Adopted Minutes Council Meeting - City of Gold Coast · 2019. 6. 23. · Solar Panels and Energy Saving Announcement Ratepayers will start saving in excess of $100,000 annually now

749

Adopted Minutes of the

Council Meeting held

Wednesday 31 January 2018

at

1pm

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

749th Council Meeting 2 31 January 2018 Adopted Minutes

INDEX

Adopted Minutes (749)

Council Meeting

Wednesday 31 January 2018

ITEM SUBJECT

1 ATTENDANCE / LEAVE OF ABSENCE

2 CONDOLENCES

2.1 The Hancock Family Cr Crichlow

2.2 The Belloff Family Cr Crichlow

2.3 The Sparks Family Cr P J Young

2.4 The Wilson & Hills Family Cr Gates

3 MAYORAL MINUTE

4 CONFIRMATION OF MINUTES

4.1 The Seven Hundred and Forty Eighth Ordinary Meeting of the Council of the City of Gold Coast, held Friday 8 December 2017 at 10am.

5 MAYOR’S REPORT

6 CLARIFICATION – MEMBERS

7 BUSINESS ARISING FROM MINUTES

8 PRESENTATIONS

9 RECEPTION AND CONSIDERATION OF COMMITTEE REPORTS

9.1 Transport and Infrastructure 23 January 2018

9.2 Lifestyle and Community 23 January 2018

9.3 Economy, Planning and Environment 24 January 2018

9.4 Water & Waste 25 January 2018

9.5 Events, Tourism and Governance 25 January 2018

10 CONSIDERATION OF NOTICES OF MOTION

11 QUESTIONS ON NOTICE / ANSWERS TO QUESTIONS ON NOTICE

12 PRESENTATION OF PETITIONS

13 GENERAL BUSINESS

13.1 Gold Coast Homelessness Network Cr Crichlow


ITEM SUBJECT

13.2 Gold Coast Regional Botanic Gardens Cr Taylor

13.3 Developments Traffic & Parking Management Plans Cr Taylor

13.4 Early Review Parking Permit Scheme Cr Taylor

13.5 Water Charges Class A Cr Gates

13.6 Gold Coast Show Society Cr Baildon

14 OTHER BUSINESS

14.1 November 2017 Monthly Financial Report

14.2 December 2017 Monthly Financial Report

14.3 CGC2018 Briefing


ADOPTED AT COUNCIL 13 FEBRUARY 2018 RESOLUTION G18.0213.003 moved Cr PJ Young seconded Cr Tozer That the Minutes of the Seven Hundred and Forty Ninth Ordinary Meeting of the Council of the City of Gold Coast held on Wednesday 31 January 2018 at 1pm be confirmed with a correction to the condolence of the Sparks Family. The condolence was moved by Cr PJ Young.

CARRIED Minutes of the Seven Hundred and Forty Ninth 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 Wednesday 31 January 2018 at 1pm. The Mayor, Cr T R Tate, welcomed Pastor Matt Hunt of Crosslife Baptist Church Helensvale, 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 Mr D R Dickson Chief Executive Officer Mr A J McCabe Chief Operating Officer Mr A Twine Director Transport and Infrastructure Ms A Ewens Director Lifestyle and Community Mr P Heaton Director Water & Waste Mr G Potter Director Organisational Services Mr M Moran Acting Director Economy, Planning & Environment 1.1 LEAVE OF ABSENCE / APOLOGIES RESOLUTION G18.0131.001 moved Cr La Castra seconded Cr P C Young That the apology from Cr O’Neill be noted.

CARRIED


2 CONDOLENCES Cr Crichlow To The Hancock Family On the passing of Wendy Hancock RESOLUTION G18.0131.002 moved Cr Crichlow seconded Cr McDonald That a motion of condolence be passed and that a message of sympathy be forwarded.

CARRIED

Cr Crichlow To The Belloff Family On the passing of Norma Patricia June Belloff RESOLUTION G18.0131.003 moved Cr Crichlow seconded Cr McDonald That a motion of condolence be passed and that a message of sympathy be forwarded.

CARRIED

Cr P J Young To The Sparks Family On the passing of Diane Sparks RESOLUTION G18.0131.004 moved Cr PJ Young seconded Cr Caldwell That a motion of condolence be passed and that a message of sympathy be forwarded.

CARRIED

Cr Gates To The Wilson & Hills Family On the passing of Brittany Hills RESOLUTION G18.0131.005 moved Cr Gates seconded Cr Boulton That a motion of condolence be passed and that a message of sympathy be forwarded.

CARRIED


3 MAYORAL MINUTE Nil 4 CONFIRMATION OF MINUTES RESOLUTION G18.0131.006 moved Cr Caldwell seconded Cr Vorster That the Minutes of the Seven Hundred and Forty Eighth Ordinary Meeting of the Council of the City of Gold Coast held on Tuesday 8 December 2017 at 10am 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)

Announcement of Adult Mobility Changing Facilities

Cr Pauline Young attended.

We had the pleasure of officially announcing the opening of the new Changing Spaces facility at John Laws Park in Burleigh.

This brings the number of facilities to 4 – Burleigh Heads, Pratten Park in Broadbeach, Broadwater Parklands and Carrara Indoor Sports Centre.

The new Burleigh facility includes a height adjustable changing bench, ceiling hoist, shower and toilet and the doorway has been designed to accommodate beach wheelchairs.

I am so pleased we can support infrastructure like this in our city to make sure we enhance the lifestyle and wellbeing of all residents and visitors, regardless of age or ability.

This is the City's Accessible and Inclusive City Action Plan in action, removing barriers and improving access across the Gold Coast.



