4.7 KEY FINANCIAL TRENDS 2012-2023

Analysis of Trends

There are a number of interesting trends that are reflected in the above graph.

Capital Expenditure / Grants

Historically, Council’s capital expenditure is closely correlated with grant revenue.

Rates and Charges / Grants

Council first identified the need to reduce its reliance on grant revenue and improve its rates and charges in 2005. The above graph demonstrates the result of this decision. Revenue from rates and charges are now at a more ‘financially sustainable’ level, given the level of growth in grants has generally reduced.

Rates and Charges / Employee Costs

The substantial growth in service delivery demands in recent years coupled with the need to broaden Council’s rate base is reflected in the steady incline shown on the graph.

Retained Earnings / Borrowings

As retained earnings have been utilised over recent years to deliver various capital projects, borrowings have increased to fund the major capital works projects being delivered.

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