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2019-08-12 General Committee Agenda
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AGENDA
General Committee
Meeting
Monday, 12 August 2019
commencing at 10am
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Frank Wilkie (Chair), Jess Glasgow, Ingrid Jackson,
Joe Jurisevic, Frank Pardon, Brian Stockwell, Tony Wellington
“Noosa Shire – different by nature”
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Full text of the other 67 sections
Section 2
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES -
PRESENTATIONS -
ITEMS REFERRED FROM PLANNING & ENVIRONMENT COMMITTEE -
1 NOOSA COUNCIL SUBMISSION TO QUEENSLAND GOVERNMENT’S
QUEENSLAND ECOTOURISM TRAILS PROGRAM – COOLOOLA GREAT
WALK
(Planning & Environment Committee Agenda, 6 August 2019, Item 3, Page 51)
Reason for referral – For further information
ITEMS REFERRED FROM SERVICES & ORGANISATION COMMITTEE -
2 REVIEW OF COUNCIL MEETING LIVE STREAMING AND VIDEO OPERATIONS
(Services & Organisation Committee Agenda, 6 August 2019, Item 5, Page 45)
Reason for referral – Significance of the issue
3 REVIEW OF STANDING ORDERS FOR COUNCIL MEETINGS
(Services & Organisation Committee Agenda, 6 August 2019, Item 6, Page 52)
Reason for referral – Significance of the issue
4 UPDATE ON LOCAL GOVERNMENT LEGISLATIVE CHANGES AND REFORMS
(Services & Organisation Committee Agenda, 6 August 2019, Item 7, Page 59)
Reason for referral – Significance of the issue
5 REVIEW OF ISSUES RAISED IN NOTIFIED MOTION OF 20 JUNE 2019
(Services & Organisation Committee Agenda, 6 August 2019, Item 8, Page 67)
Reason for referral – Significance of the issue
REPORTS DIRECT TO GENERAL COMMITTEE 3
6 TRANSPORT STRATEGY RESOURCING 3
7 OREALLA CRESCENT BRIDGE - EXPRESSIONS OF INTEREST 6
8 COOROY HINTERLAND PLAYGROUND - PROJECT UPDATE - AUGUST 2019 10
9 COOROY HINTERLAND PLAYGROUND - EXPRESSIONS OF INTEREST 16
10 DBW19/0018 - DEVELOPMENT APPLICATION FOR BUILDING WORKS
(DETACHED HOUSE SEAWARD OF THE COASTAL BUILDING LINE), LOCATED
AT 54 SEAVIEW TERRACE, SUNSHINE BEACH 21
11 BUDGET REVIEW 1 (BR1) FOR THE 2019-20 FINANCIAL YEAR 39
12 FINANCIAL PERFORMANCE REPORT - JULY 2019 57
CLOSED SESSION -
Page 2 of 68
Section 3
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
REPORTS DIRECT TO GENERAL COMMITTEE
6 TRANSPORT STRATEGY RESOURCING
DOCUMENT INFORM AT ION
Author Director Infrastructure Services, Carl Billingham
Infrastructure Services Department
Index ECM/ Branch Management/ Planning & Infrastructure
Attachments Nil
EXECUTIVE SUMMARY
Nil
RECOMMENDATION
That Council note the report by Director Infrastructure Services to the General Committee
Meeting dated 12 August 2019 and adopt the change to Council’s organisational structure that
provides an increase of one part-time Project Officer for a three year fixed term in the
Infrastructure Services Department for the purpose of advancing the behaviour change
components of the Transport Strategy.
REPORT
The purpose of this report is to approve the appointment of a part-time level 3 Project Officer for
the coordination and monitoring of school and community behaviour change programs of the
Transport Strategy.
Transport Strategy Resourcing
The Transport Strategy is currently resourced by 1.6FTE. Following an assessment of current
workloads, and considering future demands on the existing Transport Strategy staff, it has been
identified that an additional part-time resource will be required to deliver the behaviour change
components of the Transport Strategy.
The need for this position was discussed at the Transport Strategy Steering Group meeting on 15
May 2019 with endorsement from the Steering Group to obtain an additional resource.
It is proposed that the new part-time resource would enable the existing resources to focus on
implementation of the Transport Strategy with the new resource focused primarily on community
engagement and travel behaviour change in schools and the wider community.
Behaviour change is an important part of the Transport Strategy and requires a dedicated
resource to focus on programs which foster and encourage an increase in sustainable transport
use. The existing resources are currently spread across a number of aspects of the Transport
Strategy and are not able to focus on school and community behaviour change.
Page 3 of 68
Section 4
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Part -Time Project Officer
It is proposed to engage a part-time Project Officer to supplement the resourcing of the Transport
Strategy.
Position Title: Project Officer - Transport
Broad Role:
To coordinate and monitor sustainable travel behaviour change programs with a range of
stakeholders including schools, business associations, community groups, tourism
operators, the general public and public transport providers.
To coordinate a range of sustainable transport events and assist with community and
stakeholder consultation and engagement.
Tenure: 3-year part-time position (3 days a week).
The position would be allocated to the Transport Strategy and be responsible for the following:
Coordinating education/marketing and behaviour change programs in schools and the
wider community and monitoring the effectiveness of the programs.
Assisting with consultation and engagement with internal and external stakeholders.
Developing, managing and distributing educational and promotional materials that support
Council’s sustainable transport strategies.
Preparing and delivering public presentations to school groups and at community events.
Preparing project reports and other promotional materials such as posters, factsheets,
newsletters and social media content.
Event management to organise a range of sustainable transport events and activities,
particularly in schools across the region.
Assisting with the implementation of other Noosa Council Transport Strategy 2017-2027
initiatives as they arise.
Previous Council Consideration
Ordinary Meeting Minutes, 15 June 2017, Item 3, Page 13
That Council note the report by the Project Officer to the Services & Organisation Committee
Meeting dated 6 June 2017, and:
A. Adopt the Transport Strategy 2017-2027, provided at Attachment 1 to the report and
authorise the CEO to make minor changes as necessary;
B. Adopt the amended Transport Policy provided at Attachment 2 to the report; and
C. Request the Chief Executive Officer to report to a future Council meeting with an
Implementation Plan for the Transport Strategy and Transport Policy to ensure that tangible
actions can be undertaken in both the short and medium term following the adoption of the
Transport Strategy and Transport Policy.
Finance
It is proposed that the L3.1 part-time resource would be funded from the Sustainable Transport
Levy which stands at $2.5million as of end of March 2019.
Level 3.1 = $63,328.13 per annum
Pro rata 3 days = $37,997 per annum
Page 4 of 68
Section 5
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Risks & Opportunities
The Transport Strategy provides guidance for the next 10 years on addressing the transport
challenges faced in the Noosa Shire. Inadequate resourcing of the Strategy may result in delays
to effective implementation of the key behaviour change initiatives.
The new resource will focus on schools and community behaviour change initiatives allowing the
existing resources to focus on the other high level Transport Strategy initiatives e.g. public
transport network review, Mobility as a Service (MaaS), Go Noosa – Xmas & Easter, Go Noosa
App development, car parking management controls etc.
It is anticipated that this position would work in partnership with other departments in Council
including but not limited to: Community Development, Libraries, Environment and Sustainable
Development and Community Engagement.
Consultation
The need for this position was discussed at the Transport Strategy Steering Group meeting on 15
May 2019.
External Consultation - Community & Stakeholder
Transport Strategy Steering Group members:
Tourism Noosa
Hastings Street Association
Zero Emissions Noosa
Noosa Parks Association
Noosa Junction Association
Internal Consultation
Transport Strategy Steering Group members:
Mayor Tony Wellington
Cr Jackson
Brett de Chastel
Carl Billingham
Craig Eldridge
Kerri Contini
Adam Britton
Jo Ferris
People and Culture Officer
Departments/Sections Consulted:
X Chief Executive Officer Community Services Corporate Services
Executive Officer Director Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
X People and Culture Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 5 of 68
Section 6
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
7 OREALLA CRESCENT BRIDGE - EXPRESSIONS OF INTEREST
DOCUMENT INFORM AT ION
Author Project Officer, Mark Poynter
Infrastructure Services Department
Index ECM/ Projects (T1) / Orealla Cres Bridge BR62 Renew/Rehab - CAP.WORK
– 500793
ECM/Subject / Project Management / Roads
ECM/Subject/Roads management / Bridges
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Project Officer to the General Committee Meeting dated 12
August 2019 and authorise staff to call for Expressions of Interest for the Design and
Construction of the Orealla Crescent Bridge, Sunrise Beach.
REPORT
The purpose of this report is to discuss using an Expression of Interest (EOI) process for the
procurement and delivery of the Orealla Crescent Bridge project.
There are a number of factors influencing the development of an overall procurement strategy for
delivering the project that appears best-served by utilising an EOI process. These are as follows:
1. Design Process Outcomes
The Orealla Crescent Bridge project will ensure the structural integrity and subsequent
serviceability of the bridge for decades to come. Bridges by their nature have specific design
requirements and construction issues that require consideration and planning during the design
to ensure the best possible site outcomes.
During the project planning phase in 2017-2018, research was undertaken into emerging
technology remediation options which focused on the application of a Cathodic Protection (CP)
solution. Unfortunately emergent risks related to the CP solution were not identified by
consultants or project staff at this time. These centred on solution appropriateness, market
expertise, project cost control, design feasibility, and likely traffic and pedestrian impacts on the
surrounding area.
Consequently, Council staff have now investigated the appropriateness of alternative delivery
models including full replacement of the bridge.
Page 6 of 68
Section 7
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
2. Increased Federal Grant-Funding
Council successfully applied for grant-funding through the Federal Government 2018-2019
Heavy Vehicles and Bridges Renewal Program ($922k). Following negotiation with the Federal
Government on the constraints of using the original proposed Cathodic Protection delivery
model, additional grant funding of up to $2.3 million for the project was approved if required to
cover up to 50% of the project cost (revised total grant available $3.2 million). Contingent on this
funding is the requirement to have the project completed by October 2020.
3. Refinement of Cost Estimates
A high level concept design process, examining both remediation and replacement options, has
led to an initial understanding of likely capital costs for the project. Despite this, there remain a
number of unknowns, including costs associated with temporary relocation of utilities.
Project staff are continuing to develop a better understanding of the potential capital costs for the
project and options for best mitigating Council’s risks. Research into other, similar-sized bridges
recently delivered by both government and private developers in Southeast Queensland
(including the Sunshine Coast) indicated that Noosa’s estimations are in line with current trends.
Notwithstanding finalisation of these estimates, the initial financial assessment reveals that whilst
replacement will be a more expensive upfront cost compared to remediation, the additional grant
funds and lower annual maintenance costs for replacement result in favourable long term
outcomes for a replacement option.
4. Proposed Procurement Approach
There is concern that entering into a standard public tender process may not result in successful
tenders from the market, given the technical nature of the project delivery requirements and
associated risks on pricing, scheduling, quality and community management. A failure of the
tender process would lose several months of time out of this required delivery schedule, placing
significant pressure on the project as a revised procurement strategy is developed (refer further
discussion in Section 4). Current scheduling of activities necessary for procuring and delivering
the project allows enough to time to undertake an EOI process, provided this commences by
September 2019. This is therefore considered a lower risk-strategy from a procurement and
scheduling perspective.
An EOI process for project delivery that packages together the design requirements and overall
construction responsibility would lead to a better outcome for Council in terms of mitigating
financial risk, and allow a strong understanding of what the exact costs would be prior to project
commencement. A Design and Construct (or D&C) contracting model carried out by a suitably
capable contractor would be best developed via an EOI process.
5. Experience using EOI with the Park Road Boardwalk Project
The Park Road Boardwalk project was delivered in 2018. This involved the design and
construction of a replacement section of boardwalk between Park Road and Noosa National Park
carpark. This project involved a number of uncertain elements, especially with the design and
construction methodologies, and was initially offered to the market as a Public Tender. However,
this process did not lead to a successful outcome as a suitable contractor could not be identified.
The tender process was abandoned and the project subsequently went through an EOI process
to better understand what the market was capable of delivering. This was ultimately successful
as the process allowed a greater degree of information to develop for Council around value-for-
money, competition and capacity/capability considerations. However, there were significant
delays to the schedule as a consequence.
Page 7 of 68
Section 8
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
This project is similar in that there remains a level of uncertainty over the capability and execution
strategy of the market to deliver the infrastructure. An EOI process, proven to work with Park
Road, is similarly considered the best option for engaging with the market for this project.
Previous Council Consideration
Nil.
Finance
The 2019/20 budget includes $1.8 million for the Orealla Bridge project, with 50% funded from
grants and the remainder from cash reserves. The EOI process will clarify the additional cost to
undertake the works; which will also be 50/50 funded from both grants and cash reserves. Given
the timing of the EOI and the grant conditions, it is anticipated that any additional cost will be
incurred in the 2020/21 year, and not impact the current year 2019/20 capital works budget.
Risks & Opportunities
Key risks are broadly discussed above, however a further breakdown of specific risks is given as
follows:
Finance risks that have been identified include:
Capital Works Budget: the final costs for delivering the bridge are estimated to date, however
an EOI process is considered the best method for accurately capturing the delivery costs.
Contractor Premium: D&C type contracts can be expensive, as contractors add a number of
overheads for managing the risks associated with design and delivery. An EOI process will
allow Council to negotiate with preferred tenderers and seek feedback from the market on the
viability and cost-effectiveness of entering into this contracting model.
Time risks that have been identified include:
Schedule for delivery. Section 3 above notes the time-constraints as a result of the grant-
funding. Prioritisation of critical items that directly impact on the developed project schedule
will be continually implemented and updated as required. This includes procurement
activities, of which an EOI process is considered the lowest risk method for achieving the
project delivery in time.
Stakeholder risks that have identified include:
Community impacts during project execution. The project will receive a high degree of public
interest and scrutiny and likely prompt a discussion on overall outcomes and benefits. In
particular project costs associated with providing such infrastructure. The EOI process is
intended to provide Council with a high level of control over the final delivery methodologies
chosen, and ensures probity is embedded throughout.
Consultation
External Consultation
Telstra
Unitywater
Energex
Department of Infrastructure, Transport, Cities, and Regional Development
Internal Consultation
Report presented to the Capital Works Executive (CWE)
Page 8 of 68
Section 9
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Departments/Sections Consulted:
Chief Executive Officer Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries X Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement Building & Plumbing Services X Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 9 of 68
Section 10
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
8 COOROY HINTERLAND PLAYGROUND - PROJECT UPDATE - AUGUST 2019
DOCUMENT INFORM AT ION
Author Project Officer, Paul Brennan
Infrastructure Services Department
Index ECM/ Projects (T1) / Hinterland Priority Playground – CAP.WORK – 500551
ECM/Subject / Parks and Reserves
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Project Officer to the General Committee Meeting dated 12
August 2019 regarding the proposed Hinterland Playground at Cooroy and:
A. Note the general project update; and
B. Note the specific updates to the capital and operating cost estimates.
REPORT
The purpose of this report is to provide an update on progress to date on this project since the
previous report submitted to Council in October 2018. Both recent and upcoming activities are
discussed, along with a discussion on Capital and Operational Works budget estimates for
Council’s consideration.
