Housing Monitoring Report

Brian Stockwell83:05

Okay anyone else I'll therefore put the procedural motion that the matter lay on the table all those in favour I'm happy yes okay that's unanimous okay we then move on to the next agenda item and that is a consideration of recommendations from the General Committee on the 11th of August you very much.1.1 is the capital program 2025-26 delivery status report. 11.1.2 is the housing monitoring report. 11.1.3 is Noosa Heads alliance park. Yes, Mr Chair. Yes, Councillor Wilkie.

Thank you and through the Chair I will take the report as read. This report presents budget review 1 for the 2026/27 review has been prepared in accordance with the underlying legislative requirements which requires Council to undertake regular reviews of its adopted budget to ensure it remains reflective of Council's projected financial position as at the 30th June of each year. The first budget review of financial each one year is a routine budget management process. BR1 primarily reflects updated delivery schedules, grant timing, and carry forward adjustments identified after the adoption of the 2026-27 budget on 23rd of June. Importantly, this review should not be interpreted as an indication that the original budget was inaccurate or unrealistic, rather that it reflects the normal progression of operating and capital projects and programs across financial years. The proposed BR1 position does not represent a material change to Council's adopted financial settings, strategic priorities, service levels, or long-term financial direction. I would like to draw your attention to a number of matters detailed in the report. In regards to operating budget adjustments budget review 1 proposes no change to Council's operating result. This report identifies proposed increases to employee benefits of $81,000 and materials and services of $583,000, mainly associated with previously recognised grants. These increases are offset by additional interest revenue of $300,000, waste collection charges of $250,000 and a housing support program grant of $113,000. The key point is that these movements are offsetting in nature and do not change Council's overall operating position. Full details of these operating adjustments are provided as attachment 1 and schedule 6. Capital budget adjustments and carryovers. The revised capital works program increases from $84.3 million to $99.7 million. This includes an increase of $11.9 million in other capital works and $3.4 million in waste management, while recovery works remain unchanged to $29.2 million. The increase on the revised capital budget largely reflects projects that were approved in the previous budget but remained underway as at the 30th of June. As such, the movement primarily relayed to the timing of expenditure rather than new expenditure commitments. This is an important distinction. BR1 is not introducing a significant new capital program. It is largely aligning with approved budgets with revised delivery timelines so that projects already underway can continue to their completions. The majority of capital adjustments relate to previously adopted projects carried forward from the 25-26 financial year with only limited emergent items proposed through BR1. Funding for the revised capital program comprises of grant funding of $47.8 million, loans of $13.2 million, and internal reserves of $9.9 million, with the balance coming from cash reserves. Full details of the capital works program are provided as schedule 7 and 8 of attachment 1. Consequently, as part of BR1, BL1, our forecasted loan funds increased from $10.8 million to $13.2 million. This relates to waste management loans of $11.2 million and Lake Macdonald residential subdivision of as a result of this, Council is required to adopt a revised debt policy which reflects the revised loan totals and the forecast across the 10-year forecast period. The revised debt policies is included as attachment to the report. In regards to Council's financial sustainability, the proposed BI1 position does not indicate any significant financial concerns arising from either the operating or capital budget adjustments. The operating amendments are offsetting and maintain Council's operating position. Similarly, the increased capital program primarily relates to the carry forward of approved projects. Because the majority of amendments relate to the timing adjustments rather than new commitments, the proposed amendments present limited additional financial risk to Council. Key financial sustainability indicators remain within their adopted benchmark ranges, with no main changes to Council's long-term the financial position. Report the notes the assets sustainability ratio falls below the target level in some forecasted years due to the current composition of the capital works program. However, it should be noted across the 10-year forecast period, the average ratio is 10.6, which is in excess of the targeted benchmark when viewed in that regard. Council's however, operating cash balance has also been revised to $132.6 million following the close of the 25-26 financial year. This has improved Council's liquidity ratios and net liability ratios. Council's leverage ratio has also improved in BR1 following the decision to not draw down $3.1 million as at the 30th of June related to capital projects in the previous financial year. Lastly, in regards to Fees and Charges, BR1 includes a small number of amendments to Council's adopted 26/27 fee schedule. These amendments are predominantly administrative in nature and intended to ensure the schedule remains accurate, reflects operational requirements, and addresses matters identified following the adoption of the budget. The report identifies key changes including temporary revision to selected digital hub management fees pending a broader review of charges, a revised per kilometre charge for Noosa Seniors, an introduction a waste, the introduction of a waste solar panel disposal fee, corrections to impound animal release fees and noting the GST treatment related to certain cemetery related fees. These amendments have no impact Council's overall operating position or revenue base. In closing, BR1 represents a routine and prudent budget management process. There are no significant adjustments as a result of the amendments proposed today. The majority of the adjustments reflect timing, carry forward and re-profiling of Council's current service delivery and capital works program. Effective budget monitoring and periodic reviews remains an important part of Council's financial governance framework and supports continued alignment between the adopted budget, current project delivery schedules, funding availability and approved operational commitments. Thank you and we'll be happy to take questions.