2022-10-24 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                  24 OCTOBER 2022


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

Cash Expense Cover                                                                     • Intent: Indicates how long
                                                                                         council can continue paying its
                                                                                         day-to-day expenses from cash
                                                                                         at bank without needing
                                                                                         additional cash flows
                                                                                       • Target: > 3 months
                                                                                       • Result: 15.1 months
                                                                                       • Comment: Whilst current cash
                                                                                         cover remains above target,
                                                                                         business as usual expenditure
                                                                                         through to 30 June 2023 will
                                                                                         degrade      Council’s    cash
                                                                                         holdings, albeit 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

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.




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