2020-08-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                        17 AUGUST 2020


Category                           Comments
Cash Expense Cover                    Intent: Indicates how long council can
                                       continue paying its day-to-day
                                       expenses from cash at bank without
                                       needing additional cash flows
                                      Target: > 3 months
                                      Result: 8.5 months
                                      Comment: Whilst current cash cover
                                       remains above target, business as
                                       usual expenditure and any negative
                                       COVID-19 pandemic financial impacts
                                       through to 30 June 2021 will degrade
                                       Council’s cash holdings.


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 capital program has
                                       only just commenced. It is expected
                                       that the ratio will progressively
                                       increase each month as expenditure
                                       on renewals occurs.
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: -48.9%
                                      Comment: Council has low debt
                                       levels and strong cash holdings. The
                                       July rates revenue also inflates the
                                       YTD actual outcome



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 (0.1%)
                                      Result: 0.81%
                                      Comment: Regardless of the current
                                       levels of low long term bond and
                                       interest rates (due to current economic
                                       conditions), Council’s investment
                                       return still remains above target




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