2014-01-13 Item 6.3 Appendices 1-5

Authority (ULDA) in accordance with the Caloundra South Master Plan. At present, the
ULDA has not entered into an infrastructure agreement with Stockland. If there is a funding
gap between the cost of required infrastructure 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.


2.2      Financial viability assessment of Existing Council

QTC ratings              Nov 2012 Sunshine Coast Regional Council Strong (Neutral outlook)
                         Nov 2010 Sunshine Coast Regional Council Strong (Neutral outlook)
                         Feb 2010 Sunshine Coast Regional Council Strong (Developing outlook)


In November 2010, Sunshine Coast Regional Council’s financial viability was rated as Strong
with a Neutral outlook.

On the basis of the financial information provided for the de-amalgamation analyses (past
three years actual performance and the five years forecast), QTC is of the opinion that SCRC
would maintain the Strong rating ascribed in November 2010.
A Strong rating reflects:
     historical and forecast operating surpluses in all years
     very low gearing levels throughout the forecast period and high interest and debt service
      cover ratios
     strong liquidity, and
     forecast capital expenditure of $718 million with only 14.3 per cent funded by new
      borrowings.

A neutral outlook has been applied as there are no known foreseeable significant events within
the next 24 months that are expected to have a direct impact on SCRC’s capacity to meet its
financial commitments.




De-amalgamation Analysis of Sunshine Coast Regional Council                                  Page 11