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BUDGET REVIEW 2 (BR2) FOR THE 2024/25 FINANCIAL YEAR · Report
GENERAL COMMITTEE MEETING 20 JANUARY 2025
8.6 BUDGET REVIEW 2 (BR2) FOR THE 2024/25 FINANCIAL YEAR
Author Financial Services Manager, Pauline Coles
Financial Services | Corporate Services Department
Index ECM/ Subject/ 7.40 – 2024-2025 Budget
Attachments 1. Attachment 1 - BR2 Operating Submissions 2024-25
2. Attachment 2 - BR2 Capital Submissions 2024-25
3. Attachment 3 - BR2 Statement of Income and Expenditure 2024-25
4. Attachment 4 - BR2 Budget Financial Statements 2024-25
EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned activities
to be funded through the financial year. This second budget review for the 2024/25 financial year
(BR2) incorporates any new or emergent actions arising from Council resolution, Executive Team or
Capital Works Executive Committee action, reallocation of funds or realised revenue variance since
the adoption of the current BR1 budget in August 2024.
In summary the budget review is proposing to increase Council’s operating position by $278k,
increasing from a $140k deficit to a $138k surplus. This includes a range of emergent costs that
have been funded through additional revenue and grants received year to date. The revised capital
expenditure program has a base capital works program decreasing from $53.8m to $46.1 million. No
changes were made to the QRA funded disaster program which currently amounts to $78.8
million. This brings the total capital works program to $124.9 million.
Item Current Budget Adjustments Proposed Budget
(BR1) ($’000) ($’000) (BR2) ($’000)
Operating Revenue $139,994 $1,309 $141,302
Operating Expenditure $140,134 $1,030 $141,164
Operating Result ($140) $278 $138
Capital Grants and Contributions
$95,683 ($2,519) $93,164
Revenue
Capital Works Expenditure $132,594 ($7,677) $124,917
The report also seeks adoption of proposed General Cost Recovery Fees and Commercial Charges
for the Noosa Holiday Parks for the period from January 2026 to July 2026. These fees and charges
are reviewed every six (6) months as required to maintain a consistent annual forward booking period
and ensure full cost pricing principles are adhered to in the coming financial years in line with National
Competition Policy.
With the recent endorsement by Council of Amendment No 2. To the Noosa Plan 2020 a new fee
has been proposed for applications seeking consideration of assessment under the superseded
planning scheme.
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Page 2
GENERAL COMMITTEE MEETING 20 JANUARY 2025
RECOMMENDATION
That Council note the report by the Financial Services Manager to the General Committee Meeting
dated 20 January 2025 regarding Budget Review 2 for the 2024/25 Financial Year and
A. Approve the proposed changes to the budget for the 2024/25 financial year as outlined in the
Revised Budget Financial Statements provided in Attachment 1 - 4 to the report; and
B. Adopt the proposed general cost recovery fees and commercial charges schedule for Noosa
Holiday Parks for the period 27 January 2026 to 13 July 2026, and the introduction of an
application for consideration under the superseded planning scheme fee as detailed in the tables
contained within the report.
REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. Consequently, formal budget reviews are
scheduled to occur at least twice annually during August and December, and a third in April if
required, using the latest financial information available as the basis to revise the budget forecast.
The key criteria for budget reviews include:
1. Council must target compliance with its Financial Sustainability Policy.
2. The eligible capital or operating projects must be delivery-ready with a commitment to
complete the project during the year.
3. Capital submissions will be reviewed and authorised by the Capital Works Executive before
inclusion as a budget review submission, where the group will consider justification for the
request, deliverability as well as organisational and community priorities before endorsing
any capital works.
4. All operating and capital submissions for additional spend, reallocation of savings or
additional revenue will be confirmed by the Executive Team based on a business risk
assessment.
The revised statement of comprehensive income, included as Attachment 3, identifies the financial
statement line items that have been affected by the proposed budget adjustments. The budget
financial statements, included in Attachment 4, also identify the impact of the proposed budget
adjustments to Council’s financial sustainability indicators.
1. Proposed Operating Budget Adjustments
A proposed 42 operational budget adjustments will result in a $278k improvement to the
operating deficit. The following table summarises the operational submissions by type of
funding, with a detailed list contained in Attachment 1. The financial statements in Attachments
3 and 4 outline the revised budget position as a result of these proposed adjustments.
Type Submissions Revenue Expense Net
($’000) ($’000) ($’000)
Additional Revenue 3 $885 $274 $611
General Revenue Funded (Emergent) 25 ($159) $375 ($534)
Grant Funded 13 $582 $381 $201
Levy Funded 1 $- $- $-
Total 42 $1,308 $1,030 $278
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
2. Proposed Capital Budget Adjustments
A total of 36 budget review submissions were received for capital works projects, with a
proposed decrease of $7.6 million to the 2024/25 capital works program excluding disaster
funded projects.