Solar Panels and Energy Saving Announcement

Ratepayers will start saving in excess of $100,000 annually now that we have ‘flicked the switch’ on solar panels at the Gold Coast Aquatic Centre.

Solar power will now supply the centre’s energy needs, creating significant savings for ratepayers - we are the Sunshine State after all!

The centre has been fitted with a 312 kilowatt solar array and more than 1100 panels, and after the Commonwealth Games we will also trial a 300kWh battery to achieve further savings.

Visitors are able to see exactly how much energy is being produced via an LED screen at the entrance to the pool.

Our annual electricity expenditure has almost doubled over the past 10 years and we need to reduce our reliance on the current system by investing in alternative energy sources.

In the next few months, the City will deliver over $4 million worth of energy savings initiatives, including solar and batteries to the City’s administration buildings, depots, aquatic centres, libraries and community venues.



Annual Beach Inspection

Shortly the Gold Coast will host the Commonwealth Games and there will be 1.5 billion people viewing our city and one image will be “Wow those beaches are the best in the world!”

That’s why we’re spending close to $20 million this year protecting our beaches – most on dredging to keep the sand on our beaches.

It was great to see this work paying off – with some beaches gaining 20 metres.



Presentation of Commemorative Surf Board from Light Rail Stage 2 Opening

Phil Mumford from GoldlinQ dropped in to present me with one of the surf boards from the Stage 2 opening of the Light Rail.

While it’s a great commemorative item from the opening, its significance lies in the three levels of government who have supported this project.

I look forward to adding another board when we open Stage 3A!



Official Opening of Varsity Lakes Outdoor Gym

Cr Hermann Vorster attended.

I joined with the Councillor to open the City’s largest outdoor gym space nicknamed ‘the hanger’.

I commend Cr Vorster for investing in community infrastructure that helps improve our active and healthy lifestyle.



Announcement of Water Refill Stations

We have just installed 14 new Water Refill Points across the city, where you can fill up your water bottle or use the good old bubbler.

These upgrades even cater to dogs too.

Completed installations are located at:

John Laws Park, Burleigh Heads

Justins Park (north), Burleigh Heads

Mick Schamburg Park, Miami

Installations scheduled for January to February 2018 will be located at:

Pat Fagan Park, Rainbow Bay

Victoria Park, Broadbeach

Kurrawa Park, Broadbeach

Pratten Park, Broadbeach

Esplanade, Surfers Paradise

Cavill Mall, Surfers Paradise



ABC Interview City Fibre Optics

I took the opportunity to spruik the city's future planning via installation of our own fibre optic caballing on ABC News Breakfast.

We want this installed seamlessly – which can be 10 times faster than the NBN.

This is all about creating local jobs and opportunities for businesses to invest here.



Narrowneck Reef Update

Works are progressing well – on time and on budget.

As we know:

64 new geotextile sand containers have been placed on the artificial reef … each the size of a bus.

83 is our aim with the bags raising the reef by 3m.

$2 million investment to protect the narrow, vulnerable stretch of Narrowneck foreshore.

Project is due to be completed by the end of February.



Illegal Dumping Message

I had a very blunt message to illegal dumpers - we are watching you.

I’m pleased to see our covert cameras working, as we are working with the QPS sending information sent direct to the police.

We have deployed 190 cameras in the last 4 years – and issued $45,000 in fines.

The cameras are camouflaged and are located in unexpected locations, so for anyone thinking about dumping something in this city- we are watching you.



Announcement of Mobility BBQs

On the back of our new Adult Changing Places, we are installing mobility BBQs across the city.

We’ve modified our traditional BBQ design to allow for improved wheelchair access.

Safety is the priority and these are safe for all users.

We are installing 10 Wheelchair Accessible BBQs – from Upper Coomera to Hope Island and Surfers.

As BBQs require replacing, we will look to make the new ones mobility friendly as that design suits everyone.

Locations:

Broadwater Parklands x 2

Charles Holm Park, Hope Island

Esplanade South Park x 2, Surfers Paradise

John Siganto Park, Upper Coomera

Mermaid Park, Mermaid Beach

Neddy Harper and William Duncan Park, Surfers Paradise

Quota Park, Biggera Waters

Schuster’s Park. Tallebudgera

Lions Park, Tallebudgera Valley



2018 Australia Day Awards Presentation Ceremony

Cr Gates, Cr Caldwell, Cr Baildon, Cr McDonald, Cr O'Neill, Cr Owen-Jones and Cr Crichlow attended.

Congratulations to Karen Phillips who was named Gold Coast Citizen of the Year for 2018.

Karen is a journalist, public relations specialist and fundraiser who also runs the Early Risers Gold Coast Women in Business Club.

These annual Australia Day Awards recognise local people or groups who have made an outstanding contribution to the Gold Coast community.

The other winners were:

The Gold FM Community Service Award has gone to ironman and lifesaving legend Trevor Hendy for his transformational program “Boot Camp For The Soul” and motivating people to make positive life changes.

Currumbin Hospital’s vet Dr Michael Pyne has taken out the Environmental Achievement Award for his relentless work in caring for our sick and injured wildlife (around 10,000 animals are treated annually).

The Cultural Achievement Award has been awarded to artist Lisa Sorbie Martin who has enjoyed a 35 year career as a painter, textile artist and fashion designer, with her most recent achievement the artwork for the Broadwater Parklands Mangrove Deck.

Olympic gold medallist Sally Pearson claimed the Sports Achievement Award. Sally is a GC2018 Ambassador and a motivator and mentor to many.

