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2022-03-14 General Committee Meeting Agenda
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AGENDA
General Committee
Meeting
Monday, 14 March 2022
commencing at 10am
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Frank Wilkie (Chair), Karen Finzel, Joe Jurisevic, Amelia
Lorentson, Clare Stewart, Brian Stockwell, Tom Wegener
“Noosa Shire – different by nature”
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Section 2
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
TABLE OF CONTENTS
ITEM PAGE
1. ATTENDANCE & APOLOGIES 3
2. CONFIRMATION OF MINUTES 3
3. PRESENTATIONS 3
4. DEPUTATIONS 3
5. ITEMS REFERRED FROM COMMITTEES 4
1 MCU19/0089.02 & OPW19/0160.02 – MINOR CHANGE TO DEVELOPMENT
APPROVAL FOR RETAIL BUSINESS TYPE 5 VEHICLE USES, RETAIL BUSINESS
TYPE 2 SHOP AND OPERATIONAL WORKS – SIGNAGE AT 52 – 54 MARY
STREET NOOSAVILLE 4
2 NOOSA RIVER STAKEHOLDER ADVISORY COMMITTEE UPDATE 4
6. REPORTS DIRECT TO GENERAL COMMITTEE 5
3 NOOSA NORTH SHORE FERRY REVIEW AND PROPOSED TENDER 5
4 FINANCIAL PERFORMANCE REPORT – FEBRUARY 2022 17
7. CLOSED SESSION 29
Page 2 of 29
Section 3
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
1. ATTENDANCE & APOLOGIES
2. CONFIRMATION OF MINUTES
The Minutes of the General Committee Meeting held on 14 February 2022 be received and
confirmed.
3. PRESENTATIONS
Nil.
4. DEPUTATIONS
Nil.
Page 3 of 29
Section 4
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
5. ITEMS REFERRED FROM COMMITTEES
PLANNING & ENVIRONMENT COMMITTEE
1 MCU19/0089.02 & OPW19/0160.02 – MINOR CHANGE TO DEVELOPMENT
APPROVAL FOR RETAIL BUSINESS TYPE 5 VEHICLE USES, RETAIL BUSINESS
TYPE 2 SHOP AND OPERATIONAL WORKS – SIGNAGE AT 52 – 54 MARY
STREET NOOSAVILLE
(Planning & Environment Committee Agenda, 8 March 2022, Item 2, Page 25)
Reason for referral – for further consideration.
2 NOOSA RIVER STAKEHOLDER ADVISORY COMMITTEE UPDATE
(Planning & Environment Committee Agenda, 8 March 2022, Item 4, Page 39)
Reason for referral – for further consideration.
SERVICES & ORGANISATION COMMITTEE
Nil
Page 4 of 29
Section 5
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
6. REPORTS DIRECT TO GENERAL COMMITTEE
3 NOOSA NORTH SHORE FERRY REVIEW AND PROPOSED TENDER
Author Property Advisor, Denis Wallace
Corporate Services Department
Index ECM/LEAS13/0040/59.05 Noosa River Ferry Services
Attachments 1. AEC Review - Extracts of Benchmarked Cable Ferry Services
2. AEC Review - Extract of Operating Models Available to Council
3. AEC Review - Extracts of Recommended Operating Model
Opportunities & Risks
EXECUTIVE SUMMARY
This report provides feedback on the outcomes and recommendations of an independent review
of the Noosa North Shore Ferry service operating model. Council commissioned the review by
AEC Group economic consultants to inform its upcoming procurement process for the next service
commencing in 2024 following the expiry of the existing lease. The review benchmarked Noosa’s
existing service against other cable ferry operations in Eastern Australia, indicating it is one of the
most highly patronised and financially sustainable services in the country.
AEC assessed the range of operating models available to Council and recommends two primary
models, which involve the outsourced operation of the service and either Council owned or
contractor owned vessels. Market sounding indicates an active market appears to exist for both
these operating models.
Staff recommend the fully outsourced model is pursued through a new tender, as it retains the
demonstrated financial sustainability strengths of Noosa’s historic model, which have avoided
ratepayer subsidisation. This tender approach will allow competitive market responses from a
range of experience operators having different procurement opportunities for vessels.
A recommended tender process is outlined, which aims to award a contract in late-2022 for the
next service term commencing on July 1, 2024.
RECOMMENDATION
That Council note the report by the Property Advisor to the General Committee Meeting dated 14
March 2022 and agree to proceed to the tender process for a new ferry service to commence in
July 2024, based on the fully outsourced operating model identified as Option 2 and the
recommended tender approach outlined in the report.
REPORT
The purpose of this report is to provide feedback on the outcome of an independent review of the
Noosa North Shore Ferry service model and outline a recommended tender approach to procure
the next ferry service commencing in July 2024.
1. Background
Council operates the Noosa North Shore Ferry service via a commercial lease agreement currently
held by Noosa North Shore Ferries Pty Ltd (NNSF). The service provides the primary vehicle
access to residents, workers and visitors to the Noosa North Shore.
In April 2019, Council considered a report providing a review of the ferry service and recommending
award of a lease extension available under the agreement with NNSF. Council decided to award
Page 5 of 29
Section 6
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
a 3-year extension only at that time, rather the 5-year extension recommended by staff, and
resolved that “the remaining balance 2 year extension period to be further considered prior to the
lease expiry to allow Council to investigate opportunities for digital technology introduction”.
In August 2021 Council considered a report providing an update on the status of digital technology
investigations into opportunities, progress of an independent review of the service and seeking
agreement to award the balance 2-year lease extension to NNSF. Council agreed to award the
extension and NNSF’s lease agreement is now scheduled to expire on 30 June 2024.
2. Independent Ferry Review
Economic consultants, AEC Group, were commissioned in mid-2021 to undertake a broad review
of the Noosa North Shore ferry service to inform the upcoming service renewal process. AEC’s
review was completed in February 2022. Key extracts from the review are contained in this report,
and supporting attachments. However, the review in its entirety has not been attached to this report
due to the commercial-in-confidence nature of market responses and financial assessment which
may impact the upcoming service tender process.
AEC’s review addresses:
The current ferry service model and operating environment
Benchmarking of 17 existing cable ferry services in Eastern Australia
Engagement with local stakeholders
Market sounding of potential service providers
Financial and non-financial evaluation of potential operating models
Service level considerations for the future service
Procurement process considerations and recommendations
Notable findings in the report include:
The existing Noosa River service is one of the busiest cable ferry services in Australia (if not
the busiest), servicing approximately 300,000 – 400,000 crossings annually. See annual
crossing history in Figure 1 below.
500,000
450,000
400,000
350,000
300,000
Vehicle Crossings
250,000
200,000
150,000
100,000
50,000
-
2012/13
2015/16
2018/19
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2013/14
2014/15
2016/17
2017/18
2019/20
2020/21
Fig. 1 - Annual Vehicle Crossings (excluding freight vehicles)
Page 6 of 29
Section 7
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Noosa’s service appears to be the only double cable ferry service in Australia, with this
providing carrying capacity, traffic movement and maintenance scheduling advantages.
Contractual models, crossing fees and carrying capacity vary widely across the
benchmarked services. Most services are State-run, with only a few run by local
governments. The majority of services are either heavily or fully taxpayer/ratepayer
subsidised. Only the Noosa, Daintree and Jardine River services appear to run on cost-
recovery basis. Extracts of the benchmarked services’ details are included in Attachment 1.
A number of local governments are actively looking to transfer their ferry operations to State
Government responsibility.
The benchmarked operating models are predominantly via contractual agreement, with the
responsible authority owning the vessel and the contractor operating the service. Only the
Noosa North Shore and Moggill ferry services involve the contractor owning the vessel/s,
though the Daintree River service also previously operated in this way.
Only one benchmarked service provided a priority resident lane, being the Daintree River
northern approach operated for 3 months of the year. Most services operate with remotely
operated boom gates, there is limited video monitoring for queuing, payment methods are a
mix of cash only and EFTPOS, and the majority use payments on-board the vessel.
