Adopted Minutes Council Meeting - City of Gold Coast · 6/13/2017 · Council provides secretarial...

737

Adopted Minutes of the

Council Meeting held

Tuesday 13 June 2017

at

1pm

City of Gold Coast Council Chambers 135 Bundall Road, Surfers Paradise

737th Council Meeting 2 13 June 2017 Adopted Minutes

INDEX

Adopted Minutes (737)

Council Meeting

Tuesday 13 June 2017

ITEM SUBJECT

1 ATTENDANCE / LEAVE OF ABSENCE

2 CONDOLENCES

3 MAYORAL MINUTE

3.1 Council Support

4 CONFIRMATION OF MINUTES

4.1 The Seven Hundred and Thirty Sixth Meeting of the Council of the City of Gold Coast, held Tuesday 30 May 2017 at 1pm.

5 MAYOR’S REPORT

6 CLARIFICATION – MEMBERS

7 BUSINESS ARISING FROM MINUTES

8 PRESENTATIONS

8.1 Queensland Greats Awards – Recognition presentation to Mayors of regions affected by Tropical Cyclone Debbie

Cr Tate

8.2 Queensland National Trust Heritage Awards Cr Gates

9 RECEPTION AND CONSIDERATION OF COMMITTEE REPORTS

9.1 City Infrastructure 1 June 2017

9.2 Community Services 1 June 2017

9.3 City Planning 7 June 2017

9.4 Governance & Administration 8 June 2017

9.5 Economic Development & Major Projects 8 June 2017

10 CONSIDERATION OF NOTICES OF MOTION

11 QUESTIONS ON NOTICE / ANSWERS TO QUESTIONS ON NOTICE

12 PRESENTATION OF PETITIONS

13 GENERAL BUSINESS

14 OTHER BUSINESS

14.1 April 2017 Monthly Financial Report


ITEM SUBJECT

14.2 May 2017 Monthly Financial Report

14.3 Revenue Policy 2017-18


ADOPTED AT COUNCIL 21 JUNE 2017 RESOLUTION G17.0621.002 moved Cr Caldwell seconded Cr Vorster That the Minutes of the Seven Hundred and Thirty Seventh Ordinary Meeting of the Council of the City of Gold Coast held on Tuesday 13 June 2017 at 1pm be confirmed.

CARRIED UNANIMOUSLY Minutes of the Seven Hundred and Thirty Seventh Ordinary Meeting of the Council of the City of Gold Coast held at the City of Gold Coast Chambers, 135 Bundall Road, Surfers Paradise, on Tuesday 13 June 2017, at 1pm. The Mayor, Cr T R Tate, welcomed Pastor John MacDonald from Metro Church, Southport, to open the meeting in prayer. National Anthem 1 ATTENDANCE Cr T R Tate Mayor Cr D Gates Cr W M A Owen-Jones Cr C M Caldwell Cr K L Boulton Cr P J Young Cr D M Crichlow OAM Cr G J Baildon AM Cr R La Castra Cr G M Tozer Cr P A Taylor Cr H H C Vorster Cr P C Young Cr D I McDonald Cr G M O’Neill Mr D R Dickson Chief Executive Officer Mr A J McCabe Chief Operating Officer Mr A Twine Director City Infrastructure Ms A Ewens Director Community Services Mr D Scott Director Economic Development & Major Projects Mr G Potter Director Organisational Services Mrs D Currie Director Planning & Environment 1.1 LEAVE OF ABSENCE / APOLOGIES Nil

2 CONDOLENCES

Nil


3 MAYORAL MINUTE 3.1 COUNCIL SUPPORT LG211/361/02(P4) Councillors,

Having regard to the outcome of recent Councillor discussions led by myself as Mayor, as reflected in overwhelming support for divisional Community Project Officers and related changes, and unanimous support for an International Relations Project Officer, I offer the following motion.

MOTION moved Cr Tate That Council resolves as follows:

1 That section 2.1.2 of the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy be amended to read as follows:

2.1.2 Support staff

Council provides secretarial support for each Councillor.

Councillors are provided with a full time Personal Assistant under Council's usual terms and conditions of employment. In addition, a Councillor may elect to also be provided with a full time Community Project Officer employed under Council’s usual terms and conditions of employment.

The Mayor is entitled to the following support staff:-

• Chief of Staff

• Personal Assistant and Appointments Secretary

• Secretary/Branch Finance Officer

• Policy Advisor and Speech Writer

• Advocacy, Communications and Assistant Speech Writer

• Communications and Engagement Officer

• International Relations Officer

• Media, Policy Implementation & Community Engagement Officer

• Major Projects, Advocacy and Community Consultation Officer

• International Relations Admin Officer

• International Relations Project Officer

The Mayor shall also be entitled to relief secretarial support if required.

Provision of Divisional support staff

A Councillor may request that the Council approves the provision of temporary support staff. All such requests shall be determined as part of Council’s annual budget process (including budget reviews). Any such staff approved by the Council will be temporary in nature (e.g. for no longer than a Councillor’s term, or for a specific project or purpose).


3 MAYORAL MINUTE (Continued) 3.1 COUNCIL SUPPORT (Continued) LG211/361/02(P4)

2 Council adopts the changes to its organisational structure as depicted at Attachment 1, incorporating, inter alia, the following:

a The abolition of the position of Manager Council Support.

b The abolition of three positions of Relief Councillor PA.

c The abolition of Community Development Officer roles from the Safe and Liveable Communities Branch, Community Services Directorate and Community Development Officer positions funded via Local Area Works, with the exception however of the position of Senior Community Development Officer.

PROCEDURAL MOTION moved Cr Gates seconded Cr Tate That the Motion be Put

A division was called. For 9 Cr Caldwell, Cr Vorster, Cr Crichlow, Cr Baildon, Cr O’Neill,

Cr Gates, Cr PC Young, Cr Taylor, Cr Tate Against 6 Cr Tozer, Cr Owen-Jones, Cr PJ Young, Cr La Castra,

Cr Boulton, Cr McDonald Abstained 0 Absent 0

CARRIED

RESOLUTION G17.0613.001

1 That section 2.1.2 of the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy be amended to read as follows:

2.1.2 Support staff

Council provides secretarial support for each Councillor.

Councillors are provided with a full time Personal Assistant under Council's usual terms and conditions of employment. In addition, a Councillor may elect to also be provided with a full time Community Project Officer employed under Council’s usual terms and conditions of employment.



The Mayor is entitled to the following support staff:-

• Chief of Staff

• Personal Assistant and Appointments Secretary

• Secretary/Branch Finance Officer

• Policy Advisor and Speech Writer

• Advocacy, Communications and Assistant Speech Writer

• Communications and Engagement Officer

• International Relations Officer

• Media, Policy Implementation & Community Engagement Officer

• Major Projects, Advocacy and Community Consultation Officer

• International Relations Admin Officer

• International Relations Project Officer

The Mayor shall also be entitled to relief secretarial support if required.

Provision of Divisional support staff

A Councillor may request that the Council approves the provision of temporary support staff. All such requests shall be determined as part of Council’s annual budget process (including budget reviews). Any such staff approved by the Council will be temporary in nature (e.g. for no longer than a Councillor’s term, or for a specific project or purpose).

2 Council adopts the changes to its organisational structure as depicted at Attachment 1, incorporating, inter alia, the following:

a The abolition of the position of Manager Council Support.

b The abolition of three positions of Relief Councillor PA.

c The abolition of Community Development Officer roles from the Safe and Liveable Communities Branch, Community Services Directorate and Community Development Officer positions funded via Local Area Works, with the exception however of the position of Senior Community Development Officer.

A division was called. For 9 Cr Caldwell, Cr Vorster, Cr Crichlow, Cr Baildon, Cr O’Neill,

Cr Gates, Cr PC Young, Cr Taylor, Cr Tate Against 6 Cr Tozer, Cr Owen-Jones, Cr PJ Young, Cr La Castra,

Cr Boulton, Cr McDonald Abstained 0 Absent 0

CARRIED



4 CONFIRMATION OF MINUTES RESOLUTION G17.0613.002 moved Cr Crichlow seconded Cr Baildon That the Minutes of the Seven Hundred and Thirty Sixth Ordinary Meeting of the Council of the City of Gold Coast held on Tuesday 30 May 2017 at 1pm be confirmed.

CARRIED


5 MAYOR’S REPORT 5.1 RECENT VISITS AND SPEECHES


5 MAYOR’S REPORT (Continued) 5.1 RECENT VISITS AND SPEECHES (Continued)

Officially Open Sonia Stradiotto's Boutique

The Mayoress and I had the pleasure of opening up another great business for the city.

Sonia is a 27 year veteran of business on the Gold Coast.

This is another success story for small business on the Gold Coast.



Citizenship Ceremony and Diversity Gold Coast

Cr Crichlow and Cr Owen-Jones attended.

This event was a celebration of Queensland Week that recognises the diverse cultures and showcases our multicultural community.

On the Gold Coast, we held:

an official Australian Citizenship Ceremony for approximately 150 new residents;

a full stage line-up of multicultural entertainment;

an extensive international food market featuring over 30 stallholders;

And a range of stalls with a multicultural focus including available services, interactive activities and arts & crafts.



Dedication of the Bob Jeffrey Soccer Field

Cr La Castra attended.

Bob Jeffrey’s untimely passing in late 2015 shocked many people. Locals all knew how much Bob loved soccer and especially his beloved Nerang Soccer Club.

He got involved with the Nerang Club way back in 1994. So he gave nearly a quarter of a century of service to the game and all those involved.

Bob served as President for nearly a decade, being first elected to that role in 2006. And he delivered great improvements to the facilities here: upgraded flood lighting, chain mesh kicking walls, covered spectator seating under the verandah and a new amenities block.

