27 February 2007 - Ordinary Meeting of Council (pdf. 14MB)

Ordinary Meeting of Council - 27 February 2007 4 / 2
Item 4
S02722
13 February 2007
PURPOSE OF REPORT
To present to Council investment allocations, returns on investments and details of loan liabilities
for January 2007.
BACKGROUND
Council’s investments are made in accordance with the Local Government Act (1993), the Local
Government (General) Regulation 2005 and Council’s Investment Policy which was adopted by
Council on 18 July 2006 (Minute No. 254).
This policy allows Council to utilise the expertise of external fund managers or make direct
investments for the investment of Council’s surplus funds.
COMMENTS
During the month of January, Council had a net cash outflow of $4,700,000 and gross interest and
capital appreciation on Council’s investments was $269,000.
Council’s total investment portfolio at the end of January 2007 is $46,459,400. This compares to an
opening balance of $36,366,900 as at 1 July 2006.
Council’s interest on investments for January year to date is $1,646,000 compared to a year to date
budget of $1,612,000. This is a positive result as Council is achieving higher than expected rates of
returns on investments and is meeting budget despite funds from the sale of Council’s Depot not
being received as anticipated.
Council’s total debt as at 31 January 2007 stands at $10,299,200.
PERFORMANCE MEASUREMENT
Council’s investment portfolio is monitored and assessed based on the following criteria:
• Management of General Fund Bank Balance
The aim is to keep the general fund bank balance as low as possible and hence maximise the
amount invested on a daily basis.
• Performance against the UBS Bank Bill Index
This measures the annualised yield (net of fees and charges) for each of Council’s portfolios.
The weighted average return for the total portfolio of funds is compared to the industry
benchmark of the UBS Bank Bill Index.
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