Annual Plan 2017–18
Our Sporting Lifestyle Building a legacy beyond the 2018 Commonwealth Games with a prosperous economy and a strong and active community.
Adopted 19 June 2017 (final) Annual Plan 2017-18 Page 2
Annual Plan
LANGUAGE ASSISTANCE If you need an interpreter, please contact City of Gold Coast Translating and Interpreting Services on 131 450 or visit www.cityofgoldcoast.com.au for details.
Annual Plan cover: Pizzey Park open-air sports and recreation precinct, Miami.
Introduction
Annual Plan 2017-18 Page 3
Park Run, Main Beach
Introduction 4
Mayor’s message ...... 5 Chief Executive Officer’s foreword ...... 6 Our Council ...... 7 About this Plan ...... 8 Annual Plan 2017-18 highlights ...... 9
Chapter 1: City Budget 2017-18 11
Chapter 2: City Operational Plan 2017-18 27
Supporting documents 73
City Budget supporting documents Statement of Estimated Financial Position 2016-17 ...... 74 Detailed Rates and Charges ...... 78 Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27 ...... 81 Statement of Financial Position ...... 85 Statement of Cash Flows ...... 87 Statement of Changes in Equity ...... 89 Statement of Reserves 2017-18 ...... 91 Revenue Policy ...... 95 Debt Policy ...... 108 City Operational Plan supporting documents Annual Performance Plan 2017-18 Gold Coast Water ...... 113 Annual Performance Plan 2017-18 Gold Cost Waste Management Services ...... 127 Glossary 145
Introduction
Annual Plan 2017-18 Page 4
Coolangatta Gold looking toward Broadbeach
Welcome to the Annual Plan 2017-18 ‘Our Sporting Lifestyle’
The Annual Plan provides an overview of the budget and plans for the City of Gold Coast (the City) for the year ahead as it continues to progress the implementation of the City Vision - ‘Inspired by Lifestyle. Driven by Opportunity’ and our Corporate Plan (Gold Coast 2022).
During the life of this plan, the Gold Coast 2018 Commonwealth Games (GC2018) will take place in April 2018 and will be the largest international sporting event staged in Australia for a decade. While this will be a defining moment for the city, it will also be an important catalyst for growth and development which will have long term benefits for our city.
The theme of this Annual Plan ‘Our Sporting Lifestyle' reflects the city’s love of sport; support for our local teams and the GC2018 event itself. The GC2018 and its legacy will increase international recognition of the Gold Coast as a leading sport and recreation destination.
Introduction
Annual Plan 2017-18 Page 5
Mayor’s message
Sport is in our DNA. For a city of around 560,000, we produce multiple world champions in disciplines such as sailing, surfing, BMX, triathlon, kayaking and wake boarding.
Our residents are active and healthy, enjoying our 2233 parks throughout the year as well as 52.8 kilometres of sandy beaches and the majestic hinterland trails and look outs.
To support this active approach, the City has invested wisely in new sporting infrastructure; more than 1000 kilometres of cycleways; enviable community venues; and world-class parklands and play areas for everyone to enjoy.
This infrastructure also supports around 13 million visitors annually. Just last year, we welcomed one million international visitors to our city for the first time.
Council is forging ahead with its Sports Plan 2013-2023 which strives to position the Gold Coast as a premier sports training and competition venue. The plan supports locals, with six key actions to deliver a coordinated approach to sport and recreation for people of all abilities on the Gold Coast.
Further, to boost our active lifestyle, we are investing in facilities to ensure that everyone regardless of age and ability can enjoy our city. Our beach matting trial has proven a success and around five beaches will now benefit from beach matting, providing everyone the opportunity to enjoy our iconic beaches.
Finally, as we march towards the Gold Coast 2018 Commonwealth Games, our city is rapidly changing in preparation for this sporting, arts and cultural celebration.
Our Games will host the largest para sports program in the event’s history, and welcome more than 6600 athletes and officials from 70 nations and territories.
This year is critical in making final preparations for our city’s ‘coming of age’ on the world stage.
TOM TATE BE (UNSW) MAYOR
Introduction
Annual Plan 2017-18 Page 6
Chief Executive Officer’s foreword
2017-18 will be a historic year for our city as we host the 2018 Gold Coast Commonwealth Games (GC2018), complete construction on our new 5000 person outdoor amphitheatre at the Gold Coast Cultural Precinct and start services on Stage 2 of the light rail system.
The City’s $1.5 billion 2017-18 budget includes $97 million (including reprovisions) to fund the City’s GC2018 responsibilities. It is part of the City’s total Games investment of $254.4 million (including cash contributions to the Queensland Government, funding to deliver on our host city obligations and services plus funding to bring forward key City projects).
Come April 2018, the city will welcome around 1.2 million visitors and attract around 1.5 billion viewers worldwide. Some of the City’s key GC2018 responsibilities include the critically important Travel Demand Management Program and the Community Readiness Program under the Get Set for the Games banner. Key City services will also increase in the lead up to, and during, Games time including health and regulatory services, lifeguards, parking officers, contact centre, city cleaning and waste management.
Transport and traffic The budget includes $20 million of our total $48 million contribution towards the Stage 2 of the Gold Coast light rail system, which will start operating from early 2018 between Southport and Helensvale (the City’s final payment will be due in 2018-19). $5 million has also been allocated to develop a preliminary business case for Stage 3A, which will be a southern extension from Broadbeach to Burleigh.
Cultural Precinct $24.8 million will be spent on the Gold Coast Cultural Precinct this year. Major activities include finishing construction on the city’s new 5000 person outdoor amphitheatre as part of Stage 1A. Planning and design work for the new international standard art gallery and pedestrian bridge to connect the Cultural Precinct to Chevron Island will also proceed as part of Stage1B.
Looking forward For the fast-growing northern suburbs, the City is planning a new $56.5 million community precinct comprising aquatic centre, community centre, netball courts and tennis courts at Heritage Park, Pimpama to be complete by 2021. This year’s budget includes $5 million for detailed planning work. $2.3 million has also been allocated to purchase land within Coomera Town Centre precinct for future community facilities.
Overall, the 2017-18 City Budget delivers a carefully considered mix of strategy actions and services to achieve our future aspirations outlined in our newly refreshed Corporate Plan – Gold Coast 2022. I encourage you to read Gold Coast 2022 and this year’s Annual Plan for more detail.
DALE DICKSON PSM CHIEF EXECUTIVE OFFICER
Introduction
Annual Plan 2017-18 Page 7
Our Council
City of Gold Coast Council (Council) comprises the Mayor and 14 elected Councillors who represent the interests of the community and participate in City decision-making. Council facilitate communication between the community and City, translating the community’s needs and aspirations into the future direction of the city to ensure that the Gold Coast is the best place to live, visit, work and do business. The Council that was elected in March 2016 is shown below:
Top row (left to right): Cr Bob La Castra (Division 8), Cr Gary Baildon AM (Division 7), Cr Hermann Vorster (Division 11), Cr William Owen-Jones (Division 2), Cr Glenn Tozer (Division 9), Cr Peter Young (Division 5).
Bottom row (left to right): Cr Dawn Crichlow OAM (Division 6), Cr Pauline Young (Division 12), Cr Daphne McDonald (Division 13), Cr Paul Taylor (Division 10), Mayor Tom Tate, Deputy Mayor Cr Donna Gates (Division 1), Cr Cameron Caldwell (Division 3), Cr Gail O’Neill (Division 14), Cr Kristyn Boulton (Division 4).
The Council adopts a new City Budget and City Operational Plan for the year ahead in June of each year.
Introduction
Annual Plan 2017-18 Page 8
About this Plan
The Annual Plan is presented in three parts as shown below:
1. City Budget - provides a balanced budget with a sustainable long term financial outlook
2. City Operational Plan – delivers the City Vision through the City programs and services and the implementation of Gold Coast 2022; City strategies and preparations for the Gold Coast 2018 Commonwealth Games.
3. Supporting documents - provide supporting information on the City Budget and City Operational Plan, including the financial statements, policies and performance plans for the City’s two commercialised business units, Gold Coast Water and Gold Coast Waste Management Services.
