2020-11-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                      16 NOVEMBER 2020


Council’s performance against key measures of financial sustainability have been calculated as at
October 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%         31.0%           On Track
 Net Financial Liabilities Ratio    <60%            -6.3%         -48.7%          On Track
 Cash Cover Ratio                  3 months    6.6 months      10.7 months        On Track
 Asset Sustainability Ratio         > 90%           101.5%        39.7%           On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 16 November 2020 outlining October 2020 year to date financial performance against
budget, including performance against key financial sustainability indicators.



REPORT
Operating Revenue (YTD Benchmark 33.3%)
Council has received 46% ($44.7 million) of its operating revenue budget ($96.6 million).
Commentary on each revenue category is provided below.

 Category              Summary                          Comments
 Rates and Levies      $34.5 million (50%) of the           Waste utility charges $369k above YTD budget
                       annual budget of $68.4                (53% or $6.5 million of $12.3 million budget
                       million has been earned               earned), due to recovery of commercial
                                                             collection services previously impacted by the
                                                             COVID-19 pandemic (partially offset by
                                                             additional contractor operating costs)
 Fees and              $2.6 million (39%) of the $6.6       Building application fees $69k above YTD
 Charges               million annual budget has             budget (43% or $288k of $667k budget earned)
                       been earned                          Plumbing application fees $59k above YTD
                                                             budget (38% or $382k of $1.0 million budget
                                                             earned)
                                                            Environmental Health licences $56k below YTD
                                                             (81% of $237k of $292k budget earned) –
                                                             reduced licences following COVID-19 pandemic
                                                             business closures
 Sale of Goods         $3.5 million (48%) of the $7.3       Holiday Park sales $661k above YTD budget
 and Services          million budget has been               (74% or $1.2 million of $1.6 million budget
                       received                              earned) – Parks have reopened earlier than
                                                             forecast    following    COVID-19      pandemic
                                                             closures. Any positive revenue variances that
                                                             hold through the financial year will be partially
                                                             offset by additional variable operating costs
                                                            Community Facilities (NAC, NLC and The J)
                                                             $534k above YTD budget (46% or $675k of $1.5
                                                             million budget earned) – Facilities have
                                                             reopened earlier than forecast following
                                                             COVID-19 pandemic closures. Any positive

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