2015-05-04 Attachment 1 to Item 1 General Committee Agenda - MCU14 0009 Referral Agency Response

GENERAL COMMITTEE MEETING AGENDA                                                       4 MAY 2015


Previous Funding Arrangements

Noosa Council inherited a number of funding arrangements as a result of the de-amalgamation
process. These arrangements were negotiated by the Transfer Manager but were disputed by
SCRC and subsequently referred to the Minister for adjudication (which found in Noosa Council’s
favour).

For the 2014/15 financial year, the Tourism Levy was allocated as follows:

Issue                                                                               Amount

Commitment to pre-existing sponsorship agreement with Ironman Australia for Noosa      $270K
Triathlon

Amount to be paid to SCDL under pre-existing agreement                                 $500K

Amount provided to Tourism Noosa under pre-existing agreement                         $1.746M

TOTAL LEVY AMOUNT                                                                     $2.516M

(Note that the amount actually collected each year varies slightly as short term holiday
accommodation rental properties are either removed or added to the market and the amount
distributed also varies after accounting for Council’s costs in managing and collecting the
Tourism Levy).

The 2015 calendar year is the final year of the pre-existing sponsorship agreement with Ironman
Australia for Noosa Triathlon. This agreement is directly between Council (originally entered into
by SCRC for a 5 year term) and Ironman Australia.

The Council has also given notice to SCDL that the pre-existing agreement with that organisation
will expire on 30 June 2015 and that any future funding for the RTO should occur via Tourism
Noosa based on identified regional projects that can be undertaken jointly and that will benefit the
region including Noosa.

Proposed Terms and Conditions of a Funding Agreement with Tourism Noosa

It is opportune to review the funding arrangements with Tourism Noosa given the upcoming
expiry of the Noosa Triathlon funding agreement and the proposal to have Tourism Noosa deal
directly with SCDL on regional tourism marketing and projects. A longer term agreement will also
provide Tourism Noosa with more certainty with their forward planning as their funding in future
years is defined (they currently only have a year to year arrangement in place).

The Mayor, Cr Wilkie and the CEO met with the Tourism Noosa Chairperson and CEO earlier
this year to discuss a new funding agreement. The two CEOs have been developing a funding
agreement and the principles that would underpin that agreement.

The proposed terms and conditions of a proposed funding agreement are as follows:
 2 year term commencing on 1 July 2015.
 In 2015, Council will complete its obligation to fund the Noosa Triathlon. Following 2015, any
   future funding of the Noosa Triathlon will be undertaken via Tourism Noosa. Tourism Noosa
   already fund all other events that have a tourism impact and bring the Triathlon under a
   similar arrangement would be more consistent.
 Funding previously provided directly from Noosa Council to SCDL will now be provided to
   Tourism Noosa with Tourism Noosa having an obligation to work directly with SCDL to
   develop regional tourism projects that have a benefit to the Noosa and regional tourism
   industry.
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