2022-02-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                      14 FEBRUARY 2022


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%           39.0%                On Track
 Net Financial Liabilities Ratio    <60%            -12.7%           -65.4%             Above Target
 Cash Cover Ratio                  3 months        8.8 months     11.2 months           Above Target
 Asset Sustainability Ratio         > 90%           130.1%           37.3%                On Track

RECOMMENDATION
That Council note the report by the Financial Services Manager (Acting) to the General Committee
Meeting dated 14 February 2022 outlining January 2022 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 58.3%)
Council has received 89% ($97.1 million) of its operating revenue budget ($109.6 million).
Commentary on each revenue category is provided below.

 Category             Summary                  Comments
 Rates and            $75.9 million (102%)     •   Waste utility charges $444k above YTD budget (102.5%
 Levies               of the annual budget         or $13.6 million of $13.2 million annual budget earned)
                      of $74.8 million has     •   General rate (net of discounts) $179k below YTD budget
                      been earned                  (101.4% or $57.0 million of $56.2 million annual budget
                                                   earned)
 Fees and             $5.7 million (70%) of    •   Development assessment fees $99k above YTD budget
 Charges              the   $8.2     million       (67.4% or $1.6 million of $2.4 million annual budget
                      annual budget has            earned)
                      been earned              •   Plumbing application fees $105k above YTD budget
                                                   (78% or $1.0 million of $1.3 million annual budget
                                                   earned)
                                               •   Revenue Services fees for change of ownership and
                                                   searches $43k above YTD budget (74.1% or $314k of
                                                   $423k annual budget earned)

 Sale of Goods        $7.4 million (67%) of    •   Holiday Park sales $423k above YTD budget (74% or
 and Services         the   $11.1    million       $2.3 million of $3.1 million annual budget earned) –
                      annual budget has            Positive revenue variances that hold through the
                      been received                financial year will be offset in part by additional variable
                                                   operating costs
                                               •   Waste management sale of recoverable materials $309k
                                                   above YTD budget (93% or $1.0 million of $1.1 million
                                                   annual budget earned)
 Interest             $399k (60%) of the       •   Interest revenues on cash invested will need ongoing
 Received             $670k annual budget          monitoring to ensure returns on surplus funds are
                      has been earned              maximised as investment rates begin to increase.
 Other Revenue        $1.8m (58%) of the       •   Other revenue is in line with budget expectations at this
                      $3.1 million annual          stage



                                                                                              Page 58 of 99