Annual Report 2016-17

Operating revenue – where the money came from                                                                               Statement of financial position
Throughout the financial year, Council received a total of $91.4 million                                                     The statement of financial position (or balance sheet) measures what Council owns (i.e. its assets), and what
                                                                                          Grants &
in operating revenues (rates, fees, operating grants), $9.8 million in                     Other
                                                                                                                            we owe (i.e. liabilities) to determine the total community equity (net worth) at the end of each financial year.
capital revenues (developer contributions, capital grants) and $5.8               InterestRevenue                           Overall, Council’s investment in community capital continues to grow strongly.
                                                                                     5%
million recorded as revenue from Council’s share of investment in                            7%
Unitywater.
                                                                               Fees &
                                                                               Charges                                      Figure 6 - Comparative Statement of Financial Position 2016/17 ($’000)
Figure 4 outlines the sources of Council’s $91.5 million in operating
                                                                                16%
revenue received in 2016/17. The breakdown in operating revenue                                                                                            2015/16          2016/17
                                                                                                     Rates & Utility
confirms that Council has significant control over the majority of                                     Charges 68%                                            ($’000)          ($’000)
                                                                            Other Income
its income sources, and as a result is not reliant on other levels              4%                                          Assets                       1,095,126       1,119,295
of government or external agencies to maintain its financial
independence.                                                                                                               Liabilities                     58,502          64,418
Key Council revenue sources include:                                                                                        Community Equity             1,036,624       1,054,877
•   Rates and utility charges include general rates, charges            Figure 4 - Operating Revenue Sources 2016/17
    for waste collection and disposal, special rates such as the
    tourism and transport levy as well as other separate and
    special rates.
•   Fees and charges include a range of regulatory fees and charges as well as revenue from commercial
    operations such as holiday parks and waste management.
•   Interest revenue includes the return from the investment of available cash.                                             The graph below shows Council’s cash and debt holdings as at 30 June 2017 compared to the previous
•   Revenue from other income includes tax payments from Council’s shareholding in Unitywater.                              year. Cash levels have increased despite the investment in a large capital program undertaken during
                                                                                                                            2016/17. Debt levels have marginally decreased as Council continues to minimise its debt position.


                                                                                                                            Figure 7 - Cash and Debt Comparison 2016/17

                                                                                                                            $80,000
                                                                                                                                                                                            2015/16 ($'000)

Operating expenditure – where the money goes                                                                                $70,000                                                         2016/17 ($'000)

Council expended a total of $88.3 million in undertaking operating activities during the financial year. Figure 5            $60,000
presents a breakdown by expenditure type for normal operating expenditure incurred during 2016/17.
                                                                                                                            $50,000
Key Council expenditure sources include:
                                                                                                                            $40,000
•   Employee benefits - includes staff wages, superannuation, fees
                                                                                 Depreciation
    paid to Councillors and other employment costs.                                                                         $30,000
                                                                                    20%              Employee
•   Depreciation expenditure – records the consumption of                                             Benefits
    community infrastructure assets over their respective useful lives,                                                     $20,000
                                                                         Finance &                     33%
    and provides an indication of the level of required expenditure on Other Costs 5%
    the rehabilitation and renewal of existing assets annually.                                                             $10,000

•   Materials and services – includes information communication                                                                  $0
    technology, consultancy services, contractor services, electricity,                   Materials &
                                                                                                                                                        Cash                                         Debt
    external hire, rentals, repairs and maintenance, and advertising                     Services 42%
    and donations.


                                                                        Figure 5 - Operating Expenses by function 2016/17




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