2022-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA   28 JUNE 2022




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SPECIAL MEETING AGENDA                                                                                28 JUNE 2022

              COUNCIL POLICY —-MANAGEMENT OF RESTRICTED CASH

              Funds can only be applied in accordance with the purpose for which they were originally collected,
              as outlined in the Revenue Statement. Should any levy be discontinued, remaining funds will be
              allocated in accordance with the provisions of the Local Government Regulation 2012.
              Developer Contributions
              This category includes contributions received from developers in accordance with conditions applied
              to development applications, subject to constraints imposed by other legislation. Funds may be
              allocated to fund trunk infrastructure investment or other expenditure as part of the annual budget
              process, and any unspent funds received in a financial year will be constrained for future use.
              Unexpended Grants and Subsidies
              This category includes funds received from either State or Federal Governments by way of a specific
              advance or grant that is constrained or tied to a specific project or purpose, subject to contractual
              obligations or other legislation.
              Carbon Tax

              This category includes money collected historically through waste management charges to satisfy
              Council’s future carbon tax liability for the Eumundi Road landfill site.
              Unexpended Loans
              Loans are raised each year for specific projects as outlined in Council’s debt policy, adopted with
              the annual budget. Any unspent funds will be constrained for application against the original projects
              identified in the budget and expended in subsequent financial years.
              2.    Internally Restricted Cash
              Natural Disaster Rehabilitation

              Council makes provision in each budget to cater for natural disaster events, but the frequency and
              severity of events cannot be planned with any accuracy. Accordingly, cash will be restricted with a
              target balance of 5% of general rates revenue to cater for rehabilitation and repairs associated with
              storms, flooding, bush fires or other unforeseen events. The balance will be targeted to be
              maintained each year after consideration of surplus cash available from operations, and the financial
              impact of any actual disaster events.
              Asset Renewal

              Council will ensure that it maintains its assets and infrastructure on an ongoing basis at defined
              levels to ensure that services are able to be provided effectively to the community. The asset
              sustainability ratio is one of the three (3) key measures of financial sustainability required under
              legislation. Council will target over the life of the ten (10) year financial plan to achieve a minimum
              asset sustainability ratio of 90% (including plant, fleet and office equipment renewals) consistent with
              the benchmark unless condition based renewal forecasts demonstrate a percentage lower than 90%
              in any given year.
              100% of the annual depreciation charge will be constrained and made available for investment in
              asset renewal. Vvhere funds are not fully allocated within any financial year, and the actual asset
              sustainability ratio achieved is less than 100%, any remaining surplus will be constrained to provide
              for expenditure in a subsequent period where required.

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