2021-03-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                        15 MARCH 2021


    Category                                                                                                                                 Comments
    Net Financial Liabilities Ratio                                                                                                          •   Intent: Outlines the level
                                                                                                                                                 that net Council debt can
                      80%
                                                                                                                                                 be serviced by operating
                                                           60%
                      60%                                                                                                                        revenues. A ratio below
                                                                                                                                                 zero implies that liabilities
                      40%                                                                                                                        are less than cash (and
                                                                                                                                                 other current assets) and
                      20%                                                                                                                        there       is     adequate
                                                                                                                                                 borrowing           capacity
                                      0%                                                                                                         available if needed.
                                                        Target                            Budget                       YTD Actual
                                                                                                                                             •   Target: less than 60%
             -20%                                                                          -8%
                                                                                                                                             •   Result: -48%
             -40%                                                                                                                            •   Comment: Council has low
                                                                                                                         -48%
                                                                                                                                                 debt levels and strong cash
             -60%
                                                                                                                                                 holdings. The ratio will
                                                                                                                                                 reduce through to June as
                                                                                                                                                 cash is expended on capital
                                                                                                                                                 and operational activities.
    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 (0.00%)
                                                                                                                                             •   Result: 0.41%
                                                                                                                                             •   Comment: Regardless of
                                                                                                                                                 the current levels of low
                                                                                                                                                 long term bond and interest
                                                                                                                                                 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
                                             12.0%
                                                                                                                                                 remains sustainable and
     Percentage of Annual Rates in Arrears




                                             10.0%
                                                                                                   9.6%                                          does not negatively impact
                                                     8.3%                                                                                        cash flows.
                                                            7.5%
                                              8.0%                 6.9%
                                                                          6.5%
                                                                                                          7.1%                               •   Target:     5%      industry
                                                                                                                 6.0% 5.8% 5.7%
                                              6.0%
                                                                                 5.8%                                                            benchmark
                                                                                                                                      5.0%
                                                                                           4.5%                                              •   Result: 5.0%
                                              4.0%
                                                                                                                                             •   Comment:      Arrears     %
                                              2.0%
                                                                                                                                                 progressively decreasing
                                                                                                                                                 towards      target      as
                                              0.0%                                                                                               outstanding balances are
                                                     Mar    Apr    May    Jun     Jul      Aug     Sep    Oct    Nov    Dec     Jan   Feb        collected.
                                                                                 Actual             Target




   Previous Council Consideration
   Nil.

   Finance
   As above.


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