2017-03-13 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                 13 MARCH 2017


Capital Works Program

Actual capital expenditure (excluding commitments) is $7.3 million against the revised full-year
budget of $25.4 million. Committed expenditure totals a further $5.8 million bringing the total of
actual and committed funds to $13.2 million (52% of the total program). There are a number of
changes to the composition of the program proposed which will be subject of a future budget review
report to Council. A report on the status of delivery of the capital program was provided to the
Services & Organisation Committee meeting on 7 March 2017.

Cash Management and Investment Performance

Council funds are currently invested in compliance with Council’s Investment Policy, with 58% held
in highly liquid investments (minimum required of 10%), and all counterparty thresholds within
policy guidelines. Total cash on hand at the end of February was $87.2 million, which recognises
payments received from the half-yearly rates levy. Included in this balance are funds held in trust
and for restricted purposes (unexpended levy and grant funds).

Council’s investment portfolio is balanced across a number of agencies, as shown in the graph on
the left. The graph on the right shows the current risk profile using industry credit ratings.

                             Bendigo                               A2
             Suncorp                                               5%
               7%              5%

       Westpac                                                       A1
        9%                                                           7%
                                                                                   A1+
                                  QTC                                             (QTC)
                                  39%                                              39%


       NAB                                                         A1+
       21%                                                        (Other)
                                                                   49%
                         CBA
                         19%


Actual interest revenue for December was $140,160 with a weighted average yield of 2.08%
against the industry benchmark (Bloomberg AusBond Bank Bill Index) of 1.78%.

Previous Council Consideration

Nil.

Finance & Risk

Finance – as above

Risk – Council’s strategic 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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