27 February 2007 - Ordinary Meeting of Council (pdf. 14MB)

Below is a summary of the aims and objectives of each of the key performance
indicators:
• Average Rate Per Assessment (Residential & Business)
It is generally acknowledged that rate income is the main financial resource of
Councils. The objective of this indicator is to highlight the level of Council’s rates.
Several factors that affect this indicator include: rate pegging legislation, the mix of
residential/business properties and land values within a Council area.
• Outstanding Rates, Charges & Fees
The percentage of rates, charges & fees unpaid at the end of an accounting year is a
measure of a Councils effectiveness in managing debt recovery.
• Sources of Total Revenue
This indicator assesses the degree of dependence on alternative sources of revenue.
Factors such as the level of investment activity of the Council, the rate of new
development within the Council area, and the level of State/Federal funding have a
large bearing on the Council’s level of alternative funding.
• Total Operating Revenue (per capita)
Total Revenue per capita is an alternative method of analysing revenues received by
Council. Many revenue streams are dependent upon the numbers of people living
within the Council boundaries, although factors such as rate-pegging, development
activity as well as the extent of user pays services also influence revenues. As such,
this is only a basic indicator of the Council’s ability to service the needs of its
community.
• Dissection of Total Operating Expenses
The objective of this indicator is to assess the expenditure pattern of Council.
Expenditure requirements of Councils include: employee costs; materials and
contracts; interest charges; depreciation; and other operating expenses. Council’s
expenditure patterns are influenced by many factors such as the socio-economic
characteristics of the area, the rate of new development and the increase/decrease in
population within the area.
• Total Operating Expenditure (per capita)
This indicator measures Council’s operating expenditure on a per capita basis.
• Unrestricted Current Ratio
The unrestricted current ratio assesses the Council’s liquidity and its ability to satisfy
obligations as they fall due in the short-term, such as payment for goods and services
supplied. A ratio of between 1:1 and 2:1 is considered satisfactory and indicates that
the Council has enough liquid assets to satisfy its short-term requirements. The higher
the ratio, the greater the Councils ability to meet short-term liabilities. The current
ratio is included in the audited financial statements of Council.
H:\My Documents - NOTHING FOR TRIM\Governance Stuff - see CDs\Burning Files to CD - NOT FOR TRIM\OMC 070227
Attachments\NSW Dept L.Govt Comparative Data 2004-2005\700194-Comparitive Data 2004_2005 New Format.DOC
2