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2022-03-30 Special Meeting Agenda
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AGENDA
Special Meeting
Wednesday, 30 March 2022
commencing at 2pm
Council Chambers, 9 Pelican Street, Tewantin
Crs Clare Stewart (Chair), Karen Finzel, Joe Jurisevic, Amelia Lorentson,
Brian Stockwell, Tom Wegener, Frank Wilkie
“Noosa Shire – different by nature”
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Section 2
SPECIAL MEETING AGENDA 30 MARCH 2022
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES 2
REPORTS
1. 2022/23 NOOSA COUNCIL BUDGET COMMENCEMENT – SCENE SETTING REPORT 3
MEETING CLOSURE 9
Page 2 of 9
Section 3
SPECIAL MEETING AGENDA 30 MARCH 2022
REPORTS
1. 2022/23 NOOSA COUNCIL BUDGET COMMENCEMENT – SCENE SETTING REPORT
Author Director Corporate Services (Acting), Trent Grauf
Corporate Services Department
Index ECM/ 7.33 – Budget 2022/2023
Attachments Nil
EXECUTIVE SUMMARY
The development of the annual budget is a key strategic deliverable for Noosa Council. This report,
and supporting presentation delivered on live stream, provides background and a scene setting
overview to commence the budget process. Key scene setting matters include community
engagement approach, current activities and priorities, current financial performance, policy
direction, land valuation outcomes, macroeconomic factors and other recent events that help inform
the budget process.
It is not the intent of this report to commit to any budget priorities or decision-making.
Following the special meeting, a copy of the presentation will be made available on Council’s Budget
internet page: (https://www.noosa.qld.gov.au/about-council/councillors-meetings/council-budgets )
RECOMMENDATION
That Council note the report by the Director Corporate Services to the Special Meeting dated 30
March 2022 and note the presentations provided at the meeting by the Director Corporate Services
(Acting) that set the scene for the commencement of the 2022/23 Council budget process.
REPORT
Background
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.
As part of the annual budget process the Director Corporate Services provides a scene setting
overview for Councillors that provides context for future important budget decision making. The
scene setting presentation is considered at Special Meeting and is live streamed for resident and
ratepayer transparency, as well as forming part of the community engagement process for the annual
budget.
A copy of the presentation will be made available on Council’s Budget internet page:
(https://www.noosa.qld.gov.au/about-council/councillors-meetings/council-budgets )
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Section 4
SPECIAL MEETING AGENDA 30 MARCH 2022
Current Year 2021/22 Budget
Current Budget Performance
The current budget (BR2), presented at the January 2022 General Committee Meeting, forecasts a
marginal deficit for 2021/22 of $0.6 million and an ambitious capital works program of $48.1 million.
Council’s YTD operating position as at the end of February, as presented at this March 2022 General
Committee meeting, identifies that Council’s YTD financial performance is well ahead of budget. This
current budget does not yet incorporate any operating or capital financial impacts from the recent
major weather event.
Table 1: Current 2021/22 Budget Position Year to Date
Item Current Budget YTD Budget YTD Actual
(BR2) ($’000) ($’000)
($’000)
Operating Revenue $109,530 97,458 99,333
Operating Expenditure $110,161 70,127 68,835
Operating Result ($631) 27,331 30,498
Capital Grants and Contributions Revenue $18,963 9,875 10,433
Capital Works Expenditure $48,079 24,772 20,575
Long Term Financial Plan
The following table provides a snapshot of financial elements extracted from Council’s Long Term
Financial Plan which will inform the 2022/23 budget. Key points to note are:
• Steady marginal operating surpluses. Each year, nearly all revenue is being invested back into
the community to maintain service levels, support growth as well as deliver project initiatives.
• Continued high investment in capital works in the short term for committed grant funded works.
• Strong liquidity management achieved through stable cash and diminishing debt balances
which provides fiscal capacity to accommodate any emergent financial commitments.
• Growth in the value of assets provided to service the community.
• Key financial sustainability indicators are being met or exceeded in nearly all years.
Table 2: Snapshot of Key Long Term Financial Plan Indicators
Operational Plan
The annual Operational Plan is adopted each year as part of the annual budget process, and outlines
the key strategies and actions committed for the financial year. The status of the 2021/22 Operational
Plan was presented at the February 2022 General Committee meeting, which identifies 76 key
operational initiatives committed for the 2021/22 financial year. The current status of these initiatives
as at the end of December 2021 are:
Table 3: Operational Plan 2021/22 Delivery Status
Status Number
Not Started 3
Behind Schedule 6
On Track 62
Complete 5
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Section 5
SPECIAL MEETING AGENDA 30 MARCH 2022
Any initiatives not completed by 30 June 2022 will carry over into the 2022/23 financial year as part
of the budget review carryover process (BR1), which will be adopted by Council in August 2022.
Strategic Objectives Supporting the Budget Development
Financial Sustainability Policy
Council’s Financial Sustainability Policy outlines the key principles followed by Council in ensuring
responsible ongoing financial management and are the foundation for all budget decision-making.
