Contrary to the claims made in a letter to the Champion Post on the 25th of September (from Geoff Dunford), Parkes Council is not planning to run deficit budgets for the next 10 years.

The cash reserves of the council are planned to increase over this period.

It is true that the council will be running accounting losses over this period. That is due to an exponential increase in depreciation (a non-cash cost) during this period.

In the past 10 years the council’s depreciation has increased from $11m to $20.5m. Over the next 10 years it is planned to increase to $44m.

This increase is due to the accounting treatment of the council’s fixed assets which is held at fair value and not the historic cost.

In short, the assets get revalued (increased) every year and therefore depreciation increases every year.

This accounting treatment is prescribed by the Office of Local Government and not a choice of council.

Contrary to the allegations the accounting loss does not impact the council’s cash position, and the 10-year plan is cash positive. At the end of the 2024/25 financial year the council’s unrestricted reserves were the highest since 2019.

While it is true that the budget was adopted without any questions, it is important to note that these issues were critically reviewed and discussed in depth at numerous councillor workshops over months leading up to the council meeting.

Parkes Shire Council, 

General Manager Kent Boyd

TIME FOR A RETHINK?

Dear Editor

Concerned about our Parkes waste?

Of course. We all are.

At the present time our red bins' contents are dumped at the town tip.

But did you know that landfills are responsible for the release of toxins and harmful substances into the atmosphere, in particular methane which is 25 times more potent than carbon dioxide and is associated with air and water pollution as well as biodiversity loss and degradation, and that at least 10 per cent of global greenhouse emissions come from the world's landfills?

Doesn't sound like the best thing to do, does it?!

Especially not when we can have a fully closed and totally safe waste to energy plant to use right here in Parkes, which will only send a small amount of water vapour into the air and provide us with a reliable source of power and heat.

Pam Nankivell, Parkes