The Annual Plan
City Budget City Operational Plan Supporting documents Supporting information A balanced budget Delivering the City including: with a sustainable long Vision • financial statements term financial outlook through the City’s and policies programs and services • performance plans for commercialised business units
View the 2017-18 Annual Plan at www.cityofgoldcoast.com.au
Introduction
Annual Plan 2017-18 Page 9 Annual Plan 2017–18 highlights
1.8% overall Completion of Light $3.6m increase in rates to support the Rail Stage 2 and charges based on linking Gold Coast Digital City a residential non-Community University Hospital to Program delivering on Title Property dwelling being a principal Helensvale (7.3 km). emerging opportunities such as place of residence (excludes State smart travel, smart health and charges and charges outside of Council optical fibre infrastructure. control). $95m to deliver city waste services $350.8m $1.5b including servicing over to deliver city water City Budget. 185,000 domestic waste bins and sewerage weekly; over 176,000 domestic recycle services including maintaining over bins fortnightly; over 23,000 green bins 3000 km of potable water mains; fortnightly and 12 waste and recycling over 3000 km of sewer mains; facilities across the city. $1.1b four sewerage treatment plants and over to deliver city 500 sewerage pumping stations. services and operations. $24.8m to progress the $20.7m Cultural Precinct investment in $350.2m at Evandale Parklands managing our including an amphitheatre, art gallery spectacular city beaches. capital investment and green bridge. in the renewal and improvement of city infrastructure assets. Over 1800 people participated in the Gold Coast 2018 City Budget Survey. $231.3m Commonwealth to deliver the city Games Support the transport network Deliver final preparations for GC2018, development of including maintaining over 3000 km of including multiple competition venues, the knowledge roadways; over 1000 km of cycleways non-competition precincts and and education sectors by and over 2000 km of paths and celebration zones. walkways. working collaboratively with the Gold Coast Health and Knowledge Precinct and Study Gold Coast.
to develop new Plan and $5m Implementation of a city wide sporting facilities design Koala Conservation on the northern the expansion of the program. Gold Coast. Sundale Bridge and Isle of Capri Bridge to increase transport capacity. Annual Plan 2017-18 Page 10
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City Budget 2017–18 A balanced budget with a sustainable long term financial outlook. Adopted 19 June 2017 (final) Annual Plan 2017-18 Page 12
City Budget cover: City of Gold Coast managed reserve, Old Tambo mountain bike track in Eagle Heights Conservation Area
Chapter 1: City Budget
Annual Plan 2017-18 Page 13
Table of Contents
1.1 City Budget 2017-18 overview ...... 14 1.1.1 Total budget for 2017-18 ...... 14 1.1.2 Key initiatives for 2017-18 ...... 14 1.1.3 Debt management ...... 15 1.1.4 Value for money ...... 15
1.2 Rates and charges ...... 16 1.2.1 Expenditure programs 2017-18 ...... 16 1.2.2 Source of funds 2017-18 ...... 17
1.3 Long term financial forecast...... 19 1.3.1 Financial goals and strategies ...... 19 1.3.2 Long term financial outlook...... 20
1.4 Financial performance...... 20 1.4.1 Competitive rating levels and user pay charges...... 20 1.4.2 Debt levels and capacity to service debt ...... 21 1.4.3 The condition of City infrastructure assets ...... 22 1.4.4 The scope and standard of services ...... 23
1.5 2016 credit review ...... 23 1.6 Financial sustainability indicators ...... 24 1.7 Management of operating position...... 24 1.8 Management of debt ...... 25 1.9 Management of infrastructure assets ...... 25 1.10 Annual Plan supporting documents for the City Budget ...... 26 Statement of Estimated Financial Position 2016-17 ...... 74 Detailed Rates and Charges ...... 78 Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27 ...... 81 Statement of Financial Position ...... 85 Statement of Cash Flows ...... 87 Statement of Changes in Equity ...... 89 Statement of Reserves 2017-18 ...... 91 Revenue Policy 2017-18 ...... 95 Debt Policy 2017-18...... 108
Chapter 1: City Budget
Annual Plan 2017-18 Page 14
1.1 City Budget 2017-18 overview
1.1.1 Total budget for 2017-18 The 2017-18 Budget has been developed in support of the Corporate Plan, Annual Operational Plan and Long Term Financial Sustainability Plan.
It continues to deliver high standard, value for money services to the community and provides funding for projects and programs that will help deliver the Gold Coast 2018 Commonwealth Games (GC2018) and legacy outcomes, improve the city transport network, diversify and strengthen the Gold Coast economy and protect and enhance the Gold Coast lifestyle and environment.
The total budget for 2017-18 is $1.5 billion, made up as follows:
• capital expenditure $350.2 million • services and operating costs $1.072 billion • debt repayments (principal) $75.0 million
1.1.2 Key initiatives for 2017-18 The following key initiatives are included in the budget:
• Gold Coast 2018 Commonwealth Games - an allocation of $97 million (of a total commitment of $254.4 million) has been provided in 2017-18 with a cash contribution of $20 million (part payment of a total $100 million) to the State Government and $77 million to cover a range of capital improvements, contributions to enhanced venue outcomes and additional city services. • Light Rail Stage 2 – Council has committed to a $48 million cash contribution to Light Rail Stage 2 for the extension of the light rail from the Gold Coast University Hospital to Helensvale. An amount of $10 million has been paid to the State Government with further cash contributions to be made in 2017-18 ($20 million) and 2018-19 ($18 million). • Light Rail Stage 3 – Council will contribute $5 million in 2017-18 to the planning of stage 3A of the Light Rail from Broadbeach to Burleigh Heads. • Cultural Precinct - an allocation of $12.7 million in 2017-18 for the completion of an outdoor amphitheatre space with initial arts scape and other associated works at Evandale Parklands. A further $4m has been included for the detailed design of the art gallery and pedestrian bridge at the site. Construction works on the gallery, bridge and associated infrastructure are planned to begin soon after the completion of the Commonwealth Games, costing a further $7 million in 2017-18. All these works contribute to the $125 million first stage of the Cultural Precinct. • Asset Renewals - funding for the renewal of assets ($104 million) as identified in Council’s Asset Management Plans, to ensure the long term sustainability of City assets and service levels to the community. • City Transport - continued commitment to an integrated, accessible and effective city transport system with allocations for the following key initiatives and services: − New and Upgraded Roads - $33 million − Road and Bridges Rehabilitation and Renewals - $38 million − Roads and Bridges Maintenance - $17 million − New and Improved Infrastructure for Active Transport Modes - $5 million − Public Transport - Free Seniors Travel - $1.2 million − Contribution to Light Rail Stage 2, from Griffith University to Helensvale Train Station - $20 million − Planning for Light Rail Stage 3A from Broadbeach to Burleigh Heads - $5 million • Ocean Beaches – Council is committed to the protection and stabilisation of the City’s beaches and infrastructure, with the following projects included in the 2017-18 budget: − Northern Beaches Shoreline Beach Nourishment project ($9.8 million out of a total of $13.2 million) − Palm Beach Shoreline project ($6.7 million out of a total $21.6 million) − Narrowneck Reef renewal ($1.5 million) − Public seawall stabilisation structures ($1.5 million)
Chapter 1: City Budget
Annual Plan 2017-18 Page 15
• Sporting and Community Facilities – Progress detailed planning for new Northern Gold Coast Integrated Sports and Community Precinct at Heritage Park Pimpama. Planned works include a new aquatic centre, community centre, netball courts and tennis courts - $5 million • Tourism and Economic Diversification – funding has been provided for tourism and economic diversification, including: − Contribution to Gold Coast Tourism - $15.5 million − Contribution to Surfers Paradise Alliance - $3.3 million − Contribution to Broadbeach Alliance - $2.8 million − Contribution to Connecting Southern Gold Coast - $0.8 million − Funding for the development and promotion of the Southport CBD - $1.2 million − Contribution to Study Gold Coast - $1.9 million − Funding for continued planning for a Cruise Ship Terminal - $2.5 million • Digital City – funding of $3.6 million has been allocated for the Digital City Program which has been established to identify, investigate and deliver on emerging opportunities, including smart lighting, smart travel and smart health initiatives. Funding has been allocated to deliver optical fibre infrastructure to provide a high speed wide area network for Council services, including the security system upgrades required for GC2018. • Information Management – an amount of $19 million to continue the consolidation and integration of numerous property related systems to achieve greater operational efficiency, customer service improvements and safeguard data for rating, billing and licencing. • Waste Management Kerbside Clean Up – funding of $1.1 million towards a kerbside clean-up for eligible dwellings within the current waste collection areas on a rotational basis every two years.
