ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG
ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG
ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>CITY</strong> <strong>OF</strong> <strong>GREATER</strong> <strong>GEELONG</strong><br />
NOTES TO THE FINANCIAL <strong>REPORT</strong> FOR THE YEAR ENDED 30 JUNE <strong>2008</strong><br />
40 Financial ratios - Performance indicators<br />
(a) Debt servicing ratio (to identify the capacity of Council to service its outstanding debt)<br />
<strong>2008</strong> <strong>2007</strong> 2006<br />
$000 (%) $000 (%) $000 (%)<br />
Debt servicing costs 897 = 0.40% 832 = 0.37% 714 = 0.37%<br />
Total revenue 226,825 223,459 194,278<br />
Debt servicing costs refer to the payment of interest on loan borrowings and bank overdraft.<br />
The ratio expresses the amount of interest paid as a percentage of Council's total revenue.<br />
(b) Debt commitment ratio (to identify Council's debt redemption strategy)<br />
Debt servicing & redemption costs 5,864 = 5.08% 5,165 = 4.83% 4,215 = 4.76%<br />
Rate revenue 115,382 106,874 88,506<br />
The strategy involves the payment of loan principal and interest.<br />
The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.<br />
(c) Revenue ratio (to identify Council's dependence on non-rate income)<br />
Rate revenue 115,382 = 50.87% 106,874 = 47.83% 88,506 = 44.85%<br />
Total revenue 226,825 223,459 197,352<br />
The level of Council's reliance on rate revenue is determined by assessing rate revenue as a proportion of the total revenue of Council.<br />
184
Change language