These principles are:
1. Council operates in an efficient and effective manner, minimising general rate increases.
2. Full cost pricing compliance for Council business activities.
3. Ongoing operating surpluses to ensure Council’s equity is not degraded and future financial
risk can be adequately mitigated.
4. Appropriate cash funds for ongoing infrastructure and asset replacement and renewal.
5. Future trunk infrastructure financial obligations can be met.
6. Informed decisions are made on discretionary new operating or capital investment proposals
(i.e. business cases including whole of life cost analysis).
7. Infrastructure and assets are maintained to required service levels.
8. Debt levels will be minimised, and returns on cash holdings maximised.
9. Achieving all of the minimum financial sustainability benchmarks set by legislation.
Corporate Planning Framework and Annual Budget
Council’s corporate planning framework connects the various components of Council’s plans and
strategies to ensure that areas of strategic focus and action are identified and prioritised as part of
the annual budget process, as outlined in the figure below. Priorities and actions from the Corporate
Planning framework inform strategic decisions on budget priorities.
Figure 1: Corporate Planning Framework
The Corporate Plan 2017 – 2037 outlines Council’s 20-year vision for the shire and strategic direction
for Council. It identified a range of long-term goals under the five key themes of:
1. The Noosa Environment
2. The Noosa Community
3. The Noosa Economy
4. Long Term Planning for Noosa Shire
5. Excellence as a Council
The development of an updated Corporate Plan is currently a key priority for Council and the Chief
Executive Officer over the coming year.
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Section 6
SPECIAL MEETING AGENDA 30 MARCH 2022
Macroeconomic Considerations
A range of external matters that will influence decision-making on priorities and rate setting for the
2022/23 budget, these include:
• Affordability and local household income levels
• The employment market
• Rent prices and housing stock
• House and land values
• Population trends
• Inflation
• Interest rates
• Economic conditions (GDP)
• Federal and State Government funding arrangements for grants and subsidies
• Ongoing impacts from the COVID-19 pandemic
• Disaster recovery
Budget Community Engagement
The 2021/22 budget was the first year Council engaged in public consultation for its budget and
became only one of a small number of local government authorities in Queensland taking proactive
steps to increase the level of community engagement through its budget process.
The decision to commence public budget consultation process also followed a Queensland Audit
Office (QAO) report to Parliament in 2018 on Managing Local Government Rates and Charges,
which found that none of the local governments it had audited consulted with the public on their
budgets, the level and quality of services provided to the public, or the rates and charges levied.
Council’s decision to undertake public consultation also pre-empted anticipated future legislative
changes to mandate public consultation on budgets.
The following engagement tools were applied in the 2021/22 budget:
• Online interactive ‘balance the budget’ tool
• Face to face sessions with Councillors
• Full draft budget released via Your Say Noosa website for feedback
The outcomes of the inaugural budget consultation were presented at special council meeting on 16
June 2021. 103 submissions were received via the platforms outlined in the chart below:
Figure 2: Number of Submissions Received from the 2021/22 Budget Consultation Process
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Section 7
SPECIAL MEETING AGENDA 30 MARCH 2022
The key feedback themes from the inaugural consultation process are outlined in the table below.
Table 4: Key Budget Consultation Feedback Themes from 2021/22 Budget
Feedback Topic Summary of Outcomes and Snapshot of Related Actions Underway During 2021/22
• Tourism and Economic Levy still abolished for the 2021/22 budget.
Concerns over • Funding for Tourism Noosa and Council’s economic development activities now firmly
Proposed Abolition of committed as base budget funding through the General Rate.
the Tourism and • Development of a Destination Management Plan underway.
Economic Levy • A full review of rates and changes, including the effectiveness of this change, to occur as part
of the 2022/23 budget.
Establishment of the • New Transitory Accommodation General Rating Category still introduced for the 2021/22
Transitory budget.
Accommodation • A full review of rates and changes, including the effectiveness of this change, to occur as part
General Rating of the 2022/23 budget.
Category
• A new waste strategy currently being developed which will identify a range of actions and
Improved Waste
investment required to optimise the effectiveness of waste management operations, increase
Management
diversion and recovery of waste as well as reduce landfill emissions.
Practices
• Major landfill cell upgrade capital works underway at the Eumundi Road landfill site.
• Environment Levy increased, and part returned to pre-COVID levels ($64).
• Levy price to be reviewed again with the 2022/23 budget.
• Additional budget funding for Zero Emissions initiatives (both in original budget initiatives and
budget review 2 during the year).
Additional Investment
• CHAP finalisation and development of a Climate Change Response Plan.
in Environment and
• Development of a Coastal Reserve Management Plan underway.
Sustainability
• Bushfire Resilience Levy introduced.
• New grant funding (SEQCSP) from State Government invested in continued bushland
reserves rehabilitation and management.
• Shoreline Erosion Management Plan (SEMP) works
• Transport Levy returned to pre-COVID levels.
• Levy price to be reviewed again with the 2022/23 budget.