1. PROJECT UPDATE – JULY 2019
a. Recent Activities: November 2018 – July 2019
The below is a list of activities undertaken since the last Project Update reported to Council in
October 2018:
Establishment of the Internal Working Group and External Reference Groups. The
establishment and membership of these groups was formally endorsed by Council at the
October 2018 Ordinary Meeting. First meetings were held in November 2018 and have
been held progressively since;
Councillor workshops were undertaken in January and July 2019 to provide an informal
update on the project and present the latest capital and operational budget estimates;
An application was submitted for the 2019-2021 Local Government Grants and Subsidies
Program (LGGSP) – notification of a successful outcome was advised in late May,
confirming the State will fund 60% of eligible project costs from July 2019;
Development of an Economic and Financial Analysis report by an external consultant to
review the community and economic needs for the project, the jobs that it will support
during construction and after, as well as the financial capacity and capability for Council to
deliver the project in addition to maintaining the project into the future. The findings in this
report were used to support the successful grant application;
Page 10 of 68
Section 11
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Finalisation of documentation outlining the preferred concept design for the playground with
expert architect;
Ongoing development of design documentation by Council design staff for future
improvements to the neighbouring streets and areas (pathways, carparking) to support the
playground and town centre;
Development of a procurement strategy for delivering the required construction works and
provide ongoing maintenance support (refer further discussion below);
Updated assessment of Capital Works budget and development of Operational Works
Budgets/Whole-of-life costs for the playground (refer further discussion below);
Commencement of a Development Application process to ensure town planning
requirements are satisfied;
Commencement of a flood study for the site by a specialist consultant;
Completion of contaminated land checks for the site – some minor follow-up activities are
ongoing and should be completed by August 2019;
Commencement of a dedicated project resource for assisting with communications and
community engagement;
Development of 3D imagery and ‘fly-through’ video of preferred concept design, for future
public release.
b. Project Schedule: Design, Procurement and Delivery
A detailed schedule for project delivery has been developed and is summarised as follows:
Concept Design process has been completed allowing detailed assessments of likely capital
and whole of life cost analysis as well as risk management strategies. The concepts plans
will now be released to the public for consultation;
A procurement strategy has been developed which promotes a series of contract packages
released to the market for pricing, which will cover different elements of the playground
infrastructure (for example, construction, early tree procurement, carparks). Note that the
details of this strategy, which includes an Expression of Interest process for the playground
delivery, is the subject of a separate report for consideration by Council;
Procurement activities will commence from August 2019 for the majority of the 2019/20
financial year to secure suppliers and contractor;
Construction of the playground is expected to begin in the second half of the 2020 calendar
year, and continue over the 2020/21 summer months. The actual delivery schedule for
construction activities is still to be finalised; however the grant funding conditions require
project completion by June 2021. At this stage we do not foresee significant risks in
achieving this deadline;
Carparks and Pedestrian Safety improvements are expected to be constructed in 2020 with
completion by the end of the calendar year.
2. PROJECT BUDGET
a. Capital Budget
The capital budget forecast submitted as part of the grant funding application was $4.85 million.
The final approved 60% grant funding included funding for eligible components of the project only
(equating to $4.65 million). The $200k of ineligible costs relate to detail design costs in addition to
the costs of the testing for contaminated land.
Page 11 of 68
Section 12
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
The carpark and pedestrian safety improvements works, identified previously as necessary
community infrastructure for the playground project, were included in the grant application and
subsequently form part of the overall capital cost. The latest estimate to deliver the playground
and carparks is broken down as follows:
Project Item Total Comments
Playground Finalise $4,451,000 To be finalised during procurement phase
Design
Delivery Based on latest concept design July 2019
(construction)
Contingency Contingency due to unknowns related to market
(10%) costs and utility services
Carparks & Finalise $399,000 To be finalised during procurement phase
Pathways Design
Improvements
Delivery Based on latest detailed designs July 2019
(construction)
Contingency Contingency due to unknowns related to
(10%) underground services
These estimates will continue to be refined as the procurement phase progresses.
b. Whole of Life Cost Analysis
In accordance with Council internal policy, a detailed analysis of the expected operating,
maintenance and depreciation costs for the playground infrastructure and services has been
developed with external support, along with extensive input from Council staff and design
consultants. The methodology used for modelling focused on a zero base approach associated
with allocating service levels needed to sustain an adequate level of annual maintenance, along
with more direct, fixed costs that could be drawn from recent experience with similar Council
infrastructure (for example: maintenance costs, electricity usage, security patrol, insurance,
contracted services).
The analysis adopted a worse case position regarding operations and maintenance to ensure
that financial sustainability impacts on Council and the community can be adequately considered.
Based on the analysis the graph below outlines the annual operating budget implications over the
next 10 years (noting that this is not a year on year increase provided funding occurs in year 1).
The annual operating budget impact equates to an estimated one off $11 or 1% increase in the
general rate.
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10
Operating Maintenance Depreciation
Page 12 of 68
Section 13
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Previous Council Consideration
Ordinary Meeting Minutes, 18 October 2018, Item 3 Page 15
That Council note the report by the Project Officer to the Services & Organisation Committee
Meeting dated 9 October 2018 regarding the Cooroy Hinterland Playground update and
establishment of project groups and:
A. Note the project update;
B. Approve the establishment and membership of an Internal Working Group for the
remainder of the project;
C. Appoint Councillors Pardon and Wilkie to the Cooroy Hinterland Playground External
Reference Group; and
D. Request that a further report be brought back to a future round of Council meetings
detailing the associated works, maintenance and whole of life costs related to the
Playground project.
Finance
Refer discussion on budgets in Section 2 above.
Risks & Opportunities
The Project Management Plan (PMP) has identified a number of key project risks as identified
below. These are regularly updated in the PMP and the Corporate Risk Register as the project
develops and its risk profile changes. A summary of current key risks is presented below:
Finance risks that have been identified include:
Capital Budget: the final costs for delivering the playground have yet to be determined
through market testing, and there is a risk these will exceed the budget requiring a scope
review. It is intended to allow the preferred contractor input into the final design development
to maximise cost efficiencies and foster innovation with a view to mitigating these risks and
delivering the project within the $4.85m budget.
Operational Budgets: the estimates noted above will require an additional source of funding
from Council as part of future budget processes.
Variation risks during design and construction. There will be a need to consider procurement
methods for the various project phases, the form of contracting to be used and the
appropriate selection of contingency amounts in order to minimise Council’s risk exposure to
potential cost overruns. The procurement plan is designed to mitigate this risk as much as
possible. Further detail on this strategy is discussed in a spate
Flooding. The playground is sited in a location prone to flooding. The design of the
playground will take this into account with flood-resilient infrastructure a required outcome,
along with a flood study by a specialist consultant on the impact of the site development on
local flooding generally. This study is currently underway.
Time risks that have been identified include:
Decision-making on project-related change. The project will need to consider change
management on the project and ensure timely decision-making is undertaken in order to not
delay the delivery schedule.
Schedule for delivery. The schedule to deliver the project requires a large number of tasks
and activities to be simultaneously undertaken in order to successfully deliver the playground
in the 2019/20 FY. Prioritisation of critical items that directly impact on the developed project
schedule will be continually implemented and updated as required.
Page 13 of 68
Section 14
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Safety Risks that have been identified include;
Risk-based play. The vision for the playground to date has included ongoing discussions
around the levels of risk-based play elements that should be incorporated, and how Council
can best engage with this when considering options for the design. The project design and
delivery team continue to review these on an ongoing basis, cognizant of the risk appetite
from Council on this, and the need for further consideration. A specialist risk consultant is
included as part of the consulting design team.
Risks to pedestrians and local traffic. The impact of the number of users of the playground
on the local streets and pathways in Cooroy town has been anticipated as potentially causing
problems with excessive carparking at the Library, unsafe pedestrian crossings along Maple
Street particularly adjacent to the Library, and unsafe ad-hoc carparking near the Cooroy
Creek bridge. Costed design solutions for mitigating these risks have been prepared to
minimise these risks.
Stakeholder risks that have identified include:
Playground does not meet community expectations. The External Reference Group will assist
in ensuring an ongoing dialogue with the community on what the playground design and
outcomes/benefits will be. In addition, a comprehensive Community Engagement Plan has
been developed.
Lack of stakeholder engagement. Whilst initial stakeholder engagement has already been
commenced by project staff, the establishment of the External Reference Group has assisted
with this process and ensures that key identified parties have been consulted, or will continue
to be consulted with, throughout the course of the project. The dedicated communication
resource will continue to work with Council on ensuring effective consultation occurs.
Contaminated Land. The industrial history of the site has resulted in concerns about possible
contaminated land issues. Ongoing investigations have been undertaken since 2018 and to
date, no significant issues with contaminants to the soil or groundwater at the location have
been detected. Some additional, follow-up testing is currently underway and is expected to
be finalised in the next two months.
Consultation
External Consultation - Community & Stakeholder
External Reference Group:
Cooroy Futures Group
Cooroy Chamber of Commerce
Cooroy Area Resident’s Association
Internal Consultation
Chief Executive Officer, Community Services, Corporate Services, Environment & Sustainable
Development, Infrastructure Services.
Page 14 of 68
Section 15
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Departments/Sections Consulted:
X Chief Executive Officer X Community Services X Corporate Services
X Executive Officer Director X Director
Executive Support Community Development X Financial Services
Community Facilities ICT
X Libraries & Galleries X Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services X Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement Building & Plumbing Services X Asset Management
Customer Service X Development Assessment X Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture X Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 15 of 68
Section 16
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
9 COOROY HINTERLAND PLAYGROUND - EXPRESSIONS OF INTEREST
DOCUMENT INFORM AT ION
Author Project Officer, Paul Brennan
Infrastructure Services Department
Index ECM/ Projects (T1) / Hinterland Priority Playground Design – CAP.WORK
500551 and ECM / Subject / Contracting Parks & Reserves
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Project Officer to the General Committee Meeting dated 12
August 2019 and authorise staff to call for Expressions of Interest for the Design, Construction
and Maintenance of the Cooroy Hinterland Playground.
REPORT
The purpose of this report is to discuss the proposal to use an Expression of Interest (EOI)
process for the procurement, delivery and follow-up maintenance of the Cooroy Hinterland
Playground project.
There are a number of factors influencing the development of an overall procurement strategy for
delivering the playground that appears best-served by utilising an EOI process. These are as
follows:
1. Design Process
The Cooroy Hinterland Playground project will deliver an iconic, nature-based, all-abilities
playground that encourages engagement with the environment, inspires the imagination of
children and adults alike, provides elements of risk-based adventure-play and offers a signature
destination for both local residents and tourists. As part of this there are a number of unique
and/or complex design requirements, including a highly-bespoke water-play area, public
amenities building, picnic shelters with BBQs and tables and a strong preference for timber play
elements.
During the project planning phase in 2017-2018, research was undertaken into similar
playgrounds and how they relate to the site in Cooroy. A number of emergent risks were
identified by project staff at this time. These centred around staff resourcing and expertise,
project cost control and design feasibility, and likely traffic and pedestrian impacts on the
surrounding area. It was decided the most effective way to work through these issues was by
engaging a suitably qualified consultant who could partner with Council to build-up the knowledge
necessary for adequately addressing the risks and provide a roadmap for moving the project
forward. A consultant was subsequently engaged through an Invitation to Quote process in
August 2018 and has been working with Council since. Part of the consultant’s brief was to
assist Council with developing procurement strategies for delivering the playground project,
based on their recent experience and current understanding of the market.
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Section 17
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
A detailed set of design drawings and supporting documentation has now been developed that
captures in an integrated way the strong vision for the playground site. These drawings detail
approximately 80% of the infrastructure, and have achieved the purpose of providing a greater
understanding of project delivery requirements. It has confirmed a likely complex procurement
and construction environment as the project moves forward, with a number of options for delivery
available that involve different levels of risk. It has been concluded by project staff that an
Expression of Interest (EOI) process would best suit refining the delivery model by fostering good
feedback from the market, and help mitigate the risks involved with uncertainties remaining over
the design and associated delivery costs.
2. Cost Estimation for Capital and Operational Budgets
The detailed design process has led to an initial understanding of likely capital costs for
constructing the playground and surrounding carparks. Despite this, there remains a number of
unknowns, including costs associated with delivering a number of bespoke play elements, such
as timber structures and water play. In addition, it was identified in 2018 that costs to maintain
the playground would likely be significant, with initial estimates placing it well beyond current
budget allocations for the Parks and Gardens operations. A detailed analysis was undertaken by
a separate consultant in January 2019, confirming a high annual operational cost impact,
following the opening of the playground. This is contingent on a number of factors which vary
depending on the sensitivity of the inputs used, including levels-of-service, whole-of-life costs for
various elements and frequency of maintenance required for the landscaping and play
equipment.
Project staff are continuing to develop a better understanding of the potential capital and
operational costs for the playground, and options for best mitigating Council’s risks. Research
into other, similar-sized playgrounds recently delivered by both government and private
developers in Southeast Queensland (including the Sunshine Coast) indicated a number of areas
for playground management that could be contracted outside of Council operations. As such, it
was felt an EOI process for project delivery that packages together the remaining design
requirements, the overall construction and a follow-up period of maintenance (2 years has been
nominated) would lead to a better outcome for Council in terms of mitigating financial risk, and
allow a strong understanding of what the exact maintenance requirements and costs would be
prior to the playground being handed back to Council. A Design-Construct-Maintain (or DCM)
contracting model carried out by a suitably capable contractor would be best developed via an
EOI process.
3. LGGSP Grant-funding
Council successfully applied for grant-funding through the State Government 2019-2021 Local
Government Grants and Subsidies Program (LGGSP), with the project receiving its first payment
of funds in July 2019. Contingent on this funding is the requirement to have the project completed
by June 2021. There is concern that entering into a standard public tender process may not
result in successful tenders from the market, given the highly bespoke nature of the project
delivery requirements and associated risks on pricing, scheduling, quality and maintenance. A
failure of the tender process would lose several months of time out of this required delivery
schedule, placing significant pressure on the project as a revised procurement strategy is
developed (refer further discussion in Section 4). Current scheduling of activities necessary for
procuring and delivering the project allows enough to time to undertake an EOI process, provided
this commences by September 2019. This is therefore considered a lower risk-strategy from a
procurement and scheduling perspective.
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Section 18
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
4. Experience with the Park Road Boardwalk project
The Park Road Boardwalk project was delivered in 2018. This involved the design and
construction of a replacement section of boardwalk between Park Road and Noosa National Park
carpark. This project involved a number of uncertain elements, especially with the design and
construction methodologies, and was initially offered to the market as a Public Tender. However,
this process did not lead to a successful outcome as a suitable contractor could not be identified.
The tender process was discontinued and the project subsequently went through an EOI process
to better understand what the market was capable of delivering. This was ultimately successful
as the process allowed a greater degree of information to develop for Council around value-for-
money, competition and capacity/capability considerations. However, there were significant
initial delays to the schedule as a consequence.
The playground project is similar in that there remains a level of uncertainty over the capability
and competiveness of the market to deliver a complex piece of infrastructure. An EOI process,
proven to work with Park Road, is similarly considered the best option for engaging with the
market for this project.
5. Other Procurement Activities related to the project
It should be noted there are a number of project-related activities under the current budget, some
of which can be delivered as early works, that staff believe are best-served by procuring
separately and through other means. These include:
Carparking and Pedestrian Safety Improvements:
These elements have been designed and documented by Council internally, and are
considered a separate package of works to the playground from a delivery perspective as
they are outside the playground site, low-risk and well-understood as to their design and
construction requirements. A standard Public Tender process is considered the best way
to construct these works.
Mature Trees and Plants:
Intrinsic in the playground design is extensive landscaping, including a selection of young
and mature trees and a high number of plants of different species types and growth
rates/ages. These can have long lead-times to procure, and have therefore been identified
as a potential separate package of works for early procurement. A Public Tender process
or Panel arrangement is best-suited to procuring these items.
Artisanal Elements:
The current design for the playground offers an opportunity to include a number of artisanal
items, from single art pieces to unique artistic elements integrated into the landscaping.
While this is still being developed conceptually, initial indications are a separate EOI
process would best serve identifying and commissioning suitable local artists for this.
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Section 19
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Previous Council Consideration
Ordinary Meeting Minutes, 18 October 2018, Item 3, Page 15
That Council note the report by the Project Officer to the Services & Organisation Committee
Meeting dated 9 October 2018 regarding the Cooroy Hinterland Playground update and
establishment of project groups and:
A. Note the project update;
B. Approve the establishment and membership of an Internal Working Group for the
remainder of the project;
C. Appoint Councillors Pardon and Wilkie to the Cooroy Hinterland Playground External
Reference Group; and
D. Request that a further report be brought back to a future round of Council meetings
detailing the associated works, maintenance and whole of life costs related to the
Playground project.
Finance
Capital and Operational cost implications are discussed in Section 2 above.
Risks & Opportunities
Key risks are broadly discussed above, however a further breakdown of specific risks is given as
follows:
Finance risks that have been identified include:
Capital Works Budget: the final costs for delivering the playground have yet to be
determined, however an EOI process is considered the best method for accurately
capturing the delivery costs.
Operational Budgets: preliminary estimates are generally in excess of current allocated
operational budgets for this type of infrastructure. An EOI process that explores the
opportunity to contract the playground maintenance for an initial defined period via a DCM-
type contract is considered the optimal method for identifying exactly what these costs will
be, allowing Council to develop the necessary funding and contracts post-construction.
