2023-2024 Fees And Charges

You certainly can. Okay. So, good afternoon, Councillors. Operating revenues continue to outperform forecast, as do operating expenditures, which is slightly under forecast for the end of May. Operating revenues. Is $1.9 million above budget, which is being driven predominantly by interest revenue of $855,000, and that's because QTC have shifted their rates on general cash holding in line with the increases in term deposits, and we've also done some reinvestments as well. Fees and Charges are below budget. These are predominantly development assessment and plumbing and building, although I am aware that there potentially could be some more development assessment fees coming shortly. That downside has been offset by a sale of goods and services of $595,000, predominantly related to holiday parks and community facilities. Other revenue is above budget $562,000 and that's relating to the recovery of the waste bin purchases by Cleanaway. So we recover the cost of purchasing those bins. That's $110,000 insurance recovery relating to the properties other and facilities that were damaged during the flood event. So that's $128,000. And then some internal plant recoveries as well. Grant revenue is up $203,000 year to date because of some receipt of some flood management grants as well. So that's come through as well. Operating expenditure is $794,000 under budget with employee costs $162,000 under budget. Materials and services are $679,000 under budget. This is a combination of factors, so civil operations is currently,000 per year. $555 over budget.000 over budget and holiday parks is $274,000 over budget, which is offset by some additional revenue. But waste, strategic development assessment and infrastructure planning are also under budget, so that's offsetting and putting us over. Tourism and economic development expenditure remains on track and overall Council operating position at May is $2.6 million above budget. Now typically projects are finalised towards end of financial year, so we do expect some expenditure to come through in June, which you'll down likely see that a little bit as well. Capital revenue is above budget by $12.1 million, and that's due to further advance payments of the Queensland recovery authority disaster projects from the February 2022 event. Year-to-date Council has expended 78% of its four-year capital program, which equates to $44.3 million, with a further $7.5 million committed. Council's cash holdings at the end of May was $111 million, with $50 million of these funds invested in higher yielding term deposits to maximise their returns, and this has contributed largely to the upside in our interest rate revenue. Council's cash holdings are higher than we would typically expect to see at this time of year, and this is predominantly due to the advance payment of funding from the $80 million QRA program. We've got a net $17.9 million currently held in reserve for these works. Council is also holding $10 million relating to advance payment of four years' worth of waste levy subsidy. In accordance with Council's financial sustainability policy, we are also holding a minimum of three months' cash cover as well as cash reserves to fund the operations for June and July until the first rate run of the new financial year. Also provided in our cash holdings is the remainder of the FY23 capital program as well as the $9 million of the projects that were pushed into the following year as part of budget review too. And we also hold funds in restricted funds for natural disaster rehabilitation, waste management services, developer contributions and unspent levies. We do provide a breakdown of these cash components quarterly and you will see one in the next month's report so that will break it down even further. Overall Council's financial position continues to be on track and is meeting its financial sustainability targets.

Okay so the Local Government Act 2009 empowers Council to generate revenue from Fees and Charges by fixing a fee by way of a local law resolution. Fees and Charges can be set to cost of delivering regulatory activities like planning and permits, as well as based on commercial full-cost pricing principles, including a return on assets employed for business activities like waste and holiday parks. The proposed 2023-24 schedule comprises over a thousand Fees and Charges which generate approximately $25.3 million in revenue and that includes just Fees and Charges as well as sales of goods and services to fund the delivery of Council services. Pricing to recover the true cost of services provision is necessary to ensure the Council generates sufficient revenue from its activities in line with its financial sustainability policy and it also provides a diversified revenue base and ensures that the cost of services provided are equitably borne by those who benefit from them. The proposed 2023-24 Fees and Charges will come into effect on the 1st of July and have been workshopped as part of the annual budget.

Brian Stockwell239:35

Yeah, we do this early each year because there are people in the community who have to give clients quotes about what the likely Fees and Charges are in a month's time. As I said, the process used to you is the same as others, is that it's a review of what it takes, who's how involved and for how long to provide a service with a view that as much as possible that the charge is not one that has to be subsidised greatly by the general rate payer if they don't benefit.

Amelia Lorentson240:23

In terms of. I've got a question. Sorry. In terms of tourism events, we've had some discussion around. Streamlining events and reducing red tape, has that. Been reflected in the Fees and Charges, or is that going to be taken to a separate workshop and discussion?