2018-07-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       16 JULY 2018


RECOMMENDATION
That Council note the report by the Manager Financial Services to the Ordinary Meeting dated 16
July 2018 providing results of interim 2017/18 financial performance against budget.


REPORT
Operating Position
Council’s Financial Sustainability Policy requires that an operating surplus be maintained each
year over the life of Council’s ten-year financial plan. An operating surplus is achieved when
operating revenues are greater than operating expenses. An operating surplus means that the
community’s financial capital does not degrade and that sufficient funds are being collected to
fund both business as usual operations and existing asset maintenance and replacement.

Council adopts a conservative approach to forecasting its budget to ensure that any unexpected
financial expenditure shocks during the year can be absorbed. This approach is evident with the
interim operating surplus of $5.8 million compared to current budget of $2k. This surplus will
likely reduce once year-end expenditure accruals are recognised.

Operating Revenue (Benchmark 100%)
Council has received 103% ($96.1 million) of its operating revenue budget ($93.2 million).
Commentary on each revenue category is provided below.

Category        Summary                        Comments
Rates and       $64.0 million (100%) of the       Rates and levies achieved budget
Levies          annual budget of $64.0
                million has been earned
Fees and        $6.1 million (113%) of the        Development related fees $234k above budget
Charges         $5.4 million annual budget          (118% or $1.5m of $1.3m budget earned)
                has been earned                   Building and plumbing application and search fees
                                                    $162k above budget (111% or $1.6m of $1.5m
                                                    budget earned)
                                                  Local laws fees $135k above budget (114% or
                                                    $1.1m of $981k budget earned)
                                                  Community land use applications and permits $84k
                                                    above budget (123% or $448k of $364k budget
                                                    earned)
                                                  Public health licences and infringements $22k
                                                    above budget (107% or $350k of $328k budget
                                                    earned)
                                                  Property related search and change of ownership
                                                    fees $19k above budget (105% or $364k of $344
                                                    budget earned)
Sale of Goods   $9.3 million (106%) of the        Landfill disposal charges $259k above budget
and Services    $8.8 million budget has been        (109% or $3.1m of $2.8m budget earned)
                received                          Noosa Aquatic Centre $97k above budget (106%
                                                    or $1.8m of $1.7m budget earned)
                                                  The J $57k above budget (115% or $432k of the
                                                    $375k budget earned)
                                                  Noosa Leisure Centre $37k above budget (107%
                                                    or $564k of the $527k budget earned)
                                                  Holiday parks $59k above budget (102% or $3.2m
                                                    of $3.2m budget earned)


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