Before the first item ¶
00:00:00 Mayor Wilkie: Good morning everybody and welcome to the ordinary meeting of Thursday 21st of May 2026. I declare the meeting open at 10.01am. I acknowledge that we are meeting on the traditional lands and waters of the Kabi Kabi people and I pay my respects to Elders past, present and emerging and reiterate their recognition of each and every one of us as joint custodians, respecting and caring for this beautiful place that we all love, respecting and caring for each other. We have an apology from Councillor Brian Stockwell. All other councillors are in attendance, noting that Councillor Wilson is attending
1 DECLARATION OF OPENING ¶
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2 ACKNOWLEDGEMENT OF COUNTRY ¶
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3 ATTENDANCE & APOLOGIES ¶
00:01:00 via Microsoft Teams. Just checking. Councillor Wilson, can you hear us okay? I can, thank you. And we can hear you, thank you. Item 4 is confirmation of the minutes. May I have a mover and a seconder for the minutes of the ordinary meeting held on 16th of April. Second Councillor Lorentson, second Councillor Wegener. All in favour? Carried unanimously. Councillor Wilson? Yes. Thank you. We have no petitions. There are no presentations. We have no deputations. We have no submissions to public question time. There are no mayoral minutes. We have no notified motions. That brings us to consideration of committee recommendations. 11.1 was the child safeguarding policy. 11.2 one school street Pomona proposed transfer of tenure. 11.3 commercial high use permits, tender assessment and consequential policy amendment. Councillor Lorentson, I believe you have a conflict of Councillor Lorentson: interest. Would you like to be clear? I do. Thank you. Sally?
4 CONFIRMATION OF MINUTES ¶
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4.1 CONFIRMATION OF MINUTES ORDINARY MEETING 16 APRIL 2026 ¶
00:02:00 Sorry, I've got it on my screen. It's okay. In accordance with Chapter 5B of the Local Government Act 2009, I inform the meeting that I have a declarable conflict of interest for item 7.3 commercial high use permits, tender assessment N25153 and consequential policy amendment on this agenda. As my children have previously worked over 12 months ago for Dean Brady who was an applicant in the upcoming commercial high use tender process and my children are also members of Noosa Board Writers Association and Club where they are coached by Dean Brady. As a result of my conflict of interest and as a result of my conflict of interest and in the interest of
10 NOTIFIED MOTIONS ¶
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11.3 COMMERCIAL HIGH USE PERMITS - TENDER ASSESSMENT (CN25153) AND CONSEQUENTIAL POLICY AMENDMENT ¶
00:03:00 exercising abundance of caution, I will now leave the meeting room while the matter is considered and voted on. That was the actual wording from the general meeting. Thank you. Mayor Wilkie: Okay, there's just one typo there. Okay, thank you. Now we have a mover and seconder for the committee recommendation piece. Move Councillor Phillips, seconder Councillor Finzel. Any discussion? No. All in favour? Councillor Wilson? Yes. Thank you, that's carried. Can we have Councillor Lorentson back to the meeting please?
00:04:00 Item 11.4 is audit and risk committee membership. 11.5 is the capital program 2025 delivery status report for noting. I have a conflict of interest to declare on this item. I, Councillor Wilkie, inform the meeting that I have a prescribed conflict of interest in this matter as my mother who donated $5,000 to my election campaign lives in a street adjoining Lorikeet Drive, which is the subject of the Active Streets project, which is mentioned in this report for noting. As a result of my conflict of interest, I will now leave the meeting room while the matter is considered Speaker 4: and voted upon. Councillor Phillips. Thank you.
11.4 AUDIT AND RISK COMMITTEE MEMBERSHIP ¶
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11.5 CAPITAL PROGRAM 2025-2026 DELIVERY STATUS REPORT ¶
00:05:00 Councillor Phillips: In accordance with Chapter 5B of the Local Government Act 2009, I, Councillor Phillips, inform the meeting that I have a prescribed conflict of interest in this matter as I am the general manager of Cooroy Gymnastics Club, who I mentioned in this report. As a result of my conflict of interest, I will now leave the meeting room while the matter is considered and voted on. Thank you. Speaker 4: Okay, so as the Deputy Chair is absent today, we will need to vote in a new chair due to Councillor Wilkie's declaration. Would somebody like to please move a motion to Speaker 3: nominate a chair? I move that that Amelia takes the chair. Speaker 4: Okay, can I put that to the vote? Councillor Wilson on the line. Do the vote, all in favour?
00:06:00 Councillor Wilson? Mayor Wilkie: Yes. Speaker 4: Okay, Councillor Lorentson, can you take the chair? Councillor Lorentson: So I'd just like to move the current item, which is the Capital Program 2025-2026 Delivery Status Report. Can I have a mover and a seconder, please? Happy to move. Thank you, Councillor Finzel. Councillor Wegener: I'll second. Councillor Lorentson: Thank you, Councillor Tom. I'll put that to the vote. All in favour, noting that both Councillor... Yes. Thank you, Councillor Nicolau. That's in favour, Councillor Finzel, Councillor Wegener and Councillor Wilkie, noting that Councillor... Sorry, Councillor... Yes, sorry, we'd like to fix that. Councillor Phillips: Thank you. Councillor Lorentson: Noting that vote, Councillor Jess Phillips and Frank Wilkie are not voting.
