Financial Performance Report – November 2023 · Financial Performance Report

GENERAL COMMITTEE MEETING                     11 DECEMBER 2023


Category                          Comments
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 ratio will
                                         progressively increase each
                                         month as expenditure on
                                         renewals occurs as part of
                                         the capital works program.




Net Financial Liabilities Ratio      •   Intent: Outlines the level
                                         that net Council debt can be
                                         serviced     by     operating
                                         revenues. A ratio below zero
                                         implies that liabilities are
                                         less than cash (and other
                                         current assets) and there is
                                         adequate           borrowing
                                         capacity available if needed.
                                     •   Target: less than 60%
                                     •   Result: -31.48%
                                     •   Comment: Council has low
                                         debt levels and strong cash
                                         holdings.    The     advance
                                         payment of rates, grants and
                                         subsidies also inflates the
                                         YTD actual outcome.


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 (3.99%)
                                     •   Result: 5.61%
                                     •   Comment: With bond rates
                                         rising, Council has invested
                                         surplus cash in higher
                                         yielding term deposits to
                                         maximise returns. Council’s
                                         investment returns remain
                                         above target.