Teenager Madison Birtchnell has been awarded the Young Citizen of the Year for her many years of volunteer work, leadership skills and fundraising efforts.



Launch of Festival 2018

Cr Gates and Cr Caldwell attended.

Our reputation for staging major sporting events is world-class. We are achieving the same standing as a world leader in arts and culture.

Our Bleach* Festival is an absolute winner and it is underpinning our growing reputation for cultural tourism.

Festival 2018 Gold Coast will feature 160 works, over 1,000 performances, employ 1,440 artists and feature 35 world premieres, 15 Australian premieres and 20 Indigenous works.

The Festival 2018 Gold Coast action will take place at two main festival sites, Surfer’s Paradise and Broadbeach, NightQuarter at Helensvale, as well as an array of activations across the coast.

Bleach* Festival will collaborate with Festival 2018 to co-commission and produce integral works to the Festival 2018 artistic program including over 20 new works, a number of world premieres and numerous local engagement opportunities.

Bleach* Festival will benefit from collaborating with Festival 2018 through increased investment in Gold Coast’s arts and cultural sector that will leave a legacy for the Gold Coast community.

As well as live performances Festival 2018 will feature public art and other activations throughout the community from Coomera to Coolangatta, accessible to the residents of and visitors to the Gold Coast.

To find out the latest information on Festival 2018 visit gc2018.com/festival2018

RESOLUTION G18.0131.007 moved Cr Tate seconded Cr Gates That the Mayor’s Report be welcomed and noted.

CARRIED


6 CLARIFICATION - MEMBERS Nil 7 BUSINESS ARISING FROM MINUTES 7.1 Cr Crichlow Business arising from 748 Council Minutes dated 8 December 2017 – Other Business - Item 14.5 – Economic Development & Major Projects Working Review group – Committee – Recommendations.

Cr Crichlow raised the following questions on notice:

1 Did Council endorse the formation of an EDMP Review Committee on the 31 January 2017?

2 Were the Councillors nominated for this committee to be Cr T Tate, Cr H Vorster, Cr G O'Neill, Cr D Gates and Cr G Baildon?

3 On a recommendation from Council on the 31 October 2017 the working review group were signed off by Cr T Tate, Cr D Gates, Cr G Baildon, Cr H Vorster, Cr G O'Neill plus 2 other Councillors, Cr C Caldwell and Cr PC Young.

Why were the other two Councillors brought in without discussion of full Council?

4 When was this review committee changed by Council or if not who made the change?

5 How many meetings have been held from the 31 January 2017 to 31 October 2017?

Who attended these meetings?

Where are the minutes?

Will they be made available?

6 How many meetings did the CEO attend?

7 Was a meeting of the review committee held at the Mayor’s home prior to the last Council meeting on the 8 December 2017?

8 If so, which Councillors were invited to attend?

9 Which Councillors attended?

10 Was an agenda sent to the review committee prior to this meeting?

11 Were there minutes taken? 8 PRESENTATIONS Nil


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS 9.1 TRANSPORT AND INFRASTRUCTURE Cr P C Young, Chairperson of the Transport and Infrastructure Committee, presented the Report of the Meeting of the Transport and Infrastructure Committee held on Tuesday, 23 January 2018. RESOLUTION G18.0131.008 moved Cr P C Young seconded Cr Taylor That the Report of the Transport and Infrastructure Committee Meeting held on Tuesday, 23 January 2018, covered by Recommendations numbered TI18.0123.001 to TI18.0123.004, be received.

CARRIED

ADOPTION OF THE TRANSPORT AND INFRASTRUCTURE COMMITTEE REPORT RESOLUTION G18.0131.009 moved Cr P C Young seconded Cr Taylor That the Report of the Transport and Infrastructure Committee Meeting of Tuesday, 23 January 2018, covered by Recommendations numbered TI18.0123.001 to TI18.0123.004, be adopted.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.2 LIFESTYLE AND COMMUNITY Cr Vorster, Chairperson of the Lifestyle and Community Committee, presented the Report of the Meeting of the Lifestyle and Community Committee held on Tuesday, 23 January 2018. RESOLUTION G18.0131.010 moved Cr Vorster seconded Cr Gates That the Report of the Lifestyle and Community Committee Meeting held on Tuesday, 23 January 2018, covered by Recommendations numbered LC18.0123.001 to LC18.0123.006, be received.

CARRIED ITEM 5 GOLD COAST CULTURAL PRECINCT – PROPOSED NAME AND BRAND

LG426/717/-(P10) RESOLUTION G18.0131.011 moved Cr Vorster seconded Cr Gates

That Committee Recommendation LC18.0123.005 be not adopted, but in lieu thereof reads as follows: 1 That Council accepts the recommendation from the Gold Coast Arts Centre board

of the name and brand of the Gold Coast Cultural Precinct. 2 That the name remains confidential ahead of the planned launch to be conducted

by the Gold Coast Arts Centre.

CARRIED UNANIMOUSLY ADOPTION OF LIFESTYLE AND COMMUNITY COMMITTEE REPORT RESOLUTION G18.0131.012 moved Cr Vorster seconded Cr Gates That the Report of the Lifestyle and Community Committee’s Recommendations of Tuesday, 23 January 2018, numbered LC18.0123.001 to LC18.0123.006, be adopted with the exception of Recommendation Number LC18.0123.005 which was specifically resolved.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.3 ECONOMY PLANNING AND ENVIRONMENT Cr Caldwell, Chairperson of the Economy, Planning and Environment Committee, presented the Report of the Economy, Planning and Environment Committee held on Wednesday, 24 January 2018. RESOLUTION G18.0131.013 moved Cr Caldwell seconded Cr Gates That the Report of the Economy, Planning and Environment Committee Meeting held on Wednesday, 24 January 2018, covered by Recommendations numbered EPE18.0124.001 to EPE18.0124.005 be received.