00:07:00 I will now request that both Councillor Wilkie and Councillor Phillips return to the room. Thank you. Thank you. Mayor Wilkie: Thank you, everyone. We return to item 11.6 of the General Committee Recommendation, which is the Operational Plan 2025-26, Councillor Phillips. Councillor Phillips: In accordance with Chapter 5B of the Local Government Act, Councillor Phillips informed the meeting that I have prescribed conflict of interest in this matter as I am the General Manager of Cooroy Gymnastics Club, who I mentioned in this report, and as a result of my conflict of interest, I will now leave the meeting room while the matter is considered. Mayor Wilkie: Thank you. Thank you.
11.6 OPERATIONAL PLAN 2025-2026 Q3 QUARTERLY REPORTING ¶
00:08:00 May we have a mover and a seconder for the Committee Recommendation, please. Councillor Finzel: Happy to move. Mayor Wilkie: I move. Councillor Finzel, quick off the mark, and Councillor Wilson seconded. All in favour? That's carried. Yes. Unanimously. May we have Councillor Phillips back in the meeting room, please. Thank you. 11.7 is Planning Applications Decided by Delegated Authority for the month of March 2026, 11.8 is Consolidated Community Engagement Program Feedback 2025-26, 11.9 is Confidential Not for Public Release Contract Award Report, Contract Number CN25203 for construction of the Changing Places Facility of Gympie Terrace, 11.10 a Confidential Not for Public Release Contract Award Report for the Doonella Bridge Renewal Project, 11.11 was another confidential item referred to the Ordinary Meeting for further consideration. We'll deal with that later.
11.7 PLANNING APPLICATIONS DECIDED BY DELEGATED AUTHORITY – MARCH 2026 ¶
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11.8 CONSOLIDATED COMMUNITY ENGAGEMENT PROGRAM FEEDBACK 2025-2026 ¶
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11.9 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - CONTRACT AWARD REPORT - CONTRACT NO. CN25203 - CONSTRUCTION OF CHANGING PLACES FACILITY - GYMPIE TERRACE ¶
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11.10 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - CONTRACT AWARD REPORT - CN25107 DOONELLA BRIDGE RENEWAL ¶
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11.11 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - PLANNING & ENVIRONMENT COURT APPEAL 2611 OF 2024 - APPLICATION FOR A MATERIAL CHANGE OF USE FOR MULTIPLE DWELLINGS (4 X SMALL DWELLINGS) AND FOOD AND DRINK OUTLETS (2 X TENANCIES) AND OFFICE AT 2 BOTTLEBRUSH AVENUE, NOOSA HEADS ¶
00:09:00 11.12 Confidential Not for Public Release Planning and Environment Court Appeal 2697 of 2025, Application for a Material Change of Use for a Dwelling House at 4 Arakoon Crescent, Sunshine Beach. 11.13 is Confidential Not for Public Release Planning and Environment Court Appeal 2698 of 2025, Application for a Material Change of Use for a Dwelling House at 6 Arakoon Crescent, Sunshine Beach. We now go to reports referred from the General Committee. We have one report referred, it is a confidential matter, not for public release. The Planning and Environment Court Appeal 2611 of 2024, which involves an application for a material change of use for multiple dwellings, that's four small dwellings, and food and drink outlets, two tenancies and office at 2 Bottle Brush Avenue, Noosa Heads, referred from the General Committee meeting dated 12 May 2026.
11.12 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - PLANNING & ENVIRONMENT COURT APPEAL 2697 of 2025 - APPLICATION FOR A MATERIAL CHANGE OF USE FOR A DWELLING HOUSE 4 ARAKOON CRES, SUNSHINE BEACH ¶
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11.13 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - PLANNING & ENVIRONMENT COURT APPEAL 2698 of 2025 - APPLICATION FOR A MATERIAL CHANGE OF USE FOR DWELLING HOUSE AT 6 ARAKOON CRES, SUNSHINE BEACH ¶
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11.14 GENERAL COMMITTEE RECOMMENDATIONS ENBLOC ¶
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12 REPORTS REFERRED FROM THE GENERAL COMMITTEE ¶
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12.1 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - PLANNING & ENVIRONMENT COURT APPEAL 2611 OF 2024 - APPLICATION FOR A MATERIAL CHANGE OF USE FOR MULTIPLE DWELLINGS (4 X SMALL DWELLINGS) AND FOOD AND DRINK OUTLETS (2 X TENANCIES) AND OFFICE AT 2 BOTTLEBRUSH AVENUE, NOOSA HEADS (Referred from General Committee Meeting dated 12 May 2026 Item 9.3) ¶
00:10:00 Item 9.3. This is a confidential item, so we'll need to move into confidential session, so I'll move that the meeting be closed to the public pursuant to Section 254J. 3E. of the Local Government Regulation 2012 for the purpose of discussing legal advice relating to an appeal in the Planning and Environment Court in relation to Item 9.3.
00:11:00 Planning and Environment Court Appeal 2611 of 2024, Application for a Material Change of Use for multiple dwellings, four small dwellings, and food and drink outlets, two tenancies and office at 2 Bottle Brush Avenue, Noosa Heads, referred from the General Committee meeting dated 12 May 2026. The Planning and Environment Court Appeal 2611 of 2014, Application for a Material Change of Use for multiple dwellings, four small dwellings, and food and drink outlets, two tenancies and office at 2 Bottle Brush Avenue, Noosa Heads. May I have a seconder please? Okay. Councillor Wegener all in favour? That's unanimous. So we're moving to confidential session now. Okay, thank you.
00:25:00 Thank you. We'll wait for the members of the public who would like to come back in.
