Meeting papers

Noosa Shire Council
2023/24 Budget Statements                                                                                            RELEVANT MEASURES OF FINANCIAL SUSTAINABILITY
For the period ending 30 June
Indicator                             Current         Original
                                                                    BR1
                                      Budget          Budget                   Target                                                      Forecast
                                       2023            2024         2024                      2025          2026          2027     2028     2029      2030     2031     2032     2033

Operating Surplus Ratio                 0.1%            0.1%        -0.6%      0-10%          0.0%          0.0%          0.0%    0.0%      0.0%      0.0%    0.0%     0.0%     0.0%
Net Financial Liabilities Ratio        -12.8%          -6.8%        -9.0%      <60%           3.7%          5.1%          6.7%    7.8%      7.6%      4.9%    3.8%     2.3%     0.2%
Asset Sustainability Ratio             176.7%         145.7%       150.5%      >90%         171.1%        115.3%         116.1%   117.2%   102.7%     96.5%   107.6%   101.6%   99.7%



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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