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

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: