The net value of Central Coast Council’s investment portfolio dropped by $1.77 million for the month to July 31, according to the July investment report presented at the August 24 ordinary council meeting.
According to the report, the outflow was “predominantly due to normal contractual payments.” Interest earnings also fell from $1.3 million during June to $814,000 for the month of July. However, the weighted average interest earned on the council’s portfolio was 3.08% compared with the Bank Bill Swap Rate of 2.14% for the period. All local councils are required to restrict funds received for specific purposes and, according to the July investment report, “restrictions from Gosford Council and Wyong Council have been transferred to Central Coast Council”.
The report contained a table of the new council’s portfolio by source of funds but said: “The restrictions for July are subject to change as the Financial Statements for both Gosford Council and Wyong Council are yet to be finalised and audited for the reporting period ending May 12”. The draft breakdown of restrictions indicated that council is currently holding $35.5 million in unexpended loans and grants. The report also shows that council currently holds over 12 per cent of its non-at-call investments in floating rate notes instead of term deposits.
Agenda item 4.1, Aug 24, 2016 Central Coast Council ordinary meeting