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July 1, 2010

COUNCIL IN STRONG FINANCIAL POSITION

Moreton Bay Regional Council was entering 2010/11 in a strong financial position,according to Mayor Allan Sutherland.

Moreton Bay Regional Council has weathered last years global financial crisis extremelywell compared to many other governments, Mayor Sutherland said.

Councils commitment to drive savings and more importantly achieve savings hascertainly played a huge role in keeping councils finances strong during the worst

economic climate in decades.

Mayor Sutherland said Moreton Bay Regional Councils balance sheet was very strong with excellent liquidity, strong cash holdings and relatively low net debt.

Council is also performing well against key performance indicators set by the StateGovernment, Mayor Sutherland said.

Our benchmarking shows were meeting our obligations regarding the soundmanagement of council assets, and we are using operating revenues effectively to meetour debt.

Council is also on track to achieve targets for the renewal of assets such as our roads,footpaths, building and other public infrastructure.

Mayor Sutherland this years budget contained a short term operating deficit of $5.5million.

All levels of government are currently struggling with deficit budgets due to the economicdownturn caused by the Global Financial Crisis, Mayor Sutherland said.

However, it needs to be clearly understood that Moreton Bay Regional Council will returnto an operating surplus in 2011/12 financial year and that the 2010/11 deficit is beingfunded responsibly using cash reserves.

Mayor Sutherland said cash reserves remained strong and were forecast to be at around$179 million by the end of 2010/11 financial year.

They are then expected to grow to around $217million by the end of the 2012/13financial year and this will allow council to continue to meet the growing needs of ourregion.

Mayor Sutherland said Moreton Bay Regional Councils asset base which includesproperty, plant and equipment sat at around $3.2 billion.

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He said $182 million was committed for capital expenditure in 2010/11 to build and growour community by providing much needed infrastructure across the region.

ENDS

Robert DraycottMedia, Marketing and Communications Unit

Tel: 3480 6436