2026/27 FINANCIAL POLICIES · Attachment 9 - Management of Restricted Cash Policy

Attachment 9 – Management of Restricted Cash Policy

1.    Externally Restricted Cash

Unexpended Special Rates and Charges Levy Funds

This category includes money received from special rates and charges, as outlined in the Revenue
Statement, and for which a levy Overall Plan provides for funds to be spent over one or a number of
financial periods. If the Overall Plan is for a number of financial periods, an annual implementation
plan must be adopted by Council each year.
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 the 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, or where it specifically relates to expenditure or a
commitment in a future financial year.

2.   Internally Restricted Cash

Unexpended Separate Rates

This category includes money received for separate rates and charges, as outlined in the Revenue
Statement.

Funds will only be applied in accordance with the purpose for which they were originally collected,
as outlined in the Revenue Statement. Should any rate be discontinued, remaining funds will be
allocated back to consolidated revenue in accordance with the provisions of the Local Government
Regulation 2012.

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 nine (9) 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 80% (excluding plant, fleet and office equipment renewals) consistent with
the benchmark unless condition-based renewal forecasts demonstrate a percentage lower than 80%
in any given year.
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