2021-03-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                           15 MARCH 2021


   Measures of Financial Sustainability
   The following table incorporates a set of financial sustainability indicators to further assist in
   managing Council financial performance. There are no current emerging risks regarding
   financial performance year to date.

    Category                                                                                                                                                                    Comments
    Operating Surplus Ratio                                                                                                                                                     •   Intent: Identifies the extent
                                         90%                                                                                                                                        to which revenues cover
                                         80%
                                                77.3%                                                                                                                               operational expenses, to
                                         70%
                                                                                                                                                                                    ensure community equity is
                                         60%
                                                        59.1%                                                                                                                       not degraded.
                                         50%                       43.2%                                                                                                        •   Target: 0 – 10%
                                                                                                            37.9%
                                         40%                                 30.9%                                     30.7%                                                    •   Result: 30.7%
                                         30%                                                                                                                                    •   Comment: The ratio will
                                                                                       15.7%
                                         20%                                                                                                                                        decline from February to
                                         10%                                                         4.6%                                                                           June as the January rates
                                          0%                                                                                                                                        is expended on delivery of
                                         -10%                                                                                                                                       Council services.
                                                 Jul        Aug        Sep       Oct       Nov       Dec        Jan        Feb        Mar        Apr       May       Jun


                                                        Actual                         Budget                          Minimum                              Target


    Cash Expense Cover                                                                                                                                                          •   Intent: Indicates how long
                                         14.0                                                                                                                                       Council     can     continue
                                                                                                                                                                     12.5
                                                                                                                                                                                    paying     its    day-to-day
     Months (Cash to Cover Operations)




                                                 11.5                                                11.5
                                         12.0                                                                   11.1       10.7                                                     expenses from cash at
                                                            10.2                                                                      10.1
                                                                       9.5                                                                                 9.7                      bank     without    needing
                                         10.0                                              8.7                                                   9.1
                                                                                 8.6
                                                                                                                                                                                    additional cash flows.
                                          8.0
                                                                                                                                                                                •   Target: > 3 months
                                          6.0                                                                                                                                   •   Result: 12.5 months
                                          4.0                                                                                                                                   •   Comment: Whilst current
                                                                                                                                                                                    cash cover remains above
                                          2.0
                                                                                                                                                                                    target, business as usual
                                           -            -          -         -         -         -          -          -          -          -         -         -          -       expenditure and any other
                                                 Mar        Apr        May       Jun       Jul       Aug        Sep        Oct        Nov        Dec       Jan       Feb            unforeseen          financial
                                                            Actual                                                               Minimum (>0 months)                                impacts through to 30 June
                                                            Target (3 months)                                                    Maximum (6 months)                                 2021 will degrade Council’s
                                                                                                                                                                                    cash holdings.
    Asset Sustainability Ratio                                                                                                                                                  •   Intent:    Measures      the
                                         120%                                                                                                                                       extent to which assets are
                                                                                                                                                             100.1%                 being replaced as their
                                         100%                                                                                                                                       condition     degrades    to
                                                                                                                                                                      90%           ensure service potential is
                                          80%                                                                                                                                       maintained.
                                                                                                                59% 60%                                                         •   Target:        90%         of
                                          60%                                                        55%
                                                                                           45%                                                                                      depreciation budget spent
                                          40%                          29%
                                                                                 34%                                                                                                on renewals annually
                                                                                                                                                                                •   Result: In line with budget
                                          20%               13%
                                                                                                                                                                                •   Comment: The ratio will
                                                  1%
                                           0%                                                                                                                                       progressively       increase
                                                  Jul       Aug        Sep       Oct       Nov       Dec        Jan        Feb        Mar        Apr       May       Jun            each month as expenditure
                                                                                                                                                                                    on renewals occurs.
                                                  Actual Renewal Spend (%)                                 Target (%)                    Renewals Budget (%)




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