2022-03-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                              14 MARCH 2022


 Category                                                                                                                                      Comments
 Net Financial Liabilities Ratio                                                                                                                Intent: Outlines the level that
                                                                                                                                                 net Council debt can be
               80%
                                                          60%
                                                                                                                                                 serviced by operating
               60%                                                                                                                               revenues. A ratio below zero
                                                                                                                                                 implies that liabilities are less
               40%
                                                                                                                                                 than cash (and other current
               20%                                                                                                                               assets) and there is adequate
                                                                                                                                                 borrowing capacity available if
                                    0%                                                                                                           needed.
   -20%                                                                                                                                         Target: less than 60%
                                                                                         -13%
                                                                                                                                                Result: -58%
   -40%
                                                                                                                                                Comment: Council has low
   -60%                                                                                                                                          debt levels and strong cash
                                                                                                                          -58%
   -80%
                                                                                                                                                 holdings.
                                                      Target                             Budget                         YTD Actual


 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 (0.08%)
                                                                                                                                                Result: 0.33%
                                                                                                                                                Comment: Regardless of the
                                                                                                                                                 current levels of low long-term
                                                                                                                                                 bond and interest rates
                                                                                                                                                 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




                                                                                                                                                 remains sustainable and does
                                                                                                                                       11.7%
                                           12.0%                                                                                                 not negatively impact cash
                                                                                                  10.2%
                                                   9.5%                                                                                          flows
                                           10.0%
                                                                                                                                                Target: 5% industry
                                            8.0%           7.4%                                           7.3%
                                                                                                                 6.5%                            benchmark
                                                                  6.2%                                                   6.0%   5.8%
                                            6.0%
                                                                         5.7%
                                                                                5.2%
                                                                                         4.6%
                                                                                                                                                Result: 11.7%
                                            4.0%
                                                                                                                                                Comment: Rates arrears are
                                                                                                                                                 at its bi-annual peak following
                                            2.0%                                                                                                 the due date for the January
                                            0.0%
                                                                                                                                                 rates issue. This ratio will
                                                   Mar     Apr    May    Jun     Jul      Aug      Sep    Oct    Nov     Dec     Jan    Feb      continue to decline from the
                                                                                                                                                 high point in the cycle as
                                                                                Actual             Target                                        payments are received.
                                                                                                                                                 Recovery action may be
                                                                                                                                                 considered where appropriate.


Previous Council Consideration
Nil.



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