The statements show that council's cash reserves have been depleted through years of losses prior to capital grants.

A council spokesperson said capital grants are one off contributions allocated by state and federal governments to assist in the provision of community assets such as roads, sporting facilities and public amenities.

"The rates, fees and charges paid by residents to ensure we can finance our day-to-day operations are not covering what it costs to run those operations," the spokesperson said.

"The draft Financial Statement results for 2020/21 showed a council operational result before capital grants improvement from a loss of $10.6m in 2020 to a loss of $5.6m in 2021. This is known as a deficit.

"This was primarily due to an increase in income of $2m and a reduction in expenditure of $3.

"In addition, the capitalisation of $4.9m of wages for capital works carried out assisted with the delivery of infrastructure programs.

Council's borrowings (debt) as at June 30, 2021 was $17.8m.

"Council's borrowings are for infrastructure renewals including roads, buildings, sporting facilities, libraries, water and sewer mains, and sewage treatment works," the spokesperson said.

"We acknowledge the challenges we face to become financially sustainable and by working together we can meet these challenges."

READ MORE:

Disaster assistance extended for Hilltops residents following flooding

New Murrumbarrah-Harden Health Service officially opened

Two more arrested on drugs, weapons charges

Send a letter to the editor by filling out the online form below.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: