2024-2025 Budget Adoption

Frank Wilkie0:00

And welcome everybody to the Special Meeting to adopt the 2024-25 budget. I declare the meeting open at 9am. I'd like to acknowledge that we're meeting on the traditional lands of the Kabi Kabi people. Pay my respects to their elders past, present and emerging. I note that everyone is in attendance and as mentioned today's Special Meeting is to consider Noosa Council's 24/25 budget. The first item on the agenda is adoption of the 24/25 budget policies including the financial sustainability policy. Investment of surplus funds policy, the debt policy, restricted cash policy, general rate donations policy, entertainment and hospitality expenditure policy, the non-current asset accounting policy, the asset management policy, the procurement policy. To rescind the tender of financial capacity assessment policy and adopt the new rates financial hardship policy. It's an omnibus motion and here to give us an overview is our Acting Director Corporate Services Trent Grauf and manager of financial services Pauline Coles. Welcome.

Go on Councillors. Under the Local Government Act and its supporting regulation we are required to prepare a number of policies to support the budget adoption. The two mandatory policies in the suite of policies in front of you for consideration are the investment and debt policy. In addition to those mandatory policies Council also has a number of finance procurement and asset management policies that should be reviewed on a regular basis so to ensure prudent financial governance we also adopt a proactive approach and bring those forward as part of the budget process to review and adopt annually. There's ten policies in total for consideration I'll just mention each one of them briefly for their purpose and then I can get for questions. The first and foremost is the financial sustainability policy financial it outlines the governance framework that Council will work within to ensure that Councillors finances remain sustainable in the long term. The only change to this policy for the 24-25 year is to recognise the Corporate Plan objective and likely impending finance industry legislation on ESG reporting. Our commitment to follow that process in the coming years. The second policy is our investment of surplus funds policy. That remains current with only some minor disclosure changes. Our debt policy includes an outline of our borrowing proposed for the coming financial year as well as an indicative program of future nine borrowings. Council proposes to borrow $5 million in the 24-25 year to fund waste management works. With the management of restricted cash policy, that outlines. Where we set aside and restrict cash for regulatory reasons, levies or key signature future projects to ensure there's sufficient working capital to meet our long-term liquidity. That policy remains current and only monitor this disclosure changes. We have our general rate donations policy, which outlines the eligibility criteria for community organisations to receive a donation that discounts their general rates. Again, that policy remains current but only monitor disclosure changes. The entertainment and hospitality policy. Provides direction on how Council officers and Councillors spend entertainment and hospitality spend. That policy remains current with only monitor disclosure changes. We have two policies on asset management. One is the non-current asset accounting policy which guides the financial. Disclosure of non-current assets. There's no change to that policy for this financial year. And our asset management policy which has been updated to reflect a recent internal audit review and increased disclosure on our framework for asset management. The procurement policy has been updated this financial year. It ensures the sound application of contracting principles for council's procurement. The detailed review reflected both internal audit findings incorporating more internal controls as well as ensuring efficient business process and that also includes the merging of the financial capacity policy, so that is why you have a rescinding of one of the policies in the agenda. Last but not least is the financial hardship this is a new policy, Councillors. Under the Local Government Act, ratepayers are required to pay interest on overdue rates and payable charges. As we know, Council already has proactive measures in place to assist with payment arrangements where ratepayers are able to pay by the due date of their rates. But Council does recognise there are exceptional circumstances where people may not be able to pay during the due date. This policy provides Council with the ability to provide concessions on that interest charge for those that do undertake payment they meet the eligibility criteria for up to two years. Thank you, Councillors.

Thank you Councillors. In accordance with section 205 of the Local Government Regulation 2012, councils are required to present a statement of estimated financial position as part of annual budget adoption process. The statement of estimated financial position provides an estimate of council's position for the 23/24 financial year. The position presented in the document is consistent with the financial position adopted at budget year two in January 2024 and shows the surplus position.

