How Gladstone Council’s net worth rose by $238m
GLADSTONE Regional Council's net worth increased by $238 million to $2.3 billion, its annual report has revealed.
At last week's general meeting, councillors voted unanimously to adopt the 2019/2020 annual report, which details council's operating and financial position.
The report showed council was below target on key performance indicators in 56 per cent of its projects in the financial year operational plan, largely due to the impact of COVID.
"The 2019/20 Operational Plan presented a total of 102 projects and 16 Key Performance
Indicators (KPIs) which delivered on the three vision intentions from Council's 2018-2023
Corporate Plan," the report stated.
Last financial year the council's operating revenue was $199 million but it had a total operating expenditure of $201.7m.
Council's operating costs increased by $10.5m (6 per cent), of which employee benefits increased by 14 per cent and materials and services by four per cent.
Following a 2018/2019 operating profit of $10.2m, the annual report revealed an operating loss of $2.7m for the 2019/2020 financial year.
Despite this turnaround of $12.9m in yearly profit, the council's managed assets increased in value by a huge $243.7m, to a massive $2.5 billion.
Of this $2.5 billion in managed assets, 94 per cent is property, plant and equipment, four per cent is cash and cash equivalents, and one per cent each are trade and other receivables, and other assets.
The council has total liabilities of $156.2m, made up of loans, amounts owed to suppliers, lease liabilities, contract liabilities, provisions for employee leave entitlements and restoration of the Benaraby Landfill.
The council's total liabilities increased by $5.6m in 2019-2020 over the previous financial year.
"Council's single largest liability is its interest bearing loans with Queensland Treasury Corporation at $105.5m," the annual report stated.
During 2019-2020 council reduced this debt by $9.3m.
The other largest liability council owed was an interest-free loan from the Department of Local Government, Racing and Multicultural Affairs of $4.1m, down $0.6m from the previous financial year.
Both Mayor Matt Burnett and CEO Leisa Dowling acknowledged the challenges presented by COVID to council's operations and finances.
"COVID-19 has disrupted everyone at some level, but as political, community and medical
leaders stressed, we all must work together to defeat this ongoing threat, until a safe vaccine
is available." Mayor Matt Burnett said in his mayoral message.
During the last financial year, the annual report showed there were 325 Administrative Action Complaints against the council, of which 294 were resolved and 31 remain unresolved.
"An Administrative Action Complaint (AAC) is defined in the Local Government Act 2009 as a complaint that is about an administrative action of a local government and is made by an Affected Person," the annual report states.