There will be plenty of eyes on Treasurer Wayne Swan on Tuesday night when the federal budget is handed down, but Kiama's councillors will instead be focused on a budget of a different kind.
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The council's draft $61 million budget will be presented at an extraordinary meeting, also on Tuesday night.
The document has been prepared in a climate of uncertainty as the NSW government continues its review into the future of the state's 152 councils.
With talk of council mergers and resource sharing whirling about, Kiama Mayor Brian Petschler said that his council had made an effort to get as close to a balanced budget as possible.
"My view is that financial sustainability will be a key measure when decisions are made further down the track," Cr Petschler said.
"As it stands right now, things for Kiama are pretty good. We have the ability to raise funds if needed and our infrastructure is in pretty good nick when compared with some councils."
Kiama ratepayers face a rate rise of 3.4 per cent next financial year.
Council general manager Michael Forsyth said that this year, the budget had a strong emphasis on capital renewal.
The capital works and renewal program, and operational works programs, total $4.1 million.
Mr Forsyth also said that a review of services and staff needed to be ongoing as budgetary pressures grew and he warned "hard decisions will need to be made by council".
Mr Forsyth added that the council and the community had been benefiting from income from land development programs.
"This is a finite resource," he said.
"It is important that profit from land development is effectively managed and kept in reserve for necessary capital renewal of existing assets and should not be used for operational purposes."
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