General Committee Meeting - April 2023 Transcript

7.1 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - CENTRALISED LEGAL SERVICES TRIAL ( REFERRED FROM S&O 11 APRIL 23 ) ¶

▶ 01:38:40· Carried unanimously 7-0 from council's minutes

01:39:00 Councillor Lorentson, seconded by Councillor Durrissedy. To the motion. Councillor Lorentson: No, I'm very excited to see this report in front of us. Can't really say much about it. But look forward to the oncoming report, coming back to Council. Speaker 2: Thank you. Anybody else wish to speak to the motion? Put the motion to those in favour. That's carried. Next item, tourist accommodation zone. That's moved by Councillor Lorentson, seconded by Councillor Finzel.

7.2 TOURIST ACCOMMODATION ZONE REVIEW -PROPOSED AMENDMENT 2A TO NOOSA PLAN 2020 ¶

▶ 01:39:47· Carried unanimously 7-0 from council's minutes

01:40:00 Any councillors wish to speak to the motion? I'll put the motion to those in favour. That's carried unanimously. Speaker 6: Yeah, Amelia. Councillor Jurisevic: Okay. Speaker 2: Now we go back to the agenda and we're now up to items referred from the committee. Councillor, do you have to push on? Yes. Yes. So the next item is the MCU 22 slash 0209 application for material change of use for short-term accommodation at 515 Cooroy, Dusseldow, Tim Bewer, referred from the Planning and Environment Committee meeting. Kim. Can I ask Patrick to come up? Oh, Patrick. Staff are coming down to see you. Yeah. Yes.

5.1 MCU22/0209 APPLICATION FOR MATERIAL CHANGE OF USE FOR SHORT TERM ACCOMMODATION AT 515 COOROY NOOSA ROAD, TINBEERWAH ( REFERRED FROM P&E 11 APRIL 2023 ) ¶

▶ 01:40:24· Carried 6-1 · 1 division from council's minutes

01:41:00 Speaker 1: Okay, from there we go. Speaker 6: Oh, that'll do. Thank you. Speaker 7: Thank you. Speaker 6: Thanks, Jim. Thank you. Speaker 1: Mark, what's up? Speaker 2: Kim, are we able to ask you some general questions in the meantime? Yes, yes, yes. I think we're good. So, Kim, the application for us is consistent with the current plan scheme? Speaker 6: Yes, that's correct. That's what we'll do. Speaker 2: And its current use is as a, former use was as a restaurant. Speaker 6: Yes. Speaker 2: It has plenty of setbacks from adjacent problems. Speaker 7: Yes. Speaker 2: There was some concern around last week about the dam in the backyard, in the back paddock.

01:42:00 Does that need to be fenced off to make it a safe SGA? Speaker 7: No, there isn't. There isn't requirements for the dam to be fenced. It's not treated the same as a swimming pool, even though it is a body of water under the legislation, the building act. It's not required to be fenced. So, no, it's not a legal requirement. It's obviously up to Council whether that's something they want to be considered. Speaker 2: And it is in the rural residential zone? Yes. Rural? Speaker 7: Rural zone. The rural zone. Speaker 2: And under the current planning scheme, SGA's are consistent with using the rural zone? Yes. And they have no conflict with higher orders, elements of the Lucifer Planning Scheme, in terms of ensuring that it's not in conflict with the planning process? That's right. Speaker 7: At the time of the drafting of the Noosa Plan, short-term accommodation was anticipated as a consistent use in the rural zone. Speaker 2: Because there were some recommendations from staff about approvals for SGA's in the medium

01:43:00 and high density zone that were also recommended for refusal, even though it was a consistent use because of conflict with higher orders of the planning scheme. That situation doesn't apply in this instance. That's correct. Joe? Councillor Jurisevic: I'll just clarify a comment made there by Council Wilkie. I believe, I understand that the property has had a number of commercial activities there in the past, not just a restaurant. Sure. Speaker 2: Yes. Thank you. Hello Patrick. Could you give us a bit of an overview? I can. Sorry. Things move pretty quick. Okay. Speaker 8: So the site of 515 Croy Noosa Road is on a rural zone property. The site is 2.93 hectares in area. Because it doesn't meet the 4 hectare size requirement, it becomes an impact-assessable application as opposed to being code-assessable. There's also a provision in the visitor accommodation code regarding it's an acceptable outcome around the lot size being 4 hectares.

01:44:00 It obviously doesn't meet that. The corresponding performance outcome is around the character of the area and the amenity of the area. We consider that this proposal would not detrimentally impact upon those. It's noted that the nearest property is 160 metres away on the other side of Croy Noosa Road. So the eastern side of the site is a council reserve. So there's a significant buffer between the site and the adjoining dwellings to the east. And again, it's recommended for approval, subject to conditions. Five bedrooms, limited to eight people. And with a 9pm curfew on outside areas being used. Speaker 2: Questions, councillors? Anyone care to remove the recommendation? Speaker 1: I'll move it. Speaker 2: Moved by Councillor Gerritsen. Seconded by Councillor Finzel. Jody was to speak to the motion. Councillor Jurisevic: For all the reasons outlined in the report.

01:45:00 Acknowledging that it's also on a very busy major thoroughfare into and out of the region. I'm happy to support staff recommendations. Thank you. Councillor Wegener: I have a very hard time getting past the assessment tables. Okay. So the first thing you look at when looking at these things in an application is you go to the assessment tables. And the assessment table says straight away, located on a site with an area of at least four hectares. And so it says if there's a problem from the assessment tables, you look at the rural residential code and the visitor accommodation code and the works codes. And then I went back to look at that. Patrick, by the way, it's a great report. And in fact, it is very, very helpful for me in learning more about the planning scheme. But it says where there's inconsistency between provisions of the planning scheme, the following rules apply.

01:46:00 Do you agree with that? The relevant codes are specified in Schedule 6 and 10 of the regulation. So then we go to the rural zone code, which is 6, which is part of 6. And this is where we look at what's acceptable on a higher level. And it says that you could use a visitor accommodation when it complements rural uses and promotes sustainable use of rural land. Houses or outbuildings may be available for short-term guests where there is no resultant change to the rural amenity. Nature-based tourism is exemplary, is OK. Home-based businesses, which added the economic sustainability of the hinterland.

01:47:00 Are established where nature, scale, and intensity of the activity is compatible with the character and amenity of the surrounding locality. And again, later down, it says a PO does not detract from rural amenity and adjoining properties. And looking at what we've learned from the planning scheme, we know that short-term accommodation affects amenity. That's the one thing we have learned in our experiences. We've learned that short-term accommodation affects amenity. We've learned that learning is not around when the planning scheme was actually written. And so the question is do you look at the intent of the planning scheme when it was written? Or can you look at it with learnings that have become very blatantly obvious to us now? And to me, it just seems very, very clear that if you're circling on amenity, and the rule is that it's a code.

01:48:00 It's not just because you've used a policy, it's because you've used the law, it's not And the other code, the assessment tables, if they all say four hectares, that's it. Well, and then if the other axis is amenity, well, I don't believe that the amenity will not be impacted. And I think that this would have been very, very helpful under, you know, applicable under the nature code, underneath the nature-based tourism code. That would be spectacular, because we received a very nice letter from the owner, and I thought, gosh, you know, it pains me, because he wants to do a nature-based bicycle, and use this for bicyclers, and a place for bicyclers to stay as they go through the trails, which is fantastic, and that is exactly what we would like. But that could be conditioned if you applied for a nature-based tourism. Business, rather than the very wide-open STA in the hinterland,

01:49:00 turning basically a rural property into a potential drag-on amenity, or affect the amenity of the area. So I can't get past, I just can't, it says four hectares minimum, I can't get past that. So I won't be supporting this. Speaker 2: Thank you, Councillor Wiggner. Any other questions? Councillor Jurisevic: It raises a question for me, and thank you, Councillor Wiggner. Given that it has, that property has had commercial use in the past, and something like nature-based tourism is a commercial operation, would they have pre-existing use rights of commercial activities in the past to continue in that vein? Speaker 8: They would have existing use rights if they hadn't abandoned the use, but it would also be existing use rights for the activity that was being undertaken. So just by virtue of the fact that it's a commercial activity, doesn't mean that you can do any commercial activity. It would have to be the same type of... It would have to be the same type of activity.

01:50:00 That's right. Councillor Jurisevic: Would, on that property, seeing as it's been some time since commercial activities have been undertaken, has that commercial use been abandoned? Speaker 8: It's my understanding that yes, it has. Thank you. Thank you, I was just trying to clarify that. Thank you. Speaker 2: Councillor Stockwell. Deputy Mayor Stockwell: Just a question of clarification. So I think Councillor Wegener has suggested it has to be four hectares and that's it. My understanding, and please correct me if I'm wrong, is it true that four hectares is an acceptable solution? So that's just one example of how to achieve performance outcomes, is that right? Not the only example? Speaker 8: That's correct, Councillor. Councillor Lorentson: Can I ask a question? Patrick, the condition of the approval is that the total number of... Yes, accommodated at any one time must not exceed eight. One of the submitters noted that it was advertised for 15 people in six bedrooms. My question is how do we manage that in fact only eight people occupy the property

01:51:00 and what is the penalty for non-compliance? Speaker 8: We would need to monitor the property and that would include if we were to issue an approval on this site to look at it, the advertising platform, to ensure that it wasn't being advertised for more than the eight people. If it was being utilised or advertised for more than eight people, then we would seek to have a conversation with the owner at first point to bring them into compliance. A local law approval would also be required. That would also identify the number of people that the site would be limited to. There's an opportunity to seek to amend, suspend or cancel a local law approval. So there's that avenue under the local law approval but also under the planning approval there would be a mechanism to take enforcement proceedings should that be required. Councillor Lorentson: And in terms of submitters, so it went to public notifications, impact accessible because it didn't hit the four hectares and over, how many submissions were there?

01:52:00 There was one submission, properly made submission. One properly made submission. Informal submissions or not? Not properly made submissions, how many were there? Speaker 8: I believe it was only the one, but I could clarify that, I would need to clarify that for you. Thank you. Councillor Jurisevic: Just to clarify, sorry, just to clarify, that was one of the neighbours of the? Speaker 8: It wasn't a directly abutting neighbour, it was further east, so you have the reserve and it was beyond that. All right, thank you. Speaker 2: Okay, council has received permission to close. Councillor Jurisevic: No, I think it's all been said. Speaker 2: But the motion goes in favour. That's councillor Turisvig, Finzel, Stewart, Stockwell, Lawrence and Wilkie against. Councillor Wegener and the matter is carried.

01:53:00 Thank you Patrick. Speaker 6: Thanks Patrick. Thanks Patrick. Thanks Kim. Thank you. Speaker 2: We now come to the next item, which is another item referred from the committee, which is the tourism business. This is a funding agreement. Ms Stewart. Speaker 6: I have confidence in this. Thank you councillor Wegener. In accordance with chapter 5B of the Local Government Act 2009, I, councillor Stewart, informed the meeting, I have declared a conflict of interest to this matter as Linda Creedy, a director of tourism, is a friend. As a result of my conflict of interest, I will now leave the meeting room while this matter is considered an agreed on. Thank you. Thank you Ms Stewart. I won't, I'm leaving the meeting of the public. I thank you very much Ms Stewart. Speaker 2: Thank you. I'm sorry. Thank you.

5.2 TOURISM NOOSA FUNDING AGREEMENT ( REFERRED FROM S&O 11 APRIL 2023 ) ¶

▶ 01:53:03· Carried unanimously 5-0 · 1 division from council's minutes

01:54:00 Speaker 6: Sorry I've taken myself. Thank you. OK. Speaker 6: Thank you. Speaker 1: Okay. Speaker 6: Thank you. I'm sorry, I've taken myself. I'm sorry. Excuse me. Councillor Jurisevic: Thank you. Speaker 6: OK. Yes, I, Councillor Finzel, inform the meeting that I have a declarable conflict of interest in this matter. Hang on, that was... As I have. Yeah, no, that's the wrong... Yeah. Speaker 2: Just talk about yourselves. Councillor Jurisevic: You know, you know. Speaker 2: Just a space or something. One, two, three. Here's your top. We've got water for you to sit in. I'm going to go to the toilet. Speaker 6: Good job. I'm going to sit in the toilet.

01:55:00 Thank you, that should be on my previous. Thanks, Mr. Chair. I, Councillor Finzel, inform the meeting that I have a declarable conflict of interest in this matter, as Liam McCready, the Director of Tourism Noosa, was involved with my 2020 election campaign with Future Noosa, which is no longer an entity.

01:56:00 As a result of my conflict of interest, I will now leave the meeting room while the matter is considered and voted on. Speaker 2: Thank you, Councillor Finzel. Deputy Mayor Stockwell: I, too, wish to inform the meeting that I have a declarable conflict of interest in this matter, as on 24 February 2020, I was sort of reviewed by the Independent Council Election Observer as to the public claims of the Future Noosa team, of which Liam McCready was publicly identified as a campaign manager. Liam McCready is a Director of Tourism Noosa. Although I have a declarable conflict of interest, I do not believe a reasonable person could have a perception of bias, because the ICAO... ...review was an advisory service, not a statutory process, and my queries at the time were in the public interest, and neither I nor Ms. McCready stood to personally gain or lose from that advice. Therefore, I will choose to remain in the meeting room, however I will respect the decision of the meeting on whether I can remain and participate in the decision.

01:57:00 Councillor Jurisevic: I move that Council note the declarable conflict of interest by Councillor Stockwell and determine it is in the public interest that Councillor Stockwell participates and votes on this matter, because Council believes... ...that a reasonable person could not have a perception of bias, because the ICAO review was an advisory service, not a statutory service, and Councillor Stockwell's queries at the time were in the public interest, and neither he nor Ms. McCready stood to personally gain or lose from the advice, and therefore a reasonable person would trust that the final decision is made in the public interest. Speaker 2: Do we have a seconder for that, please? I bid you second. Seconded by Councillor Lamson. Councillor Jurisevic: Do we have a seconder for that, please? Speaker 2: We've come to substance of the report. Hello Kim, could you, for the benefit of those who may be listening, could you talk us through the report we have before us today?

01:58:00 Speaker 7: Yes, just noting this is a report by our CEO, and in his absence I'm stepping in. So the report to Council today is to recommend a funding and performance deed with Tourism Noosa. Our current funding arrangements with Tourism Noosa are due to expire mid this year, so we've been for the last number of months in negotiations with Tourism Noosa about the next funding arrangement. The current funding deed is, the current funding arrangement is done by an MOU. What's on the table today for Council consideration is a change in the approach from an MOU to a funding and performance deed. It's been through a legal review and been negotiated with Tourism Noosa over the last couple of months. The deed outlines very clearly obligations and performance measures for Tourism Noosa,

01:59:00 as Noosa Council is the primary funder of Tourism Noosa. There are very specific requirements for Tourism Noosa and both parties in this arrangement to meet over the proposed timeframe. The recommendation is for a 2 plus 2 arrangement, but there are some milestones and gateways in that that need to be met before Council would commit to annual funding. The agreement very clearly recognises that Council is in the process of developing a destination management plan, and that that destination management plan once complete will inform the future direction and our partnership with our main tourism body, Tourism Noosa, and that that would inform future negotiations and funding arrangements.

02:00:00 Speaker 2: Questions? Councillor Wegener: In the deed, 4.2, strategic operations plan, by December 31st, 2023, Tourism Noosa will implement a four year strategic plan, which incorporates the priorities and obligations and performance measures set out. At schedule 1 of the deeds, considering that there's a destination management plan, will there be time for them to actually fulfil this requirement while waiting for a destination management plan? Speaker 7: So the 4.2 specifies that Tourism Noosa need to have their strategic plan in place by that time, that incorporates the performance outcomes and objectives in Schedule 1. So they've got all the information they need to be able to do that,

02:01:00 and my understanding is they've already started their strategic planning process well into it. You will note that in the schedule though, at Priority 1, it then subsequently says that Council is preparing a destination management plan, and at the point that that's complete, that we would get back around the table and consider what that means, and if that means any change, or any further incorporation into Tourism Noosa's strategic plan or direction, that that would also happen at that time. Speaker 2: Could you give us some idea of the timing for the destination management plan, please? Speaker 7: We are in the process of preparing a discussion paper at the moment, that will come to Council and to the project control group in the next month. That discussion paper is on the issues around the destination management plan. It will go out for broad community consultation. Following that process, all of that information will then inform the development of the destination management plan.

02:02:00 Our hope is that we have the destination management plan complete by later this year, Councillor Wilkie. Speaker 2: So that's when the talks with Tourism Noosa will take place? That's right. In order to give Tourism Noosa some certainty, how long is this agreement? It's 2 plus 2? That's right. So regardless of what comes out of the destination management plan, this agreement is open for 2 years? That's right. There's no capacity to change anything before the end of 2 years? Speaker 7: Well, there is capacity to change direction and arrangements, but this does provide funding for 2 years. That's right. There are some clauses in it that relate to where the funding may change, but that's based on default and things like that. Speaker 2: Okay. Well, for the sake of getting things moving, I'll move the motion. Councillor Lorentson: I'll second the motion. Speaker 2: Seconded by Councillor Lorentson.

02:03:00 Seconded by Councillor Lorentson. I support this recommendation. This will give Tourism Noosa some funding certainty for at least 2 years. I support this recommendation. They've performed their role very, very well in the last 20 years in marketing Noosa and positioning it as a destination choice for the high-yield traveller. The strategy has always been to target interstate and overseas tourists who tend to spend more and don't drive. The destination management plan is the opportunity to fine-tune the role of Tourism Noosa and redefine it. But Tourism Noosa still have a brief to execute over the next two years and certainly in the short term to keep promoting Noosa as we recover from COVID.

02:04:00 Let the world know that the borders are open and Noosa is here for them to work on. Thank you. I am informed by the case study of Colorado. For those who may be questioning whether Tourism Noosa ought to continue to be funded because Noosa seems to be going so well. It's a story of complacency. Colorado decided at the height of its success as a destination to discontinue funding its tourism marketing body. And within three years it was lost. 30% of market share worth $1.3 billion. They decided to re-instigate funding again in the year 2000. But it wasn't until 2015 that they recovered their market share. So it's a lesson of yes, Noosa, the visited dependent sector of the economy seems to be doing well.

02:05:00 Better than pre-COVID levels. It's not an invitation to be complacent at this time. The community will decide the sort of destination they would like Noosa to become in the future, what sort of visitor experience we'd like to offer, what the experience of the residents could be, and Tourism Noosa. Tourism Noosa will have a role to play in that. But in the meantime, this gives Tourism Noosa funding certainty for at least another two years. They are professional partners. And we owe them. We owe them that. So I support this recommendation. Councillor Wegener: Tom. Brand management. Tourism Noosa, rather than number one, is brand management of their, of what they do. The focus. And they've done an incredibly good job with that.

02:06:00 And now we're talking destination management as the superseding plan. But they've done an incredibly good job with that. Speaker 7: The issue of brand NUSA is absolutely central to destination management and what the community and all stakeholders want the destination to continue to be, to be in the future, and how that then informs the brand. So yes, I do think it's quite central. Councillor? Councillor Wegener: Wagner. Speaker 7: Wagner? I was just going to say Councillor. Councillor Tom, Councillor Wegener. Councillor Wegener: Yes, I'll speak to it then. Brand management, I think, is something that Tourism Visa has done extremely well, and for all the hype that's come about, and tourism visa being too good at bringing visitors in, that's just visitors, and I think a much bigger part, or equally a big part of Tourism Visa's

02:07:00 remit is brand management. And that brand management is very, very wide in its scope, and as I've spoke about, several businesses that have come here through the digital hub, and you know, surfers coming here, like, who could contribute to that brand, become a part of the tourism thing, but also set down their roots here, and create a NUSA brand that is, not only tourism, but it brings businesses in. Like, as we say, a place that is great to live. That's a place that people want to visit, well, the brand management, I think, is really key in maintaining, in bringing businesses in as well. Just for example, Land and Sea Brewery, they made their NUSA gin, and just by the brand name NUSA gin, all of a sudden, it was, it's been on, what's it, on Branson's airline.

02:08:00 Virgin. Virgin. Yeah. All of a sudden, it goes, it has that straight in the virgin, and all these other businesses that have come, like the surfer named Yon, who came here, who started out as a pastry chef, and now he has a business as a filmer, and ad maker, and all these other people come. I mean, really, people come here for the NUSA brand, and as, the NUSA brand is an incredibly integral part of NUSA, and that's why people come here, and so I see that Tourism NUSA has done extremely well at brand management, and it's something that I feel is different from destination management. It's something, it's a little different, and that's what Tourism NUSA does extremely well, so I'm very, very pleased that Tourism NUSA will be, has the funding for the next two years to continue this brand management. Speaker 2: Excuse me, Kim, the new funding agreement that replaces the old, the former, the current funding agreement, requires a lot more reporting.

02:09:00 Can you just talk us through some of the more robust reporting requirements under the new funding agreement, please? Speaker 7: Yeah. Yeah, definitely, the new funding agreement has a very strong focus on governance and reporting. So, you know, there's a number of documents, plans, strategic plans, and there's a number of strategic plans, events, strategy, marketing plans that the deed captures and requires them to be reported to Council. There's regular reporting, quarterly reporting required under this. Speaker 2: As opposed to the twice yearly reporting under the former funding agreement. Speaker 7: That's right. There's also a clause in here that says at any point if Council would like reporting on any particular aspect that within, I think it's 10 days, can request that information. So, yes, it's definitely an increased level of governance and reporting under this deed, absolutely.

02:10:00 Speaker 2: Can the Council speak to motion? Brian? Deputy Mayor Stockwell: I'm going to move a couple of amendments one at a time so we can deal with the issues individually. And they're suggesting tweaks. So, the first amendment that I'm moving is shown up there on the screen, and it's to amend item B. To read, authorise the Chief Executive Officer to make changes to the funding performance deed prior to executing the deed as required, including, dot, point I, adding a new clause, Schedule 1, 2, point 1D, stating that TN understands and acknowledges that any future funding will be reliant on TN responding to the outcomes of the DMP to Council satisfaction. Speaker 2: Can we have someone second that for the purpose of the debate? Councillor Jurisevic: I can't. I'll second it for the purpose of the debate. Speaker 2: Thank you, Joe. Deputy Mayor Stockwell: As, I think, mentioned by the Director in the introduction, within the agreement at the moment it's implied that that is the case, but it's not explicit in my reading of the

02:11:00 document. And I think it's much better to tie it down to make it really clear. It's purely just tying the loose ends up saying, yep, once we have a DMP, we would like to have this funding to go towards TN helping us achieve the aspirations and the actions within that destination management plan. Speaker 2: Can the Councillor speak to that motion, Joe? Questions? Councillor Jurisevic: I've got a question. And I'm not sure who it would be related to. Possibly Councillor Stockwell. In adding that clause, does that clarify that there are elements of funding to, you know, attain different elements of the agreement with Tourism Noosa? Deputy Mayor Stockwell: No, the agreement doesn't separate the different roles and functions of Tourism Noosa at any point.

