Financial Performance Report – February 2025 · Financial Performance Report

GENERAL COMMITTEE MEETING                                  17 MARCH 2025


Category                          Comments
                                     occurring in January 2025.Cash
                                     reserves also include working capital
                                     requirements and 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.

Asset Sustainability Ratio        •   Intent: Measures the extent to which
                                      assets are being replaced as their
                                      condition degrades to ensure service
                                      potential is maintained.
                                  •   Target: 80% of depreciation budget
                                      spent on renewals annually.
                                  •   Result: 51.7% achieved, however
                                      below forecast result due to project
                                      delays and scheduling.
                                  •   Comment: The ratio will progressively
                                      increases each month as expenditure
                                      on renewals occurs as part of the
                                      capital     works     program.      For
                                      transparency QRA disaster projects
                                      have been excluded from the ratio
                                      calculations. Should capital works
                                      continue to fall below forecast for the
                                      remainder of the year this may impact
                                      the achievement of Council’s asset
                                      sustainability and renewal targets

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%
                                  •   Result: -49.0%
                                  •   Comment: Council has low debt
                                      levels and strong cash holdings. The
                                      advance payment of rates, grants and
                                      subsidies also inflates the YTD actual
                                      outcome.

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 (4.47%)
                                  •   Result: 4.38%
                                  •   Comment: With cash reserves at
                                      the peak of the cycle, with the
                                      second bi-annual rates issue in
                                      January, the calculated rolling
                                      return is showing slightly below
                                      target. As cash reserves are