FINANCIAL PERFORMANCE REPORT - NOVEMBER 2025 · Report

GENERAL COMMITTEE MEETING                                                       15 DECEMBER 2025



Following the adoption of the Rates and Charges Debt Management and Recovery Policy on 30
June 2025, these arears are now being actively managed with an outstanding balance of 5% being
targeted. The management of outstanding rates and charges is a key responsibility of Council, as
this process can facilitate access by ratepayers to alternative funding sources (e.g. superannuation
funds) to prevent the loss of key assets.

Measures of Financial Sustainability
While the following table incorporates a revised set of financial sustainability indicators to further
assist in managing Council financial performance, it should be noted that many of the legislated local
government sustainability ratios are designed for annual reporting.

There are no significant emerging risks regarding financial performance at this stage; however,
delays in the delivery of the capital program and the reclassification of WIP projects will impact
Council’s operating surplus, operating cash, total cash expense cover and asset sustainability ratios.




With the exception of the Asset Sustainability Ratio which is under the target value due to the current
makeup of the capital works delivery program, all other ratios exceed target.

Against the ratios adopted in Budget Review 1:
• the high Operating Surplus and Operating Cash Ratios reflect the better than anticipated operating
result at 30 November 2025, with revenue streams higher than and expenditure streams lower than
anticipated
• the Operating Cash Ratio, Unrestricted Cash Expense Cover Ratio and Total Cash Expense Cover
Ratio reflect the higher than anticipated cash balance at 30 November 2025 due to a better-than-
expected operating result and lower than anticipated capital expenditure
• the Asset Sustainability Ratio reflects the makeup of year-to-date capital works expenditure which
continues.

As expected, Council's cash ratios have declined slightly in November with this trend to continue
until rates and utility charges are collected following the next rates strike.