Meeting papers

GENERAL COMMITTEE MEETING                        17 JUNE 2024




Category                    Comments
Operating Surplus Ratio        •   Intent: Identifies the extent
                                   to which revenues cover
                                   operational expenses, to
                                   ensure community equity is
                                   not degraded
                               •   Target: 0 – 10%
                               •   Result: 10.7%
                               •   Comment: With the second
                                   rates cycle occurring in
                                   January, this ratio will slowly
                                   decline as expenditure on
                                   operations occurs through to
                                   the end of the financial year
                                   at 30 June 2024.




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: 12.0 months
                                • Comment:
                              Current cash cover remains
                              above target, while business as
                              usual expenditure through to 30
                              June 2024 will degrade Council’s
                              cash holdings, albeit not below
                              the target range of 3 – 6
                              months.
                              A second advance payment of
                              disaster funding ($17.6m) was
                              received in February 2024, this
                              combined with delays in the
                              delivery capital works projects
                              has resulted in higher than
                              normal cash balances.
                              Cash balances include funding
                              for capital programs, unspent
                              grant monies paid in advance,
                              Waste Levy subsidy
                              prepayments and QRA advance
                              payments for disaster projects
                              which are restricted for specific
                              purposes and inflate the ratio.




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