2018-11-06 S&O Agenda - Attachment 1 to Item 5 - Draft Annual Report 2017-18

Operating revenue – where the money came from
                                                                                            Unitywater
Throughout the financial year, Council received a total of $95.4 million                         3%
                                                                                       Grants &
in operating revenues (rates, fees, operating grants), $11.3 million in                 Other
capital revenues (developer contributions, capital grants) and $5.1                    Revenue
                                                                                         6%
million recorded as revenue from Council’s share of investment in
Unitywater.                                                                            Interest
                                                                                          5%
Figure 4 outlines the sources of Council’s $95.4 million in operating        Fees & Charges
revenue received in 2017/18. The breakdown in operating revenue                   16%
confirms that Council has significant control over the majority of                                         Rates & Utility
                                                                                                         Charges 67%
its income sources, and as a result is not reliant on other levels            Other Income
                                                                                  3%
of government or external agencies to maintain its financial
independence.

Key Council revenue sources include:
•   Rates and utility charges include general rates, charges            Figure 4 - Operating Revenue Sources 2017/18
    for waste collection and disposal, special rates such as the
    tourism and economic levy as well as other separate and
    special rates;
•   Fees and charges include a range of regulatory fees and charges as well as revenue from commercial
    operations such as holiday parks and waste management;
•   Interest revenue includes the return from the investment of available cash; and
•   Revenue from other income includes tax payments from Council’s shareholding in Unitywater.




Operating expenditure – where the money goes
Council expended a total of $86.9 million in undertaking operating activities during the financial year. Figure 5
presents a breakdown by expenditure type for normal operating expenditure incurred during 2017/18.

Key Council expenditure sources include:
•   Employee benefits - includes staff wages, superannuation, fees
                                                                                    Depreciation
    paid to Councillors and other employment costs;
                                                                                       17%
                                                                                                          Employee
•   Depreciation expenditure – records the consumption of community                                        Benefits
    infrastructure assets over their respective useful lives, and              Finance &
                                                                             Other Costs 3%                 35%
    provides an indication of the level of required expenditure on
    the rehabilitation and renewal of existing assets annually. The
    revaluation of infrastructure assets during the year has also
    impacted the annual depreciation charge; and
•   Materials and services – includes information communication                        Materials &
    technology, consultancy services, contractor services, electricity,               Services 45%
    external hire, rentals, repairs and maintenance, and advertising
    and donations.

                                                                        Figure 5 - Operating Expenses by function 2017/18




Page 34 | 2017-2018 Annual Report