CARRIED ADOPTION OF THE ECONOMY, PLANNING AND ENVIRONMENT COMMITTEE REPORT RESOLUTION G18.0131.014 moved Cr Caldwell seconded Cr Gates That the Report of the Economy, Planning and Environment Committee’s Recommendations of Wednesday, 24 January 2018, numbered EPE18.0124.001 to EPE18.0124.005, be adopted.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 WATER & WASTE Cr Taylor, Chairperson of the Water & Waste Committee, presented the Report of the Water & Waste Committee held on Thursday, 25 January 2018. RESOLUTION G18.0131.015 moved Cr Taylor seconded Cr Boulton That the Report of the Water & Waste Committee Meeting held on Thursday, 25 January 2018, covered by Recommendations numbered WW18.0125.001 to WW18.0125.008 be received.

CARRIED ADOPTION OF THE WATER & WASTE COMMITTEE REPORT RESOLUTION G18.0131.016 moved Cr Taylor seconded Cr Boulton That the Report of the Water & Waste Committee’s Recommendations of Thursday, 25 January 2018, numbered WW18.0125.001 to WW18.0125.008, be adopted.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.5 EVENTS, TOURISM AND GOVERNANCE Cr La Castra, Chairperson of the Events, Tourism and Governance Committee, presented the Report of the Meeting of the Events, Tourism and Governance Committee held on Thursday, 25 January 2018. RESOLUTION G18.0131.017 moved Cr La Castra seconded Cr P C Young That the Report of the Events, Tourism and Governance Committee Meeting held on Thursday, 25 January 2018 covered by Recommendations numbered ETG18.0125.001 to ETG18.0125.005 be received.

CARRIED ADOPTION OF EVENTS, TOURISM AND GOVERNANCE COMMITTEE REPORT RESOLUTION G18.0131.018 moved Cr Owen-Jones seconded Cr P C Young That the Report of the Events, Tourism and Governance Committee Recommendations of Thursday, 25 January 2018, numbered ETG18.0125.001 to ETG18.0125.005, be adopted.

CARRIED UNANIMOUSLY


10 CONSIDERATION OF NOTICES OF MOTION Nil 11 QUESTIONS ON NOTICE / ANSWERS TO QUESTIONS ON NOTICE Nil 12 PRESENTATION OF PETITIONS Nil

13 GENERAL BUSINESS 13.1 GOLD COAST HOMELESSNESS NETWORK

CS431/319/04 RESOLUTION G18.0131.019 moved Cr Crichlow seconded Cr P J Young That Council approves an allocation of $1122.66 from Division 6 LAW 2017-18 Budget to Gold Coast Homelessness Network as a contribution towards the costs involved to purchase display frames to promote the 7 CareConnect Homelessness App in the public toilets within Broadwater Parklands, this being a one-off donation made outside of Council’s competitive programs on public interest grounds – noting that the display frames will also be utilised by the Manager of the Broadwater Parklands to communicate information to the public when required.

CARRIED UNANIMOUSLY 13.2 GOLD COAST REGIONAL BOTANIC GARDENS

PN83757/16/-

RESOLUTION G18.0131.020 moved Cr Taylor seconded Cr La Castra That an amount of $520 be allocated from the Division 10 LAW Gold Coast Regional Botanic Gardens 2017-18 Education Program (PN 27186) for the provision of 12 x cotton UV-proof shirts incorporating the Friends logo for new volunteers assisting with the guided walk program at the gardens during the 2018 Gold Coast Commonwealth Games. This being a one-off donation made outside Council’s competitive programs on public interest grounds.

CARRIED UNANIMOUSLY


13 GENERAL BUSINESS (Continued) 13.3 DEVELOPMENTS TRAFFIC & PARKING MANAGEMENT PLANS

TT93/26/- RESOLUTION G18.0131.021 moved Cr Taylor seconded Cr Vorster 1 That the Acting Director of Economy, Planning and Environment urgently undertake

an audit comparison between the traffic and parking management plans accepted as part of Development Application or Operational Works Applications versus what is occurring in reality.

2 That the audit be limited to the five largest private construction projects in Division

10. 3 That if discrepancies are found between the approved traffic management plans

and reality, that enforcement processes for such failure to comply with development conditions are pursued immediately.

4 That the construction traffic and parking audit be completed within 10 working

days.

CARRIED UNANIMOUSLY 13.4 EARLY REVIEW PARKING PERMIT SCHEME

TT150/586/-

RESOLUTION G18.0131.022 moved Cr Taylor seconded Cr Vorster That given that new traffic areas are being implemented throughout the city, a review of the city’s parking permit scheme be undertaken as a priority following completion of GC2018 Commonwealth Games with an interim report to be presented to Council in July 2018.

CARRIED UNANIMOUSLY 13.5 WATER CHARGES CLASS A

WSS72 RESOLUTION G18.0131.023 moved Cr Gates seconded Cr Owen-Jones That the Director Water and Waste, bring forward a further report justifying the proposed introduction of charges for the supply of A Class water to golf and sporting clubs, and industry presently using free c+ water for irrigation purposes.

CARRIED UNANIMOUSLY


13 GENERAL BUSINESS (Continued) CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Baildon seconded Cr Owen-Jones That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

13.6 Gold Coast Show Society Prejudicial Matter

CARRIED

Meeting adjourned at 2.04pm Meeting reconvened at 2.15pm PROCEDURAL MOTION moved Cr Vorster seconded Cr Tozer That the Committee move into Open Session.

