2023-01-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                    16 JANUARY 2023


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
                                                                     Intent: Identifies the extent to
                                                                      which revenues cover operational
                                                                      expenses, to ensure community
                                                                      equity is not degraded
                                                                     Target: 0 – 10%
                                                                     Result: 7.5%
                                                                     Comment: The slowly declining
                                                                      ratio reflects the levying of 50% of
                                                                      rates in July and gradual utilisation
                                                                      of these monies as expenditure
                                                                      occurs on operations through to
                                                                      the next rating cycle in January
                                                                      2023.

                                                                     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: 11.7 months
                                                                     Comment: Whilst current cash
                                                                      cover remains above target,
                                                                      business as usual expenditure
                                                                      through to 30 June 2023 will
                                                                      degrade Council’s cash holdings,
                                                                      albeit not below the target range of
                                                                      3 – 6 months.
                                                                       Cash balances are also enhanced
                                                                       with Grant and Waste Levy
                                                                       subsidy prepayments (held as
                                                                       restricted cash) and initial upfront
                                                                       QRA payment for disaster projects

                                                                     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 ratio will
                                                                      progressively increase each month
                                                                      as expenditure on renewals occurs
                                                                      as part of the capital works
                                                                      program.




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