It was therefore my pleasure to unveil the new “Bob Jeffrey Field” in his honour.



Launch of Community Consultation for Gold Coast Light Rail Stage 3A

Cr Taylor and Cr Pauline Young attended.

The community is being asked to provide feedback on the proposed next stage of the light rail between Broadbeach and Burleigh Heads.

The proposed light rail route from Broadbeach to Burleigh Heads, known as Stage 3A, follows the Gold Coast Highway.

I have ruled out any options along the Esplanade at Miami or Burleigh, so we are taking light rail straight down the existing Gold Coast Highway.

Stations will be spaced to ensure a balance between easy public access to the network and efficient travel times.

2 options for stations in Burleigh Heads are being considered.

One is on the Gold Coast Highway near Burleigh Heads Hotel and the second is behind the bowls club.

This is part of our integrated public transport network for the city.

Passengers will be able to conveniently transfer between light rail and the bus network to get around the city.

Planning for future stages to Coolangatta continue, but our focus is to get the route to Burleigh Heads sorted, before we look further south.

Community consultation on Light Rail to Burleigh Heads is open until 7 July at gchaveyoursay.com.au/lightrailtoburleigh



Announcement of Energy Saving Street Light Pilot Program

Ratepayers will save more than $2 million annually with the City today launching the first stage of a major energy savings program.

I launched this new program in Surfers Paradise where energy saving LED street lights will be rolled out in a pilot program to replace existing high energy using street lights.

The City’s annual electricity bill is around $28.7 million and without introducing energy saving initiatives such as this, it could increase by about 50% over the next five years – there will be about 55,000 energy saving lights across the city.

Like all households, we need to do everything we can to minimise that outlay. Council has agreed to a wide-ranging energy saving program that tackles every facet of our energy consumption, and drives home savings for the ratepayer.

From August, we will be installing 892 of these high-tech street lights across Surfers Paradise. This program alone will save 50% in electricity consumption annually.

The initial installation will cost around $1 million, but we know that after around 6 years, the investment will have been achieved and savings will roll on from then.



2017 Queensland Greats Awards

The Premier invited me to attend on behalf of our City.

The Queensland Greats Awards recognise remarkable Queenslanders and institutions whose long-term or lifetime achievements have made a significant impact to Queensland.

Since 2001, 80 individuals, 11 institutions and two posthumous recipients have been honoured as Queensland Greats for their outstanding achievements within Queensland.

The Gold Coast was officially recognised by the Premier for our contribution and efforts during Tropical Cyclone Debbie.



2018 Gold Coast Commonwealth Games Trade & Investment Program Engagement Forum

It was a pleasure to join with the Commonwealth Games Minister Kate Jones to host this Trade 2018 event which encouraged Queensland businesses to embrace the Games.

Trade 2018 will culminate with a program of trade and investment-focused activities delivered in parallel with the Games next year.

To showcase the best of the city and state, we will host these events at Commonwealth House.

This venue will welcome leaders from across the world, showcasing trade and investment opportunities.

All of the work we are doing now is focused on further establishing the Gold Coast as a world-class city, while creating a lasting legacy for years to come.

We are using the Games to promote the Gold Coast beyond the sporting world, showcasing our city’s reputation as a place of unique opportunity with an enviable lifestyle – a place where people can live, work, study and invest.

Also, congratulations to Vice Chancellor and President of Griffith University Professor Ian O’Connor who was recognised in the Queen’s Birthday 2017 Honours List and appointed a Companion of The Order Of Australia in the General Division (AC).

Congratulations also to Des Lacy who heads up Security for the Commonwealth Games, who was awarded The Medal of The Order Of Australia in the General Division (OAM) “For service to multinational law enforcement relations and cooperation.”



Update on Narrowneck Reef Renewal

Narrowneck Beach will be better protected as works to replenish the artificial reef and extend the seawall begin in coming weeks as part of the $18.5 million budget for coastal protection projects (2017-18).

The artificial reef, originally built in 1999, has increased the resilience of Narrowneck against the impacts of storm events and large ocean swell.

The $2 million renewal works, commencing in August, involve placing additional geotextile sand containers on the existing artificial reef using a specialised vessel.

The existing reef has helped protect the beach for the past 20 years.

Now we need to ensure this coastal protection continues in order to retain sand on our northern beaches.

The artificial reef lessens the erosion impacts of large waves. As these waves cross the reef, their intensity becomes less threatening to the beach. The reef promotes a build-up of sand to act as a buffer to protect the beach during storms.

An additional 200 metre section of seawall will be renewed just south of Narrowneck at Higman St, Main Beach, at a cost of $900,000 with works commencing in July.

This will complement the existing $4.2 million, 600 metre seawall at Narrowneck.



Rebel FM AC/DC 24 Hours Straight

I was grabbed by Rebel FM before we left Narrowneck where they presented me with this great Acca Dacca T-Shirt.

It seems my love for AC/DC precedes me.



Update on ‘Level Up’ Program

As you know, the ‘Level Up’ pilot program is an initiative of the Youth Plan 2020: A plan to embrace our young potential.

The young emerging artists participating in the ‘Level Up’ program recently held an artist ‘meet and greet’ at the Helensvale Studio on 25 May 2017.

This open studio event provided an opportunity for the young people to showcase their work to family and friends, Councillors and industry professionals.

The open studio also provided an opportunity for the young people to unveil the studio mural as shown below.

The young emerging artists have commenced work on their three remaining projects including:

Design of a mural for a pedestrian tunnel in Helensvale.

Delivery of community arts workshops for the ‘Exchange’ ideas festival for young people on 23 and 24 June 2017.

Preparations for the ‘Level Up’ final exhibition and celebration event at the Arts Centre (scheduled for the week beginning 10 July 2017).



RESOLUTION G17.0613.003 moved Cr Tate seconded Cr Gates That the Mayor’s Report be welcomed and noted.

CARRIED


6 CLARIFICATION - MEMBERS 6.1 MOSQUE – 2 ALKIRA WAY, WORONGARY Cr Tozer wished to clarify the following: In the Gold Coast Bulletin online site on 13 June 2017 titled: ‘Cr Glenn Tozer Explains Why He Was Advised Not To Attend An Anti-Mosque Rally’ In the article it indicates that I am supportive of the expansion to the capacity of the place of worship at 2 Alkira Way Worongary to 200 people. No application for such a change has been received as far as I am aware. It’s my view that the site cannot adequately manage traffic or other planning variables for that amount of people. The current capacity ruled by the Planning and Environment Court is 10 people only for dawn prayers, and 40 people only through the rest of the day. The current place of worship is not operating. It is currently under construction. There have been no changes to the capacity of the Planning and Environment Court ruling at this stage nor has any been proposed in the application for a pre-request response that has been received by Council. That’s my clarification. I am not supportive of that magnitude of patronage at that location. 7 BUSINESS ARISING FROM MINUTES Nil


8 PRESENTATIONS 8.1 QUEENSLAND GREATS AWARDS – RECOGNITION PRESENTATION TO

MAYORS OF REGIONS AFFECTED BY TROPICAL CYCLONE DEBBIE

l-r Cr Donna Gates – Deputy Mayor, Mayor Tom Tate, Director Alison Ewens – Community Services

The Queensland Greats Awards recognise remarkable Queenslanders and institutions whose long-term or lifetime achievements have made a significant impact to Queensland.

Since 2001, 80 individuals, 11 institutions and two posthumous recipients have been honoured as Queensland Greats for their outstanding achievements within Queensland.

The Gold Coast was officially recognised by the Premier for our contribution and efforts during Tropical Cyclone Debbie.

8.2 QUEENSLAND NATIONAL TRUST HERITAGE AWARDS

l-r Kyla Stephan (Local Studies Library), Jane Austen (Heritage Unit), Cr Donna Gates, Mayor Tom Tate,

Leah Lang (City Architect),Kevin Rains (Heritage Unit), Greg Peat (City Infrastructure)

Cr Gates presented Mr Mayor with the below award.


8 PRESENTATIONS (continued) 8.2 QUEENSLAND NATIONAL TRUST HERITAGE AWARDS (Continued) On Saturday, 20 May 2017, the Office of the City Architect, Heritage Unit attended the gala dinner and awards night for the Queensland National Trust Heritage Awards 2016-17. The Heritage Unit won the Silver award and they were noted for continuing to undertake high quality cultural heritage projects.

The Heritage Unit nomination was in the Agency Conservation Programs Category. The award recognises programs and projects that demonstrate excellence in planning, conservation, interpretation and promotion of heritage. The nomination included the following projects:-

Southport Cable Hut (Former) Conservation Management Plan Rossers Garden Conservation Management Plan Maid Of Sker Archival Recording Currumbin Creek Railway Bridge (Former) Archival Recording Rediscovering Gold Coast Pop-Up Museum From Cables To Commemoration: The Gold Coast Home From 1914-1918 (In

Collaboration With Local Studies Library) Oral Histories Program 2016 Coolangatta State School (Former) Interpretive Signage Mudgeeraba Pioneering Stories: The Mudgeeraba Light Horse (In Collaboration With

Division 9) Southport Cable Hut Conservation Works (In Collaboration With City Infrastructure) Currumbin Creek Railway Bridge (Former) Conservation Works (In Collaboration With

City Infrastructure) Maid Of Sker Conservation Works (In Collaboration With Division 5 And City

Infrastructure)

The Heritage Unit was competing with other federal, state and local government agencies in this category including:

Brisbane City Council (Gold) Gladstone Regional Council Gympie Regional Council Ipswich City Council Townsville City Council Rockhampton Regional Council (High Commendation) Boulia Shire Council Department Of Education And Training

Council was represented at the awards by the following officers; Leah Lang (City Architect), Kevin Rains, Jane Austen, Donna-Maree Wilson, Greg Peat and Ken Jackson


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS 9.1 CITY INFRASTRUCTURE Cr Crichlow, Chairperson of the City Infrastructure Committee, presented the Report of the Meeting of the City Infrastructure Committee held on Thursday, 1 June 2017. RESOLUTION G17.0613.004 moved Cr Crichlow seconded Cr Baildon That the Report of the City Infrastructure Committee Meeting held on Thursday, 1 June 2017, covered by Recommendations numbered CI17.0601.001 to CI17.0601.005, be received.

