2022-11-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                   14 NOVEMBER 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
                                                                                                                                             (1.80%)
                                                                                                                                            Result: 3.97%
                                                                                                                                            Comment: With bond rates
                                                                                                                                             rising, Council has invested
                                                                                                                                             surplus cash in higher yielding
                                                                                                                                             term deposits to maximise
                                                                                                                                             returns. Council’s investment
                                                                                                                                             returns remain well above
                                                                                                                                             target.
    Rates in Arrears                                                                                                                        Intent: Ensuring that the
                                                                                                                                             amount of unpaid rates
                                             14.0%
                                                                                                                                             remains sustainable and does
     Percentage of Annual Rates in Arrears




                                                                        11.7%
                                             12.0%                                                                   10.8%                   not negatively impact cash
                                                                                9.9%                                                         flows
                                             10.0%
                                                                                                                                            Target: 5% industry
                                              8.0%                                       7.1%                                7.1%            benchmark
                                                     6.5%                                       6.3%                                6.1%
                                                            6.0% 5.8%                                  5.8%
                                              6.0%                                                            4.8%
                                                                                                                                            Result: 6.1%
                                                                                                                                            Comment: Rates arrears
                                              4.0%
                                                                                                                                             continue to decline from the
                                              2.0%                                                                                           high point in the cycle with
                                                                                                                                             payments coming due in
                                              0.0%
                                                     Nov    Dec   Jan    Feb    Mar      Apr    May    Jun    Jul    Aug     Sep    Oct
                                                                                                                                             August. Reminder notices
                                                                                                                                             have been issued, and
                                                                                Actual           Target                                      arrears will continue to
                                                                                                                                             stabilise through to January
                                                                                                                                             as they are collected, and
                                                                                                                                             payment arrangements
                                                                                                                                             implemented.


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.
Some examples of potential risks that may impact on Council’s operational performance, capital
program delivery, cashflow and cash reserves include:
                                            Substantial damage to or failure of Council infrastructure due to natural disaster or other
                                             emergent issue that may require significant unplanned investment;

                                                                                                                                                           Page 40 of 62