07 Financial Performance Report - Jan 2025

GENERAL COMMITTEE MEETING                           17 FEBRUARY 2025


Category                          Comments
                                       month as expenditure on
                                       renewals occurs as part of the
                                       capital works program. For
                                       transparency     QRA       disaster
                                       projects have been excluded
                                       from           the            ratio
                                       calculations.    Should capital
                                       works continue to fall forecast for
                                       the remainder of the year this
                                       may impact the achievement of
                                       Council’s asset sustainability and
                                       renewal targets
Net Financial Liabilities Ratio      • Intent: Outlines the level that net
                                       Council debt can be serviced by
                                       operating revenues. A ratio below
                                       zero implies that liabilities are
                                       less than cash (and other current
                                       assets) and there is adequate
                                       borrowing capacity available if
                                       needed.
                                     • Target: less than 60%
                                     • Result: -58.2%
                                     • Comment: Council has low debt
                                       levels and strong cash holdings.
                                       The advance payment of rates,
                                       grants and subsidies also inflates
                                       the YTD actual outcome.
Investment Return                    • Intent: Ensure appropriate return
                                       on investment yield for cash at
                                       bank.
                                     • Target: 0.25% above current
                                       Bloomberg commonwealth 10-
                                       year bond rate yield (4.47%)
                                     • Result: 4.85%
                                     • Comment: With higher-than-
                                          normal cash balances due to
                                          the advance payment of
                                          grants and subsidies and a
                                          delayed capital program,
                                          combined with bond rates
                                          remaining steady, Council has
                                          invested surplus cash in
                                          higher yielding term deposits
                                          to                   maximise
                                          returns. Council’s investment
                                          returns remain above target.
Rates in Arrears                      •   Intent: Ensuring that the amount
                                          of    unpaid    rates    remains
                                          sustainable and does not
                                          negatively impact cash flows
                                      •   Target: 5% industry benchmark
                                      •   Result: 5.1%
                                      •   Comment: Rates arrears are in
                                          line with performance for the
                                          previous 6 and 12 months cycles.