General Committee - 14 April 2025 Transcript

1 DECLARATION OF OPENING ¶

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Nothing was transcribed under this heading — a stretch of the recording with no speech the model could make out.

2 ACKNOWLEDGEMENT OF COUNTRY ¶

▶ 00:00:25

Nothing was transcribed under this heading — a stretch of the recording with no speech the model could make out.

4 CONFIRMATION OF MINUTES ¶

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00:01:00 Mayor Wilkie: Just getting it back. Yeah, good on you. Good to see you on the land, Kerri. Deputy Mayor Stockwell: So we are moving the minutes off the last General Committee meeting. No need for discussion. All those in favour? And councillor Finzel? You're on mute? Yes. Okay, that's carried unanimously. Thank you. Our next item therefore is an item referred, oh, is the deputations. And so that's a deputation from Tourism Noosa in regard to their funding agreement. If Alan Golley, the Chair of the Tourism Noosa Board, if you'd like to stand where you're apparently standing, and you have up to 15 minutes to make your application. Alan Golley: Welcome, Alan. Thank you, Councillor. I'd like to mirror the sentiment of the Chair today and acknowledge the traditional custodians of land that we're meeting upon today, the Kabi Kabi people, and pay my respects to their

6.1 DEPUTATION - TOURISM NOOSA FUNDING AGREEMENT Applicant: Alan Golley, Tourism Noosa Speakers: Alan Golley (Chair Tourism Noosa), Kathleen Swalling (Director Tourism Noosa), Sharon Raguse (CEO Tourism Noosa) ¶

▶ 00:01:34

00:02:00 elders past and present. We recognise their ongoing connection to country, land, water and culture, and we honour their role as the first stewards of this beautiful place we're privileged to call home. Mayor, councillors, CEO, council staff and members of the community here and online. My name is Alan Golley, and I am a Noosa resident and rate payer. I'm General Manager of Seahaven Noosa Resort on Hastings Street, and I love the Noosa community. I dedicate a significant amount of time, my own time and energy, in supporting community organisations. I'm the Secretary of the Hastings Street Association, I'm President of my P&C Association at Cooroy State School, and I'm here today in the capacity as Chair of Tourism Noosa. I'm here representing the 450 businesses and community groups that make up our membership, those that pay rates contributing to Council's operating revenue, and those businesses that understand the critical role Tourism Noosa plays in shaping the economy and the Noosa

00:03:00 brand, both for visitors and for locals. Tourism Noosa was established as a not-for-profit destination marketing organisation, not a private company, not a for-profit marketing firm, and certainly not a political organisation. It was created for the business community to promote the region and to promote the brand. For over two decades we have worked collaboratively with Council, not against it, in the best interests of Noosa. There is no personal benefit to the Board of Volunteers. Its actions are scrutinised by Council, and by local tourism and non-tourism businesses that make up its membership. Tourism Noosa is here, asking the Council to accept the further terms of its membership as part of our current funding and performance deed, honouring their commitment to the business community until the destination management plan is ready and we can renegotiate the terms of the deed. The funding and performance deed heavily emphasised that TN's strategic direction would be guided

00:04:00 by the destination management plan, and that Tourism Noosa would implement relevant aspects of it. With the DMP delayed, TN needs to continue the work of the Council-endorsed four-year destination strategy that we presented two years ago. Originally, Tourism Noosa was funded by a specific tourism and economic levy. This made the link between visitor economy support and business contributions completely transparent. When Council chose to move that levy into general rates, it noted that tourism and economic development activities should be funded by general rates, but applied only to businesses that currently pay the levy. As such, the amount of revenue collected and subsequently spent by the business community on delivering these services to support the tourism and visitor economy will remain unchanged. Clearly understood by the business community that the quantum they contributed, and therefore that was spent on brand management, would not change. Businesses continue to pay these contributions year on year, and they have increased.

00:05:00 There has been no CPI increase to Tourism Noosa's core funding for 10 years. Had CPI been introduced back at the start, over the 10-year period, Tourism Noosa's operating revenue today from Council would be $3.2 million. Over 10 years, that's $3 million in efficiencies that our organisation has had to find. Over the last few years, as businesses' general rates have increased by CPI, those funds have been diverted into economic development activities and helping Council to weather their own inflationary pressures to the budget. We know that tourism is not the only industry in town. It is, however, a significant industry. Arguably the largest. And tourism businesses support many other local businesses within our Shire, engaging their goods and services. This is apparent through an independent study that found 45% of businesses rely on tourism for most of their operating income, and another 30% of businesses rely on it for some of their

00:06:00 operating income. That's 75% of businesses that directly feel the benefits of the visitor economy. These businesses are owned and operated by locals, by rate payers, and they employ many locals to keep their businesses running. But we also need to look at the broader economic climate. I'm sure our residents are already starting to feel the effects of a volatile market. The world is entering a period of financial uncertainty. Indicators of a global recession are appearing. And whether it's consumer sentiment, discretionary spending, or international travel patterns, we are going to feel it. Now is not the time to devalue one of the organisations that has the expertise and agility and credibility to respond to the crisis. We need to respond when economic conditions tighten. The current deed explicitly noted that negotiations for the further term should have been completed by the 31st of December 2024. Council has delayed this process, through reasons we understand, but it's already having real impacts, with Tourism Noosa not able to fully commit to our winter campaign, which

00:07:00 we operate every year, supporting tourism through the quiet winter months, and supporting the Noosa economy over that period. When the global financial crisis hit, during the COVID-19 pandemic, we were unable to When floods, fires, and, like recently, cyclones, have majorly impacted our businesses, Tourism Noosa mobilised quickly to support local businesses, protect our brand, and stimulate the visitor economy. We know that tourism activity in Noosa is not all attributed to what we do at Tourism Noosa. If we didn't exist, people would still come. But the most dangerous thing we can do right now is to devalue the Noosa brand. A premium, nature-based, values-driven brand that took decades to build. Other destinations are actively seeking the same markets that we are. And by failing to invest in that brand, our share of those markets diminishes, we get lower demand from those brands, which means we'll need to bring down accommodation rates to get people through the doors. This will attract more people from those lower value, higher volume markets, they stay less,

