2015-16 Annual Report 2015-16 Annual Report | Page 21

s 5% % What we have earned There are two main categories of revenue for the financial year – recurrent revenue and capital revenue. WHAT WE HAVE SPENT Capital revenue 24% What we have earned Employee costs 40% Rates & levies 58% Recurrent expenses Fees & charges 10% Contract works 2% Grants, subsidies & contributions 5% Interest revenue 1% Materials & serv ices 29% Plan Finance costs 3% Fina Where theDepreciation & amortisation 28% Was money is spent Tran Recurrent Revenue Wate Council’s recurrent revenue is money raised which is used to fund the operations of Council. Recurrent revenue is the major source of revenue for Council and primarily earned from sources such as Rates and Fees and Charges. Was Road & bridge network 36% Site improvements 13% Capital Community expenditure by asset class Property, plant & equipment 96% Council also aims to maximise its revenue from other What are Cashgrants assets and & cash equivalents 3% sources by actively pursuing subsidies from our assets the State and Federal Government and investing1% surplus Trade & other receivables funds to earn interest. Corp Water 6% Services 23% Wastewater 15% Other assets (Heritage & Intangibles) Planning & Land 2% DevelopmentBuildings 4% 16% Capital Revenue Plant & equipment 11% Council’s capital revenue is used to construct Council’s assets now and in the future. Council’s capital revenue consists of grants, contributions and subsidies, developer contributions as well as gain on the disposal of fixed assets. $91.8M was received in grants and contributions to fund capital projects this year. What we have spent Com $ Finance & business strategy 6% Waste management 7% Borrowings 55% Council incurs both recurrent and capital Otherexpenses 1% What do expenses. Capital expenditure is used to renew and we owe Trade & other payables 10% expand our asset infrastructure and is therefore added to the carrying value of the Provisions assets. 34% Investment in capital assets 59% Equity (net wealth) Asset revaluation surplus 41% Transport & other infrastructure 22% Recurrent Expenses are the main expense of Council and represent the day-to-day cost of providing services, operating facilities and maintaining assets. These include employee costs, materials and services, finance costs and depreciation. Sustainability WaterAsset services 24%Ratio Target range = > 90% 160 Employee costs 40% Recurrent expenses Where the money is spent Materials &services services23% 29% Community Finance & costs 3% Planning development 4% Depreciation & amortisation 28% Finance & business strategy 6% Waste management 7% Transport and other infrastructure 22% Water services 24% Expenses are monitored constantly throughout the year. Detailed estimates are prepared at the beginning Wastewater services 11% of each financial year and performance against these estimates is Corporate governance & bridge network3% 36% measured through regularRoad budget reviews to ensure the Site improvements 13% most efficient use of Council’s funds. Water 6% Capital Depreciation and Amortisation Expense makes up over expenditure Wastewater 15% one quarter of Council’s operating expenses. This item by asset represents an allocation of the use or deterioration of the Other assets (Heritage & Intangibles) 1% class community assets over the expected life of the assets. Land 2% How Council’s performance in managing its assets is Buildings 16% Position and explained in the Statement of Financial Measures of Financial Sustainability sections Plant & equipment 11%of this report. Wastewater services 11% 140 120 100 80 82.68% 76.63% Corporate governance 3% 55.99% 60 52.38% 49.58% 50.45% 44.67% 46.18% 43.23% 43 40 20 0 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024 Net Financial Liabilities Target range = < 60% Net financial liabilities ratio 120 100 80.77% 80 71.17% 88.14% 82.85% 18% 80.71% 76.86% 74.12% 78. 21 70.