00:26:00 Welcome back, everybody. We now have a motion before us. Speaker 5: We have the amended motion coming up. Mayor Wilkie: Right. We have someone who would like to move to the motion, please. Councillor Lorentson. Councillor Lorentson: Thanks. I'm happy to move the amended motion, and it reads 12.1, confidential lot for public planning environment. Court appeal 26-11 of 2024, application for an MCU for multiple dwellings, four by small dwellings and food and drink outlets, two tenancies, and opposite to Bottle Brush Avenue, New St. Heats. Council, note the report by the manager, development assessment to the general meeting dated 12th of May, 2026, regarding planning and environment court appeal 26-11 of 2024 and A,
00:27:00 agreed to settle the appeal generally in accordance with the proposed conditions outlined in attachment one, and amended to require one, the deletion of all wording on the breeze block wall and the building facade from the plans with any future signage to comply with Council's local law. Two, the provision of landscape, vine plantings within natural deep soil areas comprising species and soil volumes sufficient to support sustained and vigorous growth to effectively soften the visual presentation of the breeze block blade wall. The design is to incorporate all necessary trellis and structural support systems to facilitate establishment and ongoing performance of the plannings ensuring the achievement of a cohesive and durable landscape screening outcome. And three, the inclusion of a property note informing future unit owners that they are located adjacent to a hospitality precinct, which may entail late night live music and patron noise.
00:28:00 And B, agreed to enter into an infrastructure agreement for the contributions in lieu of parking one space. Mayor Wilkie: May we have a seconder for that, please? Seconder, Councillor Phillips, Councillor Lorentson, and you wish to speak to the motion? Right. Okay. Councillor Wegener: Now, Councillor Wegener? I'd just like to give a quick congratulations to the staff, Richard MacGillivray, and Patrick Murphy for the anticipated mediated outcomes to this court appeal and others coming up this month, and they've just done fantastic work. Much appreciation, that saves us a lot of court fees as well, and maintains our plan. Mayor Wilkie: Thank you. The councillors wish to speak to the motion. I'll put it to the vote. Those in favour? Aye. Speaker 1: Yes. Mayor Wilkie: That's unanimous. Brings us to item 13, ordinary meeting reports, and 13.1 is the financial performance report for April 2026.
00:29:00 We have financial services manager, Zach Morton-Adair, and acting corporate services director, Margaret Gatt, here for this report. Welcome, Margaret and Zach. Speaker 2: Good morning, councillors. Please present your report. Good morning. I'll just hand it straight over to Zach to take a seat. Speaker 5: Thank you, good morning, councillors. I will take a report as read. The April report provides us 10 months of the 12 months, or 83% of our financial year in actual data. There are no material changes to the identified financial risks to our forecasted position at the end of 30 June 2026. There are a number of items noted in the report, which we are monitoring closely. As noted in the report, as at 30 April 2026, councillors reported a favourable operating result of $3.2 million, compared to $3.5 million in March 2026, with a further $6.4 million from capital funding sources.
13 ORDINARY MEETING REPORTS ¶
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13.1 FINANCIAL PERFORMANCE REPORT APRIL 2026 ¶
00:30:00 This results in a net variance to budget of $9.6 million, which compared to $9.7 million in March 2026. My comments will focus on the headline results, the Capital Works Programme, and cash and risk outlooks. Rather than detailed workings of the attachments. In doing so, I would like to draw attention to a number of aspects of the report. On the top of page 2, there is a table that highlights the variance of revenue and expenditure line items to budget. The $3.2 million operating variance to budget is comprised of $2.1 million from general operating activities and services, and $1.1 million from council's business activities, which is waste management. The tables are provided on page 3 of the report, which include green shading to illustrate positive variances against budget, with explanatory notes provided in the commentary column to variances noted in the report.
00:31:00 Later in my verbal update, I will provide further comments to both employee benefits and financial costs, which were noted in the previous General Committee meeting. It is worth noting that the materials included in the report are the same as those provided from March 2026 to April 2026, going from a $600,000 overspend to $1.5 million. This is about 2.9% of the overall budget. We are continuing to monitor this closely behind the scenes. This doesn't appear to have come as an unforeseen cost. It's just continuation of costs or cost pressures that we have experienced today, with commentary provided in the table of what areas of council that relates to. In regards to capital, revenue and expenditure, tables are provided in the report of major capital grants and subsidies, which also include our disaster recovery funding.
00:32:00 As at April 2026, capital revenue is $24.3 million, with cash contributions from developers of $2.3 million and capital grants and subsidies of $21.9 million. Actual capital expenditure, excluding capital commitments, is $31.8 million. Or 39.3% of Council's $80.8 million capital works program. Capital expenditure is tracking below profile at this point of the year. This reflects normal project time and re-profiling of a number of projects within the current year. For comparative purposes, on page 7 of the report, graphs have been included from the Capital Works Executive Committee, illustrating capital expenditure to date, commitments and also indicative values of where we will be at the end of the financial year, as at 30 June. These have been provided as illustrations to convey the financial data in a graph format.
