Adopted Minutes Council Meeting - City of Gold Coast | Home€¦ · Destination Gold Coast’s bid to Sunhope Group. 2 Airfares, internal logistics, accommodation and meals will be

756

Adopted Minutes of the

Council Meeting held

Tuesday 12 June 2018

at

1pm

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

756th Council Meeting 2 12 June 2018 Adopted Minutes

INDEX

Adopted Minutes (756)

Council Meeting

Tuesday 12 June 2018

ITEM SUBJECT

1 ATTENDANCE / LEAVE OF ABSENCE

2 CONDOLENCES

3 MAYORAL MINUTE

3.1 Mayor’s travel to Beijing to Support Destination Gold Coast

3.2 Convene Parking Workshop

4 CONFIRMATION OF MINUTES

4.1 The Seven Hundred and Fifty Fifth Ordinary Meeting of the Council of the City of Gold Coast, held Tuesday, 29 May 2018 at 1pm.

5 MAYOR’S REPORT

6 CLARIFICATION – MEMBERS

7 BUSINESS ARISING FROM MINUTES

8 PRESENTATIONS

8.1 National Infrastructure Awards Cr PC Young

9 RECEPTION AND CONSIDERATION OF COMMITTEE REPORTS

9.1 Special Budget and Finance Committee 21 May 2018

9.2 Transport and Infrastructure 31 May 2018

9.3 Lifestyle and Community 31 May 2018

9.4 Economy, Planning and Environment 5 June 2018

9.5 Events, Tourism and Governance 7 June 2018

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 Rating of Health & Knowledge Precinct (Confidential)


ITEM SUBJECT

14.2 Revenue Policy

14.3 Loan Borrowings

14.4 April 2018 Monthly Financial Report

14.5 Amendment of the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy

14.6 Coomera Community Hub - due diligence proposal (Presentation only)

14.7 SEQ Olympic Games Bid


ADOPTED AT COUNCIL21 JUNE 2018 RESOLUTION G18.0621.035 moved Cr Vorster seconded Cr Baildon That the Minutes of the Seven Hundred and Fifty Sixth Ordinary Meeting of the Council of the City of Gold Coast held on Tuesday 12 June 2018 at 1pm be confirmed.

CARRIED UNANIMOUSLY

Minutes of the Seven Hundred and Fifty Sixth 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 12 June 2018, at 1pm. The Mayor, Cr T R Tate, welcomed Pastor Darren Dakers of Liberti Church, Coomera, 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 Transport and Infrastructure Ms A Ewens Director Lifestyle and Community Services Mr G Potter Director Organisational Services Ms A Swain Director Economy, Planning & Environment 1.1 LEAVE OF ABSENCE / APOLOGIES Nil


2 CONDOLENCES Cr Caldwell To The Warwick Family On the passing of Ray Warwick RESOLUTION G18.0612.001 moved Cr Caldwell seconded Cr Vorster That a motion of condolence be passed and that a message of sympathy be forwarded.

CARRIED

3 MAYORAL MINUTE 3.1 MAYOR’S TRAVEL TO BEIJING TO SUPPORT DESTINATION GOLD COAST Councillors, I have been invited by Destination Gold Coast to travel to Beijing from 7-10 August 2018 to support their bid to win an incentive event planned by Sunhope Group in 2020. I have also been requested by Destination Gold Coast to accompany them to meetings with other key clients in Beijing on 9 August. Destination Gold Coast has been working directly with Sunhope Group for over 12 months and the event will attract approximately 5,000 delegates from greater China, for a 5 day / 4 night program in September/October. This event will contribute a minimum economic impact of $15.7M to the Gold Coast, excluding discretionary spending. Gold Coast is the ‘preferred’ destination for this group and this is a great opportunity to present a compelling final pitch to the CEO and key management of Sunhope. The bid will also include presentations from Melbourne and Sydney and Destination Gold Coast has suggested that my attendance will strengthen their pitch as the destination of choice and demonstrates our respect for their business. This trip will be fully funded by Destination Gold Coast. Recommendation 1 That Council supports the Mayor’s visit to Beijing from 7-10 August 2018 to support

Destination Gold Coast’s bid to Sunhope Group.

2 Airfares, internal logistics, accommodation and meals will be covered by Destination Gold Coast.

RESOLUTION G18.0612.002 moved Cr Tate 1 That Council supports the Mayor’s visit to Beijing from 7-10 August 2018 to

support Destination Gold Coast’s bid to Sunhope Group.

2 Airfares, internal logistics, accommodation and meals will be covered by Destination Gold Coast.

CARRIED UNANIMOUSLY


3 MAYORAL MINUTE (Continued) 3.2 CONVENE PARKING WORKSHOP Councillors, I wish to undertake a workshop with Councillors and relevant officers providing support to discuss current parking zones, residential permits, time limits, parking fees and town planning parking ratios on Monday the 18 June 2018 at 10:00am. This recommendation for a workshop is due to a number of discussions I have been having with various Councillors over the past two months in regards to City Wide parking challenges and general dissatisfaction. For example one topic I would like to cover is beachside parking matters. My view is that I would like to retain 3 or 4 hour parking limits but remove the associated parking fees, making going to the beach free of parking fees. Recommendation: 1 That a workshop be conducted in Evandale Chambers, chaired by the Mayor, on

Monday the 18 June 2018, to discuss parking related topics such as citywide parking zones, residential permits, time limits, parking fees, town planning parking ratios and other related matters.

2 That the workshop outcomes be reported back to a following round of the Transport & Infrastructure Committee.

RESOLUTION G18.0612.003 moved Cr Tate 1 That a workshop be conducted in Evandale Chambers, chaired by the Mayor,

on Monday the 18 June 2018, to discuss parking related topics such as citywide parking zones, residential permits, time limits, parking fees, town planning parking ratios and other related matters.

2 That the workshop outcomes be reported back to a following round of the

Transport & Infrastructure Committee. CARRIED UNANIMOUSLY

4 CONFIRMATION OF MINUTES RESOLUTION G18.0612.004 moved Cr Gates seconded Cr Taylor That the Minutes of the Seven Hundred and Fifty Fifth Ordinary Meeting of the Council of the City of Gold Coast held on Tuesday 29 May 2018 at 1pm be confirmed with the deletion of Part 2d of confidential attachment to Item 14.1 (Opera on the Beach).

CARRIED


5 MAYOR’S REPORT 5.1 RECENT VISITS AND SPEECHES


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

Welcome Address 2018 Floodplain Management Australia (FMA) National Conference

This conference brought together councils, catchment authorities, government agencies, businesses, and professionals involved in all aspects of urban and rural floodplain risk management.

FMA promotes wise land use planning principles to guide appropriate development within floodplain areas.

They support programs which manage flood risks and the impact of flooding, and reduce private and public flood losses.



Launch 90th Anniversary Mudgeeraba Show

Cr Tozer attended.

The Mudgeeraba Show is on again, showcasing the ‘country’ in our ‘city’.

This year is bigger and better than ever with heaps of entertainment, rides, food, activities for all ages, ring events, animal attractions, arts and crafts, show bags and more…

90,000 people are expected to attend – and this year you can buy your tickets online

This year’s Show is on from Saturday, 23 June to Sunday, 24 June.



Official Opening Gold Coast Food & Wine Festival

Cr Taylor and Cr Owen-Jones attended.

This was the Festival’s third season, running from 31 May to 3 June at various locations across the city.

This year’s festival featured experimental dining, dining as entertainment and food and culture crossover events.

With a focus on authenticity and sustainability, this festival enabled Gold Coast to showcase the wonderful variety of food available in our region.



Announcement of New Junior Mayor and Executive for Junior Council

Deputy Mayor, Cr Gates attended, along with Cr Crichlow and Cr McDonald.

I would like to congratulate Caelan Pascoe from Keebra Park State High School who was officially sworn in as the new City of Gold Coast Junior Mayor.

Our Junior Council program has helped hundreds of young people like Caelan develop their leadership skills and learn about local government.

In return, through Junior Council, the voice of the city’s young people is heard. I know their insights are greatly valued in Council decision-making.

This was the first time the swearing-in ceremony was livestreamed tapping into all 29 participating schools and reaching an anticipated audience of 30,000 students.

Caelan will be supported by Junior Deputy Mayor Dung Dang from Southport State High School and the executive team:

Bryn Larkin, Marymount College

Chelsea Elderidge, Marymount College

Elizabeth Pasere, Saint Stephen’s College

Aaron Taplin, Helensvale State High School

Siobhan Lau, Queensland Academies – Health Sciences

Lily Thompson, Somerset College

With 113 students from 29 schools across the Gold Coast, our Junior Council continues to be the largest Junior Council program in Queensland.



Visit to Griffith University Architecture Students

It was great to visit the 3rd year architecture students at Griffith, who are in the process of completing their semester’s assignment on a Visitors Centre and Landscape for the Gold Coast Botanic Gardens.

The project brief has provided the opportunity for students to investigate a specific local context while exploring some internationally relevant themes in contemporary architecture.

Accessibility, parking and the graceful integration of facilities with the local landscape are among the primary objectives.

The City has a strong relationship with Griffith University and since its inception in 2009, the we have been part of the Architecture Industry Advisory Board, with the City Architect a current member of the board.

Over the years, the City of Gold Coast has employed some 40 Griffith architecture graduates.





Re-naming Ceremony for ‘Woodlands Park’ in Honour of Rudd Family

Cr Tozer attended, as well as members of the Rudd Family, including Joan Rudd.

The formerly known ‘Somerset Park’ has now been official re-named ‘Woodlands Park’ in honour of the local pioneering Rudd family.

With their roots dating back to the 1890s William and Jane Rudd were English immigrants and worked what was known as Woodlands Farm.

It was prized ground, hailed as some of the finest agriculture and dairying country in south-east Queensland.



Gold Coast Suns V Geelong Cats

While the SUNS didn’t get over the line in this match, it was a great atmosphere with nearly 18,000 people in attendance.



Launch of Helensvale Recycle Street

Recycle Street is an Australian-first initiative designed to make recycling easier for all Gold Coasters.

Located at the newly named Helensvale Recycling Centre, this is a self-serve recycling facility making recycling simpler, more efficient, accessible and in a pleasant environment for all users.

With colour-coded recycle category signage and shop-style drop off points, Recycle Street applies a retail feel to the process while eliminating the views of site facilities and back of house.

