ABOUT COUNCIL - Parramatta City Council - NSW Government

ABOUT THESE RESULTSCapital ExpenditureCouncil’s largest capital outlays continue to be for roads,bridges and footpaths, followed by the purchase of plantand equipment. During 2010/11, major expenditure was alsocommitted to the upgrade and maintenance of parks andsporting facilities, environmental improvement programs andstormwater management.FINANCIAL PERFORMANCE INDICATORSThe Division of Local Government requires that selected KeyFinancial Performance Indicators, as presented below, arepublished in all councils’ Annual Financial Reports. The resultsshow that Parramatta City Council is in a sound financialposition.CAPITAL EXPENDITURE BY ASSET TYPECommunity Land (3.58%)Operational Land (14.40%)Office Equipment (0.90%)Furniture and Fittings (1.37%)Plant and Equipment (7.70%)Other (12.09%)Library Books (1.15%)Stormwater Drainage (4.43%)Land Improvements—Depreciation (11.74%)Buildings (6.33%)Other Structures (11.57%)Heritage Collections (0.02%)Roads, Bridges, Footpaths (24.72%)UNRESTRICTED CURRENT RATIOThe Unrestricted Current Ratio assesses the adequacy ofCouncil’s working capital and the ability to satisfy obligationsin the short term. In the year ended June 2011, Council had$2.86 of working capital for every $1 of current liabilitiesto satisfy obligations in the short term. A ratio of 1.00:1 isconsidered sound within the local government industry.UNRESTRICTED CURRENT RATIO3.53.02.5ParramattaGroup AverageCouncil’s position in recent years has exceeded this markexcept in 2006/07, a year that was influenced by loanfunds tied up with the Civic Place redevelopment project.A significant increase occurred in 2010/11 due to additionsto cash reserves as a result of more prudent financialmanagement.Ratio2.01.51.00.50.00.781.821.861.842.8606/07 07/08 08/09 09/10 10/11(Group average figures not available for 2010/11)Overlooking the proposed site of the Civic Place redevelopment68 PARRAMATTA CITY COUNCIL - ANNUAL REPORT 2010/11