00:08:00 they spend less. And there will be increased residential amenity with more of those low value people and less economic stimulation from the visitor economy. This will also impact business investment into the Shire. This is not hype. Tourism is a competitive market, and we must remain on the front of it. We know that Noosa's appeal is built not only in what we offer to visitors, but in what we protect for residents. Tourism Noosa does not aim to increase the volume for volume's sake. Or to push overflow tourism into the hinterland, or actively seek out residential properties to convert into STAs. Quite the opposite, its strategy focuses on high-value, values-aligned visitation. Visitors who stay longer, spend more, and respect the place. We promote tourists staying in Noosa to visit the hinterland, so that they can spread the economic value through the Shire. Our strategy clearly works. Visitation numbers have dropped since the height of 2.5 million people per year in 2015,

00:09:00 to our recent stats showing just below 2 million annual visitors. A drop of 300,000 day-trippers per year, when the population of South East Queensland has actually grown from 3.4 million to 4.1 million. Visitation decreasing by 22%, yet the value of the visitor economy has continued to grow. Creating division in the community and spreading misinformation about our strategy is not in the best interest of the community. Collaboration is key to embracing regenerative tourism. Bringing community, environment, culture, and tourism together towards true stewardship of our destination. We actively bring together stakeholders from across the Shire through regular roundtable meetings with environmental groups, business associations, council staff, and other interest groups. This collaboration ensures that tourism strategies align with shared values, and that actions are informed, transparent, and responsible. Tourism Noosa doesn't view it separately.

00:10:00 Tourism Noosa doesn't view it separately. It is an integral part of the community made up of locals, businesses, parents, volunteers, employees, and advocates. These people all share a deep care for this place, and a genuine commitment to getting the balance right. Now Noosa doesn't need the same level of destination marketing as it did ten year ago or twenty years ago. We acknowledge that. That's exactly why our approach has changed. Today, destination marketing isn't about billboards and mass exposure. It's about targeted engagement. It's about engagement, it's about reputation management, it's about value alignment and it's about education. We're constantly analysing trends, visitor sentiment and community values to ensure that the Noosa brand remains competitive, relevant and reflective of who we are as a Shire. Tourism Noosa's strategic plan places the natural environment as a core value. This isn't lip service, it's measurable, resourced and long term commitment.

00:11:00 We deliver education to visitors on how to travel responsibly. We promote low impact experiences, we have developed campaigns around nature, wildlife protection, sustainable travel behaviours and we've partnered with and run entire campaigns promoting the UNESCO Noosa Biosphere Reserve and are a partner in Noosa Landcare through our Trees for Tourism program which has helped to regenerate koala corridors and marid lands. We've managed erosion in our hinterland. Tourism giving back to the environment. We recognise as a broader business community that the natural environment is our economy. Protecting it isn't just good PR, it's essential. And Tourism Noosa has been leading that conversation in a way that aligns with both Council's values and the wider aspirations of the community. And there is much more work to be done in this space. Tourism Noosa has evolved to meet the moment. It's tightened its budget, it has shifted its strategy, it has collaborated more than ever before. And it has done so whilst being held to increasingly high standards. One that it consistently meets.

00:12:00 We are not here asking for more. We are simply asking that the original agreement be honoured. That the funding continue to a level that reflects the value of the business community it represents until we can renegotiate terms based on the destination management plan. This is not about marketing. It's about brand management. It's about our reputation as a Shire. It's about jobs, families, the future of Noosa as a place to live, work and visit. Thank you for your time today. Thank you. Councillor Wegener: Okay. Deputy Mayor Stockwell: So we move on to section 7. And there's been one item referred from the Planning and Environment Committee. That's MCU 24-0151. Develop an application for material change of use for outdoor sport and recreation rowing club at Lake McDonald Drive, Lake McDonald. And I need to declare a conflict of interest.

7.1 MCU24/0151 DEVELOPMENT APPLICATION FOR MATERIAL CHANGE OF USE FOR OUTDOOR SPORT & RECREATION (ROWING CLUB) AT LAKE MACDONALD DRIVE, LAKE MACDONALD (Referred from Planning and Environment Committee dated 8 April 2025- Item 7.1) ¶

▶ 00:12:49· Carried unanimously 7-0 from council's minutes

00:13:00 I'll just wait for my declarations to come back up. There we go. I wish to inform the meeting I have a terrible conflict of interest in this matter due to my previous work in Lake MacDonald for SEQ water. In 2019, as part of a broader consultancy project that I completed as a sole trader, I undertook land asset classification of the land owned by SEQ water around the Lake MacDonald Dam. This work was at a strategic level and assessed the parcel in question as part of the broader evaluation. The project produced land capability and suitability assessments for various land uses, including

00:14:00 for recreational pursuits, such as that proposed in the application. In 2020, as part of the broader consultancy project, I also undertook a further assessment evaluating suitability of the land around Lake MacDonald for a solar farm. Although I have a declarable conflict of interest, I do not believe a reasonable person could have a perception of bias because I've had no dealings with SEQ water in a private consultancy capacity since that time. Therefore, I will choose to remain in the meeting room, however I respect the decision of the meeting on whether I can remain and participate in the decision. Councillor Phillips: I would like to move that Council note the declarable conflict of interest by Councillor Mayor Wilkie: Stockwell. Decide that in accordance with section 150 ES of the Local Government Act 2009, and having

00:15:00 considered the Council's conflict of interest as described, decided that Councillor Stockwell may participate in voting on this matter. Related to MCU240151, development application lot 1 RP167252, Lake MacDonald Drive. Lake MacDonald, as a reasonable person, will not have a perception of bias as there is no personal gain or loss involved. May we have a seconder for that, please? Speaker 1: Second. Mayor Wilkie: Seconded by Councillor Wilson. Any discussion? Councillor Wegener: All in favour? All in favour? Tom? Just trying to really let it sink in. I didn't see this in the end. So you don't, I mean, you're not mentioning the club. You have no analysis for the rowing club at any time in the past? Deputy Mayor Stockwell: No, nothing site specific like this. That parcel they've been, got the application over was part of the analysis I did around Lake MacDonald, as I did for every other lake dam impoundment on south east Queensland.

