05 Financial Performance Report - Nov 2021

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                 13 DECEMBER 2021


Category                                                                                                                                                                            Comments
Operating Surplus Ratio                                                                                                                                                             •   Intent: Identifies the extent to
                                     90% 82.6%                                                                                                                                          which        revenues        cover
                                     80%
                                                                                                                                                                                        operational expenses, to ensure
                                     70%
                                                                                                                                                                                        community       equity    is   not
                                                       60.9%
                                     60%
                                                                                                                                                                                        degraded
                                     50%                          44.5%                                                                                                             •   Target: 0 – 10%
                                     40%                                     30.5%                                                                                                  •   Result: 18.3%
                                     30%
                                                                                        18.3%
                                                                                                                                                                                    •   Comment: The slowly declining
                                     20%                                                                                                                                                ratio reflects the levying of 50%
                                     10%                                                                                                                                                of rates in July and gradual
                                      0%                                                                                                                                                utilisation of these monies as
                                     -10%                                                                                                                                               expenditure         occurs      on
                                                Jul        Aug        Sep        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May        Jun            operations through the next rate
                                                                                                                                                                                        run in January 2022 and then
                                                                 Actual                                  Budget                                      Target
                                                                                                                                                                                        through to the end of the
                                                                                                                                                                                        financial year at 30 June 2022
Cash Expense Cover                                                                                                                                                                  •   Intent: Indicates how long
                                     14.0                                                                                                                                               council can continue paying its
                                                                      12.5                                                              12.8       12.5
                                                                                 12.2                                                                         11.9                      day-to-day expenses from cash
 Months (Cash to Cover Operations)




                                                                                            11.6                                                                         11.8
                                     12.0                                                              10.9                                                                             at bank without needing
                                                                                                                  10.1       10.4
                                                           9.7                                                                                                                          additional cash flows
                                     10.0       9.1
                                                                                                                                                                                    •   Target: > 3 months
                                      8.0
                                                                                                                                                                                    •   Result: 11.8 months
                                      6.0
                                                                                                                                                                                    •   Comment: Council is forecast
                                      4.0                                                                                                                                               to remain above target for the
                                                                                                                                                                                        financial year. Business as
                                      2.0
                                                                                                                                                                                        usual expenditure through to 30
                                       -               -          -          -          -          -          -          -          -          -          -          -          -       June 2022 will continue to
                                                Dec        Jan        Feb        Mar        Apr        May        Jun        Jul        Aug        Sep        Oct        Nov            diminish     Council’s     cash
                                                           Actual                                                                   Minimum (>0 months)                                 holdings, albeit not below the
                                                           Target (3 months)                                                        Maximum (6 months)                                  target range of 3 – 6 months.
Asset Sustainability Ratio                                                                                                                                                          •   Intent: Measures the extent to
                                     140%                                                                                                                                               which assets are being replaced
                                                                                                                                                                     121.9%             as their condition degrades to
                                     120%
                                                                                                                                                                                        ensure service potential is
                                     100%                                                                                                                                               maintained
                                                                                                                                                                          90%       •   Target: 90% of depreciation
                                      80%
                                                                                                                                                                                        budget spent on renewals
                                      60%                                                                                                                                               annually
                                      40%
                                                                                                                                                                                    •   Result: In line with budget
                                                                                            26.3%
                                                                                 17.2%                                                                                              •   Comment: It is expected that
                                      20%
                                                           6.5% 10.1%                                                                                                                   the ratio will progressively
                                                0.9%
                                           0%                                                                                                                                           increase each month as
                                                 Jul       Aug        Sep         Oct       Nov        Dec        Jan        Feb        Mar        Apr        May        Jun            expenditure on renewals occurs
                                                                                                                                                                                        as part of the capital works
                                                  Actual Renewal Spend (%)                                   Target (%)                    Renewals Budget (%)
                                                                                                                                                                                        program.