2020-11-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                              16 NOVEMBER 2020


Borrowings
The debt restructure review is underway with the Queensland Treasury Corporation. Once the
review has been completed a report will be provided to a future Council meeting outlining the
findings and potentially recommending any actions that provides a positive net benefit to
ratepayers.
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 financial
performance year to date.

 Category                                                                                                                        Comments
 Operating Surplus Ratio                                                                                                            Intent: Identifies the extent to
                                      90%                                                                                            which revenues cover operational
                                      80%
                                                                                                                                     expenses, to ensure community
                                      70%
                                                                                                                                     equity is not degraded
                                      60%                                                                                           Target: 0 – 10%
                                      50%                                                                                           Result: 31.0%
                                      40%                                                                                           Comment: The high ratio reflects
                                      30%                                                                                            the levying of rates in July, which
                                      20%                                                                                            is degrading as expenditure
                                      10%                                                                                            occurs on operations through to
                                       0%                                                                                            the next rate run in January 2021
                                      -10%
                                             July    Aug     Sept   Oct    Nov     Dec   Jan   Feb     Mar    Apr   May June


                                                    Actual                Budget               Minimum               Target


 Cash Expense Cover                                                                                                                 Intent: Indicates how long
                                      14.0                                                                                           Council can continue paying its
                                                                                                                                     day-to-day expenses from cash at
  Months (Cash to Cover Operations)




                                      12.0                                                                                           bank without needing additional
                                      10.0                                                                                           cash flows
                                                                                                                                    Target: > 3 months
                                       8.0
                                                                                                                                    Result: 10.7 months
                                       6.0
                                                                                                                                    Comment: Whilst current cash
                                       4.0                                                                                           cover remains above target,
                                                                                                                                     business as usual expenditure
                                       2.0
                                                                                                                                     and any other unforseen financial
                                        -                                                                                            impacts through to 30 June 2021
                                             Nov     Dec     Jan    Feb    Mar     Apr   May June      July   Aug   Sep    Oct       will degrade Council’s cash
                                                      Actual                                         Minimum (>0 months)             holdings.
                                                      Target (3 months)                              Maximum (6 months)




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