2016-02-02 P&O Committee - Item 7 - Attachment 1 - Waste Management PBA Draft Report

Impact Area       Impact Criteria     Impact     Benefits / Cost Description                                                         Qualitative Assessment
                                      Type
                                                                                                                        Likelihood       Consequence          Impact
                  Definition                         targets as a result of the adoption of the CBU model may
                                                     provide for increased marketing activities and external
                  NET                                product sales (and profitability)..
                  BENEFIT             Benefits      The identification of all costs associated with the business     Low               Low              Low Benefit
                  (low)                              may be enhanced via continued refinement of cost
                                                     attribution to the business, in addition to the recognition
                                                     and appropriate cost recovery of any non-commercial
                                                     functions and activities via CSO payments from the general
                                                     fund.
                                      Costs         Additional costs associated with CBU marketing and               Moderate          Low              Low Cost
                                                     branding may not realise increased product sales due to
                                                     the competitive nature of the market.

Noosa   Council   Community           Benefits      Non-commercial activities undertaken by the business             Very High         Very Low         Medium Benefit
Budget Position   Service Provision                  would be able to continue without community impact
                                                     funded via transparent CSO payments from the general
                  NET                                fund.
                  BENEFIT             Costs         Nil Identified                                                   n.a.              n.a.             Nil Cost
                  (medium)

                  Financial           Benefits      Requires the business to set prices on a commercial basis        Very High         Moderate         High Benefit
                  Sustainability                     in a transparent manner to ensure long-term business
                                                     viability and contribute to Council’s financial sustainability
                  NET                                through the payment of dividends, competitive neutrality
                  BENEFIT                            payments and taxation equivalents.
                  (medium)            Benefits      Clearly defined service levels and performance standards         Low               Low              Low Benefit
                                                     documented in service level agreements between Council
                                                     and the CBU may assist Council in gaining productivity
                                                     improvements for internal services.
                                      Costs         Possibility that reduced payments for internal support           Low               Moderate         Low Cost
                                                     services from the business (via formal service level
                                                     agreements) would still need to be funded through other
                                                     areas of Council’s operations (provided existing levels of
                                                     internal services remain).

                  Ratepayer Impact    Benefits      There would be a greater focus on ensuring that charges          High              High             High Benefit
                                                     are set at cost recovery levels, with dividend and taxation
                  NET                                payments from the business potentially available to the
                  BENEFIT                            Council general fund for broader community benefit.
                  (medium)
                                      Costs         There may be negative ratepayer impacts of more                  Low               Moderate         Low Cost
                                                     commercial decisions in the provision of waste services to


Waste Management Public Benefit Assessment                                                                                                                          Page 20