Frank Wilkie12:09

Okay, we'll any questions for Pauline? Move it for the motion please. Moved by Councillor Phillips, seconded please by Councillor Wegener. Anybody wish to speak to the motion? Put the motion to the vote, all in favour? That's unanimous. Before we get to item 2.4 which is the adoption of the /25 budget, I would like to move that the operation of the Standing Orders or any relevant provision thereof be suspended to allow Council to receive budget speeches from Councillors. Do I have a seconder please? Seconded by Councillor Stockwell. All in favour? That's carried. I'll go first if I may. This responsible and compassionate budget, the first for this new Council, consolidates the shire's sustainable financial foundation after record high cost increases in recent years and enables Council to provide the services our community expects needs as committed to in the Corporate Plan, while acknowledging cost of living pressures many face. With many key transformational projects underway, such as the Destination Management Plan, Placemaking Program and Waste Strategy, this budget aims to finish the significant work already started. Council, like all businesses and households, is under pressure from rising costs to maintain the shire's assets and run the facilities and services our community expects. In particular, the cost of asphalt, concrete and other construction materials continue to rise at a rate beyond household CPI. This budget has been set with the prime goal of accommodating these escalating cost pressures while maintaining levels of service for the community and being mindful of resident households' costs of living. Is one financial sustainability lies at the heart of this budget and any council's capacity to deliver the services their communities need and expect. The sobering context is that Noosa will be only one of 20 councils out of 77 in Queensland will be returning a surplus. Despite the high cost increases, the rate rise overall for the majority of residential properties owner occupied has been kept to the same as last year at 5.5% which equates to an increase of $94 a year or $1.82 per week. To help achieve that, Councillors have placed a freeze on all levies except for the Bushfire Resilience and Response Levy which is required to ensure critical investment in managing Council reserves and fire trails ahead of the dry season. Waste charges have been increased to absorb the increasing state government imposed waste levy and to support the cost of managing our resource recovery facilities. The $184 million budget incorporating operating expenditure of $139 million and a capital works program of $45 million will achieve a small surplus to maintain the community's equity. And stay in the black. In support of noosa's Housing Strategy and to help encourage smaller secondary dwellings that provide essential housing for dependents, family workers and those in need, Council has cut rates for granny flats and secondary dwellings. Councillors have also introduced a rates hardship policy removing interest charges on overdue rates to ensure those facing difficult financial or personal circumstances are not burdened with interest if they are unable to afford to pay their rates upfront. Noosa Shire continues to be the only county Council regionally to provide a rates early payment discount which is set at 5%. Rates rebate and discounts for pensioners and eligible community groups continue to apply. Through the introduction of short-term accommodation transitory rating categories and Queensland's first STA local law, Noosa Council led the way across the industry in taking measures to manage the impact of short stays on our community. Most recently we have seen many councils including Brisbane follow. The 24/25 budget sees a continued focus and commitment to managing STA's impact on community and amenity, excluding strata title and home hosted. General rates for single STA dwellings have increased further to reflect their commercial use. In addition, STA annual licence fees have been set to ensure the rest of the shire's ratepayers are not subsidising the costs of administering the Short Stay Local Law. With the adoption of the Waste Strategy significant investment in an expanded landfill and further investment in the Eumundi Road resource recovery centre upgrade works over the coming year will ensure we manage our waste in a safe and responsible manner. The State government's introduction of a higher state waste levy imposed on domestic as well as commercial properties has seen increased costs passed on to bin collection charges and to waste facility customers. The operational plan outlines the significant number of initiatives underway. These include finalising the Dog Beach works for the Noosa Spit shoreline erosion management plan and to protect the Noosa Spit. Implement the encroachments policy and operational procedure. Continue to implement and further review the short stay letting local manage the impacts of short-term letting including increased resources towards compliance. Continue to implement key actions of the Noosa Housing Strategy. Continuation of the living well low-cost community exercise programs. Finalising the Noosa Botanic Gardens master plan. Developing the Noosa parking management plan which will inform a future paid parking trial. Complete the Regional Art Gallery Feasibility Project and there's investment in technology to support greater efficiency of delivering services to the community on a daily basis as well as dealing with the ever-increasing cyber security threat. Council continues to demonstrate prudent fiscal management with the 24/25 budget, not only by ensuring a marginal surplus, but also by meeting all its statutory financial sustainability indicators as set out by the State government. This year's $45 million capital works program includes: $250,000 to improve local beach access points, $62,000 for beach shower renewals, $500,000 to upgrade to sports field lighting and Sel Bonnell Oval and Cooroy Sports Complex, $100,000 to renew Noosaville's pirate playground, $520,000 towards the ongoing renewal of the shire's bus stops to improve accessibility, $1.53 million for the heavy road patching program, $100,000 plus to expand the Wallace Park precinct CCTV system, $820,000 for trail 4 and Woodland Trail 3 trail renewal, and $1.6 million for upgrading the Cooroy Gymnastics and Multi-Use Centre. In addition to this, there's over $100 million in disaster recovery capital works from the March 2022 weather event To be completed. Compiling this budget has been a collaborative and rigorous process in a compressed time frame involving diligence, patience and discipline by Councillor colleagues, Councillor Stockwell, Lorentson, Wegener, Councillors Finzel, Wilson and Phillips. Executive directors and managers, plus long hours from highly skilled and financially astute staff, especially corporate services Director Trent Grauf and financial services manager Pauline Coles. Each and everyone here deserves thanks and credit for their input on this compassionate and responsible budget. Which has caring for the needs of our community at its heart and I commend it to you. Anybody else wish to speak about the budget? I'll follow up.

