2019-11-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                             18 NOVEMBER 2019


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 for the first quarter of 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: 30.2%
                                                                  Comment: The high ratio reflects
                                                                   the levying of rates in July and the
                                                                   gradual degradation as
                                                                   expenditure occurs between
                                                                   August and December 2019


 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 from other sources
                                                                  Target: > 3 months
                                                                  Target Date: Ongoing
                                                                  Result: 10.0 months
                                                                  Comment: Council is forecast to
                                                                   remain above target for the
                                                                   financial year and remain fiscally
                                                                   flexible to accommodate
                                                                   unforeseen events. Peaks will
                                                                   occur following rating periods
 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: It is expected that the
                                                                   ratio will progressively increase
                                                                   each month per previous years as
                                                                   expenditure on renewals occurs.




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