00:16:00 It's only because part of that assessment did have a look at the recreational suitability that there was a potential perception that there may, it's just being transparent for the purpose of saying that yes, I have done work as a private individual on this site, but I have no longer any private interests or further dealings with this if you order. Councillor Lorentson: Can I ask a question? Yes. In terms of the 2019 consultancy work that you engaged in, who were you working for? Was it SAQ Water or Noosa Council? SAQ Water. SAQ Water. Thank you. Mayor Wilkie: Any further discussion? I'll put the motion that is in favour. Yes. That's unanimous, noting that Councillor Stockwell did not vote. Deputy Mayor Stockwell: Thank you. So, we've been joined by a number of people.

00:17:00 We've been joined by the Deputy Mayor, the Deputy Mayor, and the Reporting Officer, Nadine Corden. Nadine, are you going to give us an executive summary of this application, please? Speaker 2: I certainly am, afternoon Councillors. This application is for a development application to temporarily relocate the Lake MacDonald rowing club from its current position along Colwood Road to a new location along at the end of Hoy Road, which is on the western side of Lake MacDonald. The move is required due to the proposed dam upgrade and spillway works proposed by SAQ Water. And this application has... The site's been... The applicant is actually SAQ Water. They're undertaking the application. The SAQ Water has liaised with Council officers and the rowing club to find an alternative location from the current site. They had a number of requirements, including access to the lake, but specifically, they had access to the lake when the dam levels had been lowered.

00:18:00 And as a result, in consultation with Council, they have identified this site, which is also owned by SAQ Water. The proposed facility is similar to what's currently located at Colwood Road. It has two containers, a fence compound, a toilet, a car parking area, as well as access to the lake. The use, unfortunately, is not consistent with... With the current environmental management and conservation zone. However, after our consideration and review, we believe it is an acceptable proposal, based on it being a temporary use. The relocation is necessary because of the dam upgrade. It is above the flood line. No vegetation is to be removed. There is car parking on site, and of course, it has access to the lake. Two submissions were received in response to advertising of the proposal. Most of them have been approved. Most of them related to visual impacts, noise, and a bit of traffic and some antisocial behaviour.

00:19:00 Conditions have been imposed to address some of these issues, including colours of materials on site, limitations on the hours of operation, limitations on the number of people, as well as a time limit. Noting that this is only for nine people, so it is a very small club. To reflect the temporary nature of the use. A seven-year sunset clause has been included with the proposal, and this was requested by the applicant based on the construction works and also giving some contingency in case the works aren't completed in time. I do note there is also an administrative error, which was discussed previously. For whatever... For some reason, our computer system doesn't give the site an actual site. So, in the recommendation, we should include at the end of it, the recommendation says,

00:20:00 note the report by the coordinator of planning, etc. We should include the lot in RP, so it should be situated at Lake Macdonald Drive, Lake Macdonald and described as lot one on RP 167252, and that's reflected up in, on the screen. Thank you. Speaker 5: Thank you. Is that the, that we've removed? Councillor Lorentson: That has, that was already moved, I thought. Speaker 5: No, in terms of where it's sitting in the recommendation. Ah. Were you saying it should go to the end? Of the... Speaker 2: I had it at the end. Yeah. At the end of Lake Macdonald and described as... Yeah, yes. Speaker 1: Yeah. Speaker 2: Yeah. Speaker 1: No, just in front of the end. Just in front of the end. And move that lot one. Yeah.

00:21:00 Deputy Mayor Stockwell: Thank you. Described as between McDonald and Loughlin. Speaker 2: Oh yeah, sorry. Yes. Like McDonald. Yeah, go back in front of lot one. Speaker 1: As described as. Described. Described. Okay. Deputy Mayor Stockwell: That's a modified recommendation. Do we have any questions or stuff? No? Do we have anyone who's wishing? Who'd like to move the motion? Councillor Lorentson: I have an amendment that I'd like to move. Deputy Mayor Stockwell: Would you like to move it as the original motion? Councillor Lorentson: I'm happy to do so, yeah. Okay. Councillor Wilson: So, move it as an alternate motion? Councillor Lorentson: I'll move it as an alternate motion.

00:22:00 It's only a minor change. Deputy Mayor Stockwell: Are you happy to include the change that was recommended above? Councillor Lorentson: Yeah, the technical changes, absolutely. I'm happy to move that Council notes the report offer for the Coordinated Planning Team for the Planning and Environment meeting, dated 8th April 2021, to the formal guidance 20-25. Regarding development application MCU 24-0151 for a development permit for material change of use outdoor sport and recreation rowing club situated at Lake McDonald Drive, Lake McDonald as described as lot 1 RP 167252 and a. Approved the application in accordance with the proposed conditions outlined in attachment 1 with

00:23:00 the following amendment to condition 20-20 development approval lapses on 17th of April 2032 or within 12 months following the completion of the second quarter lake mcdonald dam improvement project whichever occurs earlier the approved use must cease operating by this date and all structures um hard stand areas fencing removed within 60 days of the cessation of operations with the site rehabilitated by a, removing all wheat species including declared plants under the biosecurity act 2014 and subordinate regulation 2003 the noosa local government area pest management plan 2015-29

00:24:00 plan in an environment committee meeting report 8th of April 2025 be planting We are documenting the disturbed areas with a species mix and density reflective of the local variation of the regional ecosystem and site-specific conditions. These works must be undertaken by a qualified person and be to the reasonable satisfaction of the manager development assessment. Find the following matters relevant to the assessment and sufficient reason to approve the application. 1. The proposal will enable an existing rowing club to continue to operate while necessary improvements are made to Lake MacDonald Dam and important water supply for South East Queensland. 2. The proposed use is small in scale, requires direct access to the lake, is temporary in nature and potential impacts on the area's ecological and water catchment values have been minimised. And C. Note the report is provided in accordance with section 63.5. of the Planning Act 2016.

