2020-12-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                 14 DECEMBER 2020


     Category                                                                                                                                Comments
     Cash Expense Cover                                                                                                                         Intent: Indicates how long
                                           14.0                                                                                                  Council can continue
                                                                                                                                                 paying its day-to-day
      Months (Cash to Cov er Operations)

                                           12.0                                                                                                  expenses from cash at
                                           10.0                                                                                                  bank without needing
                                                                                                                                                 additional cash flows
                                            8.0
                                                                                                                                                Target: > 3 months
                                            6.0                                                                                                 Result: 10.7 months
                                            4.0                                                                                                 Comment: Whilst current
                                                                                                                                                 cash cover remains above
                                            2.0
                                                                                                                                                 target, business as usual
                                                -                                                                                                expenditure and any other
                                                     Dec    Jan      Feb   Mar    Apr   May       Jun   Jul     Aug    Sep     Oct   Nov         unforeseen financial
                                                             Actu al                                          Minimum ( >0 months)               impacts through to 30
                                                             Target (3 mon ths)                               Maximu m (6 months)                June 2021 will degrade
                                                                                                                                                 Council’s cash holdings.
     Asset Sustainability Ratio                                                                                                                 Intent: Measures the
                                           120 %                                                                                                 extent to which assets are
                                                                                                                                   101.5%        being replaced as their
                                           100 %                                                                                                 condition degrades to
                                                                                                                                       90%       ensure service potential is
                                            80%                                                                                                  maintained
                                            60%
                                                                                                                                                Target: 90% of
                                                                                                                                                 depreciation budget spent
                                            40%                                                                                                  on renewals annually
                                                                                                                                                Result: In line with budget
                                            20%
                                                                                                                                                Comment: The ratio will
                                                0%                                                                                               progressively increase
                                                      Jul    Aug     Sep   Oct    Nov    Dec      Jan   Feb     Mar     Apr    May   Jun         each month as
                                                                                                                                                 expenditure on renewals
                                                      Actu al Ren ewal S pend (%)             Target (%)           Renewals Budge t (%)
                                                                                                                                                 occurs.
     Net Financial Liabilities Ratio                                                                                                            Intent: Outlines the level
                                                                                                                                                 that net Council debt can
                    70%
                                                            60%                                                                                  be serviced by operating
                    60%                                                                                                                          revenues. A ratio below
                    50%                                                                                                                          zero implies that liabilities
                    40%                                                                                                                          are less than cash (and
                                                                                                                                                 other current assets) and
                    30%
                                                                                                                                                 there is adequate
                    20%                                                                                                                          borrowing capacity
                    10%                                                                                                                          available if needed.
                                           0%                                                                                                   Target: less than 60%
        -10%
                                                            Target                      Bud get                       YTD Actual                Result: -23%
        -20%
                                                                                         -6%                                                    Comment: Council has
                                                                                                                                                 low debt levels and strong
        -30%                                                                                                            -23%
                                                                                                                                                 cash holdings. The July
                                                                                                                                                 rates revenue and
                                                                                                                                                 prepayment of the
                                                                                                                                                 financial assistance grant
                                                                                                                                                 also inflates the YTD
                                                                                                                                                 actual outcome




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