2021-02-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       15 FEBRUARY 2021


Council’s performance against key measures of financial sustainability have been calculated as at
January 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
                                    Target       Current      Actual YTD
                                                 Budget
 Operating Surplus Ratio            0-10%         -3.0%          37.9%            On Track
 Net Financial Liabilities Ratio    <60%          -8.5%          -53.7%           On Track
 Cash Cover Ratio                  3 months    7.9 months      9.7 months       Above Target
 Asset Sustainability Ratio         > 90%        100.1%          58.9%            On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 15 February 2021 outlining January 2021 year to date financial performance against budget,
including performance against key financial sustainability indicators.


REPORT
Operating Revenue (YTD Benchmark 58.3%)
Council has received 91% ($88.3 million) of its operating revenue budget ($96.9 million).
Commentary on each revenue category is provided below.

 Category              Summary                          Comments
 Rates and Levies      $70.2 million (103%) of the         Waste utility charges $909k above YTD budget
                       annual budget of $68.4               (107% or $13.3 million of $12.4 million budget
                       million has been earned              earned), due to commercial collection services
                                                            previously impacted by the COVID-19
                                                            pandemic recovering earlier than forecast
                                                            (partially offset by additional contractor
                                                            operating costs)
 Fees and              $4.4 million (66%) of the $6.6      Building application fees $121k above YTD
 Charges               million annual budget has            budget (72% or $480k of $667k budget earned)
                       been earned                         Plumbing application fees $87k above YTD
                                                            budget (69% or $699k of $1.0 million budget
                                                            earned)
                                                           Development assessment fees $111k above
                                                            YTD budget (65% or $1.0 million of $1.6 million
                                                            budget earned) – offset by additional
                                                            consultancy and other application processing
                                                            costs
 Sale of Goods         $6.6 million (90%) of the $7.3      Holiday Park sales $1.4 million above YTD
 and Services          million budget has been              budget (144% or $2.3 million of $1.6 million
                       received                             budget earned) – Parks reopened earlier than
                                                            forecast    following    COVID-19        pandemic
                                                            closures. Positive revenue variances that hold
                                                            through the financial year will be offset in part by
                                                            additional variable operating costs
                                                           Community Facilities (NAC, NLC and The J)
                                                            $825k above YTD budget (94% or $1.4 million
                                                            of $1.5 million budget earned) – Facilities
                                                            reopened earlier than forecast following


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