00:25:00 Deputy Mayor Stockwell: I'm happy to second but I believe the as after Lake MacDonald should be after described. That should read Lake MacDonald as, described as. Described as. Councillor Lorentson: Lot 1. As lot 1. Speaker 1: Can... Speaker 4: No? Deputy Mayor Stockwell: Yeah, and then as afterwards. Yeah. There you go. Councillor Wilson: Thank you. Councillor Lorentson: The reason that I've just made a minor amendment to the condition is to basically reflect that if the Lake McDonald dam improvement project is completed before the 17th of April 2032 then the use which is the rowing club ceases and the reasons are that it just

00:26:00 provides the adjoining residents with greater certainty regarding the timeline and addresses some of the concerns at the time at the time frame frame might otherwise seem too long and met with the with Nadine and Patrick on this one and they consider that a reasonable amendment I just want to ask a question Councillor Wilson: whether there might be unintended consequences of the whichever occurs earlier because if the works were completed by 2032 which hopefully is not really likely then would they have to move because that's the earlier date Speaker 1: so councillor so essentially they've got yet seven years but if the works are Councillor Wilson: completed soon yeah but this wording says always it

00:27:00 left is on the 20 20 30 20 32 that could be the earlier date only the rowing club isn't actually in control yeah but that mean that we hit that 2032 that works haven't finished and now Speaker 1: they could apply to period I guess if we're at that stage question to Nadine Councillor Lorentson: they have entered into a five-year I think a five-year lease arrangement for the rowing club so after the five years my guess is they need to come to council for to have that renewed is that correct no no sir I'm not sure the Speaker 2: leasing might have to be renewed I'm not sure the leasing might have to be renewed have anything to do with our land use so we're dealing with it we're setting the date 17th of April 20 I understand what you're saying to that have we

00:28:00 Councillor Wilson: given them eight years rather than seven years yes oh that's right then they'll Speaker 2: have to they'll have to come back to us to it that's right so if they're not completed they can come to us and seek an amendment to that condition and we're going to have to do that. Councillor Wilson: we could extend it is it necessary the reason behind it is that they're Speaker 1: anticipating the project which I take between four to five years so I've said can give us seven years just give us a couple of years of contingency we think that's quite you know generous in the extra two years but nonetheless if they stick to their anticipated you know construction time frame of four to five years it should be completed well within that time frame if they do take up to the full seven years and what's not completed we would be working closely with SEQ Water if we need to amend the condition there to address any urgent

00:29:00 issues due to extended construction time frame we consider there being limited Deputy Mayor Stockwell: risk though that they've been forced to move without it given it's SEQ Water and we'll be working closely with them throughout the entire construction project can I just clarify SEQ Water's applicant have they nominated the seven years yes so the application has made requested to 2032 so at the moment that you're saying they can have up to that point but if they've finished earlier. I have a question with this amendment sorry with this motion the change will be made or is it going to be changed? It's going to be changed. It's going to be changed. It's going to be changed. It's Mayor Wilkie: if the the use finishes if they've finished the work on same 17th April 2032 or whenever do they have to have everything removed within 12 months or 60 days

00:30:00 this is a 12-month period given and then there's a 60-day period given 60 days Speaker 1: So the 12-month date is the trigger of when the process to relocate should commence. I guess the 60 days is basically the time frame for them to undertake the works to relocate the equipment. So I guess the 12 months is the commencement of they must now move and then they've got 60 days to actually remove the equipment. And rehabilitate. And rehabilitate the site from once that decision point is made. So either at 17th of April 2032 or 12 months, within 12 months from the date of the works being completed on the Lake MacDonald dam upgrade project.

00:31:00 Deputy Mayor Stockwell: So the first date is the cessation of the use. Yes. The second date is the remediation of the site. So basically the use finishes at the first date and then there's 60 days to clear the site. And condition. Which date it is. Councillor Lorentson: Condition 20 states the approval must cease operating by the date and all structures, hard stand areas, fencing removed within 60 days of cessation of operations. With the site reopened. By within that 12 month period. Deputy Mayor Stockwell: Are you clear there? Mayor Wilkie: Oh, look, I just take on board Councillor Wilson's comments as well. I think it complicates something that was quite clear. But if councils are comfortable with it.

00:32:00 Councillor Lorentson: Can I can I throw back to Nadine. So my. My original wording. Oh, there's a question. Oh, sorry, question. Question, can we use my wording, this is the wording that was provided to me. My wording was this development approval lapses on 17th of April 2032 or earlier if the works are completed ahead of schedule. Speaker 1: It's not definitive. It's not definitive. It needs some certainty with the conditions. Speaker 5: I think whichever occurs earlier. I mean, I think it's okay because the 17th of April 2032 will always be your end date. Mayor Wilkie: So question to Councillor Lorentson, are you happy for it to be amended to say this development approval lapses on 17th of April 2032 or any date that occurs sooner?

00:33:00 That is that your intention? Councillor Lorentson: That's correct. That was but but my wording wasn't definitive enough. But we need to need to just specify a date. Councillor Wilson: Just a follow up question on that. Why would we give them 12 months for an earlier date? If they're not getting 12 months from April 30? Speaker 1: So just gives them time if the project does finish on the anticipated time, like give them time to then make arrangements to. So just gives them time. So it gives them still some contingency, but a smaller amount of contingency than what they're originally planning, which is currently about two years. This is just reducing that contingency to about a 12-month period from what they initially requested. Speaker 5: Maybe it should be within 60 days, because we're giving them 60 days from the 17th of April 2032.

00:34:00 So we just apply a similar time frame from an earlier date. Councillor Lorentson: I'm happy to make the change. So we're removing four points. Deputy Mayor Stockwell: We need the agreement of all councillors, and that would be for the line to read, this development approval lapses on the 17th of April 2032, or within 60 days following the completion of the SDC. Or the Lake McDonnell Dam Improvement Project, whichever occurs earlier. Councillor Lorentson: Nadine, are you happy with the changes? Fantastic, thank you. I agree to that, thank you. Deputy Mayor Stockwell: Councillor Finzel, would you be happy with that change? Councillor Finzel: Look, I'll support it. I do question is it necessary, but happy to support.