CARRIED Following resumption into open session, item 13.6 was moved and carried as shown on the following page.


13 GENERAL BUSINESS (Continued) 13.6 GOLD COAST SHOW SOCIETY

CS105/274/05/2018 Cr Baildon declared a real (or perceived) conflict of interest (as per section 173 of the Local Government Act 2009) on this matter due to his involvement with the Gold Coast Show Society 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 Baildon remained in the room. Cr Gates declared a real (or perceived) conflict of interest (as per section 173 of the Local Government Act 2009) on this matter due to her membership of the board of the Gold Coast Turf Club and left the meeting room, taking no part in the debate or decision of the meeting. Cr Gates left the room. Cr Crichlow declared a real (or perceived) conflict of interest (as per section 173 of the Local Government Act 2009) on this matter due to her being a patron and life member of the Gold Coast Show Society 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 Crichlow remained in the room. Cr Tozer declared a real (or perceived) conflict of interest (as per section 173 of the Local Government Act 2009) on this matter due to his membership and prominent advocate of the Mudgeeraba Show Society 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 Tozer remained in the room. RESOLUTION G18.0131.024 moved Cr Caldwell seconded Cr Baildon 1 That Council affirms its support for the Gold Coast Show and recognises its important

contribution to the social fabric of the city.

That Council advise the Gold Coast Show Society it is prepared to consider its request for one off financial assistance to support the staging of a 2018 Gold Coast Show event subject to the provision of appropriate information so as to assist the Council to make an informed decision in the public interest.

That the appropriate information shall include, inter alia, confirmation of the Society’s business plan, corporate governance and management capacity to deliver the 2018 event, and financial position.

2 That Council commits to working with the State Government and the Gold Coast

Show Society to consider venue options for the Gold Coast Show and a sustainable permanent home for the Show in future years.

CARRIED UNANIMOUSLY

Cr Baildon, Cr Crichlow and Cr Tozer voted in the positive Cr Gates returned to the room


14 OTHER BUSINESS 14.1 NOVEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) Refer Attachment 1: 2017-18 Special Purpose Statement of Income and Expenditure and

Special Purpose Statement of Financial Position – November 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 November 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: 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. 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.


14 OTHER BUSINESS (Continued) 14.1 NOVEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued) 2017-18 BASIS OF REPORTING & TREND ANALYSIS The budget figures presented in this report as at 30 November 2017 represent the 2017-18 September Budget Review position, after reprovisions. 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. Budget variations are considered in the budget review process. The September Budget Review was presented to Council on 8 December 2017. There are no trends to report as they are reflected in the September Budget Review as budget variations. 2017-18 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) 14.1 NOVEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued)

OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget for November 2017.

Council has spent $399.9 million from an operating expense budget of $1,041.3 million (including reprovisions) in 2017-18. This represents 38.4% expended at 41.7% of the year elapsed.

By comparison 38.8% ($356.9 million) of the previous year’s actual expenditure had been spent from the budget of $919.1 million at the end of November 2016. Some major expenses contributing to the increased budget from 2016-17 to 2017-18 include: Commonwealth Games, Light Rail, bulk water purchases 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 2017-18.

At the end of November 2017 $112.8 million ($206.9 million inclusive of commitments) had been spent from a total capital budget of $417.8 million (including proposed reprovisions). This represents 27.0% (49.5% inclusive of commitments) of the total budget with 41.7% of the year elapsed. Commitments relate to both current year and reprovided projects from 2016-17.

By comparison, $106.1 million (27.0%), or $205.8 million (52.4%) inclusive of commitments, of the capital budget of $393.1 million had been spent at the end of November 2016.

Expense - Operating 2017 - 2018 Budget = $1041M

38.4%

38.8%

- 200 400 600 800 1,000

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Operating Expenditure - Budget v Actual (excl depreciation)

Expense - Capital 2017 - 2018 Budget = $418M


27.0% 49.5%

0 100 200 300 400

Budget

Actual + Commitments

Millions

2017-18 Capital Expenditure - Budget v Actual + Commitments

27.0% 52.4%

0 100 200 300 400

Budget


Millions



14 OTHER BUSINESS (Continued)

14.1 NOVEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued)

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 $42.5 million, which is 44.2% of the revised budget of $96.1 million as at the end of November 2017 (41.7% of year elapsed). Building and Development Fees along with Licences & Permits Fees are exceeding budgeted expectations. By comparison, $44.7 million (44.0%) of last year’s budget of $101.7 million for fees and charges revenue had been achieved by the end of November 2016.

A reduced Building and Development Fees budget, from 2016-17 to 2017-18, primarily comprises the year on year budget difference.

Rates and Utility Charges

The amount of rates and utility charges brought to account as at the end of November 2017 was $489.1 million, which is 43.5% of the total budget of $1,124.9 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, $463.1 million (43.2%) of last year’s total rates and utility charges revenue budget of $1,070.9 million had been achieved by the end of November 2016.

Interest Income

Interest income at the end of November 2017 was $14.5 million, which is 54.1% of the budget of $26.9 million.

By comparison, $12.8 million (44.4%) of last year’s total interest revenue budget of $28.8 million had been received by the end of November 2016.

The initial budget is lower in 2017-18 than shown in 2016-17. There was a $1.2 million revenue increase in the September Review and it is likely that a further increase will be made in the March Review and that the 2017-18 budget will reflect very close to the 2016-17

result at that time.

