Uralla Shire Council has voted to move up to $500,000 of its general cash into the water
fund, because the officers' report says the water business is expected to have insufficient
available cash reserves to meet forecast commitments
. The council's own audited accounts
show how it got there: the water business went from an operating surplus of $481,000 in
2023-24 to a deficit of $485,000 in 2024-25, and the cash held for it fell by $798,000 in that
year.
What the council decided
The report to the 22 September meeting puts the cause plainly: the water supply network
has experienced significant underinvestment over an extended period
, and ageing mains
are failing more often, driving emergency repairs. It says the water fund does not have
sufficient repayment capacity to support additional debt
, so borrowing is not an option
now. The council also paid upfront for its Integrated Water Cycle Management Strategy and is
waiting on about $500,000 in grant reimbursement, with a further milestone payment of about
$200,000 expected this financial year.
The fix is a transfer from the general fund, and the report addresses the obvious legal
question. Section 409 of the Local Government Act keeps money raised for a purpose, such as
water charges, for that purpose. The report says the allocation does not involve the use of
restricted Water Fund or Sewer Fund monies for another purpose
: it runs the other way, from
unrestricted general money into water.
What the audited accounts show
The report gives no balance for the water fund. The council's audited financial statements do. The externally restricted cash held for the water fund, at each 30 June, was:
| Year | Water fund |
|---|---|
| 2021 | 2,610 |
| 2022 | 2,317 |
| 2023 | 2,336 |
| 2024 | 2,776 |
| 2025 | 1,978 |
The water business's own income statement for 2024-25 shows why the last year turned. Total expenses rose from $1.82 million to $2.64 million. Within that, employee costs went from $459,000 to $998,000 and materials and services from $754,000 to $1.02 million. Income from access and user charges rose by only $63,000, and operating grants fell from $565,000 to $340,000.
What ratepayers pay for it
Water charges for 2026-27 rose by about 5%: the annual access charge from $474.25 to $497.95 in both Uralla and Bundarra, and usage from $4.74 to $4.98 a kilolitre. The council's revenue statement estimates the two together will raise about $1.75 million this year.
Our arithmetic, for scale: in 2024-25 the water business spent $2.02 million on staff and on materials and services alone, before depreciation. The charges budgeted for this year would not cover that, even before counting the renewal of the ageing mains the report describes.
Our view
The transfer is a sensible stopgap, and the report is candid about why it is needed. But a report titled a statement of water fund balances that states no balance asks councillors to approve a rescue without the number it rescues. The council has promised a further report through its next quarterly budget review, identifying where the money comes from and what else the water business needs. That report should open with the current water fund balance, the cost of the priority works, and what charges would have to be to pay for them.
What to watch
The next quarterly budget review, which the council resolved should identify the source of the $500,000 and options for further support, and the 2025-26 audited accounts, which will show the water fund balance at 30 June 2026.
Sources
- Uralla Shire Council, Business paper, Ordinary Council Meeting, 22 September 2026 (PDF, read 3 October 2026), item 13.7: the water fund's position and its causes, the debt capacity statement, the forward-funded strategy and expected grants, the section 409 statement and the $500,000 recommendation.
- Uralla Shire Council, Minutes, Ordinary Council Meeting, 22 September 2026 (PDF, read 3 October 2026): resolution 184.09/26 approving the allocation and the further report.
- Uralla Shire Council, Operational Plan 2026-2027, Part 4: Statement of Revenue (PDF, read 3 October 2026): water access and usage charges for 2025-26 and 2026-27 and the estimated revenue.
- Uralla Shire Council, Financial statements for the year ended 30 June 2025 (PDF, audited, read 3 October 2026): water fund restricted cash at 30 June 2025, and the income statement of the water supply business activity.
- Uralla Shire Council, Financial statements for the year ended 30 June 2024 (PDF, audited, read 3 October 2026): water fund restricted cash at 30 June 2024.
- Uralla Shire Council, Financial statements for the year ended 30 June 2023 (PDF, audited, read 3 October 2026): water fund restricted cash at 30 June 2023.
- Uralla Shire Council, Financial statements for the year ended 30 June 2022 (PDF, audited, read 3 October 2026): water fund restricted cash at 30 June 2022, and the 2021 comparative.
How we did this
The table takes the “Water fund” line from the external restrictions note in each year's audited statements. Each figure from 2022 to 2025 is the current-year figure in that year's own statements; 2021 is the comparative column in the 2022 statements. Each comparative we could check matches the prior year's own figure (2,776, 2,336 and 2,317). The water business figures are from the 2024-25 income statement of the water supply business activity. Two figures are our own arithmetic: the $63,000 rise in access and user charges, and the $2.02 million combined employee and materials costs. The 2026-27 revenue is the council's estimate. The 2025-26 accounts are not yet published, so the table stops at 30 June 2025. We did not contact the council for this piece. The “our view” paragraph is opinion based on the documents quoted.