00:35:00 Deputy Mayor Stockwell: Councillor Finzel, wait now, I think I've seen other people nodding. Councillor Wegener: Yeah, no, I'll talk a little bit. My question is, I guess it always is a hard day when the project is over. But it's kind of nebulous, because the project, it takes a long time to end, when it's officially over. It's probably a really well and truly done investment, all the roads are done, everything is done. So that's not really an inconvenience for 60 days after everything is true. It's not necessarily because there's no shortage of planning, but you know, it's not going to be rush, there's plenty for it when you know it's going to come. Speaker 2: That's right. Yeah. Deputy Mayor Stockwell: So I believe now that everyone's agreed to that change without an alternative motion. So does anyone else wish to speak to the motion? Councillor Wegener. Councillor Wegener: I would like to ask, really thank the staff for taking the time.

00:36:00 Thank you. Thank you for these nine people, nine avid rowers. Although they're not many, they make up for it in passion for sure. And so thank you for really coming to the party, helping them out with this, which is quite a bit of work. And I'm really happy to see it happen. Congratulations. Thank you. Mr Chair. Deputy Mayor Stockwell: I'm just looking at the, are you just really working it? Correct. Okay, don't look at the screen. Mayor Wilkie: Okay, Mr Chair. I think the key points about this item is that Secwater has requested the club to move. They've told them they can't stay in the current location because of the Dam Improvement Works. So it's a move that's being required by Secwater. They've made good efforts to find an alternative location for their club. There's nine members. The two submissions that came from this proposal, they raised issues of visual amenity.

00:37:00 And traffic and noise. And the conditions that have been imposed address that by requiring the two containers to be painted in muted tones, non-reflective surfaces, restricting events to before 9am and after 3.30pm. Speaker 2: Nothing during the day. Mayor Wilkie: No and no regattas or major events on site. So I think it's a good response. I think it's a very fair and good response by Secwater working with their club. They would like to continue their activity despite the disruption of a major dam upgrade which has to occur. Thank you. Deputy Mayor Stockwell: Thank you. Thank you. Thank you. Thank you. Thank you.

00:38:00 Thank you. Thank you Thank you. Thank you Sorry, there's no talking from the gallery. Okay, welcome Mr Acting Director, Pauline. Pauline, would you like to give us an overview? Or are you giving the Acting Director the chance or the opportunity? Councillor Wegener: Pauline, would you? I'll be going. Speaker 3: Afternoon Councillors. So financial performance for the month of March continues to be positive,

8.1 FINANCIAL PERFORMANCE REPORT – MAR 2025 ¶

▶ 00:38:48· Carried unanimously 7-0 from council's minutes

00:39:00 with operating revenues outperforming forecast, and operating expenditures under budget at this stage of the year. Operating revenue is $2.2 million above budget, which is being driven by $1.7 million in interest revenue, $400,000 from sales of goods and services, $380,000 from other services, revenue sources, and $194,000 from grant programs. This has been offset by a lower than forecast rates revenue of $125,000, and fees and charges of $379,000. Operating expenditure is $202,000 under budget, with employee costs $540,000 under budget. And this is due to staff vacancies, some savings from some work cover premiums, and the forecast salary increases that were to commence in March, which have not yet taken effect, due to the ongoing negotiation of Council's certified agreement. Once that's finalised, and the back pay is approved, those savings will be used to fund those payments.

00:40:00 Insures and services is $585,000 over budget. Civil operations is currently $855,000 over budget. Holiday parks, $137,000. Street lighting, $136,000. And disaster management, $103,000. With at least $30,000 of that relating to our tropical cyclone stand-up. Materials and services are underspent, with waste $130,000 under. Traffic and transport, $86,000. And development assessment, $111,000 underspent. The quarterly legal cost summary has also been included this month, which shows legal and associated costs $90,000 over year-to-date budget, with the majority of this overspend relating to development appeals. Also included is the quarterly consultancy expenditure summary, which shows consultancy $330,000 over year-to-date budget. Some of this overspend is due to the timing of budget, as well as where the project budget was loaded when it was originally adopted.

00:41:00 For instance, some may have been loaded against contract services rather than consultancy, but the spend was ultimately consultancy. It should be noted that these summaries only include operational consultancy costs, they do not include any consultancy costs that relate to our capital project program. I'd like to remind you that general consultancy costs relate to a lot of specialised services, and the economy is dependent on the nature and size of the projects that are being undertaken by Council at any point in time. Finance costs are $203,000 under budget, and this is due to the deferral of borrowings that we had flagged for Waste Capital Works. Overall Council's year-to-date operating position at March is $2.4 million above budget, and this will be utilised to fund any emergent expenditure through to June 2025. Capital revenue is $9.9 million above budget, and that's due to the timing of receipts from DRA disaster funding and SEQ TSP funding. Capital expenditure is behind budget, $48.6 million year-to-date,

00:42:00 $35 million relating to disaster projects, and $13 million relating to Council's projects. I'd like to bring Council's attention to a typo on page 31. It should read $120.9 million in cash, not $12.09 million in cash. The Council is currently holding $120.9 million in cash, with the second biannual rates run occurring in January. We are therefore coming off the second cash peak of the year, and this will diminish through to 30 June, as business as usual occurs and the capital program is delivered. This month's report also includes the quarterly dissection of cash holdings, which shows $46.4 million in restricted funds, $15.3 million relating to capital projects which are yet to be delivered, $29 million equivalent to three months' cash cover to ensure Council can meet its financial sustainability requirements, and $6.9 million in unrestricted cash,

00:43:00 which is the cash that's available to fund emergent or new capital works, and allows Council to leverage its grant funding opportunities by funding any co-contributions. Overall, Council's financial performance remains on track, subject to any emergent issues that may arise between now and the end of financial year. Deputy Mayor Stockwell: Thank you. Questions? Councillor Lorentson: Councillor Lorentson. In terms of consultancy spending, costs are $330,100 over budget, and we've budgeted $2.8 million. $2.1 million annual budget for consultancy costs. How are we using... To me, that's a lot of money for consultants, and I'm wondering how are we using this information in order to guide training and professional development initiatives?