CARRIED ADOPTION OF THE CITY INFRASTRUCTURE COMMITTEE REPORT RESOLUTION G17.0613.005 moved Cr Crichlow seconded Cr Baildon That the Report of the City Infrastructure Committee Meeting of Thursday, 1 June 2017, covered by Recommendations numbered CI17.0601.001 to CI17.0601.005, be adopted.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.2 COMMUNITY SERVICES Cr La Castra, Chairperson of the Community Services Committee, presented the Report of the Meeting of the Community Services Committee held on Thursday, 1 June 2017. RESOLUTION G17.0613.006 moved Cr La Castra seconded Cr Boulton That the Report of the Community Services Committee Meeting held on Thursday, 1 June 2017, covered by Recommendations numbered CS17.0601.001 to CS17.0601.006, be received.

CARRIED ADOPTION OF COMMUNITY SERVICES COMMITTEE REPORT RESOLUTION G17.0613.007 moved Cr La Castra seconded Cr Vorster That the Report of the Community Services Committee’s Recommendations of Thursday, 1 June 2017, numbered CS17.0601.001 to CS17.0601.006, be adopted.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.3 CITY PLANNING Cr Caldwell, Chairperson of the City Planning Committee, presented the Report of the City Planning Committee held on Wednesday, 7 June 2017. RESOLUTION G17.0613.008 moved Cr Caldwell seconded Cr Gates That the Report of the City Planning Committee Meeting held on Wednesday, 7 June 2017, covered by Recommendations numbered CP17.0607.001 to CP17.0607.008 be received.

CARRIED UNANIMOUSLY

ITEM 1 PRELIMINARY APPROVAL FOR MATERIAL CHANGE OF USE FOR EIGHTEEN (18) DWELLING HOUSES IN ACCORDANCE WITH A PLAN OF DEVELOPMENT, DEVELOPMENT PERMIT FOR MATERIAL CHANGE OF USE FOR A CHILD CARE CENTRE, DEVELOPMENT PERMIT FOR RECONFIGURING A LOT FOR NINETEEN (19) FREEHOLD LOTS, ROAD AND PARK – LOT 3 ON WD2321 -182 MAUDSLAND ROAD, MAUDSLAND – DIVISION 5 PN182883/12/DA2

Cr PJ Young declared that a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009), due to residents of a nearby property contributed to my election campaign in 2012 and 2016, but that he had considered his position and was firmly of the opinion he/she could participate in debate and vote on this matter in the public interest. Cr PJ Young remained in the room. RESOLUTION G17.0613.009 moved Cr Caldwell seconded Cr Vorster

That Committee Recommendation CP17.0607.001 be adopted as printed in the City Planning Committee Report.

CARRIED Cr PJ Young voted in the positive


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.3 CITY PLANNING (Continued) ITEM 3 DEVELOPMENT PERMIT FOR MATERIAL CHANGE OF USE (CODE

ASSESSMENT) FOR MULTIPLE DWELLINGS, SHORT-TERM ACCOMMODATION AND FOOD AND DRINK OUTLET - LOT 0 ON BUP2761, LOT 0 ON BUP2475, LOT 77 ON RP21845, LOT 78 ON RP21845, LOT 12 ON SP211905 -6-16 FREDERICK STREET AND 18 GARFIELD TERRACE, SURFERS PARADISE – DIVISION 7 PN70869/01/DA1

Cr Caldwell declared that a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009), due to a member of his family being employed by the architects for the project, but that he had considered his position and was firmly of the opinion he could participate in debate and vote on this matter in the public interest. Cr Caldwell remained in the room. Cr Gates declared that a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009), due to parties associated with the application through receipt of donations to the 2012 election campaign, but that she had considered her position and was firmly of the opinion she could participate in debate and vote on this matter in the public interest. Cr Gates remained in the room. RESOLUTION G17.0613.010 moved Cr Caldwell seconded Cr Vorster

That Committee Recommendation CP17.0607.003 be adopted as printed in the City Planning Committee Report.

CARRIED UNANIMOUSLY Cr Caldwell and Cr Gates voted in the positive ITEM 4 CITYWIDE STREETSCAPE DESIGN PRINCIPLES

PD113/81/06(P1) RESOLUTION G17.0613.011 moved Cr Owen-Jones seconded Cr Caldwell

That Committee Recommendation CP17.0607.004 be adopted as printed which reads as follows:- That Attachment A: Citywide Streetscape Design Principles be endorsed to inform City Plan updates.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.3 CITY PLANNING ADOPTION OF THE CITY PLANNING COMMITTEE REPORT RESOLUTION G17.0613.012 moved Cr Caldwell seconded Cr Gates That the Report of the City Planning Committee’s Recommendations of Wednesday, 7 June 2017, numbered CP17.0607.001 to CP17.0607.008, be adopted with the exception of:- Recommendation Numbers CP17.0607.001

CP17.0607.003 and CP17.0607.004 which were specifically resolved.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 GOVERNANCE & ADMINISTRATION Cr Owen-Jones, Chairperson of the Governance & Administration Committee, presented the Report of the Meeting of the Governance & Administration Committee held on Thursday, 8 June 2017. RESOLUTION G17.0613.013 moved Cr Owen-Jones seconded Cr Tozer That the Report of the Governance & Administration Committee Meeting held on Thursday, 8 June 2017 covered by Recommendations numbered GA17.0608.001 to GA17.0608.005 be received.

CARRIED ADOPTION OF GOVERNANCE & ADMINISTRATION COMMITTEE REPORT RESOLUTION G17.0613.014 moved Cr Owen-Jones seconded Cr Tozer That the Report of the Governance & Administration Committee Recommendations of Thursday, 8 June 2017, numbered GA17.0608.001 to GA17.0608.005, be adopted.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.5 ECONOMIC DEVELOPMENT & MAJOR PROJECTS Cr Vorster, Chairperson of the Economic Development & Major Projects Committee, presented the Report of the Meeting of the Economic Development & Major Projects Committee held on Thursday, 8 June 2017. RESOLUTION G17.0613.015 moved Cr Vorster seconded Cr Gates That the Report of the Economic Development & Major Projects Committee Meeting held on Thursday, 8 June 2017 covered by Recommendations numbered ED17.0608.001 to ED17.0608.003 be received.

CARRIED ADOPTION OF ECONOMIC DEVELOPMENT & MAJOR PROJECTS COMMITTEE REPORT RESOLUTION G17.0613.016 moved Cr Vorster seconded Cr O’Neill That the Report of the Economic Development & Major Projects Committee’s Recommendations of Thursday, 8 June 2017, numbered ED17.0608.001 to ED17.0608.003, be adopted.

CARRIED UNANIMOUSLY


AMENDED PAGE 10 CONSIDERATION OF NOTICES OF MOTION Nil 11 QUESTIONS ON NOTICE / ANSWERS TO QUESTIONS ON NOTICE 11.1 EXPENSES REIMBURSEMENT AND PROVISION OF FACILITIES FOR

COUNCILLORS POLICY LG211/361/02(P4) QUESTION: Cr PJ Young asked the following questions to the Chief Executive Officer, in regard to Council’s decision today to alter the Expenses Reimbursement and Provision of Facilities for Councillors Policy: 1 How many relief Councillor Personal Assistant positions will remain when

Council’s decision is enacted?

2 What are the salary levels for all support staff provided to the Mayor? (noting that your answer may require an answer on a confidential basis)

3 Who is responsible for and undertakes responses to queries on the Mayor’s Facebook page whilst the Mayor is in Council or Committee meetings?

4 When will Council’s decision take effect, and in particular, when will the 12 staff whose positions have today been abolished complete their work?

The CEO took the questions on notice. 11.2 EXPENSES REIMBURSEMENT AND PROVISION OF FACILITIES FOR

COUNCILLORS POLICY LG211/361/02(P4) QUESTION: Cr Caldwell asked the following question to the Chief Executive Officer, in regard to Council’s decision today to alter the Expenses Reimbursement and Provision of Facilities for Councillors Policy: Could you please explain why the matter was required to come to Full Council? The CEO took the question on notice. The question was subsequently withdrawn after the meeting. 12 PRESENTATION OF PETITIONS Nil 13 GENERAL BUSINESS Nil


14 OTHER BUSINESS 14.1 APRIL 2017 MONTHLY FINANCIAL REPORT

FN334/375/18(P1)

Refer Attachment 1: 2016-17 Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position – April 2017

1 BASIS FOR CONFIDENTIALITY

Not Applicable. 2 EXECUTIVE SUMMARY

Not Applicable. 3 PURPOSE OF REPORT

The Local Government Act 2009 and the Local Government Regulation 2012 require the Chief Executive Officer to present a financial report to Council on a monthly basis. The attached report is provided to Council in accordance with the above statutory requirements for April 2017.

4 PREVIOUS RESOLUTIONS

Not Applicable.

5 DISCUSSION

Monthly financial reporting to Council is specified under section 204 of the Local Government Regulation 2012. It requires the Chief Executive Officer to present a financial report to Council on a monthly basis, stating the progress that has been made in relation to the local government’s budget. To aid in understanding the budget to actual position a Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position are provided in Attachment 1. The purpose of each statement is summarised below:

2016-17 Special Purpose Statement of Income and Expenditure - The Statement of Income and Expenditure measures Council’s performance over the year and includes all sources of income and all operating expenses. A favourable net result indicates Council is increasing its community equity, i.e. net accumulated financial worth. Combined Statements of Income and Expenditure for Gold Coast Water, Waste Management, Tourist Parks and Other Council Activities are also provided in Attachment 1.

