BUDGET REVIEW 1 (BR1) FOR THE 2024/25 FINANCIAL YEAR · Attachment 4 - Budget Financial Statements 2024-25

                                                                                                                                                                                                  Attachment 4
                                                         2024/25 Budget Statements                                                     RELEVANT MEASURES OF FINANCIAL SUSTAINABILITY
                                                                                                                                                                                For the period ending 30 June
                                                                   Target
Indicator (Tier 3)                                                                   BR1                                                         Forecast
                                                                   Tier 3
Annual Result - Total Council                                                       2025            2026            2027    2028      2029         2030          2031          2032       2033         2034

Financial Capacity
                                                                  No target
  Council Controlled Revenue Ratio (%)                                              75.2%           75.1%           75.7%   76.0%     76.4%        76.7%         76.8%         77.0%      77.2%       77.4%
                                                                     set

    Council-controlled revenue is an indicator of a council’s financial flexibility, ability to influence its operating
    income, and capacity to respond to unexpected financial shocks.
                                                                                                                                         Net Rates, Levies and Charges add Fees and charges
    A higher council-controlled revenue ratio indicates a stronger ability to generate operating revenue without
                                                                                                                                                       Total Operating Revenue
    relying on external sources. Councils with a high ratio generally have a healthy rate base and are better able to
    respond to unexpected financial obligations such as natural disaster recovery.

Operating Performance
                                                                  Greater
  Operating Surplus Ratio (%)                                                       (0.1%)          0.1%            0.2%    0.1%      0.1%         0.2%          0.1%          0.1%       0.1%         0.1%
                                                                  than 0%
    The operating surplus ratio is an indicator of the extent to which operating revenues generated cover operational
    expenses. Any operating surplus would be available for capital funding or other purposes.
                                                                                                                                                            Operating Result
    An operating surplus ratio above 0% is an indication that council is managing its finances within its existing
                                                                                                                                                       Total Operating Revenue
    funding envelope and generating surplus funds for capital funding or other purposes.

                                                                  Greater
  Operating Cash Ratio (%)                                                          17.7%           18.2%           18.5%   18.3%     18.3%        18.4%         18.1%         18.0%      18.0%       17.9%
                                                                  than 0%
    The operating cash ratio is a measure of a council’s ability to cover its core operational expenses and generate a              Operating Result add Depreciation and Amortisation add Finance
    cash surplus excluding depreciation, amortisation, and finance costs.                                                                                       Costs
    A positive operating cash ratio indicates that a council is generating surplus cash from its core operations, which                                Total Operating Revenue
    suggests that council has the ability to self-fund its capital expenditure requirements.