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How does a local council get into that situation in the first place?
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Very easily, one big expense can wipe out years of careful budgeting.
In this case it looks like a single needed infrastructure repair did the job.
Plus of course a reliance on sales and property as a means of revenue meaning an economic downturn and property crash your revenue goes.
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surely the state government would monitor and regulate that and take action as seen necessary and/or fit to rectify this immediately.
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I never thought of you being in favour of more and bigger government
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Pfft, a town that small only needs two cops.
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With 60 crimes per year does it even need 2?