Annual Report 2020-21

           Noosa Shire Council


  Financial ratios
  Ratios are useful tools for getting a snapshot of the financial status and trends of an organisation.
  Ratios can also be useful in comparing Noosa Council to other Councils to gain an understanding
  of relative financial strength. This analysis is undertaken periodically by the Queensland Treasury
  Corporation (QTC) in assessing the financial sustainability of Council.
  A number of sustainability ratios are mandated under the Local Government Regulation 2012,
  including target ranges for each measure. Details of these ratios are shown in Figure 11, including
  actual results for the current reporting period plus projections over the next 9 years.

  Figure 11 – Financial Ratios 2020/21 (Actual) to 2029/30 (Forecast)
  Period Ended 30 June                  2021      2022      2023    2024      2025    2026      2027     2028    2029     2030
  Sustainability Ratios
  Operating Surplus Ratio
  Operating Position                   7.5%      (0.6)%        -    0.2%     0.3%     0.2%     0.2%     0.2%     0.2%     0.2%
  Local Govt Act upper indicator       10%         10%      10%     10%      10%      10%      10%      10%      10%      10%

  Net Financial Liabilities Ratio
  Net Financial Liabilities Ratio    (19.9)%     (4.9)%    1.0%    (1.0)%   (3.3)%   (5.8)%   (1.8)%    1.3%    (0.7)%   (5.3)%
  Local Govt Act upper indicator        60%        60%     60%       60%      60%      60%      60%     60%       60%      60%

  Asset Sustainability Ratio
  Asset Sustainability Ratio          83.4%     121.9%    152.9%   95.7%    102.6%   91.3%    128.6%   126.0%   98.1%    88.0%

  Local Govt Act minimum indicator      90%        90%      90%     90%       90%     90%       90%      90%     90%      90%


  Colour Scale:                      Within    Moderate Outside
                                     range               range



  Operating surplus ratio
  Council should be aiming to achieve as a minimum a balanced operating position to ensure that revenues
  received are sufficient to fund operations and capital replacement works. A surplus will be represented by a
  positive result.

  Operating Surplus / (Deficit)                              The 2020/21 operating surplus ratio of 7.5% is a reflection of
                                                             consistent revenue growth along with good management of our
                                                             expenditure. The forecast shows Council’s ongoing commitment
     Total Operating Revenue
                                                             to strong financial management.

  Net financial liabilities ratio
  The target range is less than 60%. A negative percentage indicates that current assets exceed total liabilities
  and is considered a very strong position.

      Net Financial Liabilities
  (Total liabilities less current assets)                    The strong position of (19.9%) at 30 June 2021 indicates that
                                                             Council has the capacity to service higher levels of debt if needed.
     Total Operating Revenue

  Asset sustainability ratio
  This is a measure of whether Council is reinvesting in existing assets to ensure that they meet required levels
  of service for the community.

   Annual Asset Renewal and                                  During 2020/21 Council achieved a ratio of 83.4%. This ratio is
   Rehabilitation Expenditure                                reflective of the efficient delivery of the capital program during
                                                             the year, including an investment of $13 million in the replacement
  Annual Depreciation Charge                                 of infrastructure such as roads, bridges and buildings. This
                                                             result reflects Council’s continued investment in infrastructure
                                                             replacement and adherence to sound asset management
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                                                             principles to maintain levels of service to the community.