2014-12-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                              15 DECEMBER 2014


Over the last few months, staff have been liaising with the Noosa Waters Residents Association
on long-term financial and asset management models that will reflect the realistic future
requirements for maintenance and operation of the Noosa Waters lock and weir. It is clear from
those models that the current reserve balance will not be required to be expended. Further, it is
clear that based on the 2014/15 Noosa Waters lock and weir levy, there will be sufficient funds
from the current and future levies to meet all maintenance, replacement and other operational
requirements of the lock and weir without requiring the need to draw upon the existing reserve
balance.

At the same time, as part of the process of adopting Council’s first full budget, a request was
made to King and Co to undertake a legal review of all of Council’s rating resolutions that were to
apply from 1 July 2014. This has provided confidence that all of the current rating resolutions will
withstand any legal scrutiny. This is important given there has been some recent history of
special levies being challenged by ratepayers in other parts of the State. King and Co provided
written confirmation when Council adopted the 2014/15 budget (and rating resolutions) that our
various levies are lawful and will allow Council to appropriately manage all of the long term levies
in place that will potentially accumulate surpluses.

Basis of the Previous Levy

At the time that staff were working with King and Co on a review of the 2014/15 rating
resolutions, a consideration of how some of the previous levies were framed was undertaken. It
is clear that the Noosa Waters lock and weir levy has been lawfully imposed since its inception in
2000/2001 but that it presents some challenges in how annual surpluses have been carried
forward since that time.

To explain the challenge of dealing with surplus funds, it is necessary to consider how Council
implemented the Noosa Waters lock and weir levy since 1 July 2001. Firstly, it should be noted
that although there have been some minor changes to wording, essentially the same format has
been applied since 2000/01. This same format has been used by both the former Noosa Council
and the Sunshine Coast Regional Council.

Each year, Council adopted an overall plan for the year which set out the purpose of the levy,
how much was to be raised, the area that was covered by the levy, the basis of the charge and
what the funds could be expended on. This met all of the requirements of the Local Government
Act. As Council would be aware, Council can only expend levy funds for the specific purpose of
the levy. The 2005/06 rating resolution was typical of Council’s approach to the Noosa Waters
lock and weir levy:

    “OVERALL PLAN FOR THE LONG TERM MAINTENANCE OF THE LOCK AND WEIR
    SYSTEM SERVICING THE NOOSA WATERS ESTATE
    From July 2000, maintenance and operation of the Noosa Waters canal system became
    the responsibility of Council. With the assistance of consulting engineers, Council has
    undertaken long term projections in relation to operating and maintaining the lock and
    weir system at an appropriate level of service and has developed a financial plan to fund
    this program.
    Council has formed the opinion that waterfront allotments in the Noosa Waters estate, as
    delineated in attached shire plan GIS00071201 will gain special benefit from this
    program and has resolved to levy a Special rate to recover the cost.
    A Special rate of point zero two three three (0.0233) cents per dollar unimproved
    valuation will be levied on each property within the benefited area, including strata titled
    units, with a minimum levy amount of $120.00 per annum. The levy will raise
    approximately $109,602 in the 2005-06 financial year which will be expended solely on
    the operations and maintenance of the lock and weir system.”


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