Contractor Premium: DCM-type contracts can be expensive, as contractors add a number
of overheads for managing the risks associated with design, delivery and subsequent
maintenance. An EOI process will allow Council to negotiate with preferred tenderers and
seek feedback from the market on the viability and cost-effectiveness of entering into this
contracting model.
Time risks that have been identified include:
Schedule for delivery. Section 3 above notes the time-constraints as a result of the grant-
funding. Prioritisation of critical items that directly impact on the developed project
schedule will be continually implemented and updated as required. This includes
procurement activities, of which an EOI process is considered the lowest risk method for
achieving the project delivery in time.
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Section 20
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Stakeholder risks that have identified include:
Playground does not meet community expectations. The playground project has already
achieved a high degree of public interest and scrutiny, befitting the unique nature of what is
being offered by Council to the community, and has prompted an ongoing discussion on
overall outcomes and benefits to Noosa Shire. In particular project costs have been the
subject of considerable discussion, given the costs associated with providing such
infrastructure. The EOI process is intended to provide Council with a high level of control
over the final delivery and maintenance methodologies chosen, and ensures probity is
embedded throughout.
Consultation
External Consultation - Community & Stakeholder
External Reference Group:
Cooroy Futures Group
Cooroy Chamber of Commerce
Cooroy Area Resident’s Association
Internal Consultation
Departments consulted include Infrastructure Services, Community Services and Corporate
Services.
Departments/Sections Consulted:
Chief Executive Officer X Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development Financial Services
Community Facilities ICT
X Libraries & Galleries X Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 20 of 68
Section 21
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
10 DBW19/0018 - DEVELOPMENT APPLICATION FOR BUILDING WORKS (DETACHED
HOUSE SEAWARD OF THE COASTAL BUILDING LINE), LOCATED AT 54 SEAVIEW
TERRACE, SUNSHINE BEACH
DOCUMENT INFORM AT ION
Author Development Planner, Lisa Pienaar
Environment and Sustainable Development Department
Index ECM/ Application/ DBW19/0018
Attachments Nil
APPLICATION DETAILS
Applicant Brett McKenzie Mason
Proposal Development Permit for Building Work - Detached House (Coastal
Protection)
Properly Made Date 28 June 2019
Information Request Date Not applicable
Information Response Date Not applicable
Decision Due Date 18 April 2019
Number of Submissions Not applicable
PROPERTY DETAILS
Property Address 54 Seaview Terrace Sunshine Beach Qld 4567
RP Description Lot 63 RP 81810
Land Area 589m²
Existing Use of Land Dwelling
STATUTORY DETAILS
SEQRP Designation Urban Footprint
Locality Eastern Beaches
Zone Detached Housing
Overlays Natural Resource Overlay – Coastal Protection Area
Natural Hazard Overlay – Slide Hazard
Assessment Type Code
Page 21 of 68
Section 22
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
RECOMMENDATION
That Council note the report by the Development Planner to the General Committee Meeting
dated 12 August 2019 regarding Application No. DBW19/0018 for a Development Application for
Building Works for a Detached House, situated at 54 Seaview Terrace, Sunshine Beach and
A. Refuse Application No. DBW19/0018 for a Development Permit for Development Permit for
Building Work - Detached House (Coastal Protection), situated at 54 Seaview Terrace
Sunshine Beach for the following reasons:
1. The proposal is in conflict with the assessment benchmarks of the State Planning
Policy as it proposes development in an Erosion Prone Area and Natural Hazard
Area and presents an unacceptable risk to people and property from coastal
processes, including the projected impacts of climate change.
2. The proposal is contrary to the provisions of the Planning Scheme in that it proposes
development:
a. in the Landslide Hazard Area thereby placing people and property at risk and
does not maintain the natural processes and protection function of land forms
and vegetation contrary to the provisions of the Building Works Code.
b. that is not sited to minimise risk to users, contrary to the Building Works Code.
c. in the Coastal Protection Area extending seaward of the Coastal Building Line
and is likely to adversely impact upon natural coastal processes contrary to the
requirements of Schedule 1 of Noosa Plan and the Natural Resources Code.
d. which does not protect the dunal area and natural environmental nor maintain
the safety of people and works contrary to the Overall Outcomes for the
Eastern Beaches Locality.
3. The proposal is contrary to the provisions of the draft Planning Scheme in that it
proposes development:
a. in the Coastal Protection Area extending seaward of the Coastal Building line
and does not allow for natural fluctuations of the coast and foreshore to occur,
including allowance of climate change.
b. which has not been sited to minimise the risk from coastal processes as the
development has not been located as far landward as practicable to ensure
people and property are not at risk from coastal hazards and avoid the need for
additional coastal protection works.
4. Recent modelling carried out by the Council indicates significant erosion is likely to
occur in the future which may threaten life and property should the proposed
development proceed.
5. Given the site is affected by the Coastal Building Line and is located in a highly
vulnerable erosion prone area, the proposed 6m setback is not sufficient to minimise
the risk of erosion.
B. Note the report is provided in accordance with Section 63(5) of the Planning Act 2016.
Page 22 of 68
Section 23
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
REPORT
1. PROPOSAL
The applicant proposes to remove the existing dwelling and construct a new 2 storey dwelling
within the Coastal Protection Area identified under the Natural Resources Overlay. The dwelling
is proposed to be located seaward of the Coastal Building Line. The Coastal Building Line is
generally 15m from the seaward boundary.
The background of the Coastal Building Line is provided in section 2.1 of this report. Refer
Figure 1– Proposed Site plan for new dwelling & Figure 2 – Elevations for proposed
dwelling.
The same proposal was submitted earlier this year as a Material Change of Use application. The
current proposal for Building Works remains unchanged from what was originally submitted.
Figure 1 – Proposed Site plan for new dwelling (Coastal Building Line in yellow)
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Section 24
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Figure 2 – Elevations for proposed dwelling
2. SITE DETAILS
2.1. Background
On 11 February 2019 an application was made for a Development Permit for Material Change of
Use - Detached House in Coastal Protection Area (Seaward of Coastal Building Line). The
application (MCU19/0016) was considered at the Planning and Environment Committee on 9
April 2019 and the General Committee Meeting on 15 April 2019. It was determined by Council to
refuse the application with the recommendation being adopted at the 18 April 2019 Ordinary
Meeting. The grounds of refusal were as follows:
1. The proposal is in conflict with the assessment benchmarks of the State Planning Policy as
it proposes development in an Erosion Prone Area and Natural Hazard Area and presents
an unacceptable risk to people and property from coastal processes, including the
projected impacts of climate change.
2. The proposal is contrary to the provisions of the Planning Scheme in that it proposes
development:
a. in the Landslide Hazard Area thereby placing people and property at risk and does
not maintain the natural processes and protection function of land forms and
vegetation contrary to the provisions of the Natural Hazards Overlay Code.
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Section 25
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
b. in the Coastal Protection Area extending seaward of the Coastal Building Line and is
likely to adversely impact upon natural coastal processes contrary to the
requirements of the Natural Resources Code.
c. which does not protect the dunal area and natural environmental nor maintain the
safety of people and works contrary to the Overall Outcomes for the Eastern Beaches
Locality.
3. The proposal is contrary to the provisions of the draft Planning Scheme in that it proposes
development:
a. in the Coastal Protection Area extending seaward of the Coastal Building line and
does not allow for natural fluctuations of the coast and foreshore to occur, including
allowance of climate change.
b. which has not been sited to minimise the risk from coastal processes as the
development has not been located as far landward as practicable to ensure people
and property are not at risk from coastal hazards and avoid the need for additional
coastal protection works.
4. Recent modelling carried out by the Council indicates significant erosion is likely to occur in
the future which may threaten life and property should the proposed development proceed.
5. Given the site is affected by the Coastal Building Line and is located in a highly vulnerable
erosion prone area, the proposed 6m setback is not sufficient to minimise the risk of
erosion.
Previous Material Change of Use Application
On 9 May 2019 Council received a notice of appeal against the refusal. As part of the grounds of
appeal the applicant maintained that no application for a Material Change of Use was required for
the proposal. In summary, it was maintained that given there was an existing dwelling on the site
and the proposed building work (new dwelling) did not extend further seaward than the existing
building, that the proposal does not result in ‘a material increase in the intensity and scale of the
use of the premises’ (in accordance with the definition of a Material Change of Use).
Council’s solicitor and officers reviewed the applicant’s grounds and agreed with the applicant, as
this was no material change of use of the property given the site already had a large dwelling
constructed on the site which intruded into the setback to the Coastal Building line and the new
dwelling did not raise additional impacts compared to the existing dwelling.
The applicant subsequently withdrew the appeal.
Existing Development
As shown in Figure 3 – Subject site, the majority of development on the eastern side of
Seaview Terrace has some form of building work seaward of the Coastal Building Line.
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Section 26
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Figure 3 – Subject site and Coastal Building Line
As reference for Section 3 of this report, it is important to provide background to other
development affected by the Coastal Building Line on the seaward side of Seaview Terrace. This
is provided in Table 1 below.
Table 1 – Background of development on lots affected by the Coastal Building Line on the
seaward side of Seaview Terrace (NB – Table as referenced in report for application no.
51987.2951.01- extra content added for this report)
Address in Development Date of Decision Comments
Seaview Approval
Terrace
The blue rows represent development assessed under the State Coastal Management Plan* provisions.
38 2005132004.240114 11 July 2005 No development seaward of the Coastal
Building Line.
40 51993.271 1993 DA File misplaced. Building plans indicate
development approximately 3m to 4m
seaward of the Coastal Building Line.
42 TPC 1918 7 July 1987 Dwelling originally approved – part of
building cantilevered into Coastal building
line setback.
Change to TPC to add 19 September 2018 Change to add deck and pool refused by
pool and deck Council. Currently in appeal stage.
44 No DA records for Original dwelling appeared (from aerials)
original dwelling to comply with the Coastal Building Line
setback.
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Section 27
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Address in Development Date of Decision Comments
Seaview Approval
Terrace
MCU12/0159 9 January 2013 A portion of the building, a deck and pool
(pool setback 4m – 5.7m from rear
boundary) approved seaward of the
Coastal Building Line. Third party referral
to DEHP. Alignment of neighbouring
property was considered in the
assessment.
MCU15/0023 5 June 2015 A greater setback to the pool (4.9m to
6.5m from rear boundary) and a reduction
of building forward of the Coastal Building
Line when compared to the previous
approval.
46 - 48 132005.2200 27 February 2007 The application was subject to the State
Coastal Management Plan*. For context
an extract from the planners report is
provided below—
The State Coastal Management Plan
contains specific provisions relating to
erosion prone areas when undertaking
development assessment. The State
Coastal Management Plan, Policy 2.2.2
applies to Erosion Prone Areas. For
existing developed areas in the erosion
prone area, the limit for new buildings is
the building alignment of neighbouring
properties. Further development is only to
occur landward of this alignment.
The proposed dwelling house is primarily
located landward behind the 15 metre
building setback line from the rear
boundary. Although small sections of the
house and the proposed pool extend
within this setback, the development does
not occur seaward of the neighbouring
dwelling to the north or the existing deck
on the site which is to be retained.
50 132004.4743 2005 The proposal is seaward of the Coastal
Building Line and was subject to the State
Coastal Management Plan, Policy 2.2.2.
The assessment is similar to the
neighbouring 46-48 Seaview Terrace.
50 MCU15/0096 13 May 2016 New dwelling (demolishing previous
dwelling). A portion of the building,
setback 5-8.25m back from rear
boundary. Approved seaward of the
Coastal Building Line. Alignment of
neighbouring property was considered in
MCU15/0096.03 20 March 2017 the assessment.
Approval for roof form – no further
encroachment to rear boundary.
Page 27 of 68
Section 28
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Address in Development Date of Decision Comments
Seaview Approval
Terrace
52 131998.982104 14 December 1998 Extension to existing dwelling seaward of
15246 DA the Coastal Building Line. Referral to the
Beach Protection Authority. Consideration
of neighbouring properties alignment.
131998.982104.1 6 January 2016
Roof over second storey deck seaward of
the Coastal Building Line. Not protruding
further seaward than existing deck.
54 No DA on file Building approval Dwelling is constructed eastward of the
1973 Coastal building line. Dwelling approved
and constructed prior to the introduction
of the Coastal Building Line. Subject site
– background provided above.
56 132005.901 29 November 2005 The proposal is seaward of the Coastal
Building Line and was subject to the State
Coastal Management Plan*, Policy 2.2.2.
The assessment was similar numbers 46-
48 & 50 Seaview Terrace.
MCU13/0247 20 January 2014 New dwelling (demolishing previous
dwelling). A portion of the building,
setback 6.7-8.4m back from rear
boundary. Approved seaward of the
Coastal Building Line. Alignment of
neighbouring property was considered in
the assessment.
56 MCU13/0247.02 14 February 2017 Changes include relocation of pool to
upper level, extension of deck seaward
and roof terrace. Alignment of
neighbouring property was considered in
the assessment in terms of average
setback.
58 51996.2025 (04632 23 August 1996 A cantilevered deck seaward of the
TP) Coastal Building Line resulting in a 6m
setback to the seaward boundary.
Referral to the Beach protection
Authority.
60 131999.982760 12 July 1999 Dwelling seaward of the Coastal Building
Line. Extensions to an existing house
built prior to the 1980’s.
62 132004.4920 26 November 2004 Dwelling seaward of the Coastal Building
Line. The proposal was subject to the
State Coastal Management Plan*, Policy
2.2.2. The assessment was similar to
numbers 46-48, 50, & 56 Seaview
Terrace.
64 No DA except for an The existing dwelling appears to extend
extension to the approximately between 2m to 3m
carport seaward of the Coastal Building Line.
*The State Coastal Management Plan commenced in February 2002 and ended in February 2012 and
was replaced by State Planning Policy 3/11: Coastal Protection (2 Dec 2013). Since 2013 various State
Planning Policies have lapsed or been repealed.
Page 28 of 68
Section 29
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
State Mapping
The site is also within an Erosion Prone Area and Coastal Management District as shown in
SARA’s mapping below in Figure 4 - Coastal Management District and Erosion Prone Area.
Figure 4 – Coastal Management District and Erosion Prone Area
As background for this report, the QLD Government Guideline: State Development Assessment
Provisions State Code 8: Coastal development and tidal works provides information on the intent
of the Coastal Building Line and the concept of coastal processes and this is provided below for
Council’s reference.
Coastal Building Line
Coastal building lines are declared in those areas that are already developed for urban purposes
and are highly vulnerable to coastal erosion. The intent of the coastal building line is to:
provide a common alignment for building work;
set back development from the coastline which reduces the erosion risk to people and
property;
provide space on the lot seaward of the development for construction of future erosion control
structures wholly on the lot and not on State land.
Generally, no building work, including houses, sheds or swimming pools, would be permitted
seaward of a coastal building line. Only works for the protection of existing buildings from sea
erosion, such as seawalls, would be permitted seaward of a coastal building line.
Coastal Processes
Coastal processes are the natural processes occurring on the coast and in tidal water including:
wind, waves, tides and currents which transfer energy to the coast and drive other
processes;
sediment transport to and along the coast;
sediment accumulation or erosion onshore and offshore which builds or destroys landforms
including foreshores, beaches, dunes, delta plains;
the growth and spread of plants and succession of plant communities, especially where
plants have a specific role in trapping sediment and building landforms (mangrove and
dune colonizing grasses) and stabilizing sediments against erosion;
changes in sea-level both temporary and permanent from weather events and climate
change.
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Section 30
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Localised Modelling – Noosa Council
The lot is also affected by Council’s new Coastal Hazards – Erosion Prone Area mapping. The
modelling was undertaken in accordance with the Queensland Government Coastal Hazard
Technical Guide. Modelling for Erosion Prone Area 1% AEP storm event consists of three future
planning horizons– the years 2040, 2070 and 2100, as well as present day conditions, for a
comparison. The modelling outputs were completed and signed off in February 2018 by the
relevant representative of the QLD State Government ensuring the modelling was in accordance
with the State guidelines. Figure 5 below shows the subject site and the newly modelled erosion
prone areas.