With the delivery of QRA funded disaster projects currently under construction, the current year
capital works program includes $78.8 million of QRA funded disaster. These projects relate to
the February 2022 flood event and are fully funded by the Queensland Reconstruction Authority
(QRA). All capital submissions have been reviewed by the Capital Works Executive.
The following table summarises the proposed revised 2024/25 capital budget.
Total Capital Budget Amount
($'000)
Original Budget $45,246
BR1 Adjustments $8,620
QRA Funded disaster projects (carryover) $78,728
Current Capital Expenditure Budget $132,594
Proposed BR2 Adjustments ($7,677)
Revised BR2 Capital Expenditure Budget $124,917
The following table summarises the budget submissions by program and categorised as:
• Multi-Year Rescheduling: Where timing of design and construction works for major projects
straddle multiple financial years, or commencement has been delayed, and the budget has
been reallocated to future years.
• Emergent Works & Variations: Initiation of new capital works items which have arisen since
BR1 or where there has been a variation due to the acceptance of tender, change in scope,
reallocation of funds or savings realised upon completion with project being under budget.
• Project Savings / Transfers: These are realised savings on existing capital works projects
which have been re-allocated to fund emergent works and variations.
The following table summarises the proposed revised 2024/25 capital budget by program, with the
full program contained in Attachment 2.
Current Multi Emergent Project Proposed
Program Budget Year works & Savings / Budget
(BR1) Scheduling Variations Transfers (BR2)
Capital Works
Bridges 2,002 (300) (634) 1,068
Cemeteries 89 89
Coastal Canals and Waterways 3,163 (700) (221) 2,242
Commercial Land & Properties 120 120
Community Facilities 1,413 125 1,538
Corporate Buildings 1,876 68 1,944
Environmental Assets, Bushland,
878 878
Tracks and Trails
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
Gravel Road Network 401 401
Holiday Parks 120 120
Libraries and Galleries 481 481
Parks & Playgrounds 2,970 2,970
Pathways & Boardwalks 2,384 60 (55) 2,389
Public Amenities 722 220 942
Public Transport Infrastructure 712 712
Sealed Roads Network 8,282 457 8,739
Sports Ground and Facilities 2,246 (1,000) 150 1,396
Stormwater Drainage 1,984 (400) 76 1,660
Streetscapes and Road
Corridors
88 62 150
Transport and Infrastructure
1,100 (62) 1,038
Mgmt
Waste Management 10,147 (5,750) 4,397
Other Works
Asset Management 1,997 (713) 1,284
Fleet - Plant Replacement 3,906 946 4,852
Strategic Planning 4,801 (351) 196 4,646
ZEN Program 743 743
Loan Redemption 1,241 1,241
Total Base Capital Program 53,866 (8,501) 2,297 (1,623) 46,040
QRA Funded Disaster Program
Disaster Recovery works 78,727 150 78,877
Grand Total 132,593 (8,501) 2,447 (1,623) 124,917
3. Fees and Charges Amendments
Holiday Park Fees and Charges
Current fees and charges for the Noosa Holiday Parks apply until 26 January 2026. Council
maintains an ‘advance’ fees and charges schedule for the parks to allow for forward booking of sites
by customers.
Twice yearly, Council reviews and amends the fees, including benchmarking and suitability
assessment of the fee and charge categories.
This report proposes the adoption of fees and charges for the Noosa Holiday Parks for a further six
(6) months to the end of the July 2026 school holiday period, as indicated in Tables 1-4.
