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Noosa Council 2018-19 Annual Report
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Full text of sections 2 to 81 (of 114)
Section 2
Peregian Beach Digital Hub About this report This is Noosa Shire Council’s Annual Report 2018-2019. It is a comprehensive summary of our performance from July 1 2018 to June 30, 2019. Acknowledgements Council thanks all contributors and stakeholders involved in the development of this report. Council acknowledges the Traditional Custodians of the land and pays respect to Elders past and present, and the broader Aboriginal and Torres Strait Islander community of Noosa Shire. Copyright © Noosa Shire Council. Noosa Shire Council supports and encourages the dissemination and exchange of information. However, copyright protects this publication. Noosa Shire Council has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. All images within this report are © Noosa Shire Council unless credited otherwise. Licence: This work is licensed under the Creative Commons CC BY 4.0 Australia Licence. You are free to copy and distribute this material in any format, as long as you attribute the work to Noosa Shire Council and indicate if any changes have been made. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. Attribution: Noosa Shire Council
Section 3
Table of Contents
Introduction 4 Significant business activity 40
Commercial business units 40
About Noosa 4
Competitive neutrality 40
Noosa at a glance 5
Summary of concessions for rates
Message from the Mayor 6 and charges 40
Message from the CEO 8 Deferment for Pensioners 41
Councillors 10 Pensioner Concessions 41
Invitation to change tenders 41
Our Organisation 11
About Council 12
Community 42
Organisational Structure 12 Financial Report
Background 43
Highlights and achievements 43
Year in Review 13 Where was the budget spent? 43
Top ten highlights 14 Statement of comprehensive income 44
The Noosa Environment 16 Operating revenue –
The Noosa Community 18 where the money came from 44
The Noosa Economy 20 Operating expenditure –
where the money goes 45
Long term planning for Noosa 22
Statement of financial position 45
Excellence as a Council 24
Assets – what we own 46
Liabilities – what we owe 47
Reportable Statement of changes in equity 47
Disclosures 27 Statement of cash flows 47
Financial ratios 48
Information relating to Councillors 28
Operating surplus ratio 48
Overseas travel 31
Net financial liabilities ratio 49
Complaints about Councillors 31
Asset sustainability ratio 49
Executive remuneration 32
Summary 49
Equal opportunity employment 33
Administrative Action Complaints 33
Right to Information and Privacy 34 Financial Statements 50
Council Registers 34
Audit and Risk Committee 35
Internal Audit 35
Grants 35
Discretionary funds 39
Beneficial enterprises 39
Business activities 40
Section 4
Introduction
About Noosa
Noosa Shire is located in south-east It is recognised as a UNESCO Biosphere and
Queensland, about 120 kms north of the has a proud history of preserving its natural
Brisbane CBD. Situated at the northern tip of environment. The Noosa River has an A rating
Queensland’s Sunshine Coast, Noosa Shire for water quality and thirty five percent of the
covers an area of 872km2 and is home to more Shire is protected as either national park,
than 55,000 people. reserve or conservation area.
The Traditional Owners and original custodians Noosa Shire has an economy that is diversifying
of the land were the Kabi Kabi / Gubbi Gubbi beyond a thriving tourism industry. Noosa’s
people. economy relies significantly on the health,
profesional service, tourism, retail and
Noosa Shire has a rich history and heritage from construction sectors.
the first peoples through European settlement to
the present day. It is home to more than 7000 businesses,
Many of our towns and villages have retained predominately small and micro, as well as
significant numbers of heritage houses successful entrepreneurs and skilled business
and businesses, including many unique people.
‘Queenslanders’.
Noosa enjoys a sub-tropical climate, beautiful
Noosa Shire has ten State heritage listed beaches, mountains and forests, which makes it
properties, including the Lower Mill Site Boiler one of Australia’s most desirable places to live,
House and Kilns which is a Council owned and work and visit.
Noosa Council | 2018/2019 Annual Report Page 4
managed property - open to the public daily.
Section 5
Noosa at a glance
Under 18 yrs 19.9%
18 - 24 yrs 5.3%
25 - 49 yrs 6.6%
50 - 69 yrs 32.4%
55,369 Over 70 yrs 15.8%
47
Noosa’s population Population by age Median Age
Couples with children 22.8%
Couples w/o children 31.9%
One parent family 9.9%
Group household 3.5%
Lone person 22.4%
Other 9.5%
$1,191
22,109 Household types Median weekly
Households household income
$690,028 $550 7,059 $2.81 billion
Median house price Median house rental Local businesses Gross Regional Product
Health Care Employed full-time 49.3%
& Social Services 14.7% Employed part-time 42.5%
Main
Accommodation Employment Unemployed - looking
& Food Services 14.5% Employment
status for full-time work 3.8%
Retail trade 13.9% Sectors Unemployed - looking
Construction
Education and Training
9.3%
9.1%
24,923 for part-time work 2.9%
Jobs in Noosa
18
Hinterland
11
Coastal
872 km2
Total land area
villages towns
Source: Australian Bureau of Statistics
Noosa Council | 2018/2019 Annual Report Page 5
Section 6
Message from the
Mayor
Whew! 2018-19 was quite a year for
Noosa Council, involving a number of
big vision projects. What’s more, we
finished the financial year with a solid
fiscal performance.
Let’s begin with the Yurol/Ringtail Forest Conservation
Project. While the groundwork was prepared in
preceding years, 2018-19 saw the actual signing of the
landmark agreement between the State Government,
Noosa Parks Association and Noosa Council to
purchase plantation rights from HQ Plantations. houses 18 businesses employing 55 people. In fact, 2
new businesses were birthed at the Hub, which also
Within ten years, this project will see 2,400 hectares of hosted multiple workshops, events with quality speakers,
rehabilitated plantation and state forest land added to and at the time of writing was providing entrepreneurial
the conservation estate as national park. This wildlife support to 27 companies. The Hub has also focussed
corridor will provide connectivity between the hinterland on the next generation of entrepreneurs and technical
and the Cooloola section of the Great Sandy National wizards, with after-school inventor and robotics clubs,
Park – a wonderful result for our local koalas and many and 10 high school students being mentored.
other endemic species.
The Noosaville Library refurbishment and expansion
was completed and opened by the Minister for Local
The stunning boardwalk that connects Little Cove
Government, Stirling Hinchliffe. The new-look library
with the entrance to the headland section of the Noosa
includes a maker space, meeting room, dedicated
National Park was also completed. This magnificent,
history room, and outdoor wi-fi area. It is also much
bespoke structure, designed to minimise impact on the
more spacious, whilst retaining the integrity of the
landscape, really has that “wow” factor. It won an award
original architecture.
for environmental excellence before it was even open to
the public and has since won further building awards. The library extension was partly achieved with a State
Government grant, and in this regard, Noosa Council
has been served very well with grants funding. A total of
$8.3M, including the Federal Financial Assistance Grant,
“The stunning has been received through the 2018-19 financial year.
boardwalk ... won an But good financial management requires much more
than successful grant applications. And so, once again,
award before it was even we completed the year with a small surplus. But we also
managed to pay down $10 million from our historical
open to the public” inherited debt, significantly reducing this high-interest
burden from future councils.
The Peregian Digital Hub exceeded expectations as it
ventured forth in its first year of operations. Under the
masterful guidance of Chris Boden, the facility now
Noosa Council | 2018/2019 Annual Report Page 6
Section 7
The gargantuan task of writing the Draft Noosa Plan was I want to thank my fellow Councillors and all of our completed so that it could be released for community wonderful Council staff for their efforts throughout consultation. That brings a four-year journey to near 2018-19. completion. Our Strategic Planning team have done a mighty job preparing not only the Draft Plan and Best wishes Strategic Framework, but also a whole host of additional reference material to help guide residents through the arcane maze of the planning scheme. On the planning assessment front, Council assessed Tony Wellington 479 development applications. Only 20 were refused – Mayor of Noosa meaning 96% of all development applications that were submitted to Council were approved. Throughout the financial year, a range of activities were undertaken to help propel us towards our 2026 zero emissions target including installing over 1,100 solar panels. All of these actions will generate long-term cost savings for Council and our ratepayers. “...propel us towards our 2026 zero emissions target” A couple of stakeholder reference groups were also established. The most innovative of these was the Sustainable Tourism Stakeholder Reference Group, consisting of representatives from key business, resident and environment groups along with Tourism Noosa and Council. I am not aware of any previous attempt by Noosa Council to gather so many community groups to grapple with such a big issue. It is hoped that this reference group will provide advice to Council on what sustainable tourism should look like for Noosa, and perhaps how we may reach that lofty goal. Of course, this introduction really just skims across the highlights of an exceptionally productive year for Noosa Council. I believe this Council continues to set a high benchmark for excellent management and service delivery which is what our community expects and deserves. Noosa Council 2018/2019 Annual Report Page 7
Section 8
Message from the
CEO
Welcome to the 2018/19 Annual Report.
As we all know, annual reports can be quite bland as
they contain quite a lot of statutory and corporate type
information and, of course, not forgetting a set of audited
financial statements. As such, they are not generally
interesting reading for most people but I would urge you
to take the time to review this annual report because it is
one that we are very proud of.
As well as demonstrating the necessary compliance and
provision of statutory information, more importantly it
highlights what has been achieved in the last 12 months. “.. put in place a
In particular, the section on “The Year in Review”
highlights our progress towards achieving our long-term
process to preserve
goals is a great read.
2,400 hectares of
In his introduction, Mayor Tony Wellington has
highlighted some of his favourite projects and outcomes land”
of the last 12 months. Even a quick read of our “Top 10 Similarly, the Noosa Heads Boardwalk opened to
achievements” will give you a good understanding of the widespread community acclaim with people amazed at
range of things that have been achieved in the 2018/19 the quality and “Noosa style” of the construction. That’s
financial year. not surprising given that careful planning and design
When we start major projects winning awards is not took place over a number of years to make sure we got
something that is on our mind but it is certainly nice this perfect.
when it happens. There is something very satisfying Working closely with an excellent contractor with some
when you get recognition from industry experts about construction parameters requiring 1 mm tolerances, the
the quality of your projects and we have had some new boardwalk opened just in time for the 2018 triathlon
welcome recognition recently. weekend. It has gone on to win a national landscaping
The ground breaking Yurol/Ringtail Conservation award for Council and two master builder awards for our
Project has won both a Queensland Local Government contractor Hutchinson Builders.
Managers Award for Excellence in Collaboration and For those that have walked the boardwalk, particularly
has then gone on to win a National Local Government on sunset, it is a classic Noosa project that has the ‘wow’
Professionals Award for Excellence in Collaboration for factor because it blends in with nature and is a great
the best project of its type in Australia. example of our Noosa Design Principles.
This long-term conservation project bought together These are just two of the amazing projects which are
five different parties to collaboratively work towards highlighted in this annual report.
a regional scale conservation project to create koala
corridors and put in place a process to preserve 2,400 Given that we are now five years into our journey
ha of land for the Noosa conservation estate. following de-amalgamation, it is also really pleasing to
report that sound financial management over that period
has enabled our Council to make an extra $10,000,000
Noosa Council | 2018/2019 Annual Report Page 8
Section 9
payment off our debt. This is a bit like saving up extra money on the home budget and then paying down your mortgage ahead of time. It’s hard work but has great benefits in the long term. That’s one of the things about this Council - it always takes a long-term view. The Noosa community is incredibly lucky that it has such wonderful staff working for its local Council. These are staff that every day patch potholes, help people at the library, work with local businesses on the local economic plan, keep our parks and public spaces looking great, help our elderly at our Noosa Community Care Centre – the list goes on. Our staff have passion and the opportunity to make a difference every day to the community that we live in and serve. It’s more than just a job for our staff. You might not know that they also volunteer in our community with some staff giving up lunch breaks to help with Meals on Wheels deliveries, other staff volunteering at the Community Hub to support homeless people, other staff helping to raise funds for breast cancer – the list goes on. Many of our staff are also embedded in Noosa community groups, volunteering on local committees and helping out at a grass root level. It’s that passion to make a difference that separates our Council staff from many “public sector” staff working in other levels of government. We are lucky to have this level of commitment and I would like to publicly thank each and every one of our Council staff for their commitment and dedication. Please enjoy reading this annual report. We are very proud of it and what has been achieved. Brett de Chastel Chief Executive Officer Noosa Council 2018/2019 Annual Report Page 9
Section 10
Councillors Noosa Shire is represented by the Mayor and six Councillors who were elected at the Local Government elections in April 2016. Our Councillors represent all areas of the Shire as Noosa is an undivided local government area. From left to right: Cr Frank Pardon, Cr Joe Jursevic, Cr Brian Stockwell, Mayor Tony Wellington, Cr Ingrid Jackson, Cr Jess Glasgow and Cr Frank Wilkie (Deputy Mayor). Noosa Council 2018/2019 Annual Report Page 10
Section 11
Our
Organisation
Noosa Council | 2018/2019 Annual Report Page 11
Section 12
About Council
The Noosa Shire Council was created in 1910 under the The current Noosa Council was elected in 2016, and comprises
Queensland Local Authorities Act of 1902. 7 elected Councillors, including the Mayor.
In 2008, the Shire was amalgamated with Maroochy Shire and The next council elections will be held in March 2020.
Caloundra City Councils to form the Sunshine Coast Regional
Council.
Noosa Council was re-established as a local government on
1 January 2014 after the Noosa community campaigned for a
number of years to restore its own local government.
Organisation structure
CEO’s Office Chief Executive Officer Internal Audit
Infrastructure Executive Environment and Community Corporate
Services Services Sustainable Development Services Services
• Infrastructure Planning, • People & Culture • Economic Development • Comm Development • Financial Services
Design & Delivery • Governance • Building & Plumbing • Comm Facilities Mgmt • Revenue Services
• Asset Mgmt • Customer Service • Strategic Land Use • Libraries & Galleries • ICT
• Buildings & Facilities • Community Planning • Local Laws • Property
• Civil Operations Engagement • Development Assessment • Waste & Env. Health • Procurement & Fleet
• Civil Works Maint. • Environmental Services • Noosa Aquatic Centre
• Civil Operations (Parks • Noosa Comm Support
& Gardens) • Noosa Leisure Centre
• The J & Bicentennial
Hall
Noosa Council | 2018/2019 Annual Report Page 12
Section 13
Year in Review Council’s progress towards achieving them is set out on the
following pages.
Council’s Operational Plan 2018/19 detailed the major
This section of the Annual Report looks at Council’s progress priorities and initiatives that Council undertook to work towards
in achieving the goals set out in its Corporate Plan 2017-2037. the implementation of the Corporate Plan.
Noosa Council adopted its Corporate Plan in January 2017
and more recently, in September 2018, adopted an update to Throughout the year, the CEO provided Council with quarterly
that document. reports looking at progress of the Operational Plan and details
of Key Performance Indicators. The CEO also provided a
The Corporate Plan sets out Council’s long term strategies separate report at the end of the financial year to Council on
and priorities. It also sets out Council’s values and vision - the progress towards achieving the Corporate Plan outcomes.
“Noosa Shire - different by nature”. Both the quarterly and annual reports to Council are made
available to the public via Council’s website.
The Corporate Plan identifies five themes, a series of long
term goals and key focus areas for 2017-2022.
Park Road Boardwalk, Noosa Heads
Noosa Council | 2018/2019 Annual Report Page 13
Section 14
Top ten highlights of 2018/19 (in no particular order)
Signing of the Yurol/Ringtail Conservation Project c ontracts to create a
significant koala protection area in the long term (this project won both the
Queensland and Australian Local Government Awards for Excellence in
Collaboration).
Undertaking the drafting, State Interest Check and an extensive public
consultation process for the draft Noosa Planning Scheme.
Implementing the Go Noosa Transport Strategy which included a 40%
increase in users of the free bus service.
Opening the Noosa Heads Boardwalk project to significant acclaim (this
project won an Australian Institute of Horticulture Green Space Award).
Adopting the Noosa Environment Strategy and Action Plan after an extensive
community engagement process.
Noosa Council 2018/2019 Annual Report Page 14
Section 15
Re-opening the Noosaville Library after a major refurbishment and extension
including the introduction of RFID technology and a new Makerspace area.
Finalising asset management plans for all of our major asset classes to
improve how we manage these assets on behalf of the community.
Official opening of the Peregian Beach Digital Hub and a successful launch of
innovative programs to grow the digital economy.
Undertaking our two yearly Community Satisfaction Survey, measuring the
overall weighted performance index of satisfaction with Council as 74.59% (up
from 73.20% in 2017).
Finalising a liquidity review by Queensland Treasury Corporation which
resulted in an early payment of $10 million off Council’s debt.
Noosa Council 2018/2019 Annual Report Page 15
Section 16
Corporate Plan Theme 1 - The Noosa Environment
“Our environment is protected and enhanced and is valued by the community”
Key achievements as we work towards our long term goal »» Council has successfully prepared for the introduction
include: of the State government $75 per tonne landfill levy that
commenced on 1 July 2019.
Specific Operational Plan Priorities »» Council signed binding contracts with the State
»» Council finalised an extensive consultation process government, HQPlantations and the Noosa Parks
in relation to its proposed Environment Strategy and Association for the protection and restoration of major
adopted a new Environment Strategy and Action Plan. parts of the Yurol and Ringtail Forest areas. This is
the most significant environmental project in recent
»» Council consulted with the community on a first draft years and will see almost 2,400 ha of land transition to
of the Noosa River Management Plan. Based on that protected conservation tenure over the next 10 years
feedback, further work was undertaken in relation to providing regional scale environmental connectivity,
fisheries. Council has finalised that additional research particularly for koala corridors. This project has also
and will consult further with the community on the won both a State and National Local Government
second draft of the Noosa River Management Plan. Award for Excellence in Collaboration.
Council has also made a submission to the State
Government of their fisheries reform program. Other initiatives to enable Council to achieve its goal for
»» Work on our Waste Reduction and Recycling Plan has this theme
continued in 2018/19. This included significant media »» Council provided ongoing support to the Boomerang
coverage and school education sessions. Council also Alliance in their campaign for a Plastic Free Noosa.
opened its Education Centre at the Eumundi Road
Resource Recovery Centre to support the education »» Council is continuing to implement its Zero Emissions
and behavior change of students and community Strategy focused on achieving net zero emissions by
members regarding waste management, re-use and 2026. Council has rolled out the installation of over
recycling. 1,100 solar panels across major Council buildings.
