Staff Report C7 - Attachment (iv)
ATTACHMENT 4 - PERFORMANCE MEASUREMENT INDICATORS
Performance Measurement Indicator:
Unresticted Current Ratio
Measurement:
Current Assets less Externally Restricted Current Assets
Current Liabilities less Specific Purpose Current Liabilities
Council
Adopted
Benchmark:
Greater than 1.5
Between 1 & 1.5
Less than 1
Good: Financially Sustainable (over 2.5 is not considered optimal use of working capital)
Acceptable: Corrective Action required for long term sustainability
Unsatisfactory: Financially Unsustainable
Unrestricted Current Ratio - Cash/Liquidity
Position
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Financial Year
Commentary:
Purpose is to assess the adequacy of unrestricted working capital and council's ability to meet short term obligations as they fall due
Measure of liquidity i.e. can Council pay its debts as they fall due
Council manages this performance measurement indicator in conjunction with its Long Term Financial Plan
Councils liquidity ratio (after accounting for external reserves) should be built up to a minimum of 1.5
Prior years ratios have been amended to reflect current changes in accounting legislation where practical
The DLG monitor this ratio each year and pay particular attention to unfavourable trends
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Staff Report C7 - Attachment (iv)
ATTACHMENT 4 - PERFORMANCE MEASUREMENT INDICATORS
Measurement:
Net Debt Service Cost
Total Revenue from Ordinary Activities
Council
Adopted
Benchmark:
Less than 10%
Between 10% to 20%
Greater than 20%
Good
Acceptable
Unsatisfactory
Debt Service Ratio
16%
14%
12%
10%
8%
6%
4%
2%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Financial Year
Commentary:
Purpose of the Debt Service Ratio is to measure the availability of operating cash to service debt (including
interest and principal loan repayments)
This indicator shows the amount of annual revenue necessary to service annual debt obligation (loan interest
and principal repayments)
Note 13 in the Audited Financial Statements indicates a debt service ration of 21.8% as at June 2011, this has
been reworked to remove $5,706k in refinance of existing loans from the numerator
Recommended to manage this ratio of the 10 year term of Long Term Financial Plan
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Staff Report C7 - Attachment (iv)
ATTACHMENT 4 -PERFORMANCE MEASUREMENT INDICATORS
Performance Measurement Indicator:
Rates & Annual Charges Outstanding
Rates, Annual & Extra Charges Outstanding
Rates, Annual & Extra Charges Collectible
Measurement:
Council
Adopted
Benchmark:
At year end
Less than 6%
Between 6% to 7.5%
Greater than 7.5%
Good
Acceptable
Unsatisfactory
Rates & Annual Charges Outstanding
80%
2012
2013
2014
70%
60%
September Qtr
50%
December Qtr
40%
March Qtr
30%
Benchmark:
June Qtr
20%
10%
0%
2007
2008
2009
2010
2011
Financial Year
2012
2013
2014
Commentary:
This indicator is the percentage of rates that remain outstanding at the end of each quarter
Rates are payable in quarterly instalments
Council staff undertake collection duties and scheduling of time payments, overdue payments in arrears are referred
to an external Debt Collection Agency to maintain cash flows
Page 3 of 4
Staff Report C7 - Attachment (iv)
ATTACHMENT 4- PERFORMANCE MEASUREMENT INDICATORS
Performance Measurement Indicator:
Sources of Ordinary Revenue (before Capital)
Sources of Ordinary Revenue (before Capital) - $'000's
$'000's
$30,000
$25,000
General Purpose Rates
Specific Purpose Rates (incl DWM)
$20,000
User Charges & Fees
$15,000
Interest Earnings
General Purpose Operational Grants
$10,000
Specific Purpose Operational Grants
$5,000
Operational Contributions
Profit (Loss) on Sale of Assets
$0
2002
2003
2004
2005
2006
2007
($5,000)
2008
2009
2010
2011
2012
2013
2014
Other Revenues
Financial Year
Sources of Ordinary Revenue (before Capital) - %
data entered on rev sources % Note Data ONLY tab
50%
General Purpose Rates
40%
Specific Purpose Rates (incl DWM)
30%
User Charges & Fees
20%
Interest Earnings
NOTE- used advanced inquiry for next years budgets sor
LTFP is too generic for these splits so just use the budget e
General Purpose Operational Grants
10%
Specific Purpose Operational Grants
0%
2002
-10%
2003
2004
2005
2006
2007
2008
Financial Year
2009
2010
2011
2012
2013
2014
Operational Contributions
Profit (Loss) on Sale of Assets
Commentary:
Indicates a measure of the degree of dependency of a particular revenue source
Useful for trend analysis and for considering the future sources of revenue
Management focus on generating User Charges & Fees is recommended - particularly in relation to recoupment of full costs
Councils source of income (except for User Charges & Fees & Sale of Assets) is subject to external influences and factors outside Council's control
This analysis is distorted by the inclusion of a mix of recurrent & non-recurrent income sources
Note 13 of the Annual Financial Statements includes Capital Revenues, this comparison is based on Operational Revenues only
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