2019-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA     28 JUNE 2019


                         ATTACHMENT 1




                            Page 9 of 61

SPECIAL MEETING AGENDA                                                                 28 JUNE 2019

                                                                                    ATTACHMENT 1

     | ¢ ) |   NOOSA                                                         Council Policy
     x         Keene                             FINANCIAL SUSTAINABILITY

    Corporate Plan Reference:                 Long term planning for Noosa Shire

    Endorsed by Council:                      28 June 2019

    Policy Author:                            Director Corporate Services

   POLICY BACKGROUND

   Council has a responsibility to ensure that it has sufficient resources now and into the future to
   provide levels of service that are both affordable and at a level 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.
   Responsible ongoing financial management by Council will achieve the following objectives:
   °     Council operates in an efficient and effective manner, minimising general rate increases.
   °     Full cost pricing compliance for Council business activities.
   °     Ongoing operating surpluses to ensure Council’s equity is not degraded and future financial
         risk can be adequately mitigated.
   e    Appropriate collection of cash funds for ongoing infrastructure and asset replacement and
         renewal.
   °     Future trunk infrastructure financial obligations can be met.
   e     Informed decisions are made on discretionary new operating or capital investment proposals
         (i.e. business cases including whole of life cost analysis).
   °     Infrastructure and assets are maintained to required service levels.
   °     Debt levels will be minimised, and returns on cash holdings maximised.
   °    Achieving all of the minimum financial sustainability benchmarks set by legislation.

   The key measurement criteria for whether Council is achieving its financial sustainability objectives
   over the short and medium term are the three financial sustainability ratios required to be published
   under legislation, namely the:
   1.    Operating surplus ratio;
  2.     Net financial liabilities ratio; and
   3.   Asset sustainability ratio.

   Council’s current and expected financial sustainability performance will be measured and reported
   against the benchmarks set by the state government, as well as by ongoing periodic sustainability
   assessments undertaken by the Queensland Treasury Corporation (QTC).

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