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Financial Vulnerability Report 2018

In 2018 AEC Group Ltd conducted an assessment of the financial vulnerability of Queensland rural and remote councils on behalf of RAPAD, North West Regional Organisation of Councils and SWRED.

The following key issues exist that potentially threaten the ongoing financial sustainability of North West, Central West and South West Queensland Councils:

• Limited own source revenue and a rate base spread across large geographic areas.

• Substantial declines in their populations over the past five years, meaning less residents now exist to share the rate and cost burden.

• Considerably higher capital and operating costs given distances to markets for labour, goods and services.

• Very high level of capital investment required per head of population that must be financed, renewed and maintained.

• Ageing infrastructure requiring large renewal investments in the short to medium term.

• Volatility of operating grants and some historic grant funding decisions that significantly impacted the ability to provide infrastructure and services to local communities. The limited rate base of most Councils means that own source revenue cannot replace any loss in external funding.

• Adverse weather conditions.

Financial Vulnerability Report 2018

Financial Vulnerability Report 2018

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