Figure 5 – Erosion Prone Area and subject site
The modelling suggests that by 2040 and 2070, within the life of this development, approximately
between 50% up to 80% of the site is affected by coastal erosion in a 1% AEP storm event.
2.2. Site Description
The site has a 15 metre frontage to Seaview Terrace and a 15.4 metre frontage to the Sunshine
Beach coastal reserve and is rectangular in shape. The site is located on a steep escarpment
where at the rear boundary, the land falls away to the beachfront. The site itself has a 7 metre
fall from west to east.
An existing dwelling is located on the site within the Coastal Protection Area identified under the
Natural Resources Overlay. The Coastal Building line traverses the site north to south as shown
in Figure 1.
2.3. Surrounding Land Uses
The site adjoins detached houses to the north and south and to the west across Seaview
Terrace. The site slopes steeply to the east adjoining north Sunshine Beach.
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Section 31
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
3. ASSESSMENT
3.1. Instruments for Statutory Assessment
Under the Planning Act 2016 the application must be assessed against each of the following
statutory planning instruments to the extent they are relevant to the development:
State Planning Policy;
South East Queensland Regional Plan;
Planning Regulation 2017;
The Noosa Plan.
3.2. State and Other Statutory Instruments
State Planning Policy
The State Planning Policy July 2017 (SPP) outlines particulars about compatible urban form that
minimises impacts on coastal processes and avoids development that present unacceptable risk
from coastal hazards. The Noosa Plan is generally consistent with the SPP. The State Planning
Policy (State interest guideline – Coastal Environment) requires the coastal environment to be
protected and enhanced and urban form to be compatible with this. Particularly this policy
requires that development is avoided in areas that present an unacceptable risk from coastal
hazards; and development avoids or minimises adverse impacts on coastal processes and
coastal resources.
South East Queensland (SEQ) Regional Plan
The site is located within the Urban Footprint area of the SEQ Regional Plan. The proposal is
consistent with the regional policies of the SEQ Regional Plan.
Planning Regulation 2017
The proposal is for urban activity within the Urban Footprint and is consistent with the
assessment benchmarks contained in the Planning Regulation 2017 for the SEQ Region.
3.3. Statutory Instruments – Planning Scheme
Natural Resources Overlay Code – Coastal Protection
The relevant Specific Outcomes of the Natural Resources Overlay Code – Coastal Protection are
provided below:
O18 The siting and design of development and materials used within the Coastal Protection
Area, as identified on the Natural Resources Overlay Maps, do not cause any significant adverse
impacts on the coastal resources of the location nor interrupt the natural cycles of erosion and
accretion of foreshore areas and beaches.
O20 Buildings and other structures including swimming pools and retaining walls do not extend
seaward of the coastal building line except—
a) uncovered and unenclosed cantilevered balconies that do not extend greater than 3m
seaward of the coastal building line; and
b) are setback a minimum of 6m from the seaward boundary (refer below).
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Section 32
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
The proposal does not comply with Specific Outcome O18 as it is considered the development
seaward of the Coastal Building Line has the potential to interrupt the natural cycles of erosion
and accretion of the beach. Furthermore, the proposal does not comply with Specific Outcome 20
as the new development does not comply with the 15m setback of the coastal building line and
the cantilevered walkway/deck is only setback 3 metres from the seaward boundary.
Given the proposal does not comply with the Specific Outcomes, the following Overall Outcomes
for the Natural Resources Overlay Code are applicable:
13.42.2 The overall outcomes sought for the Natural Resources Overlay Code are—
f) for Coastal Protection Areas, development —
i does not adversely impact upon natural coastal processes; and
ii is designed and sited to protect the natural beach experience and visual amenity
enjoyed by residents and others.
It is pertinent that new climate change information and modelling has highlighted that within the
life of this development serious erosion may occur and risk life and property.
Erosion prone areas should be retained in their natural state where they can act as a buffer
between land uses and the beach to allow the natural coastal processes to occur, without the
need for intervention to protect human life and property. It is considered the proposal will
adversely impact on the coastal processes as a 6m landscaped setback is not sufficient to
minimise the risk of erosion.
Consistent with the Noosa Plan, no new buildings, structures, swimming pools and retaining
walls can occur seaward of the coastal building line, except for uncovered and unenclosed
cantilevered balconies that do not extend greater than 3 metres seaward of the Coastal Building
Line and are setback a minimum of 6 metres from the seaward boundary. The proposed
deck/walkway is 3 metres setback from the seaward boundary, with a large portion of the
dwelling seaward of the Coastal Building Line.
While some of the dwellings on the seaward side of Seaview Terrace are constructed seaward of
the Coastal Building Line, they complied with the statutory instruments in force at the time or
were found to be consistent with surrounding development. Since that time new information of
climate change effects on coastal processes have been modelled and more accurately depict the
risk of erosion to the subject property as shown in Figure 5 in section 2.1.
Page 32 of 68
Section 33
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Furthermore, it should be noted that State Government planning for coastal areas has changed
over time. For example, between 2002 and 2012 State Planning Policy allowed for development
seaward of the coastal building line providing it did not protrude seaward of the neighbouring
properties building alignment. Whereas, the current State Development Assessment Provisions
are much more restrictive, not permitting development seaward of the coastal building line except
for coastal protection works. This highlights the Queensland State Government statutory planning
instruments that recognise the importance of the risks of climate change and updated information
available.
The application is considered to comply with Probable solution 18.1 which requires a mix of
native landscaping to be provided for a width of 5m from the seaward boundary to provide
buffering to the coastal dunal system.
The applicant submitted a detailed landscape plan that includes landscaping to 55% of the site
and extensive mature and shrub native plantings within the 6 metre rear setback to the proposed
dwelling. Pathways of sand with stone steppers are also proposed in this setback.
Generally
The site is situated in a Landslide Hazard area. The proposal is contrary to overall outcome in the
Building Works Code in that the development does not maintain setbacks that avoid adverse
impacts on the natural values of the foreshore. The applicant has provided a preliminary
geotechnical report relating to proposed development which is required by the Building Works
Code. The report has a number of recommendations which include the need for a more detailed
geotechnical investigation. The report does not make recommendations about the risk from
adjoining land (ie. the foreshore).
Notwithstanding the above, the proposal generally complies with the Building Works Code.
However it is noted that the proposed vaulted roof form does soften the box profile of the
dwelling, particularly from the east and west elevations. Refer Figure 6 – West elevation.
Figure 6 – West elevation
Page 33 of 68
Section 34
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
4. Risk & liability
There will be increasing pressure for property owners to seek protection for their built assets to
combat erosion impacts. Who is responsible and who should cover this cost has some case law,
but is still not clear yet.
Climate change presents considerable uncertainty in terms of severity and frequency of hazard.
Council as assessment manager has a duty of care to give full consideration to coastal erosion
and sea level rise risks. While a planning scheme might provide for a particular type of
development to occur, the assessment manager must consider whether the design and siting of
that development is compatible with the risk and that any coastal risks have been appropriately
mitigated.
Advice from LGAQ and King and Co advise that Council has a duty of care to consider best
available information at the time of assessing the development application.
5. DRAFT PLANNING SCHEME
The draft zoning under the new Planning Scheme is Low Density Residential. The parameters
under the draft scheme with regard to site cover, height, built form and setbacks has remained
unchanged. The draft Coastal Protection overlay code is further strengthened under the draft
Planning Scheme based on new and current information with regard to coastal hazards. In
summary, the draft Code includes provisions that recognises that development is sensitive to the
foreshores and avoids the need for coastal protection works. Further where buildings on the site
are already located within the coastal hazard area for year 2100 at the commencement of the
scheme, new buildings, structures or retaining walls do not extend seaward of the coastal hazard
area for year 2070. The Code refers to the Coastal Hazard areas mapping as recently released
by Council. Refer Figure 5 – Erosion Prone Area and subject site. The existing dwelling and
the proposed dwelling is located within the predicted erosion prone area for years 2100, 2070 &
2040.
6. CONSULTATION
6.1. Concurrence Agency for Building Work
The applicant’s building certifier referred the proposal to the State Assessment and Referral
Agency (SARA), under Schedule 9 of the Planning Regulation 2017 for premises located
seaward of the coastal building line, prior to submitting the application to Council for assessment.
On the 6 February 2018, the Department (DSDMIP) issued a Statement of Reasons and
conditions for the development under Version 2.4 of the State Development Assessment
Provisions (SDAP) which commenced 16 November 2018 – State Code 8 Coastal development
and tidal works. The reasons for this decision provided by SARA for the proposal are as follows.
• To ensure the development is carried out generally in accordance with the plans of
development submitted with the application.
• To ensure the development avoids or minimises adverse impacts on coastal resources and
their values.
• To ensure any disturbance to acid sulfate soils is managed to prevent impacts to coastal
environments.
The Department has responded with 3 conditions pertaining to the proposal as follows:
Page 34 of 68
Section 35
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
It is interesting to note, that Conditions 2 & 3 relate to construction management and not to the
presence of structures seaward of the Coastal Building Line. Condition 1 acknowledges the
development positioning seaward of the Coastal Building Line.
The State assessed the application against the relevant outcomes of the State Code 8 for
development in an erosion prone area as shown below.
Page 35 of 68
Section 36
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
The State Code 8 seeks that there is no development seaward of the Coastal Building Line
except for coastal protection work.
For guidance as to how to comply with the State Code 8 the guideline indicates the following:
Applications… should demonstrate that the proposed development is located landward of the
coastal building line; or
1. justify why the proposed development cannot be located landward of the coastal building
line; and
2. demonstrate how development seaward of the coastal building line is protected from
coastal erosion both now and in the future.
The State’s coastal building lines have been in place since 1984, and the line is set 15 metres
back from the seaward boundary in this location. This affects around a third of the property at the
rear.
The proposal is not coastal protection work. The applicant’s proposed 6m setback has relied
upon the alignment of neighbouring properties being built/approved under repealed legislation
and policy.
The lot is highly vulnerable to coastal erosion and it is imperative to provide the maximum buffer
to the sea to minimise the risk of coastal erosion. The 15m Coastal Building Line setback
provides this buffer and ensures the development is more resilient to coastal erosion and sea
level rise as climate change occurs.
Page 36 of 68
Section 37
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Notably, State support for building works does not provide the ‘green light’ for development of the
site as the proposal requires assessment against The Noosa Plan and approval required from
Council to proceed. The proposal does not comply with the Noosa Plan and it cannot be
conditioned to comply with the Planning scheme, as a substantial part of the dwelling is located
within the 15 metre setback and significant alterations would be required to comply.
6.2. Other Referrals
The proposal was previously forwarded for comment to:
Project Co-ordinator, Climate Change Adaptation, Strategic Planning
Principal Strategic Planner, Strategic Planning
Advice from Strategic Planning is as follows:
Climate change presents considerable increased risk in terms of the severity and frequency of
coastal erosion. Council has a duty of care and statutory obligation to give full consideration to
current and future projected coastal erosion and sea level rise. The coastal building line is an
important regulatory tool for limiting development within coastal hazard areas. While application
of this has not always been consistent over the last few decades, new knowledge about coastal
erosion risks along the Eastern Beaches highlights the need to take a strong position on ensuring
that new development does not encroach seaward of the coastal building line. This is irrespective
of what development is already existing on properties or their neighbouring properties.
Ensuring development does not encroach seaward of the coastal building line preserves
important dune buffer areas that will be increasingly important into the future for stabilising and
slowing dune erosion. It is critical that Council has a consistent approach to the way it applies
coastal building lines to help mitigate future risks.
Council’s new coastal hazard mapping for years 2040, 2070 and 2100 show the increased risk to
coastal erosion overtime. At 2040 around half of the subject property is potentially at risk, by
2070 around three-quarters is at risk.
The State’s coastal building lines have been in place since the mid 1980s, and the line is set 15
metres back from the seaward boundary in this location. This affects around a third of the
property at the rear.
Consistent with the Noosa Plan, no new buildings, structures, swimming pools and retaining
walls can occur seaward of the coastal building line, except for uncovered and unenclosed
cantilevered balconies that do not extend greater than 3 metres seaward of the Coastal Building
Line.
6.3. Public Notification
Not applicable. The application is code assessable.
7. CONCLUSION & REASONS FOR DECISION
The 15m Coastal Building Line setback allows for the natural landscape to be the first line of
storm protection and buffering. Providing the maximum buffer from the sea will ensure that future
development is more resilient to coastal erosion and sea level rise as climate change effects
arise. Furthermore, the 15m setback preserves the integrity and structure of the frontal dune for
longer in the face of increased storm frequency, intensity and erosion without the need for
coastal protection works.
The proposed 6m setback does not provide sufficient natural landscape buffering in this highly
vulnerable erosion prone area. The 6m setback does not minimise the risk to erosion and allows
for potential impacts on and interference with coastal processes.
The subject property and surrounding properties are within a Coastal Management District, an
Erosion Prone Area and affected by the Coastal Building Line. Repealed policy and past
assessment has resulted in development forward of the Coastal Building Line. However, new
knowledge about coastal erosion including new erosion prone area modelling in accordance with
Page 37 of 68
Section 38
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
State guidelines, highlights the need to take a strong position in ensuring that development does
not encroach seaward of the Coastal Building Line to minimise risk to hazards.
The development is not in accordance with the relevant statutory planning instruments including
The Noosa Plan’s Natural Resources Overlay Code for Coastal Protection. The proposal raises
significant planning concerns and is recommended for refusal for the following reasons:
1. The proposal is in conflict with the assessment benchmarks of the State Planning Policy as
it proposes development in an Erosion Prone Area and Natural Hazard Area and presents
an unacceptable risk to people and property from coastal processes, including the
projected impacts of climate change.
2. The proposal is contrary to the provisions of the Planning Scheme in that it proposes
development:
a. in the Landslide Hazard Area thereby placing people and property at risk and does
not maintain the natural processes and protection function of land forms and
vegetation contrary to the provisions of the Building Works Code.
b. that is not sited to minimise risk to users, contrary to the Building Works Code.
c. in the Coastal Protection Area extending seaward of the Coastal Building Line and is
likely to adversely impact upon natural coastal processes contrary to the
requirements of Schedule 1 of Noosa Plan and the Natural Resources Code.
d. which does not protect the dunal area and natural environmental nor maintain the
safety of people and works contrary to the Overall Outcomes for the Eastern Beaches
Locality.
3. The proposal is contrary to the provisions of the draft Planning Scheme in that it proposes
development:
a. in the Coastal Protection Area extending seaward of the Coastal Building line and
does not allow for natural fluctuations of the coast and foreshore to occur, including
allowance of climate change.
b. which has not been sited to minimise the risk from coastal processes as the
development has not been located as far landward as practicable to ensure people
and property are not at risk from coastal hazards and avoid the need for additional
coastal protection works.
4. Recent modelling carried out by the Council indicates significant erosion is likely to occur in
the future which may threaten life and property should the proposed development proceed.
5. Given the site is affected by the Coastal Building Line and is located in a highly vulnerable
erosion prone area, the proposed 6m setback is not sufficient to minimise the risk of
erosion.
Departments/Sections Consulted:
Chief Executive Officer Community Services Corporate Services
Executive Officer Community Development Financial Services
Executive Support Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services x Environment & Sustainable Development Infrastructure Services
Community Engagement Building & Plumbing Services Asset Management
Customer Service x Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
Page 38 of 68
Section 39
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
11 BUDGET REVIEW 1 (BR1) FOR THE 2019-20 FINANCIAL YEAR
DOCUMENT INFORM AT ION
Author Manager Financial Services, Trent Grauf
Corporate Services Department
Index ECM/ Subject/ 7.23 – 2019-2020 Budget
Attachments 1. Proposed Operating Budget Submissions
2. Proposed Capital Budget Submissions
3. Revised Capital Program
4. Revised Statement of Income and Expenditure
5. Revised Budget Financial Statements
EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the financial year. This first budget review for the 2019/20 financial
year (BR1) incorporates:
Any capital or operating projects that were incomplete with unspent budgets at the close of
the 2018/19 financial year and are eligible for carryover into the current budget year.
Any new or emergent actions arising from Council resolution, Executive Team or Capital
Works Executive action since the adoption of the original budget in June 2019.
In summary the budget review is proposing a decrease of $107k to Council’s operating surplus
resulting in a revised operating surplus of $29k.Capital grant revenue has increased by $1.6
million and the revised capital expenditure program equates to $30.9 million.
