2015-16 Annual Report 2015-16 Annual Report | Page 24

Asset Sustainability Ratio Target range = > 90% Employee costs 40% Materials & services 29% current penses Finance costs 3% Depreciation & amortisation 28% being 160 undertaken and the current year result of 82.68% being below the target range. Council believes that its assets are being renewed at an 140 appropriate time. 120 Integration of Council’s current focus on asset management planning and continued long-term financial planning will improve Council’s ability 100 to make informed decisions regarding asset management into the future. 82.68% 76.63% 80 Net Financial Liabilities Ratio 55.99% Road & bridge network 36% Site improvements 13% Employee costs 40% Water 6% Materials & services 29% Wastewater 15% Finance costs 3% Other assets (Heritage & Intangibles) 1% Depreciation & amortisation 28% Land 2% apital urrent enditure enses y asset class Buildings 16% Plant & equipment 11% Road & bridge network 36% Site improvements 13% Water 6% pital nditure asset quity ass wealth) Wastewater 15% Investment in capital assets 59% Other assets (Heritage & Intangibles) 1% Asset revaluation surplus 41% Land 2% Buildings 16% Plant & equipment 11% 52.38% 49.58% 50.45% 60 44.67% 46.18% Indicates the extent to which operating revenue raised can 43.23%by43.Council 19% Asset Sustainability Ratiotarget ratio over the longcover what it owes (i.e. net liabilities). The 40 Target range = > 90% term is less than 60%. A ratio above the target level over a long-term is 16.62% 160 20 indicative of a Council that is undertaking or has undertaken significant infrastructure investment. Ratios over the target levels for a long period 140 0 be maintained with Council’s sound financial management systems can 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 and 120 the ability to service current and projected debt levels. Net Financial Liabilities 100 82.68% 80120 76.63% 55.99% 60 100 40 80 20 060 80.77% 2015/16 2016/17 88.14% 82.85% 44.67% 46.18% 43.23% 43.19% 80.71% 76.86% 74.12% 78.18% 16.62% 70.40% 70.40% 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 40 Net Financial Liabilities Target range = < 60% 20 120 0 52.38% 49.58% 50.45% 71.17% 52.89% 100 Net financial liabilities ratio Target range = < 60% 2015/16 2016/17 Net financial liabilities ratio 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 80.77% 88.14% 82.85% 78.18% 80.71% 76.86% Council’s borrowings forOperating the yearSurplus of $30.3M Ratio 74. 12% were higher than in previous 80 71.17% 70.40% 70.40% years to fund new projects such as the Toowoomba City Library and Operating surplus ratio Target range = 0% to 10% Waste Management Facility projects. 10 60 9 52.89% 2. Operating Surplus Ratio Investment in capital assets 59% uity wealth) Asset revaluation surplus 41% 40 8 Indicates the extent to which revenue raised by Council (excluding 7 capital grants and contributions) covers its operational expenses. The 20 6 range for this ratio is between 0% and 10%. Should the target ratio target not be maintained over the medium to long-term, Council may be unable 5 to0 withstand unexpected financial events without needing to significantly 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 42015/16 rates, increase borrow money or reduce capital expenditure programs. 3.13% 3.05% 2.81% 2.77% 2.49% 2.05%Ratio Operating Surplus Operating surplus ratio Target range = 0% 1.32% to 10% 1.29% 3 2 10 1 90 8 0.78% 0.14% 2015/16 2016/17 0.52% 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 7 6 5 4 3 2 1 0 2.05% 2.49% 2.81% 3.05% 2.77% 3.13% 1.29% 1.32% 0.78% 0.14% 2015/16 2016/17 0.52% 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Council’s result this year was 0.78%, slightly higher than the original budget of 0.25%, as operating income was higher than operating expenses. 24