2020-10-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                               12 OCTOBER 2020


   Borrowings
   Following the announcement by the State Government that councils have the option to
   refinance its debt to take advantage of a low interest rate environment a debt restructure
   review has been commissioned with the Queensland Treasury Corporation. Once the review
   has been completed a report will be provided to a future Council meeting outlining the
   findings and potentially recommending any actions that provides a positive net benefit to
   ratepayers.
   Measures of Financial Sustainability
   The following table incorporates a set of financial sustainability indicators to further assist in
   managing Council financial performance. There are no current emerging risks regarding
   performance noting the financial year has only just commenced.

    Category                                                              Comments
    Operating Surplus Ratio                                              Intent: Identifies the extent
                                                                          to which revenues cover
                                                                          operational expenses, to
                                                                          ensure community equity is
                                                                          not degraded
                                                                         Target: 0 – 10%
                                                                         Result: 43.1%
                                                                         Comment: The high ratio
                                                                          reflects the levying of rates
                                                                          in July, which is degrading
                                                                          as expenditure occurs on
                                                                          operations through to the
                                                                          next rate run in January
                                                                          2021


    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: Whilst current
                                                                          cash cover remains above
                                                                          target, business as usual
                                                                          expenditure and any other
                                                                          unforseen financial impacts
                                                                          through to 30 June 2021 will
                                                                          degrade Council’s cash
                                                                          holdings.




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