Tamworth council has implemented a hiring freeze to slash 20 jobs in order to make up for a $4 million shortfall caused by the COVID-19 crisis.
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Tamworth Regional Council "immediately" froze all hiring at the beginning of the crisis, according to General Manager Paul Bennett.
But the worst financial news could be yet to come, with the long-term financial impact of the virus and economic downturn yet to be seen, he said.
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"I think our financial situation is very, very healthy and again that's because we are very proactive in addressing any budget deficits we will have," he said.
But in the long-term "the changes that need to be made will be made."
"There will be a discussion with the community about service levels in certain parts of the organisation and the community has to understand that we can only spend the revenues we receive.
"Those hard conversations around service levels are better addressed when we know how long the pandemic is going to last."
Nonetheless council's budget and operational plan, released to the public on Monday, includes a "large" capital works program, according to Mayor Col Murray. Nearly half the TRC budget will be spent on infrastructure.
The $90.713 million capital works spend includes $21 million to develop the new Tamworth Global Gateway Park in Westdale; including $3 million to start the Taminda Ring Road project; and $8m for a new country road roundabout; plus $4.8 million to "expand airport services and the aviation industry".
TRC will also spend $27.6 million maintaining roads and bridges.
Cr Murray said council is "mindful of its role" to stimulate the economy after years of drought, bushfires and pandemic. The capital works program will keep contractors and suppliers in the construction industry working, he said.
Mr Bennett revealed the council had implemented a job freeze "essentially straight away" at the beginning of the COVID-19 crisis.
TRC has suffered a $1.2 million hit to the budget every month of the lockdown, he said, confirming a $4 million shortfall.
In the short term, council slashed 20 positions, by not replacing staff.
But in the long run TRC has started a formal review of its organisational structure to reduce management overhead, he said.
He ruled out redundancies, but said TRC staff will be redeployed around the organisation.
Mr Bennett also flagged they could consider quick "patch" jobs on rural roads in order to save money on scheduled maintenance.
"That has a significant impact on the short term, but we still then have to change our asset management plans to go back and address those issues in the future," he said.
Cr Murray said the full financial impact of the coronavirus crisis isn't yet clear and flagged a potential update to the $195.3 million budget. It was largely written before the COVID-19 crisis began, he said.
The budget will be on public exhibition until June 3 and then go to a council meeting later that month.