2021-02-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                        15 FEBRUARY 2021


 Category                                                                                                                                 Comments
 Net Financial Liabilities Ratio                                                                                                             Intent: Outlines the level that net
                                                                                                                                              Council debt can be serviced by
                80%
                                                                                                                                              operating revenues. A ratio below
                                                         60%
                60%                                                                                                                           zero implies that liabilities are less
                                                                                                                                              than cash (and other current
                40%                                                                                                                           assets) and there is adequate
                                                                                                                                              borrowing capacity available if
                20%                                                                                                                           needed.
                                     0%
                                                                                                                                             Target: less than 60%
                                                      Target                             Budget                        YTD Actual            Result: -54%
   -20%                                                                                   -8%                                                Comment: Council has low debt
   -40%
                                                                                                                                              levels and strong cash holdings.

   -60%                                                                                                                  -54%

 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 (0.01%)
                                                                                                                                             Result: 0.46%
                                                                                                                                             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

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




                                                   10.3%                                                                                      sustainable    and    does    not
                                           10.0%
                                                                                                         9.6%                                 negatively impact cash flows
                                                           8.3%
                                                                  7.5%
                                                                                                                                             Target: 5% industry benchmark
                                            8.0%                                                                7.1%
                                                                         6.9%
                                                                                6.5%                                                         Result: 5.7%
                                                                                          5.8%                          6.0% 5.8% 5.7%
                                            6.0%                                                                                             Comment:         Arrears       %
                                                                                                  4.5%
                                                                                                                                              progressively decreasing towards
                                            4.0%
                                                                                                                                              target as outstanding balances
                                                                                                                                              are collected
                                            2.0%

                                            0.0%
                                                   Feb     Mar    Apr    May     Jun      Jul     Aug    Sep    Oct     Nov   Dec   Jan

                                                                                Actual             Target




Previous Council Consideration
Nil.

Finance
As above.

Risks & Opportunities
Council’s 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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