Meeting papers

SPECIAL MEETING                                                                        30 JUNE 2025



3. Financial Sustainability


The 2025/26 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 the achievement of set targets for a variety of financial
sustainability ratios which are 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);
    3. Replacing community infrastructure when required and to ensure asset service levels can be
       maintained (i.e. the asset sustainability ratio).
The budget continues Council’s financial sustainability commitment with all ratios for the 2025/26
financial year within the benchmark ranges set by the Queensland Government.


Indicator                                      Target                2026 Budget

Council Controlled Revenue Ratio             No set target                   76.9%
Population Growth Ratios                     No set target                    1.6%
Operating Surplus Ratio                     Greater than 0%                   0.1%
Operating Cash Ratio                        Greater than 0%                  16.0%
Unrestricted Cash Expense Cover Ratio    Greater than 3 months           6.6 months
Total Cash Expense Cover Ratio           Greater than 3 months           8.1 months
Asset Sustainability Ratio                 Greater than 80%                 104.4%
Asset Consumption Ratio                    Greater than 60%                  89.5%
Asset Renewal Funding Ratio                  No Target Set                  158.6%
Leverage Ratio                                0 - 3 times                  1.1 times
Net Liabilities Ratio                       Less than 60%                     0.2%




For the subsequent 9 years all ratios except the asset sustainability ratio meet the target
requirements. This is due to the timing of proposed renewal projects and some upgrade elements
not being included in the ratio calculation. On average over the 10 year period Council achieved an
asset sustainability ratio of 85.8% which exceeds the set target for this ratio of 80%. Further
refinement of the renewal program will occur as asset forecasts and capital works programs continue
to be reviewed and updated.




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