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Performance against Annual Business Plan 2011/2012
Council continued to undertake its responsibilities
under the Local Government Act and other legislation
during 2011-2012 by providing services such as dog
and cat management, development planning and
control, building safety assessment, health services,
garbage collection, green waste and recycling
processing, and maintenance of infrastructure
including roads, footpaths, parks, public open space,
street lighting and drainage.
In response to community needs, the Council also
provided services and programs including, library
facilities located at Port Adelaide, Semaphore,
Greenacres, Enfield and the Parks, community events
including the Australia Day celebrations, citizenship
ceremonies, youth services through Youth Week and
the Early Intervention projects and a comprehensive
community sponsorship and donation program.
Council also operated a number of facilities on a fee
for service basis. These facilities provided community
benefits while generating revenue to maintain the
assets associated with the service. They included
golf courses located at Valley View, Glanville and
Regency Park, community centres and halls across
the municipality, the community bus service, the
Home and Community Care (HACC) program,
various ovals, courts, parks and reserves across
the municipality.
For the financial year ended 30 June 2012 the
Council achieved an operating surplus of $3.8m
before capital items, and a net surplus of $17.2m
after allowing $1.7m in grant revenue for new or
upgraded assets, and $13m in assets received free of
charge. Revenue for assets received free of charge is
not budgeted due to the uncertain and unpredictable
nature of the transactions.
Council achieved an operating surplus ratio (i.e.
the operating result as a percentage of general and
rate revenue) for the period of 5.0%. This is an
improvement over the adopted budget target of 0%
(or break even) and can be attributed to better than
anticipated revenue through investment income
$0.5m and reimbursements $0.9m, and savings in
materials contractors and other expenditure of $1.4m.
During the financial year Council constructed
infrastructure and acquired other assets totalling
$37.2. This included replacement of plant and
machinery $2.2m, building improvements
$7.7m, construction of roads, drains and footway
infrastructure $25.9m.
As at 30 June 2012, Council’s asset sustainability ratio
(i.e. net asset renewals expenditure to depreciation
expense) equalled 58%. This is lower than the
budgeted ratio of 62% and is primarily due to a
decreased asset renewal expenditure program that
included works carried forward from the previous
financial year, and an increased emphasis on new
and upgraded asset expenditure. Notwithstanding
this, approximately $6.6m of incomplete works
as at 30 June 2012 have been placed in Council’s
Committed Project Reserve in order to fund project
completion during 2012-2013.
Net financial liabilities (i.e. total liabilities less
financial assets) as at 30 June 2012 totalled $4.2m.
Council’s net financial liabilities ratio (i.e. net
financial assets as a percentage of total operating
revenue) equalled 4.1%. This is an improvement over
the adopted budget net financial liabilities ratio of
8.9%. This can be attributed to Council’s improved
cash and cash equivalents position and reduced total
liabilities during the reporting period.
Council’s Treasury Management Policy directs
that Council manages its finances holistically in
accordance with overall financial sustainability
strategies. For this reason Council has continued to
utilise its available cash to fund all activities for the
reporting period rather than borrow funds.
In line with the 2011-2012 Budget, Council repaid
loan principal totalling $2.8m during the reporting
period. Council’s borrowings as at 30 June 2012
totalled $20.6m.
For further information regarding Council’s financial
performance and financial position a copy of
Council’s audited Financial Statements are provided
later in the Annual Report.
Council’s financial management is guided by its Long
Term Financial Plan which forms part of Council’s
suite of strategic management plans. The ten year
Long Term Financial Plan includes an estimated
Statement of Comprehensive Income, Balance Sheet,
Statement of Changes in Equity, Statement of Cash
Flows, proposed operating and capital investment
estimates, and key financial indicators. A copy of the
plan can be found on Council’s website.
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