2016-17 Special Purpose Statement of Financial Position - The Statement of Financial Position sets out Council’s net accumulated financial worth at a point in time. It shows the assets that Council holds as well as liabilities or claims against these assets.

These special purpose financial statements are prepared for Council in satisfaction of the statutory requirement noted above. They are extracted directly from the financial system after each month is closed, so the amounts shown in the report reflect unaudited account balances. On rare occasions the report may reflect an adjusted amount, where material errors or omissions in the financial system are known and quantifiable.

The budget figures presented in this report as at 31 April 2017 represent the 2016-17 March Budget Review position, the Council adopted budget at the time of report preparation.

As part of the monthly reporting process, Directorates are requested to identify significant budget trends. A trend is generally caused by an external influence beyond Council’s control (e.g. legislative, economic/financial markets, weather, etc.) and could potentially result in a variation to the level of service provided by Council.


14 OTHER BUSINESS (Continued) 14.1 APRIL 2017 MONTHLY FINANCIAL REPORT (Continued)

FN334/375/18(P1)

2016-17 BASIS OF REPORTING & TREND ANALYSIS

Budget variations are considered in the quarterly budget review process. The March Budget Review was presented to Council on 17 May 2017.

2016-17 Statement of Income and Expenditure - Major Budget Trends Budget Trend $ ( ) = Favourable

Gold Coast Water & Waste Volumetric Water Revenue - Water consumption across the City is significantly higher than forecast. Demand Forecast was increased by 2.6% (1,542 ML) at the March Review. Consumption to date is a further 3.6% higher than that revised forecast, resulting in volumetric revenue being approximately $7 million higher than revised forecasts.

This higher revenue is partially offset by higher Bulk Water Expenses as shown below.

($7,000,000)

Bulk Water Expenses- As noted above, forecast bulk water consumption was increased by 2.6% (1,542 ML) at the March budget review. Bulk water consumption is now a further 3.6% higher than that revised forecast. This equates to expenses being approximately $5 million higher than revised budget.

$5,000,000

Planning & Environment Development Charges Revenue - Development Revenues to the end of April 2017 total $28.2 million and equate to approximately 89% of the total annual revised budget. Approximately $1.3 million of this relates to annual invoicing for Backflow Prevention testing. The remainder largely reflects high workloads in the Plumbing & Drainage, Operational Works and Contributed Assets areas, which is the logical flow-on impact from the high Development Assessment fee revenues experienced last financial year. Planning Assessment (MCU/ROL) is also quite high, predominantly the result of a high level of applications for assessment under a superseded planning scheme, the timeframe for which expired at the end of January 2017.

Development fee revenues have been declining from last financial year's high levels, with average weekly revenue in Quarter 1 being $690,000 million, but only $560,000 in Quarter 3 and $500,000 during Quarter 4 to date, a drop of 27%. Of the total $28.2 million received this year to April, $18.3 million (65%) was received in the first half of the year. Only $9.9 million (35%) has been received during Quarters 3 and 4 to date.

($1,000,000)

Community Services The full cost impact of Ex-Tropical Cyclone Debbie is still being assessed. Costs relating to non-essential public assets will be subject to a Federal Government claim for funding but there is no certainty that this will be successful. An initial estimate of $2.3m has been produced, with $550,000 allocated as part of the March Budget Review with the balance of funding being incorporated into the 2017-18 budget. Community Centre Revenue - strong performance of booking across the Community Centres network is expected to generate a $300,000 surplus of revenue against budget.

($300,000)



FN334/375/18(P1) 2016-17 YEAR TO DATE PROGRESS AND COMPARATIVE ANALYSIS

Progress against capital and operating budgets can be expressed in a series of high level indicators as provided below. These indicators show that revenue and expenditure are generally within expectations at this point in the financial year.

When reviewing the budget to actual position on the statements it should be noted that Council’s budget is prepared on an annual basis, whereas actual figures are presented on a progressive monthly basis. Pro rata comparisons may not be appropriate because actual results may not occur evenly throughout the year, for example when they are influenced by seasonality or when works / programs are ahead of or behind schedule, or progress at a rate which is not uniform throughout the year. Such timing variances do not indicate a need for budget adjustment. Examples of variances which should be addressed through budget adjustments are:

o planning variances where the intended program / outputs have changed;

o cost/efficiency variances, such as savings or over-expenditure, that will not be absorbed within the budget area

o price variances, where the price of inputs changed.

The graphs presented below attempt to take seasonality of budget expenditure into account by comparing actual expenditure and revenue for the year to date to a Previous Year Pattern.

o The Previous Year Pattern percentage shows the percentage of last year’s total expenditure that had been spent at the corresponding time last year based on the final Revised Budget.

o The Previous Year Pattern amount shows the actual reported amount at the corresponding time last year.

Previous Year Pattern for revenue is a similar calculation based on revenue received at the corresponding time last year.



FN334/375/18(P1)

OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget (including reprovisions) for April 2017.

Council has spent $718.3 million from an operating expense budget of $919.0 million in 2016-17. This represents 78.2% expended at 83.3% of the year elapsed.

By comparison 79.8% ($686.8 million) of the previous year’s actual expenditure had been spent from the budget of $861.0 million at the end of April 2016. Major expenses contributing to the increased budget from 2015-16 to 2016-17 includes: Digital City Initiatives, bulk water purchases, Local Government Platform, Commonwealth Games, and Northern Beaches/Palm Beach Shoreline.

CAPITAL EXPENDITURE

The capital expenditure graph shows a comparison of budget (plus commitments) to actual expenditure for capital works in 2016-17.

At the end of April 2017 $206.2 million ($293.0 million inclusive of commitments) had been spent from a total capital budget of $393.1 million. This represents 52.5% (74.6% inclusive of commitments) of the total budget with 83.3% of the year elapsed. Commitments relate to both current year and reprovided projects from 2015-16.

By comparison 48.5% (73.9% inclusive of commitments) of the capital budget ($361.9 million) had been spent at the end of April 2016.

Major projects contributing to the increased budget from 2015-16 to 2016-17 include: higher value of projects carried forward from prior year, Cultural Precinct, Transport trunk infrastructure, and increased spending on capital projects.

Expense - Operating 2016 - 2017 Budget = $919M

78.2%

79.8%

- 200 400 600 800

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Operating Expenditure - Budget v Actual (excl depreciation)

Expense - Capital 2016 - 2017 Budget = $393M

52.5% 74.6%

0 100 200 300 400

Budget

Actual + Commitments

Millions

2016-17 Capital Expenditure - Budget v Actual + Commitments


48.5% 73.9%

0 100 200 300 400

Budget


Millions




FN334/375/18(P1)

OPERATING REVENUES

The graphs below present Council’s major sources of operating revenue. They show the actual year to date performance compared with total year budget and budget trend.

Fees and Charges

Fees and charges (excluding Private Works and Water and Waste Water Fees) were $88.0 million, which is 86.5% of the revised budget of $101.6 million as at the end of April 2017 (83.3% of year elapsed). Building and Development Fees along with Refuse Tipping Fees are exceeding budgeted expectations. By comparison, 88.9% ($87.3 million) of last year’s budget ($98.3 million) for fees and charges revenue had been achieved by the end of April 2016.

Rates and Utility Charges

The amount of rates and utility charges brought to account as at the end of April 2017 was $974.6 million, which is 91.0% (92.3% inclusive of $14 million prepaid rates adjustment) of the total budget of $1,070.9 million. This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.

By comparison, 93.0% ($955.1 million) of last year’s total rates and utility charges revenue budget ($1,026.9 million) had been achieved by the end of April 2016.

Interest Income

Interest income at the end of April 2017 was $25.4 million, which is 88.4% of the budget of $28.8 million.

By comparison, 100.9% ($23.3 million) of last year’s total interest revenue budget ($23.1 million) had been received by the end of April 2016.

The Interest Income budget is above expectations due to higher cash balances and was reviewed in the December

Budget Review based on higher than anticipated opening cash balances and interest rates.

Revenue - Fees & Charges 2016 - 2017 Budget = $102M

86.5%

88.9%

0 20 40 60 80 100

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Fees & Charges Income - Budget v Actual

Revenue - Rates and Utility Charges 2016 - 2017 Budget = $1071M

91.0%

93.0%

0 200 400 600 800 1,000

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2016 - 2017 Budget = $29M

88.4%

100.9%

0 10 20 30

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Interest Income - Budget v Actual



FN334/375/18(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS The April 2017 Monthly Financial Report is presented to Council in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The April 2017 Monthly Financial Report has been developed in consultation with Directorate staff where applicable.

Name and/or Title of the Stakeholder Consulted

Directorate Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Jordan Reeves, Acting Manager Corporate Finance

OCEO Yes

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCEO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCEO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCEO Yes



FN334/375/18(P1) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2016-17 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for April 2017. The high level indicators show that revenue and expenditure are generally within expectations at this point in the financial year. 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for April 2017. Author: Authorised by:

Gary Boyd Joe McCabe Coordinator Financial Management Chief Operating Officer 16 May 2017 RESOLUTION G17.0613.017 moved Cr Crichlow seconded Cr Vorster That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for April 2017.

