At last month's council meeting the 2019/20 draft Operational Plan and Budget for the financial year was adopted by the council.

The Roads to Recovery Program from 2019/20 has been budgeted as $729,219. This is the start of a new five-year program and, as these funds are principally used for gravel resheeting on the shire's local roads.

However Bogan Shire Mayor Ray Donald said this may have to be reduced, if water remains scarce.

"We believe it's a responsible budget, we're not able to do as much as we'd like to do, but each year we've expected to do more with less and so we try and accommodate that, but not borrow any more money," he said.

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"We have a low debt level, at just over $2 million, and realise our road works program may have to be cut back if water remains scarce, but at the moment we are going ahead with our adopted road works program."

In this year's budget general rates have increased by 2.7 per cent, which is an $8 average increase for residential properties and a $77 average increase for farmland properties.

"We understand the difficulty all residents have in paying their rates each year, as the drought continues, which we know affects all families whether they live on properties or are in the town," Cr Donald said.

"However we feel the 2.7 per cent increase we've taken on all rates is needed to keep us operating in a financially viable way."

Councillor Donald said the Bogan Shire council would continue, along with a number of other councils, to request that the state and federal government provide some form of rate relief.

"But if we start cutting our rates we will start to become a council that moves into financial difficulties and has to cut essential operations that we carry out," he said.

The council have budgeted for a small surplus across all funds of $15,000, which Cr Donald said for a $20 million total budget has been able to keep the financial situation in the Bogan Shire operating in the blue.

"We're retaining the necessary funding to provide our main services, which are provision of water, sewage and garbage, our road works program and maintaining our employment levels," he said.