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

Debt Servicing Capacity

  Leverage Ratio                                                     0 - 3 times                 1.13            1.36            1.36      1.41      1.36         1.24           1.12          1.01        0.89            0.79

    The leverage ratio is an indicator of a council’s ability to repay its existing debt. It measures the relative size of the
    council’s debt to its operating performance.

    A higher leverage ratio indicates an increasingly limited capacity to support additional borrowings due to already high debt                                      Book value of Debt
    levels and/or decreasing operational performance, while a lower ratio indicates the opposite.
                                                                                                                                                    Operating Results add Depreciation and Finance Costs



  Net Liabilities Ratio                                            less than 60%            0.2%            11.3%           16.9%       21.6%     22.5%       22.4%         21.4%          18.7%      16.5%           13.2%

    The Net Liabilities Ratio outlines the level that net debt can be serviced by operating revenues.                                                        Total Liabilities less Current Assets

    A ratio below zero implies that liabilities are less than cash (and other current assets) and there is adequate borrowing                                     Total Operating Revenue
    capacity available if needed.




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