Other energy efficiency initiatives have included
retrofitting light fittings and these actions have already
reduced Council’s emissions and significantly reduced
electricity costs. Solar has been installed at the
following locations:
• Tewantin Administration building
• Noosaville Depot
• Noosa Leisure Centre
• Pomona Depot
• Cooroy Library
• Noosa Aquatic Centre
• The J
• The Respite Centre
Waste reduction school education session
Noosa Council | 2018/2019 Annual Report Page 16
Section 17
»» Council launched its Environment Grants program Council adopted Policy Guidelines for Conservation
allocating funds towards community projects that Land and Private Land Conservation Partnerships
protect and enhance the Noosa environment. This and Revolving Fund Guidelines in September 2018.
entailed project grants for community organisations
such as Noosa and District Landcare Inc, Mary »» Council assisted in facilitating the 10 year
River Catchment Co-ordination Association Inc, renewal process for the Noosa Biosphere
Zero Emissions Noosa Inc and Reef Check Australia Reserve recognition from UNESCO. A detailed
Foundation. Partnership funding was also provided and comprehensive submission was lodged
to Noosa and District Landcare Inc and Noosa with UNESCO via the federal government. This
Integrated Catchment Association Inc. submission received positive feedback from the
relevant UNESCO committees and Council is
»» Council installed lateral gas lines at Eumundi awaiting formal advice following that process.
Road Resource Recovery Centre to improve the
capture of methane gas for flaring and reducing the »» Council passed a resolution declaring Noosa a “Coal
environmental impacts of methane gas. Mining and Coal Seam Gas Extraction Free Shire” to
make it clear that these activities are not in keeping
»» Council agreed to enter into a partnership agreement with Noosa’s environmental values.
with The Nature Conservancy (a major environmental
organisation) to undertake a three year project to »» Council has addressed a range of significant
restore oyster reefs in the Noosa River. This included planning and environment applications during the
funding from The Nature Conservancy of $1.2M with last 12 months. During that period, Council approved
that funding being matched by Council’s financial 95.8% of these applications (459 out of 479
contribution. applications were approved).
»» Council agreed to enter into a Memorandum of
Understanding with Unitywater, Sunshine Coast
Regional Council and Moreton Bay Regional Council
to explore options for an organic waste processing
facility in the region. The project is ongoing with
options currently being considered by the project
partners.
»» Council undertook an inspection program for
environmental compliance at industrial premises with
good support from business owners. Council decided
to undertake annual inspections in future years with
no financial impost on businesses for the 2019/20
financial year.
»» Council increased the number of properties
participating in the Land for Wildlife program from
288 to 314. Council also facilitated a number of
events to help celebrate the 20th anniversary of the
Land for Wildlife program.
»» Council expanded the Bushcare program with new
volunteer groups being commenced at Rainbow
Park, Elysium and Cooran Fodder Farm - the first
new Bushcare groups for many years. Oyster Reef Project in the Noosa River
»» Council purchased a 51 ha property at Boreen Point
through the Environment Levy program to add to
the protected environment estate. To support our
acquisition and environmental protection program,
Noosa Council 2018/2019 Annual Report Page 17
Section 18
Corporate Plan Theme 2 - The Noosa Community
“Our community is connected, safe and happy and able to meet their potential”
Key achievements as we work towards our long term goal »» Council completed a $2.2M extension and
include: refurbishment of the Noosaville Library. Radio
Frequency Identification (RFID) was installed as part
Specific Operational Plan Priorities of this process and the extension included a new
Makerspace area and Heritage Library Room. The
»» Council adopted a Cultural Plan and Action Plan in Makerspace includes 3D printers, robotics and virtual
December 2018 which is currently being implemented. reality “hands on” activities.
»» Council developed a draft Community Health and »» Council has implemented the Sport and Active
Wellbeing Plan following an extensive community Recreation Action Plan. This has included activities
engagement process. The plan will be adopted by such as the “Come and Try sports days”, “Get out,
Council in 2019/20, together with an implementation Get Active Teenagers” and supporting the successful
plan. World Surfing Reserve application. In conjunction with
Sunshine Coast Regional Council, Gympie Regional
»» Council continued to invest in the maintenance of our Council and the State government, our Council also
community halls and facilities. We undertook periodic adopted the “Regional Difficult to Locate Sports Plan”.
painting of various community halls including the This plan identified the ideal location across the
Tinbeerwah Hall. We also undertook some upgrades broader region for high noise impact sports.
of community facilities including upgrading the air-
conditioning and electrical systems at the Pomona »» Council opened the Park Road Boardwalk following
Community House. an extensive community engagement process. The
construction was undertaken by Hutchinson Builders
and opened in late October 2018 just prior to the
Noosa Triathlon weekend to significant community
acclaim. This project has won Council an Australian
Institute of Horticulture Green Space Award. Our
contractor also won two Master Builders Association
Awards for this project.
Other initiatives to enable Council to achieve its goal for
this theme
»» Council launched and operated, in conjunction with
a range of community partners, the Social Services
Hub at Tait Duke House, Tewantin. The Hub serves
Tinbeerwah Hall as a one stop shop for a range of services for people
experiencing homelessness or who are at risk of
»» Council has undertaken significant planning and homelessness, and for community members who may
design for the establishment of an iconic playground face barriers to accessing social services.
at Cooroy. This has included community consultation
on the plan. Council was also successful in securing »» Council continues to focus on recognising the
$2.788M in funding from the State government important role of volunteers in our community. A
towards the project. Construction will commence in series of videos were produced highlighting examples
2019/20. of the work undertaken by volunteers and a “volunteer
recognition” event was hosted by Council.
Noosa Council 2018/2019 Annual Report Page 18
Section 19
»» Council passed a resolution in November 2018 »» Council has reviewed and updated its Community
declaring Noosa as a Refugee Welcome Zone and Engagement Policy. Significant community
signed the Refugee Council of Australia’s Refugee engagement projects in 2018/19 included:
Welcome Zone Declaration. • The draft Noosa Planning Scheme
»» Council has been active in supporting the local • Proposal for a local law on advertising signage
communities who have been affected by proposals for • Events Policy
the new Sunshine Coast Airport flight paths. Council • Environment Strategy
has worked closely with Flight Path Forum Inc. as
• Draft Noosa River Plan
part of the community based campaign to review
the proposed flight paths and improve the level of • Pioneer Park Upgrade at Cooran
community engagement by Airservices Australia as • Hinterland Park at Cooroy.
part of that process.
»» Council has undertaken numerous Library and Gallery
»» There has been significant progress on the programs to support our community. Our Library
backlog of community lease renewals. Following Services have physically issued over 437,982 items to
deamalgamation, we inherited more than 28 expired our community during the last 12 months.
leases and had quite a number of other community
groups with no formal tenure arrangements. By 30 »» Our Noosa Aquatic Centre, Noosa Leisure Centre and
June 2019, there were no community groups without The J all had outstanding years. In terms of numbers,
tenure arrangements in place and only 5 leases still the NAC had 240,893 visits which is just under last
awaiting renewal. year’s number of visits, however the NAC closed in
June 2019 for major scheduled maintenance of the
»» Council undertook an Expression of Interest process pool, roof and deck structures. The Noosa Leisure
for the upstairs section of the Peregian Beach Surf Centre had 127,580 visits which is up 19.9% on last
Lifesaving Club building which generated significant year but some of that increase can be attributed
public interest. Following that expression of interest to extra visitors to the temporary library while the
process, Council agreed to issue a 3 year trustee Noosaville Library refurbishment was underway. The
permit to Surf Lifesaving Queensland Sunshine Coast J had 90,992 visits which is up nearly 4% on the
Branch. previous year.
»» Council has undertaken two community Council »» Council took the lead on lobbying for reform to how
meetings during 2018/19. In November 2018, we electronic gaming machine approvals are managed
held a Council meeting at Pomona and in May in Queensland. Council was successful in gaining
2019, we held a Council meeting at Cooran. This support for the Local Government Association of
continues Council’s ongoing commitment to open Queensland to lobby on behalf of Queensland councils
decision making and provides an opportunity for for legislative reform. Council also joined the Gambling
more members of the public to attend Council Alliance Reform Group – a group of like-minded
meetings. In keeping with our ongoing commitment councils across Australia lobbying for policy changes
to transparency to the community, during the year we that would reduce the negative impact of gaming
only closed Council meetings on two occasions to machines on local communities.
deal with confidential matters. Council also improved
our community’s access to Council meetings by »» Council continued to provide its community grant
instituting live streaming of Council meetings and our program supporting our community groups. During
General Committee meeting from February 2019. 2018/19, we provided $893,406 in community grants
These videos are also available on Council’s YouTube to 147 recipients to support projects, acquisition of
channel for later viewing. equipment or events. Council staff also facilitated a
number of evening information sessions for community
»» Council completed a detailed review of an Events organisations to help improve their governance and
Policy for our Shire. This included an extensive grant writing skills. Details of the grant categories and
community engagement process which culminated in amounts are set out in this annual report.
the adoption of Noosa Events Policy which is designed
to provide clarity about the number and location of
annual events.
Noosa Council | 2018/2019 Annual Report Page 19
Section 20
Corporate Plan Theme 3 - The Noosa Economy
“Our economy is diverse and resilient”
Key achievements as we work towards our long term »» Council and Tourism Noosa worked together on
goal include: the Sustainable Tourism Stakeholder Reference
Group. This brings together approximately 15
Specific Operational Plan Priorities different groups from the business, community
and environmental sectors to consider challenges
»» The Peregian Beach Digital Hub was officially associated with how Noosa can manage the
opened on 12 September 2018. In its first year of success it has achieved in becoming a premier
operation, it has exceeded the proposed budget tourism destination with increased visitation. The
performance and has a solid tenant and co-worker Sustainable Tourism Stakeholder Reference Group
base. Council has an excellent Digital Hub Director is continuing to meet to work towards an Accord and
who has curated an interesting and industry relevant Action Plan.
Peregian Beach Digital Hub
Other initiatives to enable Council to achieve its goal for
series of programs to grow the digital sector in this theme
Noosa. Council has also received a $75,000 State
Government Grant to continue to grow the program »» Council continued to work closely with Regional
component at the Hub. Development Australia (Sunshine Coast) on a range
of projects including the successful SCRIPT program
»» Council continued to successfully implement its to develop innovation on the Sunshine Coast.
Local Economic Plan. Unemployment rates in
Noosa continue to be below other areas – Noosa »» Council facilitated the establishment of the Noosa
5.7%, compared to the balance of the Sunshine Education and Training Alliance – an alliance
Coast, 6.3% and Queensland, 6.1%. Over 80% of with representatives from all of the schools,
the initiatives in the Local Economic Plan adopted universities and training providers in Noosa
in 2015 have been implemented or are substantially working collaboratively to advance education and
underway. training opportunities and pathways for the Noosa
community.
Noosa Council | 2018/2019 Annual Report Page 20
Section 21
»» Council has been negotiating with the State government »» Council continued an audit of business signage across
regarding the acquisition of the former TAFE site at the shire and also provided information regarding signage
Tewantin. These negotiations include Council making an requirements to the operators while the audit was being
offer to the State government to purchase the site but undertaken. Council has also undertaken community
no contract had been signed by the end of the 2019/20 consultation on proposed new signage laws.
financial year.
»» Council invested in our Noosa River Holiday Park by
replacing both the large and small amenity buildings. This
continues to make this holiday park a highly attractive
destination with almost 96% occupancy rates for 2018/19.
»» Council staff worked closely with the Noosa Junction
Association throughout 2018/19 assisting them with the
implementation of their plan to regenerate the Junction. A
number of joint meetings were facilitated with stakeholders
regarding the draft planning scheme.
Business signage audit
»» Council introduced improved CCTV cameras in Hastings
Street to ensure that our premier commercial precinct »» Council co-located the Economic Development Branch
remains a safe and welcoming area. The CCTV system with the Council’s Strategic Planning Branch to ensure
included high definition cameras and number plate that there was synergy between our goals for our Local
recognition technology. Economic Plan and the development of our new planning
scheme.
»» Council continued its economic grants program with
grants provided to Innovate Noosa Inc, the Noosa
Chamber of Commerce and Industry Inc and the Sunshine
Coast Creative Alliance.
»» Council has increased the resources allocated to
economic development activities with additional staff
including a trainee and support to the Noosa Education
and Training Alliance and also an Economic Development
trainee.
Launch of CCTV cameras in Hastings St.
Noosa Council | 2018/2019 Annual Report Page 21
Section 22
Corporate Plan Theme 4: Long term planning for Noosa Shire
“Noosa Shire is well managed and sustainable”
Key achievements as we work towards our long term • An increase of 40% for people using free buses,
goal include: an increase of 7% for people walking to the
Hastings Street precinct an increase of 27% for
people riding to the Hastings Street precinct but
Specific Operational Plan Priorities only a 2% decrease in the use of private vehicles.
»» Council undertook significant work on the • Council also engaged with Translink on a
development of the new Planning Scheme during comprehensive review of the public transport
network in Noosa including bus routes, bus
2018/19. The State Interest Review was completed frequency and opportunities for electric buses.
and a draft scheme was adopted for the purpose of
community engagement. An extensive community
engagement process was undertaken including:
• TV, newspaper and social media advertising
• Community pop ups across the Shire
• Over 2,000 people attending Council’s planning
scheme office for face to face information
• Over 10,000 letters and emails sent to affected
property owners
• Targeted consultation with key community,
environment and business groups
• 938 unique submissions to Council on the draft
Planning Scheme.
»» Council also finalised its Local Government
Infrastructure Plan (LGIP) that provides the basis
for developers to contribute to trunk community
infrastructure necessitated by the development.
»» Council finalised a tender process in June 2019 to
»» Council continued implementation of its Transport commence a major re-development of the Noosa
Policy and Transport Strategy. For the Christmas North Shore Campground. This re-development will
period in 2018/19, Council introduced the “Go be finalised during the second half of 2019 and be
Noosa” campaign - an integrated transport project opened in time for Christmas 2019.
aimed at behaviour change to encourage more
»» Council finalised the adoption of its detailed Asset
people to walk, ride or use public transport rather
Management Plans for all of its major asset classes.
than private vehicles. The “Go Noosa” campaign
To date, detailed asset management plans have
included:-
been adopted for Roads, Bridges, Stormwater,
• development of a Go Noosa App providing real- Roads Infrastructure and Council Buildings &
time information on car parking availability, cycling Facilities. Detailed asset management plans were
and walking paths and real-time bus information
also previously completed for the Noosa Main Beach
• improved signage and directional information to Sand Recycling System and the Noosa Aquatic
encourage people to park and ride Centre.
• an integrated marketing campaign with Translink
to promote the use of free buses »» Council is continuing the development of a Climate
Change Adaption Plan for the Shire and a Coastal
• free buses were extended from 4 weeks to 12 Hazard Adaption Plan which focuses particularly
weeks at Christmas and for 4 weeks at Easter
on coastal areas. This project (being funded by the
2019.
State via LGAQ) is progressing well. Research and
community engagement has been undertaken.
Noosa Council | 2018/2019 Annual Report Page 22
Section 23
Other initiatives to enable Council to achieve its goal for this
theme
»» Council commenced the Noosa Spit Shoreline Erosion
»» Council completed a credit review by Queensland Management Plan (SEMP) which is a detailed study
Treasury Corporation and was rated as financially sound of the erosion occurring on Noosa Spit as a result of
which means we have adequate capacity to meet our river movement, tide and boat wash. The SEMP will
financial commitments in the short, medium and long be finalised early in 2019/20 and provide an evidence-
term. based solution for solving the erosion problem currently
occurring.
»» Council also had Queensland Treasury Corporation
undertake a review of our financial liquidity which »» Council developed its first 10 year Capital Program
resulted in Council making an early repayment of allowing for a longer planning horizon for capital
$10,000,000 off our existing debt and reducing net projects. Our Infrastructure Planning, Design and
interest payments by approx. $270,000 for ratepayers. Delivery team now have future projects they can plan
for. In addition, our teams delivered a significant capital
»» Council enhanced its approach to seeking grant program of $26.1m including:
funding from other levels of government. In 2018/19,
• Noosaville Library Refurbishment
we were successful in attracting $1.2M in funding
from the Commonwealth towards the replacement • Mary River Road Bridge at Cooroy
of two bridges in the hinterland and a $2.6M grant • Old Noosa Road Bridge at Cooran
from the Commonwealth towards the Peregian Beach • Noosa Heads Boardwalk
Community Centre. We were also successful in
• $3.8M expended on a reseal program of roads
attracting $2.8M funding from the State government across the Shire
towards the Hinterland Playground project at Cooroy.
• Replacement of the Tewantin Council Administration
»» Council has undertaken considerable work in developing Building roof (including installation of solar panels)
our response to natural disasters including undertaking • David Low Way safety improvements including
disaster management exercises to train our staff. Our the car park and bus stops at Castaways Beach
long serving Local Disaster Co-ordinator stepped down (commenced in 2018/19)
from that role and our Director Infrastructure Services • Major refurbishment of the Noosa Aquatic Centre at
has assumed that role. We have taken part in region Sunrise Beach (commenced in 2018/19)
wide disaster management training exercises with »» Council was successful in securing Commonwealth
adjoining Councils. There has also been a concerted government grant funding to replace a number of
focus on developing our preparedness for a sustained bridges. In 2018/19, we finalised replacement of the
recovery effort from a major natural disaster. Mary River Road Bridge in Cooroy and the Noosa Road
Bridge in Cooran. We were also successful in 2018/19
in obtaining grants to replace the Tablelands Road
Bridge (Number 2) at Cooran and the Wahpunga Lane
Bridge at Kin Kin. Both of these bridges will be replaced
in 2019/20. We also received funding to replace the
aging bridge at Orealla Crescent, Sunrise Beach and
this work will also be undertaken in 2019/20.
»» As part of the planning scheme process, Council
reviewed the current approach to signage in the Shire
and published, for public consultation, a proposal to
remove signage regulation from the planning scheme
and for it to be included in a local law. That local law
also included proposed changes to the way in which
Local Disaster traiining exercise with Gympie Council signage is currently managed. There was considerable
public interest in this issue during the consultation
process, with around 300 submissions received and
considered prior to finalising the local law.
Noosa Council | 2018/2019 Annual Report Page 23
Section 24
Corporate Plan Theme 5 - Excellence as a Council
“The Noosa Shire community is proud of its Council”
Key achievements as we work towards our long term »» Council undertook our second detailed Community
goal include: Satisfaction Survey. The Survey was undertaken
by an independent professional survey firm (Market
Specific Operational Plan Priorities Facts) using the same methodology as the 2017
Community Satisfaction Survey. The results of the
»» Council continued to look at ways in which it can 2019 survey identified that Council was achieving
improve services. One of the most important steps a community satisfaction score significantly
last year was the development of a Level of Service above comparable Councils in almost all service
Catalogue which was substantially completed as categories.
part of the 2018/19 budget process with further
• Council’s overall weighted performance index
enhancements for the 2019/20 budget process.
was 74.59% (up from 73.20% in 2017).
