2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA      6 JULY 2018


                         ATTACHMENT 1




                           Page 9 of 63

SPECIAL MEETING AGENDA                                                              6 JULY 2018

                                                                                ATTACHMENT 1

    | ¢ yy    NOOSA                                                         Council Policy
    mm mceeevere                                FINANCIAL SUSTAINABILITY

   Corporate Plan Reference:                 Long term planning for Noosa Shire

   Endorsed by Council:                      6 July 2018

   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:
  °    Council operates in an efficient and effective manner, minimising general rate increases.
  °     Full cost pricing compliance for Council business activities.
  e    Ongoing operating surpluses to ensure Council’s equity is not degraded and future financial
        risk can be adequately mitigated.
  °    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).
  °     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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