02:12:00 So, we do know it mentions things like marketing as a marketing plan and sustainability as another initiative and a whole range of initiatives. But, no, this is purely saying that that clause talks about the destination management plan being a requirement for a destination management plan. So, I don't think there's a need to respond. And this just clarifies that that is sort of key to ongoing funding. Councillor Jurisevic: I guess the second part of that question then goes to you, Kim. With the destination management plan coming in, are there elements within the funding agreement that we could have that this is for marketing, this is for DMP delivery, and different KPIs associated with the ongoing funding within those different streams of – would there be funding streams within the agreement? Speaker 7: What the current deed does is suggest in the same section of the Schedule 1, 2.1c, says that TN will, upon request from Council, agree to a variation of this deed to incorporate

02:13:00 agreed obligations arising in relation to the DMP. Councillor Jurisevic: So, there could be specific funding streams based on different elements of the agreement? Speaker 7: There could be, Council. Councillor Jurisevic: That's what I'm trying to clarify with that. Speaker 7: That's where we end up. Yes. Councillor Jurisevic: Does that – is that precluded by the – Is that precluded by what's being added here, or is that reinforcing it, or re-acknowledging it? Speaker 7: Yes. I don't think that precludes anything. Councillor Jurisevic: Right. Speaker 7: This would be point D to following that. Councillor Jurisevic: Okay. Speaker 7: So, I think it just is a clarifying – Councillor Jurisevic: All right. Thank you. That satisfies my question. Thank you. Councillor Lorentson: I have a question, Kim. This is a legally binding contract, and it's been going to and fro towards the use and use of Council, to and fro our legal – our solicitors. Does inclusion of this clause need to run past our legals? And if so, is there going to be a potential that it may not come back to Council by this

02:14:00 Thursday's ordinary meeting? Speaker 7: I think we could definitely run it by our legals. I think that could be done by Thursday. Councillor Lorentson: So, it is – Speaker 7: They've been very responsive and been able to turn around any changes that we've made very quickly. Councillor Lorentson: In the spirit of collaboration, and given that this is a partnership, can I also request between now and then Thursday that Tourism Noosa have an opportunity to also be consulted on this? Sure. They haven't? Sure. I don't – I'm not sure if they have or haven't, but this has come as a surprise to me. I also would like, again, just for consideration for Thursday, that if this does come up and it's all okay, Tourism Noosa have no problem, our lawyers have no problem, can we change the word Council satisfaction, again, to mutual satisfaction, that there's, again, got to be consideration and respect, and again, in the spirit of collaboration, it should be

02:15:00 mutual satisfaction. That's a question for Councillor Stockwell. Oh, and that's a question for you, if you can give that some thought between now and Thursday. But I would love, I think, as Frank – . Oh, no, no. Okay. I'll stop. Councillor Jurisevic: There should be an apostrophe O in Council. Councillor Lorentson: Yes. Well, I think I will speak to the amendment, and I might actually defer the item 5.2 to the ordinary meeting, dated 20th of April, 2023, to allow consultation with Legal Council and Tourism Noosa on the proposed amendments. Speaker 2: Do we have a seconder to that procedural motion? Deputy Mayor Stockwell: Yes. Just a question. I did circulate another part of the amendment. Was it your intention that that be part of that request? Or – Because it might be better to have it on the table rather than to arrange it on Thursday night. Councillor Lorentson: No, no, no.

02:16:00 Can I go backwards? Speaker 2: You can. This hasn't been seconded. You can withdraw it. Councillor Lorentson: Fantastic. I might withdraw until the second amendment gets discussed. Yeah. I have other questions as well. Yeah. Speaker 2: Sure. So, I'm going to use the circular motion for that amendment? Or – Councillor Lorentson: Look, as it stands, I don't think I have any problems with it. I think my concern is really about getting this across the line this month. I think there's a lot of staff that have been living with uncertainty for some time. And I think it's actually – I don't think – I know it's taking its toll on the organisation. So, you know, if this can get across the line and there's no issues between now and Thursday, I actually can't see any problems with this. I do think that it is explicit in the agreement. Clause 4.3 makes reference to the agreed priorities. Schedule 1. Schedule 1 stipulates very clearly these outcomes. But if it's just to, you know, to have it up front and for purposes of clarity for

02:17:00 community, I have no objection to that. Councillor Jurisevic: Just on a grammatical point, can I just add that Council should have an apostrophe if it's to Council's satisfaction? No objection to making that correction? Speaker 2: And, Kim, my question will be, what should – the wording of that amendment, it doesn't – does it capture the intent of the funding being in the way in relation to TMP? Speaker 7: Yes, I believe that's the intention. Like I said, Clause – Schedule 1, Clause 2.1 very much puts right up front as priority one the destination management plan. It requires that TN acknowledge that Council is developing the TN. The DMP. And that will inform TN's strategy in relation to management of the visitor economy and tourism.

02:18:00 It requires – Speaker 2: Yes, just help me find that – Speaker 7: Page 13 of the deed. Councillor Lorentson: And Page 6 of the deed, Clause 4.3, Frank, references during the term TN will report on expenditure of the funding by TN with reference to the agreed priorities, activities being undertaken and return on investment. Okay, so 4 – Page 6 of the deed, which – Clause 4.3 , and Schedule 1 is on Page 13 and is included as part of the contract. Speaker 2: Page 13. Speaker 7: And then Priority 1 – Priority 1. On that – on Page 13, under Point 2 of the Schedule – Speaker 2: Yes. Speaker 7: Out – Speaker 2: Which will inform TN's strategy in relation to management of the visitor economy and tourism. TN will implement aspects of the DMP, those aspects to be identified by Council from time to time after collaborative consultation

02:19:00 between Council and TN. Maybe we can have this run by the lawyers and TN before now – Yes. And I'm happy to support it. Tom? Tom? Councillor Wegener: You know, I don't know what I'm voting for with this. I have a vague understanding of – Yes. – the destination management plan. But when I think of the things that I think tourism needs to do extremely well, say, the satellite program. What would that fit under the DMP? Councillor Lorentson: Yes. Yes. Councillor Wegener: How do we know? I haven't seen the DMP yet. It's not done. Can we do – can we – can we do things in order? I think one of our problems as of lately, you know, is – I think this goes with our walking and cycling strategy. We said, you know, we have the walking and cycling strategy going one direction, perhaps the DMP going this way.

02:20:00 And it might actually change the, you know, maybe multi-million dollar walking and cycling strategy. And this – I think that we need to get our ducks in a row. And before I tie tourism usage so tightly to the DMP, maybe I can see a draft of it somewhere or – Yeah. I don't know what it is. I don't – and I'm a councillor. And it's not in a form where I could agree to something like this where I don't know what I'm voting for and what I'm tying tourism usage to. And I think tourism usage doesn't know either. I don't see why – why they would be excited about – well, why they would agree to this. I couldn't imagine them agreeing to this. So I – I can't support it. Excuse me. Speaker 2: Can you just go to the outcomes of the DMP? Speaker 7: That's correct, Councillor Wilkie. Speaker 2: So why – what's this for, though?

02:21:00 This is this – It's another way of saying the same thing. I don't think they're telling you in this note. OK. Anyway, thank you, Councillor Wegener. Joe. Councillor Jurisevic: Yeah. Look, I – I know that Councillor Stockwell's intent here is to – is to tighten an element of the DMP to the – to the funding. I'm – I'm a little bit inclined to agree with Councillor Lorentson's approach that maybe we need a second set of eyes over this. There's an element in this with regard to the words that any future funding will be reliant on TN responding. If there are different streams of funding, does that prohibit marketing funding? There are – the implications here with regard to – to – to – to – to – to – to the way it's worded, I think, is deserving of a little bit more consideration as to how that impacts on – on – on different funding elements if there are different funding streams within the arrangement going forward.

02:22:00 Speaker 2: Can't Councillor Stockwell just close? Oh, yeah. Deputy Mayor Stockwell: I – I accept, actually, what Councillor Drews has just said. When I first put this up, it was along the lines of – because the intent is that the CEO can play with the words, not the necessary intent. So – So if – after the next amendment, there is a motion to defer – to allow that sort of thing to happen, I'm quite happy with it. As I said, the – the – the aim is to make something that I think's implied, explicit. That's – that's all. Speaker 2: But – the amendment to vote, those in favour? Councillor Stockwell, Councillor Wilkie, those against? Councillor Drews, and then Lawrence and – and Wagner, the amendments lost. Can I put another one? Speaker 1: Yeah. Deputy Mayor Stockwell: So, this will have to now be clause one for item B, to read, adding to the deed a requirement

02:23:00 that prior to the completion and adoption of the DMP, TN must consider and respect key aspirations and positions of Council articulated in the Corporate Plan and State Development Strategies, Plans, there should be a comma I think there, Strategies, should be a comma after DMP as well, DMP, and Plans as part of the Development to 16 Plan, Marketing Plan and Events Strategy. Speaker 2: I have a question for staff. Yes.

02:24:00 Councillor Jurisevic: Is this not already incorporated in the agreement as it stands? Haven't we aligned the agreement to the elements of Council's operations and that would incorporate the Corporate Plan, Strategic Plan, Marketing Plan, Marketing Events Strategy, particularly the Marketing and Events Strategy? Speaker 7: What is in the document is a principle of collaboration and alignment between both the organisations. So, from that perspective, yes, that does underpin the document. The deed and our partnership. Speaker 8: That's what I would have thought. Speaker 7: Does it specifically do that? No, it doesn't specifically do that. But there's, like I said, there's a lot in this about working closely together, aligning our work, not duplicating, collaborating. So, yes, from that perspective. Is it as specific as this?

02:25:00 No. Ken, can I ask a question? Councillor Lorentson: Sorry, Jo. Councillor Jurisevic: I was still asking questions, if I may. I guess the question is, given that funding is dependent on that alignment, if it wasn't aligned, one would consider that we could have discussions and look at where that alignment doesn't reach and amend any funding arrangements as necessary. Do we need to be as specific as this to relate it to specific elements of the plan, particularly down to strategic plan, making plan, event strategy? Is corporate plan alone sufficient? Is there a risk that if we don't incorporate every element of council alignment that we want within our plans, that we don't cover the elements that we sort of go, well, but we didn't talk about this in that arrangement and that wasn't brought up.

02:26:00 So if we're not being specific to every single element that we want them to adhere to, to tie it all down. That we run the risk of, but you never said that. You didn't adhere us to that policy, you're adhering us to these three elements. Speaker 1: That's always a risk. So if you start itemising, then you run the risk of this. Councillor Jurisevic: That's what I'm potentially seeing here is that we're being specific to certain elements, but not being specific to all elements. And how do we become more specific? I would have said if we just tied to the corporate plan, would that be specific? Because that overarches everything beneath it. Speaker 1: The bottom line is that the officers are comfortable that we've incorporated all of this into the document so far. If there's need for consideration at a mixed level, then that's to be debated. But currently, our position is that we feel that the collaboration is spelled out well enough in the document. Thank you. Councillor Jurisevic: That's what I was trying to allude to.

