2022-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA   28 JUNE 2022




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SPECIAL MEETING AGENDA                                                                           28 JUNE 2022

              ATTACHMENT 1

                | ¢ » |   NOOSA                                                         Council Policy
                    mi    Keener                             FINANCIAL SUSTAINABILITY
                                                                                                 POLICY

               Corporate Plan Reference:                  Long term planning for Noosa Shire

               Endorsed by Council:                       28 June 2022

               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.
              e     Full cost pricing compliance for Council business activities.
              e     Ongoing operating surpluses to ensure Council’s equity is not degraded and future financial
                    risk can be adequately mitigated.
              e    Appropriate collection and retention of cash funds for ongoing infrastructure and asset
                    replacement and renewal (including future climate change mitigation measures).
              °     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).
              e     Infrastructure and assets are maintained to required service levels.
              e     Debt levels will be minimised, and returns on cash holdings maximised.
              °    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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