2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                30 JUNE 2021


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 2021/22 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%            0.3%
 Net Financial Liabilities Ratio   <60%             -8.1%
 Asset Sustainability Ratio        >90%             107.8%

4     Operating Budget

Council’s 2021/22 operating budget includes both revenue and expenditure required to both fund
and 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                  2021/22
                                   ($’000)
 Revenue                           $106,633
 Expenditure                       $106,325
 Operating Surplus                 $309

5     Budget Breakdown

A brief outline of the main elements of the Council budget is provided below.

5.1   Operating Revenue

Net Rates and Utility Charges

2021/22 budgeted net rates and utility charges total $75 million, with the early payment discount
($2.5 million), pensioner concessions ($700k), and general rate donations for community
organisations ($174k) continuing. An average residential property on the minimum general rate will
receive a $44.20 or 2.9% increase in total rates and charges for the 2021/22 financial year.

The rate notice for these properties will show a minimum general rate increase of $16 (1.4%) in line
with the Queensland local government cost index, no increase in the waste collection charge, and
an increase in the existing environment levy of $8 (14%), sustainable transport levy of $7.50 (33%)
and heritage levy of $3.50 (70%). A new separate rate is being introduced to increase capacity
regarding bushfire resilience and response measures. This levy will be charged on a rate in the $
basis with a minimum charge per property of $10.

Full details of Council’s rates and charges are contained in the Revenue Statement 2021/22.

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