2022-01-17 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                      17 JANUARY 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 (0.06%)
                                                                                                                                          • Result: 0.44%
                                                                                                                                          • Comment: Regardless of the
                                                                                                                                            current levels of low long-term
                                                                                                                                            bond and interest rates (due to
                                                                                                                                            current economic conditions),
                                                                                                                                            Council’s investment return still
                                                                                                                                            remains above target. QTC at
                                                                                                                                            call rate currently 0.6%.
                                                                                                                                            Closest comparable term
                                                                                                                                            deposit rate from other
                                                                                                                                            institutions is 0.55% and is for
                                                                                                                                            longer investment terms at 12+
                                                                                                                                            months

 Rates in Arrears                                                                                                                         • Intent: Ensuring that the
                                                                                                                                            amount of unpaid rates
                                           12.0%
                                                                                                                                            remains sustainable & does
   Percentage of Annual Rates in Arrears




                                                                                                             10.2%
                                           10.0%                 9.5%                                                                       not negatively impact cash
                                                                                                                                            flows
                                            8.0%                        7.4%                                         7.3%
                                                                                                                            6.5%
                                                                                                                                          • Target: 5% industry
                                                                               6.2%                                                6.0%
                                                   5.7%                                 5.7%                                                benchmark
                                            6.0%          5.0%                                 5.2%
                                                                                                      4.6%                                • Result: 6.0%
                                            4.0%                                                                                          • Comment: Rates arrears
                                                                                                                                            continue to decline from the
                                            2.0%
                                                                                                                                            high point in the cycle however
                                            0.0%
                                                                                                                                            they remain slightly above
                                                   Jan    Feb    Mar    Apr    May      Jun    Jul    Aug     Sep    Oct    Nov    Dec      target. Reminder notices were
                                                                                                                                            issued in October. Recovery
                                                                               Actual           Target                                      action may be considered
                                                                                                                                            where appropriate.

Previous Council Consideration
Nil.
Finance
As above.
Risks & Opportunities
Council’s risk register includes a number of risks that could impact on ongoing financial
sustainability.
Some examples of identified risks within the register that could have potential 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
• Closure of council facilities due to ongoing Covid 19 restrictions
• A prolonged IT system failure affecting Council’s ability to deliver services or issue rates notices
• Economic conditions affecting ratepayers’ ability to pay rates
• Market driven increases in construction and operational costs significantly above estimates
• Labour and material shortages and delays

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