2020-12-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       14 DECEMBER 2020


     Council’s performance against key measures of financial sustainability have been
     calculated as at November 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%            15.8%            On Track
      Net Financial Liabilities Ratio    <60%            -6.3%            -23.0%           On Track
      Cash Cover Ratio                  3 months    6.6 months          9.9 months         On Track

      Asset Sustainability Ratio         > 90%           101.5%           40.3%            On Track


    RECOMMENDATION
     That Council note the report by the Manager Financial Services to the General Committee
     Meeting dated 14 December 2020 outlining November 2020 year to date financial
     performance against budget, including performance against key financial sustainability
     indicators.


    REPORT
     Operating Revenue (YTD Benchmark 41.7%)
     Council has received 49% ($46.9 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 $364k above YTD
                            annual budget of $68.4                 budget (53% or $6.5 million of $12.3
                            million has been earned                million budget earned), due to recovery
                                                                   of commercial collection services
                                                                   previously impacted by the COVID-19
                                                                   pandemic (partially offset by additional
                                                                   contractor operating costs)
      Fees and              $3.2 million (48%) of the             Building application fees $81k above
      Charges               $6.6 million annual budget             YTD budget (54% or $361k of $667k
                            has been earned                        budget earned)
                                                                  Plumbing application fees $74k above
                                                                   YTD budget (54% or $453k of $1.0
                                                                   million budget earned)
                                                                  Development assessment fees $41k
                                                                   above YTD budget (44% or $453k $1.6
                                                                   million budget earned)
      Sale of Goods         $4.4 million (60%) of the             Holiday Park sales $836k above YTD
      and Services          $7.3 million budget has                budget (72% or $1.5 million of $1.6
                            been received                          million budget 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



                                                                                                 Page 9 of 38