2014-01-13 Item 6.3 Appendices 1-5

1.4       Key issues for consideration
     Proponent Council and Remaining Council are forecasting minor operating deficits over the
      forecast period. A balanced or surplus operating result is essential to long term financial
      sustainability. Current forecasts for the Proponent Council and the Remaining Council
      do not achieve an operating surplus in any of the forecast years.
     Major regional initiatives may be disrupted
      –     Capacity upgrades to the Sunshine Coast Airport is a regional initiative that needs to
            be considered although this will require significant State or Federal Government
            assistance with or without de-amalgamation.
      –     Existing Council has committed to the Maroochydore Principal Activity Centre
            (PAC). This project may either be delayed or if it continues as planned the cost of
            the project would be borne entirely by the ratepayers of Remaining Council.
     Sequencing around regional waste disposal options may be disrupted: SCRC has
      consciously delayed opening further landfill capacity in the region, instead directing
      resources to exploring alternative waste treatment technologies. If the Remaining
      Council is denied access to the Eumundi Road landfill it will result in significantly
      increased cost to Remaining Council to transport waste outside of the region.
     Existing waste collection contracts may need to be temporarily extended: Existing Council
      will call for tenders for regional waste collection in November 2012, awarding in May
      2013, for commencement in July 2014 for a period of seven years. If the tender cannot
      be put on hold or awarded as individual contracts the existing arrangement will need to
      be temporarily extended resulting in additional costs to both Remaining Council and the
      Proponent Council.
     Uncertainty re Caloundra South: The Urban Land Development Authority (ULDA) has
      not entered into an infrastructure agreement with Stockland for the land at Caloundra
      South. If there is a funding gap between the infrastructure charges and the amount to be
      funded by Stockland, the liability will accrue to the ULDA. At present there is
      uncertainty around the role of the ULDA and concern that this funding gap will need to
      be borne by SCRC. This issue will need to be resolved regardless of de-amalgamation.
     Unitywater: A share in Unitywater can be transferred to the Proponent Council however
      there are legal issues to overcome and added complexities that arise from having an
      additional stakeholder.




De-amalgamation Analysis of Sunshine Coast Regional Council                                    Page 7