09 Financial Performance Report - Mar 2025

GENERAL COMMITTEE MEETING                                                          14 APRIL 2025


 Category                                                Comments
 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: -39.5%
                                                             •   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 (4.46%)
                                                             •   Result: 5.23%
                                                             •   Comment: 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: 8.1%
                                                             •   Comment: Rates              arrears
                                                                 continue to decline from the high
                                                                 point in the cycle with payments
                                                                 coming due in February. This
                                                                 ratio will continue to decline from
                                                                 the high point in the cycle as
                                                                 payments                         are
                                                                 received. Recovery action may
                                                                 be         considered        where
                                                                 appropriate.




Link to Corporate Plan

Theme No. 5. - Excellence
This theme focuses on customer experience, financial sustainability, innovation and technology,
levels of service, governance, our employees and volunteers, funding streams and asset
management practices.