Parkes Shire Council
Budget & finances

Budget & finances

Comparing raw dollar totals between councils isn't very useful — bigger councils naturally have bigger numbers. What does tell you about a council's financial health are normalised indicators: the standard ratios that every NSW council reports against the Office of Local Government's benchmarks, plus per-property figures you can compare to the NSW average. The ratios below are from the NSW Government's 'Your Council' / OLG time-series data for 2023–24.

New to these terms? Read them in plain English
Operating performance ratio
Whether everyday income covers everyday running costs.
Own-source operating revenue ratio
How much of the council's income it raises itself vs. grants from other governments.
Unrestricted current ratio
Whether the council has enough spare cash to pay its short-term bills.
Debt service cover ratio
How comfortably operating cash covers the council's loan repayments.
Rates & annual charges outstanding ratio
The share of rates bills that haven't been paid by year-end.
Cash expense cover ratio
How many months the council could keep paying bills if income stopped.
Infrastructure backlog ratio
The cost of fixing run-down assets, as a share of what those assets are worth.
Asset maintenance ratio
Whether the council actually spends what it should on maintaining its assets.
Building & infrastructure renewals ratio
Whether assets are being renewed as fast as they wear out.
Operating result (surplus / deficit)
Income minus expenses for the year's normal operations.
OLG benchmark
The healthy target set by the state for each financial ratio.
Average residential rate
The typical yearly general-rates bill for a home in the area.
Office of Local Government (OLG)
The NSW body overseeing councils; publishes the financial data.
See the full explainer, with formulas →
$1,146 / yearAbout 5% below the NSW council average of ~$1,203. In 2023–24 it was $1,073 (NSW ~$1,140). A separate domestic waste charge applies. (OLG 'Your Council' data.)
Operating surplus — performance ratio +6.2%Above the >0% benchmark.
Liquidity & cash
Strong liquidity (3.52×), 9.3 months cash; debt service cover 15.37× (passes)Unrestricted current ratio, cash cover and debt service cover all comfortably above benchmark.
Infrastructure
Backlog 1.8% (passes); renewals 168.9% (passes); maintenance 198.2% (passes)All three infrastructure ratios pass the benchmark in 2023–24.
Self-funding
Own-source revenue 52.0% (misses)Below the >60% benchmark — as a large rural council, Parkes relies more on grants than a metropolitan council would.
Rates & charges outstanding (2023–24)
10.9% (just misses)Marginally above the <10% benchmark that applies to large rural councils.
Average domestic waste charge (2024–25)
$469 / yearA separate annual charge that funds the bin service (2023–24: $430).
Indicator (2023–24)ParkesMeets?
6.2%> 0%Yes
52.0%> 60%No
3.52×> 1.5×Yes
15.37×> 2×Yes
Rates & charges outstanding (uncollected rates)10.9%< 10%No
9.3 months> 3 monthsYes
1.8%< 2%Yes
198.2%> 100%Yes
168.9%> 100%Yes

Parkes Shire Council's financial-health indicators, 2023–24, against the NSW Office of Local Government benchmarks. 'Meets?' simply states whether the figure is on the benchmark side of the line. Source: NSW Government 'Your Council' / OLG time-series data, 2023–24.

These ratios are the standard, size-independent way to read a council's finances, which is why we use them instead of raw dollar totals. Parkes met 7 of the 9 benchmarks in 2023–24 — the two misses were own-source revenue (52.0% against a >60% benchmark) and rates & charges outstanding (10.9%, just over the <10% line). The OLG classifies Parkes as a large rural council, so it is benchmarked at under 10% for rates outstanding; metropolitan councils are benchmarked at under 5%. The OLG's 2024–25 time-series shows the infrastructure ratios moving: backlog 2.6%, maintenance 104.0%, renewals 101.6%. We present the numbers and their benchmarks; whether that's good value is for you to judge from the sources below.

Sources — check it yourself

Figures are current as at the dates shown and may change — always confirm with the linked source. See the notice at the bottom of the page for full details and how to report a correction.