2020-10-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA               12 OCTOBER 2020


    Category                              Comments
    Asset Sustainability Ratio           Intent: Measures the extent
                                          to which assets are being
                                          replaced as their condition
                                          degrades to ensure service
                                          potential is maintained
                                         Target: 90% of depreciation
                                          budget spent on renewals
                                          annually
                                         Result: In line with budget
                                         Comment: The ratio will
                                          progressively increase each
                                          month as expenditure on
                                          renewals occurs.

    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%
                                         Result: -48.7%
                                         Comment: Council has low
                                          debt levels and strong cash
                                          holdings. The July rates
                                          revenue and prepayment of
                                          the financial assistance
                                          grant 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 (0.11%)
                                         Result: 0.65%
                                         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




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