2019-11-12 S&O Agenda - Item 11 - Attachment 1 - Draft Noosa Council 2018-19 Annual Report

Background
This report simplifies the detailed financial information that Council is required to prepare under legislation and provides a
summary of Council financial performance for the 2018/19 year just ended (1 July 2018 through to 30 June 2019).

Council’s annual financial statements are prepared to comply with Australian Accounting Standards, and contain specific
information regarding financial performance. Financial statements include
                                                                                               Statement
a Statement of Comprehensive Income (i.e. profit and loss), a Statement of
                                                                                                   of
Financial Position (i.e. balance sheet), a Statement of Cash Flows as well
                                                                                            Comprehensive
as a Statement of Changes in Equity. Collectively, these financial statements
                                                                                                Income
provide a formal picture of the financial strength of an organisation.                                      Statement
                                                                                Statement of
The Community Financial Report (CFR) consists of five key reporting                 Cash                        of
                                                                                               Financial
elements, each of which has a specific purpose for the measurement and             Flows                     Financial
                                                                                                Ratios
presentation of Council’s finances. The linkages between the five key elements                               Position
are shown in Figure 1.                                                                        Statement
                                                                                                                                                                                                                                                                                                           of
                                                                                                                                                                                                                                                                                                       Changes in
Highlights and achievements                                                                                                                                                                                                                                                                              Equity
                                                                                                                                                                                                                                                                         Figure 1 - Financial Reporting Elements
Council achieved another strong financial result with the following
positive outcomes delivered during the year:

1.      An operating surplus of $5.6 million resulting from revenue growth in fees and sales, effective expenditure
        management, a reduction in asset depreciation expense as well as some unspent levy funds that are required to
        be held for future use.

2.      A net financial result of $17.5 million when adding Council’s share of Unitywater’s annual profit, capital revenue
        and capital income to Council’s operating profit.

3.      A significant decrease in debt levels through an early loan repayment of $10 million.


Where was the budget spent?
Council spends significant amounts of ratepayer funds providing a range of services to the Noosa community. A
summary of the cost of the services for our major service areas is provided in Figure 2. Spending on these services
(including roads, bridges, parks, community facilities and waste management) makes up a significant component of
Council’s annual budget.
$25,000                                                                                                                                                                                                                                                                                         Figure 2
                                                                                                                                                                                                                                                                                                Operating Cost of
$20,000
                                                                                                                                                                                                                                                                                                Core Council Services
$15,000                                                                                                                                                                                                                                                                                         2018/19
$10,000

     $5,000

        $0
                                                                                  Community Facilities




                                                                                                                                                                                                                                                                         Community Engagement
                                            Waste / Health

                                                             Parks and Reserves




                                                                                                                                                                                                                                                            Local Laws
                                                                                                                                                                                       Building / Plumbing
                                                                                                         Libraries / Galleries

                                                                                                                                 Property / Holiday Parks




                                                                                                                                                                                                             Economic Development

                                                                                                                                                                                                                                    Community Development
               Roads / Bridges / Drainage




                                                                                                                                                            Planning and Environment




Noosa Council | 2018/2019 Annual Report                                                                                                                                                                                                                                                                                 Page 43