2023-02-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                13 FEBRUARY 2023


 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%
                                                              Result: -55.6%
                                                              Comment: Council has low debt levels
                                                               and strong cash holdings. The January
                                                               rates revenue also inflates the YTD
                                                               actual outcome.
 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 (2.95%)
                                                              Result: 4.04%
                                                              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.


 Rates in Arrears                                             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
                                                               however they remain slightly above
                                                               target. Recovery action may be
                                                               considered where appropriate.




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.


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