2017-08-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                8 AUGUST 2017


2.   Proposed Funding Agreement

Following negotiations, a draft funding agreement has been developed. A copy of the draft
funding agreement is provided at Attachment 1 to this report.

In summary, the proposed agreement deals with the following:
 The proposed agreement is for a three-year term with a two-year option. This aligns overall
    with the 5 year period of the Noosa Tourism Strategy but also gives Council an opportunity to
    review the agreement after 3 years to ensure that it is satisfied with performance. Towards
    the end of this agreement, Tourism Noosa needs to work with stakeholders (including
    Council) to develop a new Tourism Strategy and then it is anticipated that another funding
    agreement would be entered into at that stage to align with that new Strategy.
 Funding for the first year of this agreement (2017/18) is specified as $2,520,000 which is in
   accordance with our adopted 2017/18 budget. Each year thereafter, Tourism Noosa is
   required to make a submission to Council recommending funding requirements and they are
   required to provide a copy of their proposed annual business plan, detailed budget, previous
   year financial information and any other information Council requires to consider their funding
   request. This is required to be provided by 15 March each year to align with our budget
   timetable. To provide certainty for Tourism Noosa, we have also specified that the amount
   payable by Council to Tourism Noosa each year will be no less an annual amount paid to
   Tourism Noosa in the previous year. This funding will come from the Tourism and Economic
   Levy. The funding is, of course, conditional on Noosa Council continuing with the Tourism
   and Economic Levy.
 Tourism Noosa is required to maintain a marketing cash contingency of $350,000.
   Essentially, this is to ensure that Tourism Noosa maintains a cash reserve that can be used
   for any urgent marketing required in the event of an unforeseen event. Examples that have
   occurred in the past could include a pilot strike, weed infestation on main beach, major
   weather events etc. This is consistent with the previous agreement.
 The proposed funding agreement also addresses some practical issues including
   communication regarding the approval of Tourism related events.
 The reporting requirements for Tourism Noosa have been strengthened to ensure that
   accountability is maintained. This includes the following requirements for Tourism Noosa:
   o Provide an annual report (including a copy of the audited financial statements) to Council
       by 30 November each year. Council’s CEO will provide these in a report to Council that
       ensures that these are a matter of public record.
   o Provide an annual Business Plan to Council by 15 March each year as part of its
       submission on annual funding. This Business Plan is to include detailed financial
       information including a statement of comprehensive income, statement of financial
       position and statement of cash flows and key performance measures that link to the
       Tourism Strategy Noosa 2017 – 2022. This will be considered by Council as part of its
       annual budget process.
   o Twice a year (in February and August) Tourism Noosa are required to present to Council
       on their progress. The intention would be that Chairperson and CEO of Tourism Noosa
       meet with Councillors and relevant Directors on a twice yearly basis to discuss their
       activities, KPIs, financial progress and generally to keep the Councillors informed about
       Tourism Noosa’s activities.

Over the years, Noosa Council and Tourism Noosa have had an excellent working relationship
based on working in partnership and this is expected to continue into the future. This funding
agreement will provide a basis for Council funding Tourism Noosa to enable them to implement
the Noosa Tourism Strategy 2017 – 2022. It also puts in place the necessary mechanisms to
ensure accountability for performance and the expenditure of public funding.


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