MAYOR ACKNOWLEDGES MUCH MORE TO BE DONE ON FINANCIAL SUSTAINABILITY
Published on 28 May 2026
Glen Innes Severn Council has today considered its latest Quarterly Budget Review (QBR) and updated Cash and Investments Report, with Mayor Margot Davis noting that while significant work is underway to strengthen Council’s financial position, further effort is required to address underlying structural challenges.
Councillor Davis welcomed recent improvements to financial reporting, thanking staff for enhancing transparency and clarity for Councillors and the community.
"We now have greater transparency and explanation on the fluctuations of our unrestricted cash position and the movements month to month that are a fact of local government cash flow management," she said.
Cr Davis said this context provides greater balance and reassurance when interpreting our financial position and, more importantly, the strategies to address what is a fluctuating liquidity position. However, she emphasised that broader financial indicators remain a key focus for Council.
“Despite these explanations, broader considerations remain. The trend in unrestricted cash is declining over time, and while monthly movements may be timing-related, the longer-term trajectory is important.”
Cr Davis highlighted the sensitivity of Council’s current unrestricted cash position.
“The fact that delayed income can materially influence monthly results demonstrates that our unrestricted cash buffers remain relatively tight. This highlights the need for continued focus on strengthening financial resilience,” she said.
Cr Davis said the reports reinforce the importance of addressing the fundamental structural challenges facing Council and the need for the Special Rate Variation (SRV), for which an outcome is imminent.
“The core issue that remains is how we sustainably strengthen unrestricted cash over time, rebuild investment levels, and reduce reliance on ongoing liquidity management measures.
“This leads directly to the underlying operational budget gap that continues to be evident across the QBR and draft Operational Plan budget currently on public exhibition,” Cr Davis said.
While acknowledging that Council’s Long-Term Financial Plan provides a pathway toward sustainability with the assistance of the Special Rate Variation application, the Mayor emphasised that greater progress is required.
“The organisation is carefully managing its position, and the Long-Term Financial Plan outlines a path to sustainability. However, I believe we need to work harder and move more decisively to close the gap between what we can afford and the level of services we deliver.”
“I have assured the Minister for Local Government, Ron Hoenig, of our absolute commitment to making the decisions necessary to achieving long-term financial sustainability,” Cr Davis said.
Cr Davis said the upcoming June Council meeting, where the final Operational Plan and Budget will be considered, will be a critical opportunity, as will the implementation of the new finance system, which is due to go live in July 2026.
“The most important next step is ensuring that the final Operational Plan and Budget presented in June has a clear and deliberate focus on addressing the structural operational budget gap, strengthening unrestricted cash sustainability, and progressing toward a genuinely balanced operating position,”
“We must make as much progress as possible through the June decisions, while also committing to further work throughout the financial year to identify and implement additional savings and operational efficiencies,” Cr Davis said.
The Mayor reaffirmed Council’s commitment to financial discipline and long-term sustainability, and to being transparent with the community.
“Hard decisions have been made, much has been done, and the Council is taking the right steps. However, there is more to do. Council remains committed to making the necessary decisions to ensure its long-term financial sustainability and the continued delivery of essential services to our community,” she said.
Media Enquiries: (02) 6730 2314 | media@gisc.nsw.gov.au