Frank Wilkie42:59

Well said Councillor Finzel, thank you. No other speeches? There being no other speeches I ask that the standing, I move that the Standing Orders be resumed. May I have a please? Seconder Councillor Lorentson quick remark. All in favour? That's carried unanimously. So we're now at item 2.4 of the budget agenda which is 24-25 budget adoption. So we have a range of motions and the first motion one is that pursuant to section 104 of the Local Government Act, section 170 of the local regulation, the budget for the financial year ending 30 June 2025, incorporating statements of income and expenditure, financial position, cash flow, changes in equity, long-term financial forecasts, Revenue Statement and revenue policy, and the 24/25 capital program is contained in the Noosa Council budget document provided as attachment one to the Special Meeting be adopted. May I have a mover for that please? Moved by Councillor Wilson, seconded by Councillor Finzel. Any discussion? All in favour? Carried unanimously. Motion to that pursuant to section 94 of the Local Government Act and section 80 of the Local Government Regulation, Council resolves to levy the differential general rates for the 24/25 financial year as set out in the Revenue Statement contained in the budget documents provided as attachment 1. May we have a mover for that please. Moved by Councillor Lorentson, seconded by Councillor Wilson. All in favour? That's carried unanimously. Motion 3. Is that pursuant to section 81 of the Local Government Regulation 2012, Council resolves that the rating categories of rateable land in its local government area and a description of each of the rating categories for 24/25 be as follows. May we have a mover for that please. Moved by Councillor Phillips, seconded by Councillor Wegener. All in favour? Carried. That's all in favour? That's carried. Motion 4. Motion 5. That's a long resolution reform. Motion 4. Pursuant to section 94 of the Local Government Act and section 94 of the Local Government Regulation, Council resolves to levy the special charges for the 24/25 year as set out in the Revenue Statement contained in the Noosa Council budget documents as attachment 1. The special charge is set out in the Revenue Statement pertaining to the Noosa Waters Lock and Weir Maintenance Levy, the Noosa Waters canal maintenance levy, Noosa Junction Levy, Hastings Street precinct levy, Noosa Main Beach Levy, Hastings Street community safety program charge and the Noosa Junction streetscape levy. May I have a mover for that please? Councillor Lorentson. Thank you Councillor. Seconded by Councillor Stockwell. Discussion? All in favour? Carried unanimously. Motion 5 is that pursuant to section 94 of the Local Government Regulation, Council resolves to adopt the overall plans, annual implementation and benefited area maps specified in the Revenue Statement contained in the budget document and providers attachment 1. For the special charges it resolves to levy under resolution 4. We have a mover please? Councillor Finzel. Seconder? Councillor Phillips. Any discussion? All in favour? That's unanimous, thank you. Motion 6, pursuant to section 94 of the Local Government Act and section 99 of the Local Government Regulation, Council resolves to levy the utility charges for the 24/25 financial year set out in the Revenue Statement contained in the Noosa Council 24/25 budget provided attachment one to the Special Meeting report dated 28 June 24. We have a mover, Councillor Wegener, a seconder, Councillor Lorentson. Any discussion? All in favour? That's carried unanimously. Motion 7 is that pursuant to section 94 Local Government Act and section 103 of the Local Government Regulation, Council resolves to levy the separate rates and charges for the 24-25 financial year set out in the Revenue Statement contained in the budget document provided as attachment 1. The separate rates and charges