2022-05-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                         16 MAY 2022


    Category                                                                                                                            Comments
    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 (-0.12%)
                                                                                                                                         Result: 0.15%
                                                                                                                                         Comment: While long-term
                                                                                                                                          bond and interest rates
                                                                                                                                          remain low Council’s
                                                                                                                                          investment return still
                                                                                                                                          remains above target.
                                                                                                                                          As investment rates
                                                                                                                                          increase opportunities to
                                                                                                                                          maximise returns on surplus
                                                                                                                                          funds will be explored in line
                                                                                                                                          with Council’s investment
                                                                                                                                          policy.
    Rates in Arrears                                                                                                                     Intent: Ensuring that the
                                                                                                                                          amount of unpaid rates
                                              14.0%
      Percentage of Annual Rates in Arrears




                                                                                                                  11.7%                   remains sustainable and
                                              12.0%                                                                                       does not negatively impact
                                                                                10.2%                                     9.9%
                                              10.0%                                                                                       cash flows
                                               8.0%                                      7.3%
                                                                                                6.5% 6.0%
                                                                                                                                 7.1%    Target: 5% industry
                                                      6.2%                                                5.8%
                                               6.0%
                                                             5.7% 5.2%                                                                    benchmark
                                                                         4.6%
                                                                                                                                         Result: 7.1%
                                               4.0%
                                                                                                                                         Comment: Rates arrears
                                               2.0%
                                                                                                                                          continue to decline from the
                                               0.0%                                                                                       high point in the cycle.
                                                      May    Jun   Jul   Aug     Sep     Oct    Nov   Dec   Jan   Feb     Mar    Apr
                                                                                                                                          Reminder notices have
                                                                                Actual           Target                                   been issued and arrears will
                                                                                                                                          continue to stabilise through
                                                                                                                                          to June as they are
                                                                                                                                          collected, and payment
                                                                                                                                          arrangements implemented.
                                                                                                                                          Where appropriate recovery
                                                                                                                                          action will be taken.


   Previous Council Consideration
   Nil.
   Finance
   As above.
   Risks & Opportunities
   Council’s risk register identifies a number of risks that could impact on its ongoing financial
   sustainability. In order to manage and mitigate these risks Council uses various tools which
   include monthly ongoing financial reporting to identify and address emerging issues,
   conservative budgeting, compliance with the Financial Sustainability Policy, regular budget
   reviews, effective liquidity management to ensure sufficient fiscal flexibility, as well as
   adhering to the Reserves and Restricted Cash policy which requires that Council maintains
   both a disaster management reserve and a minimum 3 months cash cover to fund emergent
   matters.

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