Financial Performance Report – Jun 2025 · Financial Performance Report

GENERAL COMMITTEE MEETING                               14 JULY 2025


Category                          Comments
                                       disaster projects have been
                                       excluded from the ratio
                                       calculations.


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: -36.2%
                                      •   Comment: Council has low
                                          debt levels and strong cash
                                          holdings which are reflected
                                          in the annual result.
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 (4.39%)
                                     •    Result: 4.71%
                                     •    Comment: 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: 4.9%
                                      •   Comment: Rates arrears
                                          are in line with performance
                                          for the previous 6 and 12
                                          monthly cycles. Recovery
                                          action may be considered
                                          where appropriate.