04 Financial Performance Report - Oct 2021

GENERAL COMMITTEE MEETING AGENDA                                  15 NOVEMBER 2021


    Category                                                Comments
    Net Financial Liabilities Ratio                          Intent: Outlines the level
                                                              that net Council debt can
      80%
                   60%                                        be serviced by operating
      60%                                                     revenues. A ratio below
      40%
                                                              zero implies that liabilities
                                                              are less than cash (and
      20%                                                     other current assets) and
       0%                                                     there is adequate
                  Target              Budget   YTD Actual     borrowing capacity
      -20%                             -5%
                                                              available if needed.
      -40%                                                   Target: less than 60%
      -60%                                                   Result: -87%
      -80%                                                   Comment: Council has
                                                              low debt levels and
     -100%                                       -87%
                                                              strong cash holdings.
                                                              Cash received from the
                                                              July rates revenue also
                                                              inflates the YTD actual
                                                              position
    Investment Return                                        Intent: Ensure
                                                              appropriate return on
                                                              investment yield for cash
                                                              at bank.
                                                             Target: 0.25% above
                                                              current Bloomberg
                                                              commonwealth 10 year
                                                              bond rate yield (0.01%)
                                                             Result: 0.38%
                                                             Comment: Regardless of
                                                              the current levels of low
                                                              long term bond and
                                                              interest rates (due to
                                                              current economic
                                                              conditions), Council’s
                                                              investment return still
                                                              remains above target