2020-07-10 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                 10 JULY 2020


5     Operating Budget

The table below outlines Council’s proposed operating budget position, with an operating deficit of
$1.8 million forecast as a conservative outcome should COVID-19 financial assumptions be
realised.

 Operating Budget                          2020/21
                                            ($’000)
 Revenue                                   $96,198
 Expenditure                               $98,016
 Operating Deficit                        ($1,818)

6     Budget Breakdown

A brief outline of the main elements of the Council budget is provided below.

6.1   Operating Revenue

Net Rates and Utility Charges

Total 2020/21 budgeted net rates and utility charges total $68 million, with the early payment
discount ($2.2 million), pensioner concessions ($675k), and general rate donations for community
organisations ($141k) continuing. An average residential property on the minimum general rate will
receive no increase in total rates and charges for the 2020/21 financial year.

Whilst the rate notice for these properties will show a minimum general rate increase of $21
(1.88%) in line with the Queensland local government cost index, and a 3-bin waste collection
charge increase of $6.50 (1.93%), decreases in the environment levy of $14 (20%), public transport
levy of $7.50 (25%) and heritage levy of $5 (50%) have been made to offset any increase in the
total rates bill.

Full details of Council’s rates and charges are contained in the Revenue Statement 2020/21.

Fees and Charges

Council has forecast $6.6 million in revenue from fees and charges in 2020/21, remaining largely
unchanged from 2019/20. The majority of Council’s fees and charges budget relates to
development related revenue (planning applications), local laws (parking and infringement fees)
and plumbing and building regulatory fees for service.

Rental Income

Total 2020/21 budgeted rental income totals $1.2 million. Included in this total is $944k specifically
relating to commercial property leasing arrangements including the Digital Hub, Ferry and Sunrise
Shopping Centre.

Interest Received

Interest on cash investments and overdue rates is forecast to achieve $870k in 2020/21. Interest
revenues are forecast to be significantly impacted due to expected low interest rates on
investments, and lower overall cash balances associated with reduced revenue forecasts.




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