Council now has documented service details of
what services it provides, costs, response times and • Top performing services were Libraries (84.9%),
benchmarking. The Level of Service Catalogue is Waste management (81.5%), and Customer
available on Council’s website. Service (81%).
»» Council completed the replacement of the Tewantin • Three quarters of those surveyed who had
contacted Council rated the service of staff as
Council administration building roof which included good or very good.
the installation of a significant number of solar
panels. Long-term precinct planning will be »» Council has undertaken a review of its
undertaken in 2019/20. Communications and Engagement Strategy.
This has entailed internal consultation and the
development of a new draft strategy.
»» The revenue diversification project has commenced
looking at options to increase non rate revenue in
order to reduce pressure on any future rates rises.
An internal working group has been established
which is working on a strategy and project plan.
Other initiatives to enable Council to achieve its goal for
this theme
»» Council’s corporate website has started the
transition to a new content management system.
Solar installation at Tewantin administration building The Community Engagement team has collaborated
with the LGAQ to finalise a new-look for the
»» We transitioned our ICT systems to the latest website.
version which provided enhanced systems
capability. These systems upgrades included the »» Council has increased its presence on and use of
implementation of Technology One’s “Enterprise social media platforms, to improve communication
Cash Receipting” and “Procure to Pay”. We and engagement with the wider community. A more
continue to roll out our ICT Strategy to enhance targetted approach to social media engagement on
our system capabilities and we have commenced Facebook and Linkedin has been taken. Facebook
a major project to transition our property and rating followers increased by 18% to 8,923. Linkedin
system. This project will add significant benefits to followers grew by 55% to 2,022.
our community with more online services.
Noosa Council | 2018/2019 Annual Report Page 24
Section 25
»» The transformation of our Workplace Health and »» Over the last 12 months we have implemented
Safety performance has continued. Our most recent several projects that contribute to the culture and
internal audit of our WH&S Systems achieved a performance of Council. These include:
score of 80% (up from 19% five years ago). We • Domestic and Family Violence awareness training
have transitioned from one of the worst performing supported by a DFV strategy to support staff
local governments to one of the best performing local affected.
governments for our size.
• Drug and Alcohol testing in the workplace to
»» We have had another successful financial year. improve worker safety as well as helping those
staff who may have an issue with their use of
Revenues were above budget and expenses were drugs or alcohol.
below budget. The audited financial statements are
part of this annual report. • Noosa Regional school partnerships where
Council provides in school workshops for job
»» Our Customer Service team continued to provide interviews and job readiness.
exemplary service at the front line. This was • Under 30’s employee engagement program which
recognised in the Community Satisfaction Survey aims to reduce turnover of young employees and
with feedback from our community. provide professional development and career
guidance.
»» The Audit and Risk Committee has continued to
add value to our compliance and performance
for governance and finance. This has included
an oversight of our strategic risks, review of key
governance and financial policies, review of
organisational KPIs and development of Business
Continuity Planning etc. Our two external members
of the Audit and Risk Committee in particular have
added significantly to our overall governance
practices. Although not high profile, this Committee
plays an important role in making sure that Council
“dots the I’s and crosses the T’s” both in governance
and in the management of risk. Council’s Internal
Audit Plan included internal audits on:
• overtime;
• business continuity plans; and
• risk management strategies.
Customer Service staff providing frontline service
»» ICT network switch infrastructure replacement was
»» Council has successfully achieved another
undertaken providing greater network security which
unmodified audit from the Queensland Audit Office
improved our ability to monitor network system faults
with the 2018/19 financial statements being signed
more easily.
off by the QAO.
»» Significant training and development was undertaken
»» Our enterprise risk management has been further
for our middle managers with programs focused on
developed with risk management practices being
team leaders and supervisors. We also undertook
further embedded into Council operations. Our
leadership development for our Leadership Group
comprehensive Business Continuity Plans are now
(our top 25 leaders).
complete and were tested successfully as well as
being subject to an internal audit review which found
that the BCP Plans were excellent.
Noosa Council | 2018/2019 Annual Report Page 25
Section 26
As well as the specific projects that are undertaken by Council to achieve our long-term corporate plan goals, every day,
the Council is delivering on the ground services to our community across a range of different activities. To put the level of
‘day to day’ activities into perspective, the following statistics are provided:
Example of Services Provided in 2018/19 Data
Number of visitors to the Noosa Aquatic Centre 240,893
Number of visitors to The J 90,992
Number of visitors to the Noosa Leisure Centre 127,580
Number of clients serviced at Noosa Community Support 2,201 clients (43,287 hours of service
delivered)
Number of physical items issued by our Libraries Noosaville: 205,236
Noosa Civic (temporary): 55,106
(note Noosaville Library was partially closed for refurbishment in this
Cooroy: 138,305
period)
Mobile: 39,335
Total – 437,982
Number of bins collections 1,584,672 general waste bins
671,093 recycling bins
400,543 garden bins
157,036 public place bins
44,666 waste bulk bins
17,519 recycling bulk bins
Number of customer visits to the Waste Disposal facilities 132,732
Number of calls/ enquiries/ transactions by our frontline customer 99,854
service team
Number of development applications and percentage approved for the 479 applications
year 95.8% approved
20 refusals
(includes tree removal applications on
private land)
Number of rate notices issued for the year 63,799
Length of road resurfaced Asphalt – 6.9km
Spray sealing – 10.4km
Total – 17.3km
Length of road serviced by street sweeper 8,434 km
Number of requests regarding trees on public land (note figure excludes 1,827
Natural Areas requests)
Noosa Council | 2018/2019 Annual Report Page 26
Section 27
Reportable
Disclosures
Noosa Food and Wine Festival 2019
Noosa Council | 2018/2019 Annual Report Page 27
Section 28
Information relating to Councillors
Remuneration
Councillor remuneration is set by the Local Government • Any contribution a local government makes for a
Remuneration and Discipline Tribunal established under Councillor to a voluntary superannuation scheme for
Councillors established or taken part in by the local
the Local Government Act 2009 (“LG Act”). The Tribunal government under section 226 of the LG Act.
determines remuneration for Mayors, Deputy Mayors
and Councillors and releases a report in December each The LG Act does however allow a local government to take
year which establishes single remuneration levels for the part in a superannuation scheme for its Councillors and
following year. on 20 January 2014 Council authorised the payment of
superannuation contributions for Councillors of up to 12%
The Local Government Remuneration and Discipline of their annual salary on the condition that Councillors:
Tribunal Report 2017 listed Noosa Council as a Category
3 Council, and prescribed the annual rate of remuneration • Contribute an amount of up to 6% from their salaries
and Council contributes a proportionate amount of
for the Mayor and Councillors for the period 1 July 2018 to
up to 12% to a nominated superannuation fund;
30 June 2019 (the period) as follows:
• Make contributions through an arrangement by way
• Mayor - $127,898; of a formal request to Council; and
• Deputy Mayor - $79,936; and, • Nominate the preferred superannuation fund,
• Councillors - $67,945. and where no nomination has occurred, the
superannuation payments be made to LG Super.
In accordance with section 244(3) of the Local Government
Regulation 2012 (“LG Regulation”), the remuneration An overview of the remuneration paid to Councillors for the
prescribed by the Commission cannot include: period is provided in Table 1.
• Any amount for expenses to be paid or facilities to
be provided to a Councillor of a local government
under its expenses reimbursement policy; or
Table 1 – Councillor Remuneration
Councillor remuneration for period 1 July 2018 to 30 June 2019
Councillor Salary ($) Superannuation*($) Total ($)
Cr Tony Wellington (Mayor) 127,898 15,348 143,246
Cr Frank Wilkie (Deputy Mayor) 79,936 9,592 89,528
Cr Frank Pardon 67,945 8,153 76,098
Cr Jess Glasgow 67,945 8,153 76,098
Cr Ingrid Jackson 67,945 8,153 76,098
Cr Brian Stockwell 67,945 8,153 76,098
Cr Joe Jurisevic 67,945 8,153 76,098
Note: amounts rounded to the nearest dollar value
*Superannuation shown is Council’s 12% contribution
Noosa Council | 2018/2019 Annual Report Page 28
Section 29
Reportable Council resolutions for the period
The table below outlines the reportable resolutions under the LG Regulation for the period.
Table 2 – Reportable Resolutions
Local Government Resolution Adopted
Regulation
Section 250(1) Nil.
Section 250(2) Councillors’ Expenses Reimbursement Policy Update
Council note the report by the Director Executive Services to the Services & Organisation
Committee Meeting dated 9 October 2018 and adopt, pursuant to section 250(2) of the Local
Government Regulation 2012, the Councillors’ Expenses Reimbursement Policy.
(Adopted by Council 18 October 2018)
Section 206(2) Nil.
Note: No resolutions were made during the 2018/19 financial year. Council’s Non-Current Asset
Accounting Policy adopted by Council resolution on 15 June 2017 (effective from 1 July 2016)
includes recognition thresholds for non-current assets.
Councillors’ expenses and resources • Private vehicle usage;
provided • Council vehicle usage;
The Councillors’ Expenses Reimbursement Policy ensures • Hospitality;
Councillors are provided a reasonable level of resources • Administration tools and access to Council office
and equipment in order to carry out their duties in an amenities;
effective and efficient manner.
• Home office and telecommunication needs;
An amendment to the Policy was endorsed by Council on • Safety equipment; and
15 October 2018. The Policy is compliant with the following
• Insurance cover.
principles prescribed by the LG Act:
• Transparent and effective processes and decision-
making in the public interest;
Summary of expenses / reimbursements
• Good governance of, and by, the local government; paid to Councillors for the period
and
• Ethical and legal behaviour of Councillors and local The reimbursements that were made to Councillors for the
government employees. period were for mandatory and discretionary professional
development, hospitality, vehicle use, home office and
Categories of expenses and eligibility for reimbursement as telecommunication, and travel expenses incurred whilst on
per the Policy for the Period include: Council business.
• Mandatory professional development &
representation; For the period, all claimed expenses were processed and
fell within the required limits prescribed by the Councillors’
• Professional development & representation Expenses Reimbursement Policy.
(Mandatory and Discretionary);
• Travel as required to represent Council; A summary of expenses/reimbursements to Councillors for
the period is outlined in Table 3.
• Meals when travelling for Council business;
• Accommodation;
1 Councillors are covered under relevant Council insurance policies while on Council business. Specifically, insurance cover will be provided for public
liability, professional indemnity, Councillors liability and personal accident, and domestic and overseas travel.
Noosa Council | 2018/2019 Annual Report Page 29
Section 30
Table 3 – Councillor Expenses 2018/19
Councillor Mandatory Discretionary Use of private Home Travel TOTAL
Professional Professional vehicle office & tele Expenses ($)
Development Development (option 1) ($) communication as required
($) ($) ($) to represent
Council
Mayor Tony 2,540 - 5,000 3,251 - 10,791
Wellington
Cr Jess Glasgow - - 5,000 2,880 - 7,880
Cr Ingrid Jackson 73 131 5,000 2,880 - 8,084
Cr Joe Jurisevic 2,086 200 5,000 2,880 - 10,166
Cr Frank Pardon - - 5,000 2,880 - 7,880
Cr Brian Stockwell - 35 5,000 2,880 - 7,915
Cr Frank Wilkie 685 2,704 5,000 2,880 - 11,269
Note: amounts are excluding GST and rounded to the nearest whole dollar.
Councillor meeting attendance
Council conducts its business at open public meetings on Council’s YouTube channel with past recordings also
which are part of Council’s commitment to transparent available for viewing on this platform.
decision making and engagement with our community.
Meetings are generally held in the Council Chambers at Generally, all standing committees are held once per
Tewantin. month where a range of issues and recommendations
are made for Council consideration. The attendance of
Since 14 February 2019, Council’s General Committee, Councillors at Ordinary meetings, Special meetings and
Ordinary and Special Meetings have been live streamed Committees for the period is outlined in Table 4.
Table 4 – Council Meeting Attendance 2018/19
Councillor Ordinary General Planning & Services & Special & Audit
Meeting Committee Environment Organisation Budgetary & Risk
Committee Committee Committee
No. of Meetings held 12 12 11 11 7 5
Mayor Tony Wellington 12 11 9 8 7 5
Cr Jess Glasgow 9 9 8 n/a 5 n/a
Cr Ingrid Jackson 11 11 10 n/a 3 n/a
Cr Joe Jurisevic 11 11 n/a 11 5 5
Cr Frank Pardon 11 12 n/a 10 6 n/a
Cr Brian Stockwell 12 12 11 n/a 6 n/a
Cr Frank Wilkie 11 11 2* 10 5 n/a
Notes: N/A indicates that the relevant Councillor is not a representative of the particular committee.
* Councillor Frank Wilkie attended these meetings in his capacity as acting Mayor.
Noosa Council | 2018/2019 Annual Report Page 30
Section 31
Overseas travel The Councillor Code of Conduct Policy originally endorsed
by Council on 13 January 2014 was rescinded and the new
No official overseas travel was undertaken by Councillors or Code of Conduct for Councillors in Queensland was adopted
employees during the period. by Council on 20 December 2018 for the period. The new
Code of Conduct establishes:
Complaints about Councillors • The Local Government principles and values with
which Councillors and Mayors must comply with while
Chapter 5A of the LG Act outlines the requirements for performing their roles as elected representatives;
dealing with the conduct of councillors. In particular, Part • The standards of behaviour expected of
3 prescribes the requirements for local governments for Councillors and Mayors when carrying out their
dealing with inappropriate conduct, misconduct and corrupt roles, responsibilities and obligations as elected
conduct of Councillors so as to ensure that: representatives for their communities; and
• Appropriate standards of conduct and performance • An administrative method for submitting complaints to
are maintained; and the Independent Assessor who assesses complaints
and determines the category of allegation.
• A Councillor who engages in inappropriate,
misconduct or corrupt conduct is disciplined. Table 5 identifies the reportable complaints, orders and
recommendations against Councillors for the period.
Table 5 – Complaints, orders, actions and recommendations against Councillors
Reportable information relating to complaints, orders, actions and recommendations against Number
Councillors for the
period
For the period 1 July 2018 to 2 December 2018 (former legislation):
(a)The total number of the following during the period -
(i) orders and recommendations made under s 180(2) or (4) of the LG Act; and Nil
(ii) orders made under s 181 of the LG Act; and Nil
For the period 3 December 2018 to 30 June 2019 (current legislation):
(b) The total number of the following during the period -
(i) orders made under s 150I(2) of the LG Act; Nil
(ii) orders made under s 150AH(1) of the LG Act; Nil
(iii) decisions, orders and recommendations made under s 150AR(1) of the LG Act; and Nil
For the period 1 July 2018 to 2 December 2018 (former legislation):
(c) each of the following during the period -
(i) the name of each councillor for whom an order or recommendation was made under s180 of the Act Nil
or an order was made under S181 of the LG Act;
(ii) a description of the misconduct or inappropriate conduct engaged in by each of the councillors; Nil
(iii) a summary of the order or recommendation made for each Councillor; and Nil
For the period 3 December 2018 to 30 June 2019 (current legislation):
(i) The name of each councillor for whom a decision, order or recommendation mentioned in paragraph Nil
(b) was made;
(ii) a description of the misconduct or inappropriate conduct engaged in by each of the councillors; Nil
(iii) a summary of the decision, order or recommendation made for each Councillor; and Nil
For the period 1 July 2018 to 2 December 2018 (former legislation):
(d) the number of each of the following during the period -
Noosa Council | 2018/2019 Annual Report Page 31
Section 32
(i) complaints about the conduct or performance of Councillors for which no further action was Nil
taken under s 176C(2) of the LG Act;
(ii) complaints referred to the department’s chief executive under s 176C(3)(a)(i) of the LG Act; Nil
(iii) complaints referred to the mayor under s 176C(3)(a)(ii) or (b)(i) of the LG Act; Nil
(iv) complaints referred to the department’s chief executive under s 176C(4)(a) of the LG Act; Nil
(v) complaints assessed by the chief executive officer as being about corrupt conduct under Nil
the Crime and Corruption Act;
(vi) complaints heard by a regional conduct review panel; Nil
(vii) complaints heard by the tribunal; Nil
(viii) complaints to which s 176C(6) of the LG Act applied. Nil
For the period 3 December 2018 to 30 June 2019 (current legislation):
(e) the number of each of the following during the period -
(i) complaints referred to the assessor under s 150P(2)(a) of the LG Act by the local government; Nil
a councillor of the local government and the chief executive officer of the local government.
(ii) matters, mentioned in s 150P(3) of the LG Act, notified to the Crime and Corruption Commission; Nil
(iii) notices given under s 150R(2) of the LG Act; Nil
(iv) notices given under s 150S(2)(a) of the LG Act; Nil
(v) decisions made under s 150W(a), (b) and (d) of the LG Act; 3
(vi) referral notices accompanied by a recommendation mentioned in s 150AC(3)(a) of the LG Act; Nil
(vii) occasions information was given under s 150AF(4)(a) of the LG Act; Nil
(viii) occasions the local government asked another entity to investigate, under chapter 5A, part 3, Nil
division 5 of the Act for the local government, the suspected inappropriate conduct of a councillor;
and
(ix) applications heard by the conduct tribunal about the alleged misconduct of a councillor. Nil
Executive remuneration
Under section 201 of the LG Act, the annual report of a Table 6 – Executive Remuneration
local government must state the total of all remuneration
packages that were payable during the reporting period Package Band Number of senior
to the senior management of the local government and management
the number of employees in senior management who are employees
being paid each band of remuneration. $100,000 - $200,000 4
$200,001 - $300,000 2
The senior management, of a local government, consists
of the chief executive officer and all senior executive
employees of the local government. A senior executive
employee is an employee who reports directly to the chief
executive officer and whose position would ordinarily
be considered to be a senior position in the corporate
structure.
The total of remuneration packages payable to senior
management during the period was $1,202,091.
The annual package bands for Council’s senior
management team are outlined in table 6.