00:33:00 Cash management and investment performance, so total cash on hand as at April 2026 was $146.7 million, down from $159.2 million in March with $7 million held in trust. This tracks to Council's normal cash profiling that we received revenue, or the bulk of our revenue in July and January as a result of our rates periods, with the expenditure then being expensed over the preceding months. Currently we have higher than anticipated cash balances, primarily as a result of re-profiling of the capital works program. Our final cash positions to the end of the financial year are being managed closely. As noted in the previous General Committee report, we are monitoring whether in fact Council approved borrowings of $3.1 million need to be drawn down,
00:34:00 or whether cash surpluses can be used to fund those projects. Page 8 of the report provides a detailed update of our rates arrears figures. Rates arrears decreased from 9.7% to 7.8% from March to April 2026, with payments of arrears balances of $2.2 million received during the period. Councilors were provided an update of where we are in terms of updates of the Rates and Charges Debt Management and Recovery Policy project as an email following the previous General Committee meeting, as a request during the Committee on where we are in the updates supporting that project. The Rates and Utility Charges and Arrears balances are following historic norms. They have followed the predicted cash cycle that we've encountered in previous financial years, and as a result there is no emerging financial risk of the current balances that are held. In previous financial reports we've noted within the report questions taken on notice.
00:35:00 You will receive a verbal update from myself around these. They weren't included in the reported time where we issued them. In April a question was taken from Councillor Lorentson. There was a couple of aspects, so hopefully we've captured this correctly, which we've recorded as will the lower capital delivery, capital write-offs of $4.6 million and $11.5 million in arrears and the unpredictability of development contributions put pressure on future rates, services and financial sustainability ratios. To address each of the individual questions, I'm going to go through the items of the particular question. Although lower capital delivery in the interim provides cash surpluses, effectively that cash is ring held for future delivery of works. Currently we've discussed re-profiling of capital works, so not discontinuation or cancellation of works. So effectively any cash held in the short term will eventually be expended over time
00:36:00 to adjust for the re-profiling of works. This in theory doesn't provoke any financial risk as a result of that. The effective is just held in reserve or held in our bank balance until in fact we expend the cash that's held. Capital write-offs separately can occur for a number of reasons. So this can be assets reaching the end of their useful life. A new asset has been built, so the previous asset is disposed of. So effectively this is a reflection in some ways of good asset management. That you would expect over time of capital write-offs to be addressed as you have new assets that are being delivered. Capital write-offs go through the equity side of our account, so actually have no impact on our operating position. And effectively, the simplicity, we have a useful life for all assets that we depreciate. If they reach the end of their useful life prior to reaching their notional useful life,
00:37:00 the balance of that depreciation is written off and that is what a capital write-off is. So it's more an accounting adjustment or treatment for how we recognise that within our statements, but doesn't provide any operational risk to council. Rate arrears is one of the consistent ones that have always come up, so we are looking to manage that. We have noted historic levels probably aren't where we would like to see them as a result of the debt management policy that we're looking to interact. There have been some delays to that operationally of actually getting them in practice just to the audit that we've had to do behind the scenes to ensure that everything that is transferred over is correct and fair. There will be further updates provided from me specifically from this as to the timeline around that. Our communications programme that we will look to implement as well to actually get out and engage with the community so they can understand what arrears are, what it looks like and what actual avenues there are to work with council around decreasing arrears balances.
00:38:00 The unpredictability of development contributions, which is the language in the report, is effectively development contributions are tied to when development occurs, so council has no distinct ability to control that. So when we talk about unpredictability, it's when development occurs we will receive development contributions. Effectively this just creates an interim of receiving contributions to the expenditure, so there's effectively a time limit for any difference that council can manage to report at cash balances. We received one question by email from Councillor Finzel, so if you're happy I can address that in response or would you like to raise that during question time? Councillor Finzel: Sure, either way, whatever. Speaker 5: So Councillor Finzel raised a question seeking clarification around page 4 of the report in regards to higher than anticipated fleet costs, which the description was linked to, largely attributed to external hire of plant and equipment. What is the actual plant and equipment council is hiring and for what reason?
00:39:00 And the whereabouts and reporting on minutes, is this increase or expenditure currently being captured? In response to the question, fleet operating costs are indicated as being $158,000 over budget today. The extent of this overspend should be compared to the actual fleet operating budget of $4.5 million, just for context. Fleet hire is an established part of the budget to hire specialist equipment, backfill in-house plant due to scheduling or servicing breakdowns. Pressure on fleet hire can be experienced, particularly following natural disasters, meeting reactive requests, with additional fleet hire costs arising from emergent drainage and grading works in recent months. The fleet advisory committee of internal staff meets monthly, and monitors the fleet program, including expenditure, and this was considered as part of the most recent meeting,
00:40:00 and will be worked across all teams to rating costs and the available budget that's in place. There were also, in the April general committee meeting, a number of items that I noted as further investigative of what their finance was doing, that I wanted to report back on. There were comments made regarding the financial performance of waste management, revenue and expenditure, and what was driving the current underspend. For completeness, waste revenues are currently $46,000 above budget year today. This is predominantly made up of higher rates, grants and gas royalty revenues, which have been partially offset by lower disposal fees and the sale of recyclables. These are probably slightly more immaterial than the expenditure line. So materials and services are currently tracking $585,000, the low budget year today. This is primarily driven by commercial waste levy expenses of $411,000, primarily driven by lower volumes at the gate,
00:41:00 and a lower cost share of expenditure of $88,000 as a result of lower level of recyclable sales in the current financial year. Employee benefits were a question taken on notice of where this was tracking versus budget. As of April 2026, there was a $319,000 variance to budget. Notably, this is against a $49.5 million budget, so it represents less than a 0.6% variance of actuals to budget. So what would typically be considered as immaterial, below thresholds for warranting further review. The $158,000 variance today, for further explanation, is primarily driven by lower training expenses of $60,000, lower PPE expenses of $42,000, and savings within the development assessment branch of $195,000. The last point is the financial costs underspend to date.
