2022-11-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                          14 NOVEMBER 2022


Category                                                                                                                                                                          Comments
Cash Expense Cover                                                                                                                                                                 Intent: Indicates how long
                                     16.0                                                                                                                   15.1                    council can continue paying
                                                                               14.2                                                              14.0
                                                                                          13.4                                                                         13.8         its day-to-day expenses from
 Months (Cash to Cover Operations)




                                     14.0                                                            13.0                  13.1
                                                                                                                12.4
                                              11.8
                                                                    11.2
                                                                                                                                      11.8                                          cash at bank without needing
                                     12.0                10.8
                                                                                                                                                                                    additional cash flows
                                     10.0
                                                                                                                                                                                   Target: > 3 months
                                      8.0
                                                                                                                                                                                   Result: 13.8 months
                                      6.0
                                                                                                                                                                                   Comment: Whilst current
                                      4.0                                                                                                                                           cash cover remains above
                                      2.0                                                                                                                                           target, business as usual
                                          -          -          -          -          -          -          -          -          -          -          -          -          -     expenditure through to 30
                                              Nov        Dec        Jan        Feb        Mar        Apr        May        Jun        Jul        Aug        Sep        Oct          June 2023 will degrade
                                                         Actual                                                                  Minimum (>0 months)                                Council’s cash holdings,
                                                         Target (3 months)                                                       Maximum (6 months)                                 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.
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
    -20%                                                                                                                                                                            needed.
                                                                                                      -7.1%
    -40%
                                                                                                                                                                                   Target: less than 60%
                                                                                                                                                                                   Result: -71.4%
    -60%
                                                                                                                                                                                   Comment: Council has low
    -80%                                                                                                                                          -71.4%
                                                         Target                                      Budget                                      YTD Actual
                                                                                                                                                                                    debt levels and strong cash
                                                                                                                                                                                    holdings. The July rates
                                                                                                                                                                                    revenue also inflates the YTD
                                                                                                                                                                                    actual outcome.




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