1.1.3 Debt management Debt has been carefully managed and Council compares favourably against industry benchmarks and other South East Queensland Councils.
• Debt has been kept to a minimum with new borrowings of $41 million for 2017-18, representing only 12% of the total capital works program of $350 million. • Total debt is expected to reduce by $34 million in 2017-18 (from $685 million in June 2017 to $651 million in June 2018), taking into account principal repayments of $75 million. • Council is well within industry benchmarks used to measure debt and its impact on financial sustainability. The net financial liabilities ratio (total liabilities less current assets all divided by total operating revenue) forecast for 2017-18 is 0% which is well below the maximum benchmark of 60% used by the Department of Infrastructure, Local Government and Planning to assess Council’s long term financial sustainability.
1.1.4 Value for money The Value for Money program has delivered significant savings annually. A number of value for money initiatives have or will be implemented, including:
• Implementation of a new property and customer based system with significant improvements in customer service, functionality and workflow management. • Vehicle Fleet Optimisation – use GPS technology to optimise fleet numbers. • Fuel Tax Review – reduce fuel tax using GPS technology. • Energy Management – ongoing initiatives to reduce energy costs. • Sustainable Pavement Management (SPMP) – implementation of the review to minimise whole of life road pavement costs. • Water Efficiency – conduct water use investigations, water demand validation studies, water loss monitoring technology and new leakage monitoring zones to be installed. • Reduction in insurance premiums. • 2016-17 end of year surplus of $16.2 million has been set to underpin the 2017-18 budget.
Chapter 1: City Budget
Annual Plan 2017-18 Page 16
1.2 Rates and charges The overall rates and charges notice results in a 1.8% increase (excluding State Government charges outside of Council’s control) for a residential non-Community Title Property dwelling being a principal place of residence paying the average general rate.
Appendix B provides further details of the Rates and Charges for 2016-17.The table below represents the total rate bill split for a property that is non-strata titled principal place of residence paying the average general rate:
2017-18 Summary of Total Rates and Charges
Average General Rate (residential non-Community Title Property (CTP) dwelling being principal place of residence only)
2016-17 2017-18 Total Rates & Total Rates & Total Increase Total Increase Charges Charges % % $ $ General Rate $1,399.75 2.6% $1,445.70 3.3% Early Payment Discount @ 10.0% ($139.98) 2.6% ($144.57) 3.3% City Transport Improvement Separate Charge $123.00 5.1% $126.00 2.4% Recreational Space Separate Charge $29.00 0.0% $29.00 0.0% Open Space Maintenance and Enhancement Separate Charge $38.00 0.0% $41.00 7.9% Waste Management Utility Charge $269.40 3.5% $274.80 2.0% Sewerage $725.12 0.0% $725.12 0.0%
Water Service $212.08 0.0% $212.08 0.0% Water Consumption - Council component remains at $1.09/kl (Based on 180kl $196.20 0.0% $196.20 0.0% per annum) Net Total Rate and Charges (Excl. State Charges and Charges Outside of $2,852.58 1.7% $2,905.33 1.8% Council Control) State Charges and Charges Outside of Council Control Water Consumption - (State Gov't.) Bulk Water component $2.74/kl to $2.81/kl $493.20 2.2% $505.80 2.6% (Based on 180kl per annum) Transitional Volunteer Fire Brigade Separate Charge $2.00 0.0% $2.00 0.0%
Net Total Rate and Charges $3,347.78 1.8% $3,413.13 2.0%
Note 1: The above rate bill separately displays State bulk water costs & Transitional Volunteer Fire Brigade Separate Charge. Note 2: The water consumption charge includes the State Government bulk water charge. The bulk water charge is $2.81/kl which represents 72.1% of the total consumption charge. This is a 2.55% increase on the 2016-17 bulk water charge. Excluding State Including State Excluding State Including State Total Rate Increase After Discount Costs Outside of Costs Outside of Costs Outside of Costs Outside of Council Control Council Control Council Control Council Control Annual Increase $47.35 $58.15 $52.75 $65.35 Weekly Increase $0.91 $1.12 $1.01 $1.26
1.2.1 Expenditure programs 2017-18 The following table provides a breakdown of the major expenditure programs to be undertaken by Council as part of the 2017-18 budget (excluding internal transfers to reserves). Council's expenditure programs are guided by the priorities identified in the Gold Coast 2022. The city’s population growth is accompanied by demands for roads, transport and drainage, park and recreational facilities and social infrastructure such as libraries, community centres and aquatic facilities etc.
Compared to 2016-17, Council’s total budget indicates an increase of $170.1 million including an increase of $41.2 million in capital works.
Chapter 1: City Budget
Annual Plan 2017-18 Page 17
Expenditure by program
2016-17 ($ million) 2017-18 ($ million)
City Planning 48.7 50.4
City Transport 193.7 231.3
Community Health & Safety 68.3 76.4
Conservation & Environment 38.7 50.1
Economic Development 86.0 104.6
Internal Services 85.2 93.2
Organisational Capability 184.8 197.2
Parks, Recreation & Culture 198.7 247.7
Waste Management 92.6 95.0
Water & Sewerage 329.9 350.8
Total 1,326.6 1,496.7
1.2.2 Source of funds 2017-18 Council’s total budget of $1.497 billion is funded from various revenue sources. The following table provides a breakdown of the major sources of funding used to underpin Council's 2017-18 budget:
Sources of funds
2016-17 ($ million) 2017-18 ($ million) Brought Forward Surplus 16.9 46.4 General Rates (net) 419.3 446.7 Water and Sewerage Charges 467.2 486.5 Other Rates and Utility Charges 134.0 137.2 Loans 29.3 41.0 Developers Contributions 54.2 80.0 Fees and Charges 101.7 98.2 Grants and Subsidies 44.2 40.5 Other 58.2 50.2 Net increase / (Decrease) in Reserves 1.6 70.0 Total 1,326.6 1,496.7
Chapter 1: City Budget
Annual Plan 2017-18 Page 18
Council’s borrowing program for 2017-18 is for the provision of long term infrastructure assets as follows:
Loan program 2017-18
Loan Type Loan Amount Funding of Repayments
General Borrowings 33.0 General Revenue • Flooding and Drainage 10.0 • Transport Improvement 14.8 • Palm Beach Shoreline 4.7 • Northern Gold Coast Sports & 3.5
Community Precinct
Centre Improvement Program 0.4 Centre Improvement Program Special Rate
Tourist Parks 3.3 Tourist Parks Revenue
Waste Management 4.3 Waste Management Charge
Total Loans 41.0
Chapter 1: City Budget
Annual Plan 2017-18 Page 19
1.3 Long term financial forecast
1.3.1 Financial goals and strategies Detailed Ten Year Service Financial Forecasts (10 year financial plans) are maintained for the following 10 key functional areas and incorporated into the consolidated long term financial forecast.
• City Transport • Waste Services • Beaches and Waterways • Flooding and Drainage • Parks, Natural Areas and Recreation • Major Sporting Venues and Aquatic Centres • Library Services • Community Centres • Tourist Parks • Water and Sewerage Services
In preparing the long term financial forecast Council has sought to:
• minimise rate increases • reduce debt • maintain current high levels of service to the community • fund Council’s commitment to GC2018 • fully fund renewal requirements in order to maintain infrastructure assets • fund stage 1 of the Cultural Precinct • fund Council’s commitment to stage 2 of the Light Rail • fund the proposed community and sporting facilities for the Northern Gold Coast region • increase funding for key initiatives included in Council’s key City Strategies • continue to achieve value for money savings to assist in keeping rate increases to a minimum.
Financial decisions are guided by corporate policies, strategies and principles of effective financial management. Council regularly models financial performance, financial position and cash flow forecasts to monitor the long term sustainability of decisions. The long term financial outlook is updated quarterly and a comprehensive analysis is undertaken between July and December each year, and this sets the context for the development of the annual budget. Projected financial statements are included in the Supporting Documents section of the Annual Plan.
