Financial Summary 2011/2012 Expenses
Employee Benefits & On-Costs
Financial Expenditure During 2011/12, Council delivered the following services for every $100 that was spent: Category
$ for every $100
Capital and Priority Projects
$35.10
Roads, Footpaths and Bridges
$14.33
Sewerage
$13.34
Recreation and Culture
$8.16
Waste
$5.52
Planning and Building Control
$3.25
Environment
$3.05
Community Services
$2.83
Economic Development
$2.28
Community Halls, Galleries and Museums
$2.14
Livestock Marketing Centre
$2.09
Airport
$1.76
Libraries
$1.57
Depreciation is a non-cash expense that reduces the value of an asset over time due to wear and tear, ageing of an asset or obsolescence. The depreciation rates are detailed in Note 1 of the Financial Statements. In 2011/12 Council reviewed the condition of its infrastructure assets in order to accurately reflect the depreciation expense for these assets.
Health
$1.49
Impairment
Public Order and Safety
$1.44
Drainage
$0.97
Governance
$0.68
Total:
$100
In March 2012 extensive sections of Council’s network of roads were affected by severe flooding. As a result of this event, Council has made application for Natural Disaster Relief compensation for the amounts of $31.5M. As per the accounting standards (AASB136), Council has had to recognise impairment costs of $4.2M to reflect the damage caused to its road assets from the March 2012 event. During the 2011/12 financial year $12.7M of reinstatement works to roads assets was performed.
Summary Total expenses ▲6.3% to $109.9M Other expenses ▲ 13.7% to $21.9M The main increase in other expenses related to the reinstatement of Infrastructure Assets with an increase of $2.8M over the 2010/11 figures. The reinstatement costs relate to repairs carried out on road infrastructure as a result of the flood and storm events of 2010/11 and 2011/12. Electricity and heating costs increased by 15.0% over 2010/11 to $2.0M.
28
Total employee costs increased by $2.5M, a 7.8% increase for 2011/12. The key factor contributing to this increase was the award increase in July 2011 of 2.15%. Council’s Employee Leave Entitlements costs increased by $950K and, with higher staff retention, worker compensation insurance costs increased by 13.8% to $1.2M. Materials & Contracts Council entered into a number of contracts for the 2011/12 financial year. These arrangements included contracts for services such as Boorooma /Avocet roundabout construction and Fitzmaurice Street upgrade. The total costs to Council for materials and contracts of $30M was 4.5% higher than in 2011/12. Operating costs for Council’s sewerage treatment plants rose by $1.3M as the upgraded plants at Narrung Street and Kooringal came into full operation in which a higher level of treatment is undertaken. Costs related to the Tarcutta Street Remediation Project, increased by $499K in 2011/12 as the project proceeds to implementation stage. Depreciation & Amortisation
Financial Overview 2011/12
2010/11
2009/10
2008/09
2007/08
2006/07
2005/06
Total Income from Continuing Operations
121,532,000
158,540,000
99,877,000
89,326,000
88,893,000
85,184,000
77,681,000
Total Expenses from Continuing Operations
109,891,000
103,290,000
88,368,000
129,041,000
75,783,000
72,077,000
59,473,000
Net Operating Result for Year
11,641,000
55,250,000
11,509,000
(39,715,000)
13,110,000
13,107,000
18,208,000
Net Operating Result before Capital Grants and Contributions
(1,647,000)
44,144,000
(3,470,000)
(52,217,000)
(2,247,000)
3,396,000
4,603,000
Current Assets
70,241,000
67,292,000
59,999,000
49,183,00
76,551,000
77,582,000
74,224,000
1,348,209,000
1,264,799,000
1,168,634,000
1,113,354,000
778,527,000
498,515,000
397,109,000
Current Liabilities
35,673,000
28,611,000
21,308,000
20,207,000
20,567,000
16,154,000
15,026,000
Non-Current Liabilities
56,902,000
46,032,000
51,745,000
43,712,000
5,786,000
3,838,000
4,809,000
1,325,875,000
1,257,448,000
1,155,580,000
1,103,045,000
828,725,000
556,105,000
451,498,000
Rates Outstanding
5.99%
5.91%
6.27%
6.22%
6.45%
5.45%
5.65%
Unrestricted Current Ratio
2.52:1
3.18:1
4.33:1
3.82:1
4.37:1
4.99:1
4.56:1
Debt Service Ratio
4.08%
4.49%
4.02%
2.83%
0.05%
0.05%
0.06%
82.70%
93.56%
99.03%
257.94%
132.15%
-
-
Non-Current Assets
Total Equity
Asset Renewal
Other Expenses The detailed notes to the Financial Statements provide information on Other Expenses. These include an increase in provisions for the remediation of the former gas works site in Tarcutta Street. Senior Staff Expenses The total remuneration packages comprise of salary, superannuation and motor vehicle entitlements. General Manager – $286,714.25 Directors – $974,967.69
City of Wagga Wagga Annual Report 2011/12
City of Wagga Wagga Annual Report 2011/12
29