systems and other services needed to support housing growth. The circumstances differ, but the underlying problem is the same. Community expectations, costs and responsibilities are rising, but the funding partnership is not keeping pace."

Mayor Burnett, who is also the LGA Queensland president, said the consequences extended beyond local government, affecting national productivity, housing supply, freight efficiency, liveability and disaster resilience.

"When councils cannot maintain local infrastructure, productivity suffers. When roads and bridges deteriorate, freight suffers. When essential facilities and enabling infrastructure delayed, housing and delivery and liveability suffer", he said.

"This is not just a local government problem. It is a national problem, and it requires a national response. Councils want to continue working constructivley with the Government, the Parliament and all parties. But the message from this Assembly is unmistakable: local government is united, local government is serious, and councils are calling for action now."

Read the full article below:

Cabonne Council is seeking community feedback to help guide future priorities, services and spending across the Local Government Area.

Like many councils, we are facing increasing pressures from ageing infrastructure and limited resources. To ensure we can continue delivering the services and facilities our communities value most, we need to understand what is most important to you.

The survey asks residents to provide feedback on: • What Council should prioritise in the future
• Which services are most important to the community
• Areas where spending should increase, stay the same or decrease
• How Council can best shape Cabonne's future

Some of the questions involve balancing competing priorities, as resources are limited. Your feedback will help Council understand what the community values most and where future investment should be focused.

Complete the survey today and have your say on the future of Cabonne:

https://micromex.qualtrics.com/jfe/form/SV_2t6UzRi4aazrsmW?Q_CHL=qr

Cabonne Council has highlighted ongoing financial challenges, with long-term modelling indicating a potential $10 million deficit in the future. While Council has identified $1.1 million in savings and is forecasting a surplus when grant funding is included, its underlying operating position remains in deficit without external funding support.

Council is considering whether a Special Rate Variation (SRV) may be needed in 2028 to help maintain services and infrastructure, although no decision has been made and further community consultation will occur before any application is considered.

Mayor Kevin Beatty and Deputy Mayor Jamie Jones said rising costs for fuel, electricity, machinery and materials are increasing much faster than rate income, placing pressure on Council's ability to maintain roads and other assets. Councillor Peter Batten noted that infrastructure funding shortfalls, particularly for roads, mean Council risks falling behind in asset maintenance.

Despite these challenges, Council's draft 2026-27 budget includes a $30.3 million capital works program, including $17 million for transport infrastructure and $10 million for continued work on Peak Hill Road.

Council is encouraging residents to learn more about its financial position and provide feedback through the Future Ready Cabonne community engagement process.

Cabonne signals budget pressures: 21 May - Forbes Advocate

Cabonne Council has warned that a future rates increase may be necessary as long-term financial forecasts indicate a potential $10 million deficit. While Council has identified $1.1 million in savings and is projecting an operating surplus when capital grants are included, its underlying operating position remains in deficit without external funding.

Mayor Kevin Beatty said rising costs, combined with limited revenue growth, continue to place pressure on Council's finances. As a result, Council is considering a Special Rate Variation (SRV) in 2028, although any decision has been delayed to allow for further community consultation and consideration of current economic conditions.

Councillors highlighted that the cost of fuel, electricity, machinery and materials is increasing faster than rate income, while ongoing challenges remain in maintaining roads and other community assets. The draft 2026-27 budget includes a $30.3 million capital works program, with $17 million allocated to transport infrastructure.

Council is encouraging residents to learn more about its long-term financial position and have their say through the Future Ready Cabonne community engagement process.

Cowra Guardian, 7 May 2026: Cabonne signals future rate hike may be needed

Cabonne Council has decided not to pursue a Special Rate Variation (SRV) in 2027, instead deferring consideration of a potential application until 2028 due to ongoing economic uncertainty.

Mayor Kevin Beatty said Council, like many rural and regional councils, continues to face significant financial sustainability challenges driven by rising costs, limited revenue growth and the need to maintain a large and ageing asset network. Global and national economic uncertainty, including the impacts of conflict in the Middle East and energy market volatility, also contributed to Council's decision to delay any SRV application.

The additional 18 months will allow Council to further inform and engage the community about its financial position and the potential impacts of either increasing rates or maintaining current rate levels. This includes explaining how future decisions could affect service delivery, infrastructure maintenance and asset renewal.

To support community understanding, Council will release a series of informational videos outlining how Council finances operate, the challenges facing local government and the choices involved in long-term financial planning. Residents can stay informed and provide feedback through the Future Ready Cabonne project on the Have Your Say Cabonne website.

Global Economic Uncertainty And Financial Pressures On Council - The Canowindra Phoenix

7News Central West interview - Thursday, 30 April 2026 - Facebook

Council is facing increasing challenges in achieving long‑term financial sustainability. As part of addressing these challenges, Council has been considering whether a Special Rate Variation (SRV) may be needed in the future. Like many rural and regional councils, these pressures are driven by limited revenue growth, rising service delivery costs, and the need to maintain a large and ageing asset base.

At the 28 April 2026 Ordinary Council Meeting, Council chose to delay the decision regarding a Special Rate Variation at this time due to ongoing economic uncertainty at the global, national and regional level. Instead, Council has deferred this decision for up to 18 months. This will allow additional time to better understand potential economic impacts and to ensure the community is fully informed about the implications of both pursuing or not pursuing an SRV.

To support community understanding, Council will also be releasing a series of factual videos explaining Council’s finances and how they operate. These will help provide greater transparency around the financial pressures Council faces and the choices involved in long‑term financial planning.

For more information, to stay connected or to register for updates, visit: Future Ready Cabonne - Have Your Say