Chapter 1: City Budget
Annual Plan 2017-18 Page 20
1.3.2 Long term financial outlook Council’s long term financial model includes a set of key assumptions for the nine years beyond 2017-18, which represents the first year of the forecast period. These assumptions do not reflect final Council policy but provide a guide to future financial performance. Key inclusions in the forecast include:
• Complete the delivery of GC2018 which, in total, will be a $100 million cash contribution to be paid to the State Government, plus an estimated $122.6 million (excluding partner funded projects) for essential GC2018 related works and services in accordance with Council’s agreed commitment. A further $31.8 million has been allocated for projects to be brought forward to enhance the City’s reputation and ensure legacy outcomes are achieved. • Delivery of stage 1 of the Cultural Precinct at Evandale Parklands, with a total capital cost of approximately $125 million, including the construction of the amphitheatre, art gallery, pedestrian bridge and parklands. • Contribution of $48 million towards the extension of Light Rail from Griffith University to the Helensvale train station. • Funding of $5 million for Light Rail Stage 3 investigations. • Infrastructure asset renewal funding included as reflected in Asset Management Plans. • Continued funding for key Corporate Strategies. • New social and community infrastructure in the northern region of the city. • Construction of the Northern Gold Coast Integrated Sports and Community Precinct incorporating an aquatic centre, community centre, netball courts and tennis courts at Heritage Park Pimpama to be completed in 2021 at a cost of $56.5 million. • Targeted annual value for money savings of $15 million to be achieved. • Forecast new loan requirements remain low, resulting in the projected debt balance falling from an estimated $685 million as at 30 June 2017 (reduced from $808 million as at July 2012) to $538 million by the end 2020-21. • The delivery of projects included in the Local Government Infrastructure Plan which will deliver the trunk infrastructure required in the city to meet demands created by growth and new development.
Only $4.5million out of a total contribution of $48 million towards the Light Rail Stage 2 remains to be identified. Funding plans are in place for Stage 1 of the Cultural Precinct ($125 million) and the Northern Gold Coast Integrated Sports and Community Precinct ($56.5 million).
1.4 Financial performance Council’s financial performance can be evaluated against four key pillars:
1. competitive rating levels and user pays charges 2. debt levels and capacity to service debt 3. the condition of Council’s infrastructure assets 4. the scope and standard of services. In terms of financial performance and sustainability, Council is performing well against these four pillars. Council continues to minimize discretionary expenditure and deliver value for money savings.
1.4.1 Competitive rating levels and user pay charges Council’s rates and charges remain competitive with other South East Queensland Councils, particularly taking into account comparative levels of service and the significant impact of external costs such as bulk water and electricity, which make up a significant portion of total operating costs.
Rates and charges increases are kept to a minimum, which is demonstrated by the following inclusion in Gold Coast 2022:
“Deliver prudent financial management which supports high quality city services and provides value for money and continues to deliver average rate rises for residential non-Community Title Property dwellings, being principal place of residence, under or as near to CPI as possible while employing fiscal restraint in other fees, charges and rate categories.”
Council applies the principles of equity, effectiveness and efficiency, simplicity and sustainability in setting rates and charges as set out in the Revenue Policy.
Council’s Revenue Policy is included in the City Budget Supporting Documents section of the Annual Plan.
Chapter 1: City Budget
Annual Plan 2017-18 Page 21
1.4.2 Debt levels and capacity to service debt Council is focused on responsibly managing debt in the short and long term.
Total debt is forecast to reduce from $685 million in June 2017 ($808 million in July 2012) to $538 million in June 2021.
This is partly as a result of Gold Coast Water setting aside funds for major capital works, particularly the long term recycled water release project, which will result in no borrowings for the project. Council is also well within its capacity to service the debt.
The debt service ratio (debt and interest payments divided by operating revenue) for 2017-18 is estimated at 9% and will reduce to 8% by 2020-21 (well below the benchmark of 20%), demonstrating Council’s ability to adequately service debt commitments. It is projected to continue to improve over the 10 year forecast period.
The level of borrowings drawn each financial year is carefully monitored through long term financial modelling to ensure affordability. In addition to internal assessments, Council is required to submit an annual application to the State Government, which includes the long term financial forecast, to gain approval for all planned borrowings. QTC undertakes a detailed annual credit assessment of Council and makes recommendations to the State government regarding sustainable borrowing levels. The 2016 credit review by QTC resulted in and improved rating from “Moderate” to “Sound”, with the outlook being maintained as “Neutral”.
Council seeks to minimise general rates as a funding source to repay debt, preferring to rely on specific revenue sources that are matched to the infrastructure being constructed.
Debt is only used for capital purposes. The term of the debt is matched, as best as possible, to the life of the asset up to the maximum term imposed by QTC. Borrowings usually have terms of between 10 and 15 years. Occasionally, for major capital projects, debt will be borrowed over the maximum allowable term of 20 years. Rates are fixed for 10 years, after which they are reset based on prevailing market rates.
Council’s Debt Policy is included in City Budget Supporting Documents section of the Annual Plan.
Chapter 1: City Budget
Annual Plan 2017-18 Page 22
1.4.3 The condition of City infrastructure assets Each year the Asset Management Plans for the City’s $17 billion infrastructure base are updated. Undertaking condition assessments is a key component of asset management that underpins planning for the renewal (i.e. replacement and refurbishment) of infrastructure. As illustrated by the below graph, the majority of the City’s infrastructure is in a very healthy state, with 97.7% of the assets being in very good, good or fair condition. This is due to many of the assets being relatively young with long useful lives, the infrastructure base being well maintained and Council investing in infrastructure renewal when required.
The relevant standing committee annually reviews Asset Management Plans for relevant categories of infrastructure with particular emphasis on the 2-3% of the City’s assets in poor (2%) and very poor (0.3%) condition and infrastructure renewal requirements. These assets are actively managed to ensure that they do not present a risk to the community.
Council’s Asset Condition Profile The outputs of each of the Asset Management Plans are summarised into the overarching Total Asset Management Plan that informs the budget process and is integrated into the Long Term Financial Forecast. Council adopts the Total Asset Management Plan annually in conjunction with adoption of the budget.
The 2017-18 to 2026-27 Total Asset Management Plan states the infrastructure renewal requirement (i.e. the renewal investment required to maintain current levels of service for existing infrastructure assets) for 2017-18 is $103.9 million. Renewal requirements remain around this level (in today’s dollars), or a little higher, for the ten year forecast period as illustrated below.
Chapter 1: City Budget
Annual Plan 2017-18 Page 23
$140,000,000
Year 5 – 10 forecast $120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Beaches and Waterways Community Facilities Corporate Buildings Flood Mitigation & Drainage Parks & Recreation
Transport Waste Management Sewerage Water Infrastructure
The City’s infrastructure base is sustainable in the long term as the long term financial forecast includes funding for the infrastructure renewal requirements in the Total Asset Management Plan, as demonstrated by the Asset Renewal Funding Ratio – refer section 1.9.
1.4.4 The scope and standard of services Over the last decade significant community infrastructure (including libraries, aquatic centres and community and youth centres) has been provided within the city. The standards of service in terms of both infrastructure and other services continue to be of a high standard and are projected to remain so into the future. The facilities and venues delivered as part of GC2018 will further enhance this standard of service, as will the construction of stage 1 of the Cultural Precinct with the associated improved cultural programs.
Constructing community and sporting facilities in the northern region of the city to meet the demands of a growing population will be a key focus over the next decade.
1.5 2016 credit review Queensland Treasury Corporation (QTC) conducted a credit review of Council in 2016 as part of the annual debt application. The rating was improved from ‘moderate’ to ‘sound’ with a ‘neutral’ outlook. A sound rating is defined as:
“A local government with an adequate capacity to meet its financial commitments in the short, medium and long term. While it is likely that it may have a record of minor to moderate operating deficits, the local government is expected to regularly report operating surpluses. It is likely able to address its operating deficits, manage major unforeseen financial shocks and any adverse changes in its business, with minor or moderate revenue and/or expense adjustments. The expense adjustments are likely to result in some changes to the range of and/or quality of services offered. Its capacity to manage core business risks is sound.”
A neutral outlook is defined as:
“There are no known foreseeable events that would have a direct impact on the local government's capacity to meet its financial commitments. It may be possible for a rating upgrade or downgrade to occur from a neutral outlook, if such an event or circumstance warranted as such.” This credit review confirms that the City’s finances are in good shape and have the flexibility to successfully meet the challenges over the next decade.
