Small rural councils in NSW are grappling with a perfect storm of financial challenges. Limited funding, rising costs, and high inflation are squeezing budgets, forcing councils to make tough decisions.

Hay Shire Council is taking proactive steps to address these issues. By reviewing fees and charges, the council aims to ensure that those who use services contribute to their cost. Additionally, a thorough review of services is underway to identify potential efficiencies and streamline operations.

"In addition to fees, council is conducting an in-depth review of their services to identify potential efficiencies. This process often involves tough decisions, such as evaluating which services are core to council responsibilities and which could be scaled back or delivered differently. The goal is to strike a balance between meeting community needs and operating within financial limits." Mayor for Hay Shire Council, Carol Oataway says.

The council is exploring a "user pays" model, where the cost of services is borne by those who directly benefit from them. While this approach may not be universally popular, it can help alleviate the financial burden on ratepayers.

The financial struggles of rural councils highlight a broader issue of funding inequity between urban and regional areas. To ensure the long-term sustainability of these essential services, increased state and federal support is crucial.

"For now, Hay Shire Council remains focused on taking every step possible to avoid imposing a Special Rate Variation on its ratepayers and maintaining the vital services our community relies on."