The result was $3 million better than estimates but down on the 2013 result of a $12.6 million surplus. 

Council operates General, Water and Sewer Funds and the final position is a consolidation of those three enterprises.

The figures were highlighted at council’s November meeting with the presentation of its annual report.

Auditor John O’Malley from Intentus described the results as “strong”.

Key to this was additional rate revenue from a special rate variation expected to bring in an extra $9 million over four years.

The variation, approved in 2013, means Parkes ratepayers face annual 13 per cent increases (about 10 per cent above the standard rate peg).

“The $800,000 increase in revenue from the special rates variation has helped things,” Mr O’Malley said.

In his annual report message, general manager Kent Boyd described this as “crucial” to protect council’s financial sustainability.

“Projects have started to flow from the special rate variation, most of which are directed towards improving existing assets such as upgrading the Middle Trundle Road for road train access,” he said.

Mayor Ken Keith said it was important to realise the surplus was not spare cash.

“Council has been making provision for the major works we are about to undertake in the next couple of years,” he said.

Those projects include a new $20 million sewage treatment plant and a $30 million water treatment plant.

Reporting further to councillors on the annual financial report, Mr O’Malley said there was nothing stand-out in council’s expenditure for the year.

“Employee costs are increasing a little but so are employee numbers, so that follows,” he said.

“Borrowing costs are up over the past few years - mainly the pool and airport redevelopment.”

Mr O’Malley said council’s debt cover ratio - an indicator of its capacity to repay the loans - was still considerably better than the state benchmark.

He did highlight that council only had one per cent of its funds unrestricted and available for immediate use.

“Eighty-five per cent of your funds are externally restricted and 14 per cent internally restricted,” he said.

“As a rule of thumb, you want four to six weeks of operating costs available.”

Council received total revenue of $41,204,000 - down from $45,533,000 in 2013.

rates and annual charges increased to $14.147 million from $12.863 million but user charges and fees were down to $8.234 million from $9.499 million.

Council’s annual report and annual financial statements are available at parkes.nsw.gov.auand have been submitted to the Department of Local Government in accordance with the local government legislation requirements.