02:27:00 Speaker 1: Thank you, Mr. Mayor. That's to be debated, but that's our current position. Okay. Fair enough. Councillor Lorentson: Can I just, because I sit on the destination management plan on the PCG group, and again, I get your point, Tom, really clearly, I got more privy to the information, but the destination management plan, the targets and goals of the destination management plan are aligned with council's corporate plan, strategies, local economic plan, social strategy, transport strategy, environment strategy, and the NISA planning scheme. So what's captured here is actually captured in part of the purpose of the destination management plan. So I think we've got the DMP, and again, I'm sort of skimming through the actual legal agreement. Under TN's obligations governance, I reference 4.1.C. TN will review and make appropriate changes to the NISA planning scheme.

02:28:00 It will review and make appropriate changes to its strategy and expenditure upon reasonable request by council. There's enough in the obligations, you know, legally binding obligations that allow council at any point. Oh, sorry. No. So, so, so, so, Kim, as part of their reporting requirements, does council have a lever to change strategy, TN strategy, to align it with our strategy? Speaker 7: Yes, it does. There's a number of clauses in the agreement that allow that. You just cited one. The other is that 4.2. That's around the strategic plan. And the TN will deliver the strategic plan and operational plan. And it's to be agreed to by council. So there is a number of clauses already in the agreement that do allow that.

02:29:00 And it's to be agreed to by council. So there is a number of clauses already in the agreement that do allow that. So that, that collaboration, that feedback and that agreement by council. Fantastic. Councillor Lorentson: And my understanding with the Destination Management Plan, are you in agreeance with that? Is it intended to align, again, with all our strategies, our corporate plan and in particular our Noosa Planning Scheme? Is that, so what, what's requested here? That's captured in the Destination Management Plan, Kim? Speaker 7: It, absolutely. Kim. The intention is that the Destination Management Plan aligns with those things. It might develop new policy. It probably will develop new policy and positions. I think, and Councillor Stockwell might want to explain his amendment, but I think this says prior to, so the fact that the DMP is not there. So you're right, once the DMP is there, it will do all of those things, but this is because it's not there. Councillor Jurisevic: I'm just about to go then, Brian. And given that we've asked questions in that vein and that Councillor Stockwell hasn't had a chance to put his case,

02:30:00 I'm happy to second this so that we can hear both sides of the discussion. Deputy Mayor Stockwell: A little while ago, Councillor Wegener brought up the point he doesn't know what's in the Destination Management Plan. So if a councillor doesn't know what's in there, should we leave it to staff to interpret what that's going to be? Or should we give guidance to both TN, ourselves, and to a large part of the community who will be interested in this agreement as to how we would like, the partnership, or the Service Revision Agreement between Council and Tourism Noosa to proceed in the future? Councillor Drew Zemeckis would like to keep it straight to the Corporate Plan. That would be one way to do it. But the Corporate Plan is currently only a draft. It will be adopted in the near future. And it's about how TN, what guidance are we going to give in the interim before the Destination Management Plan? Is there some guidance within our, in the Corporate Plan, that will provide TN with some guidance

02:31:00 about what Council will be looking at? In my opinion, there is. And, Alinda, if you can bring up the Word document that I provided earlier. Councillor Jurisevic: I'm talking about TN, sorry. Deputy Mayor Stockwell: Okay. So if we look at what's in the draft Corporate Plan, we don't know what's going to be in the DMP. But we know that in the Corporate Plan, we're given a fair bit of guidance. And the first one there, and this is what's probably the most important issue for our community, that balancing the needs and quality of life of residents while sustaining our tourism sector so that the two can comfortably coexist is critical. To me, it's really important that Tourism Nature understands that once that becomes our Corporate Plan, we would hope that a strategic planning is all based on that understanding that that's critical. But next, our artisan and niche industries form a small part, important, small but important part of our visitor economy. Another thing that's identifying that what might be as part of a strategic plan, and certainly as far as international destination stewardship protocols, that's an important part of getting

02:32:00 to a destination management plan. Building our emerging local food and drink industry and our established arts and cultural sector is a key to creating an authentic experience for residents and business alike. Once again, in the Corporate Plan, once it's adopted, that will give guidance. The success of our economy is driven by our reputation for ecological sustainability and nature conservation. Once again, tourism does understand this thing, but we need to make it really clear what we think is important and what's in our policy. We seek to support Kabi Kabi in progressing their priorities for their people, and that's another emerging area in terms of where tourism and indigenous tourism can emerge. We are focused on our economy, economy transitioning to a more circular economy, focused on reducing, reducing, recycling, reusing and recycling, and obviously, you know, things like plastic-free Noosa, tourism Noosa, and we aim to achieve zero net emissions by 2026. So, when they become Corporate Plan, we can clearly say, this is what, we want you to come on the journey with us. We want, and, you know, this is how intelligent use

02:33:00 of marketing can build a Noosa brand. It's by building a values-based marketing framework around attracting people. We want people who share our values, who share the values of this committee as expressed within documents like the Corporate Plan and other strategies. As Councilor Lawrence mentioned, the DMP will be bringing together a whole lot of strategies. Until it's there, we have to rely on something else, and to me, I think it's important just to highlight that these are the sort of things that the tourism nurses should be considering in the next six months until the DMP's up and running properly. Speaker 2: Thank you, Councilor Stockwell, Councilor Stockwell. Councillor Wegener: We're, duplication between what tourism is doing and what council is doing is a big issue that we're wanting to address. Speaking of duplication, is this another duplication

02:34:00 of what's already in there? I don't think so. You don't think so? Deputy Mayor Stockwell: I think it brings it to a, is it a duplication of what's already in there? There's nothing in there that talks about key aspirations. To me, it's talking about consider and respect the key aspirations of council and its policy framework. To me, that's really important to say we're on the same vision and the same journey together. It's fairly administrative in its approach and fairly specific. To me, it's just important that in the interim, destination management plan will achieve this, but up until that point, I think we just have to say let's come on the journey together. Councillor Wegener: And Kim, is there a, you know, is there going to be a more or less collaboration or, you know, conversations with tourism is that coming up to make sure that this is being implemented? Speaker 7: Yeah, absolutely. I mean, the deed just sets the framework. Yeah. The substance of is our relationship

02:35:00 and the partnership and how we collaborate and consult. And that, absolutely, that will continue to happen. Speaker 1: Okay. Speaker 7: Thank you. Thank you. Thank you. Yeah, I'll speak to it. Councillor Jurisevic: Having re-read it and having heard Councillor Stockwell's articulation of what I misread and stated in relevant plans, strategy and plans is part of the development of Tourism Noose's strategic plan marketing plan strategy. So I didn't read that right the first time. Now that I've read it again and I've heard Councillor Stockwell's description of what he's trying to adhere and that it's a prior to the completion and adoption of the TN, to give direction to TN that align with our corporate plan is the type of thing that the DMP will facilitate and that we should be going on that journey. One could argue that TN is, in fact, ahead of Council's corporate plan in delivering plastic-free Noosa and actually has eliminated a lot of plastic and created a situation for Council that we're trying to catch up on, and that is compostable waste that we don't have a stream for.

02:36:00 So, in some ways, they're ahead of our corporate plan and ahead of our waste strategy going forward. So I'm quite happy to support this element of it, knowing full well that we're Tourism Noosa are with elements, and I don't think Tourism Noosa are not in alignment with the elements that we expose to deliver as a destination, but that could be good to consider. I'd clearly articulate that we're both on the same page. Councillor Lorentson: Thank you, Councillor Driscoll. I've got a couple of questions, Kim. So, referencing the legally binding agreement on page 5, TN's obligation governance, 4.1 point, you know, ABCDEFGH is all about strategy, that there is some serious governance obligations and reporting obligations, most of which,

02:37:00 involve Council review of strategy, operational, again, is this superfluous? Is what's Councillor Stockwell requesting already part of the agreement, and are we, I don't know, to me, time is of the essence, and if this gets put up, again, I'm going to move a procedural motion, because we need an answer ASAP. Mm-hmm. For the staff, and I just, I love the intent. I don't actually have any issues with what you're putting forward, Brian, but I do think it's explicit. I don't think it's implied. I think it's black and white, and every four months, by 30th of September, 2023, TN's going to develop a four-year strategic plan. The CEO's... I've got a debate in here. Oh, sorry. I'm just going to talk to the amendment.

02:38:00 For reasons already, sort of, raised at the table, I think what's been requested is already captured in the agreement. I also know, being the observer on the Tourism News Board, that the CEO, the acting CEO, has already commenced aligning TN's strategy with the new funding agreement. We... We have umpteen opportunity. September 2023, we've got, my gosh, December 2023, the strategy's got actually come to council for approval. And that's the opportunity where we sit down and just go, does it align with our corporate plan, which has not been ratified, our DMP, which has not been ratified. But existing tourism news says,

02:39:00 umpteen strategies, um, from previous agreements, um, already do that, but they're already on the course, and as, uh, Brian's, one of the councillors mentioned, they're actually ahead of the game on sustainability, which is, again, one of the core, um, one of our core priorities. Um, you know, we're about to enter into a global recession. We need to be at the forefront of waste and sustainability. Um, and that's something that Tourism Noosa is already leading on. So, again, I don't actually have issues with any of the amendments, but I think we're, I, I just don't think it's needed. So, um, that's my position. Thank you, Councillor Lobson. Councillor Judd. Councillor Jurisevic: Sorry, Councillor Wickey, it's a minor change, but, uh, I'm asking of the, the mover and, of course, the, the entire, um, council, um, around the table, can we just change the word, it's, to TNs, as in Tourism Noosa's strategic plan, because that was what I was confused with.

02:40:00 Sure. I just think it clarifies what, who it's referring to with regard to strategic plan, marketing plan, and events strategy. It doesn't change the intent, I think it just clarifies who it's, who it's, is referring to. TNs, it's the TNs. TNs, so Tourism Noosa's, or Tourism Noosa's, Tourism Noosa's strategic plan, marketing plan, and events strategy. I think that clarifies the, the nature of what Council Stockwell's doing. I know we don't typically change these sort of things on the run, but, uh, there's no change to the intent, it's just to clarify who it's referred to. No, I don't think there's a technical amendment. If there's no, if that's a technical amendment, nobody objects to it, is there? No. Councillor Lorentson: Um, can I just ask a question? Uh, I still probably want to move a procedural motion, again, um, to allow a consultation with our lawyers to see whether the wording is actually correct, um, to be included in the legal document, and also to allow TN the opportunity to at least, at the minimum, be consulted on any amendments.

02:41:00 Um, is this the time to be moving a procedural motion, or should we wait for a decision to be made? We'll have to get the amendment done and then we move it. Speaker 2: Well, if the politic can allow an amendment to be considered. Councillor Lorentson: Yes, and then I move it afterwards, thank you. Yes. Okay. Speaker 2: Well, I'll speak in favour of the amendment. Um, as Kim said, the funding agreement talks of a broad framework around which, uh, will move forward together. This talks about prior to the completion of the DNP, consideration must be given to the key aspirations of the Government. And, uh, I think that all in our community would hope that, um, TN would be seeking through their strategic plan to balance the needs and quality of life of residents while sustaining our tourism sector so that two can comfortably coexist.

02:42:00 Uh, there's a lot of other very noble and, um... inspiring aspirations in there. And as Councillor Perisic said, Tourism Noosa is already on this journey. And from what I observed, when I was the observant of Tourism Noosa 4, they would have no objection to having regard to this. It doesn't lock them in. It's not, uh, it's not saying they must do anything. Um, sorry, they must consider and respect the key aspirations. Um, my guess and, sorry, my... What I understand about Tourism Noosa, they're already there. As Jo said, they're already ahead of the Council in terms of implementing the plastic free initiatives. Um, so I have no, I have no problem with this amendment. Uh, but I, I, I do agree that anything should be run by our lawyers by Thursday night. And, and Tourism Noosa before Thursday night. And that can happen regardless of the condition.

