03 Financial Performance Report - Sep 2021

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                  18 OCTOBER 2021



Category                                                                                                                                                                          Comments
Operating Surplus Ratio                                                                                                                                                           •   Intent: Identifies the extent to
                                     90% 82.6%                                                                                                                                        which revenues cover operational
                                     80%                                                                                                                                              expenses, to ensure community
                                     70%                                                                                                                                              equity is not degraded
                                                       60.9%
                                     60%                                                                                                                                          •   Target: 0 – 10%
                                     50%                          44.5%
                                                                                                                                                                                  •   Result: 44.5%
                                     40%
                                                                                                                                                                                  •   Comment: The high ratio reflects
                                     30%
                                                                                                                                                                                      the levying of rates in July, which
                                     20%
                                                                                                                                                                                      will degrade as expenditure
                                     10%
                                                                                                                                                                                      occurs on operations through to
                                      0%
                                                                                                                                                                                      the next rate run in January 2022
                                     -10%
                                                Jul        Aug        Sep       Oct       Nov        Dec        Jan        Feb        Mar        Apr        May        Jun
                                                                                                                                                                                      and end of the financial year at 30
                                                                                                                                                                                      June 2022
                                                                 Actual                                Budget                                      Target


Cash Expense Cover                                                                                                                                                                •   Intent: Indicates how long council
                                     14.0                                                                                                                   12.8
                                                                                                                                                                                      can continue paying its day-to-
                                                                                          12.5       12.2                                                              12.5
                                                                                                                                                                                      day expenses from cash at bank
 Months (Cash to Cover Operations)




                                                                                                                11.6
                                     12.0                                                                                  10.9
                                                10.7
                                                           10.1                                                                       10.1       10.4                                 without needing additional cash
                                                                                9.7
                                     10.0                             9.1                                                                                                             flows
                                      8.0
                                                                                                                                                                                  •   Target: > 3 months
                                                                                                                                                                                  •   Result: 12.5 months
                                      6.0
                                                                                                                                                                                  •   Comment: Whilst current cash
                                      4.0                                                                                                                                             cover remains above target,
                                      2.0                                                                                                                                             business as usual expenditure
                                                                                                                                                                                      through to 30 June 2022 will
                                       -
                                                Oct
                                                       -
                                                           Nov
                                                                  -
                                                                      Dec
                                                                            -
                                                                                Jan
                                                                                      -
                                                                                          Feb
                                                                                                 -
                                                                                                     Mar
                                                                                                            -
                                                                                                                Apr
                                                                                                                       -
                                                                                                                           May
                                                                                                                                  -
                                                                                                                                      Jun
                                                                                                                                             -
                                                                                                                                                 Jul
                                                                                                                                                        -
                                                                                                                                                            Aug
                                                                                                                                                                   -
                                                                                                                                                                       Sep
                                                                                                                                                                              -
                                                                                                                                                                                      degrade Council’s cash holdings,
                                                                                                                                                                                      albeit not below the target range
                                                           Actual                                                                Minimum (>0 months)                                  of 3 – 6 months.
                                                           Target (3 months)                                                     Maximum (6 months)

Asset Sustainability Ratio                                                                                                                                                        •   Intent: Measures the extent to
                                     140%                                                                                                                                             which assets are being replaced
                                                                                                                                                                   121.9%             as their condition degrades to
                                     120%
                                                                                                                                                                                      ensure service potential is
                                     100%                                                                                                                                             maintained
                                      80%
                                                                                                                                                                        90%
                                                                                                                                                                                  •   Target: 90% of depreciation
                                                                                                                                                                                      budget spent on renewals
                                      60%                                                                                                                                             annually
                                      40%                                                                                                                                         •   Result: In line with budget
                                      20%
                                                                                                                                                                                  •   Comment:        The     ratio  will
                                                           6.5% 10.1%                                                                                                                 progressively     increase    each
                                                0.9%
                                           0%                                                                                                                                         month     as     expenditure    on
                                                 Jul       Aug        Sep       Oct       Nov        Dec        Jan        Feb        Mar        Apr        May        Jun
                                                                                                                                                                                      renewals occurs as part of the
                                                 Actual Renewal Spend (%)                                  Target (%)                    Renewals Budget (%)                          capital works program.