00:42:00 This variance is due to lower interest expenses of $519,000, which is primarily related to a delayed drawdown or a decreased drawdown for loans related to the landfill expansion and the timings of the Lake MacDonald subdivision. So they effectively just reflect delayed timings or re-profiling of what debt was needed to be drawn down, which means lower interest costs have been incurred in the current financial year. To summarise overall, Council remains in a strong financial position as we work towards 30 June 2026, with any variances largely with timing rather than structural issues. Thank you and happy to take any questions in regards to the report. Thank you, Sam. Questions, councillors? Councillor Lorentson: I have quite a few, so I'll sit down and allow everyone else to talk. I'm going to probably start with our title assets.
00:43:00 They've grown, increased over the years, so just a couple of questions in terms of what's driving the growth and are we making sure that we can afford to maintain and replace them in the future? Net community assets, what I've read, has increased from $1.541 billion to $1.590 billion. So what's driving the change? Speaker 5: Happy to say that through the Chair. I can cry generalised comments as opposed to specific assets that make that up. So the changes to our asset base over the current financial year will be a reflection of assets that have been delivered through our Capital Works Program and have been commissioned today. So if they're in your financial year, you get to the completion of assets which are then capitalised, put onto our fixed asset register to depreciate it over time. This is also in some ways offset by any assets that are either decommissioned or have reached the end of their useful life.
00:44:00 From the report, we have a significant Cap of Delivery Works Program. It's $15 million in the current year, if I've remembered that correctly. So that's what you're seeing is effectively a growing asset base as a result of the infrastructure team delivering infrastructure assets throughout the financial year. In terms of whole of life costing of assets, it's one of the aspects that have been brought up routinely through budget proceedings for next year's 2027 budget, which is the whole of life asset costing, which not only looks at capital replacement of assets, ongoing maintenance, expenditure, renewals, etc. So it is a work programme we're looking at over the next financial year to build the maturity effectively and how we look at whole of life assets and costs within our budget and then the reflection in our monthly finance reports. So that answers the question. Councillor Lorentson: Just one quick follow-up on that. In terms of growth in assets, have you revalued our assets in the future in relation to growth? Speaker 5: Not today.
00:45:00 So as part of any... Sorry, through the chat, let's answer that question. Every financial year, we undertake a comprehensive valuation as part of our role in the five-year program. We're actually doing two revaluations, so other infrastructure assets and land assets. The reason for doing two in the current financial year is there was a change to the accounting standard two years ago to land. Today, we don't believe there's any financial impact, but it was prudent to move the valuation forward. We are currently working through the valuation program with an external valuer that's intended to be completed by 30 June. So the impact of the evaluation will be first reported to Audit and Risk Committee and then reported to Councillors as part of our end-of-year financial statements, but that will not be included today in terms of numbers that are in the financial reports. Thank you. Speaker 2: Excuse me, through the chat. Yes. Could I just add something... Of course. ..to your question? Yes. Speaker 1: Councillor Lorentson,
00:46:00 Speaker 2: in terms of your question around the value continuing to grow, therefore our asset base continuing to grow, it's not necessarily new assets. So that valuation change or movement also comprises of renewals. So that's existing assets that then we renew and that needs to be capitalised and depreciated as well. So it's not about creating more new assets that then will potentially cause concern for our ability to maintain and renew those. That figure is a mix of renewals being capitalised and potentially some new... Almost 50% of our capital works budget is renewal. It's not new. So... Yep. Councillor Lorentson: So I'm then assuming that the depreciation will increase in line with this increase in asset base, Speaker 2: what you were saying? Through the Chair. Depreciation increases if you bring on new assets or you do rehabilitation and increase and extend the use...
00:47:00 Not extend. No. Yeah, the costs go up. Speaker 1: Yep. Speaker 2: So it's not necessarily renewals. It's similar to that, but it's only if you've got new that you would get a significant increase or a spike in your depreciation. Thank you very much. Well, Councillor Wickman, you had a question? Councillor Wegener: No, actually... You answered my question. Thank you. Councillor Phillips. Councillor Lorentson: No, same. It's OK. Mayor Wilkie: Councillor Morrison, do you have some more? Councillor Lorentson: I do. Something I think I've continually raised over many, many years, consultancy services. So I just want to ask a couple of questions. So I've read consultancy services, I think $714,000. And when you divide that over 10 months, so the report's up to April 10, we're averaging close to $614,000. So we're averaging close to $5,000 per month on consultants.
00:48:00 So a couple of questions. What's driving the ongoing reliance on consultants and which areas of Council operations do they support? Speaker 2: Through the Chair, I'll take that question. Councillor Lorentson, we'll have to take that question on notice. We do have the detail in the background where we could point to a particular area of the report to try to answer that question now. But it wouldn't be fair without me speaking to my colleagues and getting a report done to see where our consultancy spend is across the organisation. Councillor Lorentson: These other questions may be put on notice if you need to go back. So, again, something I've raised, I would love to see a formal policy or framework for engaging consultants. My understanding, we're using our procurement policy as a basis when we go out to external consultants. Can you explain that a little bit in detail?
00:49:00 Speaker 2: Yes, through the Chair. Just to clarify, there is a difference between consultants and contractors. So we have contractors for various bodies of our operational work, either through fixed-term temporary contractors or through the delivery of our capital works program that complements our own staff. Consultancies obviously can be brought in for various different means for a whole range of activities. We must comply with our procurement policy, which is underpinned by the principles of the Local Government Act and the regulation in terms of transparency and value for money. And to ensure that we meet all of those, we have thresholds that are determined in the policy of which we need to meet in terms of seeking quotes. And we have probity plans and there is a significant amount of rigour by our strategic procurement and contract management team overlaying any form of engagement of consultants and contractors.