CARRIED



FN334/375/18(P1) Attachment 1

REVISED BUDGET

1

ACTUALREVISED BUDGET

1


1


1


1

ACTUAL

REVENUERATES & UTILITY CHARGES - - (76,562) (64,314) (468,975) (406,841) (525,366) (503,491) (1,070,903) (974,645) 5

RATES DISCOUNTS & REMISSIONS - - 0 (0) 0 (0) 47,169 46,833 47,169 46,833RATE LEVY CHARGES FOR THIRD PARTIES - - - - - - 0 0 0 0FEES AND CHARGES (17,191) (14,206) (9,988) (9,233) (4,293) (3,608) (74,662) (64,541) (106,134) (91,588)INTEREST REVENUE - - (654) (596) (9,380) (7,691) (18,741) (17,153) (28,775) (25,439)GAIN/LOSS ON SALE OF ASSETS 0 0 0 0 5,000 2,982 (703) 16,846 4,297 19,828CONTRIBUTION & DONATIONS REVENUE - - (845) (863) 4 (95,159) (92,161) 4 (169,835) (146,213) 4 (265,839) (239,237) 4

GRANTS & SUBSIDIES REVENUE - - (97) (30) 0 0 (68,322) (33,170) (68,418) (33,200)OTHER REVENUE (580) (702) 2 (43) (3) 0 (59) (20,816) (17,094) (21,439) (17,858)

TOTAL REVENUE (17,771) (14,907) (88,188) (75,038) (572,807) (507,379) (831,277) (717,983) (1,510,043) (1,315,307)

EXPENSESEMPLOYEE COSTS 647 552 8,967 6,555 45,008 36,374 296,754 238,913 351,377 282,395MATERIALS AND SERVICES 10,789 9,283 68,514 56,973 428,381 342,578 370,836 144,549 878,520 553,382DEPRECIATION & AMORTISATION 1,381 1,253 8,906 6,637 92,000 69,521 168,109 103,326 270,396 180,736FINANCE COSTS 0 12 3 0 (0) 0 1 46,286 35,855 46,286 35,868 6

OTHER EXPENSES 3,612 2,889 999 896 (970) 1,217 76,642 65,504 80,283 70,506CAPITALISED EXPENSES (764) (525) (3,096) (1,490) (72,698) (49,996) (310,564) (116,424) (387,122) (168,433)

TOTAL EXPENSES 15,665 13,464 84,290 69,572 491,722 399,695 648,063 471,724 1,239,740 954,454

NET RESULT (2,106) (1,443) (3,898) (5,466) (81,085) (107,684) (183,214) (246,259) (270,303) (360,853)

1

2

3

4

5

6

This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).

WATER OTHER ACTIVITIES CITY OF GOLD COAST

Finance Costs are processed once quarterly statements are received from Queensland Treasury Corporation.

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST

FOR THE PERIOD ENDED 30 APRIL 2017

GOLD COAST GOLD COAST

(in thousands of dollars)

GOLD COAST

Finance Costs includes credit card surcharges.

Other Revenue is mostly Canteen Revenue and "Revenue Default". The latter is the account to which revenue is posted before being allocated to the appropriate account by journal.It usually contains receipts for the last several days of the month.

Contributions and Donations Revenue comprises capital revenues from cash contributions and contributed assets.

TOURIST PARKS

General explanations of the above line items can be found in Appendix 1

WASTE MANAGEMENT



FN334/375/18(P1)

REVISED BUDGET

1 ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 723,659 978,934 2

CURRENT RECEIVABLES 186,277 202,899 3

INVENTORIES 2,031 1,998PREPAYMENTS 661 893CLEARING ACCOUNTS 0 84 4

912,628 1,184,807

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 5

PROPERTY, PLANT AND EQUIPMENT 13,534,149 13,109,006ASSETS UNDER CONSTRUCTION 0 300,650 6

13,535,299 13,410,806

TOTAL ASSETS 14,447,926 14,595,613

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (86,774) (70,083)UNEARNED REVENUE (3,645) (54,635) 7

CURRENT EMPLOYEE BENEFITS (25,415) (20,282)CURRENT BORROWINGS (71,696) (71,696)CLEARING ACCOUNTS 0 (35) 4

(187,530) (216,731)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (52,434) (59,140)NON CURRENT BORROWINGS (615,747) (612,337)

(668,181) (671,477)

TOTAL LIABILITIES (855,711) (888,208)NET COMMUNITY ASSETS 13,592,215 13,707,405

COMMUNITY EQUITYRETAINED CAPITAL 8,310,180 8,437,774RESERVES 5,282,035 5,269,631 8

TOTAL COMMUNITY EQUITY 13,592,215 13,707,405

1

2

3

4

5

6

7

8

Other Financial Assets are Council's investments in Gold Coast City Council Insurance Co Ltd and SEQ Regional Recreational Facilities Pty Ltd.

The balance of Assets Under Construction is the accumulated expenditure on capital assets that have not yet been completed and added to Property, Plant and Equipment. From a budget perspective it is assumed that by year end all capital works have been completed and moved to Property, Plant and Equipment.

Unearned Revenue includes water rates which have been billed but are treated as unearned and recognised as revenue progressively throughout the year. They will be reduced by year end.

Reserves includes Asset Revaluation Surplus and Cash Reserves.

General explanations of line items can be found in Appendix 1.

Current Receivables includes balances of outstanding invoices and accruals for water rates. It is usually highest after rate notices are issued (July, October, January and April).

Clearing Accounts comprise a number of accounts used to hold balances which are cleared periodically throughout the year, including credit cards, payroll related items and debtor refunds.


SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 30 APRIL 2017


Cash Assets include investments. The balance is usually highest after the close of the discount period for Rates (August and February) and Water (July, October, January and April). The cash balance comprises: (i) Infrastructure Charges Reserve ($291.8m), (ii) Investment Fund Reserve ($98.2m), (iii) Gold Coast Water & Waste reserves ($178.3m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct) ($168.3m) and (iv) Other cash items ($242.4m).



FN334/375/18(P1)

APPENDIX 1 – Explanation of Financial Statement Items This appendix is a general explanation of Council’s revenues, costs, assets and liabilities to aid in understanding the budget to actual comparison in the monthly financial report.

STATEMENT OF INCOME AND EXPENDITURE BY SIGNIFICANT ACTIVITIES

REVENUE FROM ORDINARY ACTIVITIES


Rate revenue for Council will mainly be recorded in July and January upon the issue of rate notices. Rate Revenue for Gold Coast Water is accounted for on an accrual basis throughout the year.

Rates Discount and Remissions

Rate discount is recorded as an expense at the time of payment and will mainly increase in July / August and January / February as rates are paid. However, remission is provided at the time of rate issue and will mainly increase in July and January.

Fees and Charges The pattern of revenue for fees and charges reflects a mixture of billing cycles and seasonal variations. For example, licensing and other charges are mainly billed in the first quarter of the financial year, whereas development assessment receipts may follow building and economic trends.

Gain/Loss on Sale A gain or loss on sale arises when Council assets are disposed of or sold at a value that varies from their book value.

Interest Revenue Interest earned varies according to the cash balances available for investment throughout the year.

Contributions and Donations Revenue

Includes capital revenues from cash contributions and contributed assets. Contributed assets generally account for more than half of this budget which are a ‘book entry’ only and are brought to account through year-end processes.

Grants and Subsidies Revenue

Subsidies are mainly received for specific capital projects after stages of completion are reached.

Other Revenue Other revenue comprises miscellaneous relatively small amounts of revenue that don’t fit into the major categories. It includes Reimbursements and Recoveries, and Rental and Lease Revenue.

EXPENSES FROM ORDINARY ACTIVITIES

Employee Costs The total expenditure on labour, including remuneration and benefits, as well as other employee-related costs such as superannuation, payroll tax and workers compensation.

Materials and Services

Where totals are shown for individual business units, the expenditure on materials and services includes internal transactions.

Depreciation and Amortisation

Non-cash expense that estimates the use and ‘wear and tear’ of non-current assets such as plant, equipment and infrastructure.

Finance Costs Interest on loans, and bank charges.



FN334/375/18(P1)

Other Expenses Other expenses comprises miscellaneous expenses that don’t fit into the major categories. It includes contributions and donations, write offs, insurance premiums and external audit fees.

Capitalised Expenses

This line shows how much of the employee costs and materials and services are used in construction / purchase or major renewal of assets. The budget reflects the total expenditure identified in the Four Year Capital Works Program.

Net Result for Period

This line represents the budgeted increase in community equity to be retained at year end. This is used to fund new capital works and for loan redemption. Transfers to and from capital reserves are made as appropriate.

STATEMENT OF FINANCIAL POSITION

Current assets The cash and cash equivalents that are currently held. The budget shows the budgeted closing balance at the end of the financial year. The actual cash balance will vary significantly throughout the year as rate receipts, loans and major payments are processed. Cash investment is managed by Council’s Treasury Section.

Non Current Assets The budgeted value of property, plant and equipment and infrastructure assets, at year end, including land, roads, water and sewerage infrastructure after depreciation, renewals, new capital works, contributed assets and revaluations are accounted for.

Current Liabilities The present obligations, arising in the past, that Council has to make payments for within the next financial year. The budget shows the expected balance of these liabilities at the end of the financial year. This includes accounts payable and provisions for employee entitlements to annual and long service leave. It also includes the expected commitment to pay loan redemption in the next financial year.

Non-Current Liabilities

The expected balance, at year end, of provisions for employee entitlements and debt that is not required to be paid within the next financial year.

Community Equity Retained equity includes City Capital and any Surplus / Deficit. Reserves include cash-backed reserves representing infrastructure charges and asset revaluation reserves which record the valuation adjustments to Council’s existing non-current assets.


14 OTHER BUSINESS 14.2 MAY 2017 MONTHLY FINANCIAL REPORT FN334/375/18(P1)

Refer Attachment 1: 2016-17 Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position – May 2017

1 BASIS FOR CONFIDENTIALITY

Not Applicable. 2 EXECUTIVE SUMMARY

Not Applicable. 3 PURPOSE OF REPORT

The Local Government Act 2009 and the Local Government Regulation 2012 require the Chief Executive Officer to present a financial report to Council on a monthly basis. The attached report is provided to Council in accordance with the above statutory requirements for May 2017.