Benchmarked services include a range of resident concessions, with Noosa’s level of
concession one of the highest.
Stakeholder feedback themes included hours of operation, fees, payment options, crossing
infrastructure and Cooloola Recreation Area visitation pressures. These inform AEC’s
service level and procurement recommendations. Some stakeholders requested their
feedback remain confidential.
QPWS indicates it is seeking to address sustainable visitation for the Cooloola Recreation
Area and observed that “peak period loads are where impacts are most evident and potential
management measures may include influencing a ‘spread’ of total annual visitation to
transfer a percentage of peak usage to under-utilised times and/or sites”.
Market sounding indicates an active market appears to exist for both the own-and-operate
and operate-only contracting models.
Importantly, AEC’s financial modelling points to sufficient revenue and return for the service to
continue to contribute to Council’s general revenue and avoid ratepayer subsidisation under the
recommended operating models, which are discussed further below.
AEC identifies 10 different operating options, being combinations of council-owned and contractor-
owned vessel models under different fee and revenue share arrangements - see extract in
Attachment 2. AEC recommends Council considers two primary models outlined below. An
extract of AEC’s assessment of the associated risks for both options is included as Attachment 3.
Option 1. Council owned and contracted operations under a fixed fee for service plus revenue
share - on the basis that Council has access to cheaper capital to fund the vessel purchases, the
fixed fee component reduces the revenue fluctuation risk for the contractor, and the revenue share
component provides a financial incentive for the contractor to ensure that vehicles are transported
in an expedited and efficient manner.
This option sees Council procure its own vessels and outsource the operation of the service.
Identified strengths are Council’s lower cost of finance and ability to enter into a shorter-term
contract for the operation. Weaknesses of this option are Council’s lack of expertise and capacity
to procure and maintain vessels and the asset management and maintenance imposts that would
transfer to Council for marine infrastructure, which is not an existing area of its core business.
There is also greater potential for less contractor oversight and maintenance of Council-owned
vessels.
Option 2. Contractor owned and operated under a fixed fee for service plus revenue share - on the
basis that Council does not have the capability to design and procure suitable vessels for the
Page 7 of 29
Section 8
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
contractor, the fixed fee component reduces the revenue fluctuation risk for the contractor, and the
revenue share component provides a financial incentive for the contractor to ensure that vehicles
are transported in an expedited and efficient manner.
This option sees the contractor provide its own vessels for it to operate the service, consistent with
Council’s approach for the full history of its involvement in the service. Identified strengths are the
ability to seek timely, competitive market responses for the supply and maintenance of the vessels,
greater contractor oversight of its own ferries and leveraging of available expertise of existing
operators. Weaknesses of this option are the need for longer contract terms, which limit future
contracting alternatives.
Proceeding to a tender for the fully outsourced operating model in Option 2 is recommended by
staff, as it retains the demonstrated strengths of Noosa’s outsourced model, which have avoided
ratepayer subsidisation, and would allow competitive market responses from a range of
experienced operators having different procurement opportunities for new or existing vessels.
A key element to the new service arrangement is adaptability; in particular to accommodate long-
term changes to technology, demand, legislation or environmental conditions. Provisions for future
adaptability are proposed via a draft Service Agreement contract prepared by King and Company
solicitors, which will form part of the tender package.
3. Recommended Tender Approach
Staff recommend Council proceeds to tender for the fully outsourced service model identified as
Option 2 above. Indicative tender details are proposed as follows:
Service Supply and Operation of Vehicle Ferries
Contract Type Service Agreement
Term 10 - 20 years
Option 5 years
Commencement Date 1 July 2024
Payment Structure Fixed fee + revenue share
Minimum Vessel Sizes 2 x 10 vehicle ferries
Operating Hours Per existing times but subject to variation by agreement
should need arise
Responsibility for Setting Crossing Fees Council
and Concessions
Mandatory Service Components Electronic payments, Service Plan, Insurances
Tender Response Period 3 - 4 months
The Service Plan listed above will be a key tender component requiring submitters to extensively
detail their proposed service provision systems, methods and processes, together with proposed
improvements over the current service. The Service Plan will provide opportunities to identify
market driven innovation and consider new queue management approaches, technology or
infrastructure needs.
Proposed tender assessment weighting criteria are as follows:
Criteria Weighting
Price 40%
Service Plan 30%
Track Record and Capacity 12.5%
WH&S and Quality Systems 5%
Contribution to Local Economy 5%
Environment and Sustainability 7.5%
Timing for the tender is expected to involve:
Tender release May 2022
Tender close August 2022
Report to Council on the tender outcome October 2022
Potential tender award November/December 2022
Page 8 of 29
Section 9
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Given the importance of the contract, staff intend to engage an independent probity advisor to
support and monitor the tender process.
Previous Council Consideration
Ordinary Meeting, 19 August April 2021, Item 6, Page 17
That Council note the report by the Manager Property to the Services & Organisation Committee
Meeting dated 10 August 2021 regarding the Noosa North Shore Ferry lease and:
A. Agree to award the remaining 2-year lease extension to Noosa North Shore Ferries Pty Ltd;
and
B. Agree to consider a further report at Council’s February 2022 round of Council meetings
regarding proposed ferry service operating models, contractual arrangements and tender
process for the purpose of proceeding to procure a new ferry service operation commencing
1 July 2024.
Ordinary Meeting, 18 April 2019, Item 4, Page 11
That Council note the report by the Property Advisor to the Services & Organisation Committee
Meeting dated 9 April 2019 and:
A. Note the operator’s request for a 5-year extension to the existing ferry lease;
B. Subject to obtaining the operator’s agreement, agree to only extend the lease for 3 years
from 1 July 2019 to 30 June 2022 at this time, with the remaining balance 2 year extension
period to be further considered prior to the lease expiry to allow Council to investigate
opportunities for digital technology introduction; and
C. Request staff further investigate opportunities for a simplified concession system, as outlined
in the report.
Finance
The existing ferry lease agreement with NNSF operates on a revenue share basis and is current
until 30 June 2024. The current service agreement provides a return which contributes to Council’s
general revenue. The service arrangement and fee structures applied by Council has ensured the
ferry service has historically never needed ratepayer subsidisation, with the return achieved
offsetting general rate revenue requirements to support Council in meeting its financial
sustainability targets.
AEC’s financial analysis across a range of modelled scenarios suggests an ongoing ability to
maintain the revenue-positive outcome for the service. Though, given the desired service
improvements sought, such as electronic payment options and queue management, there is
potential for increased contractor costs that would erode current revenue levels. Revenue and
crossing fee implications will be considered as part of the tender assessment process and will be
reported to Council.
Risks & Opportunities
The report seeks a timely Council determination in the lead up to the expiry to the current ferry
lease agreement. The timeline detailed in Section 3 above seeks to allow sufficient time for a
successful tenderer to procure new vessels if required (18 months). There would be risks in the
event of a lapsed agreement or the need to proceed to an alternate procurement process.
The recommended tender process seeks to leverage the expertise of an identified field of potential
tenderers to obtain competitive market responses from experienced operators.
Council is a member of the Teewah Cooloola Working Group, which has sought to address the
issue of sustainable use levels for the area. Potential for future permit limits on Noosa North Shore
visitors are noted in the QPWS feedback above. Under the current lease agreement, such revenue
impacts are predominantly borne by Council. Similarly, the proposed fixed fee component to be
tendered for the new service would be intended to provide financial surety to the contractor.
