2022-03-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                 14 MARCH 2022


Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no current emerging risks regarding
performance noting the early stage of the financial year.

 Category                                                                                                                                                                         Comments
 Operating Surplus Ratio                                                                                                                                                           Intent: Identifies the extent to
                                       90%   82.6%
                                                                                                                                                                                    which revenues cover
                                       80%
                                                                                                                                                                                    operational expenses, to
                                       70%
                                                                                                                                                                                    ensure community equity is not
                                                          60.9%
                                                                                                                                                                                    degraded
                                       60%
                                       50%                          44.5%                                                                                                          Target: 0 – 10%
                                                                                                             39.0%
                                       40%                                     30.5%
                                                                                                                                                                                   Result: 30.8%
                                                                                                                        30.8%
                                       30%                                                                                                                                         Comment: The ratio is at the
                                                                                          18.3%
                                       20%
                                                                                                     8.3%
                                                                                                                                                                                    second peak for the year
                                       10%                                                                                                                                          following the issue of rates and
                                        0%                                                                                                                                          levies in January. This ratio will
                                      -10%                                                                                                                                          slowly decline as expenditure
                                              Jul        Aug        Sep        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May        Jun          on operations occurs through
                                                                                                                                                                                    to the end of the financial year
                                                               Actual                                   Budget                                     Target                           at 30 June 2022.

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




                                      14.0                                                           12.8
                                              12.2                                                              12.5
                                                                                                                           11.9       11.8
                                                                                                                                                                                    cash at bank without needing
                                                         11.6                                                                                               11.2
                                      12.0                          10.9
                                                                                          10.4
                                                                                                                                                 10.8                               additional cash flows
                                                                               10.1
                                      10.0                                                                                                                                         Target: > 3 months
                                       8.0                                                                                                                                         Result: 14.2 months
                                       6.0                                                                                                                                         Comment: Council is forecast
                                                                                                                                                                                    to remain above target for the
                                       4.0
                                                                                                                                                                                    financial year. Business as
                                       2.0                                                                                                                                          usual expenditure through to
                                        -            -          -          -          -          -          -          -          -          -          -          -          -     30 June 2022 will continue to
                                             Mar         Apr        May        Jun         Jul       Aug        Sep        Oct        Nov        Dec        Jan        Feb          diminish Council’s cash
                                                                                                                                                                                    holdings, albeit not below the
                                                          Actual                                                                  Minimum (>0 months)
                                                          Target (3 months)                                                       Maximum (6 months)                                target range of 3 – 6 months.

 Asset Sustainability Ratio                                                                                                                                                        Intent: Measures the extent to
                                      140%                                                                                                                         130.1%
                                                                                                                                                                                    which assets are being
                                                                                                                                                                                    replaced as their condition
                                      120%                                                                                                                                          degrades to ensure service
                                      100%
                                                                                                                                                                                    potential is maintained
                                                                                                                                                                        90%        Target: 90% of depreciation
                                      80%
                                                                                                                                                                                    budget spent on renewals
                                      60%                                                                              51.0%                                                        annually
                                                                                                            39.8%
                                                                                                 32.9%                                                                             Result: In line with budget
                                      40%                                            27.5%
                                                                           18.2%
                                                                                                                                                                                   Comment: The capital works
                                      20%
                                                     6.6% 10.3%                                                                                                                     program remains on track and
                                             0.9%                                                                                                                                   this ratio will continue to
                                       0%
                                             Jul         Aug        Sep        Oct        Nov     Dec           Jan    Feb        Mar        Apr        May        Jun              increase each month as
                                                                                                                                                                                    expenditure on renewals
                                                Actual Renewal Spend (%)                                   Target (%)                    Renewals Budget (%)                        occurs.




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