This facility is just one example of how serious the City is about recycling and I hope to see these rolled out across the Gold Coast.

Currently 60% of what is taken to landfill can be recycled. So when you visit our facilities, be sure to sort your load so that all our recyclables have a chance at a second use.





Formal Ceremony Laying of Final Marker of the Commonwealth Walkway

Councillors Pauline Young, Owen-Jones, Deputy Mayor Cr Gates, O’Neill, Taylor, Baildon and McDonald attended.

It is an historic day for the City as I laid the final marker for the Gold Coast Commonwealth Walkway last Thursday morning.

The idea of the Walkway began back in Glasgow during the 2014 Commonwealth Games, when I saw their Queen’s Walkway and I asked the Outdoor Trust to approve a Walkway on the Gold Coast to commemorate the Commonwealth Games coming to the Gold Coast.

The first marker was placed by myself and the Governor-General Sir Peter Cosgrove at the Southport Chambers in 2015, and the 37th and final marker was unveiled by HRH The Prince of Wales during his visit for the Commonwealth Games.

So last Thursday I laid the final marker at the Evandale Chambers, with help from the Junior Mayor and Junior Councillors.

I’d like to again thank the Junior Council and the St Stephens College Drumline for performing a fantastic routine as part of the ceremony.







Koala Fund Announcement at Dreamworld Koala Sanctuary

As part of the 2018-19 Budget, we will be proposing a Koala Fund of $10.85 million for koala habitat protection.

To create the fund, ratepayers will contribute $3 per annum to a special koala levy, starting in 2018-19. Around $800,000 will be raised next financial year with Council planning to borrow the additional $10 million to fund ‘koala land’ purchases.

We will be able to purchase habitat important for koalas. When we acquire it, that land won’t be simply locked away. Instead, we will invest in infrastructure that will help the koala survive and thrive.

The importance of koalas within the Gold Coast has long been recognised and as such, management of populations and habitat has been incorporated into the City’s various policies and strategies including the City Plan, and the recently endorsed Our Natural City Strategy and Koala Conservation Plan.

Key areas we will be looking at acquiring land at include Coomera and Pimpama.



Re-opening Gold Coast Aquatic Centre

Yesterday I announced that the Gold Coast Aquatic Centre was now re-opened following on from the Commonwealth Games

On Saturday, 23 June we will be having a major community event called Aqua-splash from 10am-2pm. The free family event will feature diving and synchronised swimming displays, inflatable obstacle course, novelty pool races and much more.

The Aquatic Centre performed brilliantly for the Games, but it had been closed to the public since 10 February so City staff have been working hard to get it reopened.

RESOLUTION G18.0612.005 moved Cr Tate seconded Cr Gates That the Mayor’s Report be welcomed and noted.

CARRIED UNANIMOUSLY


6 CLARIFICATION - MEMBERS Nil 7 BUSINESS ARISING FROM MINUTES Nil 8 PRESENTATIONS 8.1 NATIONAL INFRASTRUCTURE AWARDS

l-r Matt Tilly, Paul Grove, Cr Pauline Young, Mayor Cr Tom Tate, Alton Twine

The Light Rail project has been a City building project that was first initiated by Council in its Transport Plan. The City’s Transport Strategy calls for extensions of the successful first stage, with the second stage originally contemplated for Gold Coast University Hospital to Parkwood. The Department of Transport and Main Roads extended this further to meet heavy rail at Parkwood Station, with this connection being opened in December 2017 in time for the Commonwealth Games. As with the first stage, stage 2 of light rail has been a success, adding more than 8,000 passenger trips per day to the light rail system.

This award recognises the excellence of partnership between the City, State & Federal governments and private sector partners, in what has been formally recognised as ‘best practice’ and a guide to other light rail projects.

The award is presented to Alton Twine, Director of Transport and Infrastructure, responsible for successfully advocating for Stage 2 as well as being part of the oversight for delivery; Matthew Tilly, Manager Transport & Traffic and Paul Grove who has been the primary interface with the State in Stage 2 delivery.


8 PRESENTATIONS (Continued) 8.2 QUEENS BATON RELAY CERTIFICATE

Cr Bob La Castra made a presentation to the city, on behalf of GOLDOC, to thank Council for its contribution to the Queen’s Baton Relay. The Mayor was presented with ‘a Borobi cuddly toy’, a framed certificate of appreciation and a mini replica ‘Queen’s Baton.


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS 9.1 SPECIAL BUDGET AND FINANCE Cr Tate, Chairperson of the Special Budget and Finance Committee, presented the Report of the Meeting of the Special Budget Committee held on Monday 21 May 2018. RESOLUTION G18.0612.006 moved Cr Tate seconded Cr La Castra That the Report of the Special Budget and Finance Committee Meeting held on Monday, 21 May 2018 covered by Recommendations numbered SBF18.0521.001 to SBF18.0521.008 be received with the exception of SBF18.0521.006 (Item 7).

CARRIED ITEM 4 MARCH 2018 BUDGET REVIEW

FN334/375/19(P1) REPORT CONFIDENTIAL Conflict of Interest - Cr Gates:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Gold Coast Turf Club The nature of the relationship is: My personal relationship as a

former Director of the club The value of the gift or benefit received is: Nil The nature of the other person’s interest in the matter is: The turf club is a creditor of the

Gold Coast Show Society I will now leave and stay away from the meeting so that the matter may be discussed and voted on in my absence. Cr Gates left the room RESOLUTION G18.0612.007 moved Cr Tate seconded Cr Taylor

That Committee Recommendation SBF18.0521.004 be adopted as printed which reads as follows:- 1 That the report/attachments be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council adopt the March 2018 Budget Review adjustments presented in this report and Attachment 2, with the following changes:-

a Funding for Kirra Beach Tourist Park be transferred to Strategic Priorities Reserve with the exception of $50,000

b Funding for Gold Coast Show be $100,000

This results in a budget surplus of $22.924 million position, after retaining $5.175 million for inclusion in the 2018-19 Budget to fund reprovisions identified in the report. The resulting surplus of $17.749 million be used to underpin the 2018-19 budget in accordance with the ten year financial forecast;


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.1 SPECIAL BUDGET AND FINANCE(Continued) ITEM 4 MARCH 2018 BUDGET REVIEW

FN334/375/19(P1) REPORT CONFIDENTIAL 3 That Council approve and adopt the following additional net transfers to

reserves totalling $24,422,757:

a $572,205 to the Centre Improvement Program Reserve

b $2,380,206 from the Commonwealth Games Reserve and that this Reserve be closed;

c $300,000 to the Cultural Precinct Reserve;

d $103,000 to the Open Space Reserve;

e $840,695 to the Strategic Priority Reserve;

f $28,000 from the Tourist Parks Reserve;

g $3,675,125 to the Waste Management Reserve;

h $8,535,549 to the Water and Sewerage Infrastructure Reserve (including $1m from Commonwealth Games Reserve for ESD Carrara recycled water project);

i $50,273 to the Gold Coast Investment Fund Reserve

j $12,753,846 to the Infrastructure Charges Reserve;

4 That Council reimburses Division 10 Local Area Works ($66,965) and Whole of City Local Area Works ($50,000), relating to funding allocated to the Surf Parade (Broadbeach) City Place Making Project.

CARRIED UNANIMOUSLY

Cr Gates returned to the room Email sent 11 June 2018 from CEO to Mayor (copy to all Councillors)


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.1 SPECIAL BUDGET AND FINANCE(Continued) ADOPTION OF SPECIAL BUDGET AND FINANCE COMMITTEE REPORT RESOLUTION G18.0612.008 moved Cr Tate seconded Cr PJ Young That the Report of the Special Budget and Finance Committee’s Recommendations of Monday, 21 May 2018, numbered SBF18.0521.001 to SBF18.0521.008, be adopted with the exception of the following, noting there is no committee recommendation for Item 7;

Recommendation Number SBF18.0521.004 which was specifically resolved Recommendation Number SBF18.0521.006 (specific allocation of Grants and

Donations included in the draft budget for adoption as part of overall 2018-19 budget)

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.2 TRANSPORT AND INFRASTRUCTURE Cr PC Young, Chairperson of the Transport and Infrastructure Committee, presented the Report of the Meeting of the Transport and Infrastructure Committee held on Thursday, 31 May 2018. RESOLUTION G18.0612.009 moved Cr PC Young seconded Cr Taylor That the Report of the Transport and Infrastructure Committee Meeting held on Thursday, 31 May 2018, covered by Recommendations numbered TI18.0531.001 to TI18.0531.004, be received.

CARRIED ADOPTION OF THE TRANSPORT AND INFRASTRUCTURE COMMITTEE REPORT RESOLUTION G18.0612.010 moved Cr PC Young seconded Cr Taylor That the Report of the Transport and Infrastructure Committee Meeting of Thursday, 2018, covered by Recommendations numbered TI18.0531.001 to TI18.0531.004, be adopted.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.3 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 Thursday, 31 May 2018. RESOLUTION G18.0612.011 moved Cr Vorster seconded Cr O’Neill That the Report of the Lifestyle and Community Committee Meeting held on Thursday, 31 May 2018, covered by Recommendations numbered LC18.0531.001 to LC18.0531.003, be received.

CARRIED ADOPTION OF LIFESTYLE AND COMMUNITY COMMITTEE REPORT RESOLUTION G18.0612.012 moved Cr Vorster seconded Cr O’Neill That the Report of the Lifestyle and Community Committee’s Recommendations of Thursday, 31 May 2018, numbered LC18.0531.001 to LC18.0531.003, be adopted.

CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 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 Tuesday 5 June 2018. RESOLUTION G18.0612.013 moved Cr Caldwell seconded Cr O’Neill That the Report of the Economy, Planning and Environment Committee Meeting held on Tuesday 5 June 2018, covered by Recommendations numbered EPE18.0605.001 to EPE18.0605.009 be received.

