2015-06-12 Special Meeting

SPECIAL MEETING AGENDA                                                               12 JUNE 2015


3.   Investment of Council Funds Policy

The Investment Policy 2015/16 was reviewed by the Audit Committee at its meeting held on 25 May
2015. The proposed policy has been modified with a view to simplifying the document and clarifying
the range and scope of available investments.

The most significant changes are to the counterparty thresholds for each risk category, with A2 rated
agencies increased from 10% to 15% (individual limit). It is also noted that Bloomberg have acquired
the UBS Bank Bill index during 2014 and accordingly, references to that industry benchmark within
the policy have been updated.


4.   Debt Management Policy

The Debt Management Policy generally follows the same format as was adopted for the 2014/15
year. In accordance with the legislation, Council must adopt a Debt Management Policy for the
financial year that includes an outline of borrowings proposed within the current year plus a forecast
of borrowings over the ensuing 9-year period.

New borrowings proposed in the 2015/16 budget include $1,360,000 towards the cost of sealing Dr
Pages Road. The proposal satisfies the intent of the Debt Management Policy, being a regionally
significant trunk road. The proposed borrowings have no significant impact on the long term financial
position of Council, as evidenced through the sustainability indicators.


Previous Council Consideration

The current policies were all previously adopted by Council at the 26 June 2014 Special Budget
meeting (with the exception of the Financial Sustainability Policy which is new).


Finance & Risk

The Revenue Policy and Statement is the head of power that allows Council to levy rates and
charges on an annual basis.

Council borrowing is effectively guaranteed by the State Government, and as such any borrowing
must be approved by the Minister for Local Government (in accordance with the Statutory Bodies
Financial Arrangements Act 1982).

The Investment of Council Funds Policy encourages diversification and aims at preservation of
capital as a priority over investment returns, thereby minimising risk.




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