2014-01-02 Budget Attachments

2013/2014 DEBT POLICY


MEASUREMENT OF SUCCESS
Financial sustainability indicators remain within target ranges and the provision of necessary
infrastructure is not constrained through the lack of capital funding.

Details of outstanding loans will be reported annually in Council’s Financial Statements and Annual
Report.


DEFINITIONS
Business Activity – An activity within the Council structure subject to the application of full cost
pricing principles as defined under the National Competition Policy.
Inter-generational equity – This relates to the fairness of the distribution of the costs and benefits
of a policy when costs and benefits are borne by different generations. (i.e. The principle whereby
those who derive a direct benefit from the service or infrastructure provided actually pay for that
service).
Net financial liabilities ratio – This is an indicator of the extent to which the net financial liabilities
of Council can be serviced by its operating revenues. A ratio greater than zero (positive) indicates
that total liabilities exceed current assets, whereas a ratio of less than zero (negative) indicates
that current assets exceed total liabilities and therefore Council would appear to have the capacity
to increase loan borrowings. The maximum target for ensuring long term financial sustainability is
less than 60%.
QTC – Queensland Treasury Corporation.

RELATED POLICIES AND LEGISLATION
      Local Government Act 2009
      Local Government Regulation 2012
      Statutory Bodies Financial Arrangements Act 1982
      Statutory Bodies Financial Arrangements Regulation 2007




Noosa Shire Council                                                                            Page 3 of 4