2018-06-12 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                                         12 JUNE 2018


3. The additional multi-year project funding of $360,000 in 2015/16 was approved by Council at its
   meeting on 17 December 2015. This amount attracted GST as it was a grant tied to specific purposes.
4. In 2016/17 NBRF indicated that they did not require the full $140,000 budget for operational expenses
   and provided invoices requesting $70,000 only.
5. In the CEO’s report to Council dated 6 February 2018, it was indicated that the Foundation did not
   intend to request payment of $250,000 in project funding for the 2017/18 financial year as they were
   committed to their current round of grant projects. However, this amount has now been drawn down at
   NBRF’s request in accordance with the terms of the current funding agreement and Council’s 2017/18
   adopted budget.

2.    Funding outcomes
Attachment 2 provides a short summary of funded projects, the proponents, total value including
and status of each project.

This Foundation has approved a total of 13 projects at a total value of $2,775,016 with an
investment by Council of Environment Levy funds totalling $919,916. The model of using a
public Trust has been successful in attracting a variety of project partners with Council grant
funding leveraged by a factor of 3:1 (total project value compared to value of Council’s grant
program funding).

3.    Performance
Aside from the Funding Deed, the Foundation has faced challenges associated with turnover in
its board composition, community perceptions about the governance model and the need for
transparency of its operations given the level of ratepayer funding being provided to the
Foundation.

Communications between the Foundation and Council include regular informal updates provided
to Councillors in addition to the formal reports required under the current Funding Deed.

It is also important to note that NBRF is required to meet the purposes of the trust that was
established by the Council. In doing so, this enables them to retain DGR status.

4.    Proposed funding deed 2018-2021
It is proposed that Council enter into a further three-year Funding Deed based on continued
funding of operational expenses up of $140,000 for year 1 of the deed with consideration of any
future operational funding being conditional on their response to a Noosa Council request to
undertake governance reform (see reference to Clause 6 below) and subject to annual
negotiation (as is the case with the current Funding Deed).

Key changes proposed in the proposed draft deed compared to the 2015 – 2018 funding deed
include:
a)    Project funding is identified during Year 1 of the deed only with an amount of $125,000
      quarantined from the Environment Levy for applications for project funding put forward by
      the Foundation. The Foundation may apply for a greater amount but it is up to Council as to
      whether it approves that funding based on the suitability of proposed projects, alignment
      with the Trust purposes and Council’s strategic aims for the Noosa Shire environment.
b)    Council will have the final decision in relation to Council grant funding as it will determine
      whether to approve projects and associated Council grant funding as opposed to the
      current model of grant funding being provided direct to the Foundation who currently
      determine which projects receive funding from that Council grant.
c)    Funding for projects over the remaining 2 years of the deed is subject to Council’s grants
      process (i.e. no guarantee of any project grants for NBRF with funding being allocated by
      Council based on the merits of projects put forward). NBRF is being encouraged to focus
      more on their fundraising role.

                                                                                         Page 5 of 97