A policy listing City of Coffs Harbour Council’s various financial reserves – how they are funded and how they can be spent – has been adopted by the Council.
At its recent meeting, Council endorsed an inaugural Financial Reserves Policy, which had previously been covered in historic Council resolutions. The policy establishes a framework for preserving and utilising the City’s financial resources and supports the City’s financial strategy and ensures long term fiscal sustainability for the ongoing provision of services to the community.
“This new policy provides a summary of the City’s financial reserves which are grouped into either externally or internally-restricted, while there is a third category for unrestricted cash which are funds to meet the City’s day-to-day operational cash-flow requirements,” said Mayor, Nikki Williams.
“The City ensures that at least $12 million is available as unrestricted cash to fund working capital needs.”
City Acting General Manager, Andrew Beswick said, “the Financial Reserves Policy provides clarity and transparency in the establishment, restriction and withdrawal of funds in order to provide for long-term expenditure, as outlined in the City’s long-term financial plan.
“Council further determined to rename the Airport Lease Reserve to the Future Fund Reserve.
“The purpose of this reserve is to fund strategic community projects, including the investment in, or significant improvement of, City assets which provide services with intergenerational benefits.”
The Future Fund holds the proceeds from the lease of the airport to a private concern in 2020-21. Future airport lease funds will be allocated to this reserve, the Council confirmed.
Separately, Council also resolved to adopt an updated Loans to Community Groups Policy.
The policy outlines the criteria and conditions on which the City will approve loans to community groups who provide services on behalf of the City on City-managed land. These groups are ineligible for loans from financial institutions because they do not own the land on which they provide their services.
The review saw policy references to an outdated 2012 procedure document removed and the detail included in the new policy for transparency.