Item Original Budget Adjustments Proposed Budget
($’000) ($’000) (BR1) ($’000)
Operating Revenue $98,656 $1,214 $99,870
Operating Expenditure $98,520 $1,321 $99,841
Operating Result $136 ($107) $29
Capital Grants and Contributions Revenue $4,608 $1,546 $6,184
Capital Works Expenditure $28,399 $2,481 $30,880
RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 12 August 2019 and approve the proposed changes to the budget for the 2019/20
financial year as outlined in the Revised Budget Financial Statements attached to the report.
Page 39 of 68
Section 40
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year.
The key criteria for budget reviews include:
1. Council must ensure compliance with its financial sustainability policy targets.
2. Any eligible capital or operating project must be underway with a commitment to deliver
and complete the project.
3. Capital submissions will be reviewed and authorised by the Capital Works Executive before
inclusion as a budget review submission, where the group will consider justification for the
request, deliverability as well as organisational and community priorities before endorsing
any capital works.
4. All operating and capital submissions for additional spend, reallocation of savings or
additional revenue will be confirmed by the Executive Team based on business risk
assessment.
The revised statement of comprehensive income, included as Attachment 4, identifies the
financial statement line items that have been affected by the proposed budget adjustments. The
budget financial statements, included in Attachment 5, also identify the impact of the proposed
budget adjustments to Council’s financial sustainability indicators.
1. Operating Budget Adjustments
The proposed operational budget adjustments will result in a $107k decrease to the operating
surplus. The following table summarises the operational carryovers by department and branch,
with a detailed list contained in Attachment 1. The financial statements in Attachments 4 and 5
outline the revised budget position as a result of these carryovers.
Type Submissions Revenue Expense
($’000) ($’000)
Grant Programs 6 - 98
Contractual & Policy Obligations 2 1,214 1,223
Total 8 1,214 1,321
2. Proposed Carryovers - Capital Expenditure Projects
To inform the determination of carryovers, the following table summarises the 2018/19 full year
financial result for the capital works program. It identifies 39 projects for possible carryover with a
total unspent budget of $2.1 million. After allowing for savings, only $2.1 million has been
identified for carryover into the 2019/20 year.
Item # Current Full Year Under/ Savings Proposed
2018/19 Actual (Over) Identified Carryover
Budget Spend Spent
($'000) ($'000) ($'000) ($’000) ($’000)
Projects Financially Complete 85 $15,605 $15,481 $124 ($124) $-
Projects Incomplete at 30 June 39 $12,786 $10,640 $2,146 ($26) $2,120
Total 124 $28,391 $26,121 $2,270 ($150) $2,120
In addition, a total of seven emergent works projects with a project budget of $362k are proposed
for inclusion in the revised budget. Overall, this will increase the capital expenditure budget from
$28.4 million to $30.9 million.
Page 40 of 68
Section 41
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
The following table summarises the proposed revised 2019/20 capital budget by program, with
the full list contained in Attachment 2.
Item Amount
($’000)
Original Budget $28,399
Carryovers $2,120
Emergent works $362
Proposed Revised Capital Expenditure Budget $30,880
The following table summarises the proposed revised 2019/20 capital budget by program, with
the full list contained in Attachment 2.
Program 2019/20 Carryovers Emergent Proposed
Original Items BR1 Total
Budget Budget
Capital Works
Bridges $2,501 $1 $2,502
Cemeteries $60 $60
Coastal Canals and Waterways $415 $60 $95 $570
Commercial Land & Property $3,420 -$47 $3,373
Community Facilities $1,017 $327 $18 $1,362
Corporate Buildings $157 $12 $168
Gravel Road Network $410 $410
Holiday Parks $2,410 $52 $2,462
Libraries & Galleries $15 $30 $45
Parks & Playgrounds $1,275 $23 $1,298
Pathways & Boardwalks $274 $33 $307
Public Amenities $577 $17 $594
Sealed Roads Network $5,537 $55 $5,592
Stormwater Drainage $1,680 $20 $1,700
Transport and Infrastructure Management $3,578 -$4 $192 $3,766
Public Transport Infrastructure $500 $500
Streetscapes and Road Corridors $14 $14
Waste Management $455 $8 $45 $508
Other Works
Fleet - Plant Replacement $1,484 $333 $1,817
Asset Management $1,390 $379 $1,769
Information Technology $800 $107 $907
Planning Scheme $600 $557 $1,157
Grand Total $28,399 $2,120 $362 $30,880
Previous Council Consideration
The 2018/19 original budget was adopted by Council resolution on 28 June 2019 (Ref. Special
Meeting Minutes, 28 June 2019, Item 3, Page 3).
Page 41 of 68
Section 42
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Finance
Council’s 2019/20 budgeted financial sustainability ratios will all remain within the benchmark
ranges as per the table below.
Ratio Target Original Budget BR1
Operating Surplus 0 – 10% 0.1% 0.0%
Net Financial Liabilities < 60% (6.8%) (5.7%)
Asset Sustainability > 90% 119.6% 110.3%
Risks & Opportunities
Council’s risk register includes a number of risks that could impact on ongoing financial
sustainability. Effective budget management and reporting is an important risk mitigation tool.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Financial Services have been in contact with all Council branches. Directors of each department
have reviewed endorsed all submissions received. The Executive Team has also reviewed and
endorsed all submissions received.
Page 42 of 68
Section 43
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Departments/Sections Consulted:
X Chief Executive Officer X Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
X Executive Services X Environment & Sustainable Development X Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
Page 43 of 68
Section 44
Page 44 of 68
Noosa Shire Council ATTACHMENT 1
2019/20 Budget Review 1 - Operational Submissions
For the period ending 30 June
Function Details CNC =t-) elit) Net Total
GrantProgams
Economic Development Digital Hub Regional Startups Program 18,750 18,750
underway. Grant co-funding for the program
already received in advance in 2018/19.
Best Start / First Five Library program for Best Start / First Five 22,102
Forever Forever not completed by 30 June. Grant co-
funding for the program already received in
advance in 2018/19.
Tech Savvy Seniors Library program for Tech Savvy Seniors not 6,625
completed by 30 June. Grant co-funding for
the program already received in advance in
2018/19.
Indigenous Welcome _Library program for Indigenous Welcome 6,936
Book Book not completed by 30 June. Grant co-
funding for the program already received in
advance in 2018/19.
Engaging Science Library program for Engaging Science not
Grant completed by 30 June. Grant co-funding for
the program already received in advance in
2018/19.
Regional Arts RADF program not fully expended in 2018/19 38,361
Development Fund
(RADF)
pemrrvmerm™
Contractual and Policy Obligations
Executive Support Unspent 2018/19 Councillor Discretionary
Professional Development budget carried
over in line with Councillor Expenses
Reimbursement Polic’
Waste and Waste Levy obligations recognised following = - 1,213,625 1,213,625
Environmental Health —_ introduction 1 July 2019. Levy revenue raised
to be paid to State Government.
Contractual and Policy Obligations Total 4,213,625 1,202,781) 9,156
Net Total . 1,213,625 oP YAR 113 106,980
Page 44 of 68Section 45
Page 45 of 68
Noosa Shire Council
2019/20 Capital Budget Review 1 - Capital Submissions ATTACHMENT 2
For the period ending 30 June
Project Description 2019/20 Carryovers Emergent Proposed Details
Original Naat BR1 Total
Budget Budget
Orealla Crescent Overpass Refurbishment 1,765,000 - 10,485 Council successful for increased grant. Scope of work
being finalised for construction to commence late
2019/20. Overspend in 2018/19 adjusted as a
-alryOvel
Tewantin Doonella Bridge Renewal 282,000 11,047, ~==—|_—s 293,047 | Bridge design work ongoing in 2019/20
Cooran Tablelands Road Bridge Renewal 100,000 900,000
eee remem [mee
Rehabilitation
Kin Kin Wahpunga Lane Bridge Renewal 2000007 ~*~ —~—CS
Bridges Total 2,501,000 5600 500564
Peregian Beach Boardwalk Renewal North of Tower to 415,000 - 4,069 Planning and design complete in 2018/19, with
access construction to occur in 2019/20. Overspend in
2018/19 adjusted as a carryover.
Renewal of revetment wall at O-Boats Gympie Tce | 17,707 fF 17,707 Works delayed in 2018/19 to address site issues.
Construction to progress in 2019/20.
Beach Access Shower Renewal Claude Batten Drive er ee Construction of beach showers delayed with works to
commence in early 2019/20.
Coastal Canals and Waterways Total 415,000 _ iT
Cooroy Cemetery Plant & Equipment Shed 60000 000
Cemeteries Total 60,0000 80000
Rufous Street Stage 3 3,420,000 - 47,254 3,372,746 Planning and design finalised with construction to
commence in 2019/20. Overspend in 2018/19 adjusted
as aca over.
Commercial Land & Property Total 3,420,000 - 47,254 887286
Sunshine Beach NAC - Renewal Program — 700000, 00000
Noosaville Wallace House Restumping 85,0000 8000
NAC & NLC Roof Restoration (to Support Solar 228,650 Construction underway with works to be finalised in
Panels) early 2019/20. Overspend in 2018/19 adjusted as a
carryover.
Peregian Beach Surf Club Roof Replacement Project delayed to 2019/20 in allow for finalisation of
site use Expression of Interest in 2018/19.
Community Facilities Minor Works Brought Forward 166,418 18,000 184,418 $155k Budget adjustment in BR3 incorrect and did
not accomdate full proposed cost of replacement PA
(CWE 7/3/2019)
$18k additional costs associated with AV system
(\ [7/2019
Community Facilities Total 1,017,500 326,980 18,000, 1,362,480 0
Tewantin Administration Building Roof 81,775 Roof replacement complete, with subsidiary work on
air condenser to be finalised in early 2019/20
Tewantin Admin Building - Security Upgrade 74,977 86,606 Construction underway with works to be finalised in
2019/20. Additional costs identified as part of the
successful quotation.
Corporate Buildings Total 156,751 19,629 168,380
Whole of Shire Gravel Resheeting -Annual Program | 410,000) | 4000000
Gravel Road Network Total 4100000 90,000
Noosa North Shore Campground Redevelopment 2,410,000 | eet | TT Tender awarded in June 2019 with construction works
underway in early 2019/20.
Noosaville, Noosa River Holiday Park Large Amenities Pll] Construction complete, with final invoices to be paid
Refurbishment early 2019/20.
Holiday Parks Total 2,410,000 51546 MONS
Noosaville Library Refurbishment 3 , Construction complete, with final invoices to be paid
early 2019/20.
Page 45 of 68Section 46
Page 46 of 68
Project Description 2019/20 Carryovers Emergent Proposed Details
Original Items BR1 Total
Budget Budget
Cooroy Butter Factory Louvre Replacement 1,000) 000
Libraries & Galleries Total = SSi15,000,-S 90,000; 5000 s—~S
Noosa Hinterland Priority Playground 300,000 21,527 321,527 | Planning and design work ongoing to be progressed
in 2019/20 with sucessful grant application
Botanic Garden Shade House 380,000 - 12,398 367,602 Works underway with works to be finalised in early
2019/20. Overspend in 2018/19 adjusted as a
carryover.
Noosaville, Gympie Terrace Park Furniture Renewals | 150,000) 150000
Cooran Pioneer Park Upgrade 5000000
cpr onsnectisoeremies (ee) Ba ainotinsiobiscnasnsom
Design
a
Renewal
Lake Macdonald Botanic Garden Signage Renewal 25.608 0B
Noosa Heads Alex Dan Park Playground Renewal 67.427) AR
seer eens ere |
Renewal
‘Shire BBQ Renewal Program FY19/20 075000) 000
Shire Park Furniture Renewal ProgramFY19/20 | 50000, )s~<“‘*~*~sésWOO S—~—SSCSCS
Shire Park Shelter Renewal ProgramFY19/20 | —45000, Ss) sS~=“‘*é‘“*ésSWOOS—~—SSSC‘S
Parks &Playgrounds Total = 1,275,365, 28,08 1,208,988
Teena Sor Sra enorme
August 2019.
Wallace Park Pathway Stage 5 & 6 14,609 14,609 Construction near complete, with an additional
section to be undertaken with remaining funds in
2019/20 to complete the works
Shire Pathway Renewal Program FY19/20 | 100,000 100,000
Spring rezone toner | emf ren
Upgrades
Pathways &Boardwalks Total =s=Ss74000,- 32,683; 0868S s—CSSCS
Pena SofSenioeromies rea) nee
underway in early 2019/20.
Public Amenities Total 877000017215 84
Program aa dd
Public Transport Infrastructure Total = 500,000, = 8000000 —CSsC
Whole of Shire Reseal & Rehabilitation Program | 3.600.000, - | 8600000,
al llc
Reconstruction
aces eerste SS ee
and Reef Street 2019/20.
Rina) vemmeCwenResmapen m
FY19/20
Tewah StGravelRoad Seal —SS—=«dS=Ci‘éi OOOO SCdC“(‘é zz FFFFFFFFOO™~™OCS
Heotor Street Road Widening and Kerb & Channel | 97.000, ssC(‘é mz‘ |FFFFFOC~S
Pomona, Ambulance Street Sealing of Gravel Section | 200.000, | —s—<“C*é‘ WOOO s—SSCSsS
tne
Sealed Roads Network Total 5,537,000 54,7470 584A
Renewal of various stormwater structures | 150,000) 50,0000
eg ee
due early 2019/20.
Gympie Terrace Stormwater 1,200,000 - 15,169 1,184,831 | Scope of work being finalised for construction to
commence late 2019/20. Overspend in 2018/19
adjusted as a carryover.
eee ton me mninacenen nee
2019/20.
Shire Bioretention Basin Renewals ProgramFY1920 | 60000, s—~<“<~*~sé~‘—S*~s~s—ésWOOD S—~—SS
Scemageae eons
Easement Upgrade
Stormwater Drainage Total 1,680,000 19,8381 | 99881
‘Streetscapes and Road Corridors
Page 46 of 68Section 47
Page 47 of 68
Project Description 2019/20 Carryovers Emergent Proposed Details
Original ay BR1 Total
Budget Budget
Sag ememnmaremeases | [ee] ae een
Renewal to commence.
Streetscapes and Road Corridors Total = 14156 AI
Nemes renesronmesoetoree [Sra] saa) 68 rnainemeec
Beckman's Road to separate project
SSS wan | icettnninemeetoe
Beckman's Road to separate project
Castaways Beach, David Low Way Safety and Corridor - 150,067 192,062 Additional construction costs incurred to finalise
Improvement surfacing works on David Low Way. Overspend in
isa cl ed i a
2018/19 adjusted as a carryover.
ag eee Reg
Drainage August 2019.
Noosaville Gympie Terrace Corridor Renewal Stage 2 764,000) 4000
‘Noosa Heads Leslie Drive Koala Pole Renewals | 14,000) 14000
Smears ees cre se ee
&CNLG Grant
Transport and Infrastructure Management Total _——3,578,000 - 3,647 192,062, 3,766,415
caiees mr sceemes | some] eee] | SR Snr arn
Investigation
CaueaonRoom | 0 atom cente
Education Room education centre.