02:43:00 But... Oh, okay. Councillor Lorentson: Yeah. So we can still vote. Councillor Wegener: Um, Tom. Question. So is this, will this go into the actual contract? Or is this, this wording will go into the contract? So it's, it's not like a normal amendment which, which goes, you know, into one of the reports and telling your staff what to do. This actually goes into the contract itself. Speaker 7: Yeah, so this sits below the previous, uh, recommendation as I understand it. Which says, um, authorise the CEO to make minor changes to the funding and performance agreement as required. And then this amendment specifies that change. So yes, it would go into the deed. Councillor Wegener: Um, I, I'm a big fan of Occam's razor. And that is, it's, it, if it doesn't have to be there, it doesn't, it shouldn't be there. And the corporate plan, which is a fantastic thing, it's not done yet. And so we haven't actually been ratified it.

02:44:00 So again, I would, if the corporate plan was ratified, gone through public consultation or so forth, I think I'd be 100% behind it. But I, I, this is hard for me to, to, uh, to agree to something, to go into a contract when we don't actually know what it is yet. Speaker 7: Just, just to clarify, just to clarify, the co, the corporate plan has gone through consultation, truthfully. It has, but it hasn't. But it hasn't come to council yet. It'll come to council next week. Councillor Wegener: 27, 10 days. And then there, so it's not going to quite be. Speaker 7: Yeah, just wanted to clarify. Yeah, there you go. Your statement about consultation. Speaker 2: Councillor Stockwell, Mr Close. Deputy Mayor Stockwell: Yeah. Councillor Wegener: Um, I'm going to finish. Deputy Mayor Stockwell: To a certain extent, I agree that the framework's in place where these issues could be considered. But I've read this document probably three times now, and I'm not satisfied that we've given any guidance to that effect. We've picked out some of the issues we want dealt with specifically, but it's, in an administrative, to me, it is about key aspirations.

02:45:00 And when we say the positions of council and articulated corporate plan, because the corporate plan has been through two lots of consultation promised out, it's also the community's key aspirations. And I think we have to restructure the, the relationship, to a certain extent, between the community and Tourism Noosa and us, in that we are all working towards similar aspirations. And this document is where to start that journey. I don't see anywhere explicitly where that's a requirement. And, and I agree that in many aspects, the, the issues that, the aspirations that I identified in the draft corporate plan, which I don't see changing next week, um, they're already on that journey. But what if there's proposals come up, and we want to go here, we want brand new, we It actually makes their job of strategic planning more guided, to say, are we at liberty with

02:46:00 the funds provided by Noosa Council to go in a different direction to Noosa Council? We're just saying no, we want you to go in our direction on these key aspirations. It's not saying we're going to tell them how to do it, what to do, we're just going to say, please respect them. Speaker 2: Okay, the amendments are both. Those are bail. Those are unanimous. The amendment now becomes part of the original motion. Councillor Robertson, would you like to move to a procedural motion? Councillor Lorentson: No, I'm happy to just, if we can just get the information before the ordinary meeting. I'll undertake both of those actions. Thank you. Deputy Mayor Stockwell: And I should mention that the way that's worded, it doesn't specify what final words, it just says age requirement, so it doesn't say where to put it, like the last one, or what the specific words are. Speaker 2: Okay. Okay. Okay. So, go back to the original. The original motion, and only Tom and myself have spoken to the original motion.

02:47:00 Anybody else wish to speak to it? Deputy Mayor Stockwell: I will. Tourism Noosa has done a job for this community that has made the lives of many people in it much better. They have maintained it over the decades. A level of visitation that has underpinned a large part of their economy. We know now that we're in a time where we are suffering the effects of being too popular. That we have got to a point where our attraction as a place for visitors is causing congestion, is causing problems on the Noosa North Shore, is a range of things. Now, there is, within the community, a view that, well, you stop marketing and everything, and the way that you have been doing it, you might lose your market share, and actually, particularly at the current time, where there is a big degree of uncertainty

02:48:00 about the economic outlook globally. I'll be convinced after this National Management Plan about where we have to head. And in the interim, I think there is an opportunity to have a ... with the intelligence and the We thank the CEC for their capacity with interiorism Noosa to use our marketing budget to start heading in the direction to address some of those problems. If we for example attract the right sort of people to our short stay accommodation that don't have large families. If we start to attract people from New Zealand who come here because they identify with the values of Noosa, if we start to look at where and who we market to so that they're here The reason Tread Lightly Program to be part of what this community aspires to do, which is to be an example, a global example of sustainability and futures, and for that industry to contribute to things like achieving an ambitious target of zero emissions by 2026, that's the challenge for tourism industry, is how do they use their smarts, how do they use all their data to actually work with the aspirations of the community.

02:49:00 I think it's a good agreement in terms of the structure and its administrative function, and it's become much more performance-based, and that should provide those within tourism with some fairly clear targets, deadlines, milestones, which will, I believe, generate more efficiency within their organisation. There's one part of the agreement that hasn't got a lot of bear players yet, but it also encourages them to start looking for their own solutions. To a great extent. That is, when you look at their budget, a real area where significant increases could be achieved. And I think that's one where, you know, when we get to the two years, that will be one of the key performance indicators that councils at the time will be looking at, is how much have member fees or joint marketing programs actually match the community dollars that go into Tourism Noosa.

02:50:00 So, on the whole, I think it's a good agreement. I'm glad that last amendment will go in, because I think that is key to reassuring our community that Tourism Noosa and the money that we provide for the sustainability and marketing of that sector is aligned to the aspirations that they hold. Speaker 2: I have a question. Part C of the motions has confirmed the release of the funds as stated in the report for 24 and 25 years. That's not saying that... Just to clarify, what is that actually committing this to? Is it 2.52 of both years, pending the signing of this agreement and adherence to the conditions?

02:51:00 That's right. That's exactly what I'm saying. That's what I'm saying. All the money goes out now, so I'm saying that... Speaker 7: That's right. As per the agreement. And paid as per the agreement in two stages. In two stages. Thank you. Councillor Jurisevic: Can I just confirm an element of what, Councillor Hawkins? You've asked there. Has the amount been determined for 24, 25? Speaker 6: Yes. Councillor Jurisevic: It has been? Speaker 7: Yes. Councillor Jurisevic: Within that agreement? Yes. Okay. That's all right. Speaker 2: All right. Any other councillors to speak before we move on? Mary? Councillor Lorentson: I'll speak, and I'm going to ask if I can have some leniency. I've got a little bit of a speech that I've written. So, so... Councillor Jurisevic: Start the clock now. Councillor Lorentson: So, as everyone knows, I'm the observer on the tourism NUSA board, and have been for the last three and a half years.

02:52:00 Okay. NUSA is world famous for its surfing destination, and it's one of Australia's leading holiday destinations. So then why do we need to continue destination marketing? Do we need more tourists, and what happens if we decide to stop marketing NUSA? I've sat on the tourism NUSA board now for the last three years as the elected observer, looking for the answers to these questions, and these are my two main observations. One, we live in the best place on earth, and with that comes so many different and high expectation challenges and opportunities. And number two, in NUSA, tourism is the best place on earth. Tourism is everyone's business. Tourism is the number one economic driver for the region, injecting $1.6 billion into our NUSA economy. And the flow and effect of tourism affects almost every business in our region.

02:53:00 It also affects the health and well-being of our residents and our lifestyle. Positives include living in a vibrant community, having access to a beautiful natural environment, and world-class dining experiences, and the opportunity to be involved in a range of sports, arts, and foodie events as participants and volunteers. Like anywhere, there are negatives, and they include congestion and traffic, and the impact on the quality of our trails, the surfing experience, our national parks, our rivers, our creeks, and the vibrancy of our local art and culture. During my time as an observer on the tourism NUSA board, I've learned a lot. I've learned several things from directors, past CEOs, and acting CEOs who are passionate about NUSA, our environment, and our economy. Two things that have stuck with me over the years. One, the importance of data. That it's important for TN to keep investing in, applying, and learning from real data.

02:54:00 Who are our best markets? What influences the propensity to spend? And how do we, as ratepayers, get the biggest profits? And number two, the importance of experience protection. Protection of our environment. Our beaches, our ocean, national parks, our trails, our rivers, and our creeks. And that if we lose that experience, then we lose our edge. And what makes NUSA such an amazing place to live. I think the challenge for us all is that our experience and our environment is under threat. And once that's gone, it's gone. And our reputation is gone. And that's expensive to get back. Another thing I've learned is the importance of looking back to look forward. The high spend, small footprint is the right direction for tourism NUSA. But we need to present it in a way that looks inclusive, not exclusive.

02:55:00 Marketing should be channeled towards certain demographics that benefit us. Not just rich people in Melbourne. But what the tourism industry refer to as the high value traveller. Those that spend more in the region, stay longer, and disperse regionally. They enjoy cultural events, food and wine, music, theatre, art, film festivals, surf festivals, sporting events. Many of the things that NUSA is known for. What I've learned also by sitting at the table is that as an industry and as a community, we need to speak with one voice. And that without this one voice, the destination loses its brand. We need to deliver a coordinated and clear message to visitors about who we are and what we value. To enjoy and respect NUSA, our environment, and the people who live here. And that's where Tourism NUSA fits in.

02:56:00 It's our one voice. The Bill Seibel report, 2006 report that Frank referred to. The rise and fall of Colorado. Shows what can happen if we start marketing a region with, if we stop marketing a region with one voice. If we market NUSA with many voices, then it becomes what's in it for me, rather than what's the greater good for the destination. The success of Colorado's tourism communities, just like NUSA, was built over decades and decades of promotional work. Tourism NUSA have built an amazing brand. And now is not the time to kill the golden goose. Since COVID, NUSA has enjoyed good visitation. But 2023 is already showing signs of slowing down and will be challenging for not just the tourism industry, but all businesses. As the flow on continues into our economy, and we cannot just assume visitors will continue to come to NUSA.

02:57:00 3,240 jobs depend directly on our visitor economy. In 2020-21, 3,240 people were employed in accommodation and food services in NUSA. That's 13.8% of NUSA's total jobs. Making it NUSA's second biggest single job sector, just behind healthcare and social assistance. That number does not include the many jobs indirectly related to tourism. Retail, health, wellness, arts, weddings, events. Hire and rental and real estate, which also rely on visitor patronage. Now to the Tourism NUSA funding agreement. What's new? The new Tourism NUSA agreement provides enhanced governance and reporting in relation to expenditure of Council funding. Whilst respecting that Tourism NUSA is an entity in its own right. Tourism NUSA receives $2.52 million from NUSA Shire Council.

02:58:00 And it's therefore critical that they demonstrate that they can administer those funds with probity. With accountability, transparency and effectiveness. Tourism NUSA are obligated to justify and account for their programs and activities. To earn trust and prove reliability with the community. By providing insight into their decision making process. The community expect it, and so does Council. That is why our new agreement with Tourism NUSA, has increased governance and reporting. Another significant change to the agreement is the destination management plan provision. The DMP, when completed, will inform Tourism NUSA's future position. In relation to the management of the visitor economy and tourism within the NUSA region. Tourism NUSA might also be expected to implement aspects of the DMP which fall within its ambit. As agreed between Tourism NUSA and Council.

