Shire of Derby-West Kimberley passes new long-term financial plan after ongoing struggles

After years of financial struggles, the Shire of Derby-West Kimberley has put forward a new long-term financial plan to stabilise its budget.

Shire of Derby-West Kimberley commissioner Jeff Gooding said he moved and carried the motion to adopt the plan with pride.

“You’re not supposed to move these things with some pride, but I do. I move this with some pride and declare it carried . . . I hope that it’s a great starting point for a new council,” he said.

Mr Gooding said the shire faced a tough operating environment with limited revenue-raising capacity, with rates contributing only about 40 per cent of overall income.

“The shire’s capacity to service debt is limited, so prudent debt financing and reducing borrowings over the long term is vital,” he said.

The plan also sets out how the council will prepare for major upcoming projects, such as landfill upgrades and core infrastructure works, while positioning itself as a stronger partner for potential grant funding.

Mr Gooding stressed the importance of updating the plan regularly as costs rise and circumstances change.

“The shire is in a tight financial position but, with sensible decisions, it’s manageable,” he said.

“Close financial monitoring and early warning will be key to keeping us on track.”

Derby’s finances are under strain from flood recovery debt, rising costs and overdue bills, with the shire heavily reliant on State and Federal grants to keep infrastructure projects alive.

The shire has a $3.5 million loan for flood damage, which it plans to restructure in 2025-26 with a 10-year repayment term.

It comes after the shire decided to begin formal negotiations to hand back control of Derby Port to the Kimberley Ports Authority, citing unsustainable costs and mounting liabilities in July.

Pointing to more than $1.2m in losses over 14 years, Mr Gooding said the port had become an unsustainable drain on the shire’s budget.

Deteriorating finances were also the catalyst behind five councillors resigning in early 2025 resulting in Mr Gooding’s appointment as the Shire of Derby-West Kimberley commissioner.