4 PREVIOUS RESOLUTIONS

Not Applicable.

5 DISCUSSION

Monthly financial reporting to Council is specified under section 204 of the Local Government Regulation 2012. It requires the Chief Executive Officer to present a financial report to Council on a monthly basis, stating the progress that has been made in relation to the local government’s budget. To aid in understanding the budget to actual position a Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position are provided in Attachment 1. The purpose of each statement is summarised below:

2016-17 Special Purpose Statement of Income and Expenditure - The Statement of Income and Expenditure measures Council’s performance over the year and includes all sources of income and all operating expenses. A favourable net result indicates Council is increasing its community equity, i.e. net accumulated financial worth. Combined Statements of Income and Expenditure for Gold Coast Water, Waste Management, Tourist Parks and Other Council Activities are also provided in Attachment 1.

2016-17 Special Purpose Statement of Financial Position - The Statement of Financial Position sets out Council’s net accumulated financial worth at a point in time. It shows the assets that Council holds as well as liabilities or claims against these assets.

These special purpose financial statements are prepared for Council in satisfaction of the statutory requirement noted above. They are extracted directly from the financial system after each month is closed, so the amounts shown in the report reflect unaudited account balances. On rare occasions the report may reflect an adjusted amount, where material errors or omissions in the financial system are known and quantifiable.

The budget figures presented in this report as at 31 May 2017 represent the 2016-17 March Budget Review position, the Council adopted budget at the time of report preparation.

As part of the monthly reporting process, Directorates are requested to identify significant budget trends. A trend is generally caused by an external influence beyond Council’s control (e.g. legislative, economic/financial markets, weather, etc.) and could potentially result in a variation to the level of service provided by Council.


14 OTHER BUSINESS (Continued) 14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1) 2016-17 BASIS OF REPORTING & TREND ANALYSIS Budget variations are considered in the quarterly budget review process. The March Budget Review was presented to Council on 17 May 2017.


Gold Coast Water & Waste Volumetric Water Revenue - Water consumption across the City is significantly higher than forecast. Demand Forecast was increased by 2.6% (1,542 ML) at the March Review. Consumption to date is 3.4% higher than revised forecast, which is slightly lower than last month. Volumetric revenue remains higher than revised budget due to the overall higher than forecast demand. This higher revenue is partially offset by higher Bulk Water Expenses as shown below.

($7,000,000)

Bulk Water Expenses- As noted above, forecast bulk water consumption was increased by 2.6% (1,542 ML) at the March budget review. Bulk water consumption is now 3.4% higher than revised forecast. This equates to expenses being approximately $5 million higher than revised budget.

$5,000,000

Planning & Environment Development Charges Revenue - Development Revenues to the end of May 2017 total $30.7 million and equate to approximately 97% of the total annual revised budget. This largely reflects high workloads in the Plumbing & Drainage, Operational Works and Contributed Assets areas, which is the logical flow-on impact from the high Development Assessment fee revenues experienced last financial year. Planning Assessment (MCU/ROL) is also quite high, predominantly the result of a high level of applications that were received for assessment under a superseded planning scheme.

Weekly revenue for the first half of 2016-17 averaging $0.68 million, which was similar to the average weekly revenue across 2015-16. This has dropped to $0.56 million during the second half of the financial year.

It is projected that total revenues for the year will exceed revised budget by approximately $1 million and reach approximately $33 million for the year.

($1,000,000)

Community Services The full cost of Ex-Tropical Cyclone Debbie is still being assessed. Costs relating to non-essential public assets will be subject to a Federal Government claim for funding but there is no certainty that this will be successful. An initial estimate of $2.3m has been produced, with $550,000 allocated as part of the March Budget Review with the balance of funding being incorporated into the 2017-18 budget.

TBC

Community Centre Revenue - strong performance of booking across the Community Centres network is expected to generate a $300,000 surplus of revenue against budget.

($300,000)


14 OTHER BUSINESS (Continued) 14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1)


Community Services (Continued) Parking Infringements - year to date infringement recovery rates are trending higher than budget

($400,000)

Office of the Chief Executive Officer Interest on Investments will exceed budget by around $1.8m. Interest rates have remained fairly steady through the year, but cash balances have remained high based on project budgets extending beyond the 2016-17 FY, including large amounts for Commonwealth Games, LGP, Cultural Precinct and Palm Beach Shoreline. The average balance has remained between $900m and $1 billion with an interest rate of around 2.7%.

($1,800,000)

2016-17 YEAR TO DATE PROGRESS AND COMPARATIVE ANALYSIS Progress against capital and operating budgets can be expressed in a series of high level indicators as provided below. These indicators show that revenue and expenditure are generally within expectations at this point in the financial year.

When reviewing the budget to actual position on the statements it should be noted that Council’s budget is prepared on an annual basis, whereas actual figures are presented on a progressive monthly basis. Pro rata comparisons may not be appropriate because actual results may not occur evenly throughout the year, for example when they are influenced by seasonality or when works / programs are ahead of or behind schedule, or progress at a rate which is not uniform throughout the year. Such timing variances do not indicate a need for budget adjustment. Examples of variances which should be addressed through budget adjustments are:

o planning variances where the intended program / outputs have changed; o cost/efficiency variances, such as savings or over-expenditure, that will not be

absorbed within the budget area o price variances, where the price of inputs changed.

The graphs presented below attempt to take seasonality of budget expenditure into account by comparing actual expenditure and revenue for the year to date to a Previous Year Pattern.

o The Previous Year Pattern percentage shows the percentage of last year’s total expenditure that had been spent at the corresponding time last year based on the final Revised Budget.

o The Previous Year Pattern amount shows the actual reported amount at the corresponding time last year.

Previous Year Pattern for revenue is a similar calculation based on revenue received at the corresponding time last year.


14 OTHER BUSINESS (Continued)

14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1)

OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget (including reprovisions) for May 2017.

Council has spent $801.5 million from an operating expense budget of $919.0 million in 2016-17. This represents 87.2% expended at 91.7% of the year elapsed.

By comparison 88.4% ($760.9 million) of the previous year’s actual expenditure had been spent from the budget of $861.0 million at the end of May 2016. Major expenses contributing to the increased budget from 2015-16 to 2016-17 includes: Digital City Initiatives, bulk water purchases, Local Government Platform, Commonwealth Games, and Northern Beaches/Palm Beach Shoreline.

CAPITAL EXPENDITURE

The capital expenditure graph shows a comparison of budget (plus commitments) to actual expenditure for capital works in 2016-17.

At the end of May 2017 $227.7 million ($293.0 million inclusive of commitments) had been spent from a total capital budget of $393.1 million. This represents 57.9% (81.3% inclusive of commitments) of the total budget with 91.7% of the year elapsed. Commitments relate to both current year and reprovided projects from 2015-16.

By comparison 54.6% (77.0% inclusive of commitments) of the capital budget ($361.9 million) had been spent at the end of May 2016.

Major projects contributing to the increased budget from 2015-16 to 2016-17 include: higher value of projects carried forward from prior year, Cultural Precinct, Transport trunk infrastructure, and increased spending on capital projects.

Expense - Operating 2016 - 2017 Budget = $919M

87.2%

88.4%

- 200 400 600 800

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Operating Expenditure - Budget v Actual (excl depreciation)



57.9% 81.3%

0 100 200 300 400

Budget


Millions


54.6% 77.0%

0 100 200 300 400

Budget


Millions



Revenue - Fees & Charges 2016 - 2017 Budget = $102M

94.8%

96.6%

0 20 40 60 80 100

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Fees & Charges Income - Budget v Actual


14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1)

OPERATING REVENUES

The graphs below present Council’s major sources of operating revenue. They show the actual year to date performance compared with total year budget and budget trend.

Fees and Charges

Fees and charges (excluding Private Works and Water and Waste Water Fees) were $96.4 million, which is 94.8% of the revised budget of $101.6 million as at the end of May 2017 (91.7% of year elapsed). Building and Development Fees along with Refuse Tipping Fees are exceeding budgeted expectations. By comparison, 96.6% ($94.9 million) of last year’s budget ($98.3 million) for fees and charges revenue had been achieved by the end of May 2016.


The amount of rates and utility charges brought to account as at the end of May 2017 was $1,019.9 million, which is 95.2% (96.5% inclusive of $14 million prepaid rates adjustment) of the total budget of $1,070.9 million. This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.

By comparison, 97.1% ($996.7 million) of last year’s total rates and utility charges revenue budget ($1,026.9 million) had been achieved by the end of May 2016.

Interest Income

Interest income at the end of May 2017 was $28.1 million, which is 97.7% of the budget of $28.8 million.

By comparison, 112.4% ($25.9 million) of last year’s total interest revenue budget ($23.1 million) had been received by the end of May 2016.

The Interest Income budget is above expectations due to higher cash balances and was reviewed in the December Budget Review based on higher than anticipated opening cash balances and interest rates.

Revenue - Rates and Utility Charges 2016 - 2017 Budget = $1071M

95.2%

97.1%

0 200 400 600 800 1,000

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2016 - 2017 Budget = $29M

97.7%

112.4%

0 10 20 30

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Interest Income - Budget v Actual


14 OTHER BUSINESS (Continued) 14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS The May 2017 Monthly Financial Report is presented to Council in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The May 2017 Monthly Financial Report has been developed in consultation with Directorate staff where applicable.

