2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA   30 JUNE 2021




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SPECIAL MEETING AGENDA                                                                    30 JUNE 2021

  FINANCIAL SUSTAINABILITY POLICY

  Annual depreciation forecasts will be developed on an asset by asset basis utilising methodology
  endorsed by the Queensland Audit Office, with assets regularly revalued in accordance with
  legislative requirements
  The QTC project decision framework will be utilised for business case analysis for all new and
  replacement capital projects in accordance with policy. The outcomes from the analysis will be used
  to inform Council of whole of life costing implications associated with each project.
  Debt Management
   New debt will only be incurred as part of Council’s strategic approach to:
  ®     Liquidity management that considers the minimisation where possible of surplus cash
        holdings; and
  e     Intergenerational equity requirements.

  The net financial liabilities ratio is one of the three (3) key measures of financial sustainability required
  under legislation. The net financial liabilities ratio represents Council's net financial liabilities (total
  liabilities less current assets) expressed as a percentage of total operating revenue. A negative
  percentage indicates that current assets exceed total liabilities. The target net financial liabilities ratio
  set by the state government is less than 60%.
  Council will adopt a conservative approach to new debt to ensure that the net financial liabilities ratio
  is below the target over the life of the ten (10) year financial plan. New debt that may be required to
  assist with the funding of trunk infrastructure to cater for population growth will be considered ona
  case by case basis.
  Full Cost Pricing
  Council will ensure that competitive neutrality and full cost pricing outcomes required under
  legislation with respect to its business activities are complied with on an annual basis.
  Commercial Opportunities
  Commercial opportunities will only be considered if they provide value for money to the community
  and have a positive net impact on overall general rate funding requirements of Council.
  The QTC project decision framework will be utilised for business case analysis for all new identified
  commercial opportunities. The outcomes from the analysis will be used to inform Council of whole
  of life costing implications associated with each commercial proposal.
  Climate Change
  Council recognises that mitigation measures to address climate change may have financial
  sustainability implications. Ongoing infrastructure and operating funding will be considered as part
  of long term planning and addressed via inclusion in the 10 year financial plan and discussed
  annually through the budget process (where identified).
  Council will also ensure that operational and strategic decisions made today with associated climate
  change implications will give adequate consideration to minimising the exposure of future Councils
  to potential financial risk.

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