Page 9 of 29
Section 10
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Consultation
External Consultation - Community & Stakeholder
AEC Group
King and Company Solicitors
Teewah Landowners Association*
North Shore Residents Association*
Queensland Parks & Wildlife Service*
Beach Road Holiday Homes*
Noosa North Shore Resort*
Noosa North Shore Ferries*
*Via consultant stakeholder engagement
Internal Consultation
Departments/Sections Consulted:
Chief Executive Officer X Community Services X Corporate Services
Executive Support Director x Director
Community Development x Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws x Procurement
x Waste & Environmental Health x Property
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
Page 10 of 29
Section 11
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 11 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 1. AEC Ferry Review - Extracts of Benchmarked Cable Ferry Services
Table 3.1. Cabled Service Benchmarking Sample
Tlie madi) State Ferry Service State SSPE Ted
DantesRiver | OLD [Hibbard | NSW [Spoons | NSW
lane Rver | OLD | Lawence | NSW [Unmare | NSW
Noggil___| QLD | Lower Poriand | NSW | Webbs Greek | NSW
perowra Waters | NSW [worteke | nw [wisemars | NSW
sonbeh Pont | ASW |Sackilo | NSW [Wyman | NSW
Bune Pont | NSW | Setomré Point | NSW
Source. AEC
Table 3.4. Annual Cabled Service Capacity and Usage
Ferry Service Vehicle Vehicles Notes
eT sr-Tel ay
Noosa North Shore 2x10 | 407,282 | 2020-21
Daintree River | 27 | 335,946 | Estimate based on 2020-21 ticket sales
Moggi | 20 | 180,000 | Estimate based on 500 vehicles per day in 2015-16
Berowra Waters | 15 | 276,000 | Estimate based on 23,000 vehicles per month
Bombah Point | 6 =| na | Nodata
Buns Point ‘| 1 | na. [No dat
Hibbard | 15 | na. | Nodata
Jardine River | 6 | na. | Nodata
iawence [18 | ne [Noo
Lower Portland | 4 | 26,000 | Estimate based on 509 vehicles per week in February 2019
re
Sackville | 15 | 185,000 | Estimate based on more per day than per week for Lower Portland
Settlement Point | 21 | 450,000 | Estimate provided by Port Macquarie Hastings Council
speows ps [na [Nadas
umara pe [na [No
Webbs Creek | 24 | ln No data
Wisemans | 24 | na. | Nodata
wma p39 [na [Not
Source: Consultation with ferry providers, online cata sources
Page 11 of 29Section 12
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 12 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Table 3.5. Ownership and Operating Mode! by Cabled Service
pomacteenet emmwows [ex [ean
Shore Fernes Pty Lid Pty Lid
Bums Point | SetfOperated | Balina Shire Councit__| Ballina Shire Counci__| Balina Shire Counci
Daintree River | Contractual Agreement _| Douglas Shire Counct | Douglas Shire Counci__| Entrada Travel Group
sent [Sometime [Cond [Come [pyle
Council Council Pty Lid
seer [Stoned [Rigenacanat | tapers Comet | Repora cama
Regional Counci Regional Council Regional Council
Lower Portland | Contractual Agreement | The Hills Shire/ Hawkesbury City Council | Tono Services Pty Lid
Hawkesbury City
Councils
Scere ron [nent ne | [Con [pw
Council Council Pry Lid
Beromra Water Tono Services Ply Lid
an sone
Lawrence __| Contractual Agreement _| Transport for NSW _| Transport for NSW __| Tono Services Pty Lid
w= =
& Main Roads
Mortiake Macca Ferries Pty Lid
Sackvite | Contractual Agreement | Transport for NSW | Transportfor NSW | Tono Services Pty Lid
= —
Ummarra | Contractual Agreement | Transpot or NSW | Transport terNSW | Tono Seviees Ply Li
Webbs Greek | Contractual Agreement | Transport for NSW | Trareportfor NSW | Tono Services Ply Lid
Wisemans | Contractual Agreement | TransportforNSW | Traneportfor NSW | Tone Services Ply Lid
a enone
Pty Lid
Source: NSW Tenderfink, consultation with ferry providers, online data sources
Page 12 of 29Section 13
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 13 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Table 3.10. Payment Methods by Cabled Service
Ferry Service Vetaiis of Payment Methods
LocalGovernment Authorities
* Cash payment only with silver coins not accepted
Noosa North Shore | Payment is made upon boarding the vessel
* Minor tnalling of EFTPOS has been undertaken since 2020
« EFTPOS payment only
5 Point * EFTPOS payment infrastructure utilising CBA Albert EFTPOS tablets
* Payment is made at the ferry cabin after boarding the vessel
* Noissues reported with EFTPOS
« EFTPOS and cash payments available
« Ferry tickets are purchased at the ticket booth on the southem side or on board the ferry
© EFTPOS can drop out on the ferry and may take 1-2 minutes per transaction and as such all
Daintree River transactions are processed at the ticket booth on the southern side either upon entering or exiting
the ferry to avoid delays
« All vansactions are processed on board the ferry outside of ticket booth operating hours
e Cash p is are required when the EFTPOS is down
« EFTPOS and cash payments available
« EFTPOS payment infrastructure utilises Square readers connected to the ferry operator's smart
Hibbard + phone — there were concerms with traditional mobile EFTPOS terminals in rain/adverse weather
Settlement Point conditions which is why the Square option was selected
* Payment is made upon boarding the vessel
* 20-30 second processing time per vehicle for EFTPOS
« EFTPOS and oniine payments only
eee * Payment and proof of purchase is provided at the Jardine Ferry Roadhouse prior to boarding
« Cash payment only
* Payment is made upon boarding the vessel
Bombah Point ¢ No reason provided for cash only, but given its location access to existing infrastructure, limited
mobile coverage within a national park, and limited patronage and level of service provided may
be reasons EFTPOS is not provided
* Bookings not taken as vessel operates as an on-demand service
Moaaill « Cash payment only
« Payment is made upon boarding the vessel
« Contractor was unable to be contacted to provide insight into why the service is cash only
Source: Consullation with ferry providers, online data sources
Page 13 of 29Section 14
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 14 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 2. AEC Ferry Review — Extract of Operating Models Available to Council
Table E.1. Available Ferry Service Operating Models
eee tle eee Description
Council Operated with e Council owns the vessels and associated infrastructure and equipment.
Own Resources e Council is responsible for resourcing the service with its own staff.
e Council owns the vessels and associated infrastructure and equipment.
ee e Council pays the contractor a vanable payment based on a set share of the revenue
received from users of the service.
Cont 10 . e Council owns the vessels and associated infrastructure and equipment.
Fixed Fee for Service _ ® Council pays a fixed amount to the contractor for an agreed level of service irrespective of
the revenue received.
Cont ie : ; ¢ Council owns the vessels and associated infrastructure and equipment.
Fd tuste Sacintae e Council pays a tower fixed base amount to the contractor for an agreed level of service,
Sienna plus a variable payment based on a set share of the revenue received from users of the
service,
Contracted Operations with | « Council owns the vessels and associated infrastructure and equipment.
Minimum Fee for Service « Council quarantees the payment of a minimum amount to the contract for an agreed level
plus Revenue Share of service, plus a variable payment based on a set share of the revenue received from
Above a Certain Threshold users of the service above a certain threshold.
Fully Outsourced e Contractor owns the vessels and associated infrastructure and equipment.
Operation with Fixed ¢ Contractor sets prices (potentially with set restrictions during the contract term) and pays
Annual Payment to Council Council a fixed annual fee.
« Contractor owns the vessels and associated infrastructure and equipment.
Revenue Share e Council pays the contractor a variable payment based on a set share of the revenue
received from users of the service.
e Contractor owns the vessels and associated infrastructure and equipment.
Fixed Fee for Service e Council pays a fixed amount to the contractor for an agreed level of service irrespective of
the revenue received.
e Contractor owns the vessels and associated infrastructure and equipment.
Fixed Fee for Service plus | e Council pays a lower fixed base amount to the contractor for an agreed level of service,
Revenue Share plus a variable payment based on a set share of the revenue received from users of the
service.
5 Servi e Contractor owns the vessels and associated infrastructure and equipment.
usin ae e Council guarantees the payment of a minimum mount to the contract for an agreed level
Above @ Carlain Threshold of service, plus a variable payment based on a set share of the revenue received from
users of the service above a certain threshold.
