2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA    6 JULY 2018




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SPECIAL MEETING AGENDA                                                                       6 JULY 2018

  FINANCIAL SUSTAINABILITY POLICY

  Debt management
  New debt will only be incurred for specific capital projects where other funding sources have been
  exhausted, and where debt will be utilised for intergenerational equity purposes.
  The net financial liabilities ratio is one of the three (3) key measures of financial sustainability required
  under legislation. The net financial liabilities ratio represents Council's net financial liabilities (total
  liabilities less current assets) expressed as a percentage of total operating revenue. A negative
  percentage indicates that current assets exceed total liabilities. The target net financial liabilities ratio
  set by the state government is less than 60%.
  Council will adopt a conservative approach to new debt to ensure that the net financial liabilities ratio
  is below the target 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).
  ROLES AND RESPONSIBILITIES

  The Mayor is responsible for the preparation and presentation of the annual budget to Council in
  accordance with section 12 (4) (b) of the Local Government Act 2009.
  The Chief Executive Officer is responsible for the delivery of the annual budget.
  RELEVANT LEGISLATION

  Local Government Act 2009
  Local Government Regulation 2012
  Version control
    Version    Reason/ Trigger              Change (Y/N)  Endorsed/ Reviewed by    Date

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