2019-11-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                  18 NOVEMBER 2019


 Category                          Comments
 Net Financial Liabilities Ratio      Intent: Outlines the level that net
                                       Council debt can be serviced by
                                       operating revenues. A ratio below
                                       zero implies that liabilities are less
                                       than cash (and other current
                                       assets) and there is adequate
                                       borrowing capacity available if
                                       needed.
                                      Target: less than 60%
                                      Target Date: Ongoing
                                      Result: - 29.2%
                                      Comment: Council has low debt
                                       levels and strong cash holdings.
                                       The cash received from the July
                                       rates issue also inflates the YTD
                                       actual outcome
 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 (September =
                                       1.0%)
                                      Target Date: Ongoing
                                      Result: 1.81%
                                      Comment: Regardless of the
                                       steady decline in long term bond
                                       rates (due to international market
                                       factors), 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
                                      Target: 5% industry benchmark
                                      Target Date: Ongoing
                                      Result: 7.0%
                                      Comment: Stabilising as per
                                       previous years trends as rate
                                       reminders are issued and arrears
                                       are collected. Debt collection
                                       processes also underway on a
                                       number of properties.



Previous Council Consideration
Nil.

Finance
As above.




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