2022-07-12 - S&O Agenda - Item 3 - Attachment 1 - Governance Framework Report

   LONG TERM FINANCIAL PLANNING
   As part of Council’s long term planning for Noosa Shire and to ensure that
   Council’s strategies, policies and projects are financially responsible and
   sustainable, a long-term financial forecast is developed which has a ten year
   horizon outlining allocation of resources for continuing operations, new works
   and services.

   Long-term financial planning is a critical governance tool in supporting:
    • development of financial strategies in areas such as revenue, expenditure
      and borrowings,
    • development of the annual budget,
    • minimising ad hoc financial decisions,
    • transparency with regard to Council’s financial position,
    • reporting against financial targets and goals,
    • capacity of managers to effectively plan and deliver services,
    • development of performance measures and target service levels, and
    • appropriate levels of inter-generational equity.

   Council’s Financial Sustainability Policy ensures that responsible ongoing
   financial management achieves the following objectives:
    • Council operates in an efficient and effective manner, minimising general
      rate increases.
    • Full cost pricing compliance for Council business activities.
    • Ongoing operating surpluses to ensure Council’s equity is not degraded
      and future financial risk can be adequately mitigated.
    • Appropriate collection of cash funds for ongoing infrastructure and asset
      replacement and renewal.
    • Future trunk infrastructure financial obligations can be met.
    • Informed decisions are made on discretionary new operating or capital
      investment proposals (i.e. business cases including whole of life cost
      analysis).
    • Infrastructure and assets are maintained to required service levels.
    • Debt levels will be minimised, and returns on cash holdings maximised.
    • Achieving all of the minimum financial sustainability benchmarks set by
      legislation.

   This Policy is reviewed on an annual basis and re-adopted each year as part of
   our annual budget process.




NOOSA SHIRE COUNCIL                                                             PAGE 34