2022-09-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                       12 SEPTEMBER 2022


    Category                                                                                                                                          Comments
    Net Financial Liabilities Ratio                                                                                                                    Intent: Outlines the
                                                                                                                                                        level that net Council
                                       80%                        60%                                                                                   debt can be serviced by
                                       60%
                                                                                                                                                        operating revenues. A
                                       40%
                                       20%
                                                                                                                                                        ratio below zero implies
                                              0%
                                                                                                                                                        that liabilities are less
                          -20%
                                                                                                                                                        than cash (and other
                          -40%
                                                                                                 -7%                                                    current assets) and
                          -60%
                                                                                                                                                        there is adequate
                          -80%
                                                                                                                                                        borrowing capacity
      -100%
                                                                                                                                                        available if needed.
      -120%                                                                                                                                            Target: less than 60%
      -140%
                                                                                                                               -118%
                                                                                                                                                       Result: -118%
                                                                 Target                        Budget                        YTD Actual
                                                                                                                                                       Comment: Council has
                                                                                                                                                        low debt levels and
                                                                                                                                                        strong cash holdings.
                                                                                                                                                        The July rates revenue
                                                                                                                                                        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 (1.59%)
                                                                                                                                                       Result: 2.63%
                                                                                                                                                       Comment:: With bond
                                                                                                                                                        rates beginning to rise,
                                                                                                                                                        Council has invested
                                                                                                                                                        surplus cash in higher
                                                                                                                                                        yielding term deposits to
                                                                                                                                                        maximise returns.
                                                                                                                                                        Council’s investment
                                                                                                                                                        returns remain well
                                                                                                                                                        above target.
    Rates in Arrears                                                                                                                                   Intent: Ensuring that
                                                                                                                                                        the amount of unpaid
                                               14.0%
      Percentage of Annual Rates in Arrears




                                                                                                                                                        rates remains
                                                                                                 11.7%
                                               12.0%                                                                                          10.8%     sustainable and does
                                                          10.2%                                          9.9%
                                               10.0%
                                                                                                                                                        not negatively impact
                                                                                                                                                        cash flows
                                                                  7.3%                                          7.1%
                                                   8.0%
                                                                          6.5%
                                                                                 6.0%                                  6.3%                            Target: 5% industry
                                                                                        5.8%                                   5.8%
                                                   6.0%                                                                                4.8%             benchmark
                                                   4.0%
                                                                                                                                                       Result: 10.8%
                                                                                                                                                       Comment: Rates
                                                   2.0%
                                                                                                                                                        arrears are in line with
                                                   0.0%                                                                                                 performance for the
                                                           Sep     Oct    Nov    Dec     Jan      Feb    Mar    Apr    May     Jun     Jul    Aug       previous 6 and 12
                                                                                        Actual            Target
                                                                                                                                                        monthly cycles.



   Previous Council Consideration
   Nil.

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