00:50:00 Councillor Lorentson: And last question. How are we balancing expertise with building long-term internal capability and organisation knowledge? And probably my question is really, where are we up to with our capability plan? Speaker 2: Yes, through the Chair. I'm pleased to say that we have a draft that's been completed, the actual project management plan, just to clarify, not the actual workforce capability and workforce planning plan. We haven't got that done. I gave you a commitment that I would actually have that completed in draft by December this year. So the first step was to actually develop a project management plan and I reported that through the operational plan status report as well. So, as I said, I'm pleased to say that the PMP has been completed, it's been presented to the executive team and in the next quarter we hope to engage some additional support
00:51:00 to help us with that because we don't have the capacity to do BAU and addressing some, I suppose, foundation and stability work within the PNC function and providing service across the organisation. We can't continue to focus on improving that and meeting the expectations of the organisation plus also managing a large body of work which is the development of the workforce capability plan. So we are getting some external help for that one as well. Councillor Lorentson: I have a couple of questions. That really makes me happy. Thank you, Mike. Something, again, I've been pushing for some time. In terms of the $1.7 million loss, are there any other recommendations from the review or audits that are still being implemented? Speaker 2: Through the Chair, thank you. We have just completed the,
00:52:00 as per the Audit and Risk Committee actions of, I can't remember the date, the last one, the one before, I think. Sorry, I can't remember exactly. There was a request by the Audit and Risk Committee that we request our internal audit function, which is outsourced, to Crow, to actually do an audit of the QAO implementation to see whether we had actually implemented everything. And I haven't, well, I'm presenting the outcomes of that to the Audit and Risk Committee next week. But I'm happy to share with you at a high level that there were no significant findings or observations. There were only three, what they refer to as process improvement opportunities. So please to advise us that we have implemented everything. And yeah, it's implemented and it's in the Audit and Risk Committee report where we provide that detail. Councillor Lorentson: Fantastic. And can I make a request?
00:53:00 Can we perhaps in the next financial report next month have maybe just an update of where we're actually in terms of the implementation of the recommendations from the review and audit? Through the Chair? Yes, sure. Definitely. Thank you. And I have a couple more questions. So actually I've been to two State of the Nations economic forums, one hosted by Council, which was really excellent yesterday morning. Going to another one I think this week. So in terms of the ongoing discussions about economic risk that have been raised through these forums, for example, housing affordability and workforce shortages, how are we factoring all these issues into our financial planning and long-term budget assumptions?
00:54:00 Speaker 2: Through the Chair? Speaker 1: Council Orreston, Speaker 2: that's a continued watching brief, is looking at what's happening at a micro and macro economic lens, not only through the recent presentation, this week, hosted by Council, but also with our continued interactions with our Treasurer, Queensland Treasury Corporation. In terms of answering the question around how do we consider that in our long-term financial planning assumptions, I did give you a commitment about 12 months ago that we would, in addition to having our long-term financial plan, which is a model that is part of our budget papers proper, that we would develop a long-term financial plan strategy. We are probably only about 60% through there. We've just had some challenges in terms of resource constraints and the assistance, the additional resources,
00:55:00 resource that we had, that we have, to help us develop that has been focused on some other compliance activities. So we haven't been able to focus on that. I had hoped to have that as part of the 26-27 budget adoption, but I haven't been able to get it past about 60%. But I can give you another commitment with more assurance behind that, that we will have that as part of the 27-28 budget. And it will consider all of those things that you've just asked. Thank you very much. Councillor Lorentson: I'll leave it at that. Thank you. Councillor Phillips: Just a quick... Mark, if I could ask, I'm sure I know you've got a lot on as well, but the Workplace Capabilities Plan, I know it's not quite finished yet, but would I be able to request a workshop maybe on telling us where it's at and maybe just so we're not waiting for the final, just sort of that and maybe even the long-term financial plan strategy.
00:56:00 Speaker 2: Through the Chair, Councillor Phillips, we actually do have a briefing scheduled with Councillors on the Workforce Capability Plan and Workforce Plan. So, that will basically table with you the framework, show you the PMP and give you an understanding of milestones and deliverables and the amount of work that will be required. So, that's actually been scheduled for... So, I'm presenting to the Audit and Risk Committee as well that project management plan and the framework. I think I'm actually presenting it to Councillors via a briefing the day before the Audit and Risk, which is next week. So, I think. Sorry, I've missed the second part of the question. Councillor Phillips: No, that's okay. Sorry, I didn't see that in the calendar. So, that's great as long as it's before the budget and or the finalise of the budget. The long-term financial plan strategy so that it's 60% for the workshop would be great on that as well. Speaker 2: Yeah, sure. I'll look to schedule that after the adoption of the budget
00:57:00 sometime in the later part of this calendar year if that's okay with you. Great. Mayor Wilkie: I have a question about the rates and arrears figures. Just trying to understand the calculations. On page eight, you mentioned that in March there was 11.5 million of rates and arrears, but that's improved to 7.4 million of rates and arrears in April. Is that correct? Yes. And... Oh, through the Chief, sorry. Yeah. And then the table below the key metrics and total arrears mentions the movement in arrears of being 2.204 million. Speaker 5: I can take that one. That's with me through the Chair. So, just my apologies. The note 11.5 million is the layover from the previous financial report. So, the table is correct. And then the key metrics reflect that. The $9.7 million was, I believe from memory, that's from the previous financial report. The $11.5 million should read at $9.6 million,
00:58:00 if I'm doing my math in my head correctly. So, my apologies to that effect. It's just that 11.5 noted in the verbal or the writing explanation hasn't been updated. Mayor Wilkie: Thank you. Sorry, my apologies. The maths makes no sense. Councillor Lorentson: Thank you. Apologies, Bill. That's all right. So, just a few other questions on the arrears. And I think... Possibly you've actually did record this, but what proportion of the current arrears, 7.4 million, is considered short-term and versus like the long-term debt, the historical ones? Speaker 2: Through the Chair, at the last monthly finance report, we actually gave you an ageing in arrears more detail to show how many properties are sitting in with each of those categories. So, I can't remember what they are right now. Off the top of my head. But it is reflected in last month's monthly finance report.
