NOOSA COUNCIL DRAFT 2023/2024 BUDGET FOR CONSULTATION · Special Meeting - Draft 23/24 Budget for Consultat

SPECIAL MEETING                                                                         22 MAY 2023


REPORT
Draft Budget Highlights

Under sections 104 and 107A of the Local Government Act 2009 and section 170 of the Local
Government Regulation 2012, Council is required to adopt, for each financial year, after 31 May
before the financial year and before 1 August in the financial year, a budget and revenue
statement. 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 30 June 2023. 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 pressures on fuel and
logistics, construction materials, contracted services, the cost of wages as well as loan interest rate
rises.

In particular, with CPI reaching its highest levels for south-east Queensland since the 1990’s (March
Quarter CPI, Brisbane: 7.4%) this has had a direct impact on employee costs with Council’s certified
agreement linked to CPI. For context, even just a 1% increase in inflation can equate to $1.5 million
in additional costs across Council’s combined operating and capital budgets.

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
      •   All key statutory financial sustainability targets being met demonstrates Council
          remains financially sustainable in the long term
      •   Key operating projects to be delivered in 2023/24 include the development of a
          Reconciliation Action Plan, continued affordable housing advocacy, implementation
          of shire wide encroachment policy, as well as key sustainable transport, environment
          as well as waste recovery, diversion and minimisation initiatives
      •   A capital program of $39 million invested to maintain and improve the condition of
          existing infrastructure as well as provide for future growth.
      •   A disaster recovery infrastructure program estimated at over $80 million to reinstate
          infrastructure impacted by the February 2022 flood event, with funding provided by
          the Queensland Reconstruction Authority.
      •   Continued significant external grants for funding capital works
      •   Key capital works projects include the Lawnville Road Bridge renewal, Garth Prowd
          Bridge renewal, Noosaville-Eumundi Road Resource Recovery Centre expansion, as
          well as stabilisation works at Ross Crescent and increased investment in the shire’s
          road network.
      •   Proposed rate rises to be kept below CPI at 5.5% for the majority of ratepayers who
          continue to remain on the minimum rate. This equates to $89.51 per annum or $1.72
          per week.
      •   Maintaining environment, sustainable transport and heritage levies to continue the
          delivery of key programs and strategies.