Noosa Council | 2018/2019 Annual Report Page 32
Section 33
Equal opportunity employment Council’s Administrative Action Complaints Process has been
developed to ensure:
Council is an equal opportunity employer, which is committed
• Complaints are handled in a structured, timely and
to providing equal employment opportunities for its current
professional manner which is fair, objective, consistent,
and prospective employees. Council’s employment practices considerate and respectful of privacy;
are aligned to Queensland’s Anti-Discrimination Act 1991 and
• The community has confidence in Council’s complaint
relevant federal anti-discrimination laws.
handling process;
Council recognises the importance of workforce diversity and • All staff members are aware of their responsibilities
promotes a working environment where people are treated regarding the management of complaints; and
on their merits at every stage of their employment. At Noosa
• Complaints are used to identify problems and to
Council, all employees are encouraged to embrace equity continuously improve the Council’s services.
and diversity at all levels within the organisation. The Noosa
Council Employee Code of Conduct reinforces the standards of Furthermore, Council deals with complaints through a tiered
behaviours required of employees including non-discriminatory system whereby complaints are assessed objectively and may
workplace practices. be allocated as a first level which is managed locally by the
relevant operational level. For non-complex matters, first level
Council will continue to strive to build a workforce and complaints may be capable of resolution at the frontline.
supporting organisational culture that reflects the diversity of the
greater community and is free of all forms of discrimination and Generally, complaints may also be investigated and managed at
harassment. a second level (internal review) once it has progressed through
the first level complaint process and the complainant remains
Administrative Action Complaints dissatisfied.
In accordance with section 187 of the LG Act, Council is Where a complainant remains dissatisfied with the outcome
committed to managing customer feedback and ensuring all of a second level (internal review), they may wish to lodge a
complaints are dealt with in a fair, prompt and confidential complaint with an external agency, such as the Office of the
manner. Council aspires to provide a level of service that does Queensland Ombudsman.
not attract complaints. However, Council acknowledges the
A copy of Council’s Administrative Action Complaints Process is
public’s right to provide feedback on services, including the right
available on Council’s website.
to lodge a complaint about a decision or other action Council
has taken, or failed to take, where considered appropriate to do Table 7 provides a summary of Administrative Action
so. Complaints for the period.
Table 7 – Administrative Action Complaints
Reportable information relating to Administrative Action Complaints Number for the period
(a) The total number of the following during the financial year
(i) Administrative action complaints made to Council; 35
(ii) Administrative action complaints resolved by Council under the complaints 32
management process;
(iii) Administrative action complaints not resolved by Council under the complaints 3
management process; and
(iv) Administrative action complaints under paragraph (a)(iii) that were made in a Nil
previous financial year.
Note: The above statistics relate to formal administrative action complaints, which are distinguished from ‘a request for service’ by members of the public.
An administrative action may include a decision, or a failure to make a decision, a failure to provide a written statement of reasons for a decision, an act, a
failure to do an act, the formulation of a proposal or intention, or the making of a recommendation.
Noosa Council | 2018/2019 Annual Report Page 33
Section 34
Right to Information and Privacy
Right to Information and Privacy gives the community • Right to Information Regulation 2009;
greater access to government information, including • Information Privacy Act 2009; and
from Council, unless contrary to public interest. Council
• Information Privacy Regulation 2009.
processes Right to Information (RTI) and Information
Privacy (IP) access applications in accordance with the Table 8 provides a summary of RTI and IP access
following Queensland legislation: applications for the period.
• Right to Information Act 2009;
Table 8 – Right to Information and Privacy
Reportable information relating Right to Information and Privacy Number for the period
(a)The total number of the following during the financial year -
(i) Right to Information access applications received; 18
(ii) Information Privacy access applications received; Nil
(iii) Pages released under Right to Information; 277
(iv) Pages refused under Right to Information; and 49
(v) Right to Information application fees received. $2,189
Council Registers
Council is required under the LG Regulation to develop and • On-site Sewerage Facility Register
maintain certain registers. A number of these registers are • Local Laws Register
available for public inspection at Council’s Tewantin office
• Regulated Dog Register
or can be viewed on Council’s website.
• Roads Register
Below is a list of the registers kept by Council:
• Instrument of Appointments
• Asset Register
• Noosa Policy Register
• Delegations Register
• Gifts and Benefits Register
• Complaints Register
• Contracts Register
• Claims Register
• Registers of Interests
• General Cost Fees and Commercial Charges
• Asbestos Register
• Engineering and Environment Fees and Charges
• Secondary Employment Register
• Planning and Development Fees and Charges
• Public Interest Disclosure Register
• Building and Plumbing Fees and Charges
• Public Pool License Register
• Other Development Fees and Charges
• Health Licensing Register
• Development Application Register
• Cemetery Register
• Backflow Device Register
Noosa Council | 2018/2019 Annual Report Page 34
Section 35
Audit and Risk Committee • Review compliance with Council policies and
procedures, legislative requirements and
In accordance with Subdivision 2 of the LG Regulation, regulations; and
Council conducts Audit and Risk Committee meetings to • Provide outcomes that will generally improve
promote good corporate governance through the provision practices across Council.
of independent comment, advice and counsel on audit
and risk management issues covering a wide range of Council’s Internal Audit Plan for each financial year is
Council operations and projects. developed having regard to current operational risks
and is reviewed and adopted by the Audit and Risk
In accordance with Council’s Audit and Risk Committee Committee. Council’s internal audits are conducted
Charter, a key duty of the Committee is to provide in accordance with Council’s Internal Audit Terms of
reasonable assurance to Council that its core business Reference and Internal Audit Policy.
goals and objectives are being achieved in an efficient
and economical manner, within an appropriate framework The Internal Audit activities for the period included a
of internal control and risk management. review of the following:
• Business Continuity Framework;
The Audit and Risk Committee comprises of two
Councillor members and two expert independent external • Overtime Management; and
members, who hold a minimum of four formal committee • Risk Management Framework and Practices.
meetings each year. The Audit and Risk Committee
observed the terms of its Charter for the period and The above audits were undertaken by specialist external
conducted an annual assessment of its performance. providers. Council has in place a number of systems and
processes to ensure that recommendations resulting
from its internal audits are appropriately actioned and
Internal Audit implemented into day-to-day operations.
Under section 105 of the LG Act, Council has established
an efficient and effective internal audit function that will Grants
provide independent, objective assurance and appropriate
services designed to add value and improve Council’s Council provides a range of services to assist not-for-profit
operations. (volunteer) organisations to meet community needs.
On 20 December 2018, Council updated and endorsed Council’s grants for the period were managed in
the Internal Audit Policy (previously endorsed in accordance with Council’s Community Grants Policy
November 2014) which provides the framework for the which was endorsed by Council in December 2016 and
conduct of the internal audit function of Council and has Council’s Economic Development Grants Policy which
been endorsed by the Audit and Risk Committee. was endorsed by Council in November 2017.
The Policy seeks to achieve the following outcomes in The Community Grants Policy does not apply to
undertaking the annual audit plan set by the Audit and sponsorships, donations, advertising, naming rights and
Risk Committee: service level agreements. The outcomes of this Policy
include:
• Assess and evaluate Council’s processes,
procedures and internal control environment to • Providing community organisations and individuals
assist with the management of operational risks; (for Regional Arts Development Funds only) with
financial support to meet identified community
• Appraise the relevance, reliability and integrity of needs;
management, business systems, financial and
operating records and reports; • Building community skills and resilience;
• Assist the Chief Executive Officer and Council • Developing and maintaining sustainable community
in the effective discharge of their responsibilities infrastructure;
by providing them with analyses, appraisals,
recommendations and information concerning the • Providing opportunities for community
activities reviewed; organisations to leverage Council’s financial
assistance to obtain funding from other sources;
and
Noosa Council | 2018/2019 Annual Report Page 35
Section 36
• Providing opportunities for community that are appropriately delivered through grants;
organisations to deliver on Council’s strategic
goals and identified key initiatives, such as Noosa • Increased capacity of local groups through
Corporate Plan, Noosa Social Strategy and Local a collaborative approach to environmental
Economic Plan. management; and
• Increased funding directed to environmental
On 21 February 2019, Council endorsed the Environment activities through the opportunities of community
Grants Policy which aims to continue to support and groups/organisations to leverage extra funding or
collaborate with the community to achieve significant resources.
environmental outcomes that align with Council’s key
A total of $893,406 was supplied by Council through
environment strategies and plans.
grants for the period. Table 9 provides a summary of the
The outcomes of this Policy include: grants for the period 1 July 2018 to 30 June 2019.
• Implementation of Council’s key environment
strategies and plans, and the actions within them,
Table 9 - Grants
Grants Recipients Funding Amounts ($)
Community Project Grants
Alliance Française de la Sunshine Coast 1,000.00
Anywhere Theatre Festival Limited 7,500.00
Central Queensland, Wide Bay, Sunshine Coast Primary Healthcare Network 1,000.00
Cooroy Future Group Inc. 3,050.00
Cooroy Pomona Lions Club Inc. 3,000.00
Friends of Noosa Botanic Gardens Inc. 2,250.00
Katie Rose Cottage Hospice Ltd. 5,750.00
Noosa Australian Football Club Inc. 12,075.00
Noosa Chorale Inc. 2,500.00
Noosa District Netball Association 1,600.00
Noosa District Rugby League Football Club Inc. 5,000.00
Noosa District Softball Association Inc. 2,700.00
Noosa International Film Festival Inc. 10,000.00
Noosa Mens Shed Inc. 4,000.00
Noosa Open Studios Inc. 7,000.00
Noosa Outrigger Canoe Club Inc. 3,000.00
Noosa Rainbow Festival auspiced by the Noosaville Business Association Inc. 1,000.00
Noosa Shire Arts and Crafts Association Inc. 2,500.00
Noosa Strade Bianche Association Inc 3,750.00
Noosa Tennis Club Inc. 4,137.00
Pomona & District Community House Inc. 7,769.00
Pomona Arts Inc. 5,000.00
Pomona District Meals on Wheels Inc. 4,550.00
St Vincent de Paul Society Queensland 2,500.00
Sunshine Butterflies Inc. 19,518.00
Sunshine Coast Reconciliation Group Inc. 3,300.00
Sunshine Coast Sports Aviators Inc. 7,500.00
Noosa Council | 2018/2019 Annual Report Page 36
Section 37
Grants Recipients Funding Amounts ($) Tewantin Noosa Cricket Club Inc. 9,640.00 Tewantin Noosa Pony Club Inc. 20,000.00 Tewantin Tennis Club Inc. 20,000.00 The Royal Australian Institute Of Architects 5,000.00 The Scout Association of Australia Queensland Branch Inc. 5,000.00 Veggie Village Community Gardens Inc. 1,314.00 Women Initiating New Directions Organization Inc. (WINDO) 1,000.00 Zero Emissions Noosa Incorporated 5,000.00 United Synergies (repaid) -1,260.00 SUB-TOTAL: 198,643.00 Economic Development Grants Innovate Noosa Inc. 5,000.00 Noosa Chamber of Commerce and Inductry Inc. 3,500.00 Sunshine Coast Creative Alliance 1,995.00 Country Noosa Incorporated (2017/18 repaid) -7,900.00 SUB-TOTAL: 2,595.00 Environment Project Grant Mary River Catchment Coordination Assoc. Inc. 15,650.00 Noosa & District Landcare Group Inc. 25,000.00 Noosa and District Landcare Group Inc. 3,910.00 Reef Check Australia Foundation 24,500.00 Zero Emissions Noosa Inc. 3,875.00 SUB-TOTAL: 72,935.00 Regional Arts Development Fund Mr James Stuchbery-Davis 5,000.00 Ceramic Centre For Excellence Inc. 1,600.00 Dr Amanda Cole 2,540.00 Miss Anna Smith 2,050.00 Mr David Erskine 3,000.00 Ms Angela Dunbavan auspiced by Andrew Veivers 5,000.00 Ms Florence Teillet 3,180.00 Ms Meaghan Shelton 4,906.00 Ms Tess Chodan 2,174.00 Noosa Arts Theatre Inc. 3,000.00 Noosa Junction Association 6,000.00 Noosa Orchestra 2,107.00 Noosa Shire Arts and Crafts Association 1,700.00 Pomona Arts Inc. 3,000.00 Women Initiating New Directions Organisation Inc. (WINDO) 4,690.00 SUB-TOTAL: 49,947.00 Three Year Alliance Agreement Cooroora Historical Society Inc. t/as Noosa Shire Museum 5,151.13 Cooroy Noosa Genealogical and Historical Research Group Inc. 5,151.13 Noosa Council | 2018/2019 Annual Report Page 37
Section 38
Grants Recipients Funding Amounts ($) Country Noosa Incorporated 3,090.00 Noosa Arts Theatre Inc. 7,726.69 Noosa Community District FM Radio Association Inc. 7,726.69 Noosa Community Training Centre Inc. 15,000.00 Pomona Arts Inc. 7,726.69 Sunny Kids Inc. (Formerly ‘Cooroy Family Support Centre’) 5,151.13 Sunshine Butterflies Inc. 7,726.68 The Salvation Army Property Trust 15,968.49 Zero Emissions Noosa Incorporated 5,000.00 SUB-TOTAL: 85,418.63 Three Year Alliance Agreement – Emergency Services Australian Volunteer Coast Guard Association Noosa QF5 10,817.36 Lifeflight Australia Limited 10,809.75 SUB-TOTAL: 21,627.11 Three Year Alliance Agreement – Environment Noosa & District Landcare Group Inc. 15,968.49 Noosa Integrated Catchment Association Inc. 15,968.48 Three Year Alliance Agreement - Environment 7,726.69 SUB-TOTAL: 39,663.66 Three Year Festive Season Event Grant Christian Outreach Centre for Noosa Carols on the River 8,241.80 Cooroy Chamber of Commerce Inc. for Christmas in Cooroy 7,211.60 East Coast Originals for Peregian Beach Christmas Carols 3,608.80 Kin Kin Community Group Inc. for Kin Kin Christmas Tree Event 1,545.35 Lake Cootharaba Sailing Club Inc. for New Years Eve on the Lake 3,090.67 Lions of Cooroy & Pomona Inc. for Pomona Night of Lights 2,472.54 Noosa Marina auspiced by Tewantin Noosa Lions Club for New Years Eve Laser and 5,151.15 Music Show RSL (Qld Branch)Tewantin-Noosa Sub-branch Inc. Annual Gala Christmas Carnival 3,605.80 Tewantin Noosa Lions Club and Noosa Heads Rotary Club for Australia Day 10,302.25 SUB-TOTAL: 45,229.96 Three Year Management and Maintenance Community Halls and Centres Agreement Cooran Memorial School of Arts Inc. 7,396.09 Cooroy Memorial Hall Association Inc. 12,364.35 Federal Memorial Hall Inc. 5,060.04 Kin Kin Community Group Inc. 6,136.04 Peregian Beach Community House Inc. 9,390.51 Pomona & District Community House Inc. 17,567.40 Pomona Memorial School of Arts Inc. 12,565.92 Ridgewood Community Hall Assn Inc. 4,409.36 Rotary Club of Noosa Heads Qld. Inc. for Tait-Duke House 2,575.56 Tinbeerwah Hall Inc. 3,126.74 SUB-TOTAL: 80,592.01 Noosa Council | 2018/2019 Annual Report Page 38
Section 39
Grants Recipients Funding Amounts ($)
Three Year Signature Event – Environment
Mary River Catchment Coordination Assoc Inc. for Noosa Water Festival 8,757.00
SUB-TOTAL: 8,757.00
Three Year Signature Event Agreement
Cooroy Future Group Inc. for Cooroy Fusion Festival 7,212.00
Cooroy Pomona Lions Club Inc. for King of the Mountain Festival 10,817.00
Noosa A H & I Society Inc. for Noosa Country Show 10,817.00
Noosa Heads Jazz Club Inc. 5,075.00
Noosa Long Weekend Inc. for Noosa Alive! 10,817.00
SUB-TOTAL: 44,738.00
Three Year Sports Field Maintenance Agreement
Cooroora United Football Club Inc. 8,752.32
Cooroy Eumundi Cricket Club Inc. 8,752.32
Noosa Australian Football Club Inc. 17,504.66
Noosa District Junior Rugby League Football Club Inc. 29,174.16
Noosa District Rugby League Football Club Inc. 11,669.77
Noosa District Rugby Union Club Inc. 14,587.21
Noosa District Softball Association Inc. 14,587.21
Noosa Lions Football Club Inc. 20,422.08
Noosa Touch Association Inc. 11,669.76
Pomona Cooroy and District Australian Football Club Inc. 8,752.32
Tewantin Noosa Cricket Club Inc. 21,880.95
SUB-TOTAL: 167,752.76
Water Rebates
48 different not-for-profit community organisations 75,506.78
SUB-TOTAL: 75,506.78
TOTAL EXPENDITURE FOR THE PERIOD: 893,405.91
Notes:
1. The Regional Arts Development Fund grants were funded 50/50 between Queensland Arts Council and Noosa Council.
The above amount is Council’s contribution.
2. Grant repayments relate to funds returned to Council relating to previous grant rounds that were not acquitted.
Discretionary funds Beneficial enterprises
Section 109 of the LG Act defines discretionary funds as Section 39(3) of the LG Act defines a beneficial enterprise as
funds in the local government’s operating fund that are: an enterprise that a local government considers is directed
to benefiting, and can reasonably be expected to benefit, the
• Budgeted for community purposes; and
whole or part of its local government area.
• Allocated by a Councillor at the Councillor’s discretion.
Section 39(4) of the LG Act provides that a local government
There were no Councillor discretionary funds established is conducting a beneficial enterprise if the local government
during the period. is engaging in, or helping, the beneficial enterprise.
Council did not engage in any beneficial enterprises during
the period.
Noosa Council | 2018/2019 Annual Report Page 39
Section 40
Business activities Authority did not make any reportable recommendations to
Council in relation to a competitive neutrality complaint.
A business activity is defined in Schedule 4 of the LG
Act as the trading in goods and services by the local Services, facilities and activities, for which special rates /
government. charges were levied
Council conducted the following business activities during Below is a list of Council levies and special charges for the
the period: period:
• Waste management; and »» Tourism and Economic Levy
• Holiday parks including the Boreen Point »» Noosa Waters Lock and Weir Maintenance Levy
Campground, Noosa North Shore Beachfront »» Noosa Waters Canal Maintenance Levy
Caravan Park and Noosa River Holiday Park. »» Noosa Junction Levy
»» Hastings Street Precinct Maintenance Levy
Significant business activity »» Noosa Main Beach Maintenance Levy
»» Rural Fire Charge
In accordance with threshold of expenditure and the »» Hastings Street Community Safety Program Charge
methodology prescribed by sections 19 and 20 of the LG
»» Lower Noosa North Shore Electricity Charge
Regulation, Council’s waste management activity was
considered a significant business activity for the period. Note, there were no levies or special charges supplied
by another local government under an agreement for
conducting a joint government activity.
