Financial strategy gets tick from Treasury Corporation

Redland City Council’s back to basics financial strategy has been given the tick of approval by Queensland Treasury Corporation (QTC).

Mayor Karen Williams said the positive credit rating by the QTC showed Council was in a strong financial position and on the right financial track.

“The review result is an endorsement of our strategy to cut costs, slash waste and red tape and improve Council’s service delivery to the people of the Redlands,” Cr Williams said.

“The QTC found that we have a strong balance sheet with zero net debt and favourable debt servicing capacity, that we are taking positive steps to reduce operating deficits and that we have invested consistently in our asset base.

“It found we have adequate capacity to meet our financial commitments in the short, medium and long term and that we are expected to regularly report operating surpluses, provided we continue to achieve cost savings and increases in net income from our water business.

“As Mayor, I am committed to ensuring Council is on a more sound financial footing. The QTC review shows we are achieving that goal and well on the way to sustaining it.”

Cr Williams said it was pleasing that the QTC saw Council’s cost-cutting strategy and current and forecast financial profile in such a good light.

“The review noted that we are likely to be able to address our operating deficits, manage unforeseen financial shocks and any adverse changes in our business, with minor adjustments,” she said.

“It as just as pleasing that the QTC two-year forecast was that they saw no known foreseeable events that would have a direct impact on our capacity to meet our financial commitments.

“The review noted that Council’s continuing high proportion of forecast own source revenue provides some protection against adverse economic conditions.

“The QTC indicated our result would have been even more impressive had there not been substantial operating deficits averaging 9.5 per cent over the past three years.”