Revenue - Fees & Charges 2017 - 2018 Budget = $96M

44.2%

44.0%

0 20 40 60 80 100

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Fees & Charges Income - Budget v Actual

Revenue - Rates and Utility Charges 2017 - 2018 Budget = $1125M

43.5%

43.2%

0 200 400 600 800 1,000

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2017 - 2018 Budget = $27M

54.1%

44.4%

0 10 20 30

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Interest Income - Budget v Actual




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 November 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 November 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)

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCOO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCOO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCOO Yes




14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2017-18 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for November 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 2017-18 Statement of Income and Expenditure and Statement of Financial Position as presented for November 2017. Author: Authorised by: John Jackson Joe McCabe Corporate Management Accountant Chief Operating Officer 22 December 2017 RESOLUTION G18.0131.025 moved Cr Tozer seconded Cr Vorster That Council note the Special Purpose 2017-18 Statement of Income and Expenditure and Statement of Financial Position as presented for November 2017.

CARRIED




Attachment 1

BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

REVENUERATES & UTILITY CHARGES - - (79,212) (33,264) (488,610) (200,566) (557,031) (255,309) (1,124,852) (489,139) 1

RATES DISCOUNTS & REMISSIONS - - 0 0 0 0 49,884 24,032 49,884 24,032 1

FEES AND CHARGES (17,686) (7,112) (11,228) (4,204) (3,704) (1,742) (67,404) (31,209) (100,022) (44,268)INTEREST REVENUE - - (862) (365) (10,440) (4,562) (15,604) (9,622) (26,905) (14,549) 2

GAIN/LOSS ON SALE OF ASSETS 0 97 0 1 5,000 0 12,676 (942) 17,676 (844)CONTRIBUTION & DONATIONS REVENUE - - (870) (870) (60,000) (45,156) (149,789) (89,186) (210,659) (135,211) 3

GRANTS & SUBSIDIES REVENUE - - 0 (20) 0 0 (38,824) (15,219) (38,824) (15,239)OTHER REVENUE (64) (406) (44) (1) 0 (10) (21,654) (11,094) (21,762) (11,512) 4

TOTAL REVENUE (17,750) (7,421) (92,216) (38,724) (557,753) (252,036) (787,746) (388,550) (1,455,465) (686,731)

EXPENSESEMPLOYEE COSTS 657 290 8,394 3,021 47,775 19,003 311,399 127,510 368,226 149,824MATERIALS AND SERVICES 12,941 4,650 74,474 25,863 458,045 182,387 409,783 114,556 955,244 327,456DEPRECIATION & AMORTISATION 1,650 649 9,753 4,538 92,000 39,000 137,768 57,920 241,171 102,107FINANCE COSTS 0 5 0 0 0 0 42,596 11,626 42,596 11,631 5

OTHER EXPENSES 4,399 1,394 4,003 489 2,620 3,059 122,580 23,007 133,602 27,949 6

CAPITALISED EXPENSES (3,668) (298) (6,080) (876) (76,402) (25,899) (331,642) (68,343) (417,791) (95,416)TOTAL EXPENSES 15,981 6,690 90,545 33,036 524,038 217,550 692,484 266,275 1,323,047 523,551

NET RESULT (1,769) (731) (1,672) (5,688) (33,715) (34,486) (95,262) (122,275) (132,417) (163,180)

1

2

3

4

5

6 Other Expenses is mostly Insurance Premiums and Settlements and Sundry Expenses. The latter and Contributions and Donations expenses will increase as the year progresses.

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

GOLD COAST GOLD COAST

(in thousands of dollars)

GOLD COAST

FOR THE PERIOD ENDED 30 NOVEMBER 2017

Finance Costs (includes credit card surcharges) and processed once quarterly statements are received from Queensland Treasury Corporation.

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.

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

Interest revenue comprises earnings based off higher than estimated cash balances.

TOURIST PARKS

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

WASTE MANAGEMENT




BUDGET ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 665,567 982,232 1

CURRENT RECEIVABLES 194,491 183,384 2

INVENTORIES 2,041 2,305PREPAYMENTS 695 198CLEARING ACCOUNTS 0 104 3

862,794 1,168,223

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 4

PROPERTY, PLANT AND EQUIPMENT 13,661,194 13,149,734ASSETS UNDER CONSTRUCTION 0 270,178 5

13,662,344 13,421,062

TOTAL ASSETS 14,525,138 14,589,285

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (99,470) (65,739)UNEARNED REVENUE (2,348) (50,604) 6

CURRENT EMPLOYEE BENEFITS (25,769) (25,383)CURRENT BORROWINGS (77,987) (76,741)CLEARING ACCOUNTS 0 (56) 3

(205,574) (218,524)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (53,387) (56,865)NON CURRENT BORROWINGS (576,074) (590,189)

(629,461) (647,054)

TOTAL LIABILITIES (835,034) (865,578)NET COMMUNITY ASSETS 13,690,104 13,723,707

COMMUNITY EQUITYRETAINED CAPITAL 8,719,404 8,704,316RESERVES 4,970,700 5,019,391 7

TOTAL COMMUNITY EQUITY 13,690,104 13,723,707

1

2

3

4

5

6

7

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.

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


SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 30 NOVEMBER 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 ($340.3m), (ii) Investment Fund Reserve ($86.8m), (iii) Gold Coast Water & Waste reserves ($195.0m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct, Strategic Priorities Reserve) ($93.6m) and (iv) Other cash items ($266.5m).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).




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 comprise 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 DECEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) Refer Attachment 1: 2017-18 Special Purpose Statement of Income and Expenditure and

Special Purpose Statement of Financial Position – December 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 December 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: 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. 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.