Commercial business units
Pursuant to s 27(2) of the LG Regulation, a commercial
business unit is a business unit that conducts business Summary of concessions for rates
in accordance with the prescribed key principles of and charges
commercialisation. Council did not nominate any business
activities as commercial business units during the period. General rate concessions
In addition to those classes of land granted a general
Competitive neutrality rate exemption per the relevant provisions of the Local
Government Act 2009 and supporting regulations, Council
Council is committed to ongoing compliance with National
also provides general rates concessions to land deemed
Competition Policy principles and its legislative obligations
eligible in accordance with Council’s General Rates
in this area. Furthermore, Council is committed to ensuring
Donations policy.
that its business activities operate on a level playing field
with private businesses in the community. Applications received during the 2018/19 year that meet
the policy eligibility requirements will be granted a general
Council ensures that the pricing practices for each
rate concession for the year. Property owners must
business activity comply with the principles of full cost
immediately notify Council if there is a substantive change
pricing such that total revenue, inclusive of identified and
of land use for a property in receipt of a general rate
measured community service obligations and net of any
concession. Council’s General Rates Donation Policy is
advantages and disadvantages of public ownership, should
available on Council’s website.
aim to cover the following elements:
• Operational and resource costs;
Deferment of general rates
• Administration and overhead costs;
Chapter 4 Part 10 of the LG Regulation allows Council to
• Depreciation;
grant a rating concession to certain ratepayers by entering
• Tax and debt equivalents; and an agreement to defer the payment of rates and charges.
• Return on capital / return on cost.
Pursuant to section 120(1)(a), section 121(b) and section
During the period, there were no investigation notices 122(1)(b) of the LG Regulation Council may allow eligible
provided to Council relating to competitive neutrality pensioners to enter into an agreement to defer the
complaints. Accordingly, the Queensland Competition payment of rates.
Noosa Council | 2018/2019 Annual Report Page 40
Section 41
Deferment for Pensioners • a Repatriation Health (Gold) Card issued by the
Department of Veteran Affairs; or
To assist eligible pensioners who have experienced large • a Commonwealth Seniors Health Card; or
increases in the value of their property as determined by
• a Queensland Seniors Card issued by the
the Department of Natural Resources, Mines and Energy
Queensland State Government.
or have experienced financial hardship Council will allow
deferment of up to 50% of the general rate. The deferred (Note that automatic eligibility applies to those ratepayers
rates will accumulate as a debt against the property until it currently receiving a Pension Concession on their rate
is sold or until the death of the ratepayer. notice. Eligibility for those ratepayers with a Seniors Card
will be assessed on a case by case basis.)
The deferment of general rates applies only to rates
payable with respect to land included in Differential General In accordance with section 122(5) of the LG Regulation,
Rates Categories 1, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 or 28. Council is authorised to charge interest, or request
payment of an additional charge, to all deferred general
To be eligible to defer up to 50% of the general rate the
rates for the relevant period. During the period only one
applicant must:
ratepayer had their general rates deferred.
• own and occupy the property; and
• have no overdue rates and charges on the said Pensioner Concessions
property; and
• be the holder of a Pension Concession Card issued Council’s pensioner rate concession to eligible pensioners
by Centrelink or the Department of Veteran Affairs; shall be allowed under Chapter 4, Part 10 of the LG
or Regulation. Table 10 outlines the method of calculation.
Table 10 – Method of calculation
Pension Rate Sole title to the property Joint title to the property
Maximum level of pension $230 p.a. max $180 p.a. max
$115 per half year $90 per half year
Not Maximum level of pension $115 p.a. max $65 p.a. max
$57.50 per half year $32.50 per half year
Single Owner on the Maximum Rate of Pension
of pension and has sole title to the property that is their
Where the pensioner is in receipt of the maximum level principal place of residence, the concession shall be 25%
of pension and has sole title to the property, that is their of the general rate up to a maximum amount of $115.00
principal place of residence, the concession shall be 25% per annum.
of the general rate up to a maximum amount of $230.00
per annum. Joint Owner not on the Maximum Rate of Pension
Where the pensioner is not in receipt of the maximum level
Joint Owner on the Maximum Rate of Pension of pension and owns the property jointly with one or more
Where the pensioner is in receipt of the maximum level people, the concession shall be 25% of the general rate up
of pension and owns the property jointly with one or more to a maximum amount of $65.00 per annum.
people, the concession shall be 25% of the general rate up
to a maximum amount of $180.00 per annum.
Invitations to change tenders
Single Owner not on the Maximum Rate of Pension There were no reportable invitations made by Council to
change tenders during the period.
Where the pensioner is not in receipt of the maximum level
Noosa Council | 2018/2019 Annual Report Page 41
Section 42
Community
Financial
Report
Noosa Country Show 2018
Noosa Council | 2018/2019 Annual Report Page 42
Section 43
Background
This report simplifies the detailed financial information that Council is required to prepare under legislation and provides a
summary of Council financial performance for the 2018/19 year just ended (1 July 2018 through to 30 June 2019).
Council’s annual financial statements are prepared to comply with Australian Accounting Standards, and contain specific
information regarding financial performance. Financial statements include
Statement
a Statement of Comprehensive Income (i.e. profit and loss), a Statement of
of
Financial Position (i.e. balance sheet), a Statement of Cash Flows as well
Comprehensive
as a Statement of Changes in Equity. Collectively, these financial statements
Income
provide a formal picture of the financial strength of an organisation. Statement
Statement of
The Community Financial Report (CFR) consists of five key reporting Cash of
Financial
elements, each of which has a specific purpose for the measurement and Flows Financial
Ratios
presentation of Council’s finances. The linkages between the five key elements Position
are shown in Figure 1. Statement
of
Changes in
Highlights and achievements Equity
Figure 1 - Financial Reporting Elements
Council achieved another strong financial result with the following
positive outcomes delivered during the year:
1. An operating surplus of $5.6 million resulting from revenue growth in fees and sales, effective expenditure
management, a reduction in asset depreciation expense as well as some unspent levy funds that are required to
be held for future use.
2. A net financial result of $17.5 million when adding Council’s share of Unitywater’s annual profit, capital revenue
and capital income to Council’s operating profit.
3. A significant decrease in debt levels through an early loan repayment of $10 million.
Where was the budget spent?
Council spends significant amounts of ratepayer funds providing a range of services to the Noosa community. A
summary of the cost of the services for our major service areas is provided in Figure 2. Spending on these services
(including roads, bridges, parks, community facilities and waste management) makes up a significant component of
Council’s annual budget.
$25,000 Figure 2
Operating Cost of
$20,000
Core Council Services
$15,000 2018/19
$10,000
$5,000
$0
Community Facilities
Community Engagement
Waste / Health
Parks and Reserves
Local Laws
Building / Plumbing
Libraries / Galleries
Property / Holiday Parks
Economic Development
Community Development
Roads / Bridges / Drainage
Planning and Environment
Noosa Council | 2018/2019 Annual Report Page 43
Section 44
Statement of comprehensive income
This statement (also known as the profit and loss) measures how Council performed financially in relation to funding its
operations during the financial year. In simple terms, it summarises how much money was received by Council and how
much was spent in a particular year. Figure 3 summarises Council’s 2018/19 financial performance.
Figure 3 – Council Net Result Financial Performance 2018/19
2017/18 2018/19
($’000) ($’000)
Revenue 111,793 112,575
Expenses 111,200 95,090
Net Result 593 17,485
The 2018/19 net result of $17.5 million includes non-operational items such as revenue received specifically to fund
capital expenditure (including grants and subsidies and developer contributions), Council’s share of Unitywater’s annual
profit and movements in investment property valuations.
The removal of the $11.9 million of non-operational items shows Council’s actual operating surplus to be $5.6 million.
Operating revenue – where the money came from
Throughout the financial year, Council received a Unitywater
total of $97.4 million in operating revenues (rates, 9%
Grants & Other
fees, operating grants), $8.7 million in capital Revenue
revenues (developer contributions, capital grants) 5%
Interest
and $6.5 million recorded as revenue from Council’s Revenue
share of investment in Unitywater. 5%
Figure 4 outlines the sources of Council’s $97.4
Fees &
million in operating revenue received in 2018/19. Charges
16%
The breakdown in operating revenue confirms that
Council continues to have significant control over
the majority of its income sources, and as a result is
Other Income Rates & Utility
not reliant on other levels of government or external 1% Charges
agencies to maintain its financial independence. 64%
Figure 4 - Operating Revenue Sources 2018/19
Key Council revenue sources include:
• Rates and utility charges comprising general rates, charges for waste collection and disposal, special rates such
as the tourism and economic levy as well as other separate rates and special charges.
• Fees and charges include a range of regulatory fees and charges as well as revenue from commercial operations
such as holiday parks and waste management.
• Interest revenue includes the return from the investment of available cash.
• Revenue from other income includes tax payments from Council’s shareholding in Unitywater.
Noosa Council | 2018/2019 Annual Report Page 44
Section 45
Operating expenditure – where the money goes
Council expended a total of $95 million in undertaking operating activities during the financial year.
Figure 5 presents a breakdown by expenditure type for operating expenditure incurred during 2018/19.
Depreciation
17%
Employee
Finance & Benefits
Other Costs 35%
6%
Materials &
Services
42%
Figure 5 – Operating Expenses by Function 2018/19
Key Council expenditure sources include:
• Employee benefits - includes staff wages, superannuation, fees paid to Councillors and other employment costs.
• Depreciation expenditure – records the consumption of community infrastructure assets over their respective
useful lives, and provides an indication of the level of required expenditure on the rehabilitation and renewal of
existing assets annually. The revaluation of infrastructure assets during the year has also impacted the annual
depreciation charge.
• Materials and services – includes information communication technology, consultancy services, contractor
services, electricity, external hire, rentals, repairs and maintenance, advertising and donations.
• Finance and other costs – includes interest paid on loan borrowings, fees associated with the early repayment of
borrowings and movement in the provision for future landfill rehabilitation costs.
Statement of Financial Position
The statement of financial position (or balance sheet) measures what Council owns (i.e. its assets), and what we owe
(i.e. liabilities) to determine the total community equity (net worth) at the end of each financial year. Overall, Council’s
investment in community capital continues to grow steadily.
Figure 6 summarises the movement in Council’s assets and liabilities that comprise community equity.
Figure 6 – Comparative Statement of Financial Position 2018/19
2017/18 2018/19
($’000) ($’000)
Assets 1,078,927 1095,611
Liabilities 62,902 53,035
Community Equity 1,016,024 1,042,576
Noosa Council | 2018/2019 Annual Report Page 45
Section 46
Figure 7 shows Council’s cash and debt holdings as at 30 June 2019 compared to the previous year. Both cash and debt
levels have decreased, which is reflective of the $10 million early loan repayment made during the 2018/19 year. Our net
cash position (i.e. cash less debt) however still actually increased by $3.7 million during the year.
Figure 7 – Cash and Debt Comparison 2018/19
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Cash Debt
2017/18 ($,000) 2018/19 ($,000)
Assets – what we own
Current assets are represented by cash, investments, inventories and receivables (money owed to Council). Council’s
current assets as at 30 June 2019 equated to $67.3 million.
Non-current assets of over $1 billion includes property, plant and equipment totalling $886 million, as well as the value of
Council’s investment in Unitywater. Property, Plant and Equipment represents community infrastructure which includes
roads, bridges, stormwater, buildings, land and other operational assets owned and controlled by Council.
The main non-current asset categories and their respective values are shown in the Figure 8.
Figure 8 - Non-Current Assets and Community Infrastructure 2018/19
Work in Progress
Parks & Other $44,061
Infrastructure
$51,532 Land &
Improvements
$151,708
Stormwater &
Drainage
Network Buildings
$119,826 $62,079
Plant &
Intangible Assets
Equipment
$1,598
$9,515
Road & Bridge
Network $451,546
Noosa Council | 2018/2019 Annual Report Page 46
Section 47
Liabilities – what we owe
Money owed by Council is presented as both current and non-current liabilities in the statement of financial position.
Current liabilities are those amounts that are payable by Council within the next twelve months, and non-current liabilities
are payable beyond the twelve month horizon.
The most significant element is loans raised by Council to fund the investment in community infrastructure. During 2018/19,
Council’s total loan borrowings reduced significantly due to no new loans being drawn down, with the standard annual
existing loan repayments being supplemented with an additional one-off repayment of $10 million.
Statement of changes in equity
The statement of changes in equity illustrates how the net worth of Council has changed as a result of activities undertaken
during the period. Council’s total community equity as at 30 June 2019 is $1.0 billion. Community equity is equal to total
assets (what we own) less total liabilities (what we owe) and represents Council’s net investment in assets.
Statement of cash flows
The statement of cash flows shows where Council has generated cash and where these funds have been expended. The
detailed schedule in the financial statements is summarised in Figure 9 (columns above the line represent cash flowing into
the organisation and columns below the line represent cash payments made).
Figure 9 –Net Cash Flow Sources 2018/19 ($’000)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
-$5,000
-$10,000
-$15,000
-$20,000
-$25,000
Operating Activities Investing Activities Financing Activities Net Movement in
Cash
Key elements to Council’s annual cash flow include:
• Operating activities depicts the net of income received from rates, interest, grants, etc. and payments made to
suppliers and employees.
• Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the form of roads,
bridges, plant and equipment, etc. A negative outcome here represents a net investment in community infrastructure
during the reporting period.
• Financing activities shows the receipt and repayment of Council borrowings. A negative outcome here represents
that Council has repaid more loans compared to new borrowings raised.
Noosa Council | 2018/2019 Annual Report Page 47
Section 48
• Net movement in cash represents the total physical movement of cash, with any accounting adjustments and
accruals removed. The net negative movement in cash for the year of $8.2 million represents a net decrease in
cash on hand.
Financial ratios
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation. Ratios can also be
useful in comparing Noosa Council to other Councils to gain an understanding of relative financial strength. This analysis
is undertaken periodically by the Queensland Treasury Corporation (QTC) in assessing the financial sustainability of
Council.
A number of sustainability ratios are mandated under the Local Government Regulation 2012, including target ranges
for each measure. Details of these ratios are shown in Figure 10, including actual results for the current reporting period
plus projections over the next 9 years.
Figure 10 - Financial Ratios 2018/19 (Actual) to 2027/28 (Forecast)
Period Ended 30 June 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Sustainability Ratios
Operating Surplus Ratio
Operating Position 11.6% 0.0% 0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Local Govt Act upper indicator 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Net Financial Liabilities Ratio
Net Financial Liabilities Ratio (13.8)% (5.7)% (5.3)% (3.3)% (3.6)% (6.4)% (10.6)% (13.8)% (18.8)% (22.0)%
Local Govt Act upper indicator 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
Asset Sustainability Ratio
Asset Sustainability Ratio 132.3% 110.3% 100.6% 100.3% 103.7% 98.9% 90.4% 89.3% 82.7% 83.0%
Local Govt Act minimum 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
indicator
Colour Scale: Within Moderate Outside
range range
Operating surplus ratio
This ratio measures the operating surplus achieved for the period and represents the operating surplus / (deficit) as a
percentage of operating revenue. A surplus will be represented by a positive result.
Council’s should be aiming to achieve as a minimum a balanced operating position to ensure that revenues received are
sufficient to fund operations and capital replacement works. The 2018/19 operating surplus ratio of 11.6% is a reflection
of strong revenue growth along with good management of our expenditure, partial prepayment of the 2019/20 financial
assistance grant early in June 2019, revaluation of non-current asset impacts on depreciation expense as well as some
unspent levy funds that are required to be held for future use. The forecast shows Council’s ongoing commitment to
strong financial management.
