Noosa Council 2019-20 Budget Document

Noosa Shire Council
2019/20 Budget Statements
                                                RELEVANT MEASURES OF FINANCIAL SUSTAINABILITY
For the period ending 30 June
Indicator                              Current         Original                                                                              Forecast
                                       Budget          Budget          Target
                                        2019            2020                           2021           2022        2023           2024         2025      2026     2027     2028         2029

Operating Surplus Ratio                  1.5%            0.1%          0-10%           0.1%           0.1%        0.1%           0.1%         0.1%      0.1%     0.1%     0.1%         0.1%
Net Financial Liabilities Ratio         -8.0%            -6.8%         <60%            -6.6%          -4.8%       -5.1%          -8.4%       -13.4%     -17.0%   -22.0%   -25.1%       -29.7%
Asset Sustainability Ratio             132.4%           119.6%         >90%           101.0%         100.6%      104.0%         99.3%         90.7%     89.6%    83.0%    83.3%        80.0%


Operating Surplus Ratio
Measures the extent to which revenues raised cover operational expenses only or are available for capital funding purposes or other purposes.
Calculation: Net operating result divided by total operating revenue, expressed as a % (excluding capital revenue or expenses).
Target: between 0% and 10%



Net Financial Liabilities Ratio
Measures the extent to which the net financial liabilities of Council can be repaid from operating revenues.
Calculation: (total liabilities less current assets) divided by total operating revenue, expressed as a %.
Target: not greater than 60%.




Asset Sustainability Ratio
This ratio reflects the extent to which the assets managed by Council are being replaced as they reach the end of their useful lives.
Calculation: capital expenditure on the replacement of infrastructure assets (renewals) divided by depreciation expense, expressed as a %.
This includes infrastructure as well as plant and equipment. Intangibles are excluded.
Target: greater than 90%.




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