2019-10-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                    14 OCTOBER 2019


Category                           Comments
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: 11.6 months
                                      Comment: Council is forecast to
                                        remain above target for the
                                        financial year whilst remaining
                                        financially       flexible      to
                                        accommodate             unforeseen
                                        events.



Asset Sustainability Ratio            Intent: Measures the extent to
                                        which assets are being replaced
                                        as their condition degrades to
                                        ensure service potential is
                                        maintained
                                      Target: 90% of depreciation
                                        budget spent on renewals
                                        annually
                                      Result: Slightly under budget
                                      Comment: It is expected that
                                        the ratio will progressively
                                        increase    each    month     per
                                        previous years as expenditure
                                        on renewals occurs.
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: - 41.1% YTD
                                      Comment: Council has low debt
                                        levels and strong cash holdings.
                                        The cash received from the July
                                        rates issue also inflates the YTD
                                        actual outcome




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