Meeting papers

                                                       2025/26 Budget Statements                                                               RELEVANT MEASURES OF FINANCIAL SUSTAINABILITY
                                                                                                                                                                                       For the period ending 30 June
                                                                     Target            Original
Indicator (Tier 3)                                                                                                                                        Forecast
                                                                     Tier 3            Budget
Annual Result - Total Council                                                            2026            2027            2028       2029       2030         2031         2032         2033          2034           2035

Operating Performance (continued)

  Operating Cash Ratio (%)                                      Greater than 0%          16.0%          16.4%           17.0%       17.3%      17.7%        17.8%        17.9%        18.1%        18.3%           18.4%

    The operating cash ratio is a measure of a council’s ability to cover its core operational expenses and generate a cash
                                                                                                                                            Operating Result add Depreciation and Amortisation add Finance
    surplus excluding depreciation, amortisation, and finance costs.
                                                                                                                                                                        Costs
    A positive operating cash ratio indicates that a council is generating surplus cash from its core operations, which suggests                                Total Operating Revenue
    that council has the ability to self-fund its capital expenditure requirements.


Liquidity
                                                                 Greater than 3
  Unrestricted Cash Expense Cover Ratio (months)                                          6.6             5.8             4.9        4.3        4.0          3.6          3.3          3.3          3.3             3.4
                                                                    months

    The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to a council to meet
    ongoing and emergent financial demands, which is a key component to solvency. It represents the number of months a                      Total Cash and Equivalents add Current Investments add Available
    council can continue operating based on current monthly expenses.                                                                           Ongoing QTC Working Capital Facility Limit less Externally
                                                                                                                                                                    Restricted Cash                             x 12
    A higher unrestricted cash expense cover ratio indicates that a council has sufficient free cash available to contribute to              Total Operating Expenditure less Depreciation and Amortisation
    the cost of future planned and unplanned expenditures such as infrastructure investment or disaster recovery.                                                 less Finance Costs


                                                                 Greater than 3
  Total Cash expense Cover Ratio (months)                                                 8.1             6.9             6.0        5.4        5.0          4.6          4.3          4.3          4.2             4.3
                                                                    months

    The total cash expense cover ratio is an indicator of the total liquidity available to a council to meet ongoing and emergent
    financial demands, which is a key component to solvency. It represents the number of months a council can continue
    operating based on current monthly expenses.
                                                                                                                                                  Total Cash and Equivalents add Current Investments            x 12
    A higher total cash expense cover ratio indicates that a council has sufficient free cash available to contribute to the cost            Total Operating Expenditure less Depreciation and Amortisation
    of future planned and unplanned expenditures such as infrastructure investment or disaster recovery.                                                          less Finance Costs




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