Meeting papers

The QTC project decision framework will be utilised for business case analysis for all new and
replacement capital projects in accordance with policy. The outcomes from the analysis will be used
to inform Council of whole of life costing implications associated with each project.

Debt Management

New debt will only be incurred as part of Council’s strategic approach to:
•    Liquidity management that considers the minimisation where possible of surplus cash
     holdings; and
•    Intergenerational equity requirements.

The leverage ratio is a measure of financial sustainability required under legislation, which indicates
Council’s ability to repay its existing debt. It is calculated as the book value of debt as a percentage
of Council’s operating result (excluding depreciation, amortisation and finance costs). The target
leverage ratio set by the state government is 0 – 3 times measured as a single-year result and five-
year average result.

Council will adopt a conservative approach to new debt to ensure that the leverage ratio is within the
target band over the life of the ten (10) year financial plan. New debt that may be required to assist
with the funding of trunk infrastructure to cater for population growth will be considered on a case by
case basis.

Full Cost Pricing

Council will ensure that competitive neutrality and full cost pricing outcomes required under
legislation with respect to its business activities are complied with on an annual basis.

Commercial Opportunities

Commercial opportunities will only be considered if they provide value for money to the community
and have a positive net impact on overall general rate funding requirements of Council.

The QTC project decision framework will be utilised for business case analysis for all new identified
commercial opportunities. The outcomes from the analysis will be used to inform Council of whole
of life costing implications associated with each commercial proposal.

Climate Change

Council recognises that mitigation measures to address climate change may have financial
sustainability implications. Ongoing infrastructure and operating funding will be considered as part
of long term planning and addressed via inclusion in the 10 year financial plan and discussed
annually through the budget process (where identified).

Council will also ensure that operational and strategic decisions made today with associated climate
change implications will give adequate consideration to minimising the exposure of future Councils
to potential financial risk.

ROLES AND RESPONSIBILITIES

Councillors
Councillors will consider and adopt the Policy.

Chief Executive Officer (CEO) and Executive Team
The CEO and Executive Team will endorse the for Council adoption and provide leadership and
commitment in complying with the Policy and relevant legislation and documents.


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