2023-01-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                 16 JANUARY 2023


 Category                                                        Comments
                                                                  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%
                                                                  Result: -36.9%
                                                                  Comment: Council has low debt
                                                                   levels and strong cash holdings.
                                                                   The July rates revenue also
                                                                   inflates the YTD actual outcome.

                                                                  Intent: Ensure appropriate return
                                                                   on investment yield for cash at
                                                                   bank.
                                                                  Target: 0.25% above current
                                                                   Bloomberg commonwealth 10-year
                                                                   bond rate yield (2.95%)
                                                                  Result: 4.17%
                                                                  Comment: With bond rates rising,
                                                                   Council has invested surplus cash
                                                                   in higher yielding term deposits to
                                                                   maximise returns. Council’s
                                                                   investment returns remain above
                                                                   target.

                                                                  Intent: Ensuring that the amount of
                                                                   unpaid rates remains sustainable
                                                                   and does not negatively impact
                                                                   cash flows
                                                                  Target: 5% industry benchmark
                                                                  Result: 5.1%
                                                                  Comment: Rates arrears continue
                                                                   to decline from the high point in the
                                                                   cycle with payments coming due in
                                                                   August. Reminder notices have
                                                                   been issued, and 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

                                                                                      Page 75 of 122