Source: AEC
Page 14 of 29Section 15
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 15 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 3. AEC Ferry Review — Extract of Recommended Operating Models Opportunities & Risks
Option 1 — Council Owned Vessels
NOOSA NORTH SHORE FERRY REVIEW AEC TH
Model feyesen tans ene th) eee
Contracted Operations with Fixed Fee for Service plus Revenue Share
Operational/ Council utilises a contractor with the requisite ferry / marine industry experience to Less flexibility to adapt to current and future Council plan and strategy adoption requiring Medium (M32)
Service operate the service. negotiation and potential compensation should contractual requirements not be clear or
Delivery Technology improvements to improve the customer experience (EFTPOS, booking need to be amended.
systems, etc.) can be advanced via conditions in the new contract. Ongoing customer and or political enquiries / complaints relating to the ferry operation. Medium (M28)
Council will remain to some extent at arm's length regarding the ferry operation and day-
to-day issues.
Council can, via conditions in the new contract, ensure the contractor handles the day-
to-day customer service enquiries / complaints relating to the ferry operation.
Contractor performance monitoring against service benchmarks / KPI's will be able to be
conditioned in the new contract.
Contractor has a strong incentive to move as many vehicles as possible during the day.
Govemance/ Procuring a contractor with the required expertise in the marine / ferry regulatory Council does not have the capability to design and procure suitable vessels for the Extreme (E88)
Legal/ environment and operations will mitigate some legal and regulatory exposure. contractor.
Regulatory Contractor re'ationship management and performance will be guided via the new Legitimate contractors are dissuaded from tendering under a fixed fee for service plus Medium (M52)
contract terms and conditions. revenue share model given associated financial risks.
Council still has an opportunity to undertake business planning to guide future contract Contractual renegotiation and financial compensation associated with potential State High (H72)
management performance. Government imposed permits/restrictions.
Ferry marketing and communicaton can be delegated to the contractor via new contract fe Council is exposed to ICT security breaches if technology obligations are not passed on High (H72)
conditions. to the contractor.
Human Council will avoid the need to directly employ and manage staff under existing local Contractor may not be able to find suitable resources. Medium (M32)
=
intemal services and Property branch management.
Financial/ Tendered prices will exclude a commercial return on capital component civen Council The upfront capital investment required in new / upgraded ferry infrastructure results in Medium (M32)
Economic would be purchasing lhe ferries. deferral / delay of olliet priviily projects in Council's capilal plan.
Upside revenue fluctuation benefits resulting from increased crossing volumes above Financial exposure from reduced crossing volumes compared to budget forecast, High (M40)
budget forecast will be shared with the contractor, but annual price increases do not including exposure to any State Government imposed permits/restrictions.
need to be shared with the contractor if a unit-based system based on the contract year Current fees may nct be sufficient to maintain Council’s retum from the ferry operation High (H60)
fees is established (as per the current contract). due to increased tender prices and capital costs associated with new ferry acquisitions.
Financial efficiencies achieved by the contractor via employing staff under non-local Contractor will tender a revenue share arrangement based on conservative demand High (H60)
government awards should be re‘lected in tendered pricing. estimates to reduce financial risk over the course of the contract term.
~ Selatan
ensure appropriate asset service levels are maintained. management planning, establishment and delivery of annual preventative and reactive
maintenance regimes, renewals forecasting, etc.).
5 a ete
Reputational outcomes and additional Council / Property branch staff pressure and workloads.
Page 15 of 29Section 16
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 16 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Option 2 — Contractor Owned Vessels
NOOSA NORTH SHORE FERRY REVIEW 3
AEC >
Fixed Fee for Service plus Revenue Share
Operational/ Council utilises a contractor with the requisite ferry / marine industry experience to Less flexibility to adapt to current and future Council plan and strategy adoption requiring Medium (M32)
Service operate the service. negotiation and potential compensation should contractual requirements not be clear or
Delivery Technology improvements to improve the customer experience (EFTPOS, booking need to be amended.
systems, etc.) can be advanced via conditions in the new contract. Ongoing customer and or political enquiries / complaints relating to the ferry operation. Medium (M28)
Council will remain to some extent at arm’s length regarding the ferry operation and day-
to-day issues.
Council can, via conditions in the new contract, ensure the contractor handles the day-
to-day customer service enquiries / complaints relating to the ferry operation.
Contractor performance monitoring against service benchmarks / KPI's will be able to be
conditioned in the new contract.
Govemance/ Procuring a contractor with the required expertise in the marine / ferry regulatory Legitimate contractors are dissuaded from tendering under a fixed fee for service plus Medium (M52)
Legal/ environment and operations will mitigate some legal and regulatory exposure. revenue share mode! given associated financial risks.
Regulatory Contractor relationship management and performance will be guided via the new Contractual renegotiation and financial compensation associated with potential State High (H72)
contract terms and conditions. Govemment imposed permits/restrictions.
Council still has an opportunity to undertake business planning to guide future contract Council is exposed to ICT security breaches if technology obligations are notpassedon —_— High (H72)
management performance. to the contractor.
Ferry marketing and communication can be delegated to the contractor via new contract
conditions.
Human Council will avoid the need to directly employ and manage staff under existing local Contractor may not be able to find suitable resources. Medium (M32)
Resources govemment awards / Council’s enterprise agreement conditions, reducing pressure on
intemal services and Property branch management.
Financial/ Council will avoid the need for significant upfront capital funding required to procure new Je Financial exposure from reduced crossing volumes compared to budget forecast, High (M40)
Economic / upgraded ferry infrastructure (not currently included in 10-year capital investment including exposure to any State Goverment imposed permits/restrictions.
forecasts). Current fees may not be sufficient to maintain Council's retum from the ferry operation § Extreme (E88)
Upside revenue fluctuation benefits resulting from increased crossing volumes above due to increased tender prices and capital costs associated with new ferry acquisitions.
budget forecast will be shared with the contractor, but annual price increases do not Contractor will tender a revenue share arrangement based on conservative demand High (H60)
fees is established (as per the current contract).
Financial efficiencies achieved by the contractor via employing staff under non-local
govemment awards should be reflected in tendered pricing.
Asset Asset management responsibilities will reside with the contractor. ‘Asset sweating’ and resulting potential performance failures if contract conditions are High (H72)
not explicit regarding asset management responsibilities.
Political/ Direct political intervention / adverse decision resulting in sub optimal commercial High (H60)
Reputational outcomes and additional Council / Property branch staff pressure / workloads.
Page 16 of 29Section 17
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
4 FINANCIAL PERFORMANCE REPORT – FEBRUARY 2022
Author Financial Services Manager (Acting), Pauline Coles
Corporate Services Department
Index ECM/ Subject / 22.09 – Monthly Financial Performance Report
Attachments 1. Statement of Income and Expenditure (Profit & Loss and Capital)
2. Statement of Financial Position
3. Statement of Cash Flows
4. Summary of Materials and Services Expenditure
EXECUTIVE SUMMARY
Year-to-date (YTD) performance against current budget as at 28 February 2022 is positive with
operating revenues outperforming forecast and operating expenditure below budget. The YTD
budget and actual operating position is high reflecting revenue associated with the second annual
rates and charges levied in January. This will degrade through to June as expenditure is incurred
for service delivery. The Capital revenues are in line with forecast with capital expenditure behind
due to the timing of project delivery.
YTD Financial Performance Summary
Budget Actual Variance Variance
Status
$m $m $m %
Operating Revenue $97.8 $99.3 $1.6 1.6% On Track
Operating Expense $70.1 $68.8 $1.3 1.8% On Track
Operating Position $27.3 $30.5 $3.2 11.6%
Capital Revenue $12.5 $12.8 $0.4 3.1% On Track
Capital Expenditure* $24.8 $20.6 $4.2 16.9% Below Budget
* Reflects constructed assets and intangibles only (excludes contributed)
Financial statements including Statement of Income & Expenditure, Statement of Financial
Position (balance sheet), and Statement of Cash Flows are included as attachments for information
for Council.