00:44:00 I note that we are on budget with our training and development. Does the... Do we do a deep dive with our consultancy and identify talent gaps? What expertise is missing? What talent are we needing in Council? Because I just can't see this being sustainable. We cannot be spending $2.1 million per annum on consultancy fees. Sure. Speaker 3: So, in terms of consultancy, we use a lot of different consultancies, it's not just one consultant. There can be up to 100 different consultancies that comprise that number. A lot of this year relates to the housing at Cooroy, so that project that's happening at Lake MacDonald, as well as the investment in ICT. So, there's the migration from SharePoint, there's a few other different projects that are occurring in this financial year that relate to that consultancy. There's also the car parking management plan, which is investing in consultancy. They're probably a year to date, the bigger, bigger spends that we've had. In terms of your question around

00:45:00 do we do a comparison to identify training gaps, that's not something formally that we would do, but obviously we're aware in terms of what consultants we're engaging. It's not always, I suppose, financially beneficial for Council to necessarily have a specific staff member who's only doing a certain type of work. That's why we would use a consultant to complement a project that we might be delivering. It's not something we may need ongoing. It may be just a piece of work that needs to be completed. But certainly there might be instances where it might flag that there is a training gap or a skills gap. Councillor Lorentson: Thank you, Pauline. Thank you. Deputy Mayor Stockwell: In the summary of our business activity, for Holiday Park, you talk about a variance of 100,000, and when you get down to the detail table, it talks of about 48,000. Is that rounding, or is that a typo, if you look at that?

00:46:00 If you look at sales figures down in the table. Sales of goods and services is... Do we have a table? Speaker 3: Yes. Deputy Mayor Stockwell: And then sales of goods and services we don't get, is it three of 16? You talk about 44.8 above budget. Speaker 3: I would say it's probably a typo. Let me just go to my notes. So, are you referring to pay, and what the patient's on? Just so I'm clear. Deputy Mayor Stockwell: So, at the top we've got a table that just compares white stain... Yeah. Speaker 3: ...and holiday parks, and then... That's right, yeah. So, in terms of the business unit activity at the top. Yeah. It's just rounding. Deputy Mayor Stockwell: Just rounding. Councillor Wegener: Yes, correct. Speaker 3: Yeah.

00:47:00 Sorry. Councillor Wegener: We didn't pick our time. A question about the development assessment bullet. That seems to be a pretty substantial draw. And of course, I was, you know, wondering if that really, the team leads are, is that where we're going with the lower development assessments? Yeah. Speaker 3: I think, as we've discussed at council before, it's dependent on the timing and what applications are coming in at any point in time. We do have some bigger applications that are currently being, that we've received funding last year for that we haven't unwound, because the progress of those projects have not been completed. But yes, I think, as I think Richard may have mentioned last time, they have seen a reduction, but that doesn't mean to say that there may not be some coming through into the future. Councillor Wegener: That's a great question. Yeah. With the low budget, I find that interesting, in that with the new camera, you know, the license plate camera, it seems that there's a lot of improvements coming in, but it still could affect the low budget.

00:48:00 Is there something else happening? Speaker 3: It could be related. I know that there's some underspend, so that would be feeding into the local laws. I'm also aware that obviously we would forecast what REM we expected through the camera car, so maybe it was a slightly higher forecast than we actually anticipated. I know we've had some issues with the car, so it hasn't been on the road as much as we may have liked it to be. Councillor Wegener: The last question is that financial assistance grant of $7.1 billion, and you mentioned that it might be pushed out six months in the budget, meaning that we get it usually pre-budget and then we get it. That's quite a big shift that you've had. I love that you've swallowed for a half a year. Correct. Speaker 3: So it's simply a tiny and usually a matter of days, which is a little bit annoying, I suppose. We should have received it before 30 June. We received it in early July. So in terms of operational for council, it's really a few days in terms of cash flow. I suppose the more important point in some of that commentary is that our amount that we've been allocated has been reduced.

00:49:00 So I think it was about 2.1, but it's not 2.1 now. It's about $400,000, $500,000 less than that. So we've seen that decrease in revenue from our financial assistance grant, which is the amount that council would need to find. Councillor Phillips: Question around the local laws. Thanks for commenting that. When an infringement gets referred to SPUR, can you clarify whether or not we see the funds and then SPUR followed up? Or will you wait to SPUR? Speaker 3: Sure. So they will be followed up by council. So with the infringement issued, the revenue would be recognised. They will follow up with reminders. And after a period of time, it then gets referred to SPUR. SPUR would then collect those funds and pays that money back and we pay off the debt that's owed to us as council. Councillor Phillips: That's awesome. So how can you tell me, or it might be for another time, just how much is from SPUR that we're waiting for?

00:50:00 Speaker 3: Can I come back to you? I'll take it on notice and I'll come back to you. Councillor Lorentson: In terms of local laws, and I'm just wondering, does the current industrial activity, has that impacted on delivery of services? This report's up till March. Up till March. So that's outside. Speaker 4: It hasn't been affected at this point. Fantastic. Thank you. Speaker 3: There has, I just would like to note, there has been a check from Tropical Cyclone Albert with the closure of the holiday park. So there's been some closure from that specific thing in this report, but not necessarily... Councillor Lorentson: From the industrial action. Yeah. Okay. Thank you. Any more questions? Deputy Mayor Stockwell: Yep. Any more? Councillor Lorentson: Where are we currently with the Tourism NUSA funding agreement? And when should we expect to see a report presented to Council? Question to the CEO. Deputy Mayor Stockwell: Is that relevant to a monthly report? I would say it's not a relevant question.

00:51:00 Councillor Lorentson: It's, we have a Tourism NUSA, an economic development investment summary reported in our report. I think it's relevant. Speaker 3: All I can comment in that regard is that I am aware that the agreement finishes in June. And that we pay both instalments for this financial year. I haven't been involved in the negotiation yet. So I can comment on that. Councillor Lorentson: Thank you very much. So I can, if you want some more data. Speaker 4: Thank you. Yes. Obviously, we're still in negotiation with Tourism NUSA. We have the dedication today. So there's still more to come. That will come to a picture here in the next month or so. Mayor Wilkie: I have a question, Mr Chair. There's a term there, only a refreshing one. What is it? Plant recharge revenue. What is that? Speaker 3: So that's, so we have our fleet of cars, trucks, yellow plant. And we calculate the cost of utilization of that plant. And we charge internal charges around the organisation. Some of that will be operational, which will flow through the profit and loss.

