The waste depot is to run at a loss after councillors passed a rescission motion at Thursday’s meeting.
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After 28 objections to the resolution “that Council charge all farmland ratepayers half Waste Depot Fee and all farmland ratepayers be issued with 12 vouchers” which was passed at the May meeting, three councillors signed a recession motion for the June meeting.
As the motion was passed council had to to decide whether to increase depot charges from $316 to $359 for 2017/2018 or to operate the waste fund at a loss (using rates and operating grants to subsidise it) to the extent of $89,597 in 2017/2018.
According to general manager Derek Francis, the council resolved to run the waste fund at a loss.
“The rescission motion was passed, council resolved to operate the waste fund at a loss for the 2017/2018 financial year and to undertake a detailed analysis on its operations to determine whether savings are possible given EPA (environmental protection authority) requirements or other income streams can be identified,” he told The Nyngan Observer.
Finance Manager Stephanie Waterhouse reported although running the waste depot at a loss this financial year was sustainable, it would not be feasible forever.
Story continues after poll
“Whilst this (running at a loss) is possible in the 2017/2018 given the projected surplus of $122,300 in the general fund, this is not sustainable in the long term,” she said in her report to the council.
“As costs will increase and the extent of the subsidisation will erode Council’s ability to provide other services/maintenance and capital works out of the general fund.”
Mrs Waterhouse said the waste fund should be run to break even so supplementing the fund is not needed.
“Income from the fund is derived mainly from two sources kerbside collection in Nyngan ($311 in 2016/2017) and waste management depot charges ($287 in 2016/2017),” she said in her report.
“Many of the writers of submissions mention the kerbside collection service, not being aware this is a separate charge to the depot charge and Nyngan ratepayers and liable for both charges.”