Figure 1: Actual Performance Compared to Budget
$120
$97.8 $99.3
$100
$80
$70.3 $68.8
$60
$40
$20
$-
Operating Revenue Operating Expenditure
YTD Budget ($m) YTD Actual ($m)
Page 17 of 29
Section 18
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Council’s performance against key measures of financial sustainability has been calculated as at
February 2022. These indicators enable the reader to assess Council’s success in managing its
budget, cash and debt as well as undertaking sustainable asset management. The table below
contains a snapshot of a number of key measures, with full detail included in the report.
YTD Measures of Financial Sustainability
Current
Target Actual YTD Status
Budget
Operating Surplus Ratio 0-10% -0.6% 30.8% On Track
Net Financial Liabilities Ratio <60% -12.7% -58.2% Above Target
Cash Cover Ratio 3 months 8.8 months 14.2 months Above Target
Asset Sustainability Ratio > 90% 130.1% 51.0% On Track
RECOMMENDATION
That Council note the report by the Financial Services Manager (Acting) to the General Committee
Meeting dated 14 March 2022 outlining February 2022 year to date financial performance against
budget, including changes to the financial performance report with the inclusion of key financial
sustainability indicators.
REPORT
Operating Revenue (YTD Benchmark 66.67%)
Council has received 91% ($99.3 million) of its operating revenue budget ($109.6 million).
Commentary on each revenue category is provided below.
Category Summary Comments
Rates and Levies $74.9 million (100%) Waste utility charges $360k above YTD budget
of the annual budget (101.7% or $13.5 million of $13.2 million annual budget
of $74.8 million has earned)
been earned General rate (net of discounts) $219k below YTD
budget (99.8% or $56.1 million of $56.2 million annual
budget earned)
Fees and $6.4 million (77%) of Plumbing application fees $142k above YTD budget
Charges the $8.2 million annual (85.2% or $1.1 million of $1.3 million annual budget
budget has been earned)
earned Local Laws fees $107k above YTD budget (81% or
$1.3 million of $1.6 million annual budget earned)
Property and Facility fees $99k above YTD budget
(76% or $310k of $408k annual budget earned)
Development assessment fees $97k above YTD
budget (73.3% or $1.7 million of $2.4 million annual
budget earned)
Sale of Goods $8.5 million (76%) of Holiday Park sales $515k above YTD budget (84% or
and Services the $11.1 million $2.6 million of $3.1 million annual budget earned) –
annual budget has Positive revenue variances that hold through the
been received financial year will be offset in part by additional variable
operating costs
Waste management sale of recoverable materials
$265k above YTD budget (100% or $1.1 million of $1.1
million annual budget earned)
Waste disposal fees $63k above YTD budget (67% or
$2.7 million of $4.0 million annual budget earned)
Page 18 of 29
Section 19
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Category Summary Comments
Noosa Aquatic Centre revenue $63k above YTD
budget (71.5% or $1.2 million of $1.7 million annual
budget earned)
Interest $486k (73%) of the Interest revenues on cash invested will need ongoing
Received $670k annual budget monitoring to ensure returns on surplus funds are
has been earned maximised as investment rates begin to increase.
Other Revenue $1.9m (62%) of the Waste sulo bin recoveries below YTD budget $88k
$3.1 million annual (27.8% or $63k of $226k annual budget earned)
budget has been Holiday Park electricity recoupment below YTD budget
earned $79k. No revenue recouped YTD due to supplier
delays from COVID. Installation has now commenced
and is in implementation phase.
Operating $4.2 million (72%) of Operating grants are in line with budget expectations
Grants, the $5.9 million annual at this stage.
Subsidies budget has been 50% ($1.2 million) of the financial assistance grant was
received again prepaid in June 2021 and may impact on
Council’s 2021/22 final operating position if the
prepayment approach is discontinued by the
Australian government.
Unitywater On track Unitywater distributions are fixed each year so little
Distributions budget variance risk
Figure 2: Operating Revenue Position by Type (Excluding Rates)
$9.0 $8.4
$7.5 YTD Budget ($m)
$8.0
YTD Actual ($m)
$7.0
$6.4
$5.8
$6.0
$5.0
$4.2 $4.2
$4.0
$2.9 $2.9
$3.0
$2.0
$1.3 $1.3
$0.5 $0.5 $0.7 $0.6
$1.0
$0.0
Income
Charges
Other
Goods &
Grants
Unitywater
Services
Sales of
Rental
Interest
Fees &
Share of
Operating Expenditure (YTD Benchmark 66.67%)
Actual operating expenditure is currently 62% ($68.8 million) of full year budget ($110.1 million).
Detailed commentary for each expenditure category is provided below.
Category Summary Comments
Employee Costs $23.6 million (62%) of the YTD under expenditure for permanent staff
annual budget of $38.1 salaries and wages ($2.75 million) due to
million has been expended position vacancies, partially offset by additional
spend on casual staff and external labour hire
($1.1 million).
Page 19 of 29
Section 20
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Category Summary Comments
Materials and $31.3 million (61%) of the Environment Services costs $304k below YTD
Services $51.1 million annual budget budget (30.9% or $1.1 million of $3.6 million
has been expended. annual budget spent) – COVID-19 impacts on
staff have delayed project delivery YTD.
Libraries & Galleries $256k below YTD budget
(47% or $860k of $1.8 million annual budget
spent) – timing of heritage programs and
operational contract services
Waste Management $216k below YTD budget
(62% or $7.1 million of $11.3 million annual
budget spent)
Development Assessment $190k below YTD
budget (48% or $807k of $1.6 million annual
budget spent) – timing of development appeal
costs.
Holiday Parks $446k above YTD budget (89%
or $1.5 million of $1.67 million annual budget
spent) – offset by additional revenue.
Finance Costs On track Nil
Depreciation On track Nil
Other Expenses On track Nil
Figure 3: Operating Expenditure Position by Type
$35.0 $31.9 $31.2
YTD Budget ($m)
$30.0
$24.5 $23.6 YTD Actual ($m)
$25.0
$20.0
$13.1 $13.1
$15.0
$10.0
$5.0
$0.7 $0.7 $0.2 $0.1
$0.0
Finance Costs
Materials
Depreciation
Employees
Other
Tourism and Economic Development Investment Summary
Council resolved to report on a monthly basis, investment details for tourism and economic
development. Expenditure at 28 February 2022 is outlined below:
Expenditure Annual Budget YTD Budget YTD Actual YTD Variance
$m $m $m
Payment to Tourism Noosa $2.52 $2.52 $2.52 -
Economic Development $1.06 $0.43 $0.57 ($0.14)
Total $3.58 $2.95 $3.09 ($0.14)
All instalments payable under the Tourism Noosa agreement for the 2021-22 financial year have
been made. Note, the current agreement expires at 30 June 2022 but has been granted a 12
month extension to 30 June 2023.
Page 20 of 29
Section 21
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
YTD Economic Development expenditure is below budget due to lower employee costs ($58k),
due the Branch Manager acting as Director of Environment & Sustainable Development for part of
the financial year. This has also impacted timing for delivery of initiatives under the Local Economic
Plan ($76k).
Tourism and economic development activity is funded through the general rate, with 5.8% of the
annual general rate committed towards tourism and economic development. Should actual general
rate revenue fall below budget, this does not impact Council’s contractual commitment to fully fund
all tourism and economic development activity. Any general rate revenue shortfall is funded
through other general revenue sources to ensure all planned activities are undertaken in full.
Capital Revenue
YTD capital revenue of $12.8 million received comprises cash contributions from developers ($1.7
million) and capital grants ($10.4 million). Note that the timing of capital grant receipts are generally
dependent on the timing of grant conditions and also capital delivery performance, and that the
timing of the receipt of developer contributions (both cash and contributed) is unpredictable.