Noosa Heads "The Woods" Bin Storage Enclosure 100,000, C~=<‘éOWOO et s—SS
Seer aos sre |
Gravel Road
Waste Management Total = 55,000 8,020 45,000 5080200
a
Reseal Program A
Whole of Shire, CCTV Drainage Program 800,000 —(“‘C;CC‘COOWOOO s—SSCS
cece Roeeinnesin[Sae | Sa| g S
2019/20
Shire Bridge Annual Level 3 inspections ———SSs110,000,—si—‘“‘“~*s*S*S*é~sNODS s—SSCS
Asset Management Systems Implementation | ——-250,000, SS Si80OD
la dl re aa
Forecasting System disaster resiliance in the shire
Asset Management Total 1,990,000 379,072 95,000 1864072
Penteerenreoen | ane eee ae
awaiting delivery in 2019/20
Fleet-Plant Replacement Total = 1,484,040 33293000 1,816,970
ad
TechnologyOne scope works underway
Information Technology Total == 800,000 1068717, HTT
Noosa River HydraulicModel =| | 84.910, |—__84,910 | Project ongoing with finaliation forecast in 2019/20
Whole of Shire, Climate Change Adaptation Strategy 50,000 202,305, ~——=—=—=—=—=«=S=~=«52,305 Project ongoing with finaliation forecast in 2019/20
Seng nenermirien [aon ie Se patina ain sn
Planning Scheme
Shire Project Team Materials & Services| ~SS«A6,952——————=«=~=—~=—«6,952._ Project ongoing with finaliation forecast in 2019/20
Shire Planning Scheme Consultancy SS SS«86,142——————=«—=—~—«186,442 | Project ongoing with finaliation forecast in 2019/20
Some renee [erat [eseeervenaiie eran em
Assessment
Fr een
Pilot
Planning Scheme Total = S000 88GB AS
Page 47 of 68Section 48
Page 48 of 68
Noosa Shire Council
2019/20 Capital Budget Review 1 - Capital Program ATTACHMENT 3
Renewal Projects
Row Labels Description Grants External Funds a) Pehla a General Rates Be) e-1|
bere) R lola) $2,302,007 A 3) Yaa A) -$315,007 $13,727,102 $16,376,378
Bridges CranTablelandsRoadBBridgeRenewal 880000 $80,000) $100,000
Bridges Kin Kin Wahnpunga Lane Bridge Renewal 800,000 $100,000, $200,000
Bridges Mary River Road Bridge Renewal 8815007 8815007 8
Bridges Noosa Heads Weyba Road Pedestrian Bridge Rena $154,000 $154,000
Bridges Sunrise Beach Orealla Bridge Renewal 8922500 882,015 $1,754,515
Bridges ST ewantin Doonelia Bridge Renewal 8293,047/ $293,047
Coastal Canals and Waterways = Beach Access Shower Renewal Claude Batten Drive 845,980 845,980
Coastal Canals and Waterways = ——_(Diisaster Resiliance Fund Tide Gauges and Flood Forecasting System 845000 850,000, $95,000
Coastal Canals and Waterways = Peeregian Beach Boardwalk Renewal North of Tower to Access 57 84 10,931 $410,931
Coastal Canals and Waterways = Renewal of revetment wall at O-Boats Gympie Tce 817,707 817,707
Community Facilities |= Community Facilities Minor Works 8184418 $184,418
Community Facilities === Noosaville Wallace House Restumping 885,000, $85,000
Community Facilities |. = = Peregian Beach Surf Club Roof Replacement 8164412) $184,412,
Community Facilities === Sunshine Beach NAC - 25m AMP Pool Renewal Program 825,000, $25,000
Community Facilities === Sunshine Beach NAC - 50m AMP Pool Renewal Program $260,000 $260,000
Community Facilities === Sunshine Beach NAC - LTS AMP Pool Renewal Program 840,000) $40,000
Community Facilities === Sunshine Beach NAC - Other AMP Infrastructure Renewal Program 810,000 $310,000
Community Facilities === Sunshine Beach NAC - Regrout / Recaulk and Replace Tiles (50m Pool) 885,000, $85,000
Community Facilities === Sunshine Beach NAC - Roof Replacement 828,650 $228,650
Corporate Buildings = Tewantin Admin Building - Security Upgrade 886,606 $86,606
Corporate Buildings = Tewanttin Administration Building Roof 881,775 881,775
Gravel Road Network = Shire Gravel Resheeting - Annual Program $410,000) $410,000
HolidayParks = Noosaville, Noosa River Holiday Park Large Amenities Refurbishment 85,000 $5,000
Libraries & Galleries == Cov roy Butter Factory Arts Centre (The Pottery) Louvre Replacement: 815,000, $15,000
Libraries & Galleries Noosaville Library Refurbishment 80,000 $0,000
Parks & Playgrounds = Lake Macdonald Botanic Garden Irrigation System Renewal 887,330 $57,330
Parks & Playgrounds = Lake Macdonald Botanic Garden Signage Renewal 825,608) $25,608
Parks & Playgrounds Noosa Heads Alex Dan Park Playground Renewal 887,427 887,427
Parks & Playgrounds Noosaville Gympie Terrace Park FurnitureRemewal $150,000, $150,000
Parks & Playgrounds Shire BBQ Renewal Program 875,000 $75,000
Parks & Playgrounds Shire Park Furniture Renewal Program 850,000, $50,000
Parks & Playgrounds Shire Park Shelter Renewal Program 845,000 $45,000
Parks & Playgrounds = Sunrise Beach Bern Lexcen Drive Park Playground Renewal 860,000) $60,000
Pathways & Boardwalks = Shire Pathway Renewal Program $100,000 $100,000
Pathways & Boardwalks = Wallace Park Pathway Stage 5 & 6 814,609 814,609
Public Amenities = == Peregian Beach Public Amenities Renewal Construction 8594,215 $594,215
Public Transport Infrastructure Shire Bus Shelter Disabled Compliant Program: Year6 0 8250,0000 $250,000 $500,000
Sealed Roads Network = Black Mountain Road Priority Sections Road Reconstruction (Hinterland Priority) 86827686 85,938 $1,318,214
Sealed Roads Network = __Cirectional Signage Walter Hay Drive Roundabouts and Reef Street 826,533 $26,533.
Sealed Roads Network Shire Kerb & Channel Renewal Program $100,000 $100,000
Sealed Roads Network = Shire Reseal & Rehabilitation Renewal Program 8,600,000 $3,600,000
‘Stormwater Drainage GPT Liner NetReplacement 815,000 $15,000
‘Stormwater Drainage Noosaville Gympie Terrace Stormwater Renewals 81,184,831 $1,184,831
Stormwater Drainage Shire Bioretention Basin Renewals Program 880,000 $80,000
Stormwater Drainage Shire Pit Structure Renewal Program $150,000 $150,000
‘Stormwater Drainage Swan Avenue Drainage 820,000 $20,000
Streetscapes and Road Corridors == George Pearce Memorial Bench and Parkyn Hut Sign Renewal 814,156 814,156
‘Transport and Infrastructure Management _—_—Castaways Beach, David Low Way Safety and Corridor Improvement 841,995 $41,995
Transport and Infrastructure Management _ Noosa Heads Leslie Drive Koala Pole Renewals 814,000 $14,000
‘Transport and Infrastructure Management _ Noosaville Gympie Terrace Corridor Renewal Stage200 89820000 86 32,000 $764,000
‘Transport and Infrastructure Management __Shire Forward Planning & Design Program Construction Ready Designs 800,000 $300,000
‘Transport and Infrastructure Management __— Sunshine Beach Pacific Avenue Pathway, Pedestrian & Drainage 8284448284
Transport and Infrastructure Management _Tewantin Hilton Terrace & Ernest St Intersection Upgrade Construction 487500 $30,000 4400476 $1,917,976
eta me Ot) o)ie|) $3,336,042 $3,336,042
AssetManagement Shire Bridge Annual Level 3 Inspections $110,000) $110,000
AssetManagement Shire CCTV Drainage program 800,000 $300,000
AssetManagement = Shire Road Infrastructure Asset Data Management & Condition Program 850,000 $350,000
AssetManagement = Zero Emissions Noosa Projectimplementation 875 9,072, $759,072
Fleet -PlantReplacement Council Fleet and Plant Replacement Program S4816.970_ «$1,816,970
Grand Total $2,302,007 $662,276 SEEM $17,063,143 $19,712,419
Page 48 of 68Section 49
Page 49 of 68
Upgrade, New and Expansion Projects
Item Description Grants Selma le) AY Ta ea General Rates ae)
Cemeteries Cooroy Cemetery Plant & Equipment Shed $60,000 $60,000
Commercial Land & Property Peregian Beach 5 Rufous St Redevelopment Stage 3 Construction $1,613,636 $1,759,109 $3,372,746
Holiday Parks Noosa North Shore Beachfront Campground Redevelopment $2,456,544 $2,456,544
Parks & Playgrounds Cooran Pioneer Park Facilities Upgrade $65,000 $65,000
Parks & Playgrounds Cooroy Hinterland Playground $836,631 -$515,104 $321,527
Parks & Playgrounds Lake Macdonald Botanic Garden Shade House $200,000 $167,602 $367,602
Parks & Playgrounds Peregian Beach Town Square Upgrade Planning & Design $13,890 $13,890
Pathways & Boardwalks Noosaville Sea Eagle Drive & Shire Drive Pathway Upgrades $54,000 $120,000 $174,000
Pathways & Boardwalks Tewantin, Hilton Terrace CNLGGP Shared Pathway $18,074 $18,074
Sealed Roads Network Boreen Point Tewah St Gravel Road Seal $250,000 $250,000
Sealed Roads Network Boreen Point, Hector Street Road widening and K&C $97,000 $97,000
Sealed Roads Network Pomona, Ambulance Street Sealing of Gravel Section $200,000 $200,000
Stormwater Drainage Noosaville Project Ave Stormwater Drainage Easement Upgrade $250,000 $250,000
Transport and Infrastructure Management Beckman's Road Interchange Upgrade $50,000 $50,000
Transport and Infrastructure Management Transport Strategy, Walking & Cycling Strategy and CNLG Grant Applications $100,000 $200,000 $350,000 $650,000
Waste Management Eumundi Rd Landfill Recyclables Sales Shed & Education Room $45,000 $45,000
Waste Management Noosa Heads "The Woods" Bin Storage Enclosure $100,000 $100,000
Waste Management Noosaville Eumundi Rd Transfer Station Sealing of Gravel Road $135,000 $135,000
Waste Management Noosaville Eumundi Road Landfill Design Stormwater Controls for Cell 2.3 $228,020 $228,020
Asset Management Asset Management Systems Implementation $250,000 $250,000
Information Technology Technology One Cl Anywhere Systems Implementation $906,717 $906,717
Planning Scheme Climate Change Adaptation Plan Develoment and Implementation $415,500 -$163,195 $252,305
Planning Scheme Noosa River Hydraulic Model $34,910 $34,910
Planning Scheme Shire Planning Scheme Consultancy $136,142 $136,142
Planning Scheme Shire Project Place Based Approach - Placemaking Pilot Program $100,000 $100,000
Planning Scheme Shire Project Team Materials & Services $46,952 $46,952
Planning Scheme Shire Project Team Resources for New Planning Scheme $581,048 $581,048
Planning Scheme Stormwater Backflow Climate Change Vulnerability Assessment $5,287 $5,287
Page 49 of 68Section 50
Page 50 of 68
ATTACHMENT 4
Revenue
Recurrent Revenue
Rates, levies & annual charges 67,992 710 68,702
Fees & charges 6,652 - 6,652
Dividend income 1,600 - 1,600
Interest received 4,010 - 4,010
Tax equivalents 1,450 - 1,450
Sale of Goods and major services 9,623 504 10,127
Sale of Contract and Recoverable Works 23 - 23
Rental & lease income 1,296 - 1,296
Other income 880 - 880
Grants, subsidies, contributions and donations 5,130 - 5,130
98,656 1,214 99,870
Expenses
Recurrent Expenses
Employee benefits 33,863 5 33,867
Materials & services 44,228 1,316 45,544
Finance costs 1,528 - 1,528
Depreciation & amortisation 18,713 - 18,713
Other expenses 188 - 188
98,520 1,321 99,841
OperatingResult 186 (807) 8
Summary of Capital Revenue and Expenditure
Capital Revenue
Capital contributions and donations 4,104 30 4,134
Grants, subsidies, contributions and donations 4,408 1,546 5,954
Other capital revenue - - -
TotalCapitalRevenue IZ 87E 10,088
Capital Expenditure
Contributed assets 2,000 - 2,000
Constructed assets 28,399 2,481 30,880
Other capital expenses - - -
Total Capital Expenditure = 80,899 ABT 82,880.
