2022-06-13 General Committee Meeting Agenda PUBLIC

GENERAL COMMITTEE MEETING AGENDA                                                       13 JUNE 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 (-0.12%)
                                                                • Result: 0.65%
                                                                • Comment: While long-term bond
                                                                  and interest rates remain low
                                                                  Council’s investment return still
                                                                  remains above target.
                                                                   As investment rates increase
                                                                   opportunities to maximise returns on
                                                                   surplus funds will be explored in line
                                                                   with Council’s investment policy.

    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: 6.3%
                                                                • Comment: Rates arrears continue to
                                                                  decline from the high point in the
                                                                  cycle. Reminder notices have been
                                                                  issued and arrears will continue to
                                                                  stabilise through to June as they are
                                                                  collected,        and       payment
                                                                  arrangements implemented. Where
                                                                  appropriate recovery action will be
                                                                  taken.


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.
Some examples of potential risks that may 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;


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