2020-09-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                     14 SEPTEMBER 2020


Council’s performance against key measures of financial sustainability have been calculated as at
August 2020. 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%           -2.3%           59.1%          On Track
 Net Financial Liabilities Ratio    <60%            -6.3%          -48.7%          On Track
 Cash Cover Ratio                  3 months    6.6 months        11.4 months       On Track
 Asset Sustainability Ratio         > 90%           101.5%          13.3%          On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 14 September 2020 outlining August 2020 year to date financial performance against
budget, including performance against key financial sustainability indicators.


REPORT
Operating Revenue (YTD Benchmark 16.7%)
Council has received 41% ($39.3 million) of its operating revenue budget ($96.6 million).
Commentary on each revenue category is provided below.

 Category              Summary                          Comments
 Rates and Levies      $34.6 million (51%) of the             Waste utility charges $290k above YTD budget
                       annual budget of $68.4                  (53% or $6.5 million of $6.2 million budget
                       million has been earned                 earned), due to recovery of commercial
                                                               collection services previously impacted by the
                                                               COVID-19 pandemic
 Fees and              $1.4 million (21%) of the $6.6         Plumbing application fees $37k above YTD
 Charges               million annual budget has               budget (25% or $255k of $1.0 million budget
                       been earned                             earned)
                                                              Development assessment fees $37k below
                                                               YTD budget (14% or $223k of $1.6 million
                                                               budget earned)
 Sale of Goods         $1.5 million (21%) of the $7.3         Holiday Park sales $254k above YTD budget
 and Services          million budget has been                 (32% or $528k of $1.6 million budget earned) –
                       received                                Parks have reopened earlier than budgeted
                                                               following COVID-19 pandemic related closures.
                                                               Positive revenue variances will be offset by
                                                               additional variable operating costs
                                                              Community Facilities (NAC, NLC and The J)
                                                               $271k above YTD budget (19% or $278k of $1.5
                                                               million budget earned) – Facilities have
                                                               reopened earlier than budgeted following
                                                               COVID-19 pandemic related closures. Positive
                                                               revenue variances will be offset by additional
                                                               variable operating costs
                                                              Waste management sale of recoverable
                                                               materials $58k below YTD budget (17% or
                                                               $673k of $4.0 million budget earned)


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