Financial Performance Report – Jun 2025 · Financial Performance Report

GENERAL COMMITTEE MEETING                          14 JULY 2025


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: 5.1%
                                •   Comment: With the second
                                    rates cycle occurring 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: 11.1 months
                                •   Comment: Cash cover
                                    remains above target, while
                                    business        as        usual
                                    expenditure through to 30
                                    June 2025 will degrade
                                    Council’s cash holdings,
                                    albeit not below the target
                                    range of 3 – 6 months.
                                    Cash      balances     include
                                    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: 80.7% achieved,
                                    however below forecast
                                    result due to project delays
                                    and scheduling.
                                •   Comment:         The       ratio
                                    progressively       increases
                                    each month as expenditure
                                    on renewals occurs as part
                                    of the capital works program.
                                    For     transparency      QRA