Figure 4: Capital Revenue by Type
$12.0 $10.4
$9.9 YTD Budget ($m)
$10.0
YTD Actual ($m)
$8.0
$6.0
$4.0
$1.6 $1.7
$2.0 $1.0 $0.7
$0.0
Subsidies
Contributed
Contribution
Grants /
Assets
Cash
s
Capital Program
Actual capital expenditure (excluding commitments) is $20.6 million (YTD budget $24.8 million).
Detailed discussion of progress in the delivery of the capital works program is provided through a
separate quarterly report by the Asset Planning Manager.
Figure 5: Capital Program Delivery Performance
$25.0
$21.3
YTD Budget ($m)
$20.0 $17.7
YTD Actual ($m)
$15.0
$10.0
$5.0
$2.1 $1.5
$1.3 $1.3
$0.0
Capital works Other capital Loan redemption
Page 21 of 29
Section 22
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Cash Management and Investment Performance
Total cash on hand at the end of February was $106.1 million. Included in this balance are funds
held in trust and for restricted purposes (e.g. unexpended levy and grant funds), prepaid grants
including the financial assistance grant and other capital works grants, January rates payments
received, and unspent monies committed for funding capital projects which are underway and will
continue during the financial year.
The following pie charts present the mix of cash held at February 2022 by agency (graph on the
left) and by credit risk rating (graph on the right). All funds have been invested in accordance with
the Investment Policy and in consideration of the principles of ethical investment, preservation of
capital, return on investment and counterparty thresholds.
Figure 6: Closing Cash Held by Agency and Credit Rating
The following chart monitors the 12 month trend on total cash and the agencies invested. Payments
received in February from bi-annual rates generated a significant increase in cash, which have and
will be invested in short term QTC deposits in line with Council’s Investment Policy. The QTC cash
rate currently offers the best available short term investment rate when compared to rates being
offered by the commercial institutions.
Figure 7: 12 Month Trend of Cash Invested by Agency
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
-
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
Bendigo TD Westpac TD NAB TD Suncorp TD CBA TD QTC CBA Operating
Page 22 of 29
Section 23
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no current emerging risks regarding
performance noting the early stage of the financial year.
Category Comments
Operating Surplus Ratio Intent: Identifies the extent to
90% 82.6%
which revenues cover
80%
operational expenses, to
70%
ensure community equity is not
60.9%
degraded
60%
50% 44.5% Target: 0 – 10%
39.0%
40% 30.5%
Result: 30.8%
30.8%
30% Comment: The ratio is at the
18.3%
20%
8.3%
second peak for the year
10% following the issue of rates and
0% levies in January. This ratio will
-10% slowly decline as expenditure
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun on operations occurs through
to the end of the financial year
Actual Budget Target at 30 June 2022.
Cash Expense Cover Intent: Indicates how long
16.0 council can continue paying its
14.2 day-to-day expenses from
Months (Cash to Cover Operations)
14.0 12.8
12.2 12.5
11.9 11.8
cash at bank without needing
11.6 11.2
12.0 10.9
10.4
10.8 additional cash flows
10.1
10.0 Target: > 3 months
8.0 Result: 14.2 months
6.0 Comment: Council is forecast
to remain above target for the
4.0
financial year. Business as
2.0 usual expenditure through to
- - - - - - - - - - - - - 30 June 2022 will continue to
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb diminish Council’s cash
holdings, albeit not below the
Actual Minimum (>0 months)
Target (3 months) Maximum (6 months) target range of 3 – 6 months.
Asset Sustainability Ratio Intent: Measures the extent to
140% 130.1%
which assets are being
replaced as their condition
120% degrades to ensure service
100%
potential is maintained
90% Target: 90% of depreciation
80%
budget spent on renewals
60% 51.0% annually
39.8%
32.9% Result: In line with budget
40% 27.5%
18.2%
Comment: The capital works
20%
6.6% 10.3% program remains on track and
0.9% this ratio will continue to
0%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun increase each month as
expenditure on renewals
Actual Renewal Spend (%) Target (%) Renewals Budget (%) occurs.
Page 23 of 29
Section 24
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Category Comments
Net Financial Liabilities Ratio Intent: Outlines the level that
net Council debt can be
80%
60%
serviced by operating
60% revenues. A ratio below zero
implies that liabilities are less
40%
than cash (and other current
20% assets) and there is adequate
borrowing capacity available if
0% needed.
-20% Target: less than 60%
-13%
Result: -58%
-40%
Comment: Council has low
-60% debt levels and strong cash
-58%
-80%
holdings.
Target Budget YTD Actual
Investment Return Intent: Ensure appropriate
return on investment yield for
cash at bank.
Target: 0.25% above current
Bloomberg commonwealth 10-
year bond rate yield (0.08%)
Result: 0.33%
Comment: Regardless of the
current levels of low long-term
bond and interest rates
Council’s investment return still
remains above target.
As investment rates increase
opportunities to maximise
returns on surplus funds will be
explored in line with Council’s
investment policy.
Rates in Arrears Intent: Ensuring that the
amount of unpaid rates
14.0%
Percentage of Annual Rates in Arrears
remains sustainable and does
11.7%
12.0% not negatively impact cash
10.2%
9.5% flows
10.0%
Target: 5% industry
8.0% 7.4% 7.3%
6.5% benchmark
6.2% 6.0% 5.8%
6.0%
5.7%
5.2%
4.6%
Result: 11.7%
4.0%
Comment: Rates arrears are
at its bi-annual peak following
2.0% the due date for the January
0.0%
rates issue. This ratio will
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb continue to decline from the
high point in the cycle as
Actual Target payments are received.
Recovery action may be
considered where appropriate.
Previous Council Consideration
Nil.
Page 24 of 29
Section 25
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Finance
As above.
Risks & Opportunities
Council’s risk register identifies a number of risks that could impact on its ongoing financial
sustainability. In order to manage and mitigate these risks, Council uses various tools which include
monthly ongoing financial reporting to identify and address issues, conservative budgeting and
compliance with the Financial Sustainability Policy, regular budget reviews, effective liquidity
management to ensure sufficient fiscal flexibility, as well as the Reserves and Restricted Cash
policy requiring both a disaster management reserve and 3 months cash cover reserves to fund
emergent matters.
Some examples of potential risks that may impact on Council’s operational performance, capital
program delivery, cashflow and cash reserves include:
Substantial damage to or failure of Council infrastructure due to natural disaster or other
emergent issue that may require significant unplanned investment;
Closure of Council facilities due to ongoing Covid 19 restrictions;
A prolonged IT system failure affecting Council’s ability to deliver services or issue rates
notices;
Economic conditions affecting ratepayers’ ability to pay rates;
Market driven increases in construction and operational costs significantly above estimates;
Labour and material shortages and delays.
