Meeting papers

            In all cases, where business activities are subject to the provisions of the National
            Competition Policy, the cost to the business will be no less than what would apply to an
            equivalent private sector business.
      12.4 Provision for the repayment of an internal loan will be included in the annual budget for
           the business or operational activity.


GUIDING PRINCIPLES
The purpose of establishing a Debt Policy is to:
•    Comply with the requirements of section 192 of the Local Government Regulation 2012
•    Provide a comprehensive view of Council’s long term debt position and the capacity to fund
     infrastructure growth for the Shire
•    Increase awareness of issues concerning debt management
•    Enhance the understanding between Councillors, community groups and Council staff by
     documenting policies and guidelines
•    Demonstrate to government and lending institutions that Council has a disciplined approach to
     borrowing.

ROLES AND RESPONSIBILITIES

Councillors
Pursuant to section 192 of the Local Government Regulation 2012 detail of the proposed borrowing
for the current year and the future 9 years will be prepared annually as part of the budget process.

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.

External Authorities
Applications outlining proposed borrowings will be forwarded to the Minister for Local Government for
approval.

Periodic Credit Reviews will be undertaken by the QTC on behalf of the State Government.

Financial Services
Loan proceeds will be drawn down subject to cash flow requirements annually so as to minimise
interest expenses.

All lease proposals will be referred to Financial Services for evaluation to assess alternatives for
funding asset acquisition and to ensure statutory compliance.

MEASUREMENT OF SUCCESS
Financial sustainability indicators remain within target ranges and the provision of necessary
infrastructure is not constrained through the lack of capital funding.

Details of outstanding loans will be reported annually in Council’s Financial Statements and Annual
Report.

DEFINITIONS
Business Activity – A Council activity subject to the application of full cost pricing principles as
defined in the Local Government Act 2009 and Local Government Regulation 2012.

Inter-generational equity – This relates to the fairness of the distribution of the costs and benefits of
a policy when costs and benefits are borne by different generations. (i.e. the principle whereby those
who derive a direct benefit from the service or infrastructure provided actually pay for that service).

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