Meeting papers

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SPECIAL MEETING                                                 22 MAY 2023




1.   ATTENDANCE & APOLOGIES

2.   CONSIDERATION OF REPORTS

     2.1.   NOOSA COUNCIL DRAFT 2023/2024 BUDGET FOR CONSULTATION

3.   CLOSED SESSION

4.   MEETING CLOSURE




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SPECIAL MEETING                                                                        22 MAY 2023


2.1     NOOSA COUNCIL DRAFT 2023/2024 BUDGET FOR CONSULTATION


Author              Acting Director Corporate Services, Trent Grauf
                    Corporate Services Department
Index               ECM/ 7.36 – Budget 2023/2024
Attachments         None


EXECUTIVE SUMMARY
The draft 2023/24 budget has been prepared for Noosa Council with a back to basics focus and with
reference to the recently adopted Corporate Plan. Council proposes to continue delivering another
financially sustainable budget that facilitates the delivery of valuable services and critical
infrastructure to meet the needs of the community.

The draft budget has been workshopped extensively with Councillors with the primary consideration
being to minimise, as much as possible, the impact to ratepayers, while also taking into account the
inflationary pressures on the costs to Council of continuing to deliver the same levels of service the
community has come to expect.

To inform early engagement on community priorities through the start of the budget development
process, Council has referenced its Corporate Plan 2023-2028 as well as the 2022 liveability survey
and bi-annual community satisfaction survey conducted in the previous year as well as feedback
received through the 2022/23 budget consultation process. Both the Corporate Plan and liveability
survey engagement processes have already provided considerable insight into the community’s
priorities with more than 1,000 responses received in both instances. This is around ten times the
responses received during the previous budget consultation processes.

Council is seeking further community feedback on the proposed draft budget now that its proposed
outcomes are available for the community to disseminate and review. Responses will inform and
shape the final decisions for the adoption of the 2023/24 budget on 30 June 2023.

The consultation process will be open for feedback for two weeks from Monday 22nd May 2023
through to Sunday 4th June 2022 for residents, business, community groups and business
associations to outline their priorities, ideas, suggestions or areas of concern; and to ensure that
proposed projects and services align to the priorities fed back to Council through earlier surveys.

RECOMMENDATION
That Council note the report by the Director Corporate Services (Acting) to the Special Meeting dated
22 May 2023; and

      A. Approve the proposed draft 2023/24 Budget and supporting documentation be made
         available to the public for community consultation prior to its finalisation and adoption.
      B. Council officers commence a two-week consultation process to seek feedback from the
         community on the draft budget 2023/24.
      C. The outcomes from the consultation to be considered in the development of the final budget
         to be adopted at Special Meeting on 30 June 2023.




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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.




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SPECIAL MEETING                                                                         22 MAY 2023


In setting rates and charges, the Valuer General’s office has again undertaken a further land
valuation (UCV) for the second consecutive year to capture property price increases resulting from
the unprecedented growth in demand for land in the shire.

Whilst the average land valuation increase was just over 62.0%, the distribution between localities
and property types in the shire has again 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 has also significant differences between land uses.
Broadly valuation increases are ranging from no increase in land value all the way up to over 300%
increases for some properties.

The challenge for Council is then setting the general rate, which is calculated by multiplying the
unimproved land valuation by a rate in the dollar for each different category of land. Every effort has
been made to moderate the impact of the valuation increases, and has managed to keep most
properties within or below CPI. However, it is not possible for Council to mitigate the full impact of
the State Government imposed valuation increases for those minimal number of outlier properties
with very significant valuation increases without creating significant adverse impacts to the majority
of ratepayers in the shire who are on the minimum rate.

A full suite of budget documents will be made available on Council’s Have Your Say Noosa website.

Consultation Approach

The 2023/24 budget is the third year that Council has engaged in public consultation for its budget
and is currently only one of a small number of local government authorities in Queensland taking
proactive steps to improve 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.