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1.6 Financial sustainability indicators The following financial sustainability ratios are prescribed under the Local Government Regulation 2012:
• Operating Surplus (net operating result divided by total operating revenue). • Net Financial Liabilities (total liabilities less current assets all divided by total operating revenue). • Asset Sustainability (capital expenditure on renewal of assets divided by depreciation expense).
The asset sustainability ratio uses accounting depreciation as a substitute measure for required capital expenditure on infrastructure renewals. This limits the effectiveness of this ratio. In its report to Parliament ‘Results of audit: Local government entities 2013-14’ tabled on 5 May 2015, the Queensland Audit Office (QAO) highlighted inadequacies of using accounting depreciation as a substitute measure for required capital expenditure on infrastructure renewal and recommended that additional ratios be used to better understand asset performance, being the:
• Asset Renewal Funding (capital expenditure on the renewal of assets divided by required renewals from Asset Management Plan). • Asset Consumption (written down value of assets divided by the gross value of assets).
Council is also required to maintain three other financial ratios within limits agreed with Queensland Treasury Corporation (QTC) as part of the lending terms and conditions. These ratios are:
• Adjusted Operating Surplus (net operating result plus depreciation expense all divided by total operating revenue). • Leverage (total debt less cash investments all divided by total operating revenue). • Debt Service Coverage (net operating result plus interest expense plus depreciation all divided by interest expense plus prior year current debt).
Given the issues associated with using accounting depreciation as a substitute measure for required capital expenditure on infrastructure renewals, it was agreed with QTC to use an adjusted operating surplus ratio which excludes depreciation from the calculation.
1.7 Management of operating position Ratio Target 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 min max
Operating Surplus 0% 10% -6% 4% 5% 3% 4% 4% 5% 4% 4% 5%
Adjusted Operating Surplus 16% 13% 23% 25% 23% 24% 24% 24% 23% 23% 23% A negative Operating Surplus Ratio is forecast for 2017-18 due to significant operating costs required to prepare the city for the Commonwealth Games. Funding for the Commonwealth Games has been accumulated in a reserve, meaning there is no actual operating loss in the financial year. However, the spending of these funds means expenses will be higher than operating revenue for 2017-18. In addition, Council is contributing $20 million to the construction Light Rail Stage 2. This is an investment in major infrastructure, but as it is not owned by Council, the contribution is treated as operating expenditure and therefore adversely impacts the operating surplus ratio. Beyond 2017-18, the ratio remains within the benchmark range.
The Adjusted Operating Surplus Ratio, required by QTC, removes accounting depreciation from the calculation and the target result. The result in 2017-18 is under the required benchmark for the same reasons discussed above. Council is forecasting to meet the benchmark set by QTC for the remainder of the forecasting period.
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1.8 Management of debt
Ratio Target 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 min max
Net Financial Liabilities 60% 1% 3% 5% 1% -3% -7% -11% -15% -14% -9%
Debt Service Coverage 2.2 1.8 3.2 3.3 3.3 3.6 3.9 4.3 4.5 5.7 6.8
Debt Service Ratio 20% 9% 9% 9% 8% 8% 7% 6% 5% 4% 4% The three ratios above seek to provide an indication as to whether debt is being responsibly managed. Council currently sits comfortably within the required benchmarks, except for the Debt Service Coverage Ratio in 2017-18. This ratio is being impacted by the unusually high operating expenses in that year due to significant expenditure relating to the Commonwealth Games and Council’s contribution to Light Rail Stage 2.
Debt is projected to decrease over the forecasting period, therefore each of these ratios continues to improve. Through prudent debt management, Council maintains the flexibility to utilise debt funding should it need to do so in the future.
1.9 Management of infrastructure assets
Ratio Target 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 min max
Asset Sustainability 90% 39% 44% 46% 42% 38% 41% 40% 38% 37% 36%
Asset Renewal Funding 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Ratio Target 2015-16 min max Asset Consumption (WDV/Gross Value) 40% 80% 69% The Asset Sustainability Ratio uses accounting depreciation as a proxy for required capital expenditure on renewals (as opposed to capital renewal funding requirements determined through robust asset management planning) with the results of this ratio indicating that infrastructure renewal funding equates to 37% to 46% of the depreciation cost annually. The calculation method of this ratio does not provide an effective measure of whether the investment in capital renewal is sufficient. This is particularly obvious with the City having a relatively young asset base with the majority of infrastructure constructed since 1960, therefore it is expected that required capital expenditure on infrastructure renewal is currently substantially lower than accounting depreciation.
In comparison, the Asset Renewal Funding Ratio uses required capital expenditure on infrastructure renewals (as stated in the Council adopted Total Asset Management Plan). The results of this ratio for the 10 year period is 100% which demonstrates that the City’s infrastructure is sustainable in the long term and that Council is committed to funding required infrastructure renewal as determined through robust asset management planning.
The Asset Consumption Ratio gives an indication of the ‘as new condition’ left in the assets. The results of this ratio (as at 30 June 2016 - the last audited results available) reinforces the sustainability of the City’s infrastructure assets with the result of 69% being towards the higher end of the target range. This aligns with information provided previously on condition of the City’s infrastructure with the majority of the assets being in a very healthy state.
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1.10 Annual Plan supporting documents for the City Budget Statement of Estimated Financial Position 2016-17 ...... 74 Detailed Rates and Charges ...... 78 Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27 ...... 81 Statement of Financial Position ...... 85 Statement of Cash Flows ...... 87 Statement of Changes in Equity ...... 89 Statement of Reserves 2017-18 ...... 91 Revenue Policy 2017-18 ...... 95 Debt Policy 2017-18 ...... 108
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City Operational Plan cover: Looking south over the Gold Coast Aquatic Centre and the Gold Coast Airport Marathon.
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Table of Contents
2.1 Introduction ...... 30 2.1.1 Planning for the city ...... 30 2.2 Programs and services 2017-18 ...... 32 2.2.1 Funding city services ...... 32 2.2.2 Program and service summaries ...... 34 Program 1: City Planning ...... 36 Program 2: City Transport...... 38 Program 3: Community Health and Safety ...... 40 Program 4: Conservation and Environment ...... 42 Program 5: Economic Development ...... 44 Program 6: Parks, Recreation and Culture ...... 46 Program 7: Waste Management ...... 50 Program 8: Water and Sewerage ...... 52 Program 9: Organisational Capability ...... 54 Program 10: Internal Services ...... 56 2.3 Implementation of Gold Coast 2022 and City strategies ...... 58 2.3.1 Gold Coast 2022 ...... 60 2.3.2 City strategies ...... 62 2.4 Performance review ...... 68 2.5 Legislative compliance ...... 69 2.5.1 City Operational Plan ...... 69 2.5.2 Risk Management ...... 69 2.5.3 Queensland Plan ...... 69 2.5.4 Code of Competitive Conduct ...... 69 A: Estimated activity statement ...... 69 B: Activities to which the Code of Competitive Conduct applies ...... 70 2.5.5 Community Service Obligations (CSOs) ...... 70 2.6 Annual Plan supporting documents for the City Operational Plan ...... 71 Annual Performance Plan 2017-18 Gold Coast Water ...... 113 Annual Performance Plan 2017-18 Gold Coast Waste Management Services...... 127
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2.1 Introduction The City Operational Plan 2017-18 explains what the City’s Programs and Services deliver and how these support the implementation of the City Vision, Gold Coast 2022, City strategies and preparations for the Gold Coast 2018 Commonwealth Games.
The City Operational Plan also includes Performance Plans for the City’s two Commercialised Business Units – Gold Coast Water and Gold Coast Waste Management Services which deliver essential city services (refer to Annual Plan Supporting Documents for details).
2.1.1 Planning for the city Our City Vision “Inspired by lifestyle. Driven by opportunity” informs all strategic planning for the city.
The City Vision is supported by an integrated approach to planning which considers long, medium and short term strategies and plans as shown below.