Noosa Council | 2018/2019 Annual Report Page 48
Section 49
Net financial liabilities ratio This ratio represents Council’s net financial liabilities (total liabilities less current assets) expressed as a percentage of total operating revenue. The target range is less than 60%. A negative percentage indicates that current assets exceed total liabilities, and is considered a very strong position. The strong position of (13.8%) as at 30 June 2019 indicates that Council has capacity to service higher levels of debt if needed. Asset sustainability ratio This ratio is calculated by measuring the annual expenditure on the renewal and rehabilitation of Council’s assets against the annual depreciation charge. It is a measure of whether Council is reinvesting in existing assets to ensure that they meet required levels of service for the community. During 2018/19 Council achieved a ratio of 132.3%. This ratio is reflective of the efficient delivery of the capital program during the year, including an investment of $19 million in the replacement of infrastructure such as roads, bridges and buildings. This result reflects Council’s continued investment in infrastructure replacement and adherence to sound asset management principles to maintain levels of service to the community. Summary The financial period ended 30 June 2019 represents another excellent financial result for Council, and provides a firm foundation for future operations. Ongoing innovation and a commitment to strong financial management through compliance with our Financial Sustainability policy will ensure that this position is maintained into the future. Noosa Council | 2018/2019 Annual Report Page 49
Section 50
Financial
Statements
2018/19
Kin Kin
Noosa Council | 2018/2019 Annual Report Page 50
Section 51
Noosa Shire Council
Financial Statements
for the year ended 30 June 2019
Table of Contents Page
1. Primary Financial Statements:
Statement of Comprehensive Income 52
Statement of Financial Position 53
Statement of Changes in Equity 54
Statement of Cash Flows 55
2. Notes to the Financial Statements
1 Summary of Significant Accounting Policies 56
2(a) Council Functions - Component Descriptions 60
2(b) Council Functions - Analysis of Results by Function 61
3 Revenue Analysis 62
4 Grants, Subsidies, Contributions and Donations 64
5 Employee Benefits 65
6 Materials and Services 65
7 Finance Costs 66
8 Capital Expenses 66
9 Cash and Cash Equivalents 67
10 Trade and Other Receivables 68
11 Investment Property 69
12 Property, Plant and Equipment 69
13 Fair Value Measurements 73
14 Intangible Assets 79
15 Trade and Other Payables 79
16 Borrowings 80
17 Provisions 81
18 Other Liabilities 83
19 Asset Revaluation Surplus 84
20 Commitments for Expenditure 85
21 Contingent Liabilities 86
22 Superannuation 86
23 Operating Lease Income 87
24 Equity Investments 88
25 Trust Funds 90
Reconciliation of Net Result for the year to Net Cash
26 90
Inflow (Outflow) from Operating Activities
27 Reconciliation of Liabilities arising from Finance Activities 91
28 Prior Period Adjustments 91
29 Events Occurring After Balance Sheet Date 91
30 Financial Instruments 92
31 National Competition Policy 97
32 Transactions with Related Parties 98
3. Management Certificate 101
4. Independent Auditor's Report 102
5. Current Year Financial Sustainability Statement 105
Certificate of Accuracy - Current Year Financial Sustainability Statement 107
Independent Auditor's Report - Current Year Financial Sustainability Statement 108
6. Long Term Financial Sustainability Statement 111
Certificate of Accuracy - Long Term Financial Sustainability Statement 113
page 51
Section 52
Noosa Shire Council
Statement of Comprehensive Income
for the year ended 30 June 2019
2019 2018
Notes $'000 $'000
Income from Continuing Operations
Revenue
Recurrent Revenue
Rates, Levies and Charges 3a 66,453 64,011
Fees and Charges 3b 7,059 6,113
Rental Income 3c 1,281 1,301
Interest and Investment Revenue 3c 4,763 4,701
Sales Revenue 3d 9,726 9,201
Other Income 3e 2,698 4,064
Grants, Subsidies, Contributions and Donations 4a 5,447 6,052
Total Recurrent Revenue 97,427 95,443
Capital Revenue
Grants, Subsidies, Contributions and Donations 4b 8,696 11,275
Total Revenue 106,123 106,718
Equity share of profit (loss) in investment in associate through participation
rights 24 6,452 5,075
Total Income (Continuing Operations) 112,575 111,793
Expenses from Continuing Operations
Recurrent Expenses
Employee Benefits 5 31,962 30,460
Materials and Services 6 38,893 39,017
Finance Costs 7 5,146 2,329
Depreciation and Amortisation 12, 14 15,805 15,120
Total Recurrent Expenses 91,806 86,926
Capital Expenses 8 3,284 24,274
Total Expenses (Continuing Operations) 95,090 111,200
Net Result 17,485 593
Other Comprehensive Income
Items that will not be reclassified to Net Result
Increase/(decrease) in Asset Revaluation Surplus 19 9,070 14,847
Total Other Comprehensive Income 9,070 14,847
Total Comprehensive Income for the year 26,555 15,440
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 52
Section 53
Noosa Shire Council
Statement of Financial Position
as at 30 June 2019
2019 2018
Notes $'000 $'000
ASSETS
Current Assets
Cash and Cash Equivalents 9 55,981 64,193
Trade and Other Receivables 10 11,207 11,093
Inventories 13 198 225
Total Current Assets 67,386 75,511
Non-Current Assets
Trade and Other Receivables 10 49,718 49,218
Equity Investments 24 83,342 78,377
Investment Property 11 3,300 4,167
Property, Plant and Equipment 12 885,912 866,605
Intangible Assets 14 5,953 5,049
Total Non-Current Assets 1,028,225 1,003,416
TOTAL ASSETS 1,095,611 1,078,927
LIABILITIES
Current Liabilities
Trade and Other Payables 15 9,594 11,681
Borrowings 16 3,112 3,969
Provisions 17 4,918 4,648
Other Liabilities 18 2,768 697
Total Current Liabilities 20,392 20,995
Non-Current Liabilities
Borrowings 16 21,120 32,171
Provisions 17 11,523 9,737
Total Non-Current Liabilities 32,643 41,908
TOTAL LIABILITIES 53,035 62,903
Net Community Assets 1,042,576 1,016,024
COMMUNITY EQUITY
Asset Revaluation Surplus 19 50,809 41,739
Retained Surplus/(Deficiency) 27 991,767 974,285
Total Community Equity 1,042,576 1,016,024
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 53
Section 54
Noosa Shire Council
Statement of Changes in Equity
for the year ended 30 June 2019
Asset
Revaluation Retained Total
Surplus Surplus Equity
Notes $'000 $'000 $'000
2019
Opening Balance 41,739 974,285 1,016,024
a. Correction to opening balance - - -
b. Changes in Accounting Policies (prior year effects) 1(d) - (3) (3)
c. Adjustment on Initial Application of AASB 9 - - -
Opening Balance (as at 1 July 2018) 41,739 974,282 1,016,021
d. Net Result for the Year - 17,485 17,485
e. Other Comprehensive Income
Revaluations: Property, Plant & Equip. Asset Revaluation Surplus 19 9,070 - 9,070
Other Comprehensive Income 9,070 - 9,070
Total Comprehensive Income (c&d) 9,070 17,485 26,555
Equity Balance as at 30 June 2019 50,809 991,767 1,042,576
Asset
Revaluation Retained Total
Surplus Surplus Equity
Notes $'000 $'000 $'000
2018
Opening Balance 26,892 973,692 1,000,584
a. Correction to opening balance - - -
Revised Opening Balance (as at 1 July 2017) 26,892 973,692 1,000,584
b. Net Result for the Year - 593 593
c. Other Comprehensive Income
Revaluations: Property, Plant & Equip. Asset Revaluation Surplus 19 14,847 - 14,847
Other Comprehensive Income 14,847 - 14,847
Total Comprehensive Income (c&d) 14,847 593 15,440
Equity Balance as at 30 June 2018 41,739 974,285 1,016,024
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 54
Section 55
Noosa Shire Council
Statement of Cash Flows
for the year ended 30 June 2019
2019 2018
Notes $'000 $'000
Cash Flows from Operating Activities
Receipts from Customers 92,597 87,075
Payments to Suppliers and Employees (78,821) (77,033)
13,776 10,042
Receipts:
Investment and Interest Revenue Received 4,763 4,701
Rental Income 1,281 1,301
Non Capital Grants and Contributions 5,447 6,052
Income Tax Equivalent Received 1,754 3,067
Income from Equity Investments 1,487 30
Payments:
Interest Expense (133) (131)
Net Cash Inflow/(Outflow) from Operating Activities 26 28,375 25,062
Cash Flows from Investing Activities
Receipts:
Proceeds of Sale of Property, Plant and Equipment 383 154
Grants, Subsidies, Contributions and Donations 5,140 6,369
Payments:
Payments of Property, Plant and Equipment (24,848) (26,981)
Payments for Intangible Assets (1,347) (1,874)
Net Movement in Loans & Advances (625) -
Net Cash Inflow/(Outflow) from Investing Activities (21,297) (22,332)
Cash Flows from Financing Activities
Receipts:
Proceeds from Borrowings - 1,165
Payments:
Repayment of Borrowings (15,290) (5,165)
Net Cash Inflow/(Outflow) from Financing Activities (15,290) (4,000)
Net Increase/(Decrease) in Cash and Cash Equivalents held (8,212) (1,270)
Cash and Cash Equivalents at the beginning of the financial year 64,193 65,463
Cash and Cash Equivalents at the end of the financial year 9 55,981 64,193
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 55
Section 56
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 1. Summary of Significant Accounting Policies
(1.a) Basis of preparation (1.d) Adoption of New and Revised Accounting
Standards
These general purpose financial statements are for the
period 1 July 2018 to 30 June 2019 and have been In the current year, Council adopted all of the new and
prepared in compliance with the requirements of the Local revised Standards and Interpretations issued by the
Government Act 2009 and the Local Government Australian Accounting Standards Board (AASB) that are
Regulation 2012. Consequently, these financial relevant to its operations and effective for the current
statements have been prepared in accordance with all reporting period. The adoption of the new and revised
Australian Accounting Standards, Australian Accounting Standards and Interpretations has not resulted in any
Interpretations and other authoritative pronouncements material changes to Council's accounting policies.
issued by the Australian Accounting Standards Board.
Noosa Shire Council has not applied any Australian
These financial statements have been prepared under the Accounting Standards and Interpretations that have been
historical cost convention except for the following: issued but are not yet effective.
Financial assets and liabilities, certain classes of This year Council has applied AASB 9 Financial Instruments
property, plant and equipment and investment for the first time. AASB 9 replaces AASB 139 and relates to
property which are measured at fair value; the recognition, classification and measurement of financial
assets and financial liabilities. Implementing AASB 9 has
Council is constituted under the Queensland Local resulted in a change to the way council calculates
Government Act 2009 and is domiciled in Australia. impairment provisions, which are now based on expected
credit losses instead of incurred credit losses.
Council uses the Australian dollar as its functional
currency and its presentation currency. On 1 July 2018 (the date of initial application), council re-
assessed the classification, measurement category and
Amounts included in the financial statements have been carrying amount of each financial instrument (listed below)
rounded to the nearest $1,000 unless otherwise indicated. in accordance with AASB 9. There were some changes to
classification, but this did not result in changes to
Comparative information has been restated where measurement categories (listed below). Carrying amounts
necessary to be consistent with disclosures in the current were also unchanged, except for receivables which
reporting period. decreased by $2,807 due to an increase in impairment
under the new rules. A corresponding adjustment was made
(1.b) Statement of Compliance to retained earnings as at 1 July 2018.
These general purpose financial statements comply with Financial asset/liability Measurement
all accounting standards and interpretations issued by the Category (unchanged)
Australian Accounting Standards Board (AASB) that are
relevant to Council's operations and effective for the Cash and cash equivalents Amortised cost
current reporting period. Because the Council is a not-for- Receivables Amortised cost
profit entity and the Australian Accounting Standards Other financial assets Amortised cost
include requirements for not-for-profit entities which are Borrowings Amortised cost
inconsistent with International Financial Reporting
Standards (IFRS), to the extent these inconsistencies are Some Australian Accounting Standards and Interpretations
applied, these financial statements do not comply with have been issued but are not yet effective. Those standards
IFRS. The main impacts are the offsetting of revaluation have not been applied in these financial statements. Council
and impairment gains and losses within a class of assets, will implement them when they are effective.
and the timing of the recognition of non-reciprocal grant
revenue. The standards that are expected to have a material
impact upon Council's future financial statements are:
(1.c) Date of Authorisation
Effective for annual reporting periods beginning on or
after 1 July 2019
The financial statements were authorised for issue on the
date they were submitted to the Auditor-General for final
AASB 15 Revenue from Contracts with Customers,
signature. This is the date the management certificate is
AASB 1058 Income of Not-for-Profit Entities and AASB
signed.
2016-8 Amendments to Australian Accounting
Standards - Australian Implementation Guidance for
Not-for-Profit Entities.
page 56
Section 57
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 1. Summary of Significant Accounting Policies (continued)
AASB 1058 clarifies and simplifies the income - Revenue decrease due to deferral of grant funding,
recognition requirements that apply to not-to-profit pre-paid rates, and other sales related revenue (based
(NFP) entities, in conjunction with AASB 15, and on the facts available to Council at the date of
AASB 2016-8. These Standards supersede the assessment).
majority of income recognition requirements relating
to public sector NFP entities, previously in AASB 1004 - There would be an equal reduction in the reported
Contributions. equity as the reduced revenue will require an increase
in recognition of contract liabilities, and statutory
Identifiable impacts at the date of this report are: receivables.
Some grants received by the Council will be - Net result would be lower on initial application as a
recognised as a liability, and subsequently recognised result of decreased revenue. A range of new
progressively as revenue as the Council satisfies its disclosures will also be required by the new standards
performance obligations under the grant. At present, in respect of the council's revenue.
such grants are recognised as revenue upfront.
Transition method
Grants that are not enforceable and/or not sufficiently
specific will not qualify for deferral, and continue to be The Council intends to apply AASB 15, AASB 1058 and
recognised as revenue as soon as they are controlled. AASB 2016-8 initially on 1 July 2019, using the
Council receives several grants from the Federal modified retrospective approach. The recognition and
Government and State Government for which there measurement principles of the standards will be
are no sufficiently specific performance obligations retrospectively applied for the current year and prior
these are expected to continue being recognised as year comparatives as though the standards had always
revenue upfront assuming no change to the current applied, consistent with AASB 108 Accounting Policies,
grant arrangements. Changes in Accounting Estimates and Errors.
Depending on the respective contractual terms, the The Council intends to apply the practical expedients
new requirements of AASB 15 may potentially result available for the full retrospective method. Where
in a change to the timing of revenue from sales of the revenue has been recognised in full under AASB 1004,
Council's goods and services such that some revenue prior to 1 July 2019, but where AASB 1058 would have
may need to be deferred to a later reporting period to required income to be recognised beyond that date, no
the extent that the Council has received payment but adjustment is required. Further, Council is not required
has not met its associated performance obligations to restate income for completed contracts that start and
(such amounts would be reported as a liability in the complete within a financial year. This means where
meantime). income under AASB 1004 was recognised in the
comparative financial year (i.e. 2018/19), these also do
Prepaid rates will not be recognised as revenue until not require restatement.
the relevant rating period starts. Until that time these
receipts will be recognised as a liability (unearned
revenue). AASB 16 Leases – Council has assessed the impacts
of the new standard that initial application of AASB 16
Revenue from Special rates and charges are currently will have on its consolidated financial statements,
recognised as revenue upon receipt. As these funds however, the actual impacts may differ as the new
relate to the completion of specific implementation accounting policies are subject to change until the
plans and are refundable under the Local Government Council presents its first financial statements that
Regulations 2012 they will now initially be recorded as include the date of initial application.
unearned revenue and recognised only as revenue
when the performance obligations are satisfied. AASB 16 introduces a single, on-balance sheet lease
accounting model for lessees. A lessee recognises a
Membership revenue will be recognised in line with right-of-use asset representing its right to use the
the membership period to which the fees were paid underlying asset and a lease liability representing its
which is a change to the current recognition of obligation to make lease payments. There are
revenue upon receipt. recognition exemptions for short-term leases and
leases of low-value items. Lessor accounting remains
There will be no impact upon the recognition of other similar to the current standard – i.e. lessors continue to
fees and charges. classify leases as finance or operating leases.
Based on Councils assessment, if Council had
adopted the new standards in the current financial
year it would have had the following impacts:
page 57
Section 58
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 1. Summary of Significant Accounting Policies (continued)
Leases in which the Council is a lessee
Transition method
The Council will recognise new assets and liabilities
for its operating leases of IT equipment and land The Council intends to apply AASB 16 initially on 1 July
parcels. The nature of expenses related to those 2019, using the modified retrospective approach.
leases will now change because the Council will Therefore, the cumulative effect of adopting AASB 16
recognise a depreciation charge for right-of-use will be recognised as an adjustment to the opening
assets and interest expense on lease liabilities. balance of retained earnings at 1 July 2019, with no
restatement of comparative information.
Previously, the Council has recognised an operating
lease expense on a straight-line basis over the term of The Council intends to apply the practical expedient for
the lease, and recognised assets and liabilities only to the definition of a lease on transition. This means that it
the extent that there was a timing difference between will apply AASB 16 on transition only to contracts that
actual lease payments and the expense recognised. were previously identified as leases applying AASB 117
Leases and Interpretation 4 Determining whether an
The Council has elected not to recognise IT Arrangement contains a Lease.
equipment leases under the AASB 16 as they have
been assessed as being low-value assets under the The standards not expected to have a material impact
standard. upon Council's future financial statements are:
No significant impact is expected for the Council’s Effective for annual reporting periods beginning on or
finance leases. after 1 January 2019
Based on Councils assessment, it is expected that the AASB 1059 Service Concession Arrangements:
first-time adoption of AASB 16 for the year ending 30 Grantors
June 2020 will have the following impacts:
AASB 1059 Service Concession Arrangements:
- Lease assets and financial liabilities on the balance Grantors (Appendix D)
sheet will increase/decrease by $174,267 and
$174,267 respectively (based on the facts available to AASB 2016-8 Amendments to Australian Accounting
Council at the date of assessment). Standards - Australian Implementation Guidance for
Not-for-Profit Entities
- There will be a reduction in the reported equity as
the carrying amount of lease assets will reduce more AASB 2017-1 Amendments to Australian Accounting
quickly than the carrying amount of lease liabilities. Standards - Transfers of Investment Property, Annual
Improvements 2014-2016 Cycle and Other
- Net result will be lower on initial application as Amendments
depreciation and the lease liability interest will be
initially higher than operating lease expenses AASB 2017-4 Amendments to Australian Accounting
previously recorded. Standards – Uncertainty over Income Tax Treatments
Leases in which the Council is a lessor AASB 2017-6 Amendments to Australian Accounting
Standards – Prepayment Features with Negative
No significant impact is expected for other leases in Compensation
which the Council is a lessor.
AASB 2017-7 Amendments to Australian Accounting
Peppercorn Leases
Standards – Long-term Interests in Associates and
Joint Ventures
Council is the leasee of a number of Deed of Grant in
Trust leases, for which no or little lease payments are
AASB 2018-1 Amendments to Australian Accounting
made. These have been identified as peppercorn
Standards – Annual Improvements 2015–2017 Cycle
leases which are currently not recognised in Council's
financial statements. Council does not intend to elect
AASB 2018-2 Amendments to Australian Accounting
not to apply the fair value measurement requirements
Standards – Plan Amendment, Curtailment or
to these leases until such time as this requirement is
Settlement
mandated.
AASB 2018-3 Amendments to Australian Accounting
Standards – Reduced Disclosure Requirements
page 58
Section 59
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 1. Summary of Significant Accounting Policies (continued)
AASB 2018-4 Amendments to Australian Accounting Financial liabilities
Standards – Australian Implementation Guidance for
Not-for-Profit Public Sector Licensors Payables - measured at amortised cost. Note 15.
Borrowings - measured at amortised cost. Note 16.
AASB 2018-5 Amendments to Australian Accounting
Standards - Deferral of AASB 1059 Financial assets and financial liabilities are presented
separately from each other and offsetting has not been
applied. All other disclosures relating to the measurement
Effective for annual reporting periods beginning on or and financial risk management of financial instruments are
after 1 January 2021 included in Note 30.
AASB 17 Insurance Contracts (1.g) Taxation
AASB 17 Insurance Contracts (Appendix D) Income of local authorities and public authorities is exempt
from Commonwealth taxation except for Fringe Benefits Tax
(1.e) Critical accounting judgements and key and Goods and Services Tax (‘GST’). The net amount of
sources of estimation uncertainty GST recoverable from the ATO or payable to the ATO is
shown as an asset or liability respectively.
In the application of Council's accounting policies,
management is required to make judgements, estimates Unitywater pays Council an income tax equivalent in
and assumptions about carrying values of assets and accordance with the requirements of the Local Government
liabilities that are not readily apparent from other sources. Act 2009. Where the activity of such an entity is subject to
The estimates and associated assumptions are based on the tax equivalents regime, the income tax expense is
historical experience and other factors that are considered calculated on the operating surplus adjusted for permanent
to be relevant. Actual results may differ from these differences between taxable and accounting income.
estimates. The estimates and ongoing assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in future periods as relevant.
Judgements, estimates and assumptions that have a
potential significant effect are outlined in the following
financial statement notes:
Investment Property - Note 11
Valuation and depreciation of Property, Plant &
Equipment - Note 12
Provisions - Note 17
Contingent Liabilities - Note 21
Financial Instruments and Financial Assets - Note
30.
(1.f) Financial assets and financial liabilities
Council recognises a financial asset or a financial liability
in its Statement of Financial Position when, and only
when, Council becomes a party to the contractual
provisions of the instrument.
Noosa Shire Council has categorised and measured the
financial assets and financial liabilities held at balance
date as follows:
Financial assets
Cash and cash equivalents. Note 9.
