2017-06-29 Special Meeting Agenda

FINANCIAL SUSTAINABILITY POLICY


Debt management

Total Council debt will reduce over the life of the ten (10) year financial plan.

New debt will only be incurred for specific capital projects where other funding sources have been
exhausted, and where debt will be utilised for intergenerational equity purposes.

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 on a
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.

ROLES AND RESPONSIBILITIES

The Mayor is responsible for the preparation and presentation of the annual budget to Council in
accordance with section 12 (4) (b) of the Local Government Act 2009.

The Chief Executive Officer is responsible for the delivery of the annual budget.


RELEVANT LEGISLATION

Local Government Act 2009
Local Government Regulation 2012




Version control:
  Version          Reason/ Trigger             Change (Y/N)   Endorsed/ Reviewed by         Date

  1.0              Create new                                 Council                       29/06/2015

  2.0              Review                      N              Director Corporate Services   16/05/2016

  3.0              Review                      Y              Director Corporate Services   19/05/2017




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