00:52:00 Some of that will be on capital projects, which we're allowed to do. So when we're constructing maybe a road or a bridge, or working on career projects, and they're using our plant, that's being capitalised to those projects, which wouldn't show in these numbers. In an ideal world, that loss, you know, is well set. Equally, there's nothing being charged in capital. Okay. Thank you. Mayor Wilkie: The other one is probably a question for the CEO. The training expenditure is ahead of budget, which is good. Can you talk a bit about the sort of training the staff are undertaking? Speaker 4: It's a very broad scope. There's obligatory training. There's very general training that we need to do. There's also training that we offer to staff for their own self-development and more development in line with our needs as an organisation. So it's very, very broad. We've probably been a little bit, whilst we've been doing the obligatory training and all of that, some of the other training needs of the organisation have probably been a little bit haphazard. So we've been very conscious of trying to make sure that we up that ante over the last

00:53:00 12 to 18 months. And that's reflected in our budgets now that we're actually spending far more of our budget in training, because that's a key piece that we believe, again, in terms of all the issues, all the things that we've got driving our workforce. And I think training is a big piece of that. So we've made a conscious effort to increase our ability and our amount of training that we provide for our staff. Thank you. Mayor Wilkie: Well, the other question I had was 4.9 million in interest and 1.2 million budgeted. How much longer are interest rates predicted to stay at the same level? Has there been any forecasting done? Speaker 3: So at the moment, the forecast, well, the expectation is that we're going to have a few rate cuts coming through May and June, which will see the interest rate fall off. So obviously, whatever we hold in cash, that will come down.

00:54:00 We had forecast our interest rates when we developed the budget at a much lower 3% to 4%. So we're still receiving interest above that at this term of time, particularly when we've got investments in term deposits that we've locked in closer to 5% at this stage. Speaker 4: And we're ahead. Sorry. Yeah. I'd also say that Corley has been doing a fantastic job of moving that money around and making sure that we do get the best. Maximise the returns. Absolutely. You're doing a great job. Mayor Wilkie: Yes. That's it for the time being. Councillor Phillips: A question maybe to the CEO, Ari, around fleet management. Can I see a breakdown in mechanical costs of our fleet? And maybe, and the reason I'm asking, I mean, whether it's considered in-house mechanical targets like this? Speaker 4: I believe we used to have that. But that's sort of, most councils have moved away from that over time because of the, we don't have a huge amount of fleet either. So to have that specific skill within our organisation, it's best to outsource those

00:55:00 things. But yeah, we can, I can provide a workshop or a briefing for you with some of those numbers for you. That's interesting. Councillor Phillips: I'd be really interested, because I know that there was a time when we had it brought back to outsourcing, but it'd be timely to recheck that that's still, I feel, the most efficient. Speaker 4: We'll do some in general, but not all. Okay. It's just a bigger, bigger deal. Deputy Mayor Stockwell: Yeah, it's definitely responsible. We've got mechanical engineers on staff. Speaker 3: Can I just comment? There's also a matter of warranty. So we need to be making sure that we maintain our warranties as well. It's changed a lot over the years. Thanks. Deputy Mayor Stockwell: Would someone like to move? No. No. I have a small question. Councillor Lorentson: No, I'm just expecting. In terms of legal costs, industrial relations advice, year to date, $9,285. I understand, and correct me, Council is a member with PEEC's legal and workforce team. Is the advice provided by PEEC services, is that free?

00:56:00 And if so, industrial relations advice at $9,285, what's that in relation to? Speaker 4: No. PEEC is not approved. Councillor Lorentson: It's not. Is it a membership or we pay for the services? Speaker 4: We pay for it. We pay for the services. Okay. So that's what that fee is. Councillor Lorentson: That's what that is. Yeah. Speaker 4: Okay. Councillor Lorentson: Thank you very much. And our in-house lawyer is not here. Maybe a question I can take offline, but what are her main challenges or what's keeping her up at night? Speaker 4: That would be excellent. Councillor Lorentson: Thank you. Speaker 4: Thank you. Deputy Mayor Stockwell: Okay. Is that all the questions we have? Councillor Lorentson: No, I have a few more. Thank you. Deputy Mayor Stockwell: Okay. Councillor Lorentson: Employment. Employee costs. We're budgeted at $53.1 million, and I think I've asked her this a few times.

00:57:00 How does that number compare to employee costs over the last, say, four or five years, Pauline? And can we also have maybe a breakdown of indoor versus outdoor staff? I just would love to know, is this exponentially higher than this time last year or the year before? And what factors are contributing to these high costs? And what percentage does this represent in terms of overall operating costs? And are we working to benchmarks, other local government benchmarks in terms of employee costs? Speaker 3: Okay. So just to refer you to the profit and loss, I have this month actually included the actual year to date for you. Councillor Lorentson: Thank you. Speaker 3: Because you requested that very easily. Councillor Lorentson: I did request it. Thank you. I've just got the report. Speaker 3: In terms of the percentage of overall costs for the current budget, employee costs comprise 37% of our total expenditure budget. I don't have year-on-year comparison, so I can't give you that today.

00:58:00 Councillor Lorentson: That's all right. And 37%, I think, in one of our reports, 37% is slightly higher than other local government thresholds. Speaker 3: It depends on the size of the council. There are smaller council. Councillor Lorentson: It's hard to... Yeah. Okay. Speaker 4: There's a relatively distributed... Speaker 3: Some councils are sitting at 40%. Councillor Lorentson: At 40%. Okay. It'd be great to have that information also. Thank you. Offline, I can send you an email. You can go to the budget workshops if you'd like. Budget workshop. Excellent. Great place. Thank you. Cash reserves. Thank you for the breakdown and great explanation. Always an excellent report. And anyone that's watching online, the report's really simple and graphically easy to follow. The 120.9, and this is a question that gets asked a lot by residents, given that councils has low debt levels and strong cash holdings, and I understand that there's restricted,

00:59:00 unrestricted funds, et cetera, again, it's in the report. Can we use our reserves to reduce rates for residents, and is that something we can discuss as part of our budget deliberations? Speaker 4: That's something we can discuss as budget deliberations, but again, as a sustainable organisation, we need to make sure that we've got money for the unknowns. So that's essentially what that money's there. It's not a huge amount of money, but it's available to us in its own... We've got $21 million there, but again, that's all committed to keep us, to meet our obligations, to meet our purgatory or our legislative obligations as well. So there's a small amount there. But as soon as you start, and we have over the years, we've used that money for various cost overruns in some of the projects or whatever it may be that we're undertaking. And that's a decision that council makes.

