2020-07-10 Special Meeting Agenda

ATTACHMENT 1




  Page 9 of 59

ATTACHMENT 1

  | ¢ §      NOOSA                                                         Council Policy
  ba     i   Relelenrois                       FINANCIAL SUSTAINABILITY

  Corporate Plan Reference:                 Long term planning for Noosa Shire

  Endorsed by Council:                      10 July 2020

  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:
 e    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.
 e    Appropriate collection of cash funds for ongoing infrastructure and asset replacement and
      renewal.
 °    Future trunk infrastructure financial obligations can be met.
 e    Informed decisions are made on discretionary new operating or capital investment proposals
      (i.e. business cases including whole of life cost analysis).
 e    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.

 The key measurement criteria for whether Council is achieving its financial sustainability objectives
 over the short and medium term are the three financial sustainability ratios required to be published
 under legislation, namely the:
 1.   Operating surplus ratio;
2.    Net financial liabilities ratio; and
 3.   Asset sustainability ratio.

 Council's current and expected financial sustainability performance will be measured and reported
 against the benchmarks set by the state government, as well as by ongoing periodic sustainability
 assessments undertaken by the Queensland Treasury Corporation (QTC).

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