2022-08-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                          15 AUGUST 2022


Council’s performance against key measures of financial sustainability has been calculated as at
July 2022. These statutory 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
                                                       Current
                                      Target                           Actual YTD           Status
                                                       Budget
 Operating Surplus Ratio               0-10%             0.1%             81.4%           On Track
 Net Financial Liabilities Ratio       <60%              -7.1%           -148.1%          On Track
 Cash Cover Ratio                    3 months          8 months       11.8 months         On Track
 Asset Sustainability Ratio            > 90%            151.6%            10.7%           On Track

RECOMMENDATION
That Council note the report by the Manager Financial Services (Acting) to the General Committee
Meeting dated 15 August 2022 outlining July 2022 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 8.3%)
Council has received 38% ($45.5 million) of its operating revenue budget ($118.2 million).
Commentary on each revenue category is provided below.

 Category             Summary                    Comments
 Rates and Levies     $42.6 million (51.6%)      •   Waste utility charges $104k above YTD budget (50.9%
                      of the annual budget of        or $7.3 million of $14.3 million annual budget earned)
                      $82.5 million has been     •   General rate (net of discounts) $18k below YTD budget
                      earned                         (51.87% or $32.4 million of $32.5 million annual budget
                                                     earned)
 Fees and             $986k (11.1%) of the       •   Property and Facility fees $91k above YTD budget
 Charges              $8.9 million annual            (22.3% or $114k of $514k annual budget earned)
                      budget   has   been        •   Development assessment fees $67k below YTD
                      earned                         budget (4.5% or $127k of $2.8 million annual budget
                                                     earned)
                                                 •   Local Laws fees $52k below YTD budget (2.8% or
                                                     $47k of $1.7 million annual budget earned)
 Sale of Goods        $1.0 million (8.5%) of     •   Holiday Park sales $72k above YTD budget (9.5% or
 and Services         the   $12.3      million       $336k of $3.5 million annual budget earned). Any
                      annual budget has              revenue upside will be generally offset by a
                      been received                  corresponding increase in associated operating costs
                                                 •   Waste management sale of recoverable materials
                                                     $52k above YTD budget (9.4% or $140k of $1.5 million
                                                     annual budget earned)
                                                 •   Waste disposal fees $72k below YTD budget (7.6% or
                                                     $324k of $4.2 million annual budget earned)
 Interest             $180k (20.7%) of the       •   Interest revenues on cash invested will continue to be
 Received             $870k annual budget            monitored to ensure returns on surplus funds are
                      has been earned                maximised as investment rates continue to increase.
 Other Revenue        $279k (9.9%) of the        •   Other revenue is in line with budget expectations at this
                      $2.8 million annual            stage


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