2014-01-13 Item 6.3 Appendices 1-5

Queensland Treasury Corporation
summary
Sunshine Coast Regional Council (SCRC or the Existing Council) was formed in March 2008
following the amalgamation of Caloundra City, Maroochy Shire and Noosa Shire Councils.
It covers an area of approximately 3,126 km2 and has a current population of
approximately 151 000.

A proposal has been lodged by the Noosa Independence Alliance (the Proponent) for the
de‐amalgamation of the former Noosa Shire Council (Proponent Council). If successful, a
new Noosa Shire Council would be formed along its former boundaries, which includes an
area of approximately 869 km2 and a population of 30,000.

QTC has been engaged by the Department of Local Government to provide advice and
assistance to the Queensland Boundaries Commission (the Commission) about the
financial aspects of this de‐amalgamation proposal. QTC’s review includes a financial
analysis of both the proposed de‐amalgamating council and what would become the
remaining Sunshine Coast Regional Council (the Remaining Council) to:
 determine the costs of de‐amalgamation for both the Proponent Council and the
    Remaining Council, and
 assess the financial viability of the Proponent Council and the Remaining Council on
    the basis that de‐amalgamation was successful, and compare this to the financial
    viability of the Existing Council.

1.1 Financial impact of de-amalgamation
1.1.1 De-amalgamation costs

De‐amalgamation costs include all costs incurred from the date of a successful poll for de‐
amalgamation of the Proponent from an Existing Council to the date of de‐amalgamation
(i.e., election of Proponent councillors, which is likely to be approximately 12 months after
the poll). QTC has identified the costs of de‐amalgamation to include:
 One‐off costs. These relate to implementation and due diligence, community and staff
     engagement, and information and communication and technology (ICT). They will
     have the greatest direct impact on the cost to ratepayers because they will be
     expensed in full during the first year of de‐amalgamation, and
 Fixed asset costs. These relate to the cost of purchasing new ICT equipment and any
     other new plant and equipment required for the Proponent Council to maintain
     service delivery standards. These assets will be expensed over the term of their useful
     life, therefore impacting ratepayers more subtly over time than one‐off costs.

Successful Proponent Councils will be required to pay their own de‐amalgamation costs as
well as the de‐amalgamation costs of the Remaining Council.




                                       Queensland Boundaries Commissioner Report – Proposed Noosa De-amalgamation
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