07 Financial Performance Report - Jan 2025

GENERAL COMMITTEE MEETING                                                   17 FEBRUARY 2025


performance identified at this stage, however the delay in the delivery of the capital program
may impact Council’s asset sustainability and renewal targets.

 Category                                               Comments
 Operating Surplus Ratio                                    •    Intent: Identifies the extent to
                                                                 which         revenues        cover
                                                                 operational expenses, to ensure
                                                                 community        equity   is     not
                                                                 degraded
                                                             • Target: Greater than 0%
                                                             • Result: 38.2%
                                                             • Comment: The ratio is at the
                                                                 second peak for the year
                                                                 following the issue of rates in
                                                                 January. This ratio will slowly
                                                                 decline as expenditure on
                                                                 operations occurs through to the
                                                                 end of the financial year at 30
                                                                 June 2025.
 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
                                                             • Result: 11.5 months
                                                              • Comment: Council is forecast to
                                                                   remain above target for the
                                                                   financial year. Business as usual
                                                                   expenditure through to 30 June
                                                                   2023 will continue to diminish
                                                                   Council’s cash holdings, albeit
                                                                   not below the target range of 3 –
                                                                   6 months.
                                                            Cash balances include working
                                                            capital requirements and funding for
                                                            capital programs, unspent grant
                                                            monies paid in advance, Waste Levy
                                                            subsidy prepayments and QRA
                                                            advance payments for disaster
                                                            projects which are restricted for
                                                            specific purposes and inflate the
                                                            ratio.

 Asset Sustainability Ratio                                 •   Intent: Measures the extent to
                                                                which assets are being replaced
                                                                as their condition degrades to
                                                                ensure service potential is
                                                                maintained
                                                            •   Target: 80% of depreciation
                                                                budget spent on renewals
                                                                annually
                                                            •   Result: 42.8%         achieved,
                                                                however below forecast result
                                                                due to project delays and
                                                                scheduling.
                                                            •   Comment: The       ratio    will
                                                                progressively increases each