2022-02-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                       14 FEBRUARY 2022


Category                                                                                                                                    Comments
Net Financial Liabilities Ratio                                                                                                             • Intent: Outlines the level that
                                                                                                                                              net Council debt can be serviced
             80%
                                                        60%
                                                                                                                                              by operating revenues. A ratio
             60%                                                                                                                              below zero implies that liabilities
                                                                                                                                              are less than cash (and other
             40%
                                                                                                                                              current assets) and there is
             20%                                                                                                                              adequate borrowing capacity
                                                                                                                                              available if needed.
                                  0%
                                                                                                                                            • Target: less than 60%
 -20%
                                                                                       -13%
                                                                                                                                            • Result: -65%
 -40%                                                                                                                                       • Comment: Council has low debt
                                                                                                                                              levels and strong cash holdings.
 -60%
                                                                                                                        -65%
 -80%
                                                       Target                          Budget                         YTD Actual


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 (0.08%)
                                                                                                                                            • Result: 0.34%
                                                                                                                                            • Comment: Regardless of the
                                                                                                                                              current levels of low long-term
                                                                                                                                              bond     and    interest   rates
                                                                                                                                              Council’s investment return still
                                                                                                                                              remains above target.
                                                                                                                                               As investment rates increase
                                                                                                                                               opportunities to maximise
                                                                                                                                               returns on surplus funds will be
                                                                                                                                               explored in line with Council’s
                                                                                                                                               investment policy.

Rates in Arrears                                                                                                                            • Intent: Ensuring that the
                                                                                                                                              amount of unpaid rates remains
                                         12.0%
 Percentage of Annual Rates in Arrears




                                                                                                       10.2%                                  sustainable and does not
                                         10.0%           9.5%                                                                                 negatively impact cash flows
                                                                                                                                            • Target: 5% industry benchmark
                                          8.0%                  7.4%                                           7.3%
                                                                       6.2%                                            6.5%                 • Result: 5.8%
                                                                                                                              6.0%   5.8%
                                          6.0%   5.0%
                                                                              5.7%
                                                                                       5.2%                                                 • Comment:       Rates      arrears
                                                                                                4.6%
                                                                                                                                              continue to decline from the high
                                          4.0%                                                                                                point in the cycle however they
                                                                                                                                              remain slightly above target.
                                          2.0%
                                                                                                                                              Recovery action may be
                                          0.0%
                                                                                                                                              considered where appropriate.
                                                 Feb     Mar    Apr    May    Jun       Jul     Aug     Sep    Oct     Nov     Dec   Jan

                                                                              Actual             Target




Previous Council Consideration
Nil.
Finance
As above.

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