2021-04-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                        12 APRIL 2021


Category                                                                                                                                                                           Comments
Cash Expense Cover                                                                                                                                                                    Intent: Indicates how long
                                     14.0                                                                                                                                              Council can continue paying its
                                                                                                                                                             12.5       12.2           day-to-day expenses from cash
 Months (Cash to Cover Operations)




                                                                                             11.5
                                     12.0                                                               11.1
                                                   10.2
                                                                                                                   10.7
                                                                                                                              10.1
                                                                                                                                                                                       at    bank    without   needing
                                                                                                                                                   9.7
                                     10.0
                                                               9.5
                                                                                   8.7                                                   9.1                                           additional cash flows.
                                                                         8.6
                                                                                                                                                                                      Target: > 3 months
                                      8.0
                                                                                                                                                                                      Result: 12.2 months
                                      6.0
                                                                                                                                                                                      Comment: Whilst current cash
                                      4.0                                                                                                                                              cover remains above target,
                                      2.0
                                                                                                                                                                                       business as usual expenditure
                                                                                                                                                                                       and any other unforeseen
                                          -               -          -         -         -          -          -          -          -         -         -          -          -       financial impacts through to 30
                                                   Apr        May        Jun       Jul       Aug        Sep        Oct        Nov        Dec       Jan       Feb        Mar
                                                                                                                                                                                       June 2021 will degrade Council’s
                                                               Actual                                                               Minimum (>0 months)                                cash holdings.
                                                               Target (3 months)                                                    Maximum (6 months)

Asset Sustainability Ratio                                                                                                                                                            Intent: Measures the extent to
                                     120%                                                                                                                                              which assets are being replaced
                                                                                                                                                               100.1%                  as their condition degrades to
                                     100%                                                                                                                                              ensure service potential is
                                                                                                                                                                         90%           maintained.
                                      80%
                                                                                                                                                                                      Target: 90% of depreciation
                                                                                                                   59% 60% 62%
                                      60%                                                               55%                                                                            budget spent on renewals
                                                                                             45%                                                                                       annually
                                                                                   34%
                                      40%                                29%                                                                                                          Result: In line with budget
                                      20%                      13%                                                                                                                    Comment:        The    ratio will
                                                    1%                                                                                                                                 progressively increase each
                                              0%                                                                                                                                       month as expenditure on asset
                                                    Jul        Aug       Sep       Oct       Nov        Dec        Jan        Feb        Mar       Apr       May        Jun            renewals occurs as part of the
                                                    Actual Renewal Spend (%)                                  Target (%)                   Renewals Budget (%)
                                                                                                                                                                                       capital works program.

Net Financial Liabilities Ratio                                                                                                                                                       Intent: Outlines the level that net
                                                                                                                                                                                       Council debt can be serviced by
                80%
                                                                                                                                                                                       operating revenues. A ratio below
                                                              60%
                60%                                                                                                                                                                    zero implies that liabilities are
                                                                                                                                                                                       less than cash (and other current
                40%                                                                                                                                                                    assets) and there is adequate
                                                                                                                                                                                       borrowing capacity available if
                20%                                                                                                                                                                    needed.
                                                                                                                                                                                      Target: less than 60%
                                     0%
                                                              Target                                    Budget                                 YTD Actual                             Result: -43%
    -20%                                                                                                 -8%                                                                          Comment: Council has low debt
                                                                                                                                                                                       levels and strong cash holdings.
    -40%
                                                                                                                                                                                       The ratio will reduce through to
                                                                                                                                                   -43%
    -60%
                                                                                                                                                                                       June as cash is expended on
                                                                                                                                                                                       capital and operational activities.




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