Long Term Plan Disclosure Statement for the Period Commencing 1 July 2018 Debt Affordability Benchmarks The following graph compares Council's planned debt with a quantified limit on borrowing contained in the Financial Strategy included in this Long Term Plan. The quantified limits are Net debt as a proportion of total revenue up to a maximum of 250%, Net interest as a proportion of total revenue up to a maximum of 20%, Net interest as a proportion of annual rates income up to a maximum of 30% and Liquidity of at least 110%. Council has met all of its Debt Affordability Benchmarks. Note: Net debt is defined as a total consolidated debt less liquid financial assets and investments; Total revenue excludes development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant or equipment; and Liquidity is defined as external debt plus committed loan facilities plus liquid investments divided by external debt. 2018-2028 Long Term Plan Page 19