2020-09-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                            14 SEPTEMBER 2020


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
performance noting the financial year has only just commenced.

 Category                                                     Comments
 Operating Surplus Ratio                                         Intent: Identifies the extent to which
                                                                  revenues        cover       operational
                                                                  expenses, to ensure community
                                                                  equity is not degraded
                                                                 Target: 0 – 10%
                                                                 Result: 59%
                                                                 Comment: The high ratio reflects
                                                                  the levying of rates in July, which will
                                                                  degrade as expenditure occurs on
                                                                  operations through to the next rate
                                                                  run in January 2021




 Cash Expense Cover                                              Intent: Indicates how long Council
                                                                  can continue paying its day-to-day
                                                                  expenses from cash at bank without
                                                                  needing additional cash flows
                                                                 Target: > 3 months
                                                                 Result: 11.4 months
                                                                 Comment: Whilst current cash
                                                                  cover remains above target,
                                                                  business as usual expenditure and
                                                                  any negative COVID-19 pandemic
                                                                  financial impacts through to 30 June
                                                                  2021 will degrade Council’s cash
                                                                  holdings.


 Asset Sustainability Ratio                                      Intent: Measures the extent to which
                                                                  assets are being replaced as their
                                                                  condition degrades to ensure service
                                                                  potential is maintained
                                                                 Target: 90% of depreciation budget
                                                                  spent on renewals annually
                                                                 Result: In line with budget
                                                                 Comment: The capital program has
                                                                  only just commenced. It is expected
                                                                  that the ratio will progressively
                                                                  increase each month as expenditure
                                                                  on renewals occurs.




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