2020-07-13 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                      13 JULY 2020


Category                           Comments
Cash Expense Cover                    Intent: Indicates how long
                                       council can continue paying its
                                       day-to-day expenses from cash
                                       at bank without needing
                                       additional cash flows
                                      Target: > 3 months
                                      Target Date: Ongoing
                                      Result: 8.5 months
                                      Comment: Cash cover result
                                       for the year is above target due
                                       to the COVID-19 pandemic
                                       financial impacts being offset
                                       through operational savings,
                                       unspent levies and unspent
                                       capital works being carried over
                                       into the 2020/21 year.
Asset Sustainability Ratio            Intent: Measures the extent to
                                       which assets are being replaced
                                       as their condition degrades to
                                       ensure service potential is
                                       maintained
                                      Target: 90% of depreciation
                                       budget spent on renewals
                                       annually
                                      Target Date: 30 June
                                      Result: 93.7%
                                      Comment: Completion of
                                       planned renewal capital works
                                       projects during the year has
                                       ensured that asset sustainability
                                       targets have been achieved for
                                       2019/20.
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%
                                      Target Date: Ongoing
                                      Result: (17.8%)
                                      Comment: Council has low
                                       debt levels and adequate cash
                                       holdings which are reflected in
                                       the annual result.




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