THE Queensland Treasury Corporation has found flaws in predictions of a return to surplus in 2013 outlined in Redland City's 10-year financial strategy.
The finding was made in a QTC report which ran a ruler over the previous council's 10-year financial strategy at the request of new mayor Cr Karen Williams.
Although the report found the council had a "sound balance sheet with a low level of debt", it said a return to surplus was highly dependent on achieving high operational efficiencies, increases in net rates and utilities charges of at least five per cent per annum.
It also said any surplus was dependent on the "successful" reintegration of council's water business and the impact of the carbon tax.
It said the previous council's projected rate increases for the next 10 years were above the Reserve Bank's target CPI.
Cr Williams said the review highlighted the difficulties council faced in keeping down rates, fees and charges, but stuck to her promise to keep increases in general rates revenue to CPI.
Redland City Council will hand down its budget for the 2012-2013 financial year on Thursday at 11.30am.