CARRIED ITEM 4 REPORT ON PROPOSED AMENDMENTS TO THE ROYAL PINES RESORT

SCHEME OF INTEGRATED RESORT DEVELOPMENT – MARINA PRECINCT AT 85 ROSS STREET BENOWA AND LOT 1 ROSS STREET, BENOWA – DIVISION 8 PN 319876/16

Conflict of Interest - Cr Gates:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Sunland Group Limited The nature of the relationship is: donor The value of the gift or benefit received is: $2500 on 11 November 2014

and $2500 on 11 September 2015

The nature of the other person’s interest in the matter is: The other person is the applicant – who would now be considered a prohibited donor under the Electoral Act 1992

I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Gates left the room


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 4 REPORT ON PROPOSED AMENDMENTS TO THE ROYAL PINES RESORT

SCHEME OF INTEGRATED RESORT DEVELOPMENT – MARINA PRECINCT AT 85 ROSS STREET BENOWA AND LOT 1 ROSS STREET, BENOWA – DIVISION 8 (Continued) PN 319876/16

Conflict of Interest - Cr Boulton:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Sunland Group Limited The nature of the relationship is: none The value of the gift or benefit is: fee for service The nature of the other person’s interest in the matter is: I engaged Shac Communications

for my 2016 election campaign of which Sunland Group Limited is also a client

However I have considered my position and my interest in this matter as just described, and am firmly of the view that I may participate in the meeting and vote in respect of this matter in the public interest for the reason that I was attending the event as part of my duty as a Councillor. PROCEDURAL MOTION moved Cr Tozer seconded Cr O’Neill Pursuant to section 175E(4) of the Local Government Act 2009, Council resolves that:

Cr Boulton does not have a real or perceived conflict of interest in the matter for the reason of the Local Government Act definitions that constitute a conflict of interest and that Cr Boulton paid a fee for services received, and may therefore participate in the meeting and vote on the matter.

CARRIED In accordance with Section 175E(4) of the Local Government Act 2009, Cr Boulton did not vote


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 4 REPORT ON PROPOSED AMENDMENTS TO THE ROYAL PINES RESORT

SCHEME OF INTEGRATED RESORT DEVELOPMENT – MARINA PRECINCT AT 85 ROSS STREET BENOWA AND LOT 1 ROSS STREET, BENOWA – DIVISION 8 (Continued) PN 319876/16

Conflict of Interest – Cr Owen-Jones:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Sunland Group Limited The nature of the relationship is: Contributed to my 2016 re-

election campaign The value of the gift or benefit received is: $1800 on 26 August 2015 The nature of the other person’s interest in the matter is: They are an applicant (deemed

now to be a prohibited donor) I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Owen-Jones left the room RESOLUTION G18.0612.014 moved Cr Caldwell seconded Cr PJ Young

That Committee Recommendation EPE18.0605.004 be adopted as printed which reads as follows:- That Council responds to McCullough Robertson Lawyers on behalf of the Sunland Group to indicate that Council has no objection to the proposed scheme amendment to the Royal Pines Resort Scheme of Integrated Resort Development.

CARRIED Cr Boulton voted in the positive Cr Owen-Jones returned to the room


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 5 REPORT ON A DEVELOPMENT PERMIT FOR A MATERIAL CHANGE OF USE

(CODE ASSESSMENT) FOR EXTENSIONS TO A LAWFULLY ESTABLISHED MAJOR SPORT, RECREATION AND ENTERTAINMENT FACILITY (BROADCASTING LIGHTS AND NIGHT RACING), AT RACECOURSE DRIVE, BUNDALL – DIVISION 7 PN96317/01/DA6

Conflict of Interest - Cr Gates:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Gold Coast Turf Club The nature of the relationship is: My personal relationship as a

former Director of the club The value of the gift or benefit received is: nil The nature of the other person’s interest in the matter is: the other person is the land

owner I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Gates left the room RESOLUTION G18.0612.015 moved Cr Caldwell seconded Cr Vorster

That Committee Recommendation EPE18.0605.005 be adopted as printed in the Economy Planning and Environment Committee Meeting Report.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 9 REPORT ON DEVELOPMENT APPLICATION SEEKING A DEVELOPMENT PERMIT

FOR A MATERIAL CHANGE OF USE (IMPACT ASSESSMENT) FOR MULTIPLE DWELLINGS (70 UNITS) AT 73-77 MACADIE WAY, MERRIMAC – DIVISION 8 PN143683/01/DA4 REPORT CONFIDENTIAL

Conflict of Interest - Cr Gates:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Urban Planning Services The nature of the relationship is: donor The value of the gift or benefit received is: $1850 on 2 September 2014

$1850 on 7 September 2015 $1850 on 9 September 2016

The nature of the other person’s interest in the matter is: UPS is the applicant’s consultant who would now be a prohibited donor under the Electoral Act 1992

I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Gates left the room RESOLUTION G18.0612.016 moved Cr Caldwell seconded Cr O’Neill 1 That the report be deemed a confidential document and be treated as such in

accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council’s notification to the Planning & Environment Court in the matter of Griffin Property Developments Pty Ltd (CAN 609 421 954) as trustee for the Griffin Development Trust v City of Gold Coast Council (Appeal Number 907 of 2018) be that the Court refuse the development application the subject of the appeal for the reasons in section 20 above.

CARRIED Cr Gates returned to the room


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 1 REPORT ON DEVELOPMENT PERMIT FOR A MATERIAL CHANGE OF USE

TO ESTABLISH A TELECOMMUNICATIONS FACILITY AT BARATTA STREET, SOUTHPORT – DIVISION 6 PN332305/01/DA1

In accordance with section 175G of the Local Government Act 2009, Cr Vorster raised a suspicion that Cr Owen-Jones may have a real or perceived conflict of interest in this matter for reason that he is a shareholder in Telstra, which is a competitor of the applicant. Cr Owen-Jones advised he does not have a real or perceived conflict of interest for reason that he does not have a controlling interest in Telstra and has no greater personal interest than any other person in the general community (section 175D (2) (b) of the Local Government Act 2009).

RESOLUTION G18.0612.017 moved Cr Owen-Jones seconded Cr Caldwell


CARRIED Cr Crichlow requested that her vote in the negative be recorded


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 8 NORWELL INVESTIGATION AREA – DRAFT CITY PLAN MAJOR UPDATE

PD98/113/1275/14/04(P1) REPORT CONFIDENTIAL Material Personal Interest - Cr Baildon:- Pursuant to section 175C(2) of the Local Government Act 2009, I would like to inform the meeting that I have a material personal interest in this matter, the particulars of which are as follows: The name of the person or entity who stands to gain a benefit, or suffer a loss, depending on the outcome of the consideration of the matter at the meeting is:

Cr Baildon

How this person or entity stands to gain the benefit or suffer the loss is:

As a shareholder of Villaworld through Company Performance

I will now leave meeting so that the matter may be discussed and voted on in my absence. Cr Baildon left the room RESOLUTION G18.0612.018 moved Cr Tozer seconded Cr Caldwell

That Committee Recommendation EPE18.0605.008 be adopted as printed which reads as follows:- 1 That the report/attachment be deemed non-confidential except for those parts


2 That the proposed updates to City Plan, as identified in Attachment C, be endorsed to be included as part of future City Plan Major update.

3 That the proposed drafted content, as identified in Attachment D, be endorsed in principle to be included as part of future City Plan Major update.

4 That the Norwell Investigation Area (248 Eggersdorf Road, Ormeau) draft Major update is included in the planning assumptions for a future amendment to the Local Government Infrastructure Plan.

5 That local recreation parks identified in Attachment D, be included in a future amendment to the Local Government Infrastructure Plan.

CARRIED Cr Baildon returned to the room


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 3 REPORT ON SUPERSEDED DEVELOPMENT APPLICATION FOR A

DEVELOPMENT PERMIT FOR A MATERIAL CHANGE OF USE (IMPACT ASSESSMENT) TO ESTABLISH ATTACHED DWELLINGS (77 DWELLINGS) AT 28 BONOGIN ROAD, MUDGEERABA – DIVISION 9 PN146515/01/DA3

RESOLUTION G18.0612.019 moved Cr Tozer seconded Cr Caldwell


CARRIED UNANIMOUSLY


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ITEM 7 ENTRY OF NINE PLACES IN THE GOLD COAST LOCAL HERITAGE

REGISTER CE116/60/53(P1)

RESOLUTION G18.0612.020 moved Cr Caldwell seconded Cr PJ Young

That Committee Recommendation EPE18.0605.007 be adopted as printed which reads as follows:- 1 That the following places be entered in the Gold Coast Local Heritage Register:

Anzac Park Memorial Gates

AR DEE, Tugun

Coolangatta War Memorial

Coomera River Bridge (1930)

Currumbin Creek Rail Bridge (former)

Nerang Police Lock-up

Pimpama Rifle Range (former)

Southport State High School

Southport War Memorial and Honour Rolls

2 That the notice of decision for entry of places in a local heritage register be carried out in accordance with the requirement of Section 120 of the Queensland Heritage Act 1992.

3 That the City Plan Heritage overlay map be amended in the next available amendment to include the nine local heritage places entered in the Gold Coast Local Heritage Register and form part of a future Major update to City Plan.

A division was called For 15 Cr Tozer, Cr Owen-Jones, Cr PJ Young, Cr Caldwell, Cr Vorster,

Cr Crichlow, Cr Baildon, Cr O’Neill, Cr La Castra, Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr McDonald, Cr Tate

Against 0 Abstained 0 Absent 0

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.4 ECONOMY PLANNING AND ENVIRONMENT (Continued) ADOPTION OF THE ECONOMY, PLANNING AND ENVIRONMENT COMMITTEE REPORT RESOLUTION G18.0612.021 moved Cr Caldwell seconded Cr O’Neill That the Report of the Economy, Planning and Environment Committee’s Recommendations of Tuesday, 5 June 2018, numbered EPE18.0605.001 to EPE18.0605.009, be adopted with the exception of:- Recommendation Numbers EPE18.0605.001

EPE18.0605.003 EPE18.0605.004 EPE18.0605.005 EPE18.0605.007 EPE18.0605.008 and EPE18.0605.009 which were specifically resolved.

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, 7 June 2018. RESOLUTION G18.0612.022 moved Cr La Castra seconded Cr PC Young That the Report of the Events, Tourism and Governance Committee Meeting held on Thursday, 7 June 2018 covered by Recommendations numbered ETG18.0607.001 to ETG18.0607.005 be received.

CARRIED ITEM 5 2022 LIFESAVING WORLD CHAMPIONSHIPS

CM787/789/04/08(P1) REPORT CONFIDENTIAL Conflict of Interest - Cr Taylor Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows:

The nature of the interest is: I am a life member of Kurrawa

Surf Life Saving Club. The nature of the relationship is: Life Member of Kurrawa Surf

Club The value of the gift or benefit received is: Nil The nature of the other person’s interest in the matter is: potential location of event I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Taylor left the room

CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Gates seconded Cr La Castra That Council 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

5 2022 Lifesaving World Championships Prejudicial Matter

CARRIED

PROCEDURAL MOTION moved Cr Tozer seconded Cr PJ Young That the Council move into Open Session.

