2022-08-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                             15 AUGUST 2022


 Category                                                                                                                                       Comments
 Net Financial Liabilities Ratio                                                                                                                • Intent: Outlines the level that
                                                                                                                                                  net Council debt can be
               100%
                                                              60%
                                                                                                                                                  serviced       by       operating
                                                                                                                                                  revenues. A ratio below zero
                                    50%
                                                                                                                                                  implies that liabilities are less
                                                                                                                                                  than cash (and other current
                                           0%
                                                                                                                                                  assets) and there is adequate
                                                                                               -7%                                                borrowing capacity available if
                       -50%
                                                                                                                                                  needed.
   -100%
                                                                                                                                                • Target: less than 60%
                                                                                                                                                • Result: -148%
   -150%                                                                                                                                        • Comment: Council has low
                                                                                                                             -148%
                                                                                                                                                  debt levels and strong cash
   -200%                                                                                                                                          holdings. The July rates
                                                              Target                          Budget                       YTD Actual             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 (0.58%)
                                                                                                                                                • Result: 2.29%
                                                                                                                                                • Comment:: With bond rates
                                                                                                                                                  beginning to rise, Council has
                                                                                                                                                  invested surplus cash in higher
                                                                                                                                                  yielding term deposits to
                                                                                                                                                  maximise returns. Council’s
                                                                                                                                                  investment return still remains
                                                                                                                                                  well above target.

 Rates in Arrears                                                                                                                               • Intent: Ensuring that the
                                                                                                                                                  amount of unpaid rates remains
                                            14.0%
   Percentage of Annual Rates in Arrears




                                                                                                                                                  sustainable and does not
                                                                                                     11.7%
                                            12.0%                                                                                                 negatively impact cash flows
                                                               10.2%                                         9.9%
                                            10.0%                                                                                               • Target:       5%       industry
                                                                                                                                                  benchmark
                                                8.0%                   7.3%                                         7.1%
                                                                              6.5%
                                                                                     6.0%     5.8%
                                                                                                                           6.3%
                                                                                                                                  5.8%          • Result: 4.79%
                                                6.0%   4.6%                                                                              4.8%   • Comment: Rates arrears are in
                                                4.0%                                                                                              line with performance for the
                                                                                                                                                  previous 6 and 12 monthly
                                                2.0%
                                                                                                                                                  cycles.
                                                0.0%
                                                       Aug      Sep    Oct    Nov    Dec      Jan      Feb   Mar    Apr     May   Jun    Jul

                                                                                     Actual            Target




Previous Council Consideration
Nil.

Finance
As above.



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