Business activity reports Business activity reporting illustrates the results for Council’s various business activities in accordance with the National Competition Policy for Local Government. It is designed to reflect the full cost to Council of running these activities, as if Council were competing in a normal commercial environment, where the applicable taxes and competitive pricing principles come into effect. Council operates three distinct business activities being the sewerage network, the Livestock Marketing Centre and the Wagga Wagga Airport.
Sewerage network Council’s sewerage network serviced a permanent population of 65,770 people. The network consists of in excess of 702 kilometres of gravity and pressure mains and 44 permanent pump stations. Last year 5,477 ML of sewerage was transported through the Wagga Wagga Local Government Area sewerage network.
Income p 2.17% to $20.404M Income for sewer for 2020/2021 has increased on the 2019/2020 financial year by 2.17%, or $434K. This is due to annual increases from Sewer Rates and Annual charges.
Expenses q 5.24% to $19.542M Sewer expenditure for 2020/2021 decreased $1.081M from the 2019/2020 financial year. This decrease in expenditure is mainly attributable a decrease in materials and services expenses.
Surplus (deficit) after tax p 205.9% to $4.954M surplus The sewer business achieved a $4.954M surplus result for the 2020/2021 financial year, a 205.9% increase from the 2019/2020 result of $2.406M surplus result. This is mainly due to an increase in capital grants and contributions received and a decrease in operating expenses.
Assets p 2.54% to $326.984M Total assets for the year increased by $8.106M up to $326.984M as a result of increased cash and equivalents as well as asset additions and renewals completed during the year.
Liabilities p 1.15% to $32.887M Liabilities for sewer primarily relate to the principle outstanding for loans for the sewer 2010 project. This increase in liabilities is a result of additional loan borrowings taken out during the 2020/2021 year for sewer projects.
Reserve balance p 16.02% to $29.546M The increase in the Sewer reserve balance for 2020/2021 in reflective of the surplus after tax from the operation of this activity for the financial year. A surplus reserve balance is required to ensure sufficient funds are available in the future for renewal of the sewer network assets.
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WA G G A WA G G A C I T Y C O U N C I L
ANNUAL REPORT 2020/21