• A number of initiatives included in the capital works program including:
Progression of
o Walking and Cycling strategy works
Sustainable Transport
o Noosa Heads Bus Station Options Analysis
Outcomes
o Noosa Drive Reef Hotel to Noosa Parade transport corridor planning
o Noosa Parade upgrade construction underway
• Commencement of a year-round free weekend bus trial (BR2)
• Heritage Levy part-returned to pre-COVID levels ($8.50)
Additional Investment
• Price to be reviewed again with the 2022/23 budget.
in Heritage Protection
and Preservation • A full program of heritage initiatives being delivered for the 2021/22 year, including the
Activities heritage portal, heritage register review, heritage conservation management plan and
continuation of the Noosa notables program.
• Record $48.1 million capital works program underway for 2021/22, including significant
renewal and upgrade works for existing assets.
Additional Investment
• Continuation of condition assessment program for key road, bridge and stormwater
in Maintaining
infrastructure.
Infrastructure
• Finalisation of updated Asset Management Plans underway, as well as initiatives to improve
whole of life asset management.
In line with the motions adopted at the special meeting on 2021/22 budget consultation outcomes, a
review has been undertaken on the public consultation process, and identified the following three
priority improvement areas to address for the 2022/23 budget and onward:
Page 7 of 9
Section 8
SPECIAL MEETING AGENDA 30 MARCH 2022
Table 5: Improvement Areas for the 2022/23 Budget Public Consultation Approach
Issue Comment
• Feedback rate of 103 responses is low.
• Responses may not represent broad cross section of community priorities.
• Propose that the budget consultation is supplemented by the recent Community Satisfaction
and Liveability Survey outcomes – which combined achieved around 2,500 community
responses.
Level of Engagement • These surveys are proposed to be used at the start of the budget process to identify priorities,
and ensure all initiatives and projects align to identified survey outcomes.
• Council proposes to also continue with current draft budget consultation processes (online
through ‘have your say Noosa’ and the ‘balance the budget tool’ as well as one-on-one
sessions with Councillors. The outcomes and level of engagement will be reviewed at the
end of the 2022/23 budget, compared to the 2021/22 outcomes and where appropriate
changed for the budgets in future years.
• A significant proportion of consultation feedback for the 2021/22 budget related to the
establishment of the Transitory Accommodation General Rating Category and abolition of
the Tourism and Economic Levy.
• Where the budget proposes any significant changes or increases to general rating structure,
Significant Changes to
levies or separate charges, it is proposed that a separate and distinct consultation step occur
Rating and Levies
to ensure the proposed changes are clear to the community and impacted ratepayers are
well informed.
• For the 2022/23 budget, the predominant change expected to impact rates and charges will
be the updated UCV land valuations and impact to the General Rate.
• Historically, the level of detail in the published budget documents are statutory in nature,
being detailed policies, revenue statements, financial statements, and other reports.
Information Provided
• It is recognised these are complex and not simple for all community members to review and
with the Draft Budget
understand how it impacts their rates and the level of service provided them by Council.
Consultation
• To ensure that proposed actions and decisions are clear, a user-friendly budget pack will be
developed that assists readers disseminate all key issues.
Previous Council Consideration
The 2021/22 Noosa Council Draft budget feedback was adopted by Council resolution on 16 June
2021 (Ref. Special Meeting Minutes, 16 June 2021, Item 1, Page 5)
The 2021/22 original budget was adopted by Council resolution on 30 June 2021 (Ref. Special
Meeting Minutes, 30 June 2021, Item 3, Page 3.
The 2021/22 budget review 2 (BR2) was adopted by Council resolution on 21 January 2022 (Ref.
Ordinary Meeting Minutes, 22 January 2022, Item 5, Page 5).
The 2021/22 Operational Plan 2nd Quarter Update was adopted by Council resolution on 17 February
2022 (Ref. Ordinary Meeting Minutes, 17 February 2022, Item 9, Page 12)
Finance
Nil.
Risks & Opportunities
Risks
Financial – A budget that is not both sustainable, affordable, achievable and effective will erode the
value and level of service of Council, and its activities, to current and future generations of residents
and ratepayers.
Reputational – Council has progressed down the path of consultation on future Council budgets.
Community trust could be eroded should Council decide to cease or reduce budget consultation at
any point in the future.
Priorities – Engagement processes with the community may risk sub optimal outcomes and priority
misalignment if consultation does not achieve a sufficient level of engagement to understand the
broad cross-section of community needs.
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Section 9
SPECIAL MEETING AGENDA 30 MARCH 2022
Opportunities
A budget consultation process is an opportunity to understand the spending priorities of our
community and ensures that effective engagement continues to retain community confidence in
Council processes and transparent decision-making. Reviewing the process each year also ensures
that Council can continue to incrementally improve on its budget processes.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Chief Executive Officer.
Departments/Sections Consulted:
X Chief Executive Officer Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services Environment & Sustainable Development Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
3. MEETING CLOSURE
Page 9 of 9