2019-05-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                         13 MAY 2019




Credit Rating and Capacity to Secure Borrowings in the Future
A Credit Review was also undertaken by QTC in February 2019. The aim of the credit review
was to evaluate Council’s financial position and ongoing viability, as well as capacity for loan
borrowings. Council’s credit rating has again been rated as Sound, with a Neutral outlook. QTC
identified that the Sound rating reflects Council's robust historical and forecast financial
performance, supported by its high Council control revenue, relatively low debt balance, strong
cash position, operating surpluses and a sound debt servicing capacity.
This outcome supports Council’s requirement to undertake new loan borrowings in future years
where required.

Working Capital Facility
QTC have also identified that Council is also eligible to apply for an overdraft working capital
facility should a need arise in the future. The overdraft facility, set at competitive marginal interest
rates in line with investment rates, is an alternative financial instrument to consider for accessing
short term cash if there is any risk of using up surplus or the prescribed 3 month cash cover
during a period of unexpectedly high spend or other crisis.

An analysis undertaken by both QTC and Council staff indicates that there is presently no need
for Council to access this facility.

Previous Council Consideration
Nil.

Finance
In line with the Financial Sustainability Policy, Council will still maintain an operating surplus for
the 2018/19 year and improved surpluses in future years. All of Council’s financial sustainability
ratios will remain within the required benchmark ranges.

Risks & Opportunities
The realisation of net savings in interest from the early repayment of loans is subject to market
fluctuations in interest rates.



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