Given the recent flooding event, assessments are currently underway to assess what impact this
may have on Council’s financial position and what disaster funding opportunities may available to
offset this expenditure.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
Departments/Sections Consulted:
X Chief Executive Officer X Community Services X Corporate Services
Executive Support Director X Director
Community Development X Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws Procurement
Waste & Environmental Health Property
Revenue Services
X Executive Services X Environment & Sustainable Development X 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
Page 25 of 29
Section 26
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 26 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 1
Profit and Loss Statement
Revenue
Recurrent Revenue
Rates, levies and charges 74.704 74,755 74,209 154 100%
Fees and charges 8.246 5,827 6,264 537 77%
Interest received 670 476 436 10 73%
Sale of Goods and major services 11,004 7484 8,447 963 76%
Sale of contract and recoverable works 23 - 0 0 1%
Rental & lease income 1,885 1,343 1,334 (10) 71%
Other income 1.244 606 605 (81) 40%
Grants, subsidies, contributions and donations 5,925 4.240 4,243 3 72%
Unitywater Distributions 5,650 2.044 2,044 - 52%
109,530 ‘97.766 99,333 1,567 31%
Expenses
Recurrent Expenses
Employee benefits BAX 24,478 23,615 864 62%
Materials and services 51,081 31,851 31,222 628 61%
Finance costs 1114 724 736 (12) 66%
Depreciation 19,589 13,060 13,061 (2) 67%
Other expenses 23 158 130 28 56%
110,161 70,272 68,765 1,507 62%
Operating Result YT
Summary of Capital Expenditure and Funding
Capital Funding
Capital cash contributions and infrastructure charges 1,397 1,565 1,717 152 123%
Contributed assets 1,500 1,011 688 (322) 46%
Capital grants and subsidies 18,963 0,875 10,433 568 55%
Cash / revenue 22.860 13,332 9,305 (4,027) 41%
New loan borrowings 4.850 - - - o%
Other capital revenue - - - - o%
Total Capital Funding 9ST 5B AY
Capital Expenditure
Contributed assets 1,500 1,011 6388 (322) 46%
Capital works - constructed assets 42440 21,34 17,740 (3,504) 42%
Capital works - other capital 4342 2,141 1,537 (605) 35%
Loan redemption 1,297 1,207 1,297 - 100%
anes aes - - 831 881 o%
Page 26 of 29Section 27
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 27 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 2
Current Assets
Cash and cash equivalents 65,875 106,201 68,895
Trade and other receivables 10,286 11,998 7,467
Inventories 144 153 144
Contract Assets - 487 487
Other current assets 3,425 3,099 4.955
79,730 121,939 81,948
Non Current Assets held for sale - - -
Total Current Assets 79,730 121,939 81,948
Non Current Assets
Trade and other receivables 53,761 49 468 49 468
Other non current Assets - - -
Investments 88,040 92.434 92,434
Investment property 3,000 2,900 2,900
Property, plant and equipment 999,038 959,076 952,579
Right of Use Assets 89 869 89
Intangible assets 2,925 2,771 3,036
Total Non Current Assets 1,146,853 1,106,737 1,100,506
TotalAssets | 4,226,584 1,228,676 1,182,454
Current Liabilities
Trade and other payables 7,334 14,817 10,468
Contract Liabilities 4,377 4.377 4377
Borrowings 946 4 955
Lease Liablities 25 25 25
Provisions 8,103 5,121 4947
Other 3,998 2.943 2,898
Total Current Liabilities 24,783 27,279 23,669
Non Current Liabilities
Borrowings 24,390 20,258 20,258
Lease Liabilities 66 66 66
Provisions 16,555 16,555 16,555
Total Non Current Liabilities 41,011 36,879 36,879
Totalliabilities: 6579 ATER 60,5497
Community Equity
Asset Revaluation Surplus 126,129 108,561 108,473
Retained Surplus / (Defeciency) - - -
Shire Capital 1,034,661 1,013,432 999,512
Current Year Net ity - 54517 1,905
Page 27 of 29Section 28
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
Page 28 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 3
Cash flows from operating activities
Cash Flows from Operating Activities
Receipts from Customers 04.649 92,273 93,975
Payments to Suppliers and Employees (20,066) __(55.466) _ (84.528)
4,582 36,807 9.447
Investment and Interest Revenue Received 3,270 1,495 3.401
Rental Income 1,873 1,334 1,365
Non Capital Grants and Contributions 5,887 4,243 6,085
Income Tax Equivalent Received 1,200 1,088 1,450
Income from Equity investments 1,850 847 1,600
Payments:
Borrowing Costs - - (2,498)
Interest Expense (516) (86) (131)
‘Net Cash Inflow(Outfiow) from Operating Activities == 48.446 5.72B 20,719
Cash Flows from Investing Activities
Proceeds of Sale of Property, Plant and Equipment - 103 217
Grants, Subsidies, Contributions and Donations 20,360 12,150 13,679
Payments:
Payments of Property, Plant and Equipment (45,953) (19,138) (22,721)
Payments for Intangible Assets (829) (361) (1,385)
Net Movement in Loans and Advances - 125 125
Net Cash Inflow/(Outflow) from Investing Activities == (26.422) 7.22) (10,085),
Cash Flows from Financing Activities
Proceeds from Borrowings 4,859 - 2,500
Payments:
Repayment of Borrowings (736) (1,288) (1,263)
‘Net Cash Inflow(Outfiow) from Financing Activities = AZB (299) 1.287
Net Increasel(Decrease) in Cash andCashEquivalentsheld = (4153) 37.9061. TT
Cash and Cash Equivalents at the beginning of the reporting period 70,028 68,894 57,023
Page 28 of 29Section 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
7. CLOSED SESSION
Nil
Page 29 of 29
GENERAL COMMITTEE MEETING AGENDA 14 MARCH 2022
ATTACHMENT 4
Materials and services
Advertising and Marketing 27 184 140 14 62%
Administration Supplies and Consumables 751 482 439 42 59%
Audit Expenditure 174 1
5 1 1 2 4 5 1681 962 30 22 96 12
5 1 1 2 4 6 1912 963 31 27 82 (1)
5 1 1 2 4 7 2068 962 41 22 81 7%
4 1 1 2 5 0 356 985 1760 47 -1
5 1 1 2 5 1 356 999 262 22 96 Communications
5 1 1 2 5 2 563 985 52 47 93 and
5 1 1 2 5 3 625 999 26 22 94 IT
5 1 1 2 5 4 1178 985 63 47 77 634
5 1 1 2 5 5 1420 985 54 47 94 522
