2022-12-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                          12 DECEMBER 2022


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 early stage of the financial year.

 Category                                                                                                                                                                         Comments
 Operating Surplus Ratio                                                                                                                                                          • Intent: Identifies the extent to
                                                                                                                                                                                    which      revenues        cover
                                      90%
                                                                                                                                                                                    operational     expenses,     to
                                      80%
                                                                                                                                                                                    ensure community equity is
                                      70%    63.4%                                                                                                                                  not degraded
                                                          60.4%
                                      60%                                                                                                                                         • Target: 0 – 10%
                                                                    44.8%
                                      50%
                                                                                                                                                                                  • Result: 16.8%
                                      40%
                                      30%
                                                                               29.4%
                                                                                                                                                                                  • Comment:         The      slowly
                                      20%
                                                                                          16.8%                                                                                     declining ratio reflects the
                                      10%                                                                                                                                           levying of 50% of rates in July
                                       0%                                                                                                                                           and gradual utilisation of these
                                      -10%                                                                                                                                          monies as expenditure occurs
                                              Jul        Aug        Sep        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May        Jun          on operations through to the
                                                                                                                                                                                    next rating cycle in January
                                                                Actual                                  Budget                                     Target
                                                                                                                                                                                    2023.

 Cash Expense Cover                                                                                                                                                               • Intent: Indicates how long
                                      16.0                                                                                                       15.1                               council can continue paying its
                                                                    14.2                                                              14.0
                                                                               13.4                                                                         13.8                    day-to-day expenses from
  Months (Cash to Cover Operations)




                                      14.0                                                13.0                  13.1                                                   12.7
                                                                                                     12.4                                                                           cash at bank without needing
                                                                                                                           11.8
                                      12.0   10.8        11.2
                                                                                                                                                                                    additional cash flows
                                      10.0
                                                                                                                                                                                  • Target: > 3 months
                                       8.0
                                                                                                                                                                                  • Result: 12.7 months
                                       6.0
                                                                                                                                                                                  • Comment: Whilst current
                                       4.0                                                                                                                                          cash cover remains above
                                       2.0                                                                                                                                          target, business as usual
                                        -            -          -          -          -          -          -          -          -          -          -          -          -
                                                                                                                                                                                    expenditure through to 30
                                             Dec         Jan        Feb        Mar        Apr        May        Jun        Jul        Aug        Sep        Oct        Nov          June 2023 will degrade
                                                         Actual                                                                   Minimum (>0 months)
                                                                                                                                                                                    Council’s cash holdings, albeit
                                                         Target (3 months)                                                        Maximum (6 months)                                not below the target range of 3
                                                                                                                                                                                    – 6 months.
                                                                                                                                                                                     Cash balances are also
                                                                                                                                                                                     enhanced with FAG and
                                                                                                                                                                                     Waste        Levy      subsidy
                                                                                                                                                                                     prepayments       (held     as
                                                                                                                                                                                     restricted cash) and initial
                                                                                                                                                                                     upfront QRA payment for
                                                                                                                                                                                     disaster projects




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