2020-02-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                 17 FEBRUARY 2020


Category                           Comments
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
                                      Target Date: Ongoing
                                      Result: 9.4 months
                                      Comment: Council is forecast
                                        to remain above target for the
                                        financial year and remain
                                        fiscally flexible to accommodate
                                        unforeseen events. Peaks will
                                        occur following rating periods
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
                                      Target Date: 30 June
                                      Result: In line with budget
                                      Comment: The ratio has been
                                        revised at Budget Review 2 with
                                        the revised capital budget. The
                                        actual result will progressively
                                        increase     each     month  as
                                        expenditure on renewal projects
                                        occurs.
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%
                                      Target Date: Ongoing
                                      Result: (51.1%)
                                      Comment: Council has low
                                        debt levels and strong cash
                                        holdings reflected in the YTD
                                        result.




                                                        Page 22 of 47