2021-05-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                17 MAY 2021


 Category                                                                                                                                Comments
 Net Financial Liabilities Ratio                                                                                                            Intent: Outlines the level that net
                                                                                                                                             Council debt can be serviced by
                80%
                                                                                                                                             operating revenues. A ratio below
                                                         60%                                                                                 zero implies that liabilities are
                60%
                                                                                                                                             less than cash (and other current
                                                                                                                                             assets) and there is adequate
                40%                                                                                                                          borrowing capacity available if
                                                                                                                                             needed.
                20%
                                                                                                                                            Target: less than 60%
                                                                                                                                            Result: -35%
                                     0%
                                                     Target                             Budget                     YTD Actual               Comment: Council has low debt
   -20%                                                                                  -8%                                                 levels and strong cash holdings.
                                                                                                                                             The ratio will reduce through to
                                                                                                                                             June as cash is expended on
   -40%                                                                                                              -35%                    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: 0.50%
                                                                                                                                            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    remains
                                           12.0%
   Percentage of Annual Rates in Arrears




                                                                                                                                             sustainable and does not
                                                                               9.6%                                        9.5%              negatively impact cash flows.
                                           10.0%
                                                                                                                                            Target: 5% industry benchmark
                                            8.0%                                         7.1%                                     7.4%
                                                   6.9%
                                                          6.5%
                                                                                                 6.0% 5.8% 5.7%
                                                                                                                                            Result: 7.4%
                                                                 5.8%
                                            6.0%                                                                    5.0%                    Comment: Following issue of
                                                                        4.5%
                                                                                                                                             reminder notices in April, rates
                                            4.0%
                                                                                                                                             arrears are reducing and is in line
                                            2.0%
                                                                                                                                             with performance for the same
                                                                                                                                             period in previous years.
                                            0.0%
                                                   May    Jun    Jul    Aug     Sep      Oct     Nov   Dec   Jan    Feb    Mar    Apr

                                                                               Actual             Target




Previous Council Consideration
Nil.

Finance
As above.

Risks & Opportunities
Council’s 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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