Noosa Council Annual Report 24/25

      Noosa Council
      Unaudited Long Term Financial Sustainability Statement (continued)
      §Note/Subtotal§
      §Total§




                                                                                              Target     Actual                                                  Forecast
                                                                                               2025       2025      2026       2027       2028      2029       2030    2031         2032      2033       2034        2035

      Asset Management

      4. Asset sustainability ratio
      Capital expenditure on replacement of infrastructure assets
      (renewals)                                                                              Greater
                                                                                                        314.25% 123.00%       74.00%    106.00%    106.00%    79.00%    75.00%     83.00%    77.00%     76.00%      67.00%
                                                                                             than 80%
      Depreciation expenditure on infrastructure assets

      The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council are being replaced as they reach the end of their useful lives.


      5. Asset consumption ratio
      Written down replacement cost of depreciable infrastructure
      assets                                                                                  Greater
                                                                                                         70.26%     69.95%    69.15%     68.27%    67.31%     66.19%    64.95%     63.70%    62.39%     61.09%      59.68%
                                                                                             than 60%
      Current replacement cost of depreciable infrastructure assets

      The asset consumption ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would cost to build a new asset with the same




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      benefit to the community.


      6. Asset renewal funding ratio
      Total of planned capital expenditure on infrastructure assets
      renewals over 10 years
                                                                                              Not Set   358.85% 351.96% 191.66% 340.04% 321.50% 272.88% 265.62% 381.84% 379.46% 401.48% 365.15%
      Total required capital expenditure on infrastructure asset
      renewals over 10 years

      The asset renewal funding ratio measures the ability of a council to fund its projected infrastructure asset renewal/replacements in the future.


      Debt servicing capacity

      7. Leverage Ratio
      Book value of debt
                                                                                               0-3         0.8         1.2       1.4        1.4       1.5        1.4       1.3        1.2       1.0        0.9         0.0
      Total operating revenue less total operating expenditure add                             times                 times     times      times     times      times     times      times     times      times       times
                                                                                                         times
      depreciation and amortisation

      The leverage ratio is an indicator of a council's ability to repay its existing debt. It measures the relative size of the council's debt to its operating performance.




      continued on next page ...                                                                                                                                                                                 Page 60 of 62




                        Noosa Council
                        Unaudited Long Term Financial Sustainability Statement (continued)
                        §Note/Subtotal§
                        §Total§




                                                                                              Target     Actual                                                  Forecast
                                                                                               2025       2025       2026       2027      2028      2029       2030    2031         2032       2033      2034        2035

                        Financial Capacity

                        8. Council Controlled Revenue
                        Net rates, levies and charges add fees and charges
                                                                                              Not Set    69.46%     76.89%     76.85%    77.75%    78.30%     78.75%     79.08%    79.31%     79.50%    79.63%      79.82%
                        Total operating revenue

                        Council controlled revenue is an indicator of a council's financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.


                        9. Population Growth
                        Prior year estimated population
                                                                                     -1       Not Set    1.81%      1.55%      0.62%      0.62%     0.62%      0.62%     0.62%      0.62%     0.62%      0.62%       0.62%
                        Previous year estimated population

                        Population growth is a key driver of a council's operating income, service needs, and infrastructure requirements into the future.
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                        Noosa Council Financial Management Strategy

                        Council measures revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient allocation of resources to ensure the most effective
                        provision of services. Council ensures that its financial management strategy is prudent and that its long-term financial forecast shows a sound financial position whilst also being able to
                        meet the community’s current and future needs.

                        Council aims to operate within a set of conservative guide-posts to ensure we are financially sustainable in the short, medium and long term. As part of our financial strategy, we have
                        adopted seven key financial performance indicators to guide our financial health. In addition to the financial indicators, we have the above three sustainability indicators that have been set
                        by the Department of Local Government, Community Recovery and Resilience to help monitor the long-term sustainability of all councils across Queensland. Throughout the financial year,
                        these indicators are calculated and reported on monthly at Council meetings, as part of a full suite of financial reports. Should there be any deviation outside these parameters, the executive
                        management and Council will be fully informed and may take corrective action as required.




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                                                                                                             Noosa Council Annual Report 24/25