2021-09-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                13 SEPTEMBER 2021


Category                                                                                                                                                                          Comments
Cash Expense Cover                                                                                                                                                                   Intent: Indicates how long council
                                     14.0                                                                                                                                             can continue paying its day-to-
                                                                                                     12.5                                                              12.8
                                                                                                                12.2                                                                  day expenses from cash at bank
 Months (Cash to Cover Operations)




                                                                                                                           11.6
                                     12.0       11.1       10.7                                                                       10.9                                            without needing additional cash
                                                                      10.1                                                                       10.1       10.4
                                                                                           9.7                                                                                        flows
                                     10.0                                        9.1
                                                                                                                                                                                     Target: > 3 months
                                      8.0
                                                                                                                                                                                     Result: 12.8 months
                                      6.0
                                                                                                                                                                                     Comment: Whilst current cash
                                      4.0                                                                                                                                             cover remains above target,
                                                                                                                                                                                      business as usual expenditure
                                      2.0
                                                                                                                                                                                      through to 30 June 2022 will
                                       -               -          -          -         -         -          -          -          -          -          -          -          -       degrade Council’s cash holdings,
                                                Sep        Oct        Nov        Dec       Jan       Feb        Mar        Apr        May        Jun        Jul        Aug            albeit not below the target range
                                                           Actual                                                                Minimum (>0 months)                                  of 3 – 6 months.
                                                           Target (3 months)                                                     Maximum (6 months)

Asset Sustainability Ratio                                                                                                                                                           Intent: Measures the extent to
                                      140%                                                                                                                                            which assets are being replaced
                                                                                                                                                                   121.9%             as their condition degrades to
                                      120%
                                                                                                                                                                                      ensure service potential is
                                      100%                                                                                                                                            maintained
                                                                                                                                                                        90%          Target: 90% of depreciation
                                      80%
                                                                                                                                                                                      budget spent on renewals
                                      60%                                                                                                                                             annually
                                      40%
                                                                                                                                                                                     Result: In line with budget
                                                                                                                                                                                     Comment: The capital program
                                      20%                                                                                                                                             has only just commenced. It is
                                                           6.5%
                                                0.9%
                                           0%                                                                                                                                         expected that the ratio will
                                                 Jul       Aug        Sep        Oct       Nov       Dec        Jan        Feb        Mar        Apr        May        Jun            progressively     increase   each
                                                                                                                                                                                      month     as     expenditure   on
                                                 Actual Renewal Spend (%)                                  Target (%)                    Renewals Budget (%)
                                                                                                                                                                                      renewals occurs.
Net Financial Liabilities Ratio                                                                                                                                                      Intent: Outlines the level that net
                                                                                                                                                                                      Council debt can be serviced by
                                     80%
                                                            60%                                                                                                                       operating revenues. A ratio below
                                     60%
                                                                                                                                                                                      zero implies that liabilities are less
                                     40%                                                                                                                                              than cash (and other current
                                     20%                                                                                                                                              assets) and there is adequate
                                     0%                                                                                                                                               borrowing capacity available if
                        -20%
                                                           Target                                    Budget                                  YTD Actual                               needed.
                                                                                                      -8%
                        -40%                                                                                                                                                         Target: less than 60%
                        -60%                                                                                                                                                         Result: -120%
                        -80%                                                                                                                                                         Comment: Council has low debt
    -100%                                                                                                                                                                             levels and strong cash holdings.
                                                                                                                                                                                      Cash received from the July rates
    -120%
                                                                                                                                                 -120%                                revenue also inflates the YTD
    -140%
                                                                                                                                                                                      actual position




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