2016-11-14 General Committee Meeting Notes

GENERAL COMMITTEE MEETING AGENDA                                              14 NOVEMBER 2016


A breakdown of revenue and expense performance against budget will be provided further in this
report. Council has achieved another solid financial result for the year which reflects responsible
budget management by Council managers and staff on behalf of our community (which is
appreciated).

Council has met the requirements of its financial sustainability policy with respect to the operating
surplus ratio, with the ratio of 7% comfortably within the 0-10% target range set by the state
government.

Operating Revenue

Council achieved $90.2 million of operating revenue against budgeted revenue of $88.2 million
for the full year, reflecting the prudent budgeting approach adopted to manage any downside
revenue risk. A breakdown on each of Council’s revenue streams is contained in the following
table:

Table 1: Operating Revenue Performance by Type

    Revenue Type          Budget         Actual     Variance
                             $m             $m            $m
    Rates                  $60.5          $60.7          $0.2
    Fees                    $5.1           $5.7          $0.6
    Dividend                $1.9           $1.9          $0.1
    Tax                     $1.1           $1.1          $0.1
    Interest                $4.6           $4.9          $0.3
    Other                   $9.4          $10.7          $1.2
    Grants                  $5.7           $5.2        ($0.5)
    Total                  $88.2          $90.2          $2.0
Note: Some rounding


•     Rates and Levies – $60.7m of actual revenue was received against the annual budget of
      $60.5m. The majority of the additional revenue collected related to waste collection charges
      on additional properties.
•     Fees and Charges – Actual fees and charges collected of $5.7m exceeded budget by
      $600k. Planning related fees ($300k), parking fees ($115k), registration fees ($87k) and
      search fees ($96k) are some of the fee types that exceeded budget forecasts.
•     Interest Received – Interest earned of $4.9m exceeded budget by $340k. Interest revenue
      sources include Unitywater loans ($2.6m), interest on cash ($1.8m) and interest on overdue
      rates ($483k). Higher end of year cash balances as well as additional interest on overdue
      rates reflected the positive position against budget.
•     Dividend and Tax – Actual Dividend and tax payments from Unitywater of $3m met budget.
•     Other Revenue – $10.7m of actual other revenue was achieved against the annual budget of
      $9.4m. Other income streams that exceeded budget included waste disposal fees ($437k),
      ringtail quarry sales ($325k), holiday park fees ($183k), and other various community facility
      revenues (i.e. the J and Aquatic Centre).
•     Grants, Subsidies and Contributions – Operational grants of $5.2m were below the annual
      budget of $5.7m. The Translink contribution towards the deferred electric bus trial ($480k)
      was not received which reflected the variance.




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