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
Table 1. Boreen Point Campground
27 January 2026 to 12 July 2026
OFF PEAK PEAK
Change Change Change Change
Current Proposed Current Proposed
$ % $ %
Powered Sites $51.00 $53.00 $2.00 3.9% $56.00 $58.00 $2.00 3.6%
Unpowered Sites $45.00 $47.00 $2.00 4.4% $50.00 $52.00 $2.00 4.0%
Table 2. Noosa North Shore Campground
27 January 2026 to 12 July 2026
OFF PEAK PEAK
Change Change Change Change
Current Proposed Current Proposed
$ % $ %
Powered Sites – Bush $59.00 $61.00 $2.00 3.4% $67.00 $69.00 $2.00 3.0%
Powered Sites – Beach $63.00 $65.00 $2.00 3.2% $70.00 $72.00 $2.00 2.9%
Unpowered Sites $46.00 $48.00 $2.00 4.3% $54.00 $56.00 $2.00 3.7%
Table 3. Noosa River Holiday Park
27 January 2026 to 12 July 2026
OFF PEAK PEAK SHOULDER
Change Change Change
Current Proposed Current Proposed Current Proposed
% % %
Powered $64.00 $66.00 3.1% $79.00 $81.00 2.5% $71.00 $73.00 2.8%
Sites
Unpowered $55.00 $57.00 3.6% $69.00 $71.00 2.9% $62.00 $64.00 3.2%
Sites
Unpowered
Waterfront $60.00 $62.00 3.3% $75.00 $77.00 2.7% $67.00 $69.00 3.0%
Sites
Powered
$57.00 $59.00 3.5% $74.00 $76.00 2.7% $65.00 $67.00 3.1%
Motorhome Bay
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
Table 4. Other Noosa Holiday Park Fees and Charges
27 January 2026 to 12 July 2026
Change Change
Current Proposed
% %
Extra Persons Nightly – Over 5 Years – Boreen Point & Northshore $12.00 $12.00 $0.00 0.0%
Extra Persons Nightly – Over 5 Years – Noosa River $14.00 $14.00 $0.00 0.0%
Extra Vehicles Nightly – if space allows $5.50 $6.00 $0.50 9.1%
Unpowered short term budget site – All Periods – Noosa River $32.00 $32.00 $0.00 0.0%
Public Use of Amenities – Per Day $4.00 $4.00 $0.00 0.0%
Late Checkout $18.00 $19.00 $0.00 5.6%
Group Fee (20+) – per booking $13.00 $14.00 $1.00 7.7%
Washing Machine Charges $6.00 $6.00 $0.00 0.0%
Dryer Charges $4.00 $4.00 $0.00 0.0%
Administration Fee (Cancellations & Amendments) $32.00 $32.00 $0.00 0.0%
Electricity – Daily Access Charge per day $1.20 $1.20 $0.00 0.0%
Electricity – Usage rate per kWh $0.45 $0.45 $0.00 0.0%
Revenue generated by the holiday parks is shared between the Noosa Holiday Parks Management
contractor and Council based on a revenue split arrangement. The cost of delivering the services
associated with the holiday parks as like any business are subject to inflationary
pressures. Accordingly, the proposed fees and charges consider these cost increases to effectively
deliver the Noosa Holiday Parks program into the future.
The proposed fees and charges have also been benchmarked and tested against fees and charges
adopted by government and privately owned camping and caravan parks located in the Fraser Coast
Council, Gympie Regional Council, Sunshine Coast Council, Tweed Shire Council and Byron Bay
Council regions to ensure the proposed fees and charges are in line with industry pricing.
Over time, the Noosa Holiday Park program has developed into a high quality and popular
recreational camping and caravaning tourism offering. Visitation levels have consistently grown year
on year. The proposed fees and charges are considered commensurate with safeguarding and
maintaining the viability of the Noosa Holiday Parks into the future.
Superseded Planning Scheme
With the recent endorsement of Amendment No 2. to the Noosa 2020 plan by Council, a fee for a
development application to be considered under the superseded planning scheme is also being
proposed.
Fee Name Fee Legislative GST Fee Type
(inc GST) Reference
Request for an application to $1,560.00 Local Government N Application
considered under the Superseded Act 2009 | 97(2)(a) Fee
Planning Scheme (BASE FEE)
Page 7
GENERAL COMMITTEE MEETING 20 JANUARY 2025 4. Organisational Establishment The last review of the organisational structure was reported to the Council at the Special Meeting on 28 June 2024 as part of budget adoption process. Several submissions were received as part of the budget review process for new and extended temporary and permanent positions, as well as the conversion of 2 temporary positions to permanent establishment. Details of these submissions are outlined in the table below. * The increase in workplace health and safety positions is being funded through savings in workcover premiums resulting from the change in service provider. # Previously the Heritage Coordinator position (0.26 FTE) was part funded via the heritage levy. With the cessation and redesign of the coordinator position the new Heritage Librarian position (0.51 FTE) will now be part funded by the heritage levy. Link to Corporate Plan Theme No. 5 - Excellence This theme focuses on customer experience, financial sustainability, innovation and technology, levels of service, governance, our employees and volunteers, funding streams and asset management practices. Previous Council Consideration The 2024/25 original budget was adopted by Council resolution on 28 June 2024 (Ref. Special Meeting Minutes, 28 June 2024, Item 2.4, Page 72). The original 2024/25 fees and charges were adopted by Council resolution on 20 June 2024 (Ref. Ordinary Meeting Minutes, 20 June 2024, Item 8.4, Page 12). The 2024/25 budget review 1 (BR1) was adopted by Council resolution on 15 August 2024 (Ref. Ordinary Meeting Minutes, 15 August 2024, Item 8.3, Page 8). The revised 2024/25 fees and charges were adopted by Council resolution on 15 August 2024 (Ref. Ordinary Meeting Minutes, 15 August 2024, Item 8.3, Page 8).
