2020-04-30 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                               30 APRIL 2020


Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no current material emerging risks regarding
performance to date for the financial year.

 Category                                                         Comments
 Operating Surplus Ratio                                             Intent: Identifies the extent to
                                                                      which       revenues        cover
                                                                      operational expenses, to ensure
                                                                      community      equity    is    not
                                                                      degraded
                                                                     Target: 0 – 10%
                                                                     Target Date: 30 June
                                                                     Result: 22.4%
                                                                     Comment: The ratio will decline
                                                                      from March to June as January
                                                                      rates are expended on the
                                                                      delivery of Council services, and
                                                                      COVID-19 pandemic financial
                                                                      impacts are realised

 Cash Expense Cover                                                  Intent: Indicates how long
                                                                      council can continue paying its
                                                                      day-to-day expenses from cash
                                                                      at    bank    without    needing
                                                                      additional cash flows
                                                                     Target: > 3 months
                                                                     Target Date: Ongoing
                                                                     Result: 11.5 months
                                                                     Comment: Whilst current cash
                                                                      cover remains above target,
                                                                      business as usual expenditure
                                                                      and      COVID-19      pandemic
                                                                      financial impacts through to 30
                                                                      June 2020 will degrade Council’s
                                                                      cash holdings. Analysis is
                                                                      currently      occurring        to
                                                                      understand COVID-19 pandemic
                                                                      financial           sustainability
                                                                      implications
 Asset Sustainability Ratio                                          Intent: Measures the extent to
                                                                      which assets are being replaced
                                                                      as their condition degrades to
                                                                      ensure service potential is
                                                                      maintained
                                                                     Target: 90% of depreciation
                                                                      budget spent on renewals
                                                                      annually
                                                                     Target Date: 30 June
                                                                     Result: Slightly under budget
                                                                     Comment: The actual result will
                                                                      progressively increase each
                                                                      month as expenditure on
                                                                      renewal projects occurs.



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