00:59:00 Speaker 5: Noting we do that on a quarterly rolling R1, as we have those quarterly updates. That's why it's not in the report this time. Because every quarter we bring up the more detailed reporting to provide that aged analysis. Thank you very much. Thank you. Councillor Finzel. Councillor Finzel: Yes, thank you. I was just coming back to questions around assets to align with our policy around the asset management and sustainable responsibility. Are we on track with capitalising, with our capitalisation? Would you say we're on track for that? Where are we sitting? Speaker 2: Through the Chair. I'm happy to take that question. That's a continued focus for our finance team, but also across the organisation. We actually have stood up to it. We have an actual project team that is solely, not solely, but has got a focus for traction and momentum around addressing to ensure that our assets are capitalised
01:00:00 in a timely manner and reflected in the asset register. There are many, many reasons why there is a lag. It's very common in almost every single council that there will be an amount that sits in your WIP that takes, a dedicated focus to actually look at internal processes so that when something is, when the built form is practically complete, that then the financially complete aspect happens as soon and as efficiently as possible. So it is a focus for us. I don't know if I've answered your question. Councillor Finzel: Question for the Chair. Speaker 2: Yes, of course, Councillor. Councillor Finzel: Would you say that lag, there is a manageable risk or is it something that we need to be aware of? Putting a greater focus onto? Speaker 2: Through the Chair. As I've said, we have developed a project team that is focused on addressing the WIP.
01:01:00 It was a, I would say, a substantial amount last year and we've progressively been working with the organisation to get things financially complete and recorded in the asset register, including some of our disaster recovery programs. The Audit Risk Committee have a focus on it and our contract auditors, KPMG, who do our interim year audit and end of financial year audit, they also are aware of our project team and our focus on it and are supporting us through that process. Speaker 5: And to expand on a bit, the Chair, we had an interim audit with KPMG on site last week. This was one of the discussion topics yesterday. So as of 30 June 2026 when we get to that, we will be up to date on commissioning of assets so there's no lag between there for our financial statements as there is in any financial year and there's a, as Mark alluded to, a bigger emphasis being put on what and how we report that as well. So there's no financial risk when we get to the end of the financial year of capitalisation of assets or the incurring depreciation that comes from that.
01:02:00 Councillor Finzel: That's good news. Thank you. Just have a follow-up question of the one earlier that you answered, but I noticed we've got Shaun Walsh in the room through the Chair to the CEO. Is that okay if Shaun can come up to the table to give us a bit more detail on that earlier question? Director Walsh: This is about the fleet advisory committee, Councillor? Councillor Finzel: Yes. Yeah, is that okay? Speaker 4: What's the question, Councillor, please? Councillor Finzel: It was around the fleet, around the advisory panel that sits on that. Fair question. Director Walsh: Yeah, happy to answer that question. Yes, certainly, to the Chair. So the fleet advisory committee. So firstly, I just want to let you know, through a restructuring arrangement internally, fleet actually is transferred across to infrastructure services. So... Because fleet is housed at the depot and 90% of the fleet issues are actually infrastructure services and it allows a lot more accountability in terms of the management of the product. So as part of that sort of change of reporting lines,
01:03:00 we recently restructured the governance model or the terms of reference for fleet advisory committee to make sure we've got adequate representation across the whole of the organisation, including climate change, to allow, you know, consideration of electric vehicles and consideration of tracking things like finances. So the fleet advisory committee actually met this morning and because I've had written notice of Councillor Finzel's question, actually, we talked about the current overspend with $158,000 and Mike Dow, the fleet manager, and Craig Young and myself committed to, you know, review the fleet high costs for the balance of the financial year to ensure that we can try and bring that into realm. Not only we are still affected if we have a natural disaster or some major reactive request, we might still have to buy a fleet, but we can balance the books or balance the budget to ensure great certainty for that expenditure item. Mayor Wilkie: Happy to take that. Councillor Finzel: Yes, thank you. Director Walsh: Thank you. Mayor Wilkie: Another question. If I've read the report correctly,
01:04:00 you're saying the impact of the Middle East crisis has been only $4,000 on the current... Have I read that correctly? Is that principally due to price of diesel? Speaker 5: Sir, through the Chair, so there's probably two aspects to that question. In terms of the most immediate impact of the crisis, as it is as the impacts of fuel. So something we have done internally to address that is procurement We've been working with infrastructure, looking at how we can identify any increases of fuel increases over time. So within our financial system, we've identified that as a particular line item. So we can track that in individual contracts. So in the current financial report as of April, you are correct. It's only about $4,000 that had been attributed to that cost code at that point in time. Noting there's evidently a lag between incurring costs and then retrospectively paying them as well. So we will monitor that over time. And it has been separated. So if it starts to increase, we can report that to Council. There's complete visibility of the impacts of that crisis.
