2020-11-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                               16 NOVEMBER 2020


Category                                                                                          Comments
Asset Sustainability Ratio                                                                           Intent: Measures the extent to
   120%                                                                                               which assets are being replaced
                                                                                        101.5%        as their condition degrades to
   100%                                                                                               ensure service potential is
                                                                                            90%       maintained
    80%
                                                                                                     Target: 90% of depreciation
    60%
                                                                                                      budget spent on renewals
                                                                                                      annually
    40%                                                                                              Result: In line with budget
                                                                                                     Comment:        The     ratio  will
    20%
                                                                                                      progressively     increase    each
        0%                                                                                            month     as     expenditure    on
             July    Aug     Sept   Oct   Nov   Dec      Jan   Feb   Mar     Apr   May June           renewals occurs.
             Actual Renewals Spend              Target (90% spend)            Renewals Budget


Net Financial Liabilities Ratio                                                                      Intent: Outlines the level that net
                                                                                                      Council debt can be serviced by
  80%
                                                                                                      operating revenues. A ratio below
                    60%
  60%                                                                                                 zero implies that liabilities are less
                                                                                                      than cash (and other current
  40%                                                                                                 assets) and there is adequate
                                                                                                      borrowing capacity available if
  20%                                                                                                 needed.
                                                                                                     Target: less than 60%
  0%
                    Target                      Budget                     YTD Actual                Result: -48.7%
 -20%                                           -6.3%                                                Comment: Council has low debt
                                                                                                      levels and strong cash holdings.
 -40%                                                                                                 The July rates revenue and
                                                                            -48.7%
                                                                                                      prepayment of the financial
 -60%
                                                                                                      assistance grant 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 (0.11%)
                                                                                                     Result: 0.65%
                                                                                                     Comment: Regardless of the
                                                                                                      current levels of low long term
                                                                                                      bond and interest rates (due to
                                                                                                      current economic conditions),
                                                                                                      Council’s investment return still
                                                                                                      remains above target




                                                                                                                        Page 13 of 19