Figure 1: Integrated planning for the City
SUPPORTING Total Asset Strategies Gold Coast 2022 City Plan Management Plan
STRATEGIES DELIVERING Culture Strategy 2023
Annual Plan Long Term Economic Development Strategy 2013-2023 Financial Forecast
Gold Coast City Transport Strategy 2031
Ocean Beaches Strategy 2013-2023 City Operational City Contracting City Budget Plan Plan Solid Waste Strategy 2024
The City’s Corporate Plan - Gold Coast 2022 identifies what we need to do between now and 2022 to work towards the City Vision. The Plan is structured around the following three themes:
• The best PLACE to live, visit and stay
• PROSPERITY built on a strong diverse economy
• PEOPLE contribute to a strong community spirit
The image overleaf shows key influences on planning for the city in 2017-18 (refer Figure 2). For more information about our city you can visit: www.goldcoast.qld.gov.au
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Figure 2: Key influences on planning for the city
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2.2 Programs and services 2017-18
2.2.1 Funding city services The City Budget for 2017-18 is $1.5 billion (net of internal costs). The majority of funding comes from general rates and water and sewerage charges. This funding supports both existing services and infrastructure as well as new investment in operational and strategic priorities for the city (refer City Budget 2017-18 for more details). The diagrams below show city funding sources and how this funding will be used in 2017-18.
Figure 3: 2017-18 sources of funds ($millions)
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Figure 4: 2017-18 allocation of funds by program ($millions)
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2.2.2 Program and service summaries The City Operational Plan is presented through the City’s 10 programs which deliver and support a wide range of services to the city. The program and service summaries on the following pages outline:
• what the programs and associated services deliver to the city • an overview of program and service budget information • service description and level of service information across the 47 services • City Operational Plan key activities, highlighting where these contribute to strategic planning for the city.
NB: The figures included in this section may differ slightly from the summary budget figures due to the inclusion of internal transactions and transfers to reserve.
Funding for some activities includes unspent funding from the 2016-17 budget that has been approved to be carried forward into the 2017-18 budget.
Technical terms used in the program and service summaries are defined below to assist the reader.
Technical term Definition
Is an amount spent to construct, purchase or improve long term assets such as roads, parks or Capital ($) buildings. Identifies key activities that are signature actions in the Gold Coast 2022 (GC2022), the Corporate Corp Plan Plan. End of life An activity that is driven by the requirement to refurbish and/or replace existing assets at the end of its renewal driven useful life that reinstate the original level of service.
GC2018 Identifies the high profile key activities supporting the 2018 Commonwealth Games program.
Internal Debt Includes the interest payment and the repayment of principal on debt. Debt is allocated to various Service ($) areas within Council, resulting in internal debt service payments. Significant activities for the year which support the delivery of operational services to the city or Key activities contribute to key plans and strategies. The defined service quality for a particular activity such as road surfacing or service area such as Level of service street lighting, against which service performance may be measured. Service levels relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. New/Upgrade An activity that is driven by the requirement to create new or upgrade existing assets that increases Driven the original level of service.
Operating ($) Is the amount spent to operate and maintain assets and to deliver services to the community.
Op Plan Identifies key activities that are included in the City Operational Plan 2017-18.
RF Denotes activities delivered from recurrent sources of funding.
Represents a range of related activities provided by Council to people or property for example, waste Service collection is a service.
Strategy Identifies the key activities that relate to the implementation of one of the City’s strategies.
Service A plain english, high-level overview of what the service provides. description
Total ($) Sum of Operating, Capital and Internal Debt Service.
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Annual Plan 2017-18 Page 36 Program 1: City Planning 1 Provide a strategic approach to long term planning and policy development ensuring that the City manages natural hazards, growth and development while protecting and conserving our natural resources and heritage.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Land Management and Development Control 32,378,488 0 0 32,378,488 64.2%
Land Use and Urban Planning 9,200,657 0 0 9,200,657 18.3%
Streetscape 6,372,619 1,974,411 484,011 8,831,041 17.5%
Total 47,951,764 1,974,411 484,011 50,410,186 100.0%
Capital Expenditure How the Program is Funded Budget Summary Budget General Revenue 48.6%
$2.0M $0.0M 100% 0% Fees and Charges 47.2%
End of Life Renewal Driven Other Revenue 4.2% New / Upgrade Driven
2017-18 City Planning Program, by Service Expense ($)
Land Management and Development Control 32,378,488
Service Enhance the city's liveability through management of the land development process and implementation of the Description City Plan and associated policies. This includes both planned and reactive assessment and compliance functions.
Level of Decision making periods achieving target timeframes. Increase application of RiskSmart process. Service PlanOp Corp Plan GC2018 Strategy* Undertake assessments and approvals to ensure quality development outcomes for the city. These ˃ assessments and approvals apply to plumbing and drainage, environmental and landscaping, 7,475,695 hydraulics and water quality and operational works. Development assessment for material change of use and subdivision applications. Council also ˃ 5,278,110 provides advice to customers through the Planning Enquiries Counter. Managing developer cash and asset contributions to the City. Ensuring roads, stormwater, water and sewerage reticulation, street lighting, public open space, recreational facilities and other relevant civil ˃ 4,733,070 infrastructure delivered by developers is constructed in accordance with relevant legislation and development approvals.
˃ Providing technical advice on building and planning matters. 4,202,250
Ensuring development complies with relevant legislation, including responding to complaints and undertaking inspections (eg. unlawful land use, breaches of development approval conditions, breaches Key Activities ˃ 3,947,905 of planning scheme codes, unlawful building work, stormwater complaints, environmental issues, swimming pool fencing).
Land Use and Urban Planning 9,200,657
Service Develop strategies and guidelines for land use and the natural and built environment. Manage statutory land use Description instruments including City Plan, Local Government Infrastructure Plan and Priority Development Area. Level of Review the City Plan every 10 years and preparation of a Local Government Infrastructure Plan as per the Service Sustainable Planning Act 2009. Rolling City Plan amendment program. Development of planning scheme policy, drafting of City Plan content, managing the statutory amendment processes for land use planning instruments. The team's purpose is to ensure the City's ˃ statutory land use planning instruments comply with Queensland state planning legislation, meet 3,338,370 Councillor and community expectations for growth and development and are regularly updated to ensure sustainability as the city grows.
Coordination, preparation and implementation of Council’s trunk infrastructure planning policies to ensure that the city is developed in a financially sustainable manner. These policies include the Local ˃ 2,283,910 Government Infrastructure Plan (LGIP) and the Priority Development Areas Development Charges and Offset Plans (DCOPs).
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 37 Program 1: City Planning 1 2017-18 City Planning Program, by Service Expense ($)
Streetscape 8,831,041
Service Undertaking urban renewal of the city’s commercial centres in consultation with the local community, revitalising Description and reactivating them to be liveable, vibrant and connected places.
Level of Successful delivery of urban renewal projects and evidence of physical, economic and social improvements in centres. Successful working relationships with project stakeholders. High quality urban design outcomes. Safer Service streets with reduction in crime. Improved city image. Key Activities PlanOp Corp Plan GC2018 Strategy*
Maintenance of urban precincts (street furniture, gardens, trees, footpaths and lighting) across the city ˃ 4,918,655 to ensure they remain attractive, safe and functional.
Upgrade and renewal of the streetscape along Griffith Street Coolangatta from McLean Street to ˃ 1,248,544 McDonald Road.
City Planning, Program Total 50,410,186
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 38 Program 2: City Transport 2 Provide a reliable and efficient transport network taking into account future transport needs whilst encouraging active travel modes.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Road Network 28,015,410 68,397,620 0 96,413,030 41.7% Transport Improvement 49,680,035 15,858,230 28,130,078 93,668,343 40.5% Traffic Management and Safety 22,746,941 2,839,500 0 25,586,441 11.1% Parking Facilities and Regulation 12,558,575 3,079,214 0 15,637,789 6.8%
Total 113,000,961 90,174,564 28,130,078 231,305,603 100.0%
Capital Expenditure How the Program is Funded
Budget Summary Budget General Revenue 48.2%
Developer Contributions and Reserves 16.8% $43.2M $46.9M 48% City Transport Levy 14.3% 52% City Parking Revenue 11.3% End of Life Renewal Driven New / Upgrade Driven Grants, Subsidies and Contributions 9.4%
2017-18 City Transport Program, by Service Expense ($)
Road Network 96,413,030
Service Construct, maintain and renew roads and associated assets to provide a safe, effective and sustainable road Description network. Timely repair of damaged road surfaces. Cost effective, prioritised renewal of road pavements and surfaces. Level of Service levels based on a pavement condition index (PCI) of 8.5 (range of 0 to 10). Maintenance of associated Service road infrastructure including kerb and channel, bridges and culverts. Service levels based on detailed condition
assessment plans, identified in the Transport Asset Management Plan (AMP). PlanOp Corp Plan GC2018 Strategy* Road rehabilitation and reseal program to partially renew road pavements and wearing surfaces across ˃ 20,106,787 the city to ensure roads remain safe and meet expected standards of service. Routine maintenance of the City's road network of approximately 3,200km to maintain service levels for ˃ 14,737,315 quality and safety. This includes related assets such as kerbs, channels, footpaths and guard rails. Road reconstruction program to fix roads at the end of their useful life which can no longer be renewed through maintenance and rehabilitation. 2017-18 projects include Old Pacific Highway Oxenford, Ferny ˃ 9,215,675 Avenue Surfers Paradise, Golden Four Drive Bilinga, Surf Parade Broadbeach, Currumbin Creek Road Currumbin, Beattie Road Coomera and other smaller projects. Deliver Stage 2 of upgrade and reconstruction works at Burnside Road, Ormeau from Pacific Motorway ˃ 8,500,000 T Service Road to the rail corridor. The project supports the growth of the surrounding industrial area. • The renewal and maintenance of various bridges across the city. 2017-18 projects include replacing the ˃ timber bridge with a concrete bridge on Judeller Road Currumbin Waters, renewing the Thrower Drive 6,856,189 bridge at Palm Beach and replacing the causeway on Rowe Lane Cedar Creek.
