2014-01-13 Deamalgamation Report Attachment

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Sunshine Coast                            De-amalgamation Cost Procedure
Council
  Li         i

             OTC working capital facility means a working capital facility held with Queensland
             Treasury Gorporalon.
The State Government has also approved a De-amalgamation transfer methodology which sets out
additional requirements in relation to De-amalgamation costs. The De-amalgamation Transfer
Methodology was published pursuant to section 20 of the Regulation, The De-amalgamation Transfer
Methodology includes the following provisions in relation to the amalgamation costs:-

      “section 5.7 - Identification of De-amalgamation costs
           De-amaigamation costs are those defined in part 3, division 5, section 35 of the LGDIR,
           These include adoifional costs:
               *  identified in this De-amalgamation fransfer malhodology pursuant to section
                  45/1 )fa)
               *  decided by the transfer committee pursvant to section 35(1)(e)
               *  decided by the Minister pursuant fo section 25/1) /4.

       Section 5,2 - Initia! payment of De-amalgamation costs
           In the period leading up to lhe changeover day, the continuing council will be responsible
          for payment of al De-amalgamation casts on behalf of fhe new council.
           The Continuing CEQ must ensure detailed records are kept in relation Wo all De-
           amalgamation costs paid.

       Section 5.3 - Recovery of De-amalgamation costs
           The De-amalgamation costs of fhe new council are a debt payable by the new council to
           ihe relevant continuing council,
           This debt may be satisfied by the continuing council deducting the amount of the debt for
           De-amalgamation coats from the cash assels lo be franslerred fo the new council an
           changeover day.
           Alfernatively, the continuing council may apoly to the department for approval to establish a
           Queensiand Treasury Corporation (OTC) working capital facility, for the sole purpose of
           paying De-amaigarmation costs and capitalised interest relating to the working capital
           Fercrty.
           This working capital facility wil be transfered to [he new council on changeover day wilh
           the new council being required to discharge the facility by 37 December 2074.
       Section 5.4 - De-amalgamation costs statement
           A monthly De-amalgamation costs statement (DCS) mus! be prepared for each new
           council, For the period to changeover day, (he CCEO must prepare the slatement. After
           changeover day through fo the campletion of the transfer commniiee’s fern tha CEO of the
           new council must prepare the statement.

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