2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA    30 JUNE 2021


                         ATTACHMENT 1




                           Page 10 of 67

SPECIAL MEETING AGENDA                                                                 30 JUNE 2021

                                                                                    ATTACHMENT 1

     | ¢ @      NOOSA                                                         Council Policy
     be i       Reelonrote                        FINANCIAL SUSTAINABILITY
                                                                                       POLICY

     Corporate Plan Reference:                 Long term planning for Noosa Shire

     Endorsed by Council:                      30 June 2021

     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.
    ®    Appropriate collection and retention of cash funds for ongoing infrastructure and asset
         replacement and renewal (including future climate change mitigation measures).
    e    Future trunk infrastructure financial obligations can be met.
    ®    The implementation of adopted strategies and plans to achieve Corporate Plan goals.
    ®    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.
    e    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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