2023-03-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING REPORT                          13 MARCH 2023


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: 31.3%
                                    Comment: The ratio is at the second
                                     peak for the year following the issue of
                                     rates and levies in January. This ratio
                                     will slowly decline as expenditure on
                                     operations occurs through to the end of
                                     the financial year at 30 June 2023.

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: 15.4 months
                                    Comment: Council is forecast to
                                     remain above target for the financial
                                     year. Business as usual expenditure
                                     through to 30 June 2023 will continue
                                     to diminish 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 QRA payments for disaster
                                      projects
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 ratio will progressively
                                     increase each month as expenditure on
                                     renewals occurs as part of the capital
                                     works program.




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