Council investment report positive

The main financial indicators in the Central Coast Council's investment report for September 2016 appear to be positive.

The net inflow of funds for the month of September was $9.5 million due to quarterly rate instalments that were due at the end of August.

Interest earned on investments was steady at $843,000 to leave Council with a closing balance of $350.7 million at September 30.

At call investments represented over 10 per cent of the Council's total portfolio, according to the September investment report and those with a maturity of less than 12 months accounted for over 50 per cent of total holdings.

The rated average interest rate earned on Council's investments for September was 2.95 per cent compared with the benchmark bank bill swap rate at 1.63 per cent.

Floating rate notes, as opposed to term deposits, currently make up around 13 per cent of the Council's portfolio.

The notes held are all with authorised deposit-taking institutions but most have long-term risk ratings of BBB making them riskier than the Council's term deposit holdings, the majority of which have long term risk ratings of A or better.

Council has also reported on the breakdown of restricted funds but has warned that restrictions are subject to change as the financial statement for the former Gosford and Wyong Councils have yet to be finalised for the period ending May 12.

Central Coast Council agenda 7.3, 26 Oct 2016