Financial Performance Report – Jul 2024 · Financial Performance Report

GENERAL COMMITTEE MEETING                                                               12 AUGUST 2024


 Category                                           Comments
 Net Financial Liabilities Ratio                        •   Intent: Outlines the level that net
                                                            Council debt can be serviced by
                                                            operating revenues. A ratio
                                                            below zero implies that liabilities
                                                            are less than cash (and other
                                                            current assets) and there is
                                                            adequate borrowing capacity
                                                            available if needed.
                                                        •   Target: less than 60%
                                                        •   Result: (91.9%)
                                                        •   Comment: Council has low debt
                                                            levels and strong cash 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 (4.37%)
                                                        •   Result: 5.53%
                                                        •   Comment: With higher than
                                                            normal cash balances and bond
                                                            rates, Council has invested
                                                            surplus cash in higher yielding
                                                            term deposits to maximise
                                                            returns. Council's investment
                                                            returns remain above target.

 Rates in Arrears                                       •   Intent: Ensuring that the amount
                                                            of   unpaid     rates    remains
                                                            sustainable and does not
                                                            negatively impact cash flows
                                                        •   Target: 5% industry benchmark
                                                        •   Result: 3.9%
                                                        •   Comment: Rates arrears are in
                                                            line with performance for the
                                                            previous 6 and 12 monthly
                                                            cycles.




Link to Corporate Plan
Theme No. 5. - Excellence
This theme focuses on customer experience, financial sustainability, innovation and technology, levels of
service, governance, our employees and volunteers, funding streams and asset management practices.



Objective 5.2 - Continue to deliver a financially sustainable Council that has the resources now and into
the future to achieve its strategic objectives. This will be supported through the introduction of enhanced
sustainability reporting and performance indicators, as well as ESG (environment social and governance)
accounting practices as guided by statutory requirements.