01:05:00 Mayor Wilkie: So that's fuel only, Zach, not increased cost of materials and services for transport, materials and services or anything like that? Speaker 2: So through the Chair, I'm happy to take that. The $4,000 that's sitting against that particular line item, I would suggest that that is probably not reflective of reality. It's probably just internally, we haven't got our internal processes bedded down to ensure that if any invoices come in where there is an increase in the cost, that it is going there. So it's about another communication exercise with the organisation to remind our staff that if they're processing invoices and there is an increase in the cost of fuel associated with that invoice, that we need to have the diligence to ensure it goes to that line item. It is something that we discuss at the SteerCo. We also, separate to the fuel cost, as Zach has mentioned, the rise and fall provisions within contracts, our procurement team have been diligently monitoring that and supporting
01:06:00 the organisation by challenging any increases that come from our contractors where they believe that maybe they're not reasonable, that those increases aren't reasonable. Our procurement team are working closely with contractors to understand where there are increases coming from. Is it just about, is it a percentage, is it actual based or is it just a percentage levy? And so we've got a mix of all. So some of our contractors have requested say an example, a 5% levy just to put across their contracts. Others have suggested up to a 30% increase and others are more just, these are the actual fixed costs, so that's what we're asking for, purely associated with fuel. So it is, I think it's important to make sure that it's a watching brief. It's, it's been looked at and monitored every day. So. Mayor Wilkie: Thank you. Anybody care to move the report? Councillor Lorentson?
01:07:00 I'm happy to move. Seconded? Seconded. Seconded. Councillor Finzel? Councillor Lorentson? Councillor Lorentson: Thank you to your team and yourselves for preparing the financial report and for the work involved in managing Council's finances. I think it was really good conversation. We had a conversation around the table today and I feel really assured that the broader economic situation is seriously factored in when we're looking at our numbers. You know, we're about to approach our budget next month and I think, you know, the community deserves to know that we are having lots of internal discussions about efficiencies and about building internal capability to again attain those goals. I'm going to take this opportunity to congratulate Zach for getting the management position for
01:08:00 financial services. I understand that the calibre of applicants is really quite high and you stood out. And from memory, 15 years of experience, Asia, New Zealand, Australia, chartered accountant, senior government positions. We are so lucky to have you on the panel. Zach and I think anyone that switches onto these live stream meetings can tell the calibre of staff that we have in our financial departments between Mark, yourself and your team. Again, really lucky to have your whole team and thank you. Mayor Wilkie: Don't feel obliged to respond, Zach. Speaker 1: Thank you very much. Mayor Wilkie: Just take it. Any other councillors wish to speak? Put to the vote? Wish to close? All in favour? That's carried. Thank you. Yes. Thank you, Wilson.
01:09:00 Thank you, Zach. Thank you, Mo. The next ordinary meeting is... I'm sorry. I jumped too far ahead. Right. Now to 14.1, which is another confidential item. It involves a waste management contract extension. So this is a commercial investment contract extension. This is an open confidence item, which will need to go into confidential session. So thank you, members of the gallery. This is the last item today. But we will reopen to move the recommendation that comes from it. So I move that the meeting be closed to the public pursuant to Section 254J3G of the Local Government Regulation 2012 for the purpose of discussing contracts proposed to be made by Council. In particular, the potential commercial negotiations in relation to item 14.1, waste management contract extension.
14.1 CONFIDENTIAL - NOT FOR PUBLIC RELEASE - WASTE MANAGEMENT CONTRACT EXTENSION ¶
01:10:00 May I have a seconder for that, please? Thank you, Councillor Wegener. All in favour? Speaker 1: Yes. Mayor Wilkie: Thank you. That's unanimous.
01:23:00 Councillor Finzel: Thank you. Thank you. Mayor Wilkie: Thank you. The report by the Waste Coordinator to the Ordinary Meeting dated 21st May 2026 regarding Council's Waste Management Contract, Contract Number 1516T043. B. Approve the extension of the current 1516T043 Waste Management Contract for a period of two months under the current schedule of rates. C. Delegate to the Chief Executive Officer the power to negotiate, finalise, execute and complete all things necessary to administer the contract extension on behalf of Council.
01:24:00 May I have a seconder for that please? I have a second. Councillor Phillips. Any discussion? Councillor Whittington. You may. Councillor Wegener: It just gives me a lot of confidence. It gives me a lot of confidence in the Waste Department and the team to know that they're thinking that far ahead. We're going to need a couple of extra months here to put this together, especially in the world the way it is right now. And I appreciate that, to be thinking a year ahead in negotiations. Mayor Wilkie: Thank you, Councillor Whittington. Councillor Phillips: Anybody else? I'm going to say quickly the same thing, thank you, because I was going to say it as well. But, Kyron, always I notice that anything from your department you try to solve in-house before you start looking externally. And that I acknowledge, because everything you present to us usually gives me a lot of confidence in your team as well. Thanks. Mayor Wilkie: Thank you, Councillor Phillips. I'll put it to the vote. Those in favour? Councillor Wegener: Yes. Mayor Wilkie: That's unanimous. And that's carried. Thank you, Kyron. Thank you.
01:25:00 And that's the last item on the agenda. The next ordinary meeting will be in Council Chambers at 10am on Thursday, June 18, 2026.
15 NEXT MEETING ¶
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.
16 MEETING CLOSURE ¶
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.