5 1 1 2 5 6 1663 999 48 22 91 612
5 1 1 2 5 7 1885 985 63 47 80 (31)
5 1 1 2 5 8 2061 999 55 22 96 90%
4 1 1 2 6 0 356 1025 1760 48 -1
5 1 1 2 6 1 356 1036 154 22 95 Commission
5 1 1 2 6 2 518 1036 57 22 59 Paid
5 1 1 2 6 3 1170 1025 68 47 75 1.218
5 1 1 2 6 4 1411 1025 63 47 0 7B4
5 1 1 2 6 5 1652 1026 55 47 84 997
5 1 1 2 6 6 1870 1026 78 47 95 (213)
5 1 1 2 6 7 2061 1039 55 23 95 82%
4 1 1 2 7 0 356 1061 1760 48 -1
5 1 1 2 7 1 356 1072 154 29 66 Consultancy
5 1 1 2 7 2 517 1073 106 22 95 Services
5 1 1 2 7 3 1158 1061 83 47 70 1.279
5 1 1 2 7 4 1656 1062 54 47 94 795
5 1 1 2 7 5 1882 1062 66 47 94 (136)
5 1 1 2 7 6 2060 1076 56 22 94 62%
4 1 1 2 8 0 340 1096 1776 52 -1
5 1 1 2 8 1 340 1096 122 47 95 Contract
5 1 1 2 8 2 465 1096 111 47 96 Services
5 1 1 2 8 3 1140 1101 100 46 79 24,287
5 1 1 2 8 4 1391 1101 83 46 73 14,547
5 1 1 2 8 5 1626 1101 88 47 90 14,236
5 1 1 2 8 6 1883 1100 62 46 68 252
5 1 1 2 8 7 2061 1113 55 22 94 59%
4 1 1 2 9 0 356 1134 1760 65 -1
5 1 1 2 9 1 356 1150 171 25 41 Contriputions,
5 1 1 2 9 2 532 1136 136 48 92 Donations,
5 1 1 2 9 3 676 1136 152 48 96 Sponsorship
5 1 1 2 9 4 828 1136 52 48 95 and
5 1 1 2 9 5 880 1136 88 48 96 Prizes
5 1 1 2 9 6 1159 1137 72 48 60 3.471
5 1 1 2 9 7 1404 1136 72 48 93 3,059
5 1 1 2 9 8 1548 1140 6 59 90 |
5 1 1 2 9 9 1625 1135 86 48 86 3,170
5 1 1 2 9 10 1882 1134 60 48 84 (111)
5 1 1 2 9 11 2061 1150 55 22 61 91%
4 1 1 2 10 0 340 1173 1776 51 -1
5 1 1 2 10 1 340 1173 138 47 94 Electricity
5 1 1 2 10 2 1158 1176 83 47 86 1,729
5 1 1 2 10 3 1394 1176 80 47 90 1,147
5 1 1 2 10 4 1631 1177 80 47 95 1,132
5 1 1 2 10 5 1917 1190 31 22 90 15
5 1 1 2 10 6 2060 1190 56 22 91 65%
4 1 1 2 11 0 352 1210 1764 52 -1
5 1 1 2 11 1 352 1210 94 47 23 intemal
5 1 1 2 11 2 449 1210 68 47 88 Fleet
5 1 1 2 11 3 524 1210 75 47 96 Costs
5 1 1 2 11 4 602 1210 48 47 93 and
5 1 1 2 11 5 653 1210 103 47 80 Extemal
5 1 1 2 11 6 755 1210 75 47 83 Plant
5 1 1 2 11 7 829 1210 60 47 96 Hire
5 1 1 2 11 8 1170 1215 69 46 88 1,668
5 1 1 2 11 9 1394 1215 83 47 75 1,073
5 1 1 2 11 10 1643 1213 67 47 91 1,156
5 1 1 2 11 11 1904 1213 48 47 57 7)
5 1 1 2 11 12 2060 1227 56 22 85 69%
4 1 1 2 12 0 356 1249 1760 49 -1
5 1 1 2 12 1 356 1260 85 23 95 Grants
5 1 1 2 12 2 438 1247 63 47 84 Paid
5 1 1 2 12 3 504 1247 31 47 94 to
5 1 1 2 12 4 540 1247 141 47 93 Community
5 1 1 2 12 5 684 1247 178 47 80 Organisations
5 1 1 2 12 6 1158 1249 83 47 89 1,939
5 1 1 2 12 7 1406 1250 68 47 92 1,152
5 1 1 2 12 8 1631 1251 83 47 96 1,232
5 1 1 2 12 9 1885 1251 63 47 69 (80)
5 1 1 2 12 10 2060 1264 56 22 89 64%
4 1 1 2 13 0 344 1287 1772 47 -1
5 1 1 2 13 1 344 1287 138 47 90 Insurance
5 1 1 2 13 2 1178 1287 55 47 93 703
5 1 1 2 13 3 1419 1287 55 47 93 679
5 1 1 2 13 4 1651 1287 55 47 86 656
5 1 1 2 13 5 1902 1287 46 47 89 23
5 1 1 2 13 6 2061 1301 55 22 95 93%
4 1 1 2 14 0 356 1336 1760 39 -1
5 1 1 2 14 1 356 1338 68 28 95 Legal
5 1 1 2 14 2 440 1337 122 29 95 Expenses
5 1 1 2 14 3 1170 1337 67 37 76 1,856
5 1 1 2 14 4 1406 1337 72 38 94 1,059
5 1 1 2 14 5 1660 1336 51 38 64 863
5 1 1 2 14 6 1902 1336 46 37 96 196
5 1 1 2 14 7 2060 1341 56 22 95 46%
4 1 1 2 15 0 356 1363 1760 48 -1
5 1 1 2 15 1 356 1374 122 29 96 Operating
5 1 1 2 15 2 486 1375 89 22 96 Leases
5 1 1 2 15 3 582 1375 47 22 96 and
5 1 1 2 15 4 637 1374 94 23 92 Rentals
5 1 1 2 15 5 1186 1363 55 47 84 302
5 1 1 2 15 6 1427 1378 46 22 75 218
5 1 1 2 15 7 1655 1364 56 47 90 233
5 1 1 2 15 8 1897 1364 51 47 85 (15)
5 1 1 2 15 9 2060 1378 56 22 88 77%
4 1 1 2 16 0 356 1411 1760 33 -1
5 1 1 2 16 1 340 1407 126 34 95 Software
5 1 1 2 16 2 471 1407 54 34 95 and
5 1 1 2 16 3 527 1411 159 22 95 Maintenance
5 1 1 2 16 4 1157 1411 81 32 93 2,166
5 1 1 2 16 5 1406 1411 68 33 93 1,472
5 1 1 2 16 6 1643 1411 68 32 83 1,384
5 1 1 2 16 7 1906 1411 42 30 44 BE
5 1 1 2 16 8 2060 1415 56 22 96 64%
4 1 1 2 17 0 356 1440 1760 44 -1
5 1 1 2 17 1 356 1448 222 28 49 Subecrptions
5 1 1 2 17 2 529 1440 49 41 96 and
5 1 1 2 17 3 585 1448 162 29 94 Registrations
5 1 1 2 17 4 1182 1440 55 40 84 369
5 1 1 2 17 5 1413 1440 61 40 92 289
5 1 1 2 17 6 1664 1440 50 40 40 32
5 1 1 2 17 7 1897 1440 51 44 17 (13)
5 1 1 2 17 8 2061 1451 55 23 32 82%
4 1 1 2 18 0 355 1483 1761 40 -1
5 1 1 2 18 1 355 1483 81 39 92 Waste
5 1 1 2 18 2 438 1483 66 39 95 Levy
5 1 1 2 18 3 510 1488 125 29 96 Payments
5 1 1 2 18 4 1170 1484 68 39 82 1,460
5 1 1 2 18 5 1417 1484 57 39 89 373
5 1 1 2 18 6 1643 1484 68 39 89 1,057
5 1 1 2 18 7 1889 1483 59 39 68 (34)
5 1 1 2 18 8 2060 1488 56 23 92 73%
4 1 1 2 19 0 355 1514 1761 48 -1
5 1 1 2 19 1 355 1525 262 29 94 Water
5 1 1 2 19 2 433 1511 52 47 95 and
5 1 1 2 19 3 492 1525 125 29 96 Sewerage
5 1 1 2 19 4 624 1525 105 29 96 Charges
5 1 1 2 19 5 1158 1514 83 47 94 1,090
5 1 1 2 19 6 1415 1514 55 47 41 697
5 1 1 2 19 7 1652 1515 54 46 79 531
5 1 1 2 19 8 1901 1515 47 47 90 166
5 1 1 2 19 9 2060 1528 56 23 94 49%
4 1 1 2 20 0 354 1561 1762 33 -1
5 1 1 2 20 1 354 1562 33 22 93 All
5 1 1 2 20 2 394 1562 73 22 96 Other
5 1 1 2 20 3 473 1562 112 22 38 Materials
5 1 1 2 20 4 590 1558 52 34 96 and
5 1 1 2 20 5 641 1558 112 34 96 Services
5 1 1 2 20 6 1167 1561 73 33 73 5.706
5 1 1 2 20 7 1404 1561 71 33 79 2,870
5 1 1 2 20 8 1630 1561 81 33 75 2.205
5 1 1 2 20 9 1888 1561 63 31 96 664
5 1 1 2 20 10 2061 1565 55 23 74 39%
3 1 1 3 0 0 1145 1589 972 48 -1
4 1 1 3 1 0 1145 1589 972 48 -1
5 1 1 3 1 1 1145 1590 95 47 75 51,091
5 1 1 3 1 2 1380 1590 92 47 85 31,851
5 1 1 3 1 3 1625 1589 90 47 94 31,222
5 1 1 3 1 4 2061 1602 56 22 84 61%
3 1 1 4 0 0 260 2644 1983 715 -1
4 1 1 4 1 0 260 2644 717 48 -1
5 1 1 4 1 1 260 2644 47 48 85 7.
5 1 1 4 1 2 423 2647 337 35 96
5 1 1 4 1 3 775 2647 202 35 96 SESSION
4 1 1 4 2 0 392 2765 43 31 -1
5 1 1 4 2 1 392 2765 43 31 96 Nil
4 1 1 4 3 0 1954 3315 289 44 -1
5 1 1 4 3 1 1954 3315 105 44 96 Page
5 1 1 4 3 2 2074 3315 49 35 96 29
5 1 1 4 3 3 2138 3315 43 35 96 of
5 1 1 4 3 4 2194 3315 49 35 96 29