11 Financial Performance Report - May 2025

GENERAL COMMITTEE MEETING                             16 JUNE 2025


Category                          Comments
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: (37.7%)
                                     •   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 (4.42%)
                                     •   Result: 4.57%
                                     •   Comment: Council has
                                         invested surplus cash in
                                         higher yielding term deposits
                                         to                  maximise
                                         returns.     However      with
                                         recent interest rate cuts,
                                         yields on surplus cash are
                                         likely to fall. Council’s
                                         investment returns remain
                                         on target.
Rates in Arrears                     •   Intent: Ensuring that the
                                         amount of unpaid rates
                                         remains sustainable and
                                         does not negatively impact
                                         cash flows
                                     •   Target:      5.0%     industry
                                         benchmark
                                     •   Result: 5.6%
                                     •   Comment: Rates arrears
                                         continue to decline from the
                                         high point in the cycle with
                                         payments coming due in
                                         February. Reminder notices
                                         have been issued and
                                         arrears will continue to
                                         stabilise through to June as
                                         they are collected, and
                                         payment         arrangements
                                         implemented.