BUDGET REVIEW 1 (BR1) FOR THE 2024/25 FINANCIAL YEAR · Report

GENERAL COMMITTEE MEETING                                                              12 AUGUST 2024



Previous Council Consideration
The 2024/25 original budget was adopted by Council resolution on 28 June 2024 (Ref. Special
Meeting Minutes, 28 June 2024, Item 2.4, Page 3).

The original 2024/25 fees and charges were adopted by Council resolution on 17 June 2024 (Ref:
Ordinary Meeting Minutes, 20 June 2024, Item 8.4, Page 14)

Finance
The financial sustainability ratios for are forecast to meet the benchmark targets under the
revised BR1 budget for 2024/25, with the exception of the Operating Surplus Ratio. This is due
to the small deficit position forecast at this point in the year, which is expected to return to surplus
as the financial year progresses.

A detailed summary of the forecast financial sustainability ratios is provided in Attachment
4. The table below shows the target and forecast for each of these financial sustainability ratios:

Ratio                                                        Target            Original BR1
                                                                               Budget
Council Controlled Revenue Ratio                          No Target Set        75.9%    75.2%

Operating Surplus Ratio                                  Greater than 0%        0.1%     (0.1%)
Operating Cash Ratio                                     Greater than 0%        18.1%    17.7%
Unrestricted Cash Expense Cover Ratio (months)        Greater than 3 months      7.7      7.3
Total Cash Expense Cover Ratio (months)               Greater than 3 months      8.9      9.4

Asset Sustainability                                    Greater than 80%       102.7% 136.7%
Leverage Ratio                                             0 - 3 times          1.19   1.20
Net Financial Liabilities                                Less than 60%          0.7%     (3.2%)




Risk & Opportunities
Council’s risk register includes a number of risks that could impact on ongoing financial sustainability.
Effective budget management and reporting is an important risk mitigation tool.




Consultation
External Consultation - Community & Stakeholder
Nil




Internal Consultation
Financial Services have been in contact with all Council branches.

Directors of each department have reviewed endorsed all submissions received. The Executive
Team has also reviewed and endorsed all submissions received.