A staged approach to the development and consultation of the 2023/24 budget has been adopted to
ensure community feedback was appropriately incorporated into both the start of the budget (to set
priorities) and at the completion of the draft budget (to enable feedback on the proposed decisions):




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SPECIAL MEETING                                                                         22 MAY 2023


Corporate Plan 2023- 2028

Considerable consultation with the community was undertaken (October 2022 & February 2023) to
help inform the development of Council’s recently adopted Corporate Plan 2023 – 2028 with over
1,000 submissions received. This document provides a roadmap for our share goals and visions for
the shire and identifies key strategic outcomes to be delivered over the next 5 years.

The corporate plan and details on the engagement process are located on Council’s website:
https://yoursay.noosa.qld.gov.au/corporate-plan-2023-2028

Liveability Survey

Council has also relied on the liveability survey which was conducted in Nov 2021 given both the
successful reach of responses, with feedback being received from over 1,600 residents, through to
its alignment to shaping strategies and priorities for the shire.

The liveability survey is located on Council’s website: https://www.noosa.qld.gov.au/liveability-
noosa

Community Satisfaction Survey

The community satisfaction survey is independently undertaken on a bi-annual basis, with feedback
being received from over 400 residents. To inform the budget, it provides guidance to Council on
where the community believes quality of services have declined and where additional investment
may be needed.

The community satisfaction survey is located on Council’s website:
https://www.noosa.qld.gov.au/about-council/news-publications/residents-survey

Where to Provide Feedback to Council on the Draft Budget

Feedback can be provided on the draft budget via the following:

Method      Option              Detail
Online      Your Say Noosa      The Your Say Noosa website will provide for feedback through
            Website             key survey questions on budget priorities/concerns
                                Site: https://yoursay.noosa.qld.gov.au/
            Email Council       Feedback can be provided on specific ideas or concerns via
            direct              email at [email protected]
In Person Facilitated           One facilitated public information session will be held with
          Information           Councillors as follows:
          Sessions              Noosa Council Chambers, 9 Pelican Street, Tewantin
                                Monday 29th May 2023, 10:00am 12:00pm




Link to Corporate Plan




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SPECIAL MEETING                                                                        22 MAY 2023


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
Special Meeting Minutes, 20 May 2022, Item 1, Page 3
That Council note the report by the Director Corporate Services (Acting) to the Special Meeting dated
20 May 2022; and:
       A. Approve the proposed draft 2022/23 Budget and supporting documentation be made
          available to the public for community consultation.
       B. Council officers commence a two-week consultation process to seek feedback from the
          community on the draft budget 2022/23.
       C. The outcomes from the consultation to be considered in the development of the final budget
          to be adopted at Special Meeting on 28 June 2022.

Special Meeting Minutes, 28 June 2022, Item 5, Page 4
That pursuant to section 104 of the Local Government Act 2009 and section 170 of the Local
Government Regulation 2012, the budget for the financial year ending 30 June 2023, incorporating
statements of income and expenditure, financial position, cash flow, changes in equity, long-term
financial forecast, revenue statement and revenue policy, and 2022/23 capital program as contained
in the Noosa Council 2022/23 Budget document (provided as Attachment 1 to the Special Meeting
report dated 28 June 2022), be adopted.

Ordinary Meeting Minutes, 20 April 2023, Item 6.2
That Council note the report by the Manager Financial Services (Acting) to the General Committee
Meeting dated 17 April 2023 and approve the proposed changes
to the budget for the 2022/23 financial year as outlined in the revised Budget Financial Statements
attached to the report.


Finance

Nil.


Risk & Opportunities
Risks

Financial – A budget that is not both sustainable, affordable, achievable and effective will erode the




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SPECIAL MEETING                                                                              22 MAY 2023


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.

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.
Consultation
External Consultation - Community & Stakeholder

Nil.

Internal Consultation
Departments/Sections Consulted:

 X     Mayor                         Community Services                         Corporate Services

 X     Councillors               X   Director                                X Director
                                     Community Development                      Financial Services

 X     Chief Executive Officer       Community Facilities                       Fleet

       Executive Support             Libraries & Galleries                      ICT

                                     Local Laws                                 Procurement

                                     Waste & Environmental Health               Property

                                                                                Revenue Services



       Executive Services            Environment & Sustainable Development      Infrastructure Services

X      Director                  X Director                                  X 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




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