Key Activities Upgrade Stanmore Road to four lanes between Peachey Road and Enkleman Road Luscombe to tie ˃ 3,000,000 into previously upgraded sections of Stanmore Road. Upgrade intersection between Napper Road and Arundel Drive, Arundel from roundabout to traffic ˃ 1,920,000 T signals to reduce queuing and improve safety. • • Upgrade intersection between High Street and Scarborough Street, Southport to include traffic signals ˃ 1,796,080 T and provision of two lanes in each direction to reduce congestion and increase capacity and safety. • • Identify a preferred solution and develop a concept design to increase capacity across the Nerang River to Isle of Capri by providing an additional bridge and upgrades to the intersection of Via Roma with the ˃ 1,500,000 T Gold Coast Highway. Works will consider outcomes for all modes of transport including driving, walking, • • cycling and public transport. ˃ Improving disability access across the transport network. 1,361,394 T ˃ Reconstruct a section of pavement on Currumbin Creek Road that is on the GC2018 Road Race route. 1,000,000 • • Plan and design the expansion of Sundale Bridge to increase to five lanes and a capacity upgrade at ˃ 241,000 T the Waterways Drive/Gold Coast Highway intersection. • • Complete design for Stage 1 of 3 to upgrade Old Coach Road, Reedy Creek to improve safety, capacity ˃ and provide infrastructure for active transport. Stage 1 is a 1,400m upgrade south from Kingsmore 200,000 • T Boulevard. Plan and design the upgrade to Old Coach Road, Reedy Creek to provide a four lane connection to Exit ˃ 150,000 T 87 (Bermuda Street). • •
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 39 Program 2: City Transport 2 2017-18 City Transport Program, by Service Expense ($)
Transport Improvement 93,668,343
Service Plan and deliver an efficient and effective integrated transport network that caters for the current and future Description transport needs of the city, including the provision of services to seniors and the disadvantaged. Enhanced delivery of active and public transport projects and services that increases the number of trips made Level of within the City by sustainable modes of transport. Provision of a safe and reliable local road network that meets Service the local community’s needs for the movement of people and goods. Delivery of an effective travel behaviour change program that is tailored to the needs of local residents, business and visitors. PlanOp Corp Plan GC2018 Strategy* The City's contribution to Department of Transport and Main Roads to deliver Stage 2 of the Gold Coast ˃ 20,000,000 T Light Rail system from Gold Coast University Hospital to Helensvale Railway Station. • • Providing essential transport infrastructure associated with new developments in partnership with ˃ 8,651,455 T developers. Develop a preliminary business case for Stage 3A of the Gold Coast Light Rail network southern ˃ 5,000,000 T extension. • • Numerous improvements to pathways and cycleways across the city to support walking and cycling for ˃ 3,222,900 T short trips and to provide better access to Commonwealth Games and community venues. •
˃ Upgrade of bus stops to comply with disability access requirements. 2,219,125 T Public transport initiatives including free seniors travel on daytime off peak and weekend public ˃ 1,265,000 transport services. Upgrade path and installation of bicycle lanes along Golden Four Drive Bilinga between Dune Street ˃ 950,000 T and Short Street. Upgrade 840m of pathway on the eastern side of Main Beach Parade opposite McIntosh Island Park, ˃ 702,000 T improving service standards for pedestrians and cyclists. •
Traffic Management and Safety 25,586,441 Key Activities Service Manage and improve the operation and safety of the transport network through traffic management systems and Description devices. Provide street lighting to the road network. Provision of traffic engineering expertise in accordance with the relevant standards and legislation. Provision of Level of pavement marking in compliance with required standards. Ensuring adequate provision of street lighting through Service monitoring and maintenance. Daily monitoring of traffic signal maintenance contract. Signage is manufactured in accordance with all relevant standards.
˃ Street lighting operation and maintenance. This cost is predominantly electricity. 10,276,000 Funding to maintain, renew and upgrade traffic signals and signage at various intersections across the ˃ 4,761,388 city. This includes the installation of additional CCTV cameras to assist in better traffic management.
Parking Facilities and Regulation 15,637,789
Service Provide off street car parks and optimise the use of parking infrastructure through demand management Description mechanisms achieved by the enforcement of parking laws.
Level of Reported faults responded to by maintenance team same day of receipt. Complaints in relation to illegal parking investigated within two days of receipt. Enforcement services provided seven days a week including routine Service outside business hours patrols and on call facility. Maintenance of the City's paid parking ticket machines.
The management of regulated parking across the city, ensuring parking facilities are utilised efficiently, effectively and safely. Regulated parking contributes to the delivery of key social and transport benefits ˃ 11,536,348 for the city. Activities include responding to requests and complaints from residents, keeping residents informed and monitoring the appropriate use of parking facilities.
˃ Renewal works at Bruce Bishop car park in Surfers Paradise. 2,110,759
City Transport, Program Total 231,305,603
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 40 Program 3: Community Health and Safety 3 Ensure legislative compliance and promote sustainable business and living practices. Protect and strengthen the health, safety and amenity of the community.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Flooding and Drainage 10,207,956 13,050,032 4,350,737 27,608,725 36.2% Public and Environmental Health 20,238,090 183,991 0 20,422,081 26.7% Lifeguard Service 9,106,166 127,316 0 9,233,482 12.1% Public Safety 5,142,985 2,198,400 0 7,341,385 9.6% Animal Management 5,267,568 137,632 0 5,405,200 7.1% Emergency/Disaster Management 2,414,177 404,600 0 2,818,777 3.7% Social Development 1,967,146 0 0 1,967,146 2.6% Cemeteries 1,317,978 243,854 0 1,561,832 2.0%
Total 55,662,066 16,345,825 4,350,737 76,358,628 100.0% Budget Summary Budget Capital Expenditure How the Program is Funded
General Revenue 85.6% $6.4M 39% Fees and Charges 8.7%
$10.0M Developer Contributions and Reserves 4.0% 61% End of Life Renewal Driven 1.7% New / Upgrade Driven Grants, Subsidies and Contributions
2017-18 Community Health and Safety Program, by Service Expense ($)
Flooding and Drainage 27,608,725
Service Increase our city's resilience against flooding through planning and improved flood emergency management and flood mitigation work. Protect lives and property by collecting and channelling flood and stormwater through a Description network of stormwater infrastructure.
