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Port Phillip City

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

Port Phillip City (2019-2020)

$3,142.99

Similar Councils (2019-2020)

$2,773.81

All Councils (2019-2020)

$3,402.81

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 $2,798.66 $2,517.44 $3,076.54
2017-2018 $3,006.31 $2,605.13 $3,173.85
2018-2019 $3,072.16 $2,717.81 $3,322.88
2019-2020 $3,142.99 $2,773.81 $3,402.81
2020-2021 $3,128.32 $2,819.33 $3,387.06
2021-2022 $3,082.36 $2,815.93 $3,325.18
2022-2023 $3,106.11 $2,845.76 $3,361.73
2023-2024 $3,109.31 $2,891.12 $3,407.05

Port Phillip City Council Says...

This result has slightly increased from prior year due to a change in policy recognising rental subsidies provided by Council to tenants, which increased by $7 million from prior year.

Average rate per property assessment

Amount of rates charged on average for each property. New indicator from July 2019. Please refer to retired indicators link for previous results.

Port Phillip City (2019-2020)

$1,754.55

Similar Councils (2019-2020)

$1,794.85

All Councils (2019-2020)

$1,774.72

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2019-2020 $1,754.55 $1,794.85 $1,774.72
2020-2021 $1,754.59 $1,815.05 $1,800.94
2021-2022 $1,776.60 $1,861.38 $1,837.61
2022-2023 $1,802.21 $1,892.63 $1,871.38
2023-2024 $1,831.30 $1,926.30 $1,905.41

Port Phillip City Council Says...

This is a new indicator for the 2019/20 financial year. The current year result is line with expectations and its expected to increase slightly in future years.

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)

Port Phillip City (2019-2020)

360.39%

Similar Councils (2019-2020)

252.00%

All Councils (2019-2020)

291.35%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 231.65% 258.38% 293.07%
2017-2018 265.45% 277.19% 317.53%
2018-2019 267.52% 271.25% 319.74%
2019-2020 360.39% 252.00% 291.35%
2020-2021 228.60% 207.28% 256.19%
2021-2022 234.88% 185.31% 237.21%
2022-2023 228.44% 180.59% 233.01%
2023-2024 237.21% 181.99% 230.24%

Port Phillip City Council Says...

Council can comfortably meet its short term financial commitments. The increase in this ratio from the prior year is largely driven by a reduction in trade and other payables of $10 million. In response to the Covid-19 global pandemic Council commenced paying all suppliers within 7 days. In addition, the assets, finance and procurement modules of the new technology platform went live on 1 July 2020 which required all invoices in the old system to be paid. Cash holdings also increased by $8 million from prior year due to increased rates revenue, and delivery of the 2019/20 capital works program not meeting forecast expectations which was directly impacted by COVID -19. In future years when operations return to optimal levels this ratio is expected to decline as cash is drawn down.

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)

Port Phillip City (2019-2020)

-207.81%

Similar Councils (2019-2020)

77.12%

All Councils (2019-2020)

88.99%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 -41.14% 66.92% 96.18%
2017-2018 -50.19% 79.81% 101.05%
2018-2019 -85.93% 94.64% 94.27%
2019-2020 -207.81% 77.12% 88.99%
2020-2021 -82.07% 81.73% 125.03%
2021-2022 -107.51% 67.89% 113.21%
2022-2023 -112.29% 66.49% 107.84%
2023-2024 -106.04% 67.20% 103.97%

Port Phillip City Council Says...

Councils unrestricted cash ratio has decreased to -207.81% due to surplus funds being placed in longer term investments. These are shown as current financial assets. This has enabled Council to achieve optimal investment returns during a global economic downtown as a result of the COVID-19 pandemic and reflects strong cash management practices. Council has $94.64 million of cash and other financial assets (investments), $74.896 million of which is restricted. This restricted cash will fund the completion of deferred projects in future years, placing Council in a strong position to continue to meet its financial obligations.

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

Port Phillip City (2019-2020)

5.81%

Similar Councils (2019-2020)

12.35%

All Councils (2019-2020)

15.03%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 7.47% 18.25% 20.75%
2017-2018 6.79% 15.69% 18.05%
2018-2019 7.14% 14.57% 16.44%
2019-2020 5.81% 12.35% 15.03%
2020-2021 5.66% 16.32% 20.35%
2021-2022 0.00% 20.70% 20.87%
2022-2023 0.00% 23.02% 20.76%
2023-2024 0.00% 22.63% 19.72%

Port Phillip City Council Says...

From the 2019/20 financial year the new accounting standard for leases (AASB 16) applied to all non-profit entities. This has resulted in lease liabilities (formerly known as Finance leases) recognised separately from other interest bearing loans and borrowings. As a result this ratio has declined slightly reflecting the exclusion of these liabilities. Council has a 7 year fixed interest loan which is due for repayment in the 2021/22 financial year. In accordance with the adopted 10 yea Financial Plan there are no other borrowings planned so the ratio will remain consistent in future years.

