Terms of reference

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Queensland Treasury Corporation

Queensland Treasury Corporation (QTC) is to assist the Commissioner perform the following:

  1. Undertake a review to determine the financial viability of local governments that are subject to de-amalgamation proposals which have been referred to the Commissioner by the Minister.
  2. Undertake a financial analysis of both the proposed de-amalgamated local government and the remaining local government to arrive at an assessment of financial viability of these potential local governments.
    • In undertaking this analysis, QTC will be required to consider the financial model provided by the proponent of the amalgamation. If an alternate service delivery model is proposed, this model will need to be benchmarked against a standard delivery model.
    • The financial viability of the potential local governments (both the proposed de-amalgamated local government and the remaining local government) needs to be considered in the context of the financial viability of the existing local government.
  3. Determine the costs of de-amalgamation which the proposed de-amalgamated local government will have to:
    • pay to enable the local government to become fully operational; and
    • contribute to the remaining local government in order for it to meet its costs of de-amalgamation.

    These de-amalgamation costs will need to be factored into the assessment of the financial viability of the de-amalgamated local government.

  4. Determine the additional ongoing operating costs that result from the de-amalgamation, if any, that will have to be met by the de-amalgamated local government and the impact that these costs will have on ratepayers over the five-year period.

In assisting the Commission to perform these tasks, Queensland Treasury Corporation will need to:

  • engage with the proponents of the de-amalgamation to better understand the financial model provided; and
  • engage with the existing local government to better understand the allocation of revenues, costs, assets and liabilities etc between the proposed de-amalgamated local government and the remaining local government.

In determining the financial viability of the existing and proposed resulting local governments, a five-year timeframe shall be used.

Last updated on Tuesday, 07 August 2012