Bathurst Regional Council has raised concerns over its financial position, citing a significant drop in available cash reserves due to slow land sales at its Windradyne subdivision, The Reserve. In the March business paper, Council reported that as of the end of February, its unrestricted cash had decreased by $7.3 million, while restricted funds had increased by $10.6 million.
The Office of Local Government (OLG) has been formally notified of the situation, and regular meetings are ongoing, continuing discussions initiated after the 2024 Special Rate Variation (SRV) consultation process. In response to the financial challenges, Council has established a temporary Financial Sustainability Committee, comprising senior finance staff, the Mayor, Deputy Mayor, and selected Councillors, to monitor the situation closely and advise on strategies to restore financial stability. Additionally, the matter has been referred to Council’s Audit Risk and Improvement Committee for further scrutiny.
To address the financial strain, Council has implemented several cost-saving measures, including delaying recruitment for non-critical roles and reducing the number of events across the Local Government Area. These actions are part of the broader Pathway to Sustainability strategy aimed at identifying and realizing operational efficiencies.
Progress has also been made in land sales. Seven residential lots in The Reserve have been sold, with negotiations underway for an additional 20 lots, which, if finalized, could generate approximately $6 million in revenue. Furthermore, industrial land sales worth about $2.5 million are anticipated to settle once the relevant subdivision plan is registered.
Council assures the community that operations remain unaffected, with no impact on staff roles or the timely payment of bills. However, the current cash position may lead to renewed discussions regarding a Special Rate Variation, a measure recommended by the General Manager since 2013 to ensure long-term financial sustainability.
This situation reflects broader challenges faced by local councils in New South Wales, including cost-shifting and increasing financial pressures. Council remains committed to transparency and proactive management in navigating these financial challenges, aiming to stabilize finances and continue delivering essential services to the community.
UPDATE: 16 Successful Land Sales at The Reserve, Windradyne
16 lots at Council’s Windradyne land development, The Reserve, have today been sold by Ray White Bathurst.
This recent sale, comprised of 4 dual service and 12 single lots, brings the total number of land sales at The Reserve to 23. There are an additional 5 lots currently under negotiation.
Bathurst Mayor, Cr Robert Taylor, noted this is excellent news considering Council’s present financial situation.
“What a brilliant way to commence the week. These 16 land sales by Ray White will introduce $5.06million of income to Council, which will undoubtedly assist our current cash position.
“The settlement of these lots will be staggered, with some settling before 30 June and others to settle in the new financial year. These sales come at a much-needed time and will ensure a guaranteed increase to our finances across the next few months.
“Council is also anticipating the exchange of a $2.5million industrial lot in Kelso which is expected to close in the next fortnight,” said Mayor Taylor.
Three local agents have expressed interest in listing the remaining land at The Reserve, inclusive of Ray White. This comes after Council’s resolution of 11 December 2024 to offer the remainder of The Reserve Windradyne residential lots for sale by interested agents.