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
Finance
Budget Review 2 continues Council’s focus on, and compliance with, its Financial Sustainability
Policy. Council has an ongoing responsibility to ensure that it has sufficient resources now and
into the future to provide levels of service that are both affordable and considered appropriate
by the community. This responsibility encompasses how decisions are made regarding the
allocation of ratepayer funds to Council’s day to day operations as well as towards the
replacement of existing assets and procurement of new assets.
The key measurement criteria for whether Council is achieving its financial sustainability objectives
over the short and medium term are the achievement of set targets for a variety of financial
sustainability ratios which are required to be published under legislation. These ratios effectively
allow the community to determine:
1. If Council is appropriately funding its day to day operations and asset consumption costs (i.e.
the operating surplus ratio);
2. Ensuring its debt is at a level that can be repaid from current operating revenues (i.e. the net
financial liabilities ratio); and
3. Replacing community infrastructure when required and to ensure asset service levels can be
maintained (i.e. the asset sustainability ratio).
Budget Review 2 continues Council’s financial sustainability commitment with all ratios within the
benchmark ranges set by the Queensland Government:
Original
Indicator Target BR1 BR2
Budget
Council Controlled Revenue Ratio No set target 75.9% 75.2% 74.05%
Operating Surplus Ratio Greater than 0% 0.10% (0.1%) 0.1%
Operating Cash Ratio Greater than 0% 18.10% 17.7% 17.8%
Unrestricted Cash Expense Cover Ratio Greater than 3 months 7.7 months 7.3 months 7.4 months
Total Cash Expense Cover Ratio Greater than 3 months 8.9 months 9.4 months 9.5 months
Asset Sustainability Ratio Greater than 80% 102.70% 136.7% 116.6%
Leverage Ratio 0-3 times 1.1 times 1.2 times 0.94 times
Net Liabilities Ratio Less than 60% 0.70% (3.2%) (7.0%)
Risk & Opportunities
In order to manage and mitigate these risks Council uses various tools which include monthly
ongoing financial reporting to identify and address emerging issues, conservative budgeting,
compliance with the Financial Sustainability Policy, regular budget reviews, effective liquidity
management to ensure sufficient fiscal flexibility, as well as adhering to the Reserves and Restricted
Cash policy which requires that Council maintains both a disaster management reserve and a
minimum 3 months cash cover to fund emergent matters.
Some examples of potential risks that may impact on Council’s operational performance, capital
program delivery, cashflow and cash reserves include:
• substantial damage to or failure of Council infrastructure due to natural disaster or other
emergent issue that may require significant unplanned investment;
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
• Prolonged closure of Council facilities due to unforeseen circumstances;
• A prolonged IT system failure affecting Council’s ability to deliver services or issue rates notices;
• Economic conditions affecting ratepayers’ ability to pay rates;
• Market driven increases in construction and operational costs significantly above estimates;
• Labour and material shortages and delays.
• Fraud attempts may result in financial impacts to Council if funds cannot be recovered
• Reliance on non-recurrent revenue streams (ie interest revenue on grants and short term cash
holdings) to fund business as usual operations may result in higher rate increases in future years
or service level cuts to fund potential shortfalls.
Council is currently in the process of negotiating its new Certified Agreement, with the current
agreement expiring in February 2025. As these negotiations are ongoing and have not yet been
finalised, no financial impact arising from these negotiations has been recognised in this budget
review.
Human Rights
Human Rights Compatibility Statement
In developing this Report, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council. Council representatives will endeavour to act and make decisions under this report in a
manner that is compatible with human rights. This report should be read in conjunction with
Council’s Human Rights Policy.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Financial Services have been in contact with all Council branches. Directors of each department
have reviewed endorsed all submissions received. The Executive Team has also reviewed and
endorsed all submissions received.
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
x Mayor & Councillors x Director x Director
x Chief Executive Officer x Community Development x Financial Services
x Executive Officers x Sport & Active Lifestyles x Fleet
x Community Engagement x Arts & Culture x Revenue Services
x People & Culture x Community Connection x ICT
x Governance x Customer Experience x Procurement
x Commercial Property
Strategy & Environment Development & Regulation Infrastructure Services
x Director x Director x Director
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GENERAL COMMITTEE MEETING 20 JANUARY 2025
x Strategic Land Use Planning x Development Assessment x Infrastructure Planning, Design
and Delivery
x Economic Development & x Local Laws x Civil and Asset operations
Destination Management
x Environmental Services x Environmental Health x Waste
x Innovation & Digital Hub x Building & Plumbing x Building & Facilities
x Property / Permits x Disaster Management