Page 50 of 68Section 51
Page 51 of 68
ATTACHMENT 5
| o r= pan = seas eit eee | 3 fe
me WN ees a eee IE Stas
2019/2020 |
BUDGET REVIEW 1 (BR1)
FINANCIAL STATEMENTS
Page 51 of 68Section 52
Page 52 of 68
Noosa Shire Council
2019/20 Budget Statements
For the period ending 30 June
: Current Original
2019 2020 2020 2021 yy 2023 2024 Ply PIT 2027 2028 2029
Statement of Comprehensive Income $,000 EA EA $,000 $,000 $,000 PMI $,000 $,000 $,000 $,000 $,000
Income PT
Revenue
Operating revenue
Net rates, levies and charges $ 65,251] $ 67,992] $ 68,702] $ 70,466 $ 72,389 $ 74,365 $ 76,395 $ 78,481 $ 80,623 $ 82,824 $ 85,085 $ 87,408
Fees and charges $ 6391]$ 6652]$ 7,155/$ 7,495 $ 7,746 $ 8024 $ 8312 $ 8610 $ 8919 $ 9,239 $ 9,541 $ 9,854
Rental income $ 1,292]$ 1,296]$ 1,296/$ 1,359 $ 1,393 $ 1,428 $ 1,463 $ 1,500 $ 1,537 $ 1,576 $ 1,615 $ 1,656
Interest received $ 2,041] $ 1,705]$ 1,704/$ 1,596 $ 1,560 $ 1,491 $ 1,467 $ 1,491 $ 1,547 $ 1,619 $ 1,747 $ 1,852
Sales revenue $ 9340]$ 9646]$ 9646]$ 10,069 $ 10,406 $ 10,779 $ 11,166 $ 11,566 $ 11,981 $ 12,411 $ 12,818 $ 13,238
Unitywater - interest received $ 2600]$ 2,305]$ 2,306/$ 2600 $ 2600 $ 2600 $ 2600 $ 2600 $ 2600 $ 2,600 $ 2,600 $ 2,600
Unitywater - dividends and tax equivalents $ 3,050]$ 3,050]$ 3,050/$ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050
Other income $ 924]$ 880 | $ 880] $ 909 $ 940 $ 973 $ 1,008 $ 1,04 $ 1,082 $ 1,121 $ 1,157 $ 1,195
Grants, subsidies, contributions and donations |$ 4,282|$ 5130]$ 5130]$ 5,131 $ 5132 $ 5133 $ 5134 $ 5135 $ 5136 $ 5137 $ 5,138 $ 5,139
Total operating revenue $ 95,170] $ 98,656] $ 99,869] $ 102,675 $ 105,216 $ 107,844 $ 110,596 $ 113,477 $ 116,475 $ 119,576 $ 122,751 $ 125,991
Capital revenue
Government subsidies and grants - capital $ 3,375]$ 4608]$ 6184/$ 4,736 $ 1,559 $ 1,832 $ 1,832 $ 1,132 $ 1,132 $ 1,332 $ 932 $ 1,332
Contributions - Assets and other non-nonetary| $ 2,000] $ 2,000]$ 2,000]$ 2,000 $ 2,000 $ 2,000 $ 2000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000
Contributions - Monetary $ 2043]$ 2104|$ 1904/$ 2104 $ 2104 $ 2104 $ 2104 $ 2104 $ 2104 $ 2104 $ 2104 $ 2,104
Total capital revenue $ 7,419] $ 8712] $ 10,088]$ 8840 $ 5,663 $ 5,936 $ 5936 $ 5,236 $ 5,236 $ 5,436 $ 5,036 $ 5,436
Total revenue $102,588 |$ 107,368 }$ 109,957 | $ 111,516 $ 110,879 $ 113,781 $ 116,532 $ 118,714 $ 121,711 $ 125,012 $ 127,787 $ 131,427
Capital income
Total capital income $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total income $102,588 |$ 107,368 }$ 109,957 | $ 111,516 $ 110,879 $ 113,781 $ 116,532 $ 118,714 $ 121,711 $ 125,012 $ 127,787 $ 131,427
Expenses
Operating expenses
Employee benefits $ 32,106] $ 33,863] $ 33,867]$ 34917 $ 35,907 $ 36926 $ 37,973 $ 39,049 $ 40,155 $ 41,292 $ 42,461 $ 43,662
Materials and services $ 42,337] $ 44,228] $ 45,544]$ 46817 $ 47,924 $ 49,057 $ 50,367 $ 51,858 $ 53,435 $ 55,198 $ 58,454 $ 60,236
Finance costs $ 2309]$ 1,528]$ 1,528/$ 1,383 $ 1,233 $ 1,074 $ 906 $ 725 $ 534 $ 441 $ 428 $ 417
Depreciation and amortisation $ 16,864] $ 18,713] $ 18,713]$ 19,319 $ 19,907 $ 20,486 $ 21,012 $ 21,515 $ 22,014 $ 22,311 $ 21,068 $ 21,290
Other expenses $ 154] $ 188 | $ 188 | $ 193 $ 197 $ 202 $ 207 _$ 212 $ 217 $ 222 $ 227 $ 232
Total operating expenses $ 93,770] $ 98,520] $ 99,841] $ 102,629 $ 105,169 $ 107,745 $ 110,465 $ 113,359 $ 116,354 $ 119,464 $ 122,637 $ 125,838
Capital expenses
Total capital expenses $ 243]$ 2431 $ 2431 $ 246 $ 252 $ 258 $ 265 $ 272 $ 278 $ 285 $ 292 $ 300
Total expenses $ 94,013] $ 98,763]$ 100,084] $ 102,875 $ 105,421 $ 108,003 $ 110,730 $ 113,631 $ 116,632 $ 119,749 $ 122,930 $ 126,138
Net result $ 8,576]$ 8605|]$ 9,874/$ 8641 $ 5,458 $ 5,777 $ 5802 $ 5,083 $ 5,079 $ 5,264 $ 4,858 $ 5,289
Operating result
Operating revenue $ 95,170] $ 98,656] $ 99,869] $ 102,675 $ 105,216 $ 107,844 $ 110,596 $ 113,477 $ 116,475 $ 119,576 $ 122,751 $ 125,991
Operating expenses $ 93,770] $ 98,520] $ 99,841 | $ 102,629 $ 105,169 $ 107,745 $ 110,465 $ 113,359 $ 116,354 $ 119,464 $ 122,637 $ 125,838
Operating result $ 1400/$ 136/$ 29]$ 46 $ 47 $ 99 $ 131 $ 118 $ 121 $ 112 $ 114 $ 153
Page 52 of 68Section 53
Page 53 of 68
Noosa Shire Council
2019/20 Budget Statements
For the period ending 30 June
Current Original
2019 PY 2020 PIP) yy Pye 2024 2025 2026 2027 2028 2029
Statement of Financial Position $,000 $,000 $,000 $,000 $,000 $,000 $,000 emt) $,000 Emi $,000 $,000
Assets PT
Current assets
Cash and cash equivalents $ 53,496|$ 38,144] $ 36941] $ 34419 $ 30,062 $ 27,931 $ 28,350 $ 30,438 $ 31,424 $ 37,770 $ 42,322 $ 48,933
Trade and other receivables $ 8795|$ 9,174]$ 9,2721$ 9,549 $ 9,806 $ 10,072 $ 10,319 $ 10629 $ 10,919 $ 11,218 $ 11,489 $ 11,832
Inventories $ 330 | $ 330 | $ 330 | $ 330 $ 330 $ 330 $ 330 $ 330 $ 330 $ 330 $ 330 $ 330
Other current assets $ 490 | $ 501 | $ 501 | $ 512 §$ 524 $ 536 $ 548 $ 560 $ 572 $ 584 $ 596 $ 608
Total current assets $ 63,111] $ 48,148] $ 47,044|$ 44810 $ 40,721 $ 38,870 $ 39,546 $ 41,957 $ 43,245 $ 49,902 $ 54,737 $ 61,703
Non-current assets
Investments $ 131,762 | $ 131,762] $ 131,762] $ 131,762 $ 131,762 $ 131,762 $ 131,762 $ 131,762 $ 131,762 $ 131,762 $ 131,762 $ 131,762
Property, plant & equipment $ 895,127 | $ 923,966] $ 925,784] $ 953,645 $ 980,898 $1,006,813 $1,030,769 $1,052,812 $1,076,414 $1,098,187 $1,121,513 $1,143,700
Other non-current assets $ 7,027|$ 7,581]$ 8244]$ 7,762 $ 7,098 $ 6409 $ 5693 $ 4950 $ 4,180 $ 3619 $ 3,785 $ 3,943
Total non-current assets $ 1,033,916 | $1,063,309 | $1,065,790 | $1,093,169 $1,119,759 $1,144,984 $1,168,224 $1,189,524 $1,212,356 $1,233,568 $1,257,060 $1,279,405
Total assets $ 1,097,027 | $1,111,457 | $1,112,834 | $1,137,979 $1,160,480 $1,183,853 $1,207,770 $1,231,481 $1,255,601 $1,283,471 $1,311,797 $1,341,108
Current liabilities
Trade and other payables $ 4,747|$ 4964]$ 5072]$ 5227 $ 5356 $ 5488 $ 5621 $ 5800 $ 5973 $ 6162 $ 6457 $ 6,667
Borrowings $ 3621]/$ 2,508]/$ 2508]$ 2658 $ 2817 $ 2,985 $ 3,166 $ 3,357 $ 466 $ 333 344 302
Provisions $ 4,061|$ 4061]$ 4061/$ 4,163 $ 4,267 $ 4373 $ 4483 $ 4595 $ 4,710 $ 4827 $ 4948 $§ 5,072
Other current liabilities $ 665 | $ 675 | $ 675 | $ 685 §$ 695 $ 706 $ 717 $ 728 $ 740 $ 752 $ 764 $ 776
Total current liabilities $ 13,094/$ 12,208] $ 12,316|$ 12,732 $ 13,135 $ 13,552 $ 13,987 $ 14,480 $ 11,888 $ 12,074 $ 12,512 $ 12,817
Non-current liabilities
Borrowings $ 31,674] $ 18108] $ 18108] $ 15,450 $ 12633 $ 9649 $ 6482 $ 3125 $ 2659 $ 2,326 $ 1,982 $ 1,680
Provisions $ 10,686] $ 10,929] $ 10929] $ 11,201 $ 11,479 $ 11,765 $ 12,058 $ 12,358 $ 12,666 $ 12,981 $ 13,305 $ 13,636
Total non-current liabilities $ 42,360] $ 29,037] $ 29,037|$ 26651 $ 24,113 $ 21,414 $ 18540 $ 15,483 $ 15,325 $ 15,307 $ 15,287 $ 15,316
Total liabilities $ 55,454|$ 41,245] $ 41,353] $ 39,383 $ 37,247 $ 34,966 $ 32,527 $ 29,964 $ 27,213 $ 27,381 $ 27,799 $ 28,133
bd
Net community assets $ 1,041,573 | $1,070,213 | $1,071,481 | $1,098,596 $1,123,233 $1,148,887 $1,175,243 $1,201,517 $1,228,388 $1,256,090 $1,283,998 $1,312,975
Asset revaluation surplus $ 58,039] $ 75,747] $ 75,747] $ 94,220 $ 113,399 $ 133,276 $ 153,830 $ 175,021 $ 196,812 $ 219,250 $ 242,301 $ 265,988
Retained surplus $ 982,860 | $ 994,466 | $ 995,735 | $1,004,375 $1,009,834 $1,015,611 $1,021,413 $1,026,496 $1,031,576 $1,036,839 $1,041,697 $1,046,987
Total community equity $ 1,040,899 | $1,070,213 | $1,071,481 | $1,098,596 $1,123,233 $1,148,887 $1,175,243 $1,201,517 $1,228,388 $1,256,090 $1,283,998 $1,312,975
Page 53 of 68Section 54
Page 54 of 68
Noosa Shire Council
2019/20 Budget Statements
For the period ending 30 June
Current Original
2019 2020 2020 2021 2022 2023 2024 2025 2026 YAH A 2028 2029
Statement of Cash Flows $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000
Cash flows from operating activities Pf
Receipts from customers $ 81,990} $ 84812]$ 85933]$ 88668 $ 91,228 $ 93,878 $ 96637 $ 99,396 $ 102,318 $ 105,299 $ 108,332 $ 111,357
Payments to suppliers and employees ($ 81,752) |($ 78,407) }($ 79,620) |($ 81,989) ($ 84,114) ($ 86,263) ($ 88,622) ($ 91,144) ($ 93,835) ($ 96,721) ($ 101,040) ($ 104,110)
Dividend received $ 3,050 | $ 3,050 | $ 3,050 | $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050 $ 3,050
Interest received $ 4641/$ 4010/$ 4010}$ 4,196 $ 4160 $ 4091 $ 4067 $ 4,091 $ 4147 $ 4219 $ 4347 $ 4,452
Rental income $ 1,293 | $ 1,292 | $ 1,291 | $ 1,353 $ 1,390 $ 1,425 $ 1,461 $ 1,497 $ 1,534 $ 1,573 $ 1,612 $ 1,652
Non-capital grants and contributions $ 4,286|$ 5113/$ 5109}$ 5130 $ 5132 $ 5133 $ 5135 $ 5134 $ 5136 $ 5137 $ 5139 $ 5,138
Borrowing costs ($ 1,968) |($ 1,183) |($ 1,183) |($ 1,038) ($ 888) ($ 729) ($ 561) ($ 380) ($ 189) ($ 95) ($ 83) ($ 72)
Other cash flows from operating activities $ 1,613 |($ 11) |($ 11) ($ 11) ($ 12) ($ 12) ($ 12) ($ 12) ($ 12) ($ 12) ($ 12) ($ 12)
Net cash flow from operating activities $ 18,676] $ 18,579|$ 19,359 $ 19,946 $ 20,573 $ 21,155 $ 21,632 $ 22,149 $ 22,449 $ 21,345 $ 21,454
Cash flows from investing activities
Payments for property, plant and equipment ($ 26,026) |($ 26,999) }($ 28,817) |($ 25,774) ($ 25,018) ($ 23,534) ($ 21,399) ($ 19,324) ($ 20,755) ($ 18,785) ($ 19,208) ($ 17,648)
Payments for intangible assets ($ 2,365) |($ 1,400) |($ 2,063) |($ 450) ($ 300) ($ 300) ($ 300) ($ 300) ($ 300) ($ 300) ($ 300) ($ 300)
Grants, subsidies, contributions and donations $ 5.4191 $ 6,712 | $ 8,088 | $ 6,840 $ 3,663 $ 3,936 $ 3,936 $ 3,236 $ 3,236 $ 3,436 $ 3,036 $ 3,436
Other cash flows from investing activities ($ 32) | $ 10 | $ 10] $ 10 $ 10 $ 11. $ 11. $ 11. $ 12 $ 12 $ 12 $ 12
Net cash flow from investing activities ($ 23,004) |($ 21,677) |($ 22,782) |\($ 19,374) ($ 21,645) ($ 19,887) ($ 17,751) ($ 16,377) ($ 17,807) ($ 15,637) ($ 16,460) ($ 14,500)
Cash flows from financing activities
Proceeds from borrowings $ 2,475 | $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Repayment of borrowings ($ 3,320) |($ 2,352) 1($ 2,352) |($ 2,508) ($ 2,658) ($ 2,817) ($ 2,985) ($ 3,166) ($ 3,357) ($ 466) ($ 333) ($ 344)
Net cash flow from financing activities ($ 845) ($ 2,508) ($ 2,658) ($ 2,817) ($ 2,985) ($ 3,166) ($ 3,357) ($ 466) ($ 333) ($ 344)
Total cash flows
Ss
Net change in cash and cash equivalent held |($ 10,697) |($ 5,352) |($ 6,555) |($ 2,522) ($ 4,357) ($ 2,130) $ 419 $ 2,089 $ 985 $ 6347 $ 4,552 $ 6,611
Opening cash and cash equivalents $ 64,193]$ 43,496|$ 43,4961$ 36,941 $ 34,419 $ 30,062 $ 27,931 $ 28,350 $ 30,438 $ 31,424 $ 37,770 $ 42,322
Closing cash and cash equivalents $ 53,496|$ 38,144/$ 36941]$ 34,419 $ 30,062 $ 27,931 $ 28350 $ 30,438 $ 31,424 $ 37,770 $ 42,322 $ 48,933
Note: The 2019/2020 opening cash balance reflects a $10 million early repayment of loan borrowings made at Council meeting
dated 16 May 2019, and subsequent to adoption of the current budget on 18 April 2019.
Page 54 of 68Section 55
Page 55 of 68
Noosa Shire Council
2019/20 Budget Statements
For the period ending 30 June
Current Original
Annual Result Budget Budget
2019 2020 2020 2021 yy Pye) yy Ply 2026 2027 2028 2029
Statement of Changes in Equity $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000
Opening balance $ 41,739] $ 58,039] $ 58,039] $ 75,747 $ 94,220 $ 113,399 $ 133,276 $ 153,830 $ 175,021 $ 196,812 $ 219,250 $ 242,301
Change in asset revaluation surplus $ 16300] $ 17,708} $ 17,708] $ 18474 $ 19,179 $ 19,877 $ 20,554 $ 21,191 $ 21,791 $ 22,438 $ 23,051 $ 23,687
Closing balance $ 58,039] $ 75,747] $ 75,747] $ 94,220 $ 113,399 $ 133,276 $ 153,830 $ 175,021 $ 196,812 $ 219,250 $ 242,301 $ 265,988
Retained surplus
Opening balance $ 974,284 | $ 985,861 | $ 985,861] $ 995,735 $1,004,375 $1,009,834 $1,015,611 $1,021,413 $1,026,496 $1,031,576 $1,036,839 $1,041,697
Net result $ 8,576 | $ 8,425 | $ 9,874] $ 8.641 §$ 5,458 $ 5,777 $ 5,802 $ 5,083 $ 5,079 $ 5,264 $§$ 4,858 $ 5,289
Closing balance $ 982,860 | $ 994,286 | $ 995,735 | $1,004,375 $1,009,834 $1,015,611 $1,021,413 $1,026,496 $1,031,576 $1,036,839 $1,041,697 $1,046,987
Total
Opening balance $ 1,016,023 | $1,043,900 | $1,043,900 | $1,071,481 $1,098,596 $1,123,233 $1,148,887 $1,175,243 $1,201,517 $1,228,388 $1,256,090 $1,283,998
Net result $ 8576|$ 8425|$ 9,874|]$ 8641 $ 5458 $ 5,777 $ 5802 $ 5083 $ 5,079 $ 5,264 $ 4858 $ 5,289
Change in asset revaluation surplus $ 16,300] $ 17,708] $ 17,708] $ 18474 $ 19179 $ 19,877 $ 20,554 $ 21,191 $ 21,791 $ 22,438 $ 23,051 $ 23,687
Closing balance $ 1,040,899 | $1,070,032 | $1,071,481 | $1,098,596 $1,123,233 $1,148,887 $1,175,243 $1,201,517 $1,228,388 $1,256,090 $1,283,998 $1,312,975
Page 55 of 68Section 56
Page 56 of 68
Noosa Shire Council
2019/20 Budget Statements
For the period ending 30 June
Budget Budget Target
2019 2020 2020 2021 yyy 2023 Ply} 2025 2026 2027 2028 2029
Operating Surplus Ratio 1.5% 0.1% 0.0% 0-10% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Net Financial Liabilities Ratio -8.0% 6.8% -5.7% <60% -5.3% -3.3% -3.6% -6.3% -10.6% -13.8% -18.8% -21.9% -26.6%
Asset Sustainability Ratio 132.4% 119.6% 110.3% >90% 101.0% 100.6% 104.0% 99.3% 90.7% 89.6% 83.0% 83.3% 80.0%
Operating Surplus Ratio
Measures the extent to which revenues raised cover operational expenses
only or are available for capital funding purposes or other purposes.
Calculation: Net operating result divided by total operating revenue, expressed as a % (excluding capital revenue or expenses).
Target: between 0% and 10%
Net Financial Liabilities Ratio
Measures the extent to which the net financial liabilities of Council can
be repaid from operating revenues.
Calculation: (total liabilities less current assets) divided by
total operating revenue, expressed as a %.
Target: not greater than 60%.
Asset Sustainability Ratio
This ratio reflects the extent to which the assets managed by Council
are being replaced as they reach the end of their useful lives.
Calculation: capital expenditure on the replacement of infrastructure assets
(renewals) divided by depreciation expense, expressed as a %.
This includes infrastructure as well as plant and equipment.
Intangibles are excluded.
Target: greater than 90%.
Page 56 of 68Section 57
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
12 FINANCIAL PERFORMANCE REPORT - JULY 2019
DOCUMENT INFORM AT ION
Author Manager Financial Services, Trent Grauf
Corporate Services Department
Index ECM/ Subject/ 22.09 – Monthly Financial Performance Report
Attachments 1. Statement of Income and Expenditure (Profit & Loss and Capital)
2. Statement of Financial Position
3. Statement of Cash Flows
EXECUTIVE SUMMARY
Performance against current budget for the month of July 2019 aligns with YTD budget at this
early stage of the new financial year. Note that budget review (BR1) carryovers (included in the
meeting agenda) have not yet been adopted and are excluded from these results.
