01 Financial Performance Report - Jul 2023

GENERAL COMMITTEE MEETING                            14 AUGUST 2023


Category                          Comments
                                     •   Comment: The            capital
                                         program     has    only    just
                                         commenced. It is expected that
                                         the ratio will progressively
                                         increase each month as
                                         expenditure    on    renewals
                                         occurs.




Net Financial Liabilities Ratio      •   Intent: Outlines the level that
                                         net Council debt can be
                                         serviced       by       operating
                                         revenues. A ratio below zero
                                         implies that liabilities are less
                                         than cash (and other current
                                         assets) and there is adequate
                                         borrowing capacity available if
                                         needed.
                                     •   Target: less than 60%
                                     •   Result: -173.9%
                                     •   Comment: Council has low
                                         debt levels and strong cash
                                         holdings. The July rates
                                         revenue also inflates the YTD
                                         actual outcome.
Investment Return                    •   Intent: Ensure        appropriate
                                         return on investment yield for
                                         cash at bank.
                                     •   Target: 0.25% above current
                                         Bloomberg commonwealth 10-
                                         year bond rate yield (4.48%)
                                     •   Result: 4.95%
                                     •   Comment: With bond rates
                                         rising, Council has invested
                                         surplus cash in higher yielding
                                         term deposits to maximise
                                         returns. Council’s investment
                                         returns remain above target.




Rates in Arrears                     •   Intent: Ensuring     that    the
                                         amount of unpaid rates
                                         remains sustainable and does
                                         not negatively impact cash
                                         flows
                                     •   Target: 5%              industry
                                         benchmark
                                     •   Result: 4.8%
                                     •   Comment: Rates arrears are
                                         in line with performance for the