The Net Result does not necessarily represent surplus
cash funds available for general use as certain income
items are restricted to specific use. For example, capital
grants are generally allocated to maintain or expand the
Council’s infrastructure.
Some revenue is of a non-cash nature – for example,
contributed infrastructure assets (such as roads, sewerage
and water mains) constructed by a developer on behalf of
Council in conjunction with land sub-divisions or property
developments.
What we have earned
There are two main categories of revenue for the financial
year – recurrent revenue and capital revenue.
The Statement of Financial Position is often referred to
as the Balance Sheet and is a snapshot of the financial
position of Council at 30 June. The statement measures
what Council owns (Assets) and what Council owes
(Liabilities). The difference between these two components
is the net wealth (Equity) of Council and our community.
$’000’s
Employee costs 39%
Rates & levies 61%
Capital revenue 19% 4,658,574
Materials & services 28%
Rates & levies
61% costs 4%
342,161
Finance
Assets (what we own)
Recurrent
Liabilities (what expenses
we owe)
What
Fees & charges 10%
Contract works 3%
Grants, subsidies & contributions 6%
10%
Equity we
(Community
Wealth) Fees & charges
have
Depreciation 4,316,413
& amortisation 29%
earned
Contract works 3%
What do we own?
Interest revenue 1%
Recurrent Revenue
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.
Property, plant & equipment 96%
Council
also aims to maximise its revenue from other
What are
Cash grants
assets & and
cash
equivalents
3.5%
sources
by actively pursuing
subsidies
from
our assets
Trade & other
receivables
the State and Federal Government
and
investing 0.5%
surplus
funds to earn interest.
Grants, subsidies & contributions 6%
Council’s major asset class is Property and Plant &
Interest revenue 1%
Equipment. These assets make up 96% of Council’s assets.
Road, drainage, water and wastewater Road
infrastructure
assets 46%
& bridge network
make up the bulk of the property, plant Site
and improvements
equipment 7%
which provide direct benefit to the community.
Water 8%
Capital
expenditure
by asset
What are class
our assets
Waste 3%
Wastewater 12%
Property, plant
& equipment
96%
Drainage
1%
Cash assets
& cash
equivalents (Aerodrome)
3.5%
0%
Other
Infrastructure
Trade & other
receivables
0.5% & Intangibles) 3%
Other
assets (Heritage
Capital Revenue Land 1%
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. $70.20M was received in grants and contributions
to fund capital projects this year. Buildings 7%
What we have spent Borrowings 51%
Capital revenue
19%
Other 1%
What do
Council
incurs both recurrent expenses and capital
we owe Capital
Rates
& levies
Trade 61%
& other
payables
11% and
expenses.
expenditure
is used
to renew
What
expand our asset
infrastructure
and
is
therefore
added to
Fees
&
charges
10%
Provisions 37%
we have
earned the carrying value of the assets.
Contract works 3%
Recurrent Expenses
are subsidies
the main
expense of 6%
Council
Grants,
& contributions
and represent the
day-to-day
cost
of
providing
services,
Interest revenue 1%
operating facilities and maintaining assets. These include
employee costs, materials and services, finance costs and
depreciation.
Recurrent
What are expenses
our assets
Where the
money is
spent
Employee costs 39%
Community services 22%
Materials & services 28%
Property, plant & equipment 96%
Planning & development 3%
Finance costs 4%
Cash assets & cash equivalents 3.5%
Finance & business strategy 4%
Depreciation & amortisation 29%
Trade & other receivables 0.5%
Waste management 10%
Transport and other infrastructure 27%
services 21%
Expenses are monitored Water
constantly
throughout the year.
Wastewater
services
10%
Detailed estimates are prepared
at
the
beginning
Road & bridge network
46% of each
financial year and performance
against
these
estimates is
Corporate governance 3%
Site improvements 7%
measured through regular
budget reviews to ensure the
Water 8%
most efficient use of Council’s
funds.
34
Statement of Financial Position
In summary, Council’s position at 30 June 2017 was:
Capital revenue 19%
What
we have
earned
Depreciation and Amortisation Expense makes up nearly
one-third of Council’s operating expenses. This item
represents an allocation of the use or deterioration of the
community assets over the expected life of the assets.
How Council’s performance in managing its assets is
explained in the Statement of Financial Position and
Measures of Financial Sustainability sections of this report.
Waste 3%
TOOWOOMBA REGIONAL COUNCIL
Capital
Wastewater 12%
expenditure
What did we spend on assets?
Plant & equipment 12%
What we spend to build or enhance our assets is reflected
in the Statement of Financial Position as it increases the
value of our assets.
120.00%
A significant amount of Council’s activities is focussed
Investment of
in fixed
capital assets 59%
on the maintenance,
upgrade
and
construction
Equity
Borrowings
51% 39%
100.00%
Employee costs
assets to ensure
are adequate infrastructure
(net there
wealth)
Asset revaluation surplus 41%
1% activities
Materials
& services
80.00%
What
services
for do
community use. Other
These
are 28%
Recurrent
we
owe
Trade
& other
11%
undertaken
in accordance with
Council’s
long-term
asset
Finance
costs payables
4%
expenses
60.00%
management plan which covers
a period
Provisions
37% of ten years.
Depreciation & amortisation 29%
40.00%
This year Council spent $140M to renew, upgrade and build
new assets for the community. The graph below shows the
how the money was spent in different asset classes.
20.00%
0.00%
Asset Sustainability Ratio
Target
range = network
> 90% 46%
Road
& bridge
120.00% Site improvements 7%
100.00% Water 8%
80.00% Waste 3%
Capital
expenditure
60.00%
by asset
40.00% class 55.10%
44.27%
the
money is
0.00%
spent
2016/17 2017/18
58.73%
120.00%
120.00%
Drainage
1% development 3%
Planning
&
52.34% 100.00%
48.44%
46.38%
49.70%
43.78%
68.39%
47.18%
Other
Infrastructure
0%
Finance
& business (Aerodrome)
strategy 4%
20.00% Where
I Annual Report 2016 - 2017
Wastewater
12%
Community services
22%
42.51%
Other
(Heritage 10%
& Intangibles) 3%
Waste assets
management
2018/19
80.00%
60.00%
Land
1% 2021/22
Transport
and other
2019/20
2020/21
2022/23 infrastructure
2023/24 2024/25 27%
2025/26 2026/27
Buildings
7% 21%
Water services 40.00%
Plant
& equipment
12%
Wastewater
services
10% 20.00%
Corporate
Net
Financial governance
Liabilities 3% 0.00%
Target range = < 60%
Net financial liabilities ratio