Receivables - measured at amortised cost. Note 10.
page 59
Section 60
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 2(a). Council Functions - Component Descriptions
Details relating to the Council's functions / activities as reported in Note 2(b) are as follows:
CEO
The goal of the Chief Executive Officer function is to provide leadership to the organisation to ensure it meets its
strategic and operational objectives, as well as to provide executive support to Councillors, the Chief Executive
Officer (CEO) and Council leadership team. Service areas include the CEO's Office and Internal Audit.
COMMUNITY SERVICES
Community Services goals are to provide facilities and opportunities for residents and visitors to participate in
community, cultural and recreational activities across the shire; protect the health and safety of the Noosa
community; and assist community groups and organisations through the provision of advice and community grants.
Service areas include Cemeteries, Community Development, Cooroy and Noosaville Libraries, Environmental
Health, Local Laws, Noosa Aquatic Centre, Noosa Community Support, Noosa Leisure Centre, Noosa Regional
Gallery, Pest and Vector Control, the J and Waste Management.
INFRASTRUCTURE SERVICES
The goals of the Infrastructure Services department is to provide efficient planning, maintenance and delivery of
infrastructure over its lifecycle. The department operates and maintains infrastructure including roads and bridges,
buildings, canals, parks, stormwater drainage, waterways and beaches in the Noosa Shire in accordance with
established service levels. Service areas include Asset Management, Council Buildings and Facilities, Civil
Operations, Infrastructure Planning, Design and Delivery.
EXECUTIVE SERVICES
The goal of the Executive Services office is to provide effective governance oversight of the organisation, human
resource management support to the organisation and ensure Council's customer focus including communication
and community engagement processes. Service areas include Community Engagement, Customer Service,
Executive Services, Governance as well as People and Culture.
CORPORATE SERVICES
The goal of the Corporate Services department is to provide effective support to the organisation to ensure that
Council services are provided in accordance with agreed service levels that ensure Council's ongoing sustainability.
Service areas include Financial Services, Information Communication Technology, Procurement and Fleet,
Property and Facilities as well as Revenue Services.
ENVIRONMENT AND SUSTAINABLE DEVELOPMENT
The goal of the Environment and Sustainable Development department is to provide effective planning,
development compliance, economic development and environmental services that promote long-term sustainable
outcomes for the Noosa community. Service areas include Building and Plumbing Services, Economic
Development, Development Assessment, Environmental Services and Strategic Land Use Planning.
page 60
Section 61
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 2(b). Analysis of Results by Function
Gross Program Elimination Gross Elimination
Income of Inter- Total Expenses of Inter- Total Net
Functions Total Assets
Recurring Function Income Function Expenses Result
Recurring
Grants Other Activities Activities
2019 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
CEO - 43 - 43 (1,741) 227 (1,514) (1,471) 5
Community Services 3,581 24,192 (1,528) 26,245 (35,150) 7,081 (28,069) (1,824) 1,203
Infrastructure Services 2,372 8,537 (3,127) 7,782 (38,612) 7,232 (31,380) (23,598) 140
Executive Services 15 3,469 (3,464) 20 (4,359) 813 (3,546) (3,526) 339
Corporate Services 2,322 72,668 (11,910) 63,080 (23,081) 2,735 (20,346) 42,734 1,070,214
Environment and Sustainable Development 34 10,630 (224) 10,440 (12,399) 2,164 (10,235) 205 1,239
Total Council 8,324 119,539 (20,253) 107,610 (115,342) 20,252 (95,090) 12,520 1,073,140
Controlled Entity Net of Eliminations - 4,965 - 4,965 - - - 4,965 22,364
Total 8,324 124,504 (20,253) 112,575 (115,342) 20,252 (95,090) 17,485 1,095,504
Gross Program Elimination Gross Elimination
Income of Inter- Total Expenses of Inter- Total Net
Functions Total Assets
Recurring Function Income Function Expenses Result
Recurring
Grants Other Activities Activities
2018 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
CEO - - - - (1,705) 237 (1,468) (1,468) -
Community Services 3,447 23,375 (1,575) 25,247 (32,669) 6,910 (25,759) (512) 1,148
Infrastructure Services 3,937 8,620 (2,679) 9,878 (36,178) 6,463 (29,715) (19,837) 168
Executive Services 20 3,250 (3,250) 20 (4,086) 717 (3,369) (3,349) 308
Corporate Services 2,211 70,183 (11,474) 60,920 (43,745) 2,739 (41,006) 19,914 1,059,922
Environment and Sustainable Development 793 10,112 (221) 10,684 (12,017) 2,133 (9,884) 800 (16)
Total Council 10,408 115,540 (19,199) 106,749 (130,400) 19,199 (111,201) (4,452) 1,061,530
Controlled Entity Net of Eliminations - 5,045 - 5,045 - - - 5,045 17,397
page xx
Total 10,408 120,585 (19,199) 111,794 (130,400) 19,199 (111,201) 593 1,078,927
page 61
Section 62
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 3. Revenue Analysis
2019 2018
Notes $'000 $'000
Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier upon
unconditional entitlements to the funds.
(a). Rates, Levies and Charges
Where rates monies are received prior to the commencement of the rating/levying period, the amount is
recognised as revenue in the period in which they are received, otherwise rates are recognised at the
commencement of rating period.
General Rates 49,740 47,955
Separate Rates 5,691 5,672
Special Rates 1,553 1,543
Waste Utility Charges 12,368 11,525
Other Rates, Levies and Charges - (1)
Total rates and utility charge revenue 69,352 66,694
Less: Discounts (2,112) (1,888)
Less: Pensioner remissions (787) (795)
TOTAL RATES, LEVIES AND CHARGES 66,453 64,011
(b). Fees and Charges
Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon lodgement
of the relevant applications or documents, issuing of the infringement notice or when the service is provided.
Building and Development Fees 3,216 2,741
Permits and Licences 944 831
Fines and Penalties 233 270
Registration Fees 381 334
Parking Penalties 1,007 692
User Fees and Charges 777 639
Other Statutory Fees 501 606
TOTAL FEES AND CHARGES 7,059 6,113
page 62
Section 63
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 3. Revenue Analysis (continued)
2019 2018
Notes $'000 $'000
(c). Interest and Investment Revenue
Interest received from term deposits is accrued over the term of the investment. Dividends are recognised once
they are formally declared by the directors of the associated entities.
Investments 1,781 1,659
Interest from Overdue Rates and Utility Charges 511 493
Loan to Unitywater 2,471 2,549
TOTAL INTEREST AND INVESTMENT REVENUE 4,763 4,701
(d). Sales Revenue
The amount recognised as revenue for contract revenue during the financial year is the amount receivable in
respect of invoices issued during the period.
Sale of services
Contract and Recoverable Works 26 34
Waste Management Charges 2,492 2,296
Venue Hire 403 384
Holiday Parks Fees and Charges 3,093 3,241
Learn to Swim 655 704
Admission Fees 1,260 1,139
Total Sale of Services 7,929 7,798
Sale of goods
Sale of Recyclables 1,129 755
Retail Shop Sales 668 648
Total Sale of Goods 1,797 1,403
TOTAL SALES REVENUE 9,726 9,201
There are no contracts in progress at the year end. The contract work carried out is not subject to retentions.
(e). Other Income
Unitywater Income Tax Equivalent Received 1,754 3,067
Other 944 997
TOTAL OTHER INCOME 2,698 4,064
page 63
Section 64
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 4. Grants, Subsidies, Contributions and Donations
2019 2018
Notes $'000 $'000
Grants & Subsidies
Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in
which Council gains control over them.
Where grants are received that are reciprocal in nature, revenue is recognised as the various performance
obligations are fulfilled under the funding agreement. Council does not currently have any reciprocal grants.
Non-cash contributions
Non-cash contributions with a value in excess of the recognition thresholds, are recognised as revenue and as
non-current assets. Non-cash contributions below the thresholds are recorded as revenue and expenses.
Physical assets contributed to Council by developers in the form of road works, stormwater, infrastructure and
park equipment are recognised as revenue when the development becomes "on maintenance" (i.e. the Council
obtains control of the assets and becomes liable for any ongoing maintenance) and there is sufficient data in the
form of drawings and plans to determine the approximate specifications and values of such assets. All non-cash
contributions are recognised at the fair value of the contribution received on the date of acquisition.
Cash contributions
Council receives cash contributions from property developers to construct assets such as roads and footpaths.
Where agreements between Council and the developers relating to these contributions are determined to fall
within the scope of AASB Interpretation 18 Transfers of Assets from Customers, these contributions are
recognised as revenue when the related service obligations are fulfilled.
(a) Recurrent
General Purpose Grants 2,269 2,200
State Government Subsidies and Grants 742 1,089
Commonwealth Government Subsidies and Grants 2,398 2,673
Donations 28 60
Contributions 3 11
Other Non-Government Subsidies 7 19
TOTAL RECURRENT GRANTS, SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 5,447 6,052
(b) Capital
State Government Subsidies and Grants 1,437 3,016
Commonwealth Government Subsidies and Grants 1,468 1,411
Contributions 2,235 1,942
Non-Monetary - Developer Assets contributed by Developers at Fair Value 3,556 4,906
TOTAL CAPITAL GRANTS, SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 8,696 11,275
page 64
Section 65
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 5. Employee Benefits
2019 2018
Notes $'000 $'000
Wages and Salaries 24,940 24,162
Annual, Sick and Long Service Leave Entitlements 4,303 3,995
Superannuation 22 3,275 3,110
Councillors Remuneration 548 536
33,066 31,803
Other Employee Related Expenses 1,491 1,462
34,557 33,265
Less: Capitalised Employee Expenses (2,595) (2,805)
TOTAL EMPLOYEE BENEFITS 31,962 30,460
Councillor remuneration represents salary, and other allowances paid in respect of
carrying out their duties.
Additional information:
Total Employees at Year End:
Administration Staff 282 273
Depot and Outdoors Staff 93 92
Total Full time Equivalent Employees 375 365
Total Elected Members 7 7
Note 6. Materials and Services
2019 2018
Administration Supplies and Consumables 724 821
Audit Services * 147 198
Communications and IT 828 709
Consultancy Services 1,117 1,521
Contract Services 19,314 19,928
Commission Paid 954 783
Donations, Contributions and Prizes 3,295 3,576
Electricity 1,695 1,713
Fleet Operating Costs 1,639 1,735
Grants Paid to Community Organisations 893 940
Insurance 509 481
Legal Expenses 1,158 1,163
Operating Leases - Rentals 135 144
Software and Maintenance 1,809 1,034
Water and Sewerage Costs 967 950
Other Materials and Services 3,960 3,806
Less: Capitalised Internal Expenses (251) (485)
TOTAL MATERIALS AND SERVICES 38,893 39,017
* Total audit fees quoted by the Queensland Audit Office relating to the 2018-19 financial statements were $134,800 (2018: $131,500).
page 65
Section 66
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 7. Finance Costs
2019 2018
Notes $'000 $'000
Finance costs - Queensland Treasury Corporation 3,382 2,104
Bank Charges 131 118
Impairment of Debts 1 13
Landfill Restoration 1,632 94
TOTAL FINANCE COSTS 5,146 2,329
Note 8. Capital Expenses
2019 2018
(a) Revaluation decrement
Downwards Revaluation of Property, Plant and Equipment 12 - 23,437
Downwards Revaluation of Investment Property 11 867 238
867 23,675
(b) Other capital expenses
Loss on Write-Off of Assets and Disposal of Assets 2,417 599
2,417 599
TOTAL CAPITAL EXPENSES 3,284 24,274
page 66
Section 67
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 9. Cash and Cash Equivalents
2019 2018
Notes $'000 $'000
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the year
end, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash which are subject to an
insignificant risk of changes in value, and bank overdrafts.
Cash at Bank and on Hand 209 363
Cash Equivalent Assets
- Deposits at Call 39,772 57,830
- Term Deposits 16,000 6,000
TOTAL CASH ASSETS AND CASH EQUIVALENTS 55,981 64,193
Restricted Cash and Cash Equivalents
Council's Cash and Cash Equivalents are subject to a number of Internal and External Restrictions that limit
amounts available for discretionary of future use.
These include:
Externally imposed expenditure restrictions at the reporting date relate to the
following cash assets:
Unspent Government Grants and Subsidies 97 186
Unspent Levy Funds 5,595 6,219
Unspent Developer Contributions 980 717
Unspent Carbon Tax 502 502
Total External Restrictions 7,174 7,625
Internally imposed expenditure restrictions at the reporting date relate to the following assets:
Future Asset Replacement - 2,702
Natural Disaster Rehabilitation 2,487 2,396
Waste Management 3,714 4,334
Specific Purpose Recurrent 1,482 1,873
Total Internal Restrictions 7,683 11,305
Total Unspent Restricted Cash and Cash Equivalents 14,857 18,930
Cash and deposits at call are held in the Commonwealth Bank in a normal business cheque account.
On call accounts are also held with QTC. Deposits at call earned variable interest over varying terms at interest
rates of between 1.20% and 3.20%.
Investments
Term deposits with a maturity date great than three months post reporting date are treated as investments, with
deposits of less than three months being reported as cash equivalents.
page 67
Section 68
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 10. Trade and Other Receivables
2019 2018
Receivables
Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed
purchase price / contract price. Settlement of these amounts is required within 30 days from invoice date.
The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be
able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance
costs. The amount of the impairment is the difference between the asset’s carrying amount and the present value
of the estimated cash flows discounted at the effective interest rate.
All known bad debts were written-off at 30 June 2019. Subsequent recoveries of amounts previously written off in
the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is
recovered in a subsequent period it is recognised as revenue.
Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property
to recover outstanding rate debts, Council does not impair any rate receivables.
2019 2018
Notes $'000 $'000
Current
Rateable Revenue and Utility Charges 4,461 4,420
Other Debtors 4 1
GST Recoverable 632 1,153
Accrued Revenue 2,087 1,907
Prepayments 2,455 2,208
Fees and Charges 1,447 1,406
Loans and Advances to Community Organisations 125 -
Total 11,211 11,095
Less: Provision for Impairment
Fees and Charges (4) (2)
Total Provision for Impairment - Receivables (4) (2)
TOTAL CURRENT TRADE AND OTHER RECEIVABLES 11,207 11,093
Non-Current
Loans and Advances to Associates 49,218 49,218
Loans and Advances to Community Organisations 500 -
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES 49,718 49,218
Interest is charged on outstanding rates at a rate of 11% per annum. There is no concentration of credit risk for
rates and utility charges, fees and other debtors receivable.
A loan agreement for the subordinated debt was executed on the 21 June 2013. The interest only loan structure
terminates on the 30 June 2033 with the interest 'rate set by QTC annually. Applicable interest rate for 2019 was
5.02% (2018: 5.18%).
page 68
Section 69
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 11. Investment Property
2019 2018
Notes $'000 $'000
Investment property is property held for the primary purpose of earning rentals and/or capital appreciation.
Investment property is measured using the fair value model. This means all investment property is initially
recognised at cost (including transaction costs) and then subsequently revalued annually at the balance date.
Gains or losses arising from changes in the fair value of investment property are recognised as incomes or
expenses respectively for the period in which they arise. Investment property is not depreciated and is not tested
for impairment.
Fair value at beginning of financial year 4,167 4,405
Revaluation decrement (867) (238)
TOTAL INVESTMENT PROPERTY 3,300 4,167
Operating expenses in respect of investment property are reported in Note 6 and 23.
Note 12. Property, Plant and Equipment
2019 2018
Recognition
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and accumulated impairment losses. Items of property, plant and equipment with a total value of less
than $5,000, $1,000 for computer equipment and $15,000 for Buildings, except for land and network assets (which
have a recognition threshold of $1) are treated as an expense in the year of acquisition. All other items of property,
plant and equipment are capitalised.
The classes of property, plant and equipment recognised by Council are reported in the table contained in this note.
Acquisition of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design
fees and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair
value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair
value is the price that would be received to sell the asset in an orderly transaction between market participants at
the measurement date.
Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life
of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major
component of an asset to maintain its service potential is capitalised.
page 69
Section 70
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 12. Property, Plant and Equipment (continued)
2019 2018
Valuation
Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis,
at fair value, in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value requirements.
Other plant and equipment and work in progress are measured at cost.
Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of
each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging
independent, professionally qualified valuers to determine the fair value for each class of property, plant and
equipment assets every three to five years. This process involves the valuer physically sighting a representative
sample of Council assets across all asset classes and making their own assessments of the condition of the assets
at the date of inspection.
Council uses internal engineers to assess the condition and cost assumptions associated with all infrastructure
assets, the results of which are considered in combination with the relevant indices independently published for the
Sunshine Coast region. Together these are used to form the basis of a management valuation for infrastructure
asset classes in each of the intervening years. With respect to the valuation of the land and improvements, and
buildings classes in the intervening years, management engage independent, professionally qualified valuers to
perform a "desktop" valuation. A desktop valuation involves management providing updated information to the
valuer regarding additions, deletions and changes in assumptions such as useful life, residual value and condition
rating. The valuer then determines suitable indices which are applied to each of these asset classes.
Capital work in progress
The cost of property, plant and equipment being constructed by the Council includes the cost of purchased
services, materials, direct labour and an appropriate proportion of labour overheads.
Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment
assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable
asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management
believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an
asset is completed and commissioned ready for use.
Where assets have separately identifiable components that are subject to regular replacement, these components
are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally
assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated
over the remaining useful life of the asset to the Council.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter.
Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are
reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of
consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The
condition assessments performed as part of the annual valuation process for assets measured at depreciated
current replacement cost are used to estimate the useful lives of these assets at each reporting date. Road
formation has an unlimited life and is not subject to depreciation. The range of estimated useful lives for each class
of asset are detailed in the table contained in this note.
page 70
Section 71
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 12. Property, Plant and Equipment (continued)
Other
30 June 2019 Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water Infrastructure Total
Progress Equipment Network
Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 39,687 - - 12,679 - - - 52,366
Opening Gross Balance - at Fair Value - 141,746 80,852 - 555,935 178,393 92,063 1,048,989
Opening Gross Balance as at 1 July 2018 39,687 141,746 80,852 12,679 555,935 178,393 92,063 1,101,355
Additions* 24,848 - - - - - - 24,848
Contributed Assets - 481 - - 1,160 1,723 192 3,556
Disposals 5,10 - - (73) (706) - - - (779)
Write-offs 5,10 (521) - - - (3,766) (13) (324) (4,624)
Revaluation Decrements to P&L 8 - - - - - - - -
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 19 - 9,070 - - - - - 9,070
Work in Progress Capitalisation* (24,308) 411 3,387 1,930 17,854 210 516 -
Internal Transfers to / from other Asset Classes - - - - - - - -
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2019 39,706 - - 13,903 - - - 53,609
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2019 - 151,708 84,166 - 571,183 180,313 92,447 1,079,817
Total Gross Value of Property, Plant and Equipment as at 30 June 2019 39,706 151,708 84,166 13,903 571,183 180,313 92,447 1,133,426
Opening Accumulated Depreciation as at 1 July 2018 - - 20,645 3,459 114,440 58,251 37,955 234,750
Depreciation Provided in the Period 8 - - 1,478 1,165 7,402 2,236 3,208 15,489
Depreciation on Disposals 5,10 - - - - - - - -
Depreciation on Write-offs 5,10 - - (36) (236) (2,205) - (248) (2,725)
Revaluation Decrements to P&L 8 - - - - - - - -
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 19 - - - - - - - -
Total Accumulated Depreciation of
Property, Plant and Equipment - - 22,087 4,388 119,637 60,487 40,915 247,514
Total Impairment of
Property, Plant and Equipment - - - - - - - -
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2019 - - 22,087 4,388 119,637 60,487 40,915 247,514
Consolidated Book Value as at 30 June 2019 39,706 151,708 62,079 9,515 451,546 119,826 51,532 885,912
Other Information
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals - - 2,393 2,102 14,414 418 1,362 20,689
Other Additions - 608 576 166 2,271 35 503 4,159
page xx
Total Asset Additions - 608 2,969 2,268 16,685 453 1,865 24,848
page 71
Section 72
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 12. Property, Plant and Equipment (continued)
Other
30 June 2018 Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water Infrastructure Total
Progress Equipment Network
Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 18,059 - - 12,084 - - - 30,143
Opening Gross Balance - at Fair Value - 130,649 79,645 - 575,715 169,262 87,188 1,042,459
Opening Gross Balance as at 1 July 2017 18,059 130,649 79,645 12,084 575,715 169,262 87,188 1,072,602
Additions* 26,981 - - - - - - 26,981
Contributed Assets - 1,640 1,025 - 1,358 883 - 4,906
Disposals 5,10 - - - (263) - - - (263)
Write-offs 5,10 - - (121) - (461) (245) (345) (1,172)
Revaluation Decrements to P&L 8 - - - - (20,822) - - (20,822)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 19 - 7,135 - - - 7,606 4,382 19,123
Work in Progress Transfers (5,353) 2,322 303 858 228 887 755 -
Internal Transfers to / from other Asset Classes - - - - (83) - 83 -
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2018 39,687 - - 12,679 - - - 52,366
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2018 - 141,746 80,852 - 555,935 178,393 92,063 1,048,989
Total Gross Value of Property, Plant and Equipment as at 30 June 2018 39,687 141,746 80,852 12,679 555,935 178,393 92,063 1,101,355
Opening Accumulated Depreciation as at 1 July 2017 - - 19,252 2,471 104,969 53,751 33,301 213,744
Depreciation Expense 8 - - 1,417 1,075 7,096 2,146 3,064 14,798
Disposals 5,10 - - - (87) - - - (87)
Write-offs 5,10 - - (24) - (239) (130) (202) (595)
Revaluation Decrements to P&L 8 - - - - 2,614 - - 2,614
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 19 - - - - - 2,484 1,792 4,276
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2018 - - 20,645 3,459 114,440 58,251 37,955 234,750
Consolidated Book Value as at 30 June 2018 39,687 141,746 60,207 9,220 441,495 120,142 54,108 866,605
Other Information
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals - - 2,247 772 12,394 2,603 655 18,671
Other Additions - 2,119 2,172 420 2,543 297 759 8,310
page xx
Total Asset Additions - 2,119 4,419 1,192 14,937 2,900 1,414 26,981
page 72
Section 73
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements
(i) Recognised fair value measurements
Council measures and recognises the following assets at fair value on a recurring basis:
- Investment Property
- Land
- Buildings
- Road and Bridge Network
- Storm Water
- Other Infrastructure Assets
Council does not measure any liabilities at fair value on a recurring basis.
Council has assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the other
notes.
Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred.
The fair value of borrowings disclosed in Note 16 is provided by the Queensland Treasury Corporation (QTC) and
represents the market value to extinguish the debt at balance date. This information was provided by QTC and
represents the contractual undiscounted cash flows at balance date. Liquidity risk information on Council's borrowings is
also disclosed in Note 30.
The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to
their short-term nature.
In accordance with AASB 13 Fair Value Measurements are categorised on the following basis:
- Level 1 - Fair value based on quoted prices in active markets for the asset or liability
- Level 2 - Fair value based on inputs that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices).
- Level 3 - Fair value based on unobservable inputs for the asset and liability.
The fair values of the assets are determined using valuation techniques which maximise the use of observable data,
where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an
asset are observable, the asset is included in Level 2. If one or more of the significant inputs is not based on observable
market data, the asset is included in Level 3. This is the case for Council infrastructure assets, which are of a specialist
nature for which there is no active market for similar or identical assets. These assets are valued using a combination of
observable and unobservable inputs.
The table below presents all items that are measured and recognised within the Statement of Financial Position at fair
value. In accordance with AASB 13, all fair value measurements are on a recurring basis and categorised as either Level
2 or Level 3 fair value measurements. Council does not have any assets or liabilities measured at fair value which meet
the criteria for categorisation as Level 1.
page 73
Section 74
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements (continued)
(1) The following table presents all assets and liabilities that have been measured and recognised at
fair values:
Fair Value
Measurement using:
Level 1 Level 2 Level 3 Total
Date Quoted Significant Significant
of latest prices in observable unobservable
valuation active mkts inputs inputs
2019 $'000 $'000 $'000 $'000
Property, Plant and Equipment
- Land 31/03/18 - 7,228 144,480 151,708
- Buildings 30/06/15 - - 62,079 62,079
- Road and Bridge Network 31/03/18 - - 451,546 451,546
- Storm Water 30/06/15 - - 119,826 119,826
- Other Infrastructure Assets 30/06/16 - - 51,532 51,532
Investment
- Asset Class Property
here… 30/06/19 3,300 - 3,300
Total Property, Plant and Equipment - 10,528 829,463 839,991
valuation active mkts inputs inputs
2018 $'000 $'000 $'000 $'000
Property, Plant and Equipment
- Land 31/03/18 - 4,085 137,661 141,746
- Buildings 30/06/15 - - 60,207 60,207
- Road and Bridge Network 31/03/18 - - 441,499 441,499
- Storm Water 30/06/15 - - 120,142 120,142
- Other Infrastructure Assets 30/06/16 - - 54,104 54,104
Investment
- Asset Class Property
here… 30/06/18 4,167 - 4,167
Total Property, Plant and Equipment - 8,252 813,613 821,865
(2) Transfers between Level 1 and Level 2 Fair Value Hierarchies
During the year, there were no transfers between Level 2 and Level 3 Fair Value hierarchies for recurring fair
value measurements.
Council's policy for determining transfers between Fair Value hierarchies is at the end of the reporting period.
page 74
Section 75
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements (continued)
(3) Valuation techniques used to derive Level 2 and Level 3 Fair Values
Where Council is unable to derive Fair Valuations using quoted market prices of identical assets
(ie. Level 1 inputs) Council instead utilises a spread of both observable inputs (Level 2 inputs) and
unobservable inputs (Level 3 inputs).
The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:
Infrastructure, Property, Plant and Equipment
Land (Level 2 and 3)
The fair value of land was last comprehensively valued at 31 March 2018 by independent valuers AssetVal Pty Ltd.
Fair values have been derived based on a combination of market approach and direct comparison by analysing land
sales occurring over the past year within the Noosa Shire Council area.
Where there was an active and liquid market as evidenced by sales transactions of similar property types, a market
approach by way of direct comparison or income methods can be utilised, and are accepted valuation methodologies
under AASB 13. If a market approach is adopted, the valuation is deemed to be a Level 2 input.
The direct comparison method which is considered a Level 2 input on the fair value hierarchy, involves the analysis of
sales evidence and comparisons with the subject land taking into account matters such as area, location and other
general site characteristics. Direct Comparison approach was utilised in the assessment for all Council land assets,
however, the fair value measurement has been either a Level 2 or 3, depending on the assumptions as to:
- Whether the land is subject to restrictions as to use and/or sale;
- Whether there is no active market.
Land that is utilised for footpath or access restriction purposes, land that is a volumetric title, or due to its general
characteristics land that has no observable active market have been assessed as a Level 3.
Council applied on index rate of 6.4% to the value of land assets for the period 1 April 2018 to 31 March 2019. This
resulted in an increase in value of $9.07 million.
page 75
Section 76
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements (continued)
Buildings (Level 3)
The fair value of Buildings were last comprehensively valued at 30 June 2015 by independent registered valuers
Australia Pacific Valuers.
For the majority of Council's buildings, there is no active market due to the specialised nature of the assets and the
services they provide. Due to the predominately specialised nature of local government buildings, the valuations have
been undertaken using a cost approach. This is deemed to be a Level 3 input.
Under this approach the cost to replace the asset is calculated and then adjusted to take account of accumulated
depreciation. The valuer disaggregated the building into different components and for each component determined a
value based on the interrelationship between a range of factors. These include asset condition, legal and commercial
obsolescence and the determination of key depreciation related assumptions such as pattern of consumption and future
economic benefit.
Inputs to the valuation include the design and construction, average cost of construction, condition and consumption
score for each component. Where these are supported by observable evidence obtained via inspection and market
evidence they have been classified as a Level 2 inputs. The unobservable inputs (such as estimates pattern of
consumption and (based on the asset consumption score) its relationship to the assessed level of remaining service
potential of the depreciable amount, required extensive professional judgement and impacted significantly on the final
determination of fair value. As these inputs are significant to the valuation the overall valuation has been classified as
Level 3.
The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and
were then updated to take into account the experience and understanding of Noosa Shire Council's own engineers, asset
management and finance staff. The results of the valuation were further evaluated by confirmation against Noosa Shire
Council's own understanding of the assets and the level of remaining service potential.
Council applied an index rate to the value of Buildings for the period to 31 March 2017. Index rates for the period from 1
April 2017 to 30 June 2019 shows no significant material changes and therefore the values are considered still at fair
value. As a result of this, no indexation has been applied to this class for 2018/19.
Other Infrastructure Assets (Level 3)
The fair value of Other Infrastructure was last comprehensively valued as at 30 June 2016 by Aurecon Australia Pty Ltd.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
Level 3 unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
Aurecon's cost database or the Rawlinson 2014 edition of the Australian Construction Handbook.
Council applied an index rate to the value of Other Infrastructure for the period to 31 March 2018. Index rates for the
period from 1 April 2018 to 30 June 2019 shows no significant material changes and therefore the values are considered
still at fair value. As a result of this, no indexation has been applied to this class for 2018/19.
Accumulated Depreciation
In determining the level of accumulated depreciation, assets are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 76
Section 77
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements (continued)
Infrastructure Assets (Level 3)
Due to the specialised nature of Council's infrastructure assets and the services they provide, there is no active
measurable market. The fair value of all infrastructure assets is determined on the basis of replacement of a new asset or
modern equivalent.
Current Replacement Cost (CRC) is measured by reference to the lowest cost at which the gross economic benefits of
the asset could be obtained in the normal course of business. Where existing assets were over designed, had excess
capacity or where redundant an adjustment was made so that the resulting valuation reflected the cost of replacing the
existing economic benefits based on an efficient set of modern equivalent assets to achieve the required level of service
output within the Council's planning horizon.
Infrastructure assets are comprehensively revalued every three to five years, based on component unit rates developed
in line with asset renewal methods.
Specific Valuation Techniques used to value Council Infrastructure Assets comprise:
Road and Bridge Network - current replacement cost
Roads (Level 3)
The fair value of Roads and Bidges was last comprehensively valued at 31 March 2018 by independent valuers AssetVal
Pty Ltd.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
'Level 3' unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
AssetVal's cost database or the Rawlinson 2017 edition of the Australian Construction Handbook.
Council uses 3 distinct location factors categorising its road infrastructure into urban, rural and commercial/industrial.
Roads are further categorised as sealed or unsealed and managed in segments. All road segments are then further
componentised into the sub classes of assets that make up each segment, i.e. Road Surface, Road pavement - base,
Road pavement - sub-base, Road shoulder, Formation, Kerbs, footpaths etc. Each asset unit rate is determined on cost
to construct, material type and useful life to facilitate valuation and depreciation.
Road construction index rates for the period since last valuation to 30 June 2019 shows no significant material changes
and therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class
for 2018/19.
Accumulated Depreciation
In determining the level of accumulated depreciation, roads are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 77
Section 78
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 13. Fair Value Measurements (continued)
Bridges (Level 3)
The fair value of Roads and Bidges was last comprehensively valued at 31 March 2018 by independent valuers AssetVal
Pty Ltd.
All bridges, with exception to 3 major bridges, were valued based on unit rates developed according to varying material
types used for construction, as well as the deck area, size and length of construction. Construction estimates were
determined on a similar basis to roads. Significant bridge structures were individually assessed by AssetVal Ply Ltd.
Bridge construction index rates for the period since last valuation to 30 June 2019 shows no significant material changes
and therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class
for 2018/19.
Accumulated Depreciation
In determining the level of accumulated depreciation, bridges are disaggregated into significant components which
exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Stormwater (Level 3)
A comprehensive valuation of stormwater infrastructure was undertaken by independent valuers Aurecon Australia Pty
Ltd effective 30 June 2015. As there is a significant level of professional judgement used in determining the valuation due
to the level of unobservable data, the valuation of drainage assets has been determined as Level 3.
The fair value unit rates were determined using the prevailing market costs for supply and installation of similar assets or
their modern equivalent. The methodology for calculation of unit rates from first principles consists of breaking down each
asset into its cost components such as demolition, reinstatement, excavation, construction, delivery and installation. The
models used to determine the unit rates included internal selection of variables for asset size, depth, location and soil
type.
Council applied an index rate to the value of Stormwater for the period to 31 March 2018. Index rates for the period from
1 April 2018 to 30 June 2019 shows no significant material changes and therefore the values are considered still at fair
value. As a result of this, no indexation has been applied to this class for 2018/19.
Accumulated Depreciation
In determining the level of accumulated depreciation. stormwater assets are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Investment Property
Investment Property was valued at fair value by AEC Group Limited, an independent professionally qualified valuation
firm, as at 30 June 2019.
A market-based approach was applied to determine the fair value of investment property. The two calculation
methodologies underpinning this approach by the valuation firm are the capitalisation rate valuation approach and the
discounted cashflow valuation approach.
page 78
Section 79
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 14. Intangible Assets
2019 2018
Notes $'000 $'000
Intangible Assets are as follows;
Computer Software
Opening Gross Carrying Value 3,087 2,831
Acquired at Cost - 256
Disposals - -
Closing Carrying Value 3,087 3,087
Work In Progress 4,355 3,135
Closing Gross Carrying Value 7,442 6,222
Opening Accumulated Amortisation Balance (1,173) (851)
Amortisation in the period 8 (316) (322)
Closing Accumulated Amortisation Balance (1,489) (1,173)
Net Book Value 5,953 5,049
TOTAL INTANGIBLE ASSETS - NET BOOK VALUE 5,953 5,049
Software assets have a finite life estimated at 10 years.
Straight line amortisation has been used with no residual value.
Note 15. Trade and Other Payables
2019 2018
Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed
purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are
unsecured and are generally settled on 30 day terms.
Liabilities - Employee Benefits
Employee related accruals comprise annual leave, long service leave and accrued salaries and wages in
respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are
assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the
liability is treated as a current liability. Otherwise the liability is treated as non-current.
Annual leave
A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on
current wage and salary levels and includes related employee on-costs. Amounts not expected to be settled
within 12 months are calculated on projected future wage and salary levels and related employee on-costs, and
are discounted to present values. This liability represents an accrued expense. As council does not have an
unconditional right to defer this liability beyond 12 months annual leave is classified as a current liability.
page 79
Section 80
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 15. Trade and Other Payables (continued)
2019 2018
Notes $'000 $'000
Current
ATO - Net GST Payable 106 109
Accruals 3,279 5,183
Trade Creditors 2,332 2,715
Employee Related Accruals 1,249 1,237
Annual Leave 2,543 2,349
Other Entitlements 85 88
TOTAL CURRENT TRADE AND OTHER PAYABLES 9,594 11,681
Note 16. Borrowings
2019 2018
Loans payable are measured at amortised cost using the effective interest rate method. The effective interest rate
is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument. Borrowing costs, which includes interest calculated using the effective interest method and
administration fees, are expensed in the period in which they arise. Costs that are not settled in the period in which
they arise are added to the carrying amount of the borrowing.
All borrowing costs are expensed in the period in which they are incurred.
Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the
liability for at least 12 months after the balance date.
Current
Loans - Queensland Treasury Corporation 3,112 3,969
TOTAL CURRENT BORROWINGS 3,112 3,969
Non-current
Loans - Queensland Treasury Corporation 21,120 32,171
TOTAL NON-CURRENT BORROWINGS 21,120 32,171
page 80
Section 81
Financial Statements 2019
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 16. Borrowings (continued)
2019 2018
Notes $'000 $'000
Reconciliation of Loan Movements for the year
Loans - Queensland Treasury Corporation
Opening balance at beginning of financial year 36,141 38,036
Loans Raised - 1,165
Loan Interest Capitalised in Period 3,382 2,104
Principal Repayments (15,291) (5,164)
Book value at end of financial year 24,232 36,141
The QTC loan market value at the reporting date was $27,668,386 (2018: $40,141,537). This represents the
value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no
provision is required to be made in these accounts. No assets have been pledged as security by the council for
any liabilities.
Borrowings are all in $AUD and are underwritten by the Queensland State Government.
Note 17. Provisions
2019 2018
Long Service Leave
Long service leave liability is measured as the present value of the estimated future cash outflows to be made
in respect of services provided by employees up to the reporting date. The value of the liability is calculated
using current pay rates and projected future increases in those rates and includes related employee on-costs.
The estimates are adjusted for the probability of the employee remaining in the Council's employment or other
associated employment which would result in the Council being required to meet the liability. Adjustments are
then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value.
The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date are
used to discount the estimated future cash outflows to their present value.
Where employees have met the prerequisite length of service and council does not have an unconditional right
to defer this liability beyond 12 months long service leave is classified as a current liability. Otherwise it is
classified as non-current.
Restoration Provisions
A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is probable
the Council will be liable, or required, to incur such a cost on the cessation of use of the facility. This liability is
provided in respect of Quarries and Landfill sites.
The provision is measured at the expected cost of the work required discounted to current day values using an
appropriate rate. The current capital market yield bond rate is considered an appropriate rate with a maturity
date corresponding to the anticipated date of restoration.
page 81
The text continues on section 82.