2021-01-18 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                         18 JANUARY 2021


Council’s performance against key measures of financial sustainability have been calculated as at
December 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%           -3.0%          4.6%            On Track
 Net Financial Liabilities Ratio    <60%            -8.5%         -19.7%           On Track
 Cash Cover Ratio                  3 months    7.9 months       9.1 months         On Track
 Asset Sustainability Ratio         > 90%           100.1%        54.6%            On Track


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 18 January 2021 outlining December 2020 year to date financial performance against
budget, including performance against key financial sustainability indicators.



REPORT
Operating Revenue (YTD Benchmark 50.0%)
Council has received 51% ($49.8 million) of its operating revenue budget ($96.7 million).
Commentary on each revenue category is provided below.

 Category              Summary                          Comments
 Rates and Levies      $34.6 million (51%) of the          Waste utility charges $398k above YTD budget
                       annual budget of $68.4                (53% or $6.6 million of $12.3 million budget
                       million has been earned               earned), due to recovery of commercial
                                                             collection services previously impacted by the
                                                             COVID-19 pandemic (partially offset by
                                                             additional contractor operating costs)
 Fees and              $3.8 million (57%) of the $6.6      Building application fees $117k above YTD
 Charges               million annual budget has             budget (65% or $436k of $667k budget
                       been earned                           earned)
                                                           Plumbing application fees $117k above YTD
                                                             budget (53% or $537k of $1.0 million budget
                                                             earned)
                                                           Development assessment fees $93k above
                                                             YTD budget (55% or $874k of $1.6 million
                                                             budget earned) – offset by additional
                                                             consultancy costs
 Sale of Goods         $5.4 million (75%) of the $7.3      Holiday Park sales $1.1 million above YTD
 and Services          million budget has been               budget (120% or $2.0 million of $1.6 million
                       received                              budget earned) – Parks 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
                                                           Community Facilities (NAC, NLC and The J)
                                                             $770k above YTD budget (79% or $1.1 million
                                                             of $1.5 million budget earned) – Facilities
                                                             reopened earlier than forecast following

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