06 Financial Performance Report - Dec 2021

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                              17 JANUARY 2022


Category                                                                                                                                                                          Comments
Cash Expense Cover                                                                                                                                                                • Intent: Indicates how long
                                     14.0                                                                                                                                           council can continue paying its
                                                         12.5                                                              12.8       12.5
                                                                    12.2                                                                         11.9                               day-to-day expenses from
 Months (Cash to Cover Operations)




                                                                               11.6                                                                         11.8
                                     12.0                                                 10.9                                                                         10.8         cash at bank without needing
                                                                                                     10.1       10.4
                                               9.7
                                     10.0                                                                                                                                           additional cash flows
                                                                                                                                                                                  • Target: > 3 months
                                      8.0
                                                                                                                                                                                  • Result: 10.8 months
                                      6.0
                                                                                                                                                                                  • Comment: Council is forecast
                                      4.0                                                                                                                                           to remain above target for the
                                                                                                                                                                                    financial year. Business as
                                      2.0
                                                                                                                                                                                    usual expenditure through to
                                          -          -          -          -          -          -          -          -          -          -          -          -          -     30 June 2022 will continue to
                                              Jan        Feb        Mar        Apr        May        Jun         Jul       Aug        Sep        Oct        Nov        Dec
                                                                                                                                                                                    diminish Council’s cash
                                                          Actual                                                                  Minimum (>0 months)                               holdings, albeit not below the
                                                          Target (3 months)                                                       Maximum (6 months)                                target range of 3 – 6 months.

Asset Sustainability Ratio                                                                                                                                                        • Intent: Measures the extent to
                                     140%                                                                                                                                           which assets are being
                                                                                                                                                                       121.9%       replaced as their condition
                                     120%
                                                                                                                                                                                    degrades to ensure service
                                     100%                                                                                                                                           potential is maintained
                                                                                                                                                                         90%      • Target: 90% of depreciation
                                     80%
                                                                                                                                                                                    budget spent on renewals
                                     60%                                                                                                                                            annually
                                     40%
                                                                                                 31.6%
                                                                                                                                                                                  • Result: In line with budget
                                                                                26.3%
                                                                           17.2%                                                                                                  • Comment: It is expected that
                                     20%
                                                     6.5% 10.1%                                                                                                                     the ratio will progressively
                                              0.9%
                                      0%                                                                                                                                            increase each month as
                                              Jul        Aug        Sep        Oct        Nov        Dec        Jan    Feb         Mar       Apr        May        Jun              expenditure on renewals
                                                                                                                                                                                    occurs as part of the capital
                                                 Actual Renewal Spend (%)                                  Target (%)                    Renewals Budget (%)
                                                                                                                                                                                    works program.

Net Financial Liabilities Ratio                                                                                                                                                   • Intent: Outlines the level that
                                                                                                                                                                                    net Council debt can be
               80%
                                                         60%
                                                                                                                                                                                    serviced by operating
               60%                                                                                                                                                                  revenues. A ratio below zero
                                                                                                                                                                                    implies that liabilities are less
               40%                                                                                                                                                                  than cash (and other current
               20%
                                                                                                                                                                                    assets) and there is adequate
                                                                                                                                                                                    borrowing capacity available if
                                     0%                                                                                                                                             needed.
                                                     Target                                          Budget                                 YTD Actual                            • Target: less than 60%
   -20%
                                                                                                      -5%                                                                         • Result: -55%
   -40%
                                                                                                                                                                                  • Comment: Council has low
   -60%
                                                                                                                                                                                    debt levels and strong cash
                                                                                                                                                 -55%                               holdings. Cash received from
   -80%                                                                                                                                                                             the July rates revenue also
                                                                                                                                                                                    inflates the YTD actual
                                                                                                                                                                                    position.