![Dungog's Mayor John Connors. Dungog's Mayor John Connors.](/images/transform/v1/crop/frm/163574784/241ae686-29b6-4c8c-b6b9-6b27adaaa7ff.jpg/r0_208_4916_2972_w1200_h678_fmax.jpg)
COUNCIL may have to tighten its purse strings as a budget forecast predicts it will be almost half-a-million dollars in the red.
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The Draft Operational Plan and Budget shows that Dungog Shire Council is expected to enter into a deficit of $450,000.
However, Dungog mayor, John Connors, is hopeful the council's finances could still be turned around. "Like any deficit, the budget is a forecast," he said. "It would be hoped that at the end of the financial year there would be no deficit and that we can save $450,000 from various other means throughout the year, or perhaps from the sale of property."
The initial draft budget forecast a $250,000 shortfall, however, consultancy fees saw that number blowout by a further $200,000.
Cr Connors said changes to the budget forecast were made to ensure the council has enough money for regular activities while also paying for consultants who are filling in to cover staff shortages. He hopes the council can find staff to fill these vacancies and in turn reduce the deficit by cutting expensive consultancy fees.
"The reason that I have moved the amendment to the budget, which puts it further into deficit to the extent of about $450,000, is to make it clear to those reading that funding will be available if recruitment of appropriate staff is unsuccessful in that area to ensure the time and consideration of development applications, the conclusion of the Rural Land Strategy and the Clarence Town Structure Plan," he wrote in a motion to the council.
"I would hope that we will recruit staff to do those tasks and that consultants will not be required but I think that might be a vain hope," the mayor said.
"Therefore it's prudent to have the money available and I think that if we're going to do that we should signal it upfront by putting it in the budget."
The council approved the motion on May 15, which pointed out that the council is dependent on state and federal grant funds to maintain things like roads and bridges.
Cr Connors said he expects those funds to slow in the coming years.
If we can't get grant funding then we won't be able to carry out road rehabilitation
- John Connors
"It will obviously impact on road maintenance," he said.
"We've been very fortunate that all the timber bridges are now replaced with concrete bridges, that's a significant saving, but if we can't get grant funding then we won't be able to carry out road rehabilitation as we have been."
With the extra funding budgeted for consultants Cr Connors hopes the council can deliver the 'long outstanding' Rural Land Strategy which lays the framework as to how rural land is used in the Shire.
The draft 2023-24 budget and operational plan is available on the council's website. Submissions are open until Wednesday, June 12.