2020-05-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       18 MAY 2020


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 material emerging risks regarding
performance to date for 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%
                                                                   Target Date: 30 June
                                                                   Result: 15.9%
                                                                   Comment: The ratio will decline
                                                                     from April to June 2020 as
                                                                     January rates are expended on
                                                                     the delivery of Council services,
                                                                     and     COVID-19        pandemic
                                                                     financial impacts are realised

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
                                                                   Target Date: Ongoing
                                                                   Result: 10.2 months
                                                                   Comment: Whilst current cash
                                                                     cover remains above target,
                                                                     business as usual expenditure
                                                                     and     COVID-19       pandemic
                                                                     financial impacts through to 30
                                                                     June     2020     will  degrade
                                                                     Council’s cash holdings, albeit
                                                                     not below the target range of 3
                                                                     months.
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
                                                                   Target Date: 30 June
                                                                   Result: Slightly under budget
                                                                   Comment: The actual result will
                                                                     progressively increase each
                                                                     month as expenditure on
                                                                     renewal projects occurs




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