Shire chief defends financial position
The Shire of Denmark council accepted the 2015-16 annual report at a special meeting on Tuesday and the report will now be presented at the annual electors’ meeting on March 21.
The overall financial position of the Shire for the 2015-16 year was stated as a net profit of $6.77 million, but this figure takes into account $7.6 million of funding from the State Government for the Denmark East Development Precinct Project.
Without this funding, the Shire would have incurred a loss of $855,000.
Shire chief executive Bill Parker said the loss was mainly because of an increase in depreciation expenses. “This amount was primarily attributed to an increase in depreciation expense of approximately $1.2 million, in line with the revaluation for “fair value” of infrastructure assets,” he said.
The previous year the Shire recorded a $1.1 million profit.
The Shire is at risk of defaulting on the $7.6 million grant as the council remains undeci-ded on the location of a new bridge.
Mr Parker said there had been several highlights in the 2015-16 period.
“(It) proved to be a busy year for the Shire of Denmark, with a focus on initiating and completing a number of capital works projects and strategic planning activities, whilst continuing to perform the Shire’s core functions,” he said. “Highlights of the year under review included the development of the Riverside Club and the Wilderness Ocean Walk Trail, the installation of a new jetty at Berridge Park, improvements to playground facilities at Peaceful Bay, and ablution facilities at Parry Beach.”
Asset expenditure on land and buildings more than doubled from the previous year’s figure to more than $3 million.
Mr Parker said this spending came in under budget.
“The actual spend of $3,194,400 was less than the budget amount of $4,259,400,” he said
“These items included the purchase of Riverbend Lane land, Riverside Club and Morgan Richards Community Centre.”
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