CARRIED


9 RECEPTION & CONSIDERATION OF COMMITTEE REPORTS (Continued) 9.5 EVENTS, TOURISM AND GOVERNANCE ITEM 5 2022 LIFESAVING WORLD CHAMPIONSHIPS

CM787/789/04/08(P1) REPORT CONFIDENTIAL RESOLUTION G18.0612.023 moved Cr Tozer seconded Cr Vorster

That Committee Recommendation ETG18.0607.004 be adopted as printed which reads as follows:- 1 That the report/attachment be deemed non-confidential except for those parts


2 That the applicant (Surf Life Saving Queensland) be advised that Council will invest an amount into the event as indicated in the Confidential Attachment, with the deletion of part 2 which is a duplication.

CARRIED UNANIMOUSLY

Cr Taylor returned to the room ITEM 6 EX-AUSTRALIAN DEFENCE FORCE PERSONNEL RESOLUTION G18.0612.024 moved Cr Vorster seconded Cr Tate

That Committee Recommendation ETG18.0607.005 be adopted as printed which reads as follows:- That a report be presented to the Events, Tourism and Governance Committee investigating opportunities for advancing a positive discrimination program in order to bring ex-Australian Defence Force personnel into roles within the organisation.

CARRIED ADOPTION OF EVENTS, TOURISM AND GOVERNANCE COMMITTEE REPORT RESOLUTION G18.0612.025 moved Cr La Castra seconded Cr PC Young That the Report of the Events, Tourism and Governance Committee Recommendations of Thursday, 7 June 2018, numbered ETG18.0607.001 to ETG18.0607.005, be adopted with the exception of Recommendation Numbers ETG18.0607.005 and ETG18.0607.006 which were specifically resolved.

CARRIED


10 CONSIDERATION OF NOTICES OF MOTION Nil 11 QUESTIONS ON NOTICE / ANSWERS TO QUESTIONS ON NOTICE Nil 12 PRESENTATION OF PETITIONS 12.1 PROPOSED DEVELOPMENT – CHILD CARE CENTRE ASHMORE

RESOLUTION G18.0612.026 moved Cr La Castra seconded Cr PJ Young That the above Petition be received and referred to the appropriate committee for consideration and report to Council.

CARRIED

13 GENERAL BUSINESS Nil CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Vorster seconded Cr Gates That Council 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

14.1 Health and Knowledge Precinct Budgetary Matter

14.6 Coomera Community Hub Prejudicial Matter

CARRIED PROCEDURAL MOTION moved Cr Tozer seconded Cr Gates That the Council move into Open Session.

CARRIED


14 OTHER BUSINESS 14.1 RATING OF HEALTH & KNOWLEDGE PRECINCT

RV36/696/05(P1) Attachment A – Gold Coast Health and Knowledge Precinct Attachment B – Parkland Priority Development Area 1 BASIS FOR CONFIDENTIALITY I recommend that this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage. I recommend that the report and attachments be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to advise Council that land within the Parklands Priority Development Area (PDA) of the Gold Coast Health and Knowledge Precinct (H&KP) is expected to become rateable from 1 January 2019 and to propose an approach to rating the land. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 Health & Knowledge Precinct

The City’s Economic Development Strategy 2013 – 2023 identified a need for the City to broaden its economic employment profile to assist in stabilising its economy against the cyclic impacts of the tourism and construction sector and to importantly prepare the City for the employment and investment opportunities and risks associated with future digital disruption. The Gold Coast Health and Knowledge Precinct plays a significant part in implementing the strategy.

The 2019 projected immediate service population in the H&KP is estimated at approximately 31,500 (approximately 19,000 students, 9,500 workers and 3,000 residents). Student and employment growth could add another 15,000 – 20,000 people to the precinct in the next 10 years potentially taking the immediate service population up to 50,000 plus.


14 OTHER BUSINESS (Continued) 14.1 RATING OF HEALTH & KNOWLEDGE PRECINCT

RV36/696/05(P1) (Continued)

The Parklands PDA is a component of the H&KP and is 293,400 square meters in total, comprising the following:

1. 61,770 square meters of road

2. 89,260 square meters of land remaining in State ownership - Minister for State Development, Manufacturing, Infrastructure and Planning (83,151 square meters) and Queensland Health (6,109 square meters).

3. 71,440 square meters of land used for the Gold Coast 2018 Athletes Village – expected to move into private ownership from 1 January 2018 and therefore become rateable land

4. 70,990 square meters of land expected to remain State Land but be vested under the control of the City to be used for park and recreational purposes.

As a consequence of creating the Gold Coast 2018 Athletes Village, the land within the Parklands PDA area will be available for development in January 2019.

Please refer to: Attachment A – Gold Coast Health and Knowledge Precinct

Attachment B – Parkland Priority Development Area. 5.2 Contributed Assets As part of the development of the H&KP and in particular, the Parklands PDA, the City is expected to inherit a range of contributed assets in early 2019. These assets include roads and associated utilities, streetscape works, a civic park, a regional park with a regional stormwater management system and the Village Heart. These assets have a value of approximately $40 million. With the exception of the Village Heart these assets are considered standard public assets that the City would normally expect to have contributed with a development of the scale and nature of the Parklands PDA. 5.3 Operations and Maintenance Costs City officers have negotiated the Gold Coast 2018 Games Village/Parklands development project to fund, procure and deliver capital works upgrades beyond the original project scope. These include replacement of part of the Western Force Sewerage Main, secondary fibre conduits and pits that support the City owned telecommunications network and a recycled water irrigation system for the regional park. These can be considered as future capital cost savings of approx. $1.3 million for the City and will assist in future revenue generation for the City (telecommunications revenue) and reduce ongoing maintenance.



RV36/696/05(P1) (Continued) The contributed assets to support the projected service population from 2019 will be, in some cases several years old (due to the long development time of the Gold Coast 2018 Games Village) so there will be some wear and tear on these assets. The City’s Infrastructure Agreement for the Gold Coast 2018 Athletes Village development requires these assets to be fit for purpose for the City’s use and to be defect free. On this basis officers have estimated the costs for operations and maintenance for the contributed assets within the Parklands PDA. The annual cost has been calculated at $1.66 million. Table 1 below summaries these costs. This amount is approximately $300,000 lower than the preliminary cost projections provided to Councillors on 23 May 2017. This is largely due to City officers negotiating a further $250,000 capital contribution from the State towards funding of the City owned Parklands PDA maintenance building needed to support maintenance and operational activities. Table 1 – Parklands Precinct – Estimated Annual Operations and Maintenance Costs Contributed Assets Asset

Custodians by Directorate

Maintenance and Operational Costs (including WOL) per annum

Capital Costs

Regional and civic parks and streetscape (excluding streetscape, footpaths, roads and stormwater)

Lifestyle and Community

$1,309,153 $287,387 State Government to contribute additional ($250,000)

Village Heart Lifestyle and Community

$320,060

Footpaths, roads and stormwater

Transport and Infrastructure

$32,000

Total $1,661,213 $37,387 The funding in the Table 1 will be requested under the relevant Directorate’s maintenance and operational budgets as part of the 2018/19 budget process. It should be noted that for 2018-19 this amount will be halved as the City will only be responsible for these assets from January 2019. 5.4 Village Heart Asset Replacement Cost As the Village Heart and surrounds have not been handed over to the City nor final detailed “as constructed” drawings supplied, a comprehensive whole of life cost and capital renewal budget cannot be assessed in detail at this time. It is anticipated that the required documentation will be provided to the City prior to Christmas 2018.



RV36/696/05(P1) (Continued) However, the value of the Village Heart assets has been estimated at $8M and having a life span of 20 years. Accordingly, should the City form a view that it wishes to renew these assets, funding their replacement over their life span is estimated as an annual amount of $400,000. Alternatively, should the City form a view that these assets will not be renewed, funding would be required to remove the structures and rectify the Village Heart area to a desired state. The funding required will depend upon the desired future state. 5.5 Rating of Land in the Parklands PDA The combined (15% discounted) total site value of all the property within the Parklands PDA is $48,000,000. This value is attributed across the components as follows:

road and parklands (1.and 4 of 5.1 above) - $2,000,000

mixed use - land remaining in State ownership (2. of 5.1 above) - $27,000,000

residential – former Gold Coast 2018 Athletes Village (3. of 5.1 above) - $19,000,000 Only the residential component is expected to become rateable in the 2018/19 financial year with ownership resting in a single entity, an investment trust.

The Investment Trust has indicated that its intention for at least the first 5 years of ownership to not establish the residential units with an individual title under a Community Title Scheme which would enabling the sale of individual units or groups or units, but rather to rent the units for that initial period.

Valued as a single parcel a site valuation of $21,850,000 applies. Valued as separately surveyed parcels, a total site valuation of $28,200,000 applies and is apportioned as per the following:

Parcel 1 – 156 units – not Community Titled – site value of $3,300,000

Parcel 2 – 243 units/commercial/retail – not Community Titled – site value of $3,600,000

Parcel 3 – 139 units/commercial/retail – not Community Titled – site value of $5,600,000

Parcel 4 – 295 units – not Community Titled – site value of $4,700,000

Parcel 5a – 26 units – not Community Titled – site value of $2,800,000

Parcel 5b – 21 units – not Community Titled – site value of $2,600,000

Parcel 6 – 372 units – not Community Titled – site value of $5,600,000 It should be noted that should the residential parcels be valued together it is likely that the single site value will be less than the total of the individual site values.



