2022-02-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                             14 FEBRUARY 2022


Category                                                                                                                                                                          Comments
Operating Surplus Ratio                                                                                                                                                           • Intent: Identifies the extent to
                                      90%   82.6%
                                                                                                                                                                                    which       revenues        cover
                                      80%
                                                                                                                                                                                    operational expenses, to ensure
                                      70%
                                                                                                                                                                                    community      equity    is   not
                                                         60.9%
                                                                                                                                                                                    degraded
                                      60%
                                      50%                          44.5%                                                                                                          • Target: 0 – 10%
                                                                                                            39.0%
                                      40%                                     30.5%
                                                                                                                                                                                  • Result: 39.0%
                                      30%                                                                                                                                         • Comment: The ratio is at the
                                                                                         18.3%
                                      20%
                                                                                                    8.3%
                                                                                                                                                                                    second peak for the year
                                      10%                                                                                                                                           following the issue of rates and
                                       0%                                                                                                                                           levies in January. This ratio will
                                     -10%                                                                                                                                           slowly decline as expenditure on
                                             Jul        Aug        Sep        Oct        Nov        Dec         Jan        Feb        Mar        Apr        May        Jun          operations occurs through to the
                                                                                                                                                                                    end of the financial year at 30
                                                              Actual                                   Budget                                      Target                           June 2022.

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 cash
 Months (Cash to Cover Operations)




                                                                   11.6                                                                          11.8
                                     12.0                                     10.9                                                                          10.8       11.2         at bank without needing
                                                                                         10.1       10.4
                                     10.0
                                                                                                                                                                                    additional cash flows
                                                                                                                                                                                  • Target: > 3 months
                                      8.0
                                                                                                                                                                                  • Result: 11.2 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
                                            Feb         Mar        Apr        May        Jun         Jul        Aug        Sep        Oct        Nov        Dec        Jan          diminish     Council’s     cash
                                                                                                                                                                                    holdings, albeit not below the
                                                         Actual                                                                   Minimum (>0 months)
                                                         Target (3 months)                                                        Maximum (6 months)                                target range of 3 – 6 months.

Asset Sustainability Ratio                                                                                                                                                        • Intent: Measures the extent to
                                     140%                                                                                                                          130.1%
                                                                                                                                                                                    which assets are being replaced
                                                                                                                                                                                    as their condition degrades to
                                     120%                                                                                                                                           ensure service potential is
                                     100%
                                                                                                                                                                                    maintained
                                                                                                                                                                        90%       • Target: 90% of depreciation
                                     80%
                                                                                                                                                                                    budget spent on renewals
                                     60%                                                                                                                                            annually
                                                                                                31.6% 37.3%                                                                       • Result: In line with budget
                                     40%                                       26.3%
                                                                          17.2%
                                                                                                                                                                                  • Comment: Construction on
                                     20%
                                                    6.5% 10.1%                                                                                                                      renewal projects slowed over
                                            0.9%                                                                                                                                    the holiday period resulting in a
                                      0%
                                            Jul         Aug        Sep        Oct        Nov     Dec            Jan    Feb        Mar        Apr        May        Jun              slight deviation to budget YTD.
                                                                                                                                                                                    The capital works program
                                               Actual Renewal Spend (%)                                    Target (%)                    Renewals Budget (%)                        remains on track and this ratio
                                                                                                                                                                                    will continue to increase each
                                                                                                                                                                                    month as expenditure on
                                                                                                                                                                                    renewals occurs.




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