Annual Report 2018-19

Net financial liabilities ratio
This ratio represents Council’s net financial liabilities (total liabilities less current assets) expressed as a percentage of
total operating revenue. The target range is less than 60%. A negative percentage indicates that current assets exceed
total liabilities, and is considered a very strong position.

The strong position of (13.8%) as at 30 June 2019 indicates that Council has capacity to service higher levels of debt if
needed.


Asset sustainability ratio
This ratio is calculated by measuring the annual expenditure on the renewal and rehabilitation of Council’s assets
against the annual depreciation charge. It is a measure of whether Council is reinvesting in existing assets to ensure that
they meet required levels of service for the community.

During 2018/19 Council achieved a ratio of 132.3%. This ratio is reflective of the efficient delivery of the capital program
during the year, including an investment of $19 million in the replacement of infrastructure such as roads, bridges and
buildings. This result reflects Council’s continued investment in infrastructure replacement and adherence to sound asset
management principles to maintain levels of service to the community.


Summary
The financial period ended 30 June 2019 represents another excellent financial result for Council, and provides a
firm foundation for future operations. Ongoing innovation and a commitment to strong financial management through
compliance with our Financial Sustainability policy will ensure that this position is maintained into the future.

									




Noosa Council | 2018/2019 Annual Report                                                                               Page 49