Name and/or Title of the Stakeholder Consulted

Directorate Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Jordan Reeves, Acting Manager Corporate Finance

OCEO Yes

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCEO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCEO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCEO Yes


14 OTHER BUSINESS (Continued) 14.2 MAY 2017 MONTHLY FINANCIAL REPORT (Continued) FN334/375/18(P1) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2016-17 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for May 2017. The high level indicators show that revenue and expenditure are generally within expectations at this point in the financial year. 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for May 2017. Author: Authorised by:

Gary Boyd Joe McCabe Coordinator Financial Management Chief Operating Officer 7 June 2017 RESOLUTION G17.0613.018 moved Cr Crichlow seconded Cr Vorster That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for May 2017.

CARRIED



Attachment 1

REVISED BUDGET

1


1


1


1


1

ACTUAL

REVENUERATES & UTILITY CHARGES - - (76,562) (71,092) (468,975) (444,621) (525,366) (504,174) (1,070,903) (1,019,888) 5

RATES DISCOUNTS & REMISSIONS - - 0 (0) 0 (0) 47,169 46,945 47,169 46,945RATE LEVY CHARGES FOR THIRD PARTIES - - - - - - 0 (13) 0 (13)FEES AND CHARGES (17,191) (15,473) (9,988) (10,135) (4,293) (3,843) (74,662) (70,818) (106,134) (100,268)INTEREST REVENUE - - (654) (652) (9,380) (8,507) (18,741) (18,954) (28,775) (28,113)GAIN/LOSS ON SALE OF ASSETS 0 0 0 0 5,000 4,611 (703) 23,868 4,297 28,479CONTRIBUTION & DONATIONS REVENUE - - (845) (863) 4 (95,159) (95,263) 4 (169,835) (166,414) 4 (265,839) (262,539) 4

GRANTS & SUBSIDIES REVENUE - - (97) (30) 0 0 (68,322) (51,860) (68,418) (51,890)OTHER REVENUE (580) (492) 2 (43) (3) 0 (59) (20,816) (19,197) (21,439) (19,751)

TOTAL REVENUE (17,771) (15,965) (88,188) (82,775) (572,807) (547,682) (831,277) (760,615) (1,510,043) (1,407,037)

EXPENSESEMPLOYEE COSTS 647 614 8,967 7,295 45,008 40,791 296,754 266,747 351,377 315,447MATERIALS AND SERVICES 10,789 9,923 68,514 62,307 428,381 377,414 370,836 163,953 878,520 613,598DEPRECIATION & AMORTISATION 1,381 1,531 8,906 8,091 92,000 85,146 168,109 126,214 270,396 220,981FINANCE COSTS 0 14 3 0 (0) 0 1 46,286 35,918 46,286 35,933 6

OTHER EXPENSES 3,612 3,152 999 918 (970) 1,263 76,642 73,470 80,283 78,802CAPITALISED EXPENSES (764) (584) (3,096) (1,722) (72,698) (56,140) (310,564) (126,783) (387,122) (185,229)

TOTAL EXPENSES 15,665 14,651 84,290 76,888 491,722 448,474 648,063 539,518 1,239,740 1,079,531

NET RESULT (2,106) (1,314) (3,898) (5,887) (81,085) (99,208) (183,214) (221,097) (270,303) (327,507)

1

2

3

4

5

6

This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.


WATER OTHER ACTIVITIES CITY OF GOLD COAST

Finance Costs are processed once quarterly statements are received from Queensland Treasury Corporation.

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST

FOR THE PERIOD ENDED 31 MAY 2017

GOLD COAST GOLD COAST


GOLD COAST

Finance Costs includes credit card surcharges.

Other Revenue is mostly Canteen Revenue and "Revenue Default". The latter is the account to which revenue is posted before being allocated to the appropriate account by journal.It usually contains receipts for the last several days of the month.

Contributions and Donations Revenue comprises capital revenues from cash contributions and contributed assets.

TOURIST PARKS

General explanations of the above line items can be found in Appendix 1

WASTE MANAGEMENT



REVISED BUDGET

1 ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 723,659 962,616 2

CURRENT RECEIVABLES 186,277 166,095 3

INVENTORIES 2,031 1,908PREPAYMENTS 661 794CLEARING ACCOUNTS 0 (10) 4

912,628 1,131,403

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 5

PROPERTY, PLANT AND EQUIPMENT 13,534,149 12,540,748ASSETS UNDER CONSTRUCTION 0 287,370 6

13,535,299 12,829,268

TOTAL ASSETS 14,447,926 13,960,671

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (86,774) (61,137)UNEARNED REVENUE (3,645) (28,055) 7

CURRENT EMPLOYEE BENEFITS (25,415) (20,420)CURRENT BORROWINGS (71,696) (71,696)CLEARING ACCOUNTS 0 1,129 4

(187,530) (180,180)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (52,434) (59,811)NON CURRENT BORROWINGS (615,747) (612,245)

(668,181) (672,056)

TOTAL LIABILITIES (855,711) (852,236)NET COMMUNITY ASSETS 13,592,215 13,108,435

COMMUNITY EQUITYRETAINED CAPITAL 8,310,180 8,446,653RESERVES 5,282,035 4,661,783 8

TOTAL COMMUNITY EQUITY 13,592,215 13,108,435

1

2

3

4

5

6

7

8

Other Financial Assets are Council's investments in Gold Coast City Council Insurance Co Ltd and SEQ Regional Recreational Facilities Pty Ltd.The balance of Assets Under Construction is the accumulated expenditure on capital assets that have not yet been completed and added to Property, Plant and Equipment. From a budget perspective it is assumed that by year end all capital works have been completed and moved to Property, Plant and Equipment.

Unearned Revenue includes water rates which have been billed but are treated as unearned and recognised as revenue progressively throughout the year. They will be reduced by year end.Reserves includes Asset Revaluation Surplus and Cash Reserves.

General explanations of line items can be found in Appendix 1.

Current Receivables includes balances of outstanding invoices and accruals for water rates. It is usually highest after rate notices are issued (July, October, January and April).Clearing Accounts comprise a number of accounts used to hold balances which are cleared periodically throughout the year, including credit cards, payroll related items and debtor refunds.


SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 31 MAY 2017

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).Cash Assets include investments. The balance is usually highest after the close of the discount period for Rates (August and February) and Water (July, October, January and April). The cash balance comprises: (i) Infrastructure Charges Reserve ($298.5m), (ii) Investment Fund Reserve ($98.2m), (iii) Gold Coast Water & Waste reserves ($178.3m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct) ($161.5m) and (iv) Other cash items ($226.1m).



APPENDIX 1 – Explanation of Financial Statement Items This appendix is a general explanation of Council’s revenues, costs, assets and liabilities to aid in understanding the budget to actual comparison in the monthly financial report.

STATEMENT OF INCOME AND EXPENDITURE BY SIGNIFICANT ACTIVITIES

REVENUE FROM ORDINARY ACTIVITIES


Rate revenue for Council will mainly be recorded in July and January upon the issue of rate notices. Rate Revenue for Gold Coast Water is accounted for on an accrual basis throughout the year.

Rates Discount and Remissions

Rate discount is recorded as an expense at the time of payment and will mainly increase in July / August and January / February as rates are paid. However, remission is provided at the time of rate issue and will mainly increase in July and January.

Fees and Charges The pattern of revenue for fees and charges reflects a mixture of billing cycles and seasonal variations. For example, licensing and other charges are mainly billed in the first quarter of the financial year, whereas development assessment receipts may follow building and economic trends.

Gain/Loss on Sale A gain or loss on sale arises when Council assets are disposed of or sold at a value that varies from their book value.

Interest Revenue Interest earned varies according to the cash balances available for investment throughout the year.

Contributions and Donations Revenue

Includes capital revenues from cash contributions and contributed assets. Contributed assets generally account for more than half of this budget which are a ‘book entry’ only and are brought to account through year-end processes.

Grants and Subsidies Revenue

Subsidies are mainly received for specific capital projects after stages of completion are reached.

Other Revenue Other revenue comprises miscellaneous relatively small amounts of revenue that don’t fit into the major categories. It includes Reimbursements and Recoveries, and Rental and Lease Revenue.

EXPENSES FROM ORDINARY ACTIVITIES

Employee Costs The total expenditure on labour, including remuneration and benefits, as well as other employee-related costs such as superannuation, payroll tax and workers compensation.

Materials and Services

Where totals are shown for individual business units, the expenditure on materials and services includes internal transactions.

Depreciation and Amortisation

Non-cash expense that estimates the use and ‘wear and tear’ of non-current assets such as plant, equipment and infrastructure.

Finance Costs Interest on loans, and bank charges.



Other Expenses Other expenses comprises miscellaneous expenses that don’t fit into the major categories. It includes contributions and donations, write offs, insurance premiums and external audit fees.

Capitalised Expenses

This line shows how much of the employee costs and materials and services are used in construction / purchase or major renewal of assets. The budget reflects the total expenditure identified in the Four Year Capital Works Program.

Net Result for Period

This line represents the budgeted increase in community equity to be retained at year end. This is used to fund new capital works and for loan redemption. Transfers to and from capital reserves are made as appropriate.

STATEMENT OF FINANCIAL POSITION

Current assets The cash and cash equivalents that are currently held. The budget shows the budgeted closing balance at the end of the financial year. The actual cash balance will vary significantly throughout the year as rate receipts, loans and major payments are processed. Cash investment is managed by Council’s Treasury Section.

Non Current Assets The budgeted value of property, plant and equipment and infrastructure assets, at year end, including land, roads, water and sewerage infrastructure after depreciation, renewals, new capital works, contributed assets and revaluations are accounted for.

Current Liabilities The present obligations, arising in the past, that Council has to make payments for within the next financial year. The budget shows the expected balance of these liabilities at the end of the financial year. This includes accounts payable and provisions for employee entitlements to annual and long service leave. It also includes the expected commitment to pay loan redemption in the next financial year.