set out in the Revenue Statement are the Environment Levy, Sustainable Transport Levy, Heritage Levy and the bushfire. Resilience and response levy. May we have a mover for that plea? Councillor Wilson, seconded by Councillor Finzel. Any discussion? All in favour? It's carried. Anonymously. Motion 8. Pursuant to section 107 of the Local Government Regulation, section 114 of the Fire and Emergency Services Act 1990, Council resolves that the rates and utility charges and the Queensland government's emergency management levy for the year ending 30 June 25 will be levied six-monthly as set out in the Revenue Statement contained in the budget documents as attachment the Special Meeting report dated 28 June 24. May we have a mover for that please? Moved Councillor Phillips, seconded Councillor Finzel. Any discussion? All in favour? That's carried unanimously. Motion 9 is that pursuant to section 122 of the Local Government Regulation, Council resolves to grant concessions to ratepayers as set out in the Revenue Statement contained in the budget documents and council's general rate donations policy. Move it please, Councillor Wilson. Seconded, Councillor Wegener. Discussion? All in favour? It's carried unanimously. Motion 10, pursuant to section 118 of the local of the Local Government Regulation, Council resolves that all rates and charges must be paid within 30 days after the date of issue of the rates notice. May I have a mover of that please? Councillor Stockwell. Discussion? Carried. All in favour? Carried. Motion 11 that pursuant to section 133 of the Local Government Regulation, Council resolves that all overdue rates and charges bear interest as set out in the Revenue Statement contained in the Noosa Council 24/25 budget document provided as attachment 1 to the Special Meeting report dated 24 and where applicable to grant concessions on interest to eligible ratepayers as set out in the council's rates and charges hardship policy. Financial hardship policy to have a movement for that's Councillor Wilson, seconded by Councillor Jess Phillips. Any discussion? All in favour? That's carried unanimously. Motion 12. Pursuant to section 257 of the Local Government Act, Council delegates to the Chief Executive Officer its powers under section 81 of the Local Government Regulation Council. The differential rating category into which each parcel of rateable land in the council's local government area is included by using relevant information from the council's land record and any other information which identifies the use of rateable land. May I have a mover of that please? Councillor Wegener. Do we have a seconder please? Councillor Jess Phillips, any speeches? All in favour? That's carried unanimously. Motion 13. That it be recorded that in each case where a preceding motion refers to a matter set out in a Revenue Statement contained in the Noosa Council 2014/25 budget document provided as attached provided as attachment one to the Special Meeting report dated 28th of June '24, that matter is incorporated by reference into and forms part of the terms and content of the motion, and will be so incorporated and form part of the terms and content of council's resolution to adopt the motion. Move Councillors to stop. I'm not moving it. You got a question?

You have quite a few motions in front of you here. I think this is an effort for Mr Mayor to take a breath. Between 15 minutes um given the complexity of the number of motions, each referring back to the Revenue Statement and the budget document contained within, this is a closing resolution to ensure that any subsequent resolutions where you have made an adoption, whether it's in regards to the timing of when you're issuing the levies or in regards to the application of interest, to ensure that reference is back to the first motion in regards to adopting the budget. They're considered holistically and not individually. Thank you.