2018-07-06 SM - Attachment 1 to Item 3 - Noosa Council 2018-19 Budget document

Noosa Shire Council
2018/19 Budget Statements                                                      RELEVANT MEASURES OF
For the period ending 30 June
Relevant Measures of Financial Sustainability
                                                                              FINANCIAL SUSTAINABILITY
Indicator                           Current Budget         Budget           Target                                                              Forecast
                                          2018               2019                            2020            2021       2022            2023     2024      2025    2026    2027         2028

Operating Surplus Ratio                   0.0%              0.2%            0-10%            0.2%            0.4%       1.0%            1.1%     1.2%      1.1%    1.2%    2.1%         2.0%
Net Financial Liabilities Ratio           -5.3%             -0.4%           <60%             2.0%            -1.0%     -2.0%            -1.9%    -2.8%     -5.3%   -5.5%   -7.1%       -12.5%
Asset Sustainability Ratio               105.5%            114.6%           >90%           109.4%            85.9%     88.7%            91.8%    99.6%     95.1%   99.4%   99.2%        92.9%


Operating Surplus Ratio
Measures the extent to which revenues raised cover operational expenses only or are available for capital funding purposes or other purposes.
Calculation: Net operating result divided by total operating revenue, expressed as a % (excluding capital revenue or expenses).
Target: between 0% and 10%



Net Financial Liabilities Ratio

Measures the extent to which the net financial liabilities of Council can be repaid from operating revenues.
Calculation: (total liabilities less current assets) divided by total operating revenue, expressed as a %.
Target: not greater than 60%.




Asset Sustainability Ratio
This ratio reflects the extent to which the assets managed by Council are being replaced as they reach the end of their useful lives.
Calculation: capital expenditure on the replacement of infrastructure assets (renewals) divided by depreciation expense, expressed as a %.
This includes infrastructure as well as plant and equipment. Intangibles are excluded.
Target: greater than 90%.




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