RV36/696/05(P1) (Continued) Given that survey plans are yet to issue for the site, it is likely that, in the first instance, a single site valuation will apply .However, the owner may request that two site valuations be issued, one applying to the solely residential component and another to the commercial/retail component should this be operational. The above site valuations are to apply for the 2018/19 financial year. As averaging cannot apply without a site valuation for 2017/17 and 2017/18, then regardless of what valuations are issued, Council must apply an averaging factor. In 2018/19, the averaging factor is 0.92. 5.5.1 Estimated additional Rate Revenue – Parklands PDA Prior to the creation of the 2018 Games Village the site was used as a State government owned facility used for harness racing, the Gold Coast Show and other events and, as such, was non rateable. Definition of the differential rating categories that may apply:

Rating category

Definition

4B Commercial, not a community titled unit with an averaged value over $590,000 to $5,900,000

4C Commercial, not a community titled unit with an averaged value over $5,900,000 to $11,200,000

4D Commercial, not a community titled unit with an averaged value over $11,200,000

7G Multi-residential 21 to 40 units, permanent residents 7H Multi-residential greater than 40 units, permanent residents 7R Multi-residential 21 to 40 units, itinerants 7S Multi-residential greater than 40 units, itinerants

5.5.1.1 Single Site Valuation – 2018 Games Village Component The parcel will be rated as the highest and best use. As the Parklands PDA provides for an approved use of commercial/retail for a number components within the parcel, the entire parcel will be rated as commercial – differential rating category 4D. Applying the proposed cents in the dollar for 4D in the 2018/19 financial year, the resultant general rate is an annual amount of $224,554, a six month levy of $112,277.



RV36/696/05(P1) (Continued) 5.5.1.2 Two Site Valuations – 2018 Games Village Component Should both a residential component site valuation and a commercial/retail site valuation be provided then the commercial/retail component will be rated as differential rating category 4C and the residential component will be rated as either differential rating category 7H if all units are used for permanent residents or category 7S if any of the units are used to provide accommodation to itinerants during the 1 January 2019 to 30 June 2019 period. Applying the proposed cents in the dollar for 4B, 7H and 7S in the 2018/19 financial year, the resultant general rate is as follows:

4C and 7H - $151,586, a six month levy of $75,793.

4C and 7S - $203,816, a six month levy of $101,908. 5.5.1.3 Valuation for Each Parcel – 2018 Games Village Component Should a separate valuation issue for each parcel then parcels 1, 4 and 6 will be rated as differential rating category 7H or 7S dependent upon the usage of the units; parcels 2 and 3 will be rated as differential rating category 4B and parcels 5a and 5b will be rated as differential rating category 7G or 7R dependent upon the use of the units. For estimation purposes, the use of the units has been take to be either all permanently rented or all units having a tourist rental component. Applying the proposed cents in the dollar for 4B, 7G, 7H, 7R and 7S in the 2018/19 financial year, the resultant general rate is as follows:

4B, 7G and 7H - $215,512, a six month levy of $107,756.

4B, 7R and 7S - $259,118, a six month levy of $129,559. 5.5.1.4 Future General Rate Estimate – Parklands PDA Should all buildings be Community Titled and used to provide rental accommodation to permanent residents then the annual general rate that would generated in 2018/19 financial year is $1,443,556. Should all buildings be Community Titled and used to provide rental accommodation to itinerants then the annual general rate that would generated in 2018-19 financial year is $2,923,420.



RV36/696/05(P1) (Continued) The Community Title estimations above are based solely on unit numbers and do not take into account floor area or floor height and as such, are conservative. Also, it is highly likely that, going forward, the units will be occupied by a combination of owner occupied, permanent rental and itinerant rental situations. The proportions of each will determine the rate revenue generated. If the existing City wide proportions of permanent rental units and units rented to itinerants were to apply, the annual general rate that would generated in 2018-19 financial year is $1,620,434. Should all the buildings be Community Titled, there will also be rate revenue generated from the commercial components. The rate revenue generated from these components will vary depending on how the components are configured i.e. as a lot or lots within a Community Title Scheme or as a separate lot on plan. In addition, as the land that currently remains in the name of the State (4. of 5.1 above) is sold to a rateable entity additional general rate additional general rate will be generated. Based on the total site valuation for the 2018/19 financial year (a discounted amount of $27,000,000), the annual general rate that would generated in 2018/19 financial year under differential rating category 4D is $277,480. However, as can be seen from the above, whether a building is Community Titled or not, the use put to a building or lot and the subsequent application of minimum general rates can have a significant impact on the general rate generated. 5.5.1.5 General Rate Estimate - Gold Coast H&KP The greater majority of the land within the H&KP is non-rateable i.e. hospital ; university ; state owned land ; schools. However, in addition to land within the Parklands PDA there is other land, predominantly leases from the State, that Council considers to be rateable e.g. Gold Coast Private Hospital Pty Ltd. An examination of all current leases entered into by the State, or an agency of the State, within the H&KP will be examined in relation to rateability e.g. leases entered into by the university. It should be noted that the type of lease entered into (some leases actually stipulate that rates are not applicable) by the State or their agency, has put the rateability of the leases under a cloud and Council is seeking a legal opinion regarding that aspect.



RV36/696/05(P1) (Continued) Other land within the H&KP is freehold and rateable:

Southport Australian Rules Football Club Ltd (2 Commercial accounts – the club and Mantra)

Sitting Bear Pty Ltd (5 vacant land commercial accounts) Griffith University (multiple residential building of 129 units) Energex (1 commercial account – offices) Axiom (1 commercial account – telecommunications tower) 50 principal place of residence accounts 11 non principal place of residence accounts 301 permanent rental accounts.

In addition, there is also land owned by the State and leased through the City to a sporting club which is rateable but subject to Council’s Rate Donation, Infrastructure Charges and Development Application Fee Discount Policy i.e. Parkwood Sharks Rugby League Club Incorporated. It should be noted that any increase in the differential general rate impacting this property will result in a consequential increase in the rate donation expense budget. State owned land within the Parklands PDA is discussed above in 5.5.1.4. There is also State owned land and land controlled by a State agency/s that is able to become rateable in the future dependent upon it being sold or leased by the State or agency. 5.5.2 Village Heart – Recovery of Costs When considering the rating of land in the Parklands PDA Council may wish to consider whether or not it wishes to recover all or part of the additional costs to the City associated with maintaining the contributed assets from the properties within the Parklands PDA area. As stated above, with the exception of the Village Heart, the contributed assets are considered standard public assets that the City would normally expect to result from a development the scale and nature of the Parklands PDA. As such, it is recommended that, should Council wish to recover the costs associated with the contributed assets, then only those costs linked to the Village Heart should be recovered. The Village Heart is not for the exclusive use of the students, workers and residents of the H&KP, however, it is considered that the group would be more likely to utilise the Village Heart than the broader community. Given the above, should Council wish to recover all or part of the costs associated with the Village Heart, it may wish to consider such recovery from the rateable properties within the H&KP or a subset of the Precinct i.e. the rateable properties within the Parklands PDA.



RV36/696/05(P1) (Continued) Should Council wish to recover the costs associated with the Village Heart other than through an increase across the entire rate base of the City, then the Local Government Act and Regulation provide two rating mechanisms: a special rate or differential rating. 5.5.2.1 Special Rate Under the Local Government Act 2009 Council may make and levy special rates and charges on rateable land in Council’s local government area. Special rates and charges are for services, facilities and activities that have a special association with particular land because:

1. the land or its occupier:

a. specially benefits from the service, facility or activity; or

b. has or will have special access to the service, facility or activity;

2. the land is or will be used in a way that specially contributes to the need for the service, facility or activity; or

3. the occupier of the land specially contributes to the need for the service, facility or

activity. For Council to be able to levy a special rate or charge it must be of the opinion, reasonably and rationally held, that the identified land or its occupiers will specially benefit from the service, facility or activity. In the context of the proposed maintenance of the contributed assets within the Village Heart, the relevant aspect of the test is whether any land or its occupiers will receive a special benefit from the proposed maintenance, or whether any land or its occupiers has or will have special access to the maintenance program that then delivers a special benefit. For Council to form a reasonable opinion there would need to be evidence of the special benefit to the land or its occupiers. Importantly, the benefit would need to be attributed to the maintenance of the contributed assets, and not the assets themselves. The type of evidence required would be from an independent valuer. However, it would be extremely difficult for a valuer to produce evidence, in a before and after context, of an increase in property value attributed to Council maintaining these particular contributed assets. . Chris Boge from Clayton Utz and Council’s Executive Coordinator Property Management, Brendan Madden, both agree it would be a difficult, if not impossible, valuation task. For the reasons outlined above it is recommend that Council does not seek to levy special rates or charge in order to fund the ongoing maintenance and operation of various assets within the Village Heart.



RV36/696/05(P1) (Continued) 5.5.2.2 Differential Rates It is possible to recover the costs associated with the Village Heart solely from the properties within the Parklands PDA via a differential rating system. However, given that Village Heart has a catchment of the entire H&KP and not solely the Parklands PDA, it is considered more able to withstand any challenge that may arise, to apply differential rates across the H&KP or the amended H&KP. Council currently has 85 differential rating categories. To recover the above associated costs would require the introduction of 40 additional differential rating categories in order to cover all possible property configurations that may occur during the 2018/19 financial year. 5.5.2.3 Impact Considerations Two extracts from the H&KP Master Plan:

“ATTRACTING TALENT As global mobility improves there will be increased competition for knowledge workers between cities, states and nations. The propulsive force of knowledge cities comes from their inhabitants. Australian knowledge cities rely on being able to attract resources into our economy. The Gold Coast provides a liveable, high amenity urban lifestyle, with access to the recreation opportunities required to attract and retain knowledge workers and their families.” “SUSTAINABLE With direct access to the City of Gold Coast’s network of cycle ways and two light rail stations, the Parklands PDA is a walkable community, built to the highest liveable housing design standard and achieves UDIA 5 leaf EnviroDevelopment certification for outstanding sustainability initiatives.” (UDIA 6 leaf EnviroDevelopment certification was achieved)

The H&KP was established to attract investment into the City that would assist to change the City’s employment profile. A significant aspect for businesses and organisations when considering investment in the precinct is the ability to attract and retain the required knowledge workers. The concept of the Parklands PDA, including the high standard contributed assets, housing availability and immediate access to commercial/retail in what could be described as a village environment, plays an important part in attracting properly aligned businesses or organisations to invest in the precinct. The contributed assets including the Village Heart, could be seen to benefit both the investing businesses and the accommodation owner.



RV36/696/05(P1) (Continued) If differential rates were applied sole to rateable land within the Parklands PDA, it is expected that such rateable land will relate to predominantly the residential component of the PDA area with some commercial/retail and will be owned by a single property owner. Should Council wish to recover all or part of the costs, there will be a significant impact on that owner. As individual units are sold (long term view assuming buildings are Community Titled) and the State owned land within the Parklands PDA area is sold or leased to rateable entities, then the maintenance, operational and asset replacement costs, if applicable, will be dispersed over more and more entities. However, should Council opt to apply the differential rates on all rateable land within the H&KP the ‘one owner’ impact no longer applies. 5.5.2.4 Implementation Options Should Council wish to recover the costs associated with the Village Heart via the application of differential rates then there are a number of decisions to be made: (a) Apply the differential rate across the rateable properties within the H&KP

(recommended) or limit the application of the differential rates solely to the rateable properties within the Parklands PDA.