14 OTHER BUSINESS (Continued) 14.2 DECEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued) 2017-18 BASIS OF REPORTING & TREND ANALYSIS The budget figures presented in this report as at 31 December 2017 represent the 2017-18 September Budget Review position, after reprovisions. 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. Budget variations are considered in the budget review process. The September Budget Review was presented to Council on 8 December 2017.

2017-18 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:

2017-18 Statement of Income and Expenditure - Major Budget Trends Budget Trend$m

( ) = Favourable

GeneralInfrastructure Charges Revenue - The 2017-18 full year budget for infrastructure charges revenue is $80m. $72m has already been received up to the end of December. If current revenue trends continue, it is likely that Council will receive around $140m in infrastructure charges in 2017-18. This has continued the trend from the previous two years where Council has received historically high contributions from developers. Given the uncertainty of this revenue, budgets are set based on long term average receipts. The surplus revenue received this financial year will be set aside in reserve to fund future trunk infrastructure in accordance with Council’s LGIP. Infrastructure charges attributed to the water and sewerage networks are subject to be taxed within the Water & Sewerage Services business unit. Therefore, the increased receipts will result in a favourable variance in consolidated revenue from tax equivalents.

TBC

Office of the Chief Operating OfficerInterest on Investments - Council continues to hold significant balances in various reserves which is helping to maintain a high cash balance. Rates have remained fairly steady throughout the year. Additional interest revenue was added to the September 2017 Budget Review and will continue to be monitored over future budget reviews. Most of the additional interest revenue will be transferred to Gold Coast Water & Waste.

TBC

Gold Coast Water & WasteBulk Water Purchases - For the month of December, bulk water consumed across the City was almost 4% below revised forecast. This offsets the high consumption during August and September, bringing total consumption for the year to almost 1% ($0.57 million) below revised forecast.

($570,000)

Water Revenues - Total water revenues are approximately $1.4 million (1%) below revenue projections. This is partially due to the lower consumption outlined above. The other contributing factor is access charges currently being $0.6 million (0.9%) below forecast. This is believed to be the result of delays in recognition of new properties within LGP and is expected to be resolved over the coming months.

$1,380,000

Sewer Revenues - Total sewer revenues are approximately $0.5. million (0.5%) below revenue projections. Volumetric Sewer revenue continues to exceed projections, now by $1.14 million. The offsetting factor is access charges currently being $1.67 million (0.9%) below forecast. This is believed to be the result of delays in recognition of new properties within LGP and is expected to be resolved over the coming months.

$530,000


14 OTHER BUSINESS (Continued) 14.2 DECEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued) 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 DECEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued) OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget for December 2017.

Council has spent $497.0 million from an operating expense budget of $1,041.3 million (including reprovisions) in 2017-18. This represents 47.7% expended at 50.0% of the year elapsed.

By comparison 47.0% ($431.9 million) of the previous year’s actual expenditure had been spent from the budget of $919.1 million at the end of December 2016. Some major expenses contributing to the increased budget from 2016-17 to 2017-18 include: Commonwealth Games, Light Rail, bulk water purchases 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 2017-18.

At the end of December 2017 $137.1 million ($229.7 million inclusive of commitments) had been spent from a total capital budget of $417.8 million (including proposed reprovisions). This represents 32.8% (55.0% inclusive of commitments) of the total budget with 50.0% of the year elapsed. Commitments relate to both current year and reprovided projects from 2016-17.

By comparison, $128.1 million (32.7%), or $225.6 million (57.4%) inclusive of commitments, of the capital budget of $393.1 million had been spent at the end of December 2016.

Expense - Operating 2017 - 2018 Budget = $1041M

47.7%

47.0%

- 200 400 600 800 1,000

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Operating Expenditure - Budget v Actual (excl depreciation)



32.8% 55.0%

0 100 200 300 400

Budget


Millions


32.7% 57.4%

0 100 200 300 400

Budget


Millions



14 OTHER BUSINESS (Continued) 14.2 DECEMBER 2017 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued)

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 $50.3 million, which is 52.3% of the revised budget of $96.1 million as at the end of December 2017 (50.0% of year elapsed). Building and Development Fees along with Licences & Permits Fees are exceeding budgeted expectations. By comparison, $54.1 million (53.2%) of last year’s budget of $101.7 million for fees and charges revenue had been achieved by the end of December 2016. A reduced Building and Development Fees budget, from 2016-17 to 2017-18, primarily comprises the year on year budget difference.


The amount of rates and utility charges brought to account as at the end of December 2017 was $538.5 million, which is 47.9% of the total budget of $1,124.9 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, $511.2 million (47.7%) of last year’s total rates and utility charges revenue budget of $1,070.9 million had been achieved by the end of December 2016.

Interest Income

Interest income at the end of December 2017 was $17.9 million, which is 66.6% of the budget of $26.9 million. By comparison, $15.2 million (52.9%) of last year’s total interest revenue budget of $28.8 million had been received by the end of December 2016. The initial budget is lower in 2017-18 than shown in 2016-17. There was a $1.2 million revenue increase in the September Review and it is likely that a further increase will be

made in the March Review and that the 2017-18 budget will reflect very close to the 2016-17 result at that time.

