New South Wales Local Government Minister Paul Toole has some stern words in store after reading the report cards of several regional councils.

Comparative data for all NSW Councils was published this week (available here, in PDF form), and the Local Government Minister says it shows a number of Mid North Coast Councils are having trouble handling their finances.

He has questioned the management performance of individual Councils, and a broader trend for expenditure to outweigh revenue in many centres.

Bellingen, Clarence Valley, Coffs Harbour, Gloucester, Greater Taree, Kempsey and Nambucca Councils reported 'Operating Performance Ratios' way beyond the accepted level, revealing that revenue paled against expenditure.

Mr Toole said most other Councils were able to keep their books balanced, and the aforementioned might take some lessons from their counterparts.

Speaking to the ABC, he said most Councils were doing admirably, but a few needed work.

“There are councils who have made considerable changes in making sure that they deliver efficient services to their communities,” Mr Toole said.

“But there are also Councils who can do better, and we need Councils to also look at improving the ways they deliver services back to their communities.

“What we need to do is to look at ways in which Councils can become more innovative.

“Look at ways of ensuring they are building the infrastructure that communities need, but also making sure that they deliver efficient services back out to their communities.

“Communities deserve and need to know that there are certain services they desire, that should be delivered by Councils.”