(b) The quantum of additional revenue to be raised via the differential rate will fund what

expenditure?:

1. the operational, maintenance and asset replacement costs

2. the operational and maintenance costs and delay the recovery of the asset replacement costs for a number of years e.g. 5 years, as it is believed that a wider rate base will exist at that time (recommended). At this time Council will be in a position to establish firm estimates of the life of the assets as well as replacement costs if a replacement of the assets is actually to occur. The downside is that there may be less years in which to accumulate any required funds.

3. the operational and maintenance costs and not recovery of the asset replacement costs.

4. for 1. 2. and 3. above, assess the additional levy on a proportionate basis as if all the available land within the Parklands PDA is rateable (other non-rateable land within the H&KP or the amended H&K would not form part of this calculation) i.e. Council would not recover the full costs until all the currently non-rateable State land within the Parklands PDA is sold or leased.

5. the operational and maintenance costs with the replacement costs levied on a proportionate basis as if all the available land within the Parklands PDA is rateable (other non-rateable land within the H&KP or the amended H&K would not form part of this calculation).




Council will also need to consider the property uses to which to apply the differential rates:

1. All rateable properties (recommended), ), it is considered more able to withstand any challenge that may arise.

2. All rateable properties excluding properties used as a principal place of residence

3. All rateable properties excluding properties used as a principal place of residence and non-principal place of residence properties

4. All rateable properties excluding properties used as a principal place of residence, non-principal place of residence properties and permanently rented properties

When considering excluding property uses such as those used as a principal place of residence, or for permanent rental, from the application of the differential general rate it should be remembered the Games Village residential units are expected to be sold over an extended period of time. Should a sold unit be used for an excluded property use then this will reduce the rate base of properties subject to the application of the differential general rates. Another consideration is that the former Games Village is not expected to become rateable until 1 January 2019. Council must set the rates in the dollar for each differential general rate at its budget meeting for the financial year. As some properties within the H&KP are existing and therefore remain rateable from 1 July 2018, it is recommended that the effective start date for the additional differential general rate categories be set at 1 January 2019. This will enable Council to generate the required additional revenue equitably across all rateable properties within the H&KP. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Theme Supporting the delivery of the Gold Coast 2020 B We manage the city responsibly Our stewardship of the city provides value for money for ratepayers 7 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations No additional funds are required should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets. People and Culture No additional staff are required should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets.



RV36/696/05(P1) (Continued) 8 RISK MANAGEMENT The introduction of new differential rates poses a risk of non-acceptance by the impacted ratepayers. Where a single ratepayer is significantly impacted there is a risk that a legal challenge to the rates is undertaken. 9 STATUTORY MATTERS Please refer to 5.5.2.1 and 5.5.2.2 above. 10 COUNCIL POLICIES Both the Revenue Policy and Revenue Statement must be updated should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets. 11 DELEGATIONS Not Applicable 12 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

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

Cherie Watt, Executive Coordinator Legal Services

Office of the Chief Operating Officer

Yes (legal components)

Bryan Case, Executive Officer City Projects

Office of the Chief Executive Officer

Yes

Leigh Jackson, Acting Executive Coordinator Revenue Services

Organisational Services Yes

Brendan Madden, Executive Coordinator Property Management




RV36/696/05(P1) (Continued) 13 STAKEHOLDER IMPACTS External / community stakeholder Impacts Should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets a subset of the City’s ratepayers will be impacted. Internal (Organisational) Stakeholder Impacts Should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets a subset of the City’s ratepayers will be impacted with a likely consequential flow on impact to both the Customer Contact and Revenue Services branches. 14 TIMING Should Council resolve to apply additional differential rates to recover the costs associated with the Village Heart contributed assets then the relevant rates will be adopted in Council’s 2018/19 financial budget and be applied to the applicable properties as and when those properties become rateable. 15 CONCLUSION The Gold Coast H&KP plays a significant part in implementing the City’s Economic Development Strategy 2013 – 2023. The Parklands PDA is a component of the H&KP. Included in the PDA is 71,440 square meters of land used for the Gold Coast 2018 Athletes Village. This land is expected to move into private ownership from 1 January 2019 and therefore become rateable land. Prior to the creation of the 2018 Games Village the site was used as a State government owned facility used for harness racing, the Gold Coast Show and other events and, as such, was non rateable. As part of the development of the H&KP and in particular, the Parklands PDA, the City is expected to inherit a range of contributed assets in early 2019. Apart from the Village Heart component of these contributed assets, the remainder of the contributed assets are considered standard public assets that the City would normally expect to have contributed with a development of the scale and nature of the Parklands PDA. The operation and maintenance costs applicable to the contributed assets are considerable i.e $1.66M annually of which $320K applies to the Village Heart. The estimated replacement cost of the Village Heart contributed assets is $8M with an estimated life of 20 years.



RV36/696/05(P1) (Continued) On the converse side, the rate revenue generated over time is expected to exceed the operation and maintenance costs associated with the contributed assets and also the replacement costs of the Village Heart assets. Should Council wish to raise additional revenue from a subset of ratepayers to cover the costs associated with the Village Heart then the legal advice is that differential rating rather than a special rate should be implemented and that it would be more legally defensible to apply the differential rates to all rateable properties within the H&KP rather than limiting the application of the differential rates to the rateable properties within the Parklands PDA. When considering the quantum of the funds to be generated, it is recommended that Council should apply differential rates to recover the operation and maintenance costs associated with the Village Heart commencing the financial year 2018/19. However, it is recommended that Council not commence generating the asset replacement costs until the 23/24 financial year when Council will be in a position to establish firm estimates of the life of the assets as well as having greater certainty in relation to the replacement costs if it is decided that the assets will actually be replaced. It is expected that at this point in time the rating base will have expanded considerably and be better able to cater for an increase in the revenue generated from the differential rates to cover the replacement costs. Should Council wish to apply additional differential rates to recover the costs associated with the Village Heart contributed assets then it is recommended that the rates apply to all rateable properties as this approach is considered more able to withstand any challenge that may arise. Also, if properties such as those used as a principle place of residence or for permanent rental are excluded, it is highly likely that the rate base against which to apply the differential rates will be reduced over time as the Games Village residential units are Community Titled and then sold. The additional differential general categories will need to be effective from 1 January 2019 to ensure that the additional revenue required is generated equitably from all rateable properties within the H&KP.



RV36/696/05(P1) (Continued) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report and attachments be deemed non-confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That additional differential general rates be introduced in the 2018/19 financial year to generate sufficient additional revenue to fund the operation and maintenance costs associated with Village Heart contributed assets within the Parklands Priority Development Area.

3 That the additional differential general rates be applied to all rateable properties within the Health and Knowledge Precinct as defined in Attachment B.

4 That the additional differential general rates are to take effect from the half year commencing 1 January 2019.

Authorised by:

Glen Potter Director Organisational Services

TRACKS REF: 69717921







Attachment B Redacted












RV36/696/05(P1) (Continued) RESOLUTION G18.0612.027 moved Cr Tate seconded Cr Vorster 1 That the report and attachments be deemed non-confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That additional differential general rates be introduced in the 2018-19 financial year to generate sufficient additional revenue to fund the operation and maintenance costs associated with Village Heart contributed assets within the Parklands Priority Development Area with the exception of the specific rating matter canvassed at the meeting.

3 That the additional differential general rates be applied to all rateable properties within the Health and Knowledge Precinct as defined in Attachment B.

4 That the additional differential general rates are to take effect from the half year commencing 1 January 2019.

A division was called For 14 Cr Tozer, Cr Owen-Jones, Cr PJ Young, Cr Caldwell, Cr Vorster,

Cr Baildon, Cr O’Neill, Cr La Castra, Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr McDonald, Cr Tate

Against 1 Cr Crichlow Abstained 0 Absent 0

CARRIED BY SUPER MAJORITY

meeting adjourned at 2.52pm meeting reconvened at 3.14pm


14 OTHER BUSINESS (Continued) 14.2 REVENUE POLICY

FN334/375/20(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 adoption for 2018-19. 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 & Finance Committee endorsed the 2018-19 Revenue Policy for referral to Council for adoption at its meeting to be held on 12 June 2018. The proposed 2018-19 Revenue Policy has a minor amendment to the policy endorsed by the Special Budget and Finance Committee. The word ‘location’ has been included in Attachment 1, Appendix A in the first paragraph under the heading ‘General Rates’. The reason for the change is to accommodate the addition of location as a factor to assist with categorising property for the purposes of levying Differential General Rates. 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.



FN334/375/20(P1) (Continued) 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:

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.



FN334/375/20(P1) (Continued) 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 approved pensioners who are owner-occupiers of their principal place of residence. An approved pensioner is one who is:

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) usage 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) usage 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 rating resolution.



FN334/375/20(P1) (Continued) 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 owner-occupiers of 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.

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.



FN334/375/20(P1) (Continued) 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.

7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable.

9 RISK MANAGEMENT The Revenue Policy 2018-19 provides Council with a basis to manage its revenue activities in 2018-19 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.



FN334/375/20(P1) (Continued) 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. 12 DELEGATIONS

Not Applicable. 13 COORDINATION & CONSULTATION

Consultation has taken place with all relevant stakeholders in preparing the Revenue Policy 2018-19.

Name and Title of the Stakeholder Consulted


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

Executive Coordinator Revenue Services


Chief Operating Officer Office of the Chief Executive Officer

Yes



FN334/375/20(P1) (Continued) 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 2018-19 budget has been scheduled for 21 June 2018. The Revenue Policy must be adopted by Council prior to the adoption of budget. The policy will take effect on 1 July 2018. 16 CONCLUSION The adoption of the Revenue Policy 2018-19 will satisfy statutory requirements and provide Council with a policy for the efficient management of its revenue activities in 2018-19. 17 RECOMMENDATION It is recommended that Council resolves as follows: That the Revenue Policy for 2018-19 (as attached to this report) be adopted.

Author: Authorised by:

John Blair Joe McCabe Manager Corporate Finance Chief Operating Officer 4 June 2018

TRACKS REF: \ 69842671 RESOLUTION G18.0612.028 moved Cr Tate seconded Cr Vorster That the Revenue Policy for 2018-19 (as attached to this report) be adopted.

