2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                  6 JULY 2018


1.    Financial Sustainability Policy

The Financial Sustainability Policy outlines the financial framework that Council will work within to
ensure that community capital is protected and that Council will meet its financial sustainability
targets into the future.

2.    Investment of Surplus Funds Policy

The Investment of Surplus Funds Policy remains unchanged from 2017/18 and outlines how
Council can invest community funds based on certain parameters including authorised
investments and acceptable financial institutions to minimise risk. The policy continues to include
the allowance of a small 10 basis point margin to give preference to those financial institutions
not investing in fossil fuel companies when seeking comparative investment quotes.

3.    Debt Policy

The Debt Policy follows the same format as was adopted for the 2017/18 year. In accordance
with legislation, Council must adopt a Debt Policy for the financial year that includes an outline of
borrowings proposed within the current year plus a forecast of borrowings over the ensuing 9-
year period.

New borrowings of $4.9 million are proposed in the 2018/19 budget, including $2.5 million for the
North Shore Campground redevelopment. $1.25 million towards the Cooroy Hinterland
Playground construction (a 2 year project), and $1.1 million towards funding of the new planning
scheme development. The proposed borrowings have no significant impact on the long term
financial position of Council, as evidenced through the net financial liabilities sustainability
indicator, with overall debt levels slightly rising after allowing for the repayment of existing debt.

4.    Procurement Policy

The Procurement Policy sets out the arrangements for the purchasing of goods and services by
Council having regard to the sound contracting principles outlined in the Local Government Act
2009. The Policy also specifies the relevant expenditure thresholds and related obligations that
must be followed when procuring goods and services on behalf of Council.

5.    General Rate Donations Policy

The General Rate Donations Policy is a new policy that provides guidance with respect to the
granting of general rate concessions to community organisations. The policy sets out legislative
requirements, eligibility criteria, relevant classes of community organisations in addition to
recognition and review processes.


Previous Council Consideration
The current policies were previously adopted by Council at the 29 June 2017 Special Budget
meeting with the exception of the General Rate Donations Policy which is a new Policy.

Finance
Council borrowing is effectively guaranteed by the State Government, and as such any borrowing
must be approved by the Minister for Local Government (in accordance with the Statutory Bodies
Financial Arrangements Act 1982).

The Investment of Surplus Funds Policy encourages diversification and aims at preservation of
capital as a priority over investment returns, thereby minimising risk.


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