2020-10-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       12 OCTOBER 2020


   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
                                         Target          Current     Actual YTD
                                                         Budget
    Operating Surplus Ratio            0-10%             -2.3%          43.1%           On Track
    Net Financial Liabilities Ratio     <60%             -6.3%         -48.7%           On Track
    Cash Cover Ratio                  3 months     6.6 months        11.1 months        On Track
    Asset Sustainability Ratio         > 90%         101.5%             28.5%           On Track


   RECOMMENDATION
   That Council note the report by the Manager Financial Services to the General Committee
   Meeting dated 12 October 2020 outlining September 2020 year to date financial performance
   against budget, including performance against key financial sustainability indicators.

   REPORT
   Operating Revenue (YTD Benchmark 25.0%)
   Council has received 43% ($41.6 million) of its operating revenue budget ($96.6 million).
   Commentary on each revenue category is provided below.

      Category               Summary                             Comments
      Rates and              $34.5 million (50%) of the         Waste utility charges $376k above YTD
      Levies                 annual budget of $68.4              budget (53% or $6.5 million of $12.3 million
                             million has been earned             budget earned), due to recovery of
                                                                 commercial collection services previously
                                                                 impacted by the COVID-19 pandemic
      Fees and               $2.1 million (31%) of the          Plumbing application fees $65k above YTD
      Charges                $6.6 million annual budget          budget (33% or $332k of $1.0 million
                             has been earned                     budget earned)
                                                                Building application fees $56k above YTD
                                                                 budget (32% or $214k of $667k budget
                                                                 earned)
      Sale of Goods          $2.5 million (34%) of the          Holiday Park sales $481k above YTD
      and Services           $7.3 million budget has             budget (54% or $892k of $1.6 million
                             been received                       budget earned) –Parks have reopened
                                                                 earlier than forecast following COVID-19
                                                                 pandemic closures. Positive revenue
                                                                 variances will be partially offset by
                                                                 additional variable operating costs
                                                                Community Facilities (NAC, NLC and The
                                                                 J) $447k above YTD budget (31% or $457k
                                                                 of $1.5 million budget earned) – Facilities
                                                                 have reopened earlier than forecast
                                                                 following COVID-19 pandemic closures.
                                                                 Positive revenue variances will also be
                                                                 partially offset by additional variable
                                                                 operating costs
                                                                Waste management sale of recoverable
                                                                 materials $30k below YTD budget (27% or
                                                                 $1.1 million of $4.0 million budget earned)


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