Financial Performance Indicators

For the year ended 30 June 2021

Dimension/indicator/measure Operating position Results 2018 Results 2019 Results 2020 Results 2021 Forecasts 2022 2023 2024 2025

Adjusted underlying result

Adjusted underlying surplus (or deficit)

[Adjusted underlying surplus (deficit)/ Adjusted underlying revenue] x100 2.7% -4.2% 7.92% -1.98% -3.23% -5.09% -4.22% -4.83% Council’s result at 30 June 2020 was an underlying surplus due to a number of operational grants being received throughout the 2019/20 financial year, and early payment of the VGC grant.

The forecasted decreasing trend is mainly due to the introduction of rates capping.

Liquidity

Working capital

Current assets compared to current liabilities [Current assets / Current liabilities] x100

Unrestricted cash

431.2% 310.0% 347.7% 248.8% 116.7% 77.9% 52.3% 35.9% Trade and other payables at 30 June 2020 was significantly lower than 30 June 2019 and is expected to remain steady for the next 4 years.

Unrestricted cash compared to current liabilities

[Unrestricted cash / Current liabilities] x100 393.9% 254.9% 295.4% 164.9% 66.9% 40.5% 14.5% 1.3% Unrestricted cash remained steady at 30 June 2020, current liabilities were lower than the previous year due to a reduction in trade and other payables. The decreasing trend over the 4 years to 2023 is due to forecasted lower cash position.

Material Variations

Dimension/indicator/measure Obligations Loans and borrowings

Loans and borrowings compared to rates

[Interest bearing loans and borrowings / Rate revenue] x100 n/a n/a n/a n/a 0.0% 0.0% 0.0% 0.0% Council continues to remain debt free with no loans or borrowings.

Loans and borrowings

Loans and borrowings repayments compared to rates

[Interest and principal repayments on interest bearing loans and borrowings / Rate revenue] x100

Indebtedness

Non-current liabilities compared to own source revenue

[Non-current liabilities / Own source revenue] x100

Asset renewal & upgrade

Asset renewal and upgrade compared to depreciation

[Asset renewal and asset upgrade expenses / Asset depreciation] x100

Results 2018 Results 2019 Results 2020 Results 2021 Forecasts 2022 2023 2024 2025 Material Variations

n/a n/a n/a n/a 0.0% 0.0% 0.0% 0.0% Council continues to remain debt free with no loans or borrowings.

2.3% 2.3% 2.1% 1.2% 1.4% 3.5% 3.5% 3.6%

No material variation.

New in 2020 New in 2020 155.2% 93.1% 183.6% 92.8% 95.4% 95.3%

Expenditure on Asset renewal remains a high priority for Council with increased investment in Asset Renewal during 2019/20.

Dimension/indicator/measure Stability

Rates concentration

Rates compared to adjusted underlying revenue

[Rate revenue / Adjusted underlying revenue] x100 46.9% 37.8% 37.1% 44.9% 47.8% 48.7% 48.2% 48.3% A significant increase in recurrent grants (mainly the Victorian Grants Commission) has resulted in a reduction in rates concentration.

Rates effort

Rates compared to property values

[Rate revenue / Capital improved value of rateable properties in the municipality ] x100

Efficiency

Expenditure level

Expenses per property assessment

[Total expenses / Number of property assessments] $3,362 $4,670 $4,253 $4,015 $3,881 $3,896 $3,974 $4,075 Expenses per property assessment has decreased due to the finalisation of expenditure on flood recovery.

Revenue level

Average rate per property assessment [General rates and Municipal charge / Number of property assessments]

Results 2018 Results 2019 Results 2020 Results 2021 Forecasts 2022 2023 2024 2025

0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% 0.4%

New in 2020 New in 2020

$1,508 $1,541 $1,561 $1,568 $1,594 $1,619

Material Variations

No material variation.

No material variation.

Definitions

"adjusted underlying revenue" means total income other than— a)non-recurrent grants used to fund capital expenditure; and b)non-monetary asset contributions; and c) contributions to fund capital expenditure from sources other than those referred to above

"adjusted underlying surplus (or deficit)" means adjusted underlying revenue less total expenditure

"asset renewal expenditure" means expenditure on an existing asset or on replacing an existing asset that returns the service capability of the asset to its original capability

“current assets” has the same meaning as in the AAS

"current liabilities" has the same meaning as in the AAS

“non-current assets” means all assets other than current assets

"non-current liabilities" means all liabilities other than current liabilities

“non-recurrent grant” means a grant obtained on the condition that it be expended in a specified manner and is not expected to be received again during the period covered by a council's Strategic Resource Plan

"own-source revenue" means adjusted underlying revenue other than revenue that is not under the control of council (including government grants

"population "means the resident population estimated by council

“rate revenue” means revenue from general rates, municipal charges, service rates and service charges

"recurrent grant "means a grant other than a non-recurrent grant

"residential rates" means revenue from general rates, municipal charges, service rates and service charges levied on residential properties

"restricted cash" means cash and cash equivalents, within the meaning of the AAS, that are not available for use other than for a purpose for which it is restricted, and includes cash to be used to fund capital works expenditure from the previous financial year

"unrestricted cash" means all cash and cash equivalents other than restricted cash.