Council slashes $600,000 from its budget

The Derwent Valley Council has slashed $600,000 from its budget, with the monthly financial report noting the council had operated at a deficit over a number of financial years which has put strain on future plans, projects , employee and contractor payments and operational costs. 

Around $600,000 has been slashed from this year's budget with cuts including over $80,000 from roads, bridges and footpath maintenance projects and $30,000 from council buildings, property, parks, reserves and recreational facilities. Other projects like the restoration of the Bushy Park pool, Lawitta storm water drain upgrades and Tynwald Park lighting improvements have also taken a back seat until 2026/27. 

New Derwent Valley Council CEO Wes Young completed a budget review with the audit panel having also previously raised concerns about council spending 

"The audit panel has been concerned about councils financial sustainability and cash position and supports the proposed recommendations and actions to be taken" Mr Young said. 

The motion for budget cuts was passed with Mayor Michelle Dracoulis and councillors Sara Lowe, Matt Hill and Wayne Shoobridge all in favour. 

Councillor Phil Bingley, who voted againt the motion, raised issues with the motion/s stating concerns about future rate hikes for locals and also concerns about taking funding from roads, bridge and footpath projects. 

CEO Wes Young said: "The reason we're in this position is because the council has spent more than we earn and rates are one thing we have to think about as are levels of service in regards to the capital budget." 

 "The correct way to fund the capital budget is through provisions out of restricted funds which have been accrued over time from grants. We have no restricted funds so any capital works we're proposing to fund next year have to be funded either entirely from grants or out of money we earn next year". 

Derwent Valley Mayor Michelle Dracoulis added "Following the provision of the independent advisor’s report last year and the recruitment of a CEO with strong financial and governance expertise, Council is taking responsible steps to strengthen its financial position. In many cases this is about timing works appropriately and ensuring our spending aligns with what can realistically be delivered".

The approved cuts are expected to improve the council's cash balance for the remainder of the 2025/2026 financial year.