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Moorabool Shire

Profile Performance

Provision of relevant information about the effectiveness of financial management in local government including efficiency, liquidity, obligations, operating position and stability

Expenses per property assessment

Amount of council expenditure for each property

Moorabool Shire (2018-2019)

$2,876.48

Similar Councils (2018-2019)

$3,542.34

All Councils (2018-2019)

$3,322.88

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 $2,677.65 $3,134.02 $2,949.21
2016-2017 $2,798.23 $3,274.34 $3,076.54
2017-2018 $2,867.61 $3,308.02 $3,173.85
2018-2019 $2,876.48 $3,542.34 $3,322.88
2019-2020 $2,935.31 $3,363.36 $3,247.86
2020-2021 $2,925.33 $3,353.52 $3,248.25
2021-2022 $2,954.09 $3,403.99 $3,283.87
2022-2023 $3,061.68 $3,457.76 $3,335.79

Moorabool Shire Council Says...

Expenses per property assessment are predicted to marginally increase over the next 4 years. In comparative terms, expenses per property assessment are significantly lower in Moorabool Shire than both the state average and that of similar Councils. This reflects a high degree of resource efficiency and responsible financial stewardship over Council resources, but also reflects the ongoing challenge that Moorabool Shire faces in receiving its fair share of recurrent funding from state and federal governments. It is currently noted that Moorabool Shire receives significantly less in recurrent grants than the state average which in turn, reduces the level of investment and expenditure that Council can put back in the community. On top of this, average residential rates in Moorabool Shire are low compared to the state average (and are also subject to the rate cap) and Moorabool Shire has limited sources of other revenue streams. As a result, Moorabool Shire is compelled to manage resources efficiently in the face of these strategic challenges.

Current assets as a percentage of current liabilities

Value of current assets at the end of the year (i.e. assets that can easily be converted to cash within 12 months) divided by the value of current liabilities at the end of year (i.e. obligations due or payable by cash within the next 12 months)

Moorabool Shire (2018-2019)

226.49%

Similar Councils (2018-2019)

310.29%

All Councils (2018-2019)

319.74%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 195.20% 224.99% 241.76%
2016-2017 163.58% 269.52% 293.07%
2017-2018 192.64% 306.83% 317.53%
2018-2019 226.49% 310.29% 319.74%
2019-2020 196.47% 235.66% 250.74%
2020-2021 146.51% 216.08% 227.10%
2021-2022 163.57% 215.00% 228.98%
2022-2023 161.16% 220.48% 236.93%

Moorabool Shire Council Says...

The ratio was favourably impacted by the receipt of significant levels of Developer Contributions as compared to the 2017/18 year. In addition to this, Council had higher cash levels due to capital works being carried over to the 2019/20 financial year.

Unrestricted cash as a percentage of current liabilities

Amount of cash at the end of the year which is free of restrictions divided by the value of current liabilities at the end of year (i.e. obligations due or payable by cash within the next 12 months)

Moorabool Shire (2018-2019)

91.13%

Similar Councils (2018-2019)

88.99%

All Councils (2018-2019)

94.27%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 33.65% 78.30% 95.85%
2016-2017 37.46% 107.42% 96.18%
2017-2018 76.70% 115.91% 101.05%
2018-2019 91.13% 88.99% 94.27%
2019-2020 124.40% 145.79% 138.87%
2020-2021 92.12% 134.21% 123.19%
2021-2022 90.00% 132.74% 121.11%
2022-2023 90.61% 136.32% 125.13%

Moorabool Shire Council Says...

The improvement in this ratio over the last 4 financial years is consistent with Councils Strategic Financial Plan and this ratio is expected to improve and stabilise in future years. In addition to this, Council received significant levels of developer contributions for projects that were funded in prior years resulting in an improvement in this measure. Whilst the ratio was also favourably impacted by the early payment of Financial Assistance Grants in the 2018/19 year, it is noted that Council deferred $5.966m in loan borrowings which unfavourably impacted this measure.

Loans and borrowings as a percentage of rates

Value of interest bearing loans and borrowings at the end of the year divided by rates raised for the year

Moorabool Shire (2018-2019)

32.59%

Similar Councils (2018-2019)

17.22%

All Councils (2018-2019)

16.44%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 51.28% 23.59% 22.66%
2016-2017 43.93% 22.08% 20.75%
2017-2018 37.85% 19.16% 18.05%
2018-2019 32.59% 17.22% 16.44%
2019-2020 55.90% 21.71% 18.18%
2020-2021 48.68% 22.56% 18.97%
2021-2022 34.60% 20.36% 18.12%
2022-2023 35.86% 19.81% 16.91%

Moorabool Shire Council Says...

This ratio was favourably impacted by the deferral of $5.966m in loan borrowings to the 2019/20 financial year. Notwithstanding, the level of loan borrowings is forecast to increase in the medium term. In comparative terms, Moorabool Shire has higher loan borrowings than the state average and that of similar size Councils. This is driven by a couple of factors. Firstly, rapid population growth is fuelling community demand for investment in infrastructure. In addition to this, Moorabool Shire receives significantly less in government grants than other Victorian Councils. As a result, it has a higher reliance on loan borrowings than most other Victorian Councils.

