2020-01-13 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                   13 JANUARY 2020


Category                           Comments
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%
                                      Target Date: Ongoing
                                      Result: (18.8%)
                                      Comment: Council has low
                                        debt levels and strong cash
                                        holdings reflected in the YTD
                                        result.
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 (September
                                        = 1.0%)
                                      Target Date: Ongoing
                                      Result: 1.77%
                                      Comment: Regardless of the
                                        steady decline in long term
                                        bond rates (due to international
                                        market factors), Council’s
                                        investment return still remains
                                        above target
Rates in Arrears                      Intent: Ensuring that the
                                        amount of unpaid rates remains
                                        sustainable and does not
                                        negatively impact cash flows
                                      Target: 5% industry benchmark
                                      Target Date: Ongoing
                                      Result: 5.8%
                                      Comment: Arrears %
                                        progressively decreasing
                                        towards target as outstanding
                                        balances are collected.




Previous Council Consideration
Nil.
Finance
As above.




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