2022-05-20 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                           20 MAY 2022


Council’s budget process runs from December through to June each year and is a significant annual
project for Council, requiring considerable organisational and Councillor input to ensure that budget
decisions align with Corporate Plan objectives, Operational Plan targets and Financial Sustainability
Policy requirements.

Council officers have finishing compiling the Council’s draft budget, and now seek approval for the
release of the budget for public distribution and comment before adoption of the final budget at
Special Meeting on 28 June 2022.

A number of challenges have presented in preparing this year’s budget. Similarly to all households
and businesses across not only the region but nationally, Council is currently facing unprecedented
economic conditions with inflationary pricing pressure on fuel and logistics, construction materials,
contracted services, the cost of wages as well as loan interest rate rises. In particular, CPI at 6.0%
for south-east Queensland is currently at the highest level since 2001. For Council, even just a 1%
increase in inflation equates to $1.5 million in additional Council costs across Council’s combined
operating and capital budget.

Recent flood events are also anticipated to have continued impacts through to the 2022/23 financial
year in terms of asset repairs as well as to provide ongoing support and recovery to community and
businesses.

The ‘build from base’ approach used by Council in developing its budget has enabled detailed review
of efficient inputs to its services to accommodate price increases where possible and to ensure there
is no negative impact on the standard of service delivery provided to the community.

The key financial highlights of the draft budget are:

 •   A continued approach of adopting a modest operating surplus ($240k proposed)
 •   All key statutory financial sustainability targets being met demonstrates Council remains financially
     sustainable in the long term
 •   An operating budget of $118 million to deliver core Council services with a focus in 2022/23 on disaster
     recovery and maintaining service levels to accommodate growth
 •   Key operating projects to be delivered in 2022/23 include the development of a new Corporate Plan to
     guide Council future priorities, development of a Destination Management Plan, continued affordable
     housing advocacy and investigations as well as key sustainable transport, environment and waste
     recovery initiatives
 •   A capital program of $42 million invested in infrastructure to maintain and improve the condition of existing
     infrastructure as well as provide for future growth.
 •   Continued significant external grants for funding capital works of $13 million
 •   Key capital works projects include the completion of Noosa Parade upgrade, new landfill cell on
     Noosaville-Eumundi Road Resource Recovery Centre, Beckman’s Road upgrade as well as new works
     for Federal Middle Creek Road upgrade and Noosa District Sports Complex internal roads and facility
     stage 1.
 •   Rate rises proposed to be kept in line with CPI of 5.1% for the majority of ratepayers who continue to
     remain on the minimum rate. This equates to $80 per annum or $1.53 per week.
 •   An increase to environment and heritage levies to return the pricing, programs and investment in
     environment and heritage back to pre-covid levels

In setting rates and charges, the unprecedented increase in land valuation (UCV) applied by State
Government to properties in the shire will also have significant implications for some property owners
in the shire. Whilst the average land valuation increase was just under 36.5%, the distribution
between localities and property types in the shire has been very diverse. Not only has the increase
been very different between suburbs (and streets within those suburbs) as some properties
experience much higher valuation increases than others, but there is also significant difference


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