NOOSA JUNCTION LEVY AND REVENUE STATEMENT AMENDMENT - 2023-24 BUDGET · Report

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GENERAL COMMITTEE MEETING                                                          11 DECEMBER 2023


The Revenue Statement includes a Special Rate for the Noosa Junction Levy, which is levied to
provide funding for the Noosa Junction Association (Association), so that the Association can
implement projects and initiatives for the benefit furthering the Noosa Junction Commercial and
Economic Strategy. The details of the levy's purpose, activities, amount, monies raised and the
properties to which the Special Rate apply are articulated in full detail with the Noosa Junction Levy
Overall Plan, which is contained in Appendix 3 of the Revenue Statement.


The 2023-24 financial year charge for the Noosa Junction Levy, as adopted at Special Meeting on
30 June 2023, is a charge of 0.2582 cents in the dollar of rateable land valuation (UCV) to all
properties identified in the Overall Plan's Levy Benefited Area. This charge was set to generate
revenue of $191k, on the basis of a budget CPI (7.7%) increase from its 2022/23 funding level of
$181k.


The UCV to which this Special Rate relies on is set by Queensland Government Department of
Resources. Land valuations were reassessed by State Government for the Noosa shire. This was
the second year in a row that properties in the shire were valued in unprecedented market
conditions. Average UCV land valuations in the levy benefit area increased by 75% with these recent
valuations (compared to shire average of 63%) and were dispersed between some with no increased
valuations and others as high 142% (compared to shire average of 0% to 300%). The result of the
valuation movements were, that whilst the total revenue funding target was in line with CPI and in
line with that for most Noosa Junction Levy properties, there were still diverse impacts ranging from
reductions to a 58% increase.


Following the issue of the July 2023 rates notices, the Noosa Junction Association has advised that
no increase in funding should have in fact been needed for the 2023/24 financial year, and that all
required projects and initiatives can be delivered with the same funding as 2022/23 of $181k. As
such, it is now possible to reduce the Special Rate for the second rates issue for the financial year
in January 2024 to minimise unnecessary additional revenue raised.


Consequently, it is proposed to reduce the Noosa Junction Levy by 10% (to 0.2329 cents in the
dollar). This reduction will offset the additional funds raised in the July levy, to ensure that funding to
the Noosa Junction Association remains the same year-on-year.


This reduction will also provide some financial relief to affected ratepayers.


The following table summarises the financial implications:


                              2022/23 ($000) 2023/24 ($000) 2023/24 ($000)
                              Annual             July Rates        January Rates
Association Requirement       $174               $91               $83
Council Overhead              $7                 $4                $3
Total for Collection          $181               $95               $86
Rate in the Dollar Applied $0.396                $0.2582           $0.2329


The Revenue Statement has been revised in Section 4.3.1 to now articulate two levy amounts
applied per the snip below:

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GENERAL COMMITTEE MEETING                                                       11 DECEMBER 2023



The rate for the six-month period to 31 December 2023 is 0.2583 and the rate for the six-month
period to 30 June 2024 is 0.2329 cents in the dollar of rateable valuation for all rateable properties
within the benefited area

Appendix 3: Noosa Junction Levy has also been revised to reflect the revised amount of funding
raised.




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.

Objective 5.2 - Continue to deliver a financially sustainable Council that has the resources now and
into the future to achieve its strategic objectives. This will be supported through the introduction of
enhanced sustainability reporting and performance indicators, as well as ESG (environment social
and governance) accounting practices as guided by statutory requirements.



Previous Council Consideration
The 2023/24 original budget, revenue statement and Noosa Junction Levy amounts were adopted
by Council resolution on 30 June 2023 (Ref. Special Meeting Minutes, 30 June 2023, Item 5, Motion
4).




Finance
The Revenue Policy and Statement is the head of power that allows Council to levy rates and
charges on an annual basis.




Risk & Opportunities
Adoption of the annual budget is required under the Local Government Act 2009 to provide Council
the power to levy rates and charges, charge fees and expend funds on delivering services to the
community.


Consultation
External Consultation - Community & Stakeholder
Noosa Junction Association
Noosa Junction Levy Benefit Area Ratepayers


Internal Consultation

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GENERAL COMMITTEE MEETING                                                        11 DECEMBER 2023


Departments consulted:

     Office of the CEO, Mayor &         Community Services               Corporate Services
             Councillors
        Mayor & Councillors             Director                    X    Director
 X      Chief Executive Officer         Community Development       X    Financial Services
        Executive Officers              Sport & Active Lifestyles        Fleet
        Community Engagement            Arts & Culture              X    Revenue Services
        People & Culture                Community Connection             ICT
        Governance                      Customer Experience              Procurement

                                                                         Commercial Property

      Strategy & Environment          Development & Regulation          Infrastructure Services
        Director                        Director                         Director
        Strategic Land Use Planning     Development Assessment           Infrastructure      Planning,
                                                                         Design and Delivery
        Economic Development &          Local Laws                       Civil and Asset operations
        Destination Management
        Environmental Services          Environmental Health             Waste
        Innovation & Digital Hub        Building & Plumbing              Building & Facilities
                                        Property / Permits               Disaster Management