09 Financial Performance Report - Mar 2022

GENERAL COMMITTEE MEETING AGENDA                                                                                     19 APRIL 2022


Category                                                                                       Comments
Asset Sustainability Ratio                                                                     • Intent: Measures the extent to which
  140%                                                                                130.1%     assets are being replaced as their
                                                                                                 condition degrades to ensure service
  120%
                                                                                                 potential is maintained
  100%
                                                                                               • Target: 90% of depreciation budget
                                                                                        90%
   80%                                                                                           spent on renewals annually
                                                                  64.2%
   60%                                                    53.1%                                • Result: Below budget
                                                  40.9%
                                          33.7%                                                • Comment: The capital works
   40%                            27.7%
                             18.1%                                                               program has been impacted by
   20%          6.7% 10.2%                                                                       recent flood events and ongoing
         0.9%
    0%
                                                                                                 supply chain issues from COVID
         Jul    Aug   Sep     Oct   Nov    Dec     Jan    Feb     Mar     Apr   May   Jun        which has result in delays in the
                                                                                                 delivery of the capital program. This
           Actual Renewal Spend (%)               Target (%)            Renewals Budget (%)
                                                                                                 ratio will continue to increase each
                                                                                                 month as expenditure on renewals
                                                                                                 continues however it may fall
                                                                                                 marginally short of the target as at 30
                                                                                                 June 2022.

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: -50%
                                                                                               • Comment: Council has low debt
                                                                                                 levels and strong cash holdings.




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 (0.09%)
                                                                                               • Result: 0.65%
                                                                                               • Comment: While long-term bond
                                                                                                 and interest rates remain low
                                                                                                 Council’s investment return still
                                                                                                 remains above target.
                                                                                                  As investment rates increase
                                                                                                  opportunities to maximise returns on
                                                                                                  surplus funds will be explored in line
                                                                                                  with Council’s investment policy.