2020-08-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                          17 AUGUST 2020


Council’s performance against key measures of financial sustainability have been calculated as at
July 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%           -0.9%          76.6%          On Track
 Net Financial Liabilities Ratio    <60%            -11.1%         -48.9%         On Track
 Cash Cover Ratio                  3 months      6.6 months      8.5 months       On Track
 Asset Sustainability Ratio         > 90%           87.5%           0.3%          On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 17 August 2020 outlining July 2020 year to date financial performance against budget,
including performance against key financial sustainability indicators.


REPORT
Operating Revenue (YTD Benchmark 8.3%)
Council has received 40% ($38.2 million) of its operating revenue budget ($96.2 million).
Commentary on each revenue category is provided below.

 Category              Summary                           Comments
 Rates and Levies      $35.5 million (52%) of the             Waste utility charges $327k above YTD budget
                       annual budget of $68.4                  (53% or $6.5 million of $6.2 million budget
                       million has been earned                 earned), due to recovery of commercial
                                                               collection services impacted by COVID-19
 Fees and              $973k (15%) of the $6.6                Plumbing application fees $63k above YTD
 Charges               million annual budget has               budget (21% or $214k of $1.0 million budget
                       been earned                             earned)
                                                              Local laws fees $39k above YTD budget (34%
                                                               or $493k of $1.5 million budget earned)
 Sale of Goods         $662k (9%) of the $7.3                 Holiday Park sales $126k above YTD budget
 and Services          million budget has been                 (16% or $263k of $1.6 million budget earned) –
                       received                                Parks have reopened earlier than budgeted
                                                               following COVID-19 pandemic related
                                                               closures. Positive revenue variances will be
                                                               offset by additional variable operating costs
                                                              Community Facilities (NAC, NLC and The J)
                                                               $93k above YTD budget (7% or $93k of $1.5
                                                               million budget earned) – Facilities have
                                                               reopened earlier than budgeted following
                                                               COVID-19 pandemic related closures. Positive
                                                               revenue variances will be offset by additional
                                                               variable operating costs
                                                              Waste management sale of recoverable
                                                               materials $41k below YTD budget (7% or
                                                               $290k of $4.0 million budget earned)
 Interest              $32k (4%) of the $870k                 Recent downward movements in interest rates
 Received              annual budget has been                  will impact on Council’s interest revenue on
                       earned                                  cash invested, and will need to be monitored

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