DELAYS in being reimbursed for emergency repairs have contributed to Tenterfield's "unsatisfactory" financial position.
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Interim chief executive Glenn Wilcox said more action needed to be taken to ensure Council didn't slip further into the red.
Since being appointed just three months ago, Mr Wilcox is rebuilding Council's budget from the ground up to try remedy its financial situation.
Council is selling the building from which TEN FM operates, in Manners Street.
It is also negotiating with Tenterfield Childcare to buy that building, also in Manners Street.
Councillors are mulling the sale of Tenterfield Visitor Information Centre, in Rouse Street and will re-open the museum with a staff of volunteers.
A big drain on the budget was a lag in the state government reimbursing more than $3 million spent by Council on emergency road repairs following devastating floods in March, 2022, which has only just been paid.
"We've only had 10 per cent of our disaster applications assessed and approved by the state government since March last year," Tenterfield mayor Petrie said.
"The work cannot commence until we have that funding."
Mr Wilcox, infrastructure director Fiona Keneally and mayor Petrie have just met with NSW Roads Minister Jenny Aitchison and Lismore MP Janelle Saffin to try expedite the process.
"We're grateful for an additional $4 million promised [by the state government] for emergency road repairs, however, with our current financial situation we still need to be very careful and in the meantime, our roads and bridges continue to deteriorate," mayor Petrie said.
On a positive footing, savings made from difficult decisions in the past year were now starting to show, mayor Petrie said.
"We have had a 25 per cent reduction in staff numbers over the past 18 months to two years and there's a moratorium on replacing staff that leave."
Councillors will discussed an updated financial situation at their December meeting next week.