2019-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                              28 JUNE 2019


3     Financial Sustainability

The 2019/20 budget continues Council’s focus on and compliance with its Financial Sustainability
Policy. Council has an ongoing responsibility to ensure that it has sufficient resources now and
into the future to provide levels of service that are both affordable and considered appropriate by
the community. This responsibility encompasses how decisions are made regarding the
allocation of ratepayer funds to Council’s day to day operations as well as towards the
replacement of existing assets and procurement of new assets

The key measurement criteria for whether Council is achieving its financial sustainability
objectives over the short and medium term are three financial sustainability ratios required to be
published under legislation. These ratios effectively allow the community to determine:
1. If Council is appropriately funding its day to day operations and asset consumption costs (i.e.
    the operating surplus ratio);
2. Ensuring its debt is at a level that can be repaid from current operating revenues (i.e. the net
    financial liabilities ratio); and
3. Replacing community infrastructure when required and to ensure asset service levels can be
    maintained (i.e. the asset sustainability ratio).

The 2019/20 budget continues Council’s financial sustainability commitment with all three ratios
within the benchmark ranges set by the Queensland Government:

 Indicator                         Target          Budget
 Operating Surplus Ratio           0-10%           0.1%
 Net Financial Liabilities Ratio   <60%            -6.8%
 Asset Sustainability Ratio        >90%            119.6%


4     Operating Budget

Council’s 2019/20 operating budget includes both revenue and expenditure elements required to
deliver day to day operations according to current levels of service. The table below outlines the
proposed operating budget position, with an operating surplus position ensuring that Council’s
required operating expenditure for the financial year is fully funded by operating revenue.

 Operating Budget                  2019/20
                                   ($’000)
 Revenue                           $98,656
 Expenditure                       $98,520
 Operating Surplus                 $136




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