BUDGET REVIEW 2 (BR2) FOR THE 2024/25 FINANCIAL YEAR · Attachment 4 - BR2 Budget Financial Statements 2024-25

                                                                                                                                                                                                  Attachment 4
                                                        2024/25 Budget Statements                                                       RELEVANT MEASURES OF FINANCIAL SUSTAINABILITY
                                                        Budget Review 2                                                                                                          For the period ending 30 June
                                                                  Target
Indicator (Tier 3)                                                                 BR2                                                            Forecast
                                                                  Tier 3
Annual Result - Total Council                                                      2025            2026           2027        2028      2029       2030           2031          2032       2033        2034

Debt Servicing Capacity

  Leverage Ratio                                                0 - 3 times            0.94            1.05            0.95      0.95      0.95        0.88           0.80          0.73        0.65      0.58


    The leverage ratio is an indicator of a council’s ability to repay its existing debt. It measures the relative size of
    the council’s debt to its operating performance.

    A higher leverage ratio indicates an increasingly limited capacity to support additional borrowings due to already                                    Book value of Debt
    high debt levels and/or decreasing operational performance, while a lower ratio indicates the opposite.
                                                                                                                                         Operating Results add Depreciation and Finance Costs



                                                                less than
  Net Liabilities Ratio                                                           (7.0%)           4.7%           6.5%        7.3%      8.4%       6.8%           7.1%          7.7%       6.1%        5.8%
                                                                   60%

    The Net Liabilities Ratio outlines the level that net debt can be serviced by operating revenues.                                             Total Liabilities less Current Assets

    A ratio below zero implies that liabilities are less than cash (and other current assets) and there is adequate                                    Total Operating Revenue
    borrowing capacity available if needed.