06 Financial Performance Report - Dec 2024

GENERAL COMMITTEE MEETING                                                        20 JANUARY 2025



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 significant emerging risks regarding
performance identified at this stage, however the delay in the delivery of the capital program
may impact Council’s asset sustainability and renewal targets.

 Category                                                 Comments
 Operating Surplus Ratio                                   •   Intent: Identifies the extent to which
                                                               revenues cover operational expenses,
                                                               to ensure community equity is not
                                                               degraded
                                                           •   Target: Greater than 0%
                                                           •   Result: 8.8%
                                                           •   Comment: The slowly declining ratio
                                                               reflects the levying of 50% of rates in
                                                               July and gradual utilisation of these
                                                               monies as expenditure occurs on
                                                               operations through to the next rating
                                                               cycle in January 2025.

 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: 9.9 months
                                                           •   Comment: Cash         cover    remains
                                                               above target, while business as usual
                                                               expenditure through to 30 June 2025
                                                               will degrade Council’s cash holdings,
                                                               albeit not below the target range of 3 –
                                                               6 months.
                                                               Cash balances include funding for
                                                               capital programs, unspent grant
                                                               monies paid in advance, Waste Levy
                                                               subsidy prepayments and QRA
                                                               advance payments for disaster
                                                               projects which are restricted for
                                                               specific purposes and inflate the ratio.

 Asset Sustainability Ratio                                •   Intent: Measures the extent to which
                                                               assets are being replaced as their
                                                               condition degrades to ensure service
                                                               potential is maintained
                                                           •   Target: 80% of depreciation budget
                                                               spent on renewals annually
                                                           •   Result: 38.7% achieved, however
                                                               below forecast result due to project
                                                               delays and scheduling.
                                                           •   Comment: The            ratio      will
                                                               progressively increases each month
                                                               as expenditure on renewals occurs as
                                                               part of the capital works program. For
                                                               transparency QRA disaster projects
                                                               have been excluded from the ratio
                                                               calculations. Should capital works
                                                               continue to fall forecast for the