Strategic Objective 5 - Responsible Financial Sustainability
Financial Sustainability
Revenue
- Rate Increase of 8.95 % in 2006/07 with 6% pa for the following 3 years;
- Fees and Charges revenue increase of 2% pa
- A decrease in Financial Assistance Grants of $1.9M over the life of the plan.
Total Revenue from Ordinary Activities for the year of $120.4M included $5.9M of non-cash developer contributions as well as a $4.3M government contribution to the Clayton Community Centre. After adjusting for these unbudgeted items, total revenue was $110.2M (2% favourable compared with budget).
Interest revenue was higher than budgeted as a result of a higher than anticipated investment level with the receipt of a number of capital grants and contributions in advance of project construction. Interest rate increases during the year also contributed to the better than budget result.
A breakdown of (cash) revenue sources is shown below.
The largest source of revenue is rates, contributing 52% to total cash revenue from ordinary activities. Council's position continued as the second lowest rating Council amongst its neighbours with an 8.95% increase in rates for the 2006/07 year.
The table below shows how Monash compares based on the average rate per assessment for 2006/07 of $862.
Average Rate Per Assessment for 2006/07 (source: MAV)
Rate revenue has remained relatively constant over the last 5 years with rates contributing 54% to cash revenue from ordinary activities in 2000/01 and 52% in 2006/07.
Fees, Fines & Charges revenue increased by 2% from the previous year and contribute 16% to Council's 2006/07 cash revenue from ordinary activities. A significant proportion of this category is statutorily set fees and fines over which Council has no control.
Published: 22 November 2007
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