It’s evident the organisation still has work to do to rebuild long-term financial sustainability. That reality has shaped every element of the Draft Budget 2026–2027, along with the Draft Delivery Program and Operational Plan, and Long-Term Financial Plan.

This is not about stretching beyond capacity or promising what cannot be delivered. It is being honest about what is possible, focusing on what matters most, and delivering essential services in a way that is responsible and sustainable.

It also means accepting that not everything can progress at once.

We are now moving more deliberately toward asset renewal and consolidating what we already have. In practical terms, this is about maintaining existing infrastructure properly and prioritising long-term value over expansion.

Alongside day-to-day service delivery, the focus becomes straightforward: doing fewer things well and ensuring what we rely on today remains fit for purpose tomorrow.

For the leadership team, operational efficiency and financial sustainability remain central. A General Fund deficit in the order of $18–$20 million cannot be addressed quickly. It requires disciplined planning, consistent delivery and sustained effort over time. There is no single lever that resolves it.

It also requires ongoing engagement with both the community and our workforce. These decisions don’t sit in isolation; they shape how services are experienced and delivered.

During the draft budget exhibition period, there will be opportunities for the community to hear directly from us. I encourage your participation. These conversations help clarify priorities and strengthen final decisions.

There has also been commentary about a potential Special Rate Variation (SRV). To be clear, there is no SRV proposed for the 2026–2027 financial year.

However, long-term financial planning requires us to consider all options. Council is currently assessing a range of measures to support sustainability and will consult with the community in coming months on a number of matters, including the potential for an SRV from 2027–2028.

Council’s financial picture is improving, but not resolved. The General Fund deficit has reduced from $27 million in 2024/25 to $20.4 million in the current year, and is forecast at $18 million next year. While this direction is positive, structural pressures remain.

Costs continue to rise faster than revenue, particularly asset renewal costs which are increasing at around 7% annually, compared with rate income growth of around 3.9%. This is the core challenge we are managing.

For 2026–2027, ordinary rates are proposed to increase by 3.6%, in line with the rate peg. For an average household, that’s around $1.04 per week, or approximately $3.79 per week when water, wastewater and waste charges are included. These figures reflect the real cost of maintaining services at current standards.

At the same time, investment continues in essential infrastructure, particularly water and sewer systems in growth areas such as Thurgoona–Wirlinga. These are foundational assets that will serve the community for decades.

The draft budget is now on public exhibition, with submissions closing Friday 22 May. I encourage you to take the time to read it, consider it carefully and respond. Your input directly shapes the final outcome.

You can access the budget documents, provide feedback and learn about the upcoming community presentations via the Engaging Albury website.

This is a period of disciplined decision-making. The aim is to protect essential services, invest where it matters most and ensure today’s choices do not limit tomorrow’s options.

Steve McGrath 
Interim CEO, AlburyCity