Financial Performance Report – September 2023

Good afternoon, Councillors. Presenting to you this afternoon the Financial Performance Report for September 2023, which marks one quarter through the financial year. Financial performance for September is positive. Operating revenues are outperforming forecast and operating expenditure is slightly under forecast at this one quarter mark in the financial year. Now, we break that down further operating revenue is $1.6 million above budget, and that's a mix of $978,000 due to interest revenue, which we'll unpack more shortly, $700,000 from goods and services, which is a mix of base fees, as well disposal as revenue from all of our parks, which is a mix of $78,000, and from our other community facilities, such as the NAC, The J, and the Leisure Centre, noting that those facilities do have offsetting additional costs associated with maintenance and operating. There's an additional term for $2,000 for operational grants, again, noting that they will have an expenditure requirement. Associated with them later in the financial year. In terms of Fees and Charges, they are slightly below budget of $239,000. It's due to parking fees, timing of fees through our initial seniors as well as regulatory building and plumbing assessment. In terms of operating expenditure, we have $299,000 underspent year to date. That's a combination of employee costs,000. That on budget. Leaves us with a net operating position as at September of $1.9 million of our budget. That Our BR1 adopted budget is a deficit position. Our BR1 what we will do is propose for BR2 is this additional upside will bring Council back into hopefully a surplus position for the BR2 budget as it has got devoted in according to the year. In terms containment of or constraint of cash funds and services, 1.1 million of the surplus is unconstrained from our general revenue. There is 0.7 million related to business operations such as holiday parks and waste and there is 200,000 from ladies. Now, if we quote through some of the details in the report, tourism and economic development levy remains on budget year to date. As with previous quarters, we also have two deep dives in the report. One is our legal cost summary which shows a deep dive that legal costs are currently in the low budget. Again, early in the financial year and it may fluctuate depending on the progress of legal matters such as. Bottom of heels and the other deep dive is in relation to cash components which we'll talk about shortly. Capital revenue is above budget due to significant grants in advance. Excuse me. Where's she at? Buses renewal? Poochers renewal. Plasma bushfire, QRA disaster funding and all those funds are sitting constrained in our cash reserves until they're spent later in the year. Now in regards to our cash holdings we currently have 135 million in cash reserves. Now noting that of that funding 58 million dollars is restricted in terms of unspent grants, levy, disaster recovery and landfill rehabilitation. There's 29 committed over the next year. I understand capital works and they're required to hold 28 million dollars to meet our three-month cash cover requirements. And there is 18 million dollars in what we call working capital, which is the fund for the rest of the Council operations during the year. Leaves that a forecast of 2 million for long-term unrestricted available cash, which is lower than our previous quarter reported of 5 million, and that is due to our forecast of our operating circles for the last financial year being slightly lower, a base budget where we adopted a slight draw on capital works for new and upgraded works, and coming into VR2 anticipated plus variations for capital works for projects such as our VHS and the. Stage, we close. Council's promotion, all those in favour? Questions from the Council?