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

Port Phillip City (2019-2020)

0.27%

Similar Councils (2019-2020)

3.52%

All Councils (2019-2020)

4.73%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 0.92% 3.05% 3.62%
2017-2018 0.82% 2.97% 3.38%
2018-2019 0.67% 2.35% 2.68%
2019-2020 0.27% 3.52% 4.73%
2020-2021 0.26% 2.96% 3.19%
2021-2022 5.80% 2.99% 4.00%
2022-2023 0.00% 2.84% 3.18%
2023-2024 0.00% 2.61% 2.76%

Port Phillip City Council Says...

From the 2019/20 financial year the new accounting standard for leases (AASB 16) applied to all non-profit entities. This impact of this standard is the recognition of Finance costs for leases (interest repayments) separate to borrowing costs for loans. This resulted in a decline in this ratio due the exclusion of the lease finance costs for the first time. Council has an interest only 7 year fixed rate loan which is due for repayment in the 2021/22 financial year. In accordance with the adopted 10 year Financial Plan there are no other borrowings planned so the ratio will remain consistent in future years.

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

Port Phillip City (2019-2020)

5.52%

Similar Councils (2019-2020)

12.34%

All Councils (2019-2020)

21.38%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 5.85% 14.00% 22.64%
2017-2018 5.25% 12.16% 20.63%
2018-2019 5.29% 10.49% 17.93%
2019-2020 5.52% 12.34% 21.38%
2020-2021 1.50% 14.21% 23.21%
2021-2022 1.57% 17.12% 23.31%
2022-2023 1.56% 18.83% 22.91%
2023-2024 1.59% 18.17% 21.93%

Port Phillip City Council Says...

Council participate in a Workcover self-insurance scheme through the Municipal Association of Victoria. In 2019/20 the scheme advised that as a result of the economic downturn from the COVID-19 global pandemic, the scheme was in shortfall and participants are required to contribute to the recovery over the next five years. Council has recognised their share as a $745,000 non-current liability ($186,000 current liability). This has resulted in a slight increase in this ratio, which will decline in future years as the shortfall is repaid.

Asset renewal and asset upgrade as a percentage of depreciation

Expenditure on renewing existing assets or upgrading assets divided by the amount of depreciation on all assets. New indicator from July 2019. Please refer to retired indicators link for previous results.

Port Phillip City (2019-2020)

72.32%

Similar Councils (2019-2020)

138.09%

All Councils (2019-2020)

115.25%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2019-2020 72.32% 138.09% 115.25%
2020-2021 116.99% 163.92% 145.11%
2021-2022 153.73% 173.59% 127.27%
2022-2023 147.16% 161.22% 117.87%
2023-2024 139.84% 141.66% 111.75%

Port Phillip City Council Says...

Due to deferral and delay of the capital works program in 2019/20 in response to the COVID-19 pandemic Council did not achieve their target on this ratio. This is expected to improve in future years as restrictions ease.

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

Port Phillip City (2019-2020)

-2.89%

Similar Councils (2019-2020)

4.24%

All Councils (2019-2020)

-0.05%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 1.25% 12.63% 9.00%
2017-2018 -3.34% 10.20% 4.80%
2018-2019 -3.37% 9.09% 4.24%
2019-2020 -2.89% 4.24% -0.05%
2020-2021 -10.45% -0.03% -3.27%
2021-2022 -2.43% 5.91% 1.69%
2022-2023 -0.83% 6.80% 1.90%
2023-2024 1.03% 7.00% 2.22%

Port Phillip City Council Says...

This result is negative due to a reduction in recurrent revenue streams which have been directly impacted by COVID-19. In response to the pandemic and to support the community Council provided relief packages which resulted in deferral and waivers of fees and charges. In addition, the Stage 3 restrictions and lockdowns during the State of Emergency resulted in a significant reductions in parking income and income from other Council run programs. The improvement from prior year is attributable offsetting expenditure reductions for bad and doubtful debts and losses on asset disposals. As restrictions ease enabling programs and operations to return to normal, this ratio is expected to improve year on year.

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

Port Phillip City (2019-2020)

57.73%

Similar Councils (2019-2020)

69.00%

All Councils (2019-2020)

61.87%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 58.67% 65.08% 57.59%
2017-2018 57.51% 65.51% 59.55%
2018-2019 57.56% 65.52% 59.45%
2019-2020 57.73% 69.00% 61.87%
2020-2021 62.33% 71.30% 64.72%
2021-2022 59.04% 69.49% 64.15%
2022-2023 58.50% 69.46% 64.63%
2023-2024 58.29% 69.57% 64.81%

Port Phillip City Council Says...

This result is consistent with prior years which indicates that Council sources income from multiple revenue streams, and is not reliant on rates revenue. This will continue in future years.

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

Port Phillip City (2019-2020)

0.19%

Similar Councils (2019-2020)

0.23%

All Councils (2019-2020)

0.41%

Performance Trend

Reporting Period Port Phillip City Similar Councils All Councils
2016-2017 0.20% 0.24% 0.45%
2017-2018 0.20% 0.25% 0.46%
2018-2019 0.18% 0.21% 0.42%
2019-2020 0.19% 0.23% 0.41%
2020-2021 0.19% 0.23% 0.40%
2021-2022 0.20% 0.23% 0.41%
2022-2023 0.20% 0.24% 0.41%
2023-2024 0.21% 0.24% 0.42%

Port Phillip City Council Says...

This result is consistent with prior years indicating increases in rates revenue are in line with the increases in property values.