YTD Financial Performance Summary
Budget Actual Variance Variance Status
$m $m $m %
Operating Revenue $37.7 $38.6 $0.9 2.3% On Track
Operating Expense $9.1 $8.6 $0.5 5.3% On Track
Operating Position $28.6 $30.0 $1.4 4.7%
Capital Revenue $0.2 $0.9 $0.7 372.3% On Track
Capital Expenditure* $1.3 $0.6 $0.7 55.9% Below Budget
* Reflects constructed assets and intangibles only (excludes contributed)
Financial statements including Statement of Income & Expenditure, Statement of Financial
Position (balance sheet), and Statement of Cash Flows are included as attachments for
information for Council.
Figure 1: Actual Performance Compared to Budget
$40
YTD Budget ($m)
$35
YTD Actual ($m)
$30
$25
$20
$15
$10
$5
$-
Operating Revenue Operating Expenditure
Page 57 of 68
Section 58
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
This report also includes changes to present Council’s performance on a number of key
measures of financial sustainability. These indicators, as supported by various industry bodies
including QTC and QAO, enable users of financial data to assess an organisation’s long term
success in managing its budget, cash and debt as well as asset management.
The table below contains a snapshot of key measures, with full detail included in the report.
YTD Measures of Financial Sustainability
Target Current Actual YTD
Budget
Operating Surplus Ratio 0-10% 0.1% 77.7% On Track
Net Financial Liabilities Ratio <60% -7.0% -48.5% Above Target
Cash Cover Ratio 3 months 5.8 months 9.1 months Above Target
Asset Sustainability Ratio > 90% 120% 4% On Track
RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 12 August 2019 outlining July 2019 year to date financial performance against
budget, including changes to the financial performance report with the inclusion of key financial
sustainability indicators.
REPORT
Operating Revenue (YTD Benchmark 8.3%)
Council has received 39% ($38.6 million) of its operating revenue budget ($98.7 million).
Commentary on each revenue category is provided below.
Category Summary Comments
Rates and Levies $35.4 million (52%) of the Waste levy associated with commercial utility
annual budget of $68.0 charges $355k (currently no budget – dealt
million has been earned with via BR1)
Waste utility charges $360k above YTD budget
(54% or $4.5 million of $8.4 million budget
earned)
Fees and $1.4 million (20%) of the $6.7 Plumbing application fees $62k above YTD
Charges million annual budget has budget (23% or $220k of $971k budget
been earned earned)
Development related fees $52k above YTD
budget (11% or $184k of $1.6 million budget
earned)
Local laws fees $20k above YTD budget (37%
or $521k of $1.4 million budget earned)
Sale of Goods $656k (7%) of the $9.6 Landfill disposal charges $42k above YTD
and Services million budget has been budget (10% or $323k of $3.4 million budget
received earned)
Noosa Leisure Centre sales $16k above YTD
budget (10% or $59k of the $575k budget
earned)
Interest $107k (3%) of the $4.0 Investment revenue $23k above YTD budget
Received million annual budget has (11% or $107k of $1.0 million budget earned)
been earned
Page 58 of 68
Section 59
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Category Summary Comments
Recent downward movements in interest rates
will impact on Council’s interest revenue on
cash invested, and will need to be monitored
Unitywater On track Nil
Dividend and
Tax
Other Revenue $78k (9%) of the $880k Water Bottle filling station contribution from
budget has been earned MOU with Unitywater $11k (not budgeted)
Civil operations internal recoveries for plant
hire $85k (no budget)
Operating $815k (16%) of the $5.1 Operating grants are in line with budget
Grants, million budget has been expectations at this stage.
Subsidies received 50% or $1.1 million of the financial assistance
grant was again prepaid in June 2019 and may
impact on Council’s 2019/20 final operating
position if the prepayment approach is
discontinued by the Australian government.
Figure 2: Operating Revenue Position by Type (Excluding Rates)
$1.6
YTD Budget ($m)
$1.4
YTD Actual ($m)
$1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$0.0
Income
Charges
Other
Grants
Goods &
Dividend
Services
Sales of
Rental
Interest
Fees &
& Tax
Operating Expenditure (YTD Benchmark 8.3%)
Actual operating expenditure is currently 9% ($8.6 million) of full year budget ($98.5 million).
Detailed commentary for each expenditure category is provided below.
Category Summary Comments
Employee Costs $2.4 million (7%) of the Under expenditure for permanent staff salaries
annual budget of $32.2 and wages ($349k) partially offset by additional
million has been expended spend on casual staff and external labour hire
($80k)
Staff training $4k above YTD budget (1% or
$4k of $337k budget expended)
Materials and $2.9 million (7%) of the $41.2 Community Development $42k below YTD
Services million annual budget has budget (25% or $241k of $979k budget spent)
been expended. – timing of approved grants payments
Page 59 of 68
Section 60
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Category Summary Comments
Works Operations maintenance programs
$36k below YTD budget (4% or $120k of $3.0
million budget spent)
Noosa Community Support $30k below YTD
budget (8% or $29k of $354k budget spent)
Waste Management contract costs for landfill
and waste collection $22k below YTD budget
(7% or $603k of $8.4 million budget spent
Finance Costs On track Nil
Depreciation On track Nil
Other Expenses On track Nil
Figure 3: Operating Expenditure Position by Type
$6.0
YTD Budget ($m)
$5.0
YTD Actual ($m)
$4.0
$3.0
$2.0
$1.0
$0.0
Materials
Finance Costs
Depreciation
Employees
Other
Capital Revenue
YTD capital revenue of $981k received comprises cash contributions from developers ($131k)
and capital grants ($850k). Included in the capital grant revenue received in July was the upfront
30% payment for the Hinterland Playground from the state government. Note that the timing of
capital grant receipts are generally dependent on the timing of grant conditions and also capital
delivery performance, and that the timing of the receipt of developer contributions (both cash and
contributed) is unpredictable.
Page 60 of 68
Section 61
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Figure 4: Capital Revenue by Type
$0.9
YTD Budget ($m)
$0.8
YTD Actual ($m)
$0.7
$0.6
$0.5
$0.4
$0.3
$0.2
$0.1
$0.0
Subsidies
Contributions
Contributed
Grants /
Assets
Cash
Capital Program
Actual capital expenditure (excluding commitments) is $567k (YTD budget $1.3 million). Capital
carryovers included in the budget review will increase the total capital program. Detailed
discussion of progress in the delivery of the capital works program is provided through a separate
report by the Asset Planning Manager.
Figure 5: Capital Program Delivery Performance
$1.2
YTD Budget ($m)
$1.0
YTD Actual ($m)
$0.8
$0.6
$0.4
$0.2
$0.0
Capital works Other capital
Cash Management and Investment Performance
Total cash on hand at the end of July was $59 million. Included in this balance are funds held in
trust and for restricted purposes (e.g. unexpended levy and grant funds), the prepaid financial
assistance grant and unspent monies committed for funding capital projects which are underway
and will likely carryover into the 2019/20 financial year.
Page 61 of 68
Section 62
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
The following pie charts present the mix of cash held at July 2019 by agency (graph on the left)
and by credit risk rating (graph on the right). All funds have been invested in accordance with the
Investment Policy and in consideration of the principles of ethical investment, preservation of
capital, return on investment and counterparty thresholds
Figure 6: Closing Cash Held by Agency and Credit Rating
Bendigo A3
Suncorp 7% (Bendigo)
3% 7%
A1
(Suncorp)
NAB 3%
10%
A1 +
CBA (CBA + NAB +
12% Wpac)… A1 +
(QTC)
QTC 67%
67%
The following chart monitors the year-to-date trend on total cash and the agencies invested. The
bi-annual issue of rates and levies occurred in July, which will increase to cash balances during
July and August. During July, $2 million invested into QTC cash deposits with further investments
to occur during August.
Figure 7: 12 Month Trend of Cash Invested by Agency
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
-
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
Bendigo TD Westpac TD NAB TD Suncorp TD CBA TD QTC CBA Operating
Page 62 of 68
Section 63
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no current emerging risks regarding
performance noting the financial year has only just commenced.
Category Comments
Operating Surplus Ratio Intent: Identifies the extent to which
revenues cover operational expenses,
to ensure community equity is not
degraded
Target: 0 – 10%
Result: 77%
Comment: The high ratio reflects the
levying of rates in July, which will
degrade as expenditure occurs on
operations through to 30 June 2020
Cash Expense Cover Intent: Indicates how long council can
continue paying its day-to-day
expenses from cash at bank without
needing additional cash flows
Target: > 3 months
Result: 9 months
Comment: Following a $10M early
loan repayment and being at the
bottom of the rates cycle, Council still
has sufficient surplus cash to remain
financially flexible and accommodate
unforeseen events
Asset Sustainability Ratio Intent: Measures the extent to which
assets are being replaced as their
condition degrades to ensure service
potential is maintained
Target: 90% of depreciation budget
spent on renewals annually
Result: In line with budget
Comment: The capital program has
only just commenced. It is expected
that the ratio will progressively
increase each month as expenditure
on renewals occurs.
Page 63 of 68
Section 64
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Category Comments
Net Financial Liabilities Ratio Intent: Outlines the level that net
Council debt can be serviced by
operating revenues. A ratio below zero
implies that liabilities are less than
cash (and other current assets) and
there is adequate borrowing capacity
available if needed.
Target: less than 60%
Result: -7.0% budget
Comment: Council has low debt
levels and strong cash holdings. The
July rates revenue also inflates the
YTD actual outcome
Investment Return Intent: Ensure appropriate return on
investment yield for cash at bank.
Target: 0.25% above current
Bloomberg commonwealth 10 year
bond rate yield (1.4%)
Result: 2.1%
Comment: Regardless of the decline
in long term bond rates (due to
international market factors), Council’s
investment return still remains well
above target
Rates in Arrears Intent: Ensuring that the amount of
unpaid rates remains sustainable and
does not negatively impact cash flows
Target: 5% industry benchmark
Result: 5.8%
Comment: At the low point in the
cycle and will increase again in August
as the July rates become due
following discount close
Previous Council Consideration
Nil.
Finance
As above.
Risks & Opportunities
Council’s risk register includes a number of risks that could impact on ongoing financial
sustainability. Effective budget management and reporting is an important risk mitigation tool.
Page 64 of 68
Section 65
GENERAL COMMITTEE MEETING AGENDA 12 AUGUST 2019
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
Departments/Sections Consulted:
X Chief Executive Officer X Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
X Executive Services X Environment & Sustainable Development X Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
Page 65 of 68
Section 66
Page 66 of 68
Noosa Council ATTACHMENT 1
Statement of Income and Expenditure
For the Year Ended 30 June 2020
As at 31 July 2019
Current Current
Budget Budget Actual Variance Annual
2020 YTD YTD YTD Budget
($'000) ($'000) ($000) ($'000) %
Profit and Loss Statement
Revenue
Recurrent Revenue
Rates, levies and charges 67,992 34,893 35,442 549 52%
Fees and charges 6,652 1,245 1,357 111 20%
Dividend income 1,600 - - - 0%
Interest received 4,010 84 107 23 3%
Tax equivalents 1,450 - - - 0%
Sale of Goods and major services 9,623 597 656 59 1%
Sale of contract and recoverable works 23 - 0 0 0%
Rental & lease income 1,296 129 135 7 10%
Other income 880 56 78 22 9%
Grants, subsidies, contributions and donations 5,130 731 815 84 16%
98,656 37,736 38,590 854 39%
Expenses
Recurrent Expenses
Employee benefits 33,863 2,563 2,439 (125) 7%
Materials and services 44,228 4,780 4,434 (346) 10%
Finance costs 1,528 127 128 0 8%
Depreciation and amortisation 18,713 1,559 1,559 - 8%
Other expenses 188 44 34 (10) 18%
98,520 9,074 8,593 (481) 9%
Operating Result 136 28,662 29,996 1,334
Summary of Capital Revenue and Expenditure
Capital Revenue
Capital contributions and donations 4,104 - 131 131 3%
Grants, subsidies, contributions and donations 4,408 180 850 670 19%
Other capital revenue - - - - 0%
Total Capital Revenue 8,512 180 981 801
Capital Expenditure
Contributed assets 2,000 - - - 0%
Constructed assets 28,399 1,287 567 (720) 2%
Other capital expenses - - 6 6 0%
Total Capital Expenditure 30,399 1,287 574 (713)
Page 66 of 68Section 67
Page 67 of 68
Noosa Council ATTACHMENT 2
Statement of Financial Position
For the Year Ended 30 June 2020
As at 31 July 2019
Current Actual Actual
Budget YTD Full Year
2020 2020 2019
($000) ($000) ($000)
Current Assets
Cash and cash equivalents 38,144 58,930 55,981
Trade and other receivables 9,174 37,922 6,565
Inventories 330 195 219
Other current assets 501 3,745 4,887
48,148 100,793 67,651
Non Current Assets held for sale - - -
Total Current Assets 48,148 100,793 67,651
Non Current Assets
Trade and other receivables 49,218 49,218 49,218
Other non current Assets - - -
Investments 78,377 60,978 60,978
Investment property 4,167 4,167 4,167
Property, plant and equipment 923,966 884,855 876,478
Intangible assets 7,581 5,923 5,923
Total Non Current Assets 1,063,309 1,005,141 996,764
Total Assets 1,111,457 1,105,934 1,064,414
Current Liabilities
Trade and other payables 4,964 9,916 8,125
Borrowings 2,508 3,225 632
Provisions 4,061 4,511 4,831
Other 675 2,678 2,581
Total Current Liabilities 12,209 20,330 16,169
Non Current Liabilities
Trade and other payables - - -
Borrowings 18,108 21,120 23,600
Provisions 10,929 11,486 11,486
Total Non Current Liabilities 29,036 32,606 35,086
Total Liabilities 41,245 52,936 51,255
Net Community Assets 1,070,212 1,052,998 1,013,160
Community Equity
Asset Revaluation Surplus 75,746 50,809 41,740
Retained Surplus / (Defeciency) - - -
Shire Capital 994,466 971,218 956,885
Current Year Net Earnings - 30,971 14,535
Total Community Equity 1,070,212 1,052,998 1,013,160
Page 67 of 68Section 68
Page 68 of 68
Noosa Council ATTACHMENT 3
Statement of Cash Flows
For the Year Ended 30 June 2020
As at 31 July 2019
Current Actual Actual
Budget YTD Full Year
2020 2020 2019
($'000) ($'000) ($'000)
Cash flows from operating activities
Cash Flows from Operating Activities
Receipts from Customers 84,812 10,398 88,381
Payments to Suppliers and Employees (78,407) (9,101) (73,702)
6,405 1,297 14,679
Receipts:
Investment and Interest Revenue Received 4,010 107 4,892
Rental Income 1,292 135 1,252
Non Capital Grants and Contributions 5,113 815 5,447
Income Tax Equivalent Received 1,200 - 1,450
Income from Equity Investments 1,850 - 1,600
Payments:
Borrowing Costs - - -
Interest Expense (1,194) (15) (1,763)
Net Cash Inflow/(Outflow) from Operating Activities 18,676 2,339 27,557
Cash Flows from Investing Activities
Receipts:
Proceeds of Sale of Property, Plant and Equipment 10 - 375
Grants, Subsidies, Contributions and Donations 6,712 981 8,696
Payments:
Payments of Property, Plant and Equipment (26,999) (325) (28,359)
Payments for Intangible Assets (1,400) (44) (1,191)
Net Cash Inflow/(Outflow) from Investing Activities (21,677) 611 (20,480)
Cash Flows from Financing Activities
Receipts:
Proceeds from Borrowings - - -
Payments:
Repayment of Borrowings (2,352) - (15,289)
Net Cash Inflow/(Outflow) from Financing Activities (2,352) - (15,289)
Net Increase/(Decrease) in Cash and Cash Equivalents held (5,352) 2,950 (8,212)
Cash and Cash Equivalents at the beginning of the reporting period 43,496 55,981 64,193
Cash and Cash Equivalents at the end of the reporting period 38,144 58,930 55,981
Page 68 of 68