Revenue - Fees & Charges 2017 - 2018 Budget = $96M

52.3%

53.2%

0 20 40 60 80 100

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Fees & Charges Income - Budget v Actual

Revenue - Rates and Utility Charges 2017 - 2018 Budget = $1125M

47.9%

47.7%

0 200 400 600 800 1,000

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2017 - 2018 Budget = $27M

66.6%

52.9%

0 10 20 30

Budget 17-18

Actual 17-18

Budget 16-17

Actual 16-17

Millions

Interest Income - Budget v Actual



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 December 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 December 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)

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCOO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCOO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCOO Yes



14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2017-18 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for December 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 2017-18 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2017. Author: Authorised by: John Jackson Joe McCabe Corporate Management Accountant Chief Operating Officer 17 January 2018 RESOLUTION G18.0131.026 moved Cr Vorster seconded Cr Tozer That Council note the Special Purpose 2017-18 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2017.

CARRIED



Attachment 1

BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

REVENUERATES & UTILITY CHARGES - - (79,212) (40,303) (488,610) (243,073) (557,031) (255,088) (1,124,852) (538,465) 1

RATES DISCOUNTS & REMISSIONS - - 0 0 0 0 49,884 24,149 49,884 24,149 1

FEES AND CHARGES (17,686) (7,939) (11,228) (5,388) (3,704) (1,966) (67,404) (37,042) (100,022) (52,335)INTEREST REVENUE - - (862) (475) (10,440) (5,479) (15,604) (11,972) (26,905) (17,926) 2

GAIN/LOSS ON SALE OF ASSETS 0 97 0 1 5,000 0 12,676 911 17,676 1,009CONTRIBUTION & DONATIONS REVENUE - - (870) (870) (60,000) (50,848) (149,789) (89,552) (210,659) (141,269) 3

GRANTS & SUBSIDIES REVENUE - - 0 (20) 0 0 (38,824) (16,467) (38,824) (16,487)OTHER REVENUE (64) (991) (44) (1) 0 (9) (21,654) (13,224) (21,762) (14,226) 4

TOTAL REVENUE (17,750) (8,833) (92,216) (47,057) (557,753) (301,376) (787,746) (398,285) (1,455,465) (755,550)

EXPENSESEMPLOYEE COSTS 657 357 8,394 3,613 47,775 22,698 311,399 154,134 368,226 180,801MATERIALS AND SERVICES 12,941 5,394 74,474 31,126 458,045 219,260 409,783 136,231 955,244 392,012DEPRECIATION & AMORTISATION 1,650 779 9,753 5,446 92,000 46,801 137,768 69,528 241,171 122,555FINANCE COSTS 0 5 0 0 0 0 42,596 22,202 42,596 22,208 5

OTHER EXPENSES 4,399 1,596 4,003 533 2,620 4,397 122,580 45,653 133,602 52,179 6

CAPITALISED EXPENSES (3,668) (506) (6,080) (956) (76,402) (30,321) (331,642) (84,356) (417,791) (116,139)TOTAL EXPENSES 15,981 7,624 90,545 39,763 524,038 262,836 692,484 343,393 1,323,047 653,616

NET RESULT (1,769) (1,209) (1,672) (7,294) (33,715) (38,539) (95,262) (54,892) (132,417) (101,935)

1

2

3

4

5

6

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.

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 (includes credit card surcharges) and processed once quarterly statements are received from Queensland Treasury Corporation.

Interest revenue comprises earnings based off higher than estimated cash balances.

TOURIST PARKS

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

WASTE MANAGEMENT

Other Expenses is mostly Insurance Premiums and Settlements and Sundry Expenses. The latter and Contributions and Donations expenses will increase as the year progresses.

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

GOLD COAST GOLD COAST


GOLD COAST

FOR THE PERIOD ENDED 31 DECEMBER 2017



BUDGET ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 665,567 876,456 1

CURRENT RECEIVABLES 194,491 196,753 2

INVENTORIES 2,041 2,359PREPAYMENTS 695 99CLEARING ACCOUNTS 0 20 3

862,794 1,075,686

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 4

PROPERTY, PLANT AND EQUIPMENT 13,661,194 13,136,206ASSETS UNDER CONSTRUCTION 0 283,652 5

13,662,344 13,421,008

TOTAL ASSETS 14,525,138 14,496,695

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (99,470) (72,634)UNEARNED REVENUE (2,348) (25,317) 6

CURRENT EMPLOYEE BENEFITS (25,769) (24,688)CURRENT BORROWINGS (77,987) (81,741)CLEARING ACCOUNTS 0 (563) 3

(205,574) (204,943)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (53,387) (57,561)NON CURRENT BORROWINGS (576,074) (571,729)

(629,461) (629,290)

TOTAL LIABILITIES (835,034) (834,233)NET COMMUNITY ASSETS 13,690,104 13,662,462

COMMUNITY EQUITYRETAINED CAPITAL 8,719,404 8,639,733RESERVES 4,970,700 5,022,729 7

TOTAL COMMUNITY EQUITY 13,690,104 13,662,462

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SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 31 DECEMBER 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 ($343.6m), (ii) Investment Fund Reserve ($86.8m), (iii) Gold Coast Water & Waste reserves ($195.0m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct, Strategic Priorities Reserve) ($90.2m) and (iv) Other cash items ($160.8m).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).

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.

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



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 (Continued) 14.3 CGC2018 BRIEFING

The CEO advised that there will be a major exercise involving the City, GOLDDOC, all the other partners including the police and emergency services on Tuesday 6 February 2018 and Wednesday 7 February 2018. It will be multi-faceted and very comprehensive. There being no further business, the meeting was declared closed at 3:15pm.


I hereby certify that these pages Numbered 1 to 51 constitute

The Minutes of the Meeting

of the Council of the City of Gold Coast

held Wednesday 31 January 2018.

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

Documents

Adopted Minutes Council Meeting - City of Gold Coast · 2019. 6. 23. · Solar Panels and Energy Saving Announcement Ratepayers will start saving in excess of $100,000 annually now