02:59:00 In closing, Tourism NUSA exists for three reasons. Number one, to protect and develop the NUSA brand. Number two, to deliver evidence based marketing strategies and promotion. That attract high value visitors and achieve increased regional dispersal. And number three, to provide the 600 plus members with value added services. Tourism NUSA does not exist. To bring increased visitors to the region at all costs. Tourism NUSA do not target day trippers in their marketing. Who drive to the region, cause traffic and car parking congestion and who spend less in our region. If Tourism NUSA stops marketing, the one million plus day trippers who come here, will continue to come. However, the highest spending overnight visitors, particularly those from interstate. Many who don't drive here, will go elsewhere.

03:00:00 And NUSA will then solely need to rely on second owners and wealthy residents. To compare, the average spend per person of day trippers is $105, which is less than 6% of interstate visitors who spend $1,965 on average per day. We need a tourism industry that works with our community to manage and protect our destination. And we need to deliver with one voice, a clear and coordinated message to our visitors. The best managed destinations are good for the community and the best managed destinations are good for business. And there is no team better qualified and more committed to manage and protect our brand and destination than the team at Tourism NUSA and their 65 volunteers. Thank you. Speaker 2: Councillor Morrison. Chair, did you wish to speak before?

03:01:00 Councillor Jurisevic: Yeah, I'm just trying to work out if there is anything left to say. What she said. No, look, there are some elements of that. And look, Councillor Wilkie, you mentioned somewhere within what you said, stop marketing. Look, I don't, and Councillor Morrison went along these lines too. I don't think anybody is suggesting you stop marketing. It's how you market, what you market, and who you market to. And the elements that you, and Tourism Noosa have done a brilliant job of that over the years. They've done more than just promote Noosa as a place to come to. They introduced a program called Welcome to Noosa to ensure the businesses here in the region and those that were part of the visitor experience knew what their job was and what their element of delivery of service to the tourism industry was. They talked about Refresh Noosa so that ageing properties that thought they could demand top dollar year in, year out without doing anything about their properties

03:02:00 weren't going to get that going forward and that were actually going to diminish the image and the projection of Noosa as a marketable destination. They worked on Plastic Free Noosa as I alluded to before. They're actually a head of council in having reduced plastic waste and delivering that waste reduction message to those that come to visit this region. And those that have events and that in the region. And they've looked at other activities and I can't read my own scroll. It's terrible. But some of the things that they can help with are alluded to in Destination Management Plan and of course in how we manage our tourism numbers in the future. And some of the elements that have been the challenge that we hear our community cry about the impact on a regular basis. And that's the elements of congestion, particularly around that Hastings Street Precinct. We'd have free buses, you know. It's one of the things the council has delivered, free holiday buses and free buses.

03:03:00 But unless we market that to those that are coming here, they won't know until they get here. So they'll still bring their cars. But if we know before they get here that there's an alternative, perhaps they'll reconsider their cars. Perhaps that'll aid and ease the congestion of the region. That's just one example of the sort of things that good marketing and well-marketed product that's delivered here as a whole and part of council's remit is delivered going forward. So there are solutions there. We talked about looking for other funding opportunities. I mean, that should be the remit of any good business environment. It shouldn't be reliant on one whole income source as the only place to grow and develop. Council's doing that of its own course. We're looking at how we can ease the burden on ratepayers. We'll look at other revenue sources. We have tourism ventures that facilitate that, holiday parks and the like.

03:04:00 So that's just good business acumen to look at opportunities within the operations that you undertake for funding opportunities and revenue sources going forward. So I think all of the elements, that we're talking about here are things that Tourism Noosa has embraced and delivered over the years and will continue to deliver over the years. To be a partner with council in that going forward is crucial. And I think this document and this funding agreement is a key element of that. So I welcome it and I hope Tourism Noosa welcome it. Now, I hope we continue to work together hand in hand for the good, sustainable tourism region that we are renowned for being. Speaker 2: Thank you. I'll wait for my right to close. I think it's all been said. I'll put the motion to the vote. All in favour? That is unanimous. And thank you for sitting there and being spoken about in the third person. It's a very odd experience.

03:05:00 Speaker 6: Councillor Finzel? Thank you. Speaker 2: Councillor Finzel? Speaker 6: I hope we have a great laugh. Thank you. Thank you. Councillor Lorentson: Thank you.

03:16:00 Speaker 2: Thank you. Speaker 1: Thank you. Speaker 4: This was under the particular grant funding available as part of the reconstruction of essential assets and that it's not a, no council funds will be used for this particular project.

03:17:00 As part of that, we told them that any costs associated with this needed to be grant funded and that points back to scope. So as long as we have the scope available, and which we do, and a really strong scope, we are unlikely to see any blowouts from that point of view unless we come across something that is not known to us now. So we dig something up and find something, yes that will be a variation, but that will be a negotiation we have with QRA as part of fulfilling the scope. We also made it really clear to the contractors on site that there's no rise or fall negotiations. Or anything like that. But in terms of council budget, there is none here to spend. Speaker 2: So if there is any blowout, the extra funds will be covered by QRA? Speaker 4: As long as the blowout is related to a fair and reasonable design change as dictated by the scope in relation to the guidelines.

03:18:00 Which is part of the reason that we have the team that we allocated at the beginning of this project. Allocated because they were... They understand those aspects so intricately. Thank you. Councillor Jurisevic: There needs to be a rhyme and reason behind a change in design concept to facilitate any change in concept. The element within this that Council Stockwell will be particularly pleased with in this incident, two water crossings are amber fish passageways. So the sites need to be upgraded to meet the Department of Agricultural Fisheries design standards. So this looks to me that it's included all the elements. That are required to be at today's standard of engineering requirements and environmental requirements. Speaker 4: That's correct. So as part of the RECA process, that if a particular DAAF requirement is required, we'll include that in there. There is a small portion where we're wanting to make some improvements around some wing walls on there.

03:19:00 And we're currently in negotiation with QRA to fund that as well. We've got a lot of work to do. We feel pretty positive about that to date. And if not, we've mitigated that risk by being able to pull that out of the scope and not have it as a risk to Council. Councillor Jurisevic: What are the advantages of the wing walls? What does that deliver in the design? Speaker 4: Yeah, that'll just prevent some scouring on the side of that waterway there to prevent any future impacts in those particular areas if we have a similar overland flooding circumstance like we did in Feb, March last year. Councillor Jurisevic: So an element of resilience in the design going forward for that area, for those two Speaker 4: targets? Yeah. We probably wouldn't go as far as resilience because there's some certain classifications around what we call resilience impediment within the grant guidelines. But it certainly makes the design much more robust. Councillor Jurisevic: Okay. Thank you. Yep.

03:20:00 Fish passageway, Brian. Yeah. Speaker 2: Maybe you'd like to move this one, Brian. Oh, look. Always love a movie. Councillor Jurisevic: And I'll second it. And I'll second it. I was going to move it, but I'll let Brian go with the fish passageway. Deputy Mayor Stockwell: I know. I think it's good that we continue to get these projects through and start to get some of that major damage that was done throughout our building assets. And it's just fortunate that we do have the Queensland Reconstruction Authority because obviously the impact on this community from last year's flooding would have been totally unreasonable to fund from ratepayer funds. So we do appreciate the role of the state in providing the funds to recover from the disaster. Speaker 2: Yep. Yeah. Councillor Spicer? Yeah. Councillor Jurisevic: I'll not only thank the QRA. I'll thank Julie for her tireless efforts in this sphere for the large task ahead of us and being able to, one by one, whittle our way through all of the elements before

03:21:00 us to deliver the repair works for Council. Thank you, Julie. Yeah. Speaker 1: Thank you. I agree. Speaker 4: Thank you, councillors. Thank you, Larry. But it is a team effort. Yep. Speaker 2: Do any other councillors wish to speak? Councillor Wegener: Tom? Just I could echo other councillors and say thank you, Julie, for your hard work over the last- Councillor Jurisevic: And the team. Speaker 2: Thank you. Brian, would you close? No. That is unanimous. Thank you, Julie. Speaker 1: Thanks, Julie. Speaker 2: We should also note that Councillor Finzel didn't return from meetings, she had personal matters to attend to. Next item is Budget Review 2, the 2022-2023 Finance of the Year. Welcome Pauline and Trent.

6.2 BUDGET REVIEW 2 (BR2) FOR THE 2022/23 FINANCIAL YEAR ¶

▶ 03:21:43· Carried unanimously 5-0 from council's minutes

03:22:00 Pauline and Trent, could you give us an overview of what's happening in Budget Review 2 please. For those who might be listening for the first time, what a budget review is and why you do it. Speaker 5: Sure. So under the Local Government Act, Council is required to undertake regular reviews of our adopted budget to ensure it remains reflective of our planned activities that need to be funded through the financial year. This is the second budget review for the 2022-2023 financial year and it incorporates any new or emergent issues that we become aware of during the year or any actions that come out of Council resolution so that it reflects an accurate forecast of where we believe we'll end up at the end of the financial year. So does that explain what a budget review is? Okay. So in summary the budget review is proposing a net improvement of $880,000 in our operating position with our current operating deficit of $718,000. This will improve to our $162,000 surplus.

03:23:00 This results from a range of emergent costs that have been funded from additional revenue and grant funds that have been received year to date. Council's Operate Capital Expenditure Program has decreased from $57.1 million down to $56.6 million with $6.3 million in emergent works and project variations being recognised. This is offset by $8.7 million of the projects being delayed until the 2023-2024 financial year because they're multi-year projects and also incorporates the recognition of $2.5 million spent in relation to the QRA disaster funded projects that have occurred this year. We've also recognised an additional $14 million revenue predominantly relating to the QRA disaster funding that we've received to date and this offsets obviously the spend that we have on those projects. All forecast financial sustainability ratios continue to be met out of this budget review so overall it continues to show that Council is in a strong financial position.

03:24:00 Did you have any questions? Questions, Councillors? Councillor Jurisevic: Yeah, the first one if I may. Sure. The Capital Expenditure Program decreased from $57.1 million down to $56.6 million. What has accounted for that half million dollar change? Speaker 5: So there's a net movement so of the, let me just bump back up here, $6.3 million with emergent works and project variations. So the largest project variations related to the Noosaville Parade Project, Beckmans Road and also some emergent works relating to David Lowe Way at Peregian Beach. So that's reduced, that's increased our budget. However, we've offset $8.7 million so that's pushed out. Largest of those projects was the Garth Proud Bridge which has been delayed and deferred to the following year. Councillor Jurisevic: That's not to say those projects won't be undertaken. Absolutely. They've just been rescheduled to accommodate the other, to work within our financial strategy. Speaker 3: Absolutely. Correct. And for those that are looking at this as Pauline's talking through it, it's page 48 of the agenda has a summary by program and then page 53 onwards does have a list of actual projects.

03:25:00 Councillor Jurisevic: This new system, those page numbers don't align. Speaker 5: That's okay. So Noosaville, Garth Proud is pushed out. That's $2.9 million. That's it. $1.3 million of our fleet program that actually carried over has been pushed out due to supply chain and delivery issues. So they still will occur. They'll just happen in a future year as well as the Loch and Weir which will span both years. So it's $900,000. So they're the major push outs for this program. Councillor Jurisevic: That's something for the CEO to consider there. That's an omission in this new system is that the page numbers don't get referred when you break them down into, if you look at the document as a whole, but when you break them down into these. Speaker 3: Yeah. Councillor Jurisevic: We're going to have two or five and no page numbers. Speaker 3: So I'll take that on notice. I can give you some instruction on how to download the entire packet document once it's called. Councillor Jurisevic: I can do that. But if we don't. Yeah. Speaker 5: I think it's the way that they use them. Yeah. Speaker 1: Yeah. Yeah.

