Meeting papers

ATTACHMENT 1 - FINANCIAL SUSTAINABILITY POLICY


                                                                               Council Policy
                                                FINANCIAL SUSTAINABILITY
                                                                 POLICY
    Corporate Plan Reference:        Theme No. 5. - Excellence
                                     Objective 5.2 - Continue to deliver a financially sustainable Council
                                     that has the resources now and into the future to achieve its
                                     strategic objectives. This will be supported through the introduction
                                     of enhanced sustainability reporting and performance indicators,
                                     as well as ESG (environment social and governance) accounting
                                     practices as guided by statutory requirements
    Endorsed by Council:             30 June 2025

    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
•       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 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)
•       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.


A Local Government Sustainability Framework has been established by the Queensland State
Government (state government). The framework acknowledges that sustainability is more than
Council’s financial position; it is also about how Council operates, the environment it operates in and
the needs of the community.

In line with envisaged future legislative sustainability disclosure requirements, Council will also
progress the incorporation of environmental, social and governance (ESG) reporting into its financial
performance, pricing and reporting frameworks.


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