Treasury rates Noosa ‘sound’

NOOSA Council’s financial health is “sound” and its future financial outlook “positive”, according to a Queensland Treasury Corporation credit review .
Council CEO Brett de Chastel this week welcomed the result as a strong endorsement of council’s prudent financial management.
“This is an excellent result, especially considering we’re a new council and we’ve had only a short period of time to establish our financial systems,” Mr de Chastel said.
The “sound” rating reflects positive budget performance, forecast operating surpluses, low borrowings and council’s zero-based budgeting approach.
“QTC’s original financial assessment in 2012, prior to de-amalgamation, gave the proposed Noosa Council a moderate rating with a neutral outlook,” Mr de Chastel said.
“On a scale of 1 to 7, we have already gone from a 4 (moderate) to a 5 (sound). Our new council is in stronger financial shape than originally predicted and while we are confident we are on the right track, having an independent body like the Queensland Treasury Corporation confirm this, is excellent.”
Mr de Chastel said council was well positioned to improve its credit review rating further in future.
The report was mainly positive for Noosa Council stating council is on track to achieve their 2015 budget and also has the capacity to increase net rates, levies and charges with a forecasted growth in net rates and utility charges of 2.9 per cent per annum between 2016 and 2019.
The report said the rate increase was “modest” and said the increase “may provide NSC with some capacity to increase rates and charges further, if required”.
The review also confirmed the cost of de-amalgamation at $2.6 million and praised council for re-establishing systems and operations after the split from Sunshine Coast Council in 2014.
“(Noosa Council) has restructured core activities and negotiated key supply contracts, enabling operating costs and employee numbers to be reduced while largely maintaining service levels,” the review said.