Meeting papers

GENERAL COMMITTEE MEETING                             17 JUNE 2024


Category                          Comments
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: Renewals          are
                                         currently running behind
                                         budget due to project delays
                                         and scheduling.
                                     •   Comment: The ratio will
                                         progressively increase each
                                         month as expenditure on
                                         renewals occurs as part of
                                         the capital works program.
                                         For    transparency      QRA
                                         disaster projects have been
                                         excluded from the ratio
                                         calculations.
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: -15.5%
                                     •   Comment: Council has low
                                         debt levels and strong cash
                                         holdings.     The    advance
                                         payment of rates, grants and
                                         subsidies 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 (4.83%)
                                     •   Result: 5.60%
                                     •   Comment: With          higher
                                         than     normal    cash
                                         balances and bond rates
                                         at their peak, Council
                                         has invested surplus
                                         cash in higher yielding
                                         term      deposits    to
                                         maximise
                                         returns.       Council’s




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