06 Financial Performance Report - Dec 2021

GENERAL COMMITTEE MEETING AGENDA                                                      17 JANUARY 2022


Council’s performance against key measures of financial sustainability have been calculated as at
December 2021. These indicators enable the reader to assess Council’s success in managing its
budget, cash and debt as well as undertaking sustainable asset management. The table below
contains a snapshot of a number of key measures, with full detail included in the report.

 YTD Measures of Financial Sustainability
                                                     Current
                                     Target                       Actual YTD            Status
                                                     Budget
 Operating Surplus Ratio             0-10%            -0.6%           8.3%             On Track
 Net Financial Liabilities Ratio      <60%            -4.9%          -54.6%         Above Target
 Cash Cover Ratio                  3 months         6.8 months    10.8 months       Above Target
 Asset Sustainability Ratio          > 90%           121.9%          31.6%             On Track


RECOMMENDATION
That Council note the report by the Financial Services Manager (Acting) to the General Committee
Meeting dated 17 January 2022 outlining December 2021 year to date financial performance
against budget, including changes to the financial performance report with the inclusion of key
financial sustainability indicators.

REPORT
Operating Revenue (YTD Benchmark 50.0%)
Council has received 52% ($56.0 million) of its operating revenue budget ($107.2 million).
Commentary on each revenue category is provided below.

 Category             Summary                   Comments
 Rates and Levies     $37.4 million (50%) of    •   Waste utility charges $318k above YTD budget (52%
                      the annual budget of          or $6.7 million of $12.9 million budget earned)
                      $74.6 million has been    •   General rate (net of discounts) $101k below YTD
                      earned                        budget (50% or $28.0 million of $56.3 million budget
                                                    earned)

 Fees and             $5.2 million (72%) of     •   Development assessment fees $692k above YTD
 Charges              the $7.2 million annual       budget (82% or $1.5 million of $1.8 million budget
                      budget has been               earned)
                      earned                    •   Plumbing application fees $396k above YTD budget
                                                    (81% or $841k of $1.0 million budget earned)
                                                •   Building application fees $107k above YTD budget
                                                    (59% or $469k of $791k budget earned)

 Sale of Goods        $6.5 million (63%) of     •   Waste management sale of recoverable materials
 and Services         the $10.2 million             $492k above YTD budget (106% or $911k of $855k
                      budget has been               budget earned).
                      received                  •   Waste management disposal fees $352k above YTD
                                                    budget (54% or $2.0 million of $3.7 million budget
                                                    earned)
                                                •   Holiday Park sales $474k above YTD budget (69.5%
                                                    or $1.9 million of $2.8 million budget earned) – offset
                                                    by higher operating costs
                                                •   Community Facilities (NAC, NLC and The J) $160k
                                                    above YTD budget (55% or $1.4 million of $2.6 million
                                                    budget earned) – offset by higher operating costs