10 Financial Performance Report - Apr 2025

GENERAL COMMITTEE MEETING                                    12 MAY 2025


Category                          Comments
                                       works continue to fall below
                                       forecast for the 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: -38.5%
                                     • 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: 5.40%
                                     • Comment: Council continues
                                          to invest 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: 6.4%
                                      •   Comment: Rates             arrears
                                          continue to decline from the high
                                          point in the cycle with payments
                                          coming            due           in
                                          February. Reminder notices
                                          were issued, and arrears will
                                          continue to stabilise through to
                                          June as they are collected, and
                                          payment             arrangements
                                          implemented.