Cobar Shire Council
Budget & finances

Budget & finances

Comparing raw dollar totals between councils isn't very useful — bigger councils naturally have bigger numbers. What does tell you about a council's financial health are normalised indicators: the standard ratios that every NSW council reports against the Office of Local Government's benchmarks, plus per-property figures you can compare to the NSW average. The ratios below are from the NSW Government's 'Your Council' / OLG time-series data for 2023-24. (The OLG classifies Cobar as a Large Rural council, so it is benchmarked at under 10% for rates outstanding; metropolitan councils are held to under 5%.) Cobar's income mix is unusual for a small shire: in the council's own Long Term Financial Plan, rates and annual charges are about $9.6M of a projected $50.5M income in 2026-27, with user charges and fees the largest single line.

New to these terms? Read them in plain English
Operating performance ratio
Whether everyday income covers everyday running costs.
Own-source operating revenue ratio
How much of the council's income it raises itself vs. grants from other governments.
Unrestricted current ratio
Whether the council has enough spare cash to pay its short-term bills.
Debt service cover ratio
How comfortably operating cash covers the council's loan repayments.
Rates & annual charges outstanding ratio
The share of rates bills that haven't been paid by year-end.
Cash expense cover ratio
How many months the council could keep paying bills if income stopped.
Infrastructure backlog ratio
The cost of fixing run-down assets, as a share of what those assets are worth.
Asset maintenance ratio
Whether the council actually spends what it should on maintaining its assets.
Building & infrastructure renewals ratio
Whether assets are being renewed as fast as they wear out.
Operating result (surplus / deficit)
Income minus expenses for the year's normal operations.
OLG benchmark
The healthy target set by the state for each financial ratio.
Average residential rate
The typical yearly general-rates bill for a home in the area.
Office of Local Government (OLG)
The NSW body overseeing councils; publishes the financial data.
See the full explainer, with formulas →

The numbers

$2,302 / yearAbout 91% above the NSW council average of ~$1,203 (2023-24 was $2,213, vs NSW ~$1,140). A separate domestic waste charge applies (OLG-basis average ~$383 in 2024-25; the council's own adopted charge for an occupied Cobar assessment is $340 in 2026-27). Average residential rates reflect land values and each council's rating structure, not service levels. (OLG time-series data.)
Operating performance ratio −3.4%Below the >0% benchmark — an operating deficit for the year.
Liquidity & cash
Unrestricted current ratio 2.61× and debt service cover 19.71× both pass; 5.6 months cash cover passesAll three liquidity and debt measures are on the benchmark side of the line for 2023-24.
Self-funding
Own-source revenue 44.7% (misses)Below the >60% benchmark, meaning a larger share of income comes from grants and contributions than the benchmark contemplates.
Infrastructure
Backlog 6.3% and renewals 23.6% both miss (2023-24); asset maintenance 101.9% passesThe OLG's 2024-25 file shows the backlog easing to 5.3% and asset maintenance at 100.1%. Its 2024-25 renewals cell reads 0.0%, which is an unreported/not-collected cell rather than a real figure, so it is not published here — the 2023-24 value of 23.6% is what the table shows.
14.3% (misses)Above the under-10% benchmark that applies to rural councils — that is, a higher share of rates and annual charges was still uncollected at year end than the benchmark allows.
Indicator (2023-24)CobarMeets?
−3.4%> 0%No
44.7%> 60%No
2.61×> 1.5×Yes
19.71×> 2×Yes
14.3%< 10%No
5.6 months> 3 monthsYes
6.3%< 2%No
101.9%> 100%Yes
23.6%> 100%No

Cobar's financial-health indicators, 2023-24, against the NSW Office of Local Government benchmarks. 'Meets?' simply states whether the figure is on the benchmark side of the line. Source: NSW Government 'Your Council' / OLG time-series data, 2023-24.

These ratios are the standard, size-independent way to read a council's finances, which is why we use them instead of raw dollar totals. Cobar met 4 of the 9 benchmarks in 2023-24: the three liquidity and debt measures plus asset maintenance pass; operating performance, own-source revenue, rates outstanding, infrastructure backlog and building and infrastructure renewals miss. The council's own Long Term Financial Plan 2026-2036, adopted 28 May 2026, sets out its position on the renewals question directly — it projects a consolidated operating deficit of $1.240M in 2026-27 turning to small surpluses from 2027-28, a capital program of $10.772M in 2026-27, cash balances rising across the decade, and states that the plan takes a "cautious and staged approach to capital renewal" and that the level of cash held means Council is "well positioned from a cash perspective to increase investment in asset renewal". It also assumes a rural cost differential above CPI for freight, labour and limited supplier competition. We present the numbers, the benchmarks and the council's own document; whether that adds up to good value is for you to judge from the sources below.

Sources — check it yourself

Figures are current as at the dates shown and may change — always confirm with the linked source. See the notice at the bottom of the page for full details and how to report a correction.