Meeting papers

GENERAL COMMITTEE MEETING                                                    11 DECEMBER 2023



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
performance noting the early stage of the financial year.

 Category                                                      Comments
 Operating Surplus Ratio                                           •   Intent: Identifies the extent
                                                                       to which revenues cover
                                                                       operational expenses, to
                                                                       ensure community equity is
                                                                       not degraded
                                                                   •   Target: 0 – 10%
                                                                   •   Result:19.9%
                                                                   •   Comment:        The     slowly
                                                                       declining ratio reflects the
                                                                       levying of 50% of rates in
                                                                       July and gradual utilisation
                                                                       of    these     monies      as
                                                                       expenditure      occurs    on
                                                                       operations through to the
                                                                       next rate run in January
                                                                       2024 and then through to the
                                                                       end of the financial year at
                                                                       30 June 2024

 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. Note this is calculated
                                                                       based on total cash, and
                                                                       includes both restricted and
                                                                       unrestricted             cash
                                                                       components.
                                                                   •   Target: > 3 months
                                                                   •   Result: 12.6 months
                                                                   •   Comment: Current         cash
                                                                       cover remains above target,
                                                                       while business as usual
                                                                       expenditure through to 30
                                                                       June 2024 will degrade
                                                                       Council’s cash holdings,
                                                                       albeit not below the target
                                                                       range of 3 – 6 months. Cash
                                                                       balance include funding for
                                                                       capital programs, unspent
                                                                       grant monies paid in
                                                                       advance,      Waste      Levy
                                                                       subsidy prepayments and
                                                                       QRA advance payments for
                                                                       disaster projects which are
                                                                       restricted     for     specific
                                                                       purposes and inflate the
                                                                       ratio.




                                                                                               Page 93 of 126