CARRIED UNANIMOUSLY



FN334/375/20(P1) (Continued)



































14 OTHER BUSINESS (Continued) 14.3 2017-18 LOAN BORROWINGS

FN334/-/-(P2) 1 BASIS FOR CONFIDENTIALITY Not Applicable 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to seek Council approval to draw down loans from Queensland Treasury Corporation in accordance with the revised budget. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Final Debt Requirements for 2017-18 The initial 2017-18 budget adopted by Council included loans of $40,962,536. In addition, loans of $2,373,757 were re-provided to fund capital works carried over from 2016-17, giving a total loan requirement of $43,336,293. The loan amount has been further adjusted in the September and March Budget Reviews resulting in a revised budget of $37,823,298, with both Waste Management and Tourist Parks reducing loan requirements. Information provided since the completion of the March Budget Review indicate that some funding allocated to Palm Beach Shoreline, Northern Gold Coast Sports & Community Precinct and City Place Making Program will be reprovided to 2018-19, further reducing the loan requirement for 2017-18. It is now projected that the loan requirement will be $31,265,299. Initial Budget &

Reprovisions March Revised

Budget Projected Loan

Requirement Waste Management 4,320,250 744,000 744,000 Tourist Parks 3,244,898 2,208,153 2,208,153 Centre Improvement Program 799,999 799,999 - General Loans 34,971,146 34,071,146 28,313,146 Total 43,336,293 37,823,298 31,265,299 General loans are loans for which repayments are funded from general revenue as there is no other specific funding source. Other loans are funded from specific sources such as Waste Management charge, Tourist Parks and Centre Improvement Program special charges.


14 OTHER BUSINESS (Continued) 14.3 2017-18 LOAN BORROWINGS (Continued)

FN334/-/-(P2) General loans are usually not project specific. However, for 2017-18 projected general loans include $2.6m for the Palm Beach Shoreline project and $1.9m for the Northern Gold Coast Sports & Community Precinct. The remainder will be used to partially fund capital programs, including stormwater drainage, road construction and road reconstruction. Current QTC borrowing rates for 10 and 15 year terms are 3.2% and 3.5% respectively. Financial Sustainability As has been the case for a number of years, Queensland Treasury Corporation (QTC) conducted a credit review of Council in 2017 and, based on that review, recommended to the Department of Infrastructure, Local Government and Planning that Council be approved to draw down the full amount of loans requested. Council subsequently received approval on 26 February 2018 for $41m. Council’s external debt balance as at 30 June 2017 was $686.3m. Based on a current projected loan program for 2017-18 of $31.3m and debt redemption of $75.0m, it is estimated that the external debt balance as at 30 June 2018 will reduce to $642.3m. The following ratios are monitored by QTC under the Master Facility Agreement that governs Council’s lending from QTC. Council is required to remain within the benchmarks set for each ratio and must inform QTC if performance could be outside benchmarks at any point in time.

A definition of each ratio is as follows: Leverage Ratio: Operating Revenue expressed as a percentage of Net Debt (Total Debt less Cash Investments). The negative figures indicate negative net debt, where cash investments are higher than the total debt balance. Adjusted Operating Surplus Ratio: This ratio measures whether Council’s operating revenue is sufficient to cover operating expenses. The ratio is adjusted to remove depreciation from operating expenses to avoid discrepancies between depreciation and Asset Management Plan required renewal spending. Debt Service Coverage Ratio: This ratio measures how many times net operating revenue (operating revenue less operating expenses, with interest and depreciation removed) covers the current year interest expense and current year debt principal repayments.

Ratio

min max

Leverage 60% -8% -4% 6% 12% 18% 17% 8% 3% 2% 2% 1%

Adjusted Operating Surplus 16% 13% 21% 24% 24% 24% 23% 24% 23% 24% 24% 24%

Debt Service Coverage 2.2 1.7 2.7 3.0 3.1 3.1 3.2 3.3 3.6 4.4 4.9 4.7

2022

-23

2023

-24

2024

-25

2025

-26

2026

-27

2018

-19

2019

-20

2020

-21

2021

-22

2027

-28Target

2017

-18



FN334/-/-(P2) Council currently sits comfortably within the required benchmark for each ratio in all years with the exception of 2017-18, primarily due to increased operating expenditure as a result of the Commonwealth Games (in accordance with the approved Games Program budget), and a payment of $20m to the State Government as a contribution to the construction of Light Rail stage 2. As the Light Rail is not a Council asset, this payment is classed as operating expenditure. QTC has been informed of the possibility that performance in 2017-18 may be outside of benchmark and they have approved the single year variance. The Leverage Ratio is a negative result in some years as the forecast cash balance is higher than the forecast debt balance. 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 All approvals required by legislation for the borrowing of funds from QTC have been obtained. 11 COUNCIL POLICIES Not applicable. 12 DELEGATIONS Not applicable 13 COORDINATION & CONSULTATION

Not applicable 14 STAKEHOLDER IMPACTS Not applicable.



FN334/-/-(P2) 15 TIMING Based on approval being received from Council, loans will be drawn prior to the end of June 2018. The loan approval will lapse if loans are not taken up by the end of June 2018. 16 CONCLUSION Council has received approval from the Department of Infrastructure, Local Government and Planning to draw down loans up to $41m. Loan requirements were reduced to $37.8m in the March Budget Review due to some capital works not proceeding in the current financial year. Current projections indicate that the final loan requirement for 2017-18 will be $31,265,299. Interest rates have remained low, with the current QTC 10 and 15 year borrowing rates being 3.2% and 3.5% pa respectively. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That a loan of up to $31,265,299 be drawn down from Queensland Treasury

Corporation to partly fund the 2017-18 capital program.

2 That Council note that its external debt balance is projected to be reduced by $44m in 2017-18.

Author: Authorised by:

Jordan Reeves Joe McCabe Executive Coordinator Financial Strategy Chief Operating Officer 18 May 2018

TRACKS REF: 69671407 RESOLUTION G18.0612.029 moved Cr Tate seconded Cr La Castra 1 That a loan of up to $31,265,299 be drawn down from Queensland Treasury

Corporation to partly fund the 2017-18 capital program.

2 That Council note that its external debt balance is projected to be reduced by $44m in 2017-18.

CARRIED UNANIMOUSLY


14 OTHER BUSINESS (Continued) 14.4 APRIL 2018 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 – April 2018 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 2018. 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) 14.4 APRIL 2018 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 April 2018 represents the 2017-18 March 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 March Budget Review was presented to council, via the Special Budget & Finance Committee, on 29 May 2018. The March Budget Review included adjustments resulting from previously identified trends.

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 $95m. $108m has already been received up to the end of April. If current revenue trends continue, it is likely that Council will receive around $130m 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

Economy, Planning & Environment

Development Assessment Revenue: Revenue to April 2018 totals $26 million and exceeds the current revised annual budget by 5% ($1.2 million). A small decline in revenue was experienced during the first two weeks of April, however activity levels have reverted to average levels over the last two weeks of the month.With some uncertainty surrounding likely activity levels post-Commonwealth Games, a relatively conservative approach was taken, with a budgetary increase of $3 million recognised as part of the March 2018 budget review.This increase brings the revised annual budget to $27.85 million for the year.It now appears possible this revised budget may be exceeded by a further $2 million.

($2,000,000)

Office of the Chief Operating OfficerInterest on Investments - Investment income received or accrued to the end of April is just under the full year revised budget of $27.7m. With two months remaining, actual interest received will likely exceed the revised budget based on the fact that Council has been earning $2.5m to $3.0m per month.

TBC


14 OTHER BUSINESS (Continued) 14.4 APRIL 2018 MONTHLY FINANCIAL REPORT FN334/375/19(P1) (Continued) 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) 14.4 APRIL 2018 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 April 2018.

Council has spent $814.1 million from an operating expense budget of $1,036.1 million (including reprovisions) in 2017-18. This represents 78.6% expended at 83.3% of the year elapsed.

By comparison 78.2% ($718.3 million) of the previous year’s actual expenditure had been spent from the budget of $919.1 million at the end of April 2017. 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 April 2018 $246.0 million ($320.4 million inclusive of commitments) had been spent from a total capital budget of $408.0 million (including proposed reprovisions). This represents 60.3% (78.5% inclusive of commitments) of the total budget with 83.3% of the year elapsed. Commitments relate to both current year and reprovided projects from 2016-17.

By comparison, $206.2 million (52.5%), or $293.0 million (74.6%) inclusive of commitments, of the capital budget of $393.1 million had been spent at the end of April 2017.

Expense - Operating 2017 - 2018 Budget = $1036M

78.6%

78.2%

- 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 = $408M

Expense - Capital 2016 - 2017 Budget = $393M

60.3% 78.5%

0 100 200 300 400

Budget

Actual + Commitments

Millions

2017-18 Capital Expenditure - Budget v Actual + Commitments

52.5% 74.6%

0 100 200 300 400

Budget

Actual + Commitments

Millions

2016-17 Capital Expenditure - Budget v Actual + Commitments


14 OTHER BUSINESS (Continued) 14.4 APRIL 2018 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 $87.5 million, which is 86.4% of the revised budget of $101.3 million as at the end of April 2018 (83.3% of year elapsed). Building and Development Fees along with Licences & Permits Fees are exceeding budgeted expectations.

By comparison, $88.0 million (86.5%) of last year’s budget of $101.6 million for fees and charges revenue had been achieved by the end of April 2017.

Rates and Utility Charges

The amount of rates and utility charges brought to account as at the end of April 2018 was $1,001.7 million, which is 89.1% of the total budget of $1,124.4 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, $974.6 million (91.0%) of last year’s total rates and utility charges revenue budget of $1,070.9 million had been achieved by the end of April 2017.

Interest Income

Interest income at the end of April 2018 was $30.9 million, which is 98.9% of the budget of $31.2 million.

By comparison, $25.4 million (88.4%) of last year’s total interest revenue budget of $28.8 million had been received by the end of April 2017.

Cash balances have been higher than expected due to an increase in infrastructure charges revenue and development fees.



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 2018 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 2018 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 April 2018. 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 April 2018. Author: Authorised by:

Robert Liddell Joe McCabe Financial Planning & Business Analyst Chief Operating Officer 22 May 2018 RESOLUTION G18.0612.030 moved Cr Tate seconded Cr Caldwell That Council note the Special Purpose 2017-18 Statement of Income and Expenditure and Statement of Financial Position as presented for April 2018.

