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

Liquidity
                                                                Greater
  Unrestricted Cash Expense Cover Ratio (months)                than 3            7.3            5.8            5.6         5.3         5.1            5.0           4.9          4.5             4.4         4.2
                                                                months
    The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to a council to
    meet ongoing and emergent financial demands, which is a key component to solvency. It represents the number                     Total Cash and Equivalents add Current Investments add Available
    of months a council can continue operating based on current monthly expenses.                                                      Ongoing QTC Working Capital Facility Limit less Externally
                                                                                                                                                            Restricted Cash                                x 12
    A higher unrestricted cash expense cover ratio indicates that a council has sufficient free cash available to                    Total Operating Expenditure less Depreciation and Amortisation
    contribute to the cost of future planned and unplanned expenditures such as infrastructure investment or                                              less Finance Costs
    disaster recovery.

                                                                Greater
  Total Cash expense Cover Ratio (months)                       than 3            9.4            7.6            7.0         6.7         6.5            6.3           5.9          5.5             5.4         5.1
                                                                months

    The total cash expense cover ratio is an indicator of the total liquidity available to a council to meet ongoing and
    emergent financial demands, which is a key component to solvency. It represents the number of months a
    council can continue operating based on current monthly expenses.
                                                                                                                                          Total Cash and Equivalents add Current Investments               x 12
    A higher total cash expense cover ratio indicates that a council has sufficient free cash available to contribute to             Total Operating Expenditure less Depreciation and Amortisation
    the cost of future planned and unplanned expenditures such as infrastructure investment or disaster recovery.                                         less Finance Costs



Asset Management

                                                                Greater
  Asset Sustainability Ratio                                                   136.7%          90.7%          141.3%       159.0%     147.0%         156.2%        151.3%       145.1%       144.4%          87.3%
                                                               than 80%

    The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council
    are being replaced as they reach the end of their useful lives.
                                                                                                                                      Capital Expenditure on Replacement of Infrastructure Assets
    An asset sustainability ratio close to 100% suggests that a council is spending enough on the renewal of its                                              (Renewals)
    assets to compensate for the deterioration in its asset base as loosely proxied by its reported depreciation, with
                                                                                                                                              Depreciation Expenditure on Infrastructure Assets
    outcomes too far below this level being potentially indicative of underspending against capital replacement
    requirements.