Non-Current Liabilities

The expected balance, at year end, of provisions for employee entitlements and debt that is not required to be paid within the next financial year.

Community Equity Retained equity includes City Capital and any Surplus / Deficit. Reserves include cash-backed reserves representing infrastructure charges and asset revaluation reserves which record the valuation adjustments to Council’s existing non-current assets.


14 OTHER BUSINESS 14.3 REVENUE POLICY 2017-18 FN334/375/19(P1) 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to present to Council the Revenue Policy for its consideration for 2017-18. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION In accordance with the provisions of the Local Government Act 2009 and Local Government Regulation 2012, each year Council must prepare and adopt by resolution its Revenue Policy. The Special Budget Committee endorsed the 2017-18 Revenue Policy for referral to Council for adoption at its meeting to be held on 13 June 2017. 5.1 Objective of the Policy The objective of the Revenue Policy is to raise a sufficient revenue base for Council to:

Ensure a balanced budget and provide a strong financial basis for effective management of expenditure programmes and debt;

Provide services to the community based on principles of intergenerational equity;

Sustain operating capability on a long term basis; and

Encourage a strong, growing and sustainable local economy with appropriate levels of infrastructure assets and facilities.

Provide certainty of funding for the provision of infrastructure identified by Council in its long-term strategic financial plans.

This policy refers to all matters relating to rates, fees, charges, concessions, rates rebates, reserves, community service obligations and the recovery of rates and charges. 5.2 Key Elements of the Revenue Policy Rates and Charges Council’s rate setting and charging structures are based on the following principles, where applicable:


14 OTHER BUSINESS (Continued) 14.3 REVENUE POLICY 2017-18 (Continued) FN334/375/19(P1)

Equity – ensuring the fair and consistent application of lawful rating and charging principles, without bias, taking account of all relevant considerations.

Effectiveness/Efficiency – meeting the financial, social, economic, and environmental, and other corporate objectives stated in Council’s Corporate Plan and other adopted policies; and

Simplicity – to ensure widespread community or stakeholder understanding of a complex system.

Sustainability - revenue decisions support the financial strategies for the continued delivery of infrastructure and services identified in Council's long term planning.

These principles apply to the following activities:

making rates and charges;

levying rates and charges;

recovering rates and charges;

granting and administering rates and charges concessions;

charging for local government services and facilities;

charging for competitive services and facilities;

charging for business services and facilities (subject to National Competition Policy);

funding Council infrastructure;

imposing cost-recovery fees. In making all rates and charges Council will have regard to:

transparency - to inform the community of the basis of those rates and charges and hence Council’s accountability;

creating a rating regime that is cost effective to administer;

flexibility - taking account of changes in the local economy. Concessions/Rebates Subject to the conditions determined from time to time in Council’s Pensioner Rates

Rebate Policy, Council may grant rebates on rates and charges to assist ratepayers who utilise the property as their principal place of residence:

o a person who holds a current Queensland issued Repatriation Health Card for All Conditions (issued by the Department of Veteran Affairs); or

o a person who holds a current Queensland issued Pensioner Concession Card; or



o a person who:

receives a Widow’s Allowance; and

holds a current Queensland issued Health Care Card; and

received a rates rebate from Council before the death of their partner.

Council may grant rebates of rates and charges to assist non-profit community organisations of the classes identified in Council’s Rate Donation, Infrastructure Charges and Development Application Fee Discount Policy.

Subject to the conditions determined from time to time in Council’s Voluntary Conservation Agreement Scheme Policy, Council may grant rebates of differential general rates to assist ratepayers, who are parties to Voluntary Conservation Agreements with Council, to manage the natural value of their land parcels the subject of the agreements.

In accordance with the Water and Sewerage Service Code for Small Customers in South East Queensland and subject to the conditions determined from time to time in Council’s Concealed Water Leaks Policy, Council may grant rebates of water and sewage (wastewater) consumption charges, to relieve ratepayers from some of the unexpected financial burden, caused by a concealed underground water leak.

Subject to the conditions determined from time to time in Council’s Water Usage for Genuine Fire Emergencies Policy, Council may grant rebates of water and sewage (wastewater) consumption charges, to relieve ratepayers from the unexpected financial burden, caused by usage of water to fight a fire in order to protect their home or business.

Subject to the conditions determined from time to time in Council’s Concession for Water Consumption Charges Due To Renal Dialysis Patients Dialysing at Home Policy, Council may grant rebates of water and sewage (wastewater) consumption charges, to relieve ratepayers who are renal dialysis patients, from the additional financial burden, caused by a need to have dialysis at home.

Discount Council reserves the right to provide ratepayers with a prompt payment discount on certain rates and charges under certain conditions as defined in Council's Revenue Statement. Deferments Council may defer payment of specific rates to assist those pensioners (as defined in Council’s Pensioner Rates Rebate Policy) and Seniors Card holders who are utilising the property as their principal place of residence until their circumstances change or the property ownership changes. Rates available for deferment are:

The differential general rate or part thereof in an ongoing capacity, and/or

All rates and charges at a point in time where the eligible ratepayers may seek a one-off deferment as the account is being considered for Sale of Land action under the Local Government Regulations.


14 OTHER BUSINESS (Continued) 14.3 REVENUE POLICY 2017-18 (Continued) FN334/375/19(P1) Instalments Council may agree to allow the payment of rates and charges by instalments upon terms consistent with its Debt Recovery Policy as determined from time to time. Recovery of Rates and Charges Council will exercise its rate recovery powers to reduce the overall rate burden on ratepayers, in which respect,

it will ensure transparency by making clear the obligations of ratepayers and the processes used by Council in assisting them meet their financial obligations;

it will make the processes used to recover outstanding rates and charges simple to administer and cost-effective;

it will critically evaluate the prospects of success before undertaking recovery action, to minimise prospective wastage of its resources in pursuit of irrecoverable money;

it will act consistently, to provide the similar treatment for ratepayers with similar circumstances; and

it will be flexible by responding where necessary to changes in the local economy. Community Service Obligations S24 of the Local Government Regulation 2012 defines a community service obligation (CSO) as an obligation that the local government imposes on a business entity to do something that is not in the interests of the business entity to do. An example would be to provide certain refuse services for community groups at no charge or to give a price concession to a specific group of customers. CSOs will be based on the agreed unit price and the estimated quantity to be provided. Each CSO will be approved by Council and developed in accordance with the process for establishing a Community Service Obligation. The cost of carrying out the Community Service Obligations (less any revenue received from performing the obligations) must be treated as revenue of the significant business activity. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN This policy relates to:-

Corporate Plan Outcome B – “We manage the city responsibly”

The related Key Program of work is to manage the short and long term financial sustainability of the city through prudent financial management and ensuring value for money.



14.3 REVENUE POLICY 2017-18 (Continued) FN334/375/19(P1) 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable.

9 RISK MANAGEMENT The Revenue Policy 2017-18 provides Council with a basis to manage its revenue activities in 2017-18 and support both short term and long term financial sustainability. Reference is made to the following risk;

Risk Number Description

Risk No.

CO000435

Changing internal and external financial environment that impacts on Council’s short-medium term financial position.

10 STATUTORY MATTERS Section 193 of the Local Government Regulation 2012: Section 193 Revenue policy (1) A local government’s revenue policy for a financial year must state—

(a) the principles that the local government intends to apply in the financial year for—

(i) levying rates and charges; and

(ii) granting concessions for rates and charges; and

(iii) recovering overdue rates and charges; and

(iv) cost-recovery methods; and

(b) if the local government intends to grant concessions for rates and charges—the purpose for the concessions; and

(c) the extent to which physical and social infrastructure for a new development are to be funded by charges for the development.

(2) The Revenue Policy may state guidelines that may be used for preparing the local government’s Revenue Statement.

(3) A local government must review its Revenue Policy annually and in sufficient time to allow an annual budget that is consistent with the Revenue Policy to be adopted for the next financial year.

11 COUNCIL POLICIES Not Applicable.


14 OTHER BUSINESS (Continued) 14.3 REVENUE POLICY 2017-18 (Continued)

FN334/375/19(P1) 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Consultation has taken place with all relevant stakeholders in preparing the Revenue Policy 2017-18.

Name and Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No)

Executive Coordinator Revenue Services

Organisational Services Yes

Chief Operating Officer Office of the Chief Executive Officer

Yes

14 STAKEHOLDER IMPACTS

The development of a Revenue Policy fulfils a statutory requirement and demonstrates good corporate governance by making transparent the means by which Council intends to raise its revenue and any conditions affecting that activity (e.g. Community Service Obligations). This has benefits for both external and internal stakeholders. 15 TIMING Adoption of the 2017-18 budget has been scheduled for 19 June 2017. The Revenue Policy must be adopted by Council prior to the adoption of budget. The policy will take effect on 1 July 2017. 16 CONCLUSION The adoption of the Revenue Policy 2017-18 will satisfy statutory requirements and provide Council with a policy for the efficient management of its revenue activities in 2017-18. 17 RECOMMENDATION It is recommended that Council resolves as follows: That the Revenue Policy for 2017-18 (as attached to the report) be adopted.

Author: Authorised by:

John Blair Joe McCabe Manager Corporate Finance Chief Operating Officer 6 June 2017

TRACKS REF: \ 62363802 RESOLUTION G17.0613.019 moved Cr Vorster seconded Cr Baildon That the Revenue Policy for 2017-18 (as attached to the report) be adopted.

CARRIED There being no further business, the meeting was declared closed at 1.53pm.


14 OTHER BUSINESS (Continued) 14.3 REVENUE POLICY 2017-18 (Continued)

FN334/375/19(P1)


I hereby certify that these pages Numbered 1 to 75 constitute

The Minutes of the Meeting

of the Council of the City of Gold Coast

held Tuesday, 13 June 2017.

................................................................. MAYOR

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