2014-01-13 Item 6.3 Appendices 1-5

5. De-amalgamation costs
5.1. Identification of de-amalgamation costs
De-amalgamation costs are those defined in part 3, division 5, section 35 of the
LGDIR. These include additional costs:

       identified in this de-amalgamation transfer methodology pursuant to section
        35(1)(d)

       decided by the transfer committee pursuant to section 35(1)(e)

       decided by the Minister pursuant to section 35(1)(f).


5.2. Initial payment of de-amalgamation costs
In the period leading up to the changeover day, the continuing council will be
responsible for payment of all de-amalgamation costs on behalf of the new council.

The CCEO must ensure detailed records are kept in relation to all de-amalgamation
costs paid.


5.3. Recovery of de-amalgamation costs
The de-amalgamation costs of the new council are a debt payable by the new
council to the relevant continuing council.

This debt may be satisfied by the continuing council deducting the amount of the
debt for de-amalgamation costs from the cash assets to be transferred to the new
council on changeover day.

Alternatively, the continuing council may apply to the department for approval to
establish a Queensland Treasury Corporation (QTC) working capital facility, for the
sole purpose of paying de-amalgamation costs and capitalised interest relating to
the working capital facility.

This working capital facility will be transferred to the new council on changeover day
with the new council being required to discharge the facility by 31 December 2014.


5.4. De-amalgamation costs statement
A monthly de-amalgamation costs statement (DCS) must be prepared for each new
council. For the period to changeover day, the CCEO must prepare the statement.
After changeover day through to the completion of the transfer committee’s term the
CEO of the new council must prepare the statement.




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