2020-07-13 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                      13 JULY 2020


 Category                                                         Comments
 Investment Return                                                   Intent: Ensure appropriate
                                                                      return on investment yield for
                                                                      cash at bank.
                                                                     Target: 0.25% above current
                                                                      Bloomberg commonwealth 10
                                                                      year bond rate yield (June =
                                                                      0.1%)
                                                                     Target Date: Ongoing
                                                                     Result: 0.77%
                                                                     Comment: Regardless of the
                                                                      steady decline in long term
                                                                      bond rates (due to current
                                                                      economic conditions), Council’s
                                                                      investment return still remains
                                                                      above target
 Rates in Arrears                                                    Intent: Ensuring that the
                                                                      amount of unpaid rates remains
                                                                      sustainable and does not
                                                                      negatively impact cash flows
                                                                      and ability to provide services
                                                                     Target: 5% industry benchmark
                                                                     Target Date: Ongoing
                                                                     Result: 6.5%
                                                                     Comment: Ratepayer payment
                                                                      plans and external debt
                                                                      recovery measures for rate
                                                                      arrears have been put on hold
                                                                      due to the COVID-19 pandemic.
                                                                      The rate arrears ratio will likely
                                                                      increase as the economic
                                                                      impacts of the pandemic are
                                                                      realised over the next 12-24
                                                                      months (with measures in place
                                                                      to manage cash flow risk).


Previous Council Consideration
Nil.

Finance
As above.

Risks & Opportunities
Council’s strategic risk register includes a number of risks that could impact on ongoing financial
sustainability. Effective budget management and reporting is an important risk mitigation tool.




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