06 Financial Performance Report - Dec 2024

GENERAL COMMITTEE MEETING                               20 JANUARY 2025


Category                          Comments
                                     remainder of the year this may impact
                                     the achievement of Council’s asset
                                     sustainability and renewal targets

Net Financial Liabilities Ratio   •   Intent: Outlines the level that net
                                      Council debt can be serviced by
                                      operating revenues. A ratio below zero
                                      implies that liabilities are less than
                                      cash (and other current assets) and
                                      there is adequate borrowing capacity
                                      available if needed.
                                  •   Target: less than 60%
                                  •   Result: -31.5%
                                  •   Comment: Council has low debt
                                      levels and strong cash holdings. The
                                      advance payment of rates, grants and
                                      subsidies also inflates the YTD actual
                                      outcome.

Investment Return                 •   Intent: Ensure appropriate return on
                                      investment yield for cash at bank.
                                  •   Target: 0.25%       above      current
                                      Bloomberg commonwealth 10-year
                                      bond rate yield (4.45%)
                                  •   Result: 5.8%
                                  •   Comment: With            higher-than-
                                      normal cash balances due to the
                                      advance payment of grants and
                                      subsidies and a delayed capital
                                      program, combined with bond
                                      rates remaining steady, Council
                                      has invested surplus cash in
                                      higher yielding term deposits to
                                      maximise     returns.  Council’s
                                      investment returns remain above
                                      target.


Rates in Arrears                  •   Intent: Ensuring that the amount of
                                      unpaid rates remains sustainable and
                                      does not negatively impact cash flows
                                  •   Target: 5% industry benchmark
                                  •   Result: 6.3%
                                  •   Comment: Rates arrears continue to
                                      decline from the high point in the cycle
                                      with payments coming due in August.
                                      Reminder notices have been issued,
                                      and arrears will continue to stabilise
                                      through to January as they are
                                      collected, and payment arrangements
                                      implemented.