Meeting papers

GENERAL COMMITTEE MEETING                                                        14 AUGUST 2023


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       revenues      cover
                                                                     operational     expenses,     to
                                                                     ensure community equity is not
                                                                     degraded
                                                                 •   Target: 0 – 10%
                                                                 •   Result: 78.6%
                                                                 •   Comment: The high ratio
                                                                     reflects the levying of rates in
                                                                     July, which will degrade as
                                                                     expenditure       occurs     on
                                                                     operations through the financial
                                                                     year to 30 June 2024.


 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: 12.9 months
                                                                  • Comment: Whilst          current
                                                                     cash cover remains above
                                                                     target, business as usual
                                                                     expenditure through to 30
                                                                     June 2024 will degrade
                                                                     Council’s cash holdings, albeit
                                                                     not below the target range of 3
                                                                     –                             6
                                                                     months.      Includes unspent
                                                                     grant monies paid in advance,
                                                                     Waste       Levy       subsidy
                                                                     prepayments       and     QRA
                                                                     advance payments for disaster
                                                                     projects are restricted for
                                                                     specific purposes and inflate
                                                                     the ratio.

 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: In line with budget




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