2019-09-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        16 SEPTEMBER 2019


Performance against key measures of financial sustainability have been calculated for the month
of August 2019. These indicators, as supported by various industry bodies including QTC and
QAO, enable users of financial data to assess a council’s success in managing its budget, cash
and debt as well as effective asset management. The table below contains a snapshot 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%            0.0%               60.3%             On Track
Net Financial Liabilities Ratio    <60%             -7.0%             -41.1%          Above Target
Cash Cover Ratio                  3 months        5.5 months        11.6 months       Above Target
Asset Sustainability Ratio         > 90%            129%                8%               On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 16 September 2019 outlining August 2019 year to date financial performance
against budget, including changes to the financial performance report with the inclusion of key
financial sustainability indicators.

REPORT
Operating Revenue (YTD Benchmark 16.7%)
Council has received 40% ($39.8 million) of its operating revenue budget ($99.9 million).
Commentary on each revenue category is provided below.
Category              Summary                           Comments
Rates and Levies      $34.6 million (50%) of the             Waste utility charges $124k above YTD budget
                      annual budget of $68.7                   (51% or $6.5 million of $12.7 million budget
                      million has been earned                  earned)
Fees and              $1.9 million (29%) of the $6.7         Local laws fees $63k above YTD budget (46%
Charges               million annual budget has                or $646k of $1.4 million budget earned)
                      been earned                            Plumbing application fees $51k above YTD
                                                               budget (28% or $274k of $971k budget
                                                               earned)
                                                             Community land use permits $30k above YTD
                                                               budget (26% or $108k of $410k budget
                                                               earned)
                                                             Development related fees $21k above YTD
                                                               budget (18% or $286k of $1.6 million budget
                                                               earned)
Sale of Goods         $1.4 million (14%) of the              Holiday park revenue $19k above YTD budget
and Services          $10.1 million budget has                 (14% or $441k of $3.1 million budget earned)
                      been received
Interest              $284k (7%) of the $4.0                 Interest on overdue rates and charges $33k
Received              million annual budget has                above YTD budget (18% or $73k of $400k
                      been earned                              budget earned)
                                                             Investment revenue $43k above YTD budget
                                                               (6% or $211k of $1.0 million budget earned)
                                                             Recent downward movements in interest rates
                                                               will likely impact on Council’s interest revenue
                                                               on cash invested, and will need to be
                                                               monitored

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