2015-11-16 GC Agenda - Item 3, Attach 1 - Annual Report 2014-15

The Year in Review
This section of the Annual Report looks at Council’s progress in achieving its Corporate Plan.
Noosa Council adopted its first Corporate Plan on 26 June 2014. That Corporate Plan was
obviously the first Corporate Plan for the Council following de-amalgamation and was designed to
give focus to the first few years of our operations.
With so many competing issues that the new Council faced, it made sense for the Council to set
out its priorities. The Corporate Plan identified 7 key priorities. Those 7 key priorities and the
progress towards achieving them is set out below.
Council’s Operational Plan 2014/15 detailed the major priorities and initiatives that Council
undertook to work towards the implementation of the Corporate Plan. Throughout the year, the
CEO provided the Council with quarterly reports looking at progress of the Operational Plan and
details of Key Performance Indicators.


Corporate Plan Priority 1 - A Financially Sustainable Council
We will make sure that our Council is financially sustainable in both the short and long term. This
will entail a focus on strong Budget control and good long term planning.
Key achievements include:
   Council developed the 2014/15 Budget based on a zero based budget methodology which examined
    every cost on its merits. The use of the zero based budget methodology allowed Council to apply a 0%
    general rate increase in 2014/15.
   The 2014/15 financial statements showed that we exceeded our Budget projections. Revenue was
    above budget and expenditure was below budget, resulting in a positive financial result for Council.
    Details of the financial year result can be found in the audited financial statements which form part of this
    Annual Report.
   Council adopted a Financial Sustainability Policy on 29 June 2015. This sets the scene for Council to
    continue to apply good financial discipline and long-term financial strategies, ensuring that our early
    success in meeting prescribed financial ratios is maintained in the longer term.
   Council adopted a range of financial policies to improve financial management practices including an
    Investment of Council Funds Policy and a Restricted Cash Policy.
   Council received a credit assessment from the Queensland Treasury Corporation (QTC) in April 2015
    which assessed Noosa Council as “sound” with a positive outlook. “Sound” is a 5 on a 7 point scale. At
    the time of assessment of the de-amalgamation proposal in 2012, QTC had assessed a new Noosa
    Council as likely to have a “moderate” outlook (4 on a 7 point scale). Clearly this 2015 QTC assessment
    was a significant achievement. QTC identified a number of key reasons why Noosa Council achieved a
    sound assessment including:
    o forecast of surpluses in all future years
    o Council on track to achieve its 2014/15 Budget
    o low level of borrowings with adequate debt servicing capacity
    o high levels of forecast liquidity
    o high level of Council-controlled revenue and fiscal flexibility
    o capacity to increase net rates and charges
    o Council forecasting adequate investment in its asset base, and
    o zero based budgeting process.
    QTC also noted that Asset Management Plans had not yet been adopted by Noosa Council and that this
    was an issue that needed to be managed.




Noosa Council Annual Report 2014/15                                                                      Page 5