2022-07-18 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                                                                                  18 JULY 2022


 Category                                                                                                                                  Comments
 Net Financial Liabilities Ratio                                                                                                            Intent: Outlines the level that net
                                                                                                                                             Council debt can be serviced by
                70%
                                                        60%                                                                                  operating revenues. A ratio below
                60%
                                                                                                                                             zero implies that liabilities are less
                50%
                                                                                                                                             than cash (and other current assets)
                40%                                                                                                                          and there is adequate borrowing
                30%                                                                                                                          capacity available if needed.
                20%                                                                                                                         Target: less than 60%
                10%
                                                                                                                                            Result: -28%
                                     0%
                                                                                                                                            Comment: Council has low debt
    -10%
                                                                                                                                             levels and sufficient cash holdings
    -20%
                                                                                       -13%                                                  which are reflected in the annual
    -30%                                                                                                                                     result.
                                                                                                                       -28%
    -40%
                                                    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 (0.58%)
                                                                                                                                            Result: 0.61%
                                                                                                                                            Comment:: While Council has
                                                                                                                                             achieved returns above the full year
                                                                                                                                             Bloomberg bond rate of 0.09%.
                                                                                                                                             With interest rates and long-term
                                                                                                                                             bond rates rising in May & June
                                                                                                                                             Council’s investment return,
                                                                                                                                             compared to the June index (0.58%)
                                                                                                                                             has started to fall behind target.
                                                                                                                                             Management are currently in the
                                                                                                                                             process of investing surplus cash
                                                                                                                                             into higher yielding products in line
                                                                                                                                             with Council’s investment policy to
                                                                                                                                             maximise returns.
 Rates in Arrears                                                                                                                           Intent: Ensuring that the amount of
                                                                                                                                             unpaid rates remains sustainable
                                          14.0%
  Percentage of Annual Rates in Arrears




                                                                                                       11.7%                                 and does not negatively impact cash
                                          12.0%                                                                                              flows
                                                                10.2%                                          9.9%
                                          10.0%                                                                                             Target: 5% industry benchmark
                                           8.0%                         7.3%
                                                                               6.5% 6.0%
                                                                                                                      7.1%
                                                                                                                             6.3%
                                                                                                                                            Result: 5.83%
                                                                                                5.8%                                5.8%
                                           6.0%   5.2%
                                                         4.6%
                                                                                                                                            Comment: Rates arrears are in line
                                                                                                                                             with performance for the previous 6
                                           4.0%
                                                                                                                                             and 12 monthly cycles. Where
                                           2.0%                                                                                              appropriate recovery action will be
                                           0.0%                                                                                              taken.
                                                  Jul    Aug    Sep     Oct     Nov     Dec     Jan     Feb    Mar    Apr May       Jun

                                                                              Actual             Target




Previous Council Consideration
Nil.
Finance
As above.

                                                                                                                                                                  Page 26 of 45