01:00:00 But I would be very careful that we don't cut ourselves too short. And that's something that we need to find in terms of what money we've got available for the rainy day, or the things that we don't know that are ahead of us. Mayor Wilkie: Mr Chair, if I can say, it's usually considered prudent financial practice not to use... Deputy Mayor Stockwell: Mr Mayor, are you going to make the motion so you can talk to... I'll move the motion. I'll move Councillor Wilkie. Mayor Wilkie: I'll second it. Thank you. I was just going to say it's considered prudent financial practice not to use surplus or cash reserves for ongoing operational expenses, because they need to be funded every year. They're really great for one-off projects, capital projects and so on and so forth. I'd just like to echo the sentiment of the other councillors about the detail provided in these financial reports. The graphics are excellent. They're broken down, very simple to understand. We're always willing to... We're always willing to answer any questions. Thank you, and thanks for your work, both of you.

01:01:00 Speaker 4: Any other questions to talk? Councillor Lorentson. Councillor Lorentson: Just one last question. Speaker 4: I'm sorry, Alan. Deputy Mayor Stockwell: I see that. Well, I'll let you have your last one, and we'll go to you next. Sorry, Councillor Biddle. Didn't see the hand up. Councillor Lorentson: Under risk and opportunities... Councillor Finzel: Thank you, Mr Chair. Councillor Lorentson: Under risk and opportunities, I note that cyber theft is not mentioned. Is it considered a risk for council? Speaker 3: It isn't. It's been dropped off this report. It was on the original previous report. So, yes, it is a risk for council, as it is for any other council in terms of cyber activity that occurs around... The increase in cyber activity that occurs around... Councillor Lorentson: And does council have a say in that? Does council have a duty to report any cyber theft? And if so, where is that reported? Speaker 3: So, it would be reported to our insurers.

01:02:00 It would be reported to our councillors. It would be reported to our auditors if that was to occur. It would... Depending on the type of fraud or breach that it was, it would be reported to the Ombudsman for information. Councillor Lorentson: Thank you. That's all. Thank you very much. Councillor Fizzles. Councillor Finzel: Thank you. Just a question through the Chair and the CEO. Given funds are expended for staff training, can you explain how that is then negotiated through the MBAs for those pay classifications to then reflect that training? Speaker 4: I don't think it actually doesn't necessarily reflect that training. It doesn't necessarily fit into our CA or EBA, but because training is offered to all levels of staff, for either their obligatory and designated training, if they're required to

01:03:00 do their jobs, but also for further training, it's something that's negotiated with their managers or their coordinators and managers and directors directly, if it's something that they're required. And we do an annual assessment of those with the staff so that we can provide the necessary training and or additional training that may be required. Councillor Finzel: Thank you. So following on from that, how then are the specific classification and pay rates argued through your EBA if it's not through the staff training? Speaker 4: Sorry. I'm not too sure I understand that question, Councillor. Councillor Finzel: Well, if the pay classifications are not determined by staff training to align with pay classifications, then how is that determined?

01:04:00 Speaker 3: So, within the Certified Agreement, there is actually a stipulation of the different levels and types of work that those roles perform, and that dictates what level that role is. That has been benchmarked using MRSA. And we're going to use MRSA to determine a level and make a... that aligns to our pay rates. Councillor Finzel: Thank you for the clarification. Speaker 3: Okay. Deputy Mayor Stockwell: Thanks for the informative report. The biggest variation, which no one has mentioned so far, is obviously capital expenditure. And I thought, wow, 44% sounds a lot. So I went back and I looked and we know that there's a lot of capital expenditure in the We didn't have a March report last year because there was a pesky thing called an election. But in April, the figures post-April was 51 million. That led to the record of 71 million. The year before, it was only 79 million, which was a record at the time again. And it makes you think about in 2016, 2020, we thought a sustainable capital works budget

01:05:00 was between 25 and 30. If you had the cost price index, that's probably 35 to 40 now. But there is a huge body of work to be done. And with the level of weather disruption we've had this year, even though there's a large variance, it's a perfectly understandable variance. And it's likely that we still end the financial year, once again, breaking a record for the amount of on-ground works done by council. So it's... Yeah, it is interesting to think longitudinally where we've got to. And hopefully we don't have any more disaster funding to do in the future. I think it's a good idea to expand after this current lot has been finished and finalised, because it would mean that we have a bit of smooth sailing in this organisation. Mayor Wilkie: I have one more question. You did mention that the impact of the cyclone had an impact on the holiday parks in terms

01:06:00 of the revenue generated. Forgive me if it's in there, were there any other impacts on revenue as a result of cyclone Alfred? Speaker 3: Not specifically. Not specifically. I think it was the There would have been some very revenue impact. But there was also costs... Quaternary? Not to the substantial extent, but there were cost implications as well from the works that we undertook in terms of sandbagging and those sorts of things that we may or may not recover from the curing. Yeah, okay. Deputy Mayor Stockwell: And there may be some increase in revenue from waste disposal. Yeah. Which would lead to a little very busy at the resource recovery centre. Does anyone else wish to talk to the motion? Councillor Wilkie, do you wish to close? No, thank you, Mr Chair. I'll put the motion. Those in favour? Councillor Finzel: Yes. Deputy Mayor Stockwell: That's unanimous. Thank you, councillors. I'll call the meeting to a close at 1.37pm. Thank you all. Thank you, Mr Chair.

10 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.