2021-02-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                15 FEBRUARY 2021


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 financial
performance year to date.

 Category                                                                                                                                                                          Comments
 Operating Surplus Ratio                                                                                                                                                              Intent: Identifies the extent to
                                      90%                                                                                                                                              which revenues cover operational
                                      80%
                                                 77.3%                                                                                                                                 expenses, to ensure community
                                      70%
                                                                                                                                                                                       equity is not degraded
                                                         59.1%
                                      60%                                                                                                                                             Target: 0 – 10%
                                      50%                           43.2%                                                                                                             Result: 37.9%
                                                                                                               37.9%
                                      40%                                      30.9%                                                                                                  Comment: The ratio is at the
                                      30%                                                                                                                                              second peak for the year following
                                                                                         15.7%
                                      20%                                                                                                                                              the issue of rates and levies in
                                      10%                                                              4.6%                                                                            January.
                                       0%
                                      -10%
                                                  Jul        Aug        Sep        Oct       Nov       Dec         Jan        Feb        Mar        Apr        May       Jun


                                                         Actual                          Budget                           Minimum                               Target


 Cash Expense Cover                                                                                                                                                                   Intent: Indicates how long
                                      14.0                                                                                                                                             Council can continue paying its
                                                  11.9                                                                                                                                 day-to-day expenses from cash at
  Months (Cash to Cover Operations)




                                                             11.5                                                  11.5
                                      12.0                                                                                    11.1
                                                                        10.2
                                                                                                                                         10.7
                                                                                                                                                    10.1
                                                                                                                                                                                       bank without needing additional
                                                                                   9.5                                                                                   9.7
                                      10.0                                                              8.7                                                    9.1                     cash flows
                                                                                             8.6
                                       8.0
                                                                                                                                                                                      Target: > 3 months
                                                                                                                                                                                      Result: 9.7 months
                                       6.0
                                                                                                                                                                                      Comment: Whilst current cash
                                       4.0                                                                                                                                             cover remains above target,
                                       2.0                                                                                                                                             business as usual expenditure
                                                                                                                                                                                       and any other unforeseen
                                        -                -          -          -         -         -           -          -          -          -          -         -         -
                                                 Feb         Mar        Apr        May       Jun       Jul         Aug        Sep        Oct        Nov        Dec       Jan
                                                                                                                                                                                       financial impacts through to 30
                                                                                                                                                                                       June 2021 will degrade Council’s
                                                             Actual                                                                 Minimum (>0 months)                                cash holdings.
                                                             Target (3 months)                                                      Maximum (6 months)

 Asset Sustainability Ratio                                                                                                                                                           Intent: Measures the extent to
                                      120%                                                                                                                                             which assets are being replaced
                                                                                                                                                                 100.1%                as their condition degrades to
                                      100%                                                                                                                                             ensure service potential is
                                                                                                                                                                          90%          maintained
                                       80%
                                                                                                                                                                                      Target: 90% of depreciation
                                                                                                                   59%
                                       60%                                                             55%                                                                             budget spent on renewals
                                                                                             45%                                                                                       annually
                                                                                   34%
                                       40%                              29%                                                                                                           Result: In line with budget
                                       20%                   13%                                                                                                                      Comment:        The     ratio  will
                                                   1%                                                                                                                                  progressively     increase    each
                                            0%                                                                                                                                         month     as     expenditure    on
                                                   Jul       Aug        Sep        Oct       Nov       Dec         Jan        Feb        Mar        Apr        May       Jun
                                                                                                                                                                                       renewals occurs.
                                                   Actual Renewal Spend (%)                                   Target (%)                    Renewals Budget (%)




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