Liverpool Plains Shire Council – Key Financial Indicators
PART - B (SRV)
Performance
measurement
14/15
Approved
SRV 10.2%
3.00:1
14/15 SRV
NOT
Approved
2.71:1
Debt Servicing Ratio
1.81:1
1.88:1
Rate & Annual Charges
Coverage Ratio
38.65:1
36.70:1
Building Infrastructure
Renewals Ratio
95.32:1
83.39:1
Operating Performance %
-3.37%
-6.64%
Own Source Operating
Revenue %
56.46%
55.08%
Debt Service Cover Ratio
18.79:1
16.85:1
Capital Expenditure Ratio
1.24:1
1.15:1
Cash Expense Cover
Ratio
2.78:1
2.25:1
Interest Cover Ratio
59.39:1
53.28:1
Unrestricted Current Ratio
Comment
The SRV will increase this ratio above the
TCorp benchmark of >1.50:1 throughout the
10 year planning period, the ratio increases
from 3.00:1 in 2014/15 to 7.76:1 in 2023/24.
This shows an improved working capital result
with greater financial flexibility in the short
term.
An increased rating base through the SRV
allows for additional recurrent income which
improves the debt servicing ratio over the next
10 years.
The SRV increases Council’s rates and
charges income position giving greater
independence to the organisation with less
reliance upon grants & contributions.
Throughout the 10 year planning period
Council’s average Building Infrastructure
Renewals Ratio is 98.22%. The SRV makes
available the necessary funding in order to
achieve a benchmark (TCorp) result >1.00:1
in 2020/21.
This is an important indicator and the SRV
provides necessary income to commence the
10 year planning period in year 1 with an
above the benchmark result of >-3.37%
(TCorp benchmark >-4.00%). This trend
continues with a positive performance result
of 0.42% achieved in 2018/19 and continuing
to 3.12% in 2023/24.
Although not achieving the benchmark of
>60% during the 10 year planning period, the
SRV goes a long way to improving Council’s
performance in this area, achieving on
average a 57.85% of own source revenue.
The SRV will increase the availability of
operating cash to service Council’s debt and
the forecast result for the next 10 years
exceeds the TCorp benchmark of >2.00:1.
The SRV shall provide much needed cash
injection into the road infrastructure renewal
program and this ratio shall exceed the TCorp
benchmark of 1.10:1 for the entire 10 year
planning period.
With an SRV Council will achieve a TCorp
benchmark result of >3 months in 2015/16,
being year 2 of the 10 year planning period.
Throughout the 10 year planning period its
estimated Council’s operating cash position
will exceed the TCorp benchmark of a ratio
greater than 4:1.