"So it's very difficult for us," he said. "In particular our business systems [Technology One's Finance One and Proclaim One] - finding skilled people with knowledge of those systems is difficult. The skills base is not there."

Bruggy said there seems to be a general skills shortage in the local government sector, which affects regional areas more because money-wise, they can't compete.

"It's a general thing but has a greater impact on regional areas," he said. "In the past we offered a change of lifestyle but that doesn't cut it anymore because it costs a lot to live here now."

The problem has also extended to security, where the council is behind schedule in implementing its security policies. This comes back to being under-resourced. "That has a direct impact on our ability to be at the level we want to be," Bruggy said.

Rodney Gedda of Computerworld Australia contributed to this report.