2016-11-08 S&O Agenda - Item 3, Attachment 1 - Local Economic Plan

Figure 8 – 2015/16 Net Cash Flow Sources ($’000)
  30,000
  25,000
  20,000
  15,000
  10,000
   5,000
      -
 (5,000)
(10,000)
(15,000)
(20,000)
(25,000)
                 Operating Activities           Investing Activities           Financing Activities      Net Movement in
                                                                                                              Cash

    Operating activities depicts the net of income received from rates, interest, grants, etc. and
     payments made to suppliers and employees (net increase).
    Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in
     the form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net
     investment in community infrastructure during the reporting period.
    Financing Activities shows the receipt and repayment of Council borrowings.
    Net Movement in Cash represents the physical movement of cash, with any accounting
     adjustments and accruals removed. The net movement in cash for the year of $1.7 million
     represents the net increase in cash on hand, with all significant outlays fully funded within the
     period.

Financial Ratios
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation.
Ratios can also be useful in comparing Noosa Council to other Councils to gain an understanding
of relative financial strength. This analysis is undertaken annually by the Queensland Treasury
Corporation (QTC) in assessing the financial sustainability of Council.

A number of sustainability ratios are mandated under the Local Government Regulation 2012,
including target ranges for each measure. Details of these ratios are shown below, including
actual results for the current reporting period, plus projections over the next 9 years.

Figure 9 – Financial ratios (actual and forecast)
Period Ended                       30-Jun-16 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 30-Jun-25
Sustainability Ratios
Operating Surplus Ratio
Operating Position                     5.0%       0.4%       0.5%       1.2%       1.6%     1.8%       1.7%     2.0%     2.2%        2.7%
Local Govt Act upper indicator          10%        10%        10%        10%        10%      10%        10%      10%      10%         10%
Net Financial Liabilities Ratio
Net Financial Liabilities Ratio       (1.5)%     12.0%       9.9%       8.8%       5.1%     1.7%      (2.1)%   (5.8)%   (8.9)%     (11.5)%
Local Govt Act upper indicator          60%        60%        60%        60%        60%      60%        60%      60%      60%         60%
Asset Sustainability Ratio
Asset Sustainability Ratio            88.4%     111.0%      99.2%     98.4%        98.5%   97.2%      96.5%    97.7%    100.7%     104.5%
Local Govt Act minimum indicator        90%        90%        90%       90%          90%     90%        90%      90%       90%        90%

                          Notes:    Colour     Within    Moderate   Outside
                                    scale      range                 range




Noosa Council Annual Report 2015/16                                                                                              Page 36