2022-07-18 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                                                18 JULY 2022


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
                                       90% 82.6%                                                                                                                           revenues cover operational
                                       80%                                                                                                                                 expenses, to ensure community
                                       70%       60.9%                                                                                                                     equity is not degraded
                                       60%
                                                     44.5%                                                                                                                Target: 0 – 10%
                                       50%                               39.0%
                                       40%                30.5%               30.8%                                                                                       Result: 10.2%
                                       30%
                                                               18.3%
                                                                                   24.7%
                                                                                        20.5%                                                                             Comment: Strong sales and
                                       20%                                                   13.4%10.2%
                                                                    8.3%                                                                                                   facilities revenue, operational
                                       10%
                                                                                                                                                                           savings, unspent levies and prepaid
                                        0%
                                      -10%
                                                                                                                                                                           grants have contributed toward a
                                            Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                                                                                positive interim annual result.
                                                           Actual                                 Budget                                   Target



 Cash Expense Cover                                                                                                                                                       Intent: Indicates how long council
                                      16.0                                                                                                                                 can continue paying its day-to-day
                                                                                                                    14.2
                                                                                                                               13.4 13.0                                   expenses from cash at bank without
  Months (Cash to Cover Operations)




                                      14.0              12.8 12.5                                                                                             13.1
                                                                                                                                                   12.4
                                                                            11.9 11.8                                                                                      needing additional cash flows
                                      12.0                                                      10.8 11.2
                                             10.4
                                                                                                                                                                          Target: > 3 months
                                      10.0
                                                                                                                                                                          Result: 13.1 months
                                       8.0
                                                                                                                                                                          Comment: Whilst interim annual
                                       6.0
                                                                                                                                                                           cash cover result is well above
                                       4.0                                                                                                                                 target, this includes committed cash
                                       2.0                                                                                                                                 for capital programs and unspent
                                        -           -         -         -         -         -         -         -          -         -         -          -          -     grant monies paid in advance.
                                              Jul       Aug       Sep       Oct       Nov       Dec       Jan       Feb        Mar       Apr       May        Jun
                                                                                                                                                                            In June 2022 the state government
                                                        Actual                                                         Minimum (>0 months)
                                                        Target (3 months)                                              Maximum (6 months)
                                                                                                                                                                            also pre-paid 4 years worth of
                                                                                                                                                                            domestic waste levy subsidies which
                                                                                                                                                                            Council is holding in reserve ($12
                                                                                                                                                                            million)
 Asset Sustainability Ratio                                                                                                                                               Intent: Measures the extent to
                       140%                                                                                                                               130.1%           which assets are being replaced as
                                                                                                                                                                           their condition degrades to ensure
                       120%
                                                                                                                                                          95.5%
                                                                                                                                                                           service potential is maintained
                       100%
                                                                                                                                                                90%
                                                                                                                                                                          Target: 90% of depreciation budget
                                                                                                                               77.0%
                                      80%                                                                                 65.4%                                            spent on renewals annually
                                      60%                                                                       47.8%
                                                                                                                     57.1%
                                                                                                                                                                          Result: Below budget
                                                                                                 36.3%
                                      40%                                    25.2%
                                                                                            30.1%                                                                         Comment: The capital works
                                                                        15.7%                                                                                              program has been impacted by
                                      20%                     7.8%
                                             0.9% 4.7%                                                                                                                     flood and rain events and this
                                       0%                                                                                                                                  together with ongoing supply chain
                                             Jul    Aug       Sep           Oct   Nov        Dec          Jan   Feb        Mar           Apr   May         Jun
                                                                                                                                                                           issues has resulted in delays in the
                                                    Actual Renewal Spend (%)                                         Target (%)
                                                                                                                                                                           delivery of the capital program.
                                                    Renewals Budget (%)
                                                                                                                                                                           Whilst under budget, the statutory
                                                                                                                                                                           target has still been met




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