Hilltops Council has placed its draft 2026–27 budget on public exhibition, with councillors warning rising costs and reliance on external funding are placing increasing pressure on council’s long-term financial sustainability.

The draft budget forecasts an operating deficit of approximately $15.3 million before capital grants and contributions, reducing to a modest surplus of about $188,000 once external funding is applied.

Director Corporate and Community, Sarah Karaitiana, said the figures showed council remains heavily reliant on external funding.

“These results highlight council’s continued reliance on capital grants to deliver critical infrastructure and maintain our operations,” she said.

The draft report points to rising wages, fuel costs and materials as key drivers behind the budget pressure, along with increasing depreciation on council assets.

Mayor Brian Ingram said council could not continue doing what it is doing.

“The days of having the cake and eating it — the plate’s empty,” he said.

The proposed budget includes a $33 million capital works program, with the largest investments in roads, water and sewer infrastructure.

Rates are set to increase by 3.2 per cent in line with the state-imposed cap set by the NSW Government, while some fees and charges are proposed to rise by around 10.5 per cent, depending on the service.

Not all councillors supported the draft report, with Deputy Mayor Tony Flanery voting against it and raising concerns about the accuracy of the projections and future cost pressures.

“I don’t think the numbers accurately represent where we’re going to be at,” he said.

He pointed to rising fuel and construction costs, warning these could lead to further budget blowouts if not addressed.

Other councillors acknowledged the financial challenges but supported putting the document out for community feedback.

“While I would prefer we were in a better financial situation, I appreciate that this budget has been done based on conservative estimates for income and trying to be realistic with expenses,” Councillor Mary Dodd said.

The meeting also heard that council may need to consider difficult decisions in the future, including reducing services or seeking additional revenue if financial pressures continue.

“I don’t think our community can afford any more additional rate rises,” the Mayor said.

“If we don’t increase revenue, the flip side is the community needs to be prepared for a reduction in some levels of service,” he said.

Councillor Alison Foreman pointed to recent projects, including bridge works and ongoing stormwater upgrades, saying council had continued to deliver key infrastructure despite the financial challenges.

“This is the community’s opportunity to take a look and let us know what they think,” she said, encouraging residents to review the draft documents including the proposed fees and charges, and make a submission during the exhibition period.

Council said work was already underway to improve its financial position, including reviewing capital projects, reducing reliance on contractors and finding efficiencies across operations, with further detail expected in a report next month.

The draft budget and related documents — including the Operational Plan, Long Term Financial Plan, Fees and Charges and Revenue Policy — are now on public exhibition for 28 days. They can be viewed online via Council’s “Have Your Say” page or in person at council offices and libraries in Boorowa, Harden and Young. Written submissions are open to the public and will be accepted until 12pm on Thursday, 21 May 2026..

Council is required to adopt its final budget before the start of the new financial year on July 1.