2019-08-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                  12 AUGUST 2019


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 financial year has only just commenced.

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: 77%
                                                             Comment: The high ratio reflects the
                                                               levying of rates in July, which will
                                                               degrade as expenditure occurs on
                                                               operations through to 30 June 2020




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: 9 months
                                                             Comment: Following a $10M early
                                                               loan repayment and being at the
                                                               bottom of the rates cycle, Council still
                                                               has sufficient surplus cash to remain
                                                               financially flexible and accommodate
                                                               unforeseen events
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 capital program has
                                                               only just commenced. It is expected
                                                               that the ratio will progressively
                                                               increase each month as expenditure
                                                               on renewals occurs.




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