01 Financial Performance Report - Jul 2021

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                  16 AUGUST 2021


 Category                                                                                                                                     Comments
 Net Financial Liabilities Ratio                                                                                                                 Intent: Outlines the level that net
                                                                                                                                                  Council debt can be serviced by
                100%
                                                                                                                                                  operating revenues. A ratio below
                                                              60%
                                                                                                                                                  zero implies that liabilities are less
                                     50%
                                                                                                                                                  than cash (and other current
                                                                                                                                                  assets) and there is adequate
                                           0%                                                                                                     borrowing capacity available if
                                                             Target                         Budget                       YTD Actual
                                                                                             -8%                                                  needed.
                        -50%
                                                                                                                                                 Target: less than 60%
                                                                                                                                                 Result: -151%
   -100%
                                                                                                                                                 Comment: Council has low debt
                                                                                                                                                  levels and strong cash holdings.
   -150%
                                                                                                                           -151%                  The July rates revenue also
                                                                                                                                                  inflates the YTD actual outcome
   -200%


 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 (0.04%)
                                                                                                                                                 Result: 0.48%
                                                                                                                                                 Comment: Regardless of the
                                                                                                                                                  current levels of low long term
                                                                                                                                                  bond and interest rates (due to
                                                                                                                                                  current economic conditions),
                                                                                                                                                  Council’s investment return still
                                                                                                                                                  remains above target
 Rates in Arrears                                                                                                                                Intent: Ensuring that the amount
                                                                                                                                                  of    unpaid    rates     remains
                                            12.0%
   Percentage of Annual Rates in Arrears




                                                                                                                                                  sustainable    and    does    not
                                                              9.6%                                         9.5%                                   negatively impact cash flows
                                            10.0%
                                                                                                                                                 Target: 5% industry benchmark
                                                8.0%                  7.1%                                        7.4%
                                                                             6.0% 5.8% 5.7%                              6.2%                    Result: 5.2%
                                                                                                                                5.7%
                                                6.0%                                               5.0%                                5.2%      Comment: Rates arrears are in
                                                       4.5%
                                                                                                                                                  line with performance for the
                                                4.0%
                                                                                                                                                  previous 6 and 12 monthly cycles.
                                                2.0%

                                                0.0%
                                                       Aug     Sep    Oct    Nov    Dec      Jan     Feb   Mar    Apr     May   Jun    Jul

                                                                                   Actual             Target




Previous Council Consideration
Nil.

Finance
As above.

Risks & Opportunities
Council’s risk register includes a number of risks that could impact on ongoing financial sustainability.
Effective budget management and reporting is an important risk mitigation tool.