2022-06-13 General Committee Meeting Agenda PUBLIC

GENERAL COMMITTEE MEETING AGENDA                         13 JUNE 2022


Category                           Comments
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: 12.4 months
                                   • Comment: Council is forecast to
                                     remain above target for the financial
                                     year. Business as usual expenditure
                                     through to 30 June 2022 will continue
                                     to diminish Council’s cash holdings,
                                     albeit not below the target range of 3
                                     – 6 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
                                   • Result: Below budget
                                   • Comment: The capital works
                                     program has been impacted by flood
                                     and rain events and this together with
                                     ongoing supply chain issues has
                                     resulted in delays in the delivery of
                                     the capital program. This ratio will
                                     continue to increase each month as
                                     expenditure on renewals continues
                                     however it may fall short of the target
                                     as at 30 June 2022.

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: -36%
                                   • Comment: Council has low debt
                                     levels and strong cash holdings.




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