2022-12-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                        12 DECEMBER 2022


Category                                                                                        Comments
Asset Sustainability Ratio                                                                      • Intent: Measures the extent to
  200%                                                                                 188.0%     which assets are being
  180%                                                                                            replaced as their condition
  160%                                                                                            degrades to ensure service
  140%                                                                                            potential is maintained
  120%
                                                                                                • Target: 90% of depreciation
  100%                                78.1%
                                                                                         90%      budget spent on renewals
   80%                           65.6%
                                                                                                  annually
   60%                   44.0%
   40%           28.5%                                                                          • Result: In line with budget
   20%   10.7%                                                                                  • Comment: The ratio will
    0%                                                                                            progressively increase each
           Jul   Aug       Sep    Oct   Nov   Dec    Jan    Feb   Mar     Apr   May    Jun        month as expenditure on
             Actual Renewal Spend (%)               Target (%)          Renewals Budget (%)       renewals occurs as part of the
                                                                                                  capital works program.

Net Financial Liabilities Ratio                                                                 • Intent: Outlines the level that
                                                                                                  net Council debt can be
  80%
                  60.0%                                                                           serviced       by       operating
  60%                                                                                             revenues. A ratio below zero
  40%                                                                                             implies that liabilities are less
                                                                                                  than cash (and other current
  20%
                                                                                                  assets) and there is adequate
  0%                                                                                              borrowing capacity available if
                                                                                                  needed.
 -20%                                          -7.1%
                                                                                                • Target: less than 60%
 -40%
                                                                                                • Result: -67.6%
 -60%
                                                                                                • Comment: Council has low
 -80%                                                                      -67.6%                 debt levels and strong cash
                  Target                      Budget                      YTD Actual
                                                                                                  holdings. The July rates
                                                                                                  revenue 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 (3.07%)
                                                                                                • Result: 4.10%
                                                                                                • 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.




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