2022-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                28 JUNE 2022

REPORT
1     Background
In accordance with sections 104 and 107A of the Local Government Act 2009 and section 170 of the
Local Government Regulation 2012, Council is required to adopt, for each financial year, after 31
May before the financial year and before 1 August in the financial year, a budget and revenue
statement.

The budget document provided for consideration and adoption includes:
•    Budget Financial Statements including Long Term Financial Forecast;
•    Rates and Charges Comparison;
•    Relevant Measures of Financial Sustainability;
•    Schedule of Levies and Separate Charges;
•    Tourism and Economic Development Investment;
•    Capital Program;
•    Revenue Policy; and
•    Revenue Statement.

2     Total Council Expenditure Budget
Council’s total 2022/23 expenditure budget of $160 million incorporating an operating expenditure
budget of $118 million, a capital expenditure budget of $42.0 million which includes loan repayments
of $1.0 million.

3     Financial Sustainability
The 2022/23 budget continues Council’s focus on, and compliance with, its Financial Sustainability
Policy. Council has an ongoing responsibility to ensure that it has sufficient resources now and into
the future to provide levels of service that are both affordable and 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.

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 2022/23 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%            0.1%
 Net Financial Liabilities Ratio   <60%             -7.1%
 Asset Sustainability Ratio        >90%             151.6%




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