03:26:00 Speaker 2: Just a question. There was an adjustment of $135,000 downward in the development assessment fees and charges. What happened there? Because normally conservative budgeting. Correct. It's normally more than. Yeah. Speaker 5: So historically, based on what we've seen in the last three years, particularly with COVID, there's been an acceleration in development assessment fees. And obviously the market has started to slow and we've seen that come through in development assessment fees. We have spoken to the area and they are expecting some larger development applications to come through. However, we aren't sure on the timing of those, so they may occur in the following year as well. So we've adjusted accordingly to be conservative. Speaker 3: And just to clarify, councillors, what finance and the executive team do after the submissions come through from the budget process from management and officers is we identify the risks, where there is potential risk of overspend or where there is some downside in revenue.

03:27:00 And we take that up through the process so that we're recognising that you'll see that the same at the very first as well. So that our forecast between now and June is as accurate as it possibly can be for the year in position. Councillor Jurisevic: I'm happy to move the report. Speaker 2: Okay. I'll move. Happy to second. Councillor Jo seconded Amelia. Thank you. Councillor Jurisevic: I'd like to thank staff for their time and effort. The financial review, the budget review too, shows that we're in a sound financial position. We're managing all of the programs for the year. We're doing sound and prudent amendment of our capital works program to stay within our budget. And that we're meeting all of our operational net financial liabilities and assets sustainability ratio as well within the parameters of the state's requirements. So I'm happy to move that the budget review be accepted and acknowledged for the work

03:28:00 that's been done. Speaker 2: When the councillors wish to speak, we'll have questions. I'll ask a question on, in the Statement of Financial Position, there's a jump in provisions from about six months ago. And can you just explain, which is a shift of $8.8 million. Can you just explain, sorry, quite a significant shift. Could you just explain what that movement's, what provisions are in under non-current liabilities and what that shift represents and why we've done that? Speaker 5: Sure. So provisions are basically an estimate of council's estimated liability for whether it be employee entitlements, restoration of landfill or quarry. So they're the predominant provisions that we take up. So in terms of budget review two, we, when we did budget review one, we had a finalised

03:29:00 end of year financial statements for 2022. And they have now been reflected in opening balances in BR2. And a part of those adjustments that went through in the 2022 financial statements was a revision of our landfill provision estimate. Due to the work that was going on at the site and the additional costs that were, and scoping of what was required, that revised that provision quite substantially up by $8 million. So that's where it's flowing through at the moment in these financial statements because the opening balance has now been adjusted to reflect what we adopted at that time. So the landfill provision is essentially what we would, we need in order to restore that site once the site's completed and finished for use. Speaker 2: And on the same document, asset re-evaluation surplus went from $144 million up to $343 million. Excellent. Can you just explain what has actually happened there and what that means in terms of our appreciation and value of our assets?

03:30:00 Speaker 5: Sure. So the asset re-evaluation reserve under, each year Council undertakes a re-evaluation of an asset class to represent the actual replacement value of those assets. And last year Council undertook the re-evaluation of land. So in the last year's financial statements, we increased our land provision, sorry, our asset reserve in relation to land by about $175 million. Land doesn't attract depreciation, so there's no actual impact to our depreciation expense relating to land, but obviously it inflates our land reserve, but also our asset value as well. So asset value's increased. Speaker 2: Was there an increase in the value of our bank equipment? Speaker 5: Yes. So there was also an indexation of our other asset classes based on some methodology. We apply indexes in building construction, those sorts of things to assess whether there's a material movement and where there's a material movement. We will take it up, and therefore there'll be some depreciation impact from that as well. Speaker 2: So property, land and equipment, if I read it rightly, it gets increased by some $200 million?

03:31:00 Correct. So is that meant for buildings? Speaker 5: That includes buildings, roads, stormwater, other infrastructure, land, land equipment. Speaker 2: So net assets for the community is increased by that $200 million as a result of this? Correct. Speaker 5: And the next session will be for roads and bridges, so we're in the process of conducting that at the moment. Speaker 2: Thank you, Pauline. Paul? Councillor Wegener: Yeah, to clarify, I'm on the Auditor's Risk Committee, and we've talked about this extensively, and they actually changed the way they value something. For example, the Giroine, the sporting complex, they revalued it one way, and then the auditors decided, no, you've got to value it a different way, which is the land trip, what it would cost to go next door and buy all the property and put it there. Is that right, Pauline? Speaker 5: So with land, there's two different ways you can do market value or cost value. The independent valuers that we gauged last year adopted a different approach, which was a cost approach, which would mean instead of just taking the market value of that site, so you can't really buy a sports complex, they don't really go on the market and discounting

03:32:00 it, they adopted the approach of if they had to acquire land on that site and develop the site, what that cost would be. So yes, there was an inflation in terms of that. So the approach increased the value, but we also had substantial land value increases, as most people are aware, and that's flowed through as well. Speaker 2: And the government subsidies and grants for Capital Works, it's got a figure of $32 million. So $32 million has been received in terms of that. Speaker 5: So overall, we're expecting to receive $32 million. We received $13 million-odd from Kerari, as it is, which is currently not budgeted for in the accounts. So that's where the majority of that adjustment has come from. Speaker 2: So we haven't actually received that money yet? Speaker 5: Yes, we have received that money. We've received $13 million of the additional extra. So if we look at- Speaker 3: So $23 million is year-to-date, councillors? Yes. Is that correct? And that'll be in the next agenda item that we're going to?

03:33:00 Yes. Speaker 2: Okay. Speaker 3: But we are anticipating more grants received between now and June, as we get to the end in completion milestones on some of those projects. Speaker 2: And just in that figure of $32 million in grants, have we received anything like that in the past? Speaker 5: I doubt it. No? Speaker 2: No. Speaker 1: No. Speaker 5: That's largely to do with the Queensland Reconstruction Authority, with the disaster projects. Yeah. Large, large- Speaker 2: Are we funding externally managed projects? Yes. Thank you. Any other questions or comments? Deputy Mayor Stockwell: Just for comparison purposes, because it is important to understand the impact of disasters on our community and the fact that the state is paying for it tends to push it a little bit out of the scope of local government. But if the forecast in terms of the frequency of disaster comes forward, it is something we need to think about.

03:34:00 So if the council had to pay that $32 million, what would that mean? $32 million in grants. What would that be equivalent to roughly in terms of percentage increase in rates? Speaker 5: It would be substantial. Speaker 3: Our annual general rating revenue is $62 million. So it is, if it was an annual event, it would be 50%. Deputy Mayor Stockwell: I think we have to really be aware, like when we talk about the impacts of disasters and the fact that their frequency and magnitude is continuing to accelerate, that public investment in recovery is substantial. Councillor Jurisevic: Something that Tom brought up, or that was brought up with regard to the land valuations on, say, a sporting field, for example. Speaker 6: Yeah. Councillor Jurisevic: Is there any consideration in how that's valued with regard to what alternative uses could be on that land?

03:35:00 Because often sporting fields and the like are on land that cannot be used for other purposes, or it's flood plain or the like, and it doesn't have another use, or an environmental use at best, or a use to it. So is the capacity for the land to actually deliver alternative uses considered in that land value? Yeah. Speaker 5: So when I was looking at, depending on the approach they take, they'll look at the highest and best use of that asset. So what would we do for that? Regardless of whether it can or can't be used for that purpose? Deputy Mayor Stockwell: So like Girraween, they were saying the highest and best use is for soccer rather than rugby union. Speaker 5: Correct. So in that... So in Girraween, for instance, for Girraween, because they adopted the cost approach, they looked at whether they had to acquire that land. They also looked at that it would probably be more beneficial to be a development site. So they actually applied some discounting and what it would actually be worth being a development site, as opposed to just selling it as a land, as sports ground. So they do take into consideration highest and best use. It is very subjective, and it depends on the area and what other constraints there are.

03:36:00 Councillor Jurisevic: It sounds very subjective. If it can't be actually utilised for that other use, how can it be valued for that other use? Speaker 5: So they look at it as to, if you had that piece of land, what could you do with it in Speaker 3: its current form? All right. So if the highest and best use is based on, for example, constraints such as flood level... So they do consider... Mm-hmm. ...constraint, its ability to be used for residential or for non-community purposes, then its highest and best use is not residential or development. So it does... Okay. It feels a lower category. Okay. But they do need to recognise that in infill areas, such as our coastal areas, our availability of greenfield land to undertake the construction of community land use is quite restrictive for us at Moosa Shire. So that does feature in their costing exercise lot. Councillor Jurisevic: Does that have impact upon the value of the land as a result? Yes. Yes, it does.

03:37:00 So because there's less land available, it's actually worth more? Correct. Okay. Speaker 2: Can I just ask, the asset sustainability ratio, which is 176.7 per cent... Yep. ...and as it says here, the ratio of the price to the extent of which the asset is managed by council are being replaced as they reach the end of the list of lives, does that include the work being done by the BIA funded... QRA. QRA funded works. Speaker 5: QRA funded works. Some of it does, yes. Correct. Where it's an asset that's been renewed rather than a completely new asset. Yes. Speaker 2: And is the number so high because of that? Speaker 5: It was already high prior to the QRA projects, so what we've carried over, yes. So it's offsetting some of the price. Speaker 2: Refresh my memory, what was the final asset sustainability ratio of the last one, actually? What did we end up on? Speaker 3: I think I'd have to take that one. I'd have to say because I noticed off the top of my head. Was it more than 100 per cent? I believe it was, yes. Speaker 2: I think it was, yes. Anything above 90 per cent is considered. Speaker 5: I think it was around 120 off the top of my head, but I'd have to check. I think it was around 120 off the top of my head, but I'd have to check. Speaker 2: I think it was around 120 off the top of my head, but I'd have to check.

03:38:00 All right. Do you suppose... Councillor Jurisevic: No, it does raise another question. With regard to all... I said probably not the relevant part of the discussion as to maybe in the next... Maybe it belongs in the next section with regard to all those QRA projects that are being undertaken. That has to be reassessed and revalued and put on the books for depreciation once they've been delivered. Correct. Depending on the type of match. Okay. So they'll have an impact on your bottom line in the long run. Correct. Particularly with the... No, I'm fine. Okay. Speaker 2: I'll put the debate on favour. That is carried unanimously. Councillor Jurisevic: Yeah. I know we've discussed that before. It's just... No, you're right. Ringing in my head. Speaker 2: That is the last final... Financial performance report. No, it's not. We've got one more. No, it's not. There is one more. Councillor Jurisevic: 6.3. Speaker 2: I'm still getting used to this system. It's... Councillor Jurisevic: It's... It is. It is. It's hard going back... You're going backwards and forwards. Speaker 2: It's not as quick as flipping pages. No. At the rate that they came below.

