In a year that has seen cost of living expenses rise dramatically, Toowoomba Regional Council's (TRC) sound financial management has seen the organisation balance the needs of the community with the long-term sustainability of the organisation.
In adopting the 2021/22 Annual Report, TRC Mayor Paul Antonio said the past 12 months had created a number of new challenges off the back of the COVID pandemic.
"We've run into unforeseen problems such as supply chain issues and a significant rise in the cost of living expenses, however despite these challenges we were able to adapt to the changing environment," Mayor Antonio said.
"The past year also came with various challenges with four declared flooding events causing more than $100 million in damage to Council roads and associated infrastructure. Given the extent of the damage, flood recovery efforts will likely be our greatest challenge over the coming two years.
"The Annual Report gives us an opportunity to reflect on the past year and the achievements we accomplished in this time, as well as provide the community with an update on our financial position.
"Projects such as the Russell Street Refresh, Highfields Library, Millmerran Pool, Clifton Water Treatment Plant and the completion of the Queens Park Master Plan were all major undertakings throughout the year helping to deliver strategic actions of the Corporate Plan, in partnership with our community.
"I thank my fellow Councillors, Council's Leadership Team and staff from across the organisation for their efforts during 2021/22 as we work together to further strengthen our Region."
The Annual Report was adopted at Council's October Ordinary Meeting on 25 October and also reports Council's progress against the objectives set out in its Corporate Plan 2019-2024.
Prudent financial management resulted in Council maintaining its Queensland Treasury Corporation (QTC) credit rating this year with a 'Sound' rating and 'Neutral' outlook.
TRC Finance and Business Strategy Committee Chair Councillor Geoff McDonald said years of responsible financial management had enabled Council to withstand events such as the floods in February and May.
"Helping our community navigate through the past two years has been a major focus for Council," Cr McDonald said.
"While multiple flood events has seen us record an operational deficit of more than $4 million this financial year, we've accepted this was necessary to help rebuild our Region and to ensure our residents weren't burdened with a large rate rise during this difficult period.
"Another one of the key strategies we implemented to assist our community, was to give greater weight to local suppliers in our Procurement Policy which has a profound impact on our local businesses.
"2021/22 was a record year for local spend with more than $200 million spent locally, representing more than 63 per cent of all Council spend for the year.
"When you look back to 2012, when our local spend was about $56 million or 24%, and you compare it to this year's figure of more than $200 million, the difference is truly remarkable.
"The permanent changes to our Procurement Policy will ensure local businesses are well supported for years to come.
"While we're focused on keeping any rate rises to a minimum, we have a responsibility to our residents to manage our finances in a prudent fashion.
"For the 2021/22 financial year our asset sustainability ratio was 73.84%, which is within our own target of 70% but outside the Department of Local Government, Racing and Multicultural Affairs' target range of 90%.
"Although we're outside the 90% target, we know we're a growing community that requires new infrastructure to support this growth and it's important we get the balance right between building new and renewing existing assets and we believe this to be that target of 70%.
"With an asset base of $5.4 billion, it is more apparent than ever before, that we must continue to fight for more funding from the State and Federal Governments to not only assist in maintaining and operating these assets, but to support long term sustainability.
"Our net financial liabilities is within the recommended target while the operating surplus ratio is slightly below the target, however is expected to be back within the target range by 2023/24.
"Taking all these factors into consideration, Council is in a sound financial position to deliver its budgeted projects and services for the 2022/23 financial year and beyond."
