2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                               6 JULY 2018


REPORT
1     Background

In accordance with sections 104 and 107A of the Local Government Act 2009 and section 170 of
the Local Government Regulation 2012, Council is required to adopt, for each financial year, after
31 May before the financial year and before 1 August in the financial year, a budget and revenue
statement.

The budget document provided for consideration and adoption includes:
 Budget Financial Statements including Long Term Financial Forecast;
 Rates and Charges Comparison;
 Relevant Measures of Financial Sustainability;
 Schedule of Levies and Separate Charges;
 Capital Program;
 Revenue Policy; and
 Revenue Statement.

2     Total Council Expenditure Budget

Council’s total 2018/19 expenditure budget of $128 million incorporates an operating expenditure
budget of $95.5 million, capital expenditure budget of $29.1 million and loan repayments of $3.3
million.

3     Financial Sustainability

The 2018/19 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 three financial sustainability ratios 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); and
3. Replacing community infrastructure when required and to ensure asset service levels can be
    maintained (i.e. the asset sustainability ratio).

The 2018/19 budget continues Council’s financial sustainability commitment with all three ratios
within the benchmark ranges set by the Queensland Government:

 Indicator                         Target          Budget
 Operating Surplus Ratio           0-10%           0.2%
 Net Financial Liabilities Ratio   <60%            -0.6%
 Asset Sustainability Ratio        >90%            114.6%




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