Council's general fund, which covers much of the day to day expenses and running of council, is predicted to have a deficit of $5.16m (net operating result before capital grants and contributions) by the end of financial year 2021/22.

Cr Fitzpatrick said the revenue raised through rates and charges was not enough to cover the costs of operations.

"This year alone, while the small rate peg increase of two per cent will generate around $500,000 more income for council, our insurances alone have increased by around $600,000," Cr Fitzpatrick said.

"We're also still recovering from the effects of the Black Summer bushfires and COVID-19, which have placed additional strain on our finances.

"We have been working through a financial improvement program for many years now, and while we have made significant improvements, more needs to be done," Cr Fitzpatrick said.

Over the past two years council's finances have come under question from residents and some councillors but in the last year a lot has been done to correct past issues and give a more accurate account of the financial situation.

It is clear from the draft plan that a lot of attention has been paid to reducing operating costs in many areas although this may bring with it issues around services.

Cr Fitzpatrick warned that to reach a consolidated financial position, council had to cut back on spending, and look at our service levels and capital programs but he promised that council would continue to look at doing business in a more cost-effective way.

In that regard council is hoping to do better with the costs of running its Civic Centre by increasing income and lowering operating costs; it is also planning to lower operating costs at the Regional Learning Centre.

Although some councillors have spoken strongly against borrowing money, the budget shows that 2021/22 will see a new loan of $1.677m for the start of redevelopment costs for the Regional Gallery.

There will also be a $2.4m loan for the airport shortfall. This will be added to the previously resolved $2m loan for the airport.

The draft plan shows an $85m capital works program to improve community assets such as community halls, upgrade sporting and recreational facilities, and upgrade the water and sewer network. Much of this is provided through grants that can only be used for the given purpose.

In recreation facilities these include detailed planning, tendering and construction of the Bermagui outdoor courts, Eden inclusive playspace, Eden skate park, Bega Sporting Complex, Pambula Sporting Complex, Bermagui Harbour boat ramp renewal and Pambula Lake (Broadwater) boat ramp renewal.

Swimming pools will come under renewed scrutiny while council investigates funding possibilities for the Bega pool.

There is $611,700 for work on shared paths at Wyndham, Apex Park, Pambula Beach and Eden.

Of council's income in the financial year 2021/22, 36 per cent comes from rates and annual charges, 27 per cent from grants and contributions for capital works and 21 per cent from grants and contributions for operating purposes.

Of its operating expenditure 37 per cent is employee costs, 32 per cent material and contracts and 23 per cent depreciation and amortisation.

Everyone is urged to take a look at the draft Operational Plan and Budget 2021-2022 and give their feedback via the Have Your Say page on council's website. Comments are open until COB June 8. Council will consider submissions and adoption of the Operational Plan 2021-2022 and budget by June 30.