6.3 FINANCIAL PERFORMANCE REPORT – APRIL 2023 ¶

▶ 03:38:39· Carried unanimously 5-0 from council's minutes

03:39:00 All right. Councillor Jurisevic: It's cumbersome. Speaker 2: Pauline again, please. Speaker 5: Okay. So, we're going to cover up on the financial report for March for 2023. So, operating revenues continue to out-forecast and operating expenditures are slightly under-forecast year to date to the end of March. Operating revenue is $5.8 million above budget, which is being driven by rates and utility charges, interest revenue and grant income, as well as sales of goods and services, which is predominantly holiday parks, waste disposal and community facilities. Our fees and charges have actually dropped. Often, they predominantly relate to building fees and development assessment fees that are under budget year to date, which we mentioned previously, due to the slowing in the market at the moment. We have seen a decrease in what they have done in the past, especially in the last three years. Materials... So, operating expenditures is slightly under budget, with materials and services at $830,000 over budget, with the majority of that relating to civil operations, for gravel roads, parks,

03:40:00 roads, landscaping and work operations. As well as holiday parks, which relates to commission, which is offset by their revenue. So, year to date variances have been addressed as part of budget review too. So, in the previous item, many of those variances have already been addressed, so will not appear in future months. Tourism and economic development expenditure remains on track year to date, with the renewal of tourism noosa being considered today at today's meeting. So, that has been finalised. And overall... Oh. Also, as normally, as we do in each quarter, we've included a legal expenditure summary, which shows we've spent a million dollars of our $1.5 million legal budget, and we don't anticipate that we will overspend that budget this year. Overall, corporate council's operating position at March is $5.8 million above budget. Capital revenue is above budget by $14.7 million, and as I mentioned, it's largely due to the QRA grant funding that we have received year to date.

03:41:00 Thank you. And year to date, excluding disaster projects, council has expended 64% of its four-year capital program, which equates to $36.7 million, with a further $10 million committed. Council's current cash holding at the end of March was $116 million, with $50 million of these funds invested in higher yielding term deposits. So, we maximised the returns to our ratepayers, and that's illustrated by the interest revenue that's currently $2 million over budget. As requested in the past, we've also included a quarterly update on the breakdown of council's cash holdings, and you'll note the major movement in the graph compared to the previous quarter is in relation to working capital, and that's in relation to the receipt of the rates run in February. So, we receive our biannual rates run, and this will fund the operation through till June. So, that's why that's increased to $27 million. Overall, council's financial position continues to be on track, and is meeting its financial sustainability target. Any questions?

03:42:00 Councillor Lorentson: I'll start. This is a question I've been dying to ask, I think, every month, so I'm going to take the opportunity now. I always notice, you know, when we go through the categories on the operating revenue, we're always above our budget in terms of, you know, our camping grounds, our waste, property facilities, plumbing, et cetera. How often do we review the budget, and is the budget set too low, and what are the implications if we raise the budget and have less surplus? What does that mean in terms of rates and in terms of cash reserve? And this is me with my thinking cap thinking, how can we work hard at reducing our rate pays, rates, and we're in budget deliberations at the moment. Is this an opportunity? Speaker 3: Through the Chair, the first part of your question, how often do we review the budget,

03:43:00 we do at least two budget reviews a year. We've obviously got the one that just came through at the last agenda item. One of the processes we do, and one of the, what we do, we differently to a lot of other councils. We build from base with our budget. So when it comes to expenditure, we expect our officers and our managers to budget from each individual widget, ton of gravel, pack of batteries, number of consultancies, all the way up. And we do the same with our revenue. So we ask our officers to budget for what they expect of a number of entrances to an aquatic centre, the number of applications that come through the door, et cetera. Et cetera, et cetera, across all those business activities. Now, what we don't do is in one of the important things we don't do with our revenue is we don't stretch target our revenue targets too fast. So we use a conservative cost estimate for revenue.

03:44:00 And a good example of why is you look at BR2, which we just adopted, where we've had to bring down our very revenue forecast by 15%. Yeah. Because it was too ambitious this financial year because we had a quieter peak season with the number of crossings on the ferry. Speaker 2: Town planning fees. Speaker 3: Town planning fees, our development application fees, our short stay local law application fees, our building and plumbing revenue fees, they are all down. So the risk is if we stretch our revenue targets for fees and charges, goods and service sales too far. We will be in a position at the end of the financial year where we could be running at a loss. So we need to find the right balance between what is realistic and conservative for their revenue targets. The other consideration is a lot of those revenues are offset with direct variable costs. So a good example of that is the holiday park fees.

03:45:00 So we can see obviously one of the upsides that is remaining for the rest of the financial year is holiday parks. Yeah. Now, the two key risks for holiday parks. For example, is one is that we pay an operating fee or commission to the operators of the holiday parks. So the more revenue we earn, the more costs are equivalent to that. And it's the same with our facilities. The more visitors we have to one of our community facilities such as the NAC, the more casuals we need to support the operations of it. And the other consideration for fees like holiday parks is it is also subject to seasonality and demand where we're walking into what could be the risk of a recession. We've got a drop in consumer confidence. That may in turn impact our occupancy rates on our facilities in the coming year. So we always consider those factors when we budget for our revenue. And you'll see year on year if you compare this year's budget to last, the fees are all

03:46:00 increased. And as we work through this year's budget to next, you'll see that we've reassessed it and they do increase significantly year on year. The goal is that the more we diversify our revenue base, the less reliance we have on our rates. Speaker 5: And this year we've had a significant increase in interest rates, which has driven $2.5 million of that upside. That was something that none of us actually forecast would happen this financial year. So a lot of that's come from interest revenue. Speaker 3: And we'll be relying on that next year in sound investment practices with our cash holdings to ensure that we do reduce the burden on our rate payers for next year's rates as well. Councillor Jurisevic: And we've got some elements of cash that we weren't expecting, which has now contributed into that as well. Councillor Lorentson: Yeah. So back to opportunities. Is there any merit in reviewing those budgets in our attempt to look at, you know, minimal rate increases for our residents this financial year? Does that impact what we're going to pass on to our rate payers?

03:47:00 That's where I'm sort of coming from, the trend. Speaker 3: Yeah. And through the Chair, we do do that. So through the budget workshop process with the councillors through the budget, we have gone through every revenue-generating activity in council and ensured at the very least we would keep the same minimum baseline return so that those revenue-generating activities do not do any increase on burden of the general rate. If anything, they reduce the burden on the general rate. So we've done that exercise across all our fees and all our charges to ensure that their return is retained. But also, it's also important to note that our fees and charges should be based on the principles of full-cost pricing and the principles of national competition policy. So if we are charging for a fee, it could be an entrance fee at a pool or an application fee for a building project. If we are charging for a permit, we can only price to what would be considered a competitive

03:48:00 market price or what is the full-cost price of doing that service to do otherwise puts us in breach of national competition policy. Councillor Jurisevic: If we were to not budget conservatively and stretch those limits at the end of the year, we find ourselves under our estimated budget, that would impact on our cash reserves, would it not? Correct. Speaker 2: Absolutely. Councillor Jurisevic: And that would just be an impact on the rate payer in the following year? Absolutely. Speaker 2: So our financial rating from the GDC. Correct. All the way around. Speaker 1: Yeah, you have a couple of questions. Speaker 2: Any questions? Speaker 6: Yes, I do. Councillor Lorentson: Sorry. In terms of potential risk, are we prepared for an economic downfall? You know, lots of discussions in media about impending recessions. How prepared are we for a downturn? And should that be a real conversation for council, particularly whilst we are in budget deliberations?

03:49:00 Speaker 3: Mr Rutherford, Chair, I think it ties in very well with your previous question in that the biggest risk in an economic downturn for the financial position of council is in those fees and charges. Because an economic downturn where you have a situation where you've got reduced visitor numbers or a reduction in development activity in the Shire, building activity, owner builders, renovations on their houses. People... People taking a weekend to go and stay at Boring Point Campground or people going to the NAC and they might... You still use the NAC, but they may not buy a coffee or buy anything from the cafe that goes with that.

03:50:00 And the same is at the J, the risk might be they might still buy a show, but they may not have some snacks or a drink before or after the show. Those are just elements of discretion. So it's that discretional spend that is the biggest risk. Yep. So it's that discretional spend that is the biggest risk for council during a recession. And hence, when we start build from base, evaluating those fees and charges, we need to find the right balance to ensure that we don't impact the community equity in council negatively by overstretching those fees and charges year on year. Thank you. Speaker 3: Thank you. Councillor Jurisevic: Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Speaker 3: Thank you. Councillor Jurisevic: Thank you.

03:51:00 Thank you. And the second part of my question is how much do we look like delivering in the last quarter? Speaker 5: So we've got $10 million committed currently. We'll push out $8.7 of that, but there's probably about maybe $5 to $10 that we need to catch up. So we should catch up with that with tenders and those things coming through. Councillor Jurisevic: Just acknowledge an outstanding result in extenuating circumstances. Well done. Speaker 1: The team's doing great. Councillor Jurisevic: Well done. Speaker 1: Thank you. Councillor Jurisevic: I don't think there's any other questions, right? Councillor Wegener: Considering a follow-up to those comments, does the person that's going to fill your next director's shoes know that they're going to get into the expectation that they have on them?

03:52:00 Speaker 1: They will. They'll be gone. That's right. It's not filled yet. Actually. Speaker 2: It's literally a big shoes. Speaker 1: No, honestly, it's not me. It's the team that's got things running. And they, you know, the manager level has got their coordinators and everybody else down the line is just doing their job. We've got things running really well. Councillor Jurisevic: Just reiterate something that the questions that Councillor Lorentson related to. I think if you look through the categories in the comments with regard to how elements that are normally above budget or have been above budget traditionally or typically over the years are now starting to drift below year-to-date budget. And some of the areas that we're going to have to really look at carefully for next year, not often you see cemetery fees even drop in there, local laws, revenue services, building fees, and development assessments.

03:53:00 I mean, they are areas for concern and review going forward. So those are the sort of things that we have to look at with regard to that budget, Amelia, and make sure that we do have figures in there that are going to be. That are reflecting the changes that we're seeing, because they typically, I wouldn't imagine if we went back over development assessment over the last five years, I don't think I would have seen it below budget or some of those other ones. Speaker 5: Typically, we do look at historical performance when we set the budgets, but obviously with COVID, there's been obviously an up kick. And with DA, obviously, we probably didn't expect that it would slow quite as quickly as it has, but the planning department do believe there's a few more larger developments coming through, but in terms of timing, we're not sure when that will happen. Councillor Jurisevic: So in our budget deliberations, can we perhaps get a bit of a historical review on where some of these elements have been and where we've seen a fall and see what the trend is on, I don't want to give you more work, but just the trend element of that with regard to how we're estimating for this year going forward, may be very relevant to some of the discussions we have at the budget table.

03:54:00 We already have that, so we can certainly provide it. Very good, thank you. Speaker 3: And we did provide some, but it was probably a bit higher level or condensed version, so being honest, we have lots of details. Councillor Jurisevic: But where the figure alters from last year and the reasons why, and sort of say, well, this is the trend and here's what we've seen this year, and the financial situation that we're in may continue to impact in that way. Thank you. I figured you would, but I just thought, I don't know. That's fine. That's it from me. Speaker 2: Okay. I'll move it. Moved by Joe, seconded by Tom. Joe, you were suspecting? Councillor Jurisevic: No, just again, so shows the sound financial report, the situation that council finds itself in, the amount of work that staff put in to keep us assessed and abreast of the current situation. Some of the trends that we need to be aware of going forward. And the opportunities that do present themselves with regard to some of that additional cash that we have and the interest rates going forward.

03:55:00 So thank you, guys. Speaker 2: Yes. Okay, I put the motion to those in favour. Ms. Kerri, unanimously. Councillor Jurisevic: That was the last item on the agenda. Speaker 2: That is the last item on the agenda. Thank you, everyone, for your patience. Thank you, Pauline, Trent, and our CEO, Larry. Well done. Councillor Jurisevic: Thank you, guys. You're welcome.

8 MEETING CLOSURE ¶

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Council's recording ends before this item. Where a meeting resolved to close its doors, that is what the end of the recording means — see what council discussed in private.