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

Asset Management

  Asset Sustainability Ratio                                  Greater than 80%          104.4%          74.5%         100.8%          114.5%       75.8%         82.2%        79.9%         79.0%        78.1%         77.0%

    The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council are being replaced as they
    reach the end of their useful lives.
                                                                                                                                                   Capital Expenditure on Replacement of Infrastructure Assets
    An asset sustainability ratio close to 100% suggests that a council is spending enough on the renewal of its assets to compensate for the                              (Renewals)
    deterioration in its asset base as loosely proxied by its reported depreciation, with outcomes too far below this level being potentially
    indicative of underspending against capital replacement requirements.                                                                               Depreciation Expenditure on Infrastructure Assets

    Council has achieve target in most years, with several years falling just below target in later years. This is due to the timing of proposed
    renewal projects and some upgrade elements not being included in the ratio calculation. On average over the 10 year period Council is
    achieving a Asset Sustainability Ratio of 85.8%. Further refinement of the renewal program will occur as asset forecasts and capital
    works programs continue to be reviewed and updated.



  Asset Consumption Ratio                                     Greater than 60%          89.5%           88.7%          87.7%          86.6%        85.4%         83.8%        82.2%         80.8%        79.5%         78.1%


    The asset consumption ratio approximates the extent to which council’s infrastructure assets have been consumed compared to what it
    would cost to build a new asset with the same benefit to the community.
                                                                                                                                                   Written Down Replacement Cost of Depreciable Infrastructure
    The minimum target of 60% indicates that a council’s assets are being broadly consumed in line with their estimated useful lives.                                      Assets

                                                                                                                                                            Cost of Depreciable Infrastructure Assets


  Asset Renewal Funding Ratio                                    No Target Set          158.6%


    The asset renewal funding ratio measures the ability of a council to fund its projected infrastructure asset renewal/replacements in the
    future. Ideally, the asset renewal funding ratio should be as close to 100% as possible, as this indicates that a council is appropriately
    funding and delivering the entirety of its required capital program as outlined by its asset management plans.                                 Total of Planned Capital Expenditure on Infrastructure Asset
                                                                                                                                                                     Renewals over 10 years
    Council’s current result demonstrates that asset renewal is occurring; however, it also highlights the importance of regularly reviewing
    and updating Asset Management Plans and long-term forecasts to ensure they are comprehensive and accurately reflect all asset data
                                                                                                                                                   Total of Required Capital Expenditure on Infrastructure Asset
    and renewal requirements.
                                                                                                                                                                      Renewals over 10 years




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