CARRIED UNANIMOUSLY



Attachment 1

BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

REVENUERATES & UTILITY CHARGES - - (79,212) (66,508) (488,180) (407,065) (557,031) (528,105) (1,124,423) (1,001,678) 1

RATES DISCOUNTS & REMISSIONS - - 0 0 0 0 49,884 47,390 49,884 47,390 1

FEES AND CHARGES (17,686) (15,675) (12,269) (10,192) (4,106) (3,568) (71,531) (61,724) (105,592) (91,158)INTEREST REVENUE - - (897) (796) (10,740) (9,106) (19,604) (20,993) (31,240) (30,895) 2

GAIN/LOSS ON SALE OF ASSETS 0 137 0 797 5,000 211 12,411 9,826 17,411 10,972CONTRIBUTION & DONATIONS REVENUE - - (870) (870) (85,000) (77,462) (153,938) (138,727) (239,808) (217,059) 3

GRANTS & SUBSIDIES REVENUE - - 0 (20) 0 0 (43,836) (28,430) (43,836) (28,450)OTHER REVENUE (64) (51) (835) (809) (75) (52) (23,679) (21,431) (24,652) (22,342) 4

TOTAL REVENUE (17,750) (15,588) (94,082) (78,397) (583,101) (497,042) (807,323) (742,194) (1,502,255) (1,333,222)

EXPENSESEMPLOYEE COSTS 657 585 8,394 5,894 47,775 37,563 311,408 256,989 368,234 301,031MATERIALS AND SERVICES 13,470 9,581 72,610 53,891 452,306 366,577 471,469 209,698 1,009,855 639,746DEPRECIATION & AMORTISATION 1,650 1,279 9,753 7,784 92,000 78,310 137,768 116,442 241,171 203,815FINANCE COSTS 0 11 0 0 0 0 42,465 32,907 42,465 32,919 5

OTHER EXPENSES 2,862 2,409 1,019 1,045 2,796 4,832 59,330 93,830 66,007 102,117 6

CAPITALISED EXPENSES (2,631) (1,088) (3,133) (1,701) (68,950) (50,143) (335,752) (155,213) (410,465) (208,145)TOTAL EXPENSES 16,009 12,778 88,644 66,912 525,927 437,140 686,688 554,654 1,317,267 1,071,483

NET RESULT (1,741) (2,811) (5,439) (11,485) (57,174) (59,902) (120,635) (187,540) (184,989) (261,739)

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

(in thousands of dollars)

GOLD COAST

FOR THE PERIOD ENDED 30 APRIL 2018



BUDGET ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 712,705 948,870 1

CURRENT RECEIVABLES 194,491 268,807 2

INVENTORIES 2,041 2,308PREPAYMENTS 695 903CLEARING ACCOUNTS 0 (23) 3

909,931 1,220,866

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

PROPERTY, PLANT AND EQUIPMENT 13,661,368 13,130,403ASSETS UNDER CONSTRUCTION 0 325,102 5

13,662,518 13,456,655

TOTAL ASSETS 14,572,450 14,677,521

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (99,470) (75,011)UNEARNED REVENUE (2,348) (66,421) 6

CURRENT EMPLOYEE BENEFITS (25,769) (24,323)CURRENT BORROWINGS (77,987) (76,741)CLEARING ACCOUNTS 0 (1,737) 3

(205,574) (244,233)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (53,387) (60,344)NON CURRENT BORROWINGS (571,061) (552,802)

(624,448) (613,146)

TOTAL LIABILITIES (830,021) (857,379)NET COMMUNITY ASSETS 13,742,428 13,820,142

COMMUNITY EQUITYRETAINED CAPITAL 8,747,340 8,760,421RESERVES 4,995,088 5,059,720 7

TOTAL COMMUNITY EQUITY 13,742,428 13,820,142

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.

(in thousands of dollars)

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 30 APRIL 2018

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 ($385.0m), (ii) Investment Fund Reserve ($86.8m), (iii) Gold Coast Water & Waste reserves ($207.2m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct, Strategic Priorities Reserve) ($60.0m) and (iv) Other cash items ($209.7m).

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

Rates and Utility Charges

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) 14.5 AMENDMENT OF THE EXPENSES REIMBURSEMENT AND PROVISION OF

FACILITIES FOR MAYOR AND COUNCILLORS POLICY LG211/361/01(P1)

1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To amend the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy in accordance with the Mayoral Minute resolved by Council and Local Government Act 2009 amendments. 4 PREVIOUS RESOLUTIONS RESOLUTION G18.0227.001

1 That the Council confirms that the study of this MBA Course is not

considered reimbursable expenditure under the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy.

2 That the Council not approve this MBA as outlined in the CEO’s email dated 8 November 2017.

3 That the “Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy” is reviewed by the Mayor’s working review group to ensure that such personal development expenditure is noted as clearly outside the reimbursable expenditure criteria, with recommended edits to bring back to Full Council.

5 DISCUSSION Council’s resolutions (as above) of 27 February 2018 required that the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy be amended. Along with the change required to Section 1.2 of the Policy (Professional Development), the Mayor’s Working Group has proposed a number of other changes as marked up in the attached policy for consideration by Council.

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not Applicable.



FACILITIES FOR MAYOR AND COUNCILLORS POLICY (Continued) LG211/361/01(P1)

8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Budget provision has been made for the 2018-2019 financial year. The total cost of the increased incidental expense allowances is $20,000. Costs for the other changes will depend on the frequency with which they are invoked but based on recent history (e.g. very limited overseas travel of Councillors other than the Mayor) the total costs are likely to be negligible. Costs for Capital Works and Service Proposals Not Applicable. In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee The proposed budget variance has a recurrent effect on a future budget. People and Culture Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS In accordance with sections 250 and 251 of the Local Government Regulation 2012, a local government must adopt an Expenses Reimbursement Policy. As soon as practicable after a local government amends the Policy, a copy must be available for inspection and purchase at the local government’s office and a copy must be published on the local government’s website. In accordance with section 252 of the Local Government Regulation 2012, a local government cannot resolve that a meeting at which a proposed Expenses Reimbursement Policy is discussed be moved to closed session. 11 COUNCIL POLICIES Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy. 12 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations

Mayor’s Working Review Group

Office of the Mayor Yes




13 STAKEHOLDER IMPACTS Not Applicable. 14 TIMING The proposed changes, if adopted, would take effect immediately although the amendments to incidental expense amounts (1.6 of Attachment A) would be effective from 1 July 2018. 15 CONCLUSION Amendments to the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy, based on Council’s decision of 27 February 2018 and recommendations of the Mayor’s working review group have been incorporated into a revised draft Policy (as attached) for Council’s consideration. 16 RECOMMENDATION It is recommended that Council: Considers the recommendations of the Mayor’s Working Group as outlined in the attached amended Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy. Author: Authorised by:

John Anderson Dale Dickson PSM Coordinator (Complaints and Projects) Chief Executive Officer 8 June 2018

TRACKS REF: C:\temp\iSPOT\TRACKS-#69874355-v1-756_COUNCIL_12_JUNE_2018_MINUTES_INCLUDING_CONFIDENTIALS.docx




RESOLUTION G18.0612.031 moved Cr Tate seconded Cr Caldwell That Council adopts the revised Expenses Reimbursement And Provision Of Facilities For Mayor And Councillors Policy as attached, with a changes as follows:- a Clause 1.2 to read as follows:-

The payment of expenses for professional development as part of, or connected to, tertiary studies that qualify for financial assistance such as HECS or federal government ‘fee help’, (under-graduate or post-graduate courses through a registered university) is not considered expenditure that can be reimbursed.

b In Clause 1.6 - Incidental expenses be indexed annually in accordance with

March quarter Brisbane CPI. A division was called For 10 Cr Caldwell, Cr Vorster, Cr Baildon, Cr O’Neill, Cr La Castra,

Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr Tate Against 5 Cr Tozer Cr Owen-Jones Cr PJ Young Cr Crichlow Cr McDonald Abstained 0 Absent 0

CARRIED
















































































14 OTHER BUSINESS (Continued) 14.6 COOMERA COMMUNITY HUB Conflict of Interest – Cr Owen-Jones:- Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The name of the person or entity is: Alexander Properties Pty Ltd The nature of the relationship is: I was a former Director The value of the gift or benefit received is: nil The nature of the other person’s interest in the matter is: Alexander Properties Pty Ltd

owns a 6ha parcel of land in the vicinity to the proposed Coomera Community Hub

I will now leave and stay away from meeting so that the matter may be discussed and voted on in my absence. Cr Owen-Jones left the room RESOLUTION G18.0612.032 moved Cr Tate seconded Cr Caldwell

1 That Council allocates additional funding of $290,000 in the 2017-18 budget to the Coomera Civic Hub (Project 31648) to facilitate a timely due diligence exercise, in partnership with Scentre Group, to be funded from additional Commonwealth Games savings (Project 55155).

2 That the CEO be authorised to do all things necessary to secure an option in Council’s favour over the proposed development site.

CARRIED UNANIMOUSLY

Cr Owen-Jones returned to the room


14 OTHER BUSINESS (Continued) 14.6 COOMERA COMMUNITY HUB (Continued)

PAGES 130-132 REDACTED


14 OTHER BUSINESS (Continued)

14.7 SEQ OLYMPIC GAMES BID

RESOLUTION G18.0612.033 moved Cr Tate seconded Cr Baildon 1 Council reaffirms its commitment to not provide funding for any Queensland

Olympic bid beyond potentially making local Gold Coast venues available, at no cost to ratepayers, during such an event and the provision of technical venue specifications to satisfy any Olympic Bid team information request.

2 That the City will not contribute any funding to the future staging of the 2032 Olympics in Queensland if such a bid was successful.

A division was called For 12 Cr Caldwell, Cr Vorster, Cr Crichlow, Cr Baildon, Cr O’Neill,

Cr La Castra, Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr McDonald, Cr Tate

Against 2 Cr Tozer, Cr PJ Young Abstained 1 Cr Owen-Jones Absent 0

CARRIED BY SUPER MAJORITY There being no further business, the meeting was declared closed at 4.30 pm.


I hereby certify that these pages Numbered 1 to 134 constitute

The Minutes of the Meeting

of the Council of the City of Gold Coast

held Tuesday, 12 June 2018.

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

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