2023-02-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                             13 FEBRUARY 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
 Operating Surplus Ratio                                    Intent: Identifies the extent to which
                                                             revenues cover operational expenses,
                                                             to ensure community equity is not
                                                             degraded
                                                            Target: 0 – 10%
                                                            Result: 39.4%
                                                            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: 12.2 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 initial upfront QRA payment 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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