Loans and borrowings repayments as a percentage of rates

Interest bearing loan and borrowing repayments for the year divided by rates raised for the year

Moorabool Shire (2018-2019)

4.99%

Similar Councils (2018-2019)

3.11%

All Councils (2018-2019)

2.68%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 7.46% 4.34% 4.60%
2016-2017 7.17% 3.61% 3.62%
2017-2018 6.33% 4.01% 3.38%
2018-2019 4.99% 3.11% 2.68%
2019-2020 6.37% 5.52% 4.46%
2020-2021 5.28% 2.49% 2.54%
2021-2022 14.93% 4.55% 4.23%
2022-2023 3.22% 2.73% 2.88%

Moorabool Shire Council Says...

This ratio was favourably impacted by the deferral of $5.966m in loan borrowings to the 2019/20 financial year. However, as noted previously, this ratio is forecast to remain high in the medium term. In comparative terms, this ratio is likely to be higher than the state average in the future. Moorabool Shire is compelled to fund infrastructure growth through loan borrowings in lieu of large scale funding support from state and federal governments.

Non-current liabilities as a percentage of own source revenue

Value of non-current liabilities at the end of year (i.e. obligations not due or payable by cash within the next 12 months) divided by total revenue excluding government grants, contributions for capital works and the value of assets received from developers

Moorabool Shire (2018-2019)

25.72%

Similar Councils (2018-2019)

22.53%

All Councils (2018-2019)

17.93%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 44.51% 30.59% 24.65%
2016-2017 37.68% 29.19% 22.64%
2017-2018 29.49% 26.25% 20.63%
2018-2019 25.72% 22.53% 17.93%
2019-2020 45.79% 28.08% 20.75%
2020-2021 30.82% 26.11% 19.58%
2021-2022 29.26% 25.19% 19.64%
2022-2023 30.23% 24.84% 18.92%

Moorabool Shire Council Says...

This ratio was favourably impacted by the deferral of $5.966m in loan borrowings to the 2019/20 financial year. However, as noted previously, this ratio is forecast to remain high in the medium term. In comparative terms, this ratio is likely to be higher than the state average in the future. Moorabool Shire is compelled to fund infrastructure growth through loan borrowings in lieu of large scale funding support from state and federal governments.

Adjusted underlying surplus (or deficit) as a percentage of underlying revenue

Surplus or deficit for the year excluding non-recurrent government grants received for capital purposes, contributions for capital works and the value of assets received from developers divided by total revenue excluding non-recurrent government grants received for capital purposes, contributions for capital works and the value of assets received from developers

Moorabool Shire (2018-2019)

7.96%

Similar Councils (2018-2019)

1.94%

All Councils (2018-2019)

4.24%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 -2.64% -5.76% -1.22%
2016-2017 7.44% 6.87% 9.00%
2017-2018 6.37% 3.23% 4.80%
2018-2019 7.96% 1.94% 4.24%
2019-2020 2.84% -0.96% 0.50%
2020-2021 4.51% 1.98% 2.94%
2021-2022 5.49% 2.35% 3.32%
2022-2023 4.35% 6.45% 4.54%

Moorabool Shire Council Says...

The improvement in this ratio is consistent with the Strategic Financial Plan and demonstrates a continued improvement in the financial sustainability of Moorabool Shire. Moorabool Shires strategic financial plan is forecasting a strong underlying surplus in future years. Moorabool Shire continues to outperform the state average in this measure which is a significant achievement considering it has lower average residential rates and receives lower levels of grant funding than the state average, whilst having to service higher levels of debt in comparative terms to other Victorian Councils.

Rates as a percentage of adjusted underlying revenue

Rates raised for the year divided by total revenue excluding non-recurrent government grants received for capital purposes, contributions for capital works and the value of assets received from developers

Moorabool Shire (2018-2019)

63.91%

Similar Councils (2018-2019)

57.22%

All Councils (2018-2019)

59.45%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 70.41% 63.58% 63.99%
2016-2017 63.31% 55.52% 57.59%
2017-2018 63.71% 58.49% 59.55%
2018-2019 63.91% 57.22% 59.45%
2019-2020 67.60% 62.75% 64.05%
2020-2021 68.34% 62.35% 63.74%
2021-2022 68.66% 62.68% 64.23%
2022-2023 68.72% 61.26% 64.09%

Moorabool Shire Council Says...

Moorabool Shire has a higher level of reliance on rate revenue than other Victorian Councils. This is driven by two main factors. Firstly, as previously mentioned, Moorabool Shire receives significantly lower levels of recurrent funding from state and federal governments on average compared to other Victorian Councils. In addition to this, factors such as geographical size and low population density significantly limit its ability to generate alternative income streams outside of rates and grants.

Rates as a percentage of property values in municipality

Rates raised for the year divided by the total capital improved value (i.e. market value) of all rateable properties

Moorabool Shire (2018-2019)

0.47%

Similar Councils (2018-2019)

0.48%

All Councils (2018-2019)

0.42%

Performance Trend

Reporting Period Moorabool Shire Similar Councils All Councils
2015-2016 0.50% 0.51% 0.53%
2016-2017 0.49% 0.51% 0.45%
2017-2018 0.50% 0.51% 0.46%
2018-2019 0.47% 0.48% 0.42%
2019-2020 0.48% 0.47% 0.42%
2020-2021 0.50% 0.47% 0.42%
2021-2022 0.51% 0.47% 0.43%
2022-2023 0.52% 0.47% 0.43%

Moorabool Shire Council Says...