2014-01-02 Budget Attachments

Noosa Council                                                                    Original
Measures of Financial Sustainability                                              Budget
For the six months ending 30 June 2014                                          2013/2014
                                                                                        $

Operating Surplus Ratio                                                                 0.0%
Net Financial Liabilities Ratio                                                        20.3%
Asset Sustainability Ratio                                                             30.8%



Operating Surplus Ratio
Measures the extent to which revenues raised cover operational expenses
only or are available for capital funding purposes or other purposes.
Calculation: Net result divided by total operating revenue, expressed as a %.
Target: between 0% and 10%

Net Financial Liabilities Ratio
Measures the extent to which the net financial liabilities of Council can
be repaid from operating revenues.
Calculation: (total liabilities less current assets) divided by
total operating revenue, expressed as a %.
Target: not greater than 60%.

Asset Sustainability Ratio
This ratio reflects the extent to which the infrastructure assets managed by Council
are being replaced as they reach the end of their useful lives.
Calculation: capital expenditure on the replacement of infrastructure assets
(renewals) divided by depreciation expense, expressed as a %.
Target: greater than 90%.