Level of Regularly maintain and inspect drainage systems after local flood events. Continued reductions in the number of stormwater incidents / failures across the city. Provide drainage upgrades up to a minimum of Q10-Q20 standard Service
and augment existing systems where possible to meet the Queensland Urban Drainage Manual standards. PlanOp Corp Plan GC2018 Strategy* Maintenance and operation of the City's stormwater drainage assets to ensure the network remains in ˃ 5,027,986 good condition, reducing the occurrence of street flooding and improving public safety. ˃ Continuation of drainage upgrade works in the Dudley Street Catchment Mermaid Beach. 3,304,718 Renewal of the open drain between Kitchener Street and Boyd Street Tugun to improve drainage and ˃ 2,287,400 ensure safety. ˃ Replacement of the drainage system between Dutton Street and Garrick Street, Coolangatta. 2,179,434 • Renewal and relining of stormwater infrastructure across the city for assets that are approaching the ˃ 1,570,750 end of their useful life. ˃ Review requirements for the upgrade of Biggera Creek dam to ensure adequate flood mitigation. RF • • Key Activities Public and Environmental Health 20,422,081
Service Ensure a high level of safety, amenity and health for the community and environment through delivery of services including education and industry support, compliance programs for State Laws, enforcement of local laws through Description proactive patrols and by responding to complaints. Enforcement services are provided seven days a week, after hours and on call. Complaints are actioned within Level of three working days. Monitoring of: mosquito borne and vaccine preventable disease; compliance of licensed operators such as food premises, personal services, registered swimming pools and rental accommodation; non- Service compliance of measures such as noise, water pollution, water quality at recreational waterways; compliance with Land Protection Act 2002 for control of declared pests. Licensing and approvals for a wide range of regulated activities including advertising, dogs and cats, ˃ 4,815,473 use of roads, beaches and parks, filming approvals, food safety and many more. Controlling pest plants and animals that can pose a human health risk, cause discomfort or threaten our ˃ 4,268,550 native plants, animals or property. Implement the Eat Safe Program, which will provide a star rating for food safety management for all ˃ RF licensed food premises in the city. • •
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 41 Program 3: Community Health and Safety 3 2017-18 Community Health and Safety Program, by Service Expense ($)
Lifeguard Service 9,233,482
Service Ensure residents and visitors enjoy high levels of safety and amenity on Gold Coast beaches through the Description provision of a professional lifeguard service.
Level of Chief Lifeguard to issue daily media reports regarding beach conditions and safety. 39 beaches patrolled during peak holiday period hours generally 6am to 6.30pm. 34 beaches patrolled November – April hours generally 6am Service to 6pm. 26 beaches patrolled year round, generally 8am – 5pm. PlanOp Corp Plan GC2018 Strategy*
Public Safety 7,341,385
Service Programs to enhance safety such as the provision of a (CCTV) camera network and a Community Safety Description Program. Monitor CCTV cameras 24 hours per day, seven days per week. Install new cameras in crime hotspots. Improve Level of perceptions of safety for residents and visitors. Number of community safety activities conducted in partnership Service with police and neighbourhood watch. Number of times that Crime Prevention through Environmental Design advice is provided to inform public space improvements and new developments.
Programs run by Council to reduce crime and improve safety across the city. Programs include graffiti ˃ prevention, Mayoral Safer Suburbs Forum, community education and awareness, partnerships with 2,799,295 police and Neighbourhood Watch and safety audits of public spaces. Operations, maintenance and 24 hour monitoring of the CCTV safety camera network (279 fixed ˃ 1,962,250 cameras and 75 mobile cameras, including 20 new cameras in 2017-18). ˃ Redeploy GC2018 CCTV cameras and explore new safety technologies. 50,000 • •
Animal Management 5,405,200
Service Regulate the keeping of animals to protect the community and environment from injury and damage. Control pest Description animal species. Full compliance of Animal Management Activities in accordance with all State and Local Government Laws and Level of Acts. Impound and care for 4,800 animals annually providing rehoming and auctioning services. Conduct routine patrols seven days per week. Conduct education programs for 150 groups and 3,500 students annually. Engage Service 80,000 residents through 30 annual community events and shows. Respond to complaints, approximately 12,000 Key Activities annual phone enquiries and activities.
Emergency/Disaster Management 2,818,777
Service Protect the community in times of disaster through planning, response and recovery programs. Reduce the Description impact of disasters through community education, awareness and preparedness.
Level of Preparation of the Gold Coast Disaster Management Plan. Support of the Local Disaster Management group. Activation and Operation of Council's Disaster Coordination Centre. Delivery of educational and awareness Service programmes that contributes towards community preparedness and resilience.
Social Development 1,967,146
Service Improve the city's liveability by delivering social programs and policies to enhance access, inclusion and Description community connectedness. Deliver a range of activities to support the city's youth. Provide technical access advice on the Disability Level of Discrimination Act and the Building Code of Australia to the organisation. Ensure key Council documents are provided in languages other than English (e.g. surf safety, disaster preparedness). Activities to promote the Gold Service Coast as a child and family friendly city. Deliver community development activities in partnership with community groups and local residents.
Deliver disability access and inclusion initiatives including beach access, mobility maps and recharge ˃ 419,840 O points. • •
Cemeteries 1,561,832
Service Manage cemeteries and related services to meet the varied religious and cultural needs of the community. Description Ensure services do not impact on public health and are conducted in a dignified and sensitive manner. Cemetery operations are carried out in a manner that does not impact on public health. Satisfy the varying needs Level of of religious or cultural beliefs. Provide the community with places of remembrance for grieving and healing. Service Heritage preservation and cemeteries are well maintained and aesthetically pleasing. Provision and maintenance of sites for housing the deceased e.g. grave sites, niches in columbarium walls.
Community Health and Safety, Program Total 76,358,628
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 42 Program 4: Conservation and Environment 4 Supports environmental sustainability, natural hazard and resource management and fosters sustainable management of our environment.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Beaches and Waterways 37,963,849 4,909,000 0 42,872,849 85.6%
Catchment Management 4,045,530 850,000 0 4,895,530 9.8%
Natural Environment Conservation 2,297,820 0 0 2,297,820 4.6%
Total 44,307,199 5,759,000 0 50,066,199 100.0%
Capital Expenditure How the Program is Funded Budget Summary Budget General Revenue 75.8% $3.7M 64% Developer Contributions and Reserves 23.1% $2.1M 36% End of Life Renewal Driven Grants, Subsidies and Contributions 1.1% New / Upgrade Driven
2017-18 Conservation and Environment Program, by Service Expense ($)
Beaches and Waterways 42,872,849
Service Support the biodiversity, stability and health of our diverse water environments. Ensure the city has healthy Description recreational sandy beaches.
Level of Increase the total length of certified seawalls protecting public beachfront areas. Monitor the Beach Volume Index (BVI) and implement planning and future capital works to maintain a BVI >1. Maintain canal profiles in Service accordance with the Coastal Protection and Management Act. PlanOp Corp Plan GC2018 Strategy* Deliver the Northern Beaches Shoreline Project to increase protection against erosion and major storm ˃ 9,825,341 O events by widening the beach and dunes at Surfers Paradise. • •
Deliver the Palm Beach Shoreline Project, including the artificial reef, providing a sustainable solution ˃ 6,668,808 O for the ongoing protection of the foreshore at Palm Beach. • • Key Activities
Increased erosion protection at Narrowneck Reef. This will restore the asset and will result in increased ˃ 1,504,852 O sand volumes for the northern beaches. •
Construct approximately 200m of seawall at Narrowneck from the southern carpark and progress ˃ 928,000 O further south towards Higman Street, Surfers Paradise. •
Currumbin Creek Connecting Arm (Seawall) Renewal, comprising reconstruction of approximately 50m ˃ 500,000 O of rock armour that connects to the northern wall at the Currumbin Creek entrance. •
Construction of stairs, viewing platforms, dune fencing, boardwalks, pontoons and jetties and the ˃ 113,000 O renewal and reconstruction of boating facilities infrastructure in tidal waterways.
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 43 Program 4: Conservation and Environment 4 2017-18 Conservation and Environment Program, by Service Expense ($)
Catchment Management 4,895,530
Service Protect and enhance recreational and environmental waters. Description
Level of Maintained or improved Healthy Waterway Report Card score. Number of primary contact water recreation sites Service microbiologically compliant at all times. PlanOp Corp Plan GC2018 Strategy*
Develop a Water Strategy to ensure that waterways and water resources are managed for the future ˃ RF benefit of the city. • •
Natural Environment Conservation 2,297,820 Key Activities
Service Protect and conserve natural environmental assets to maintain land, air and water quality. Minimise the impact of Description natural hazards.
100% of Land For Wildlife site visit requests are actioned. Council's Voluntary Conservation Agreement Policy is Level of funded. 100% of Bushland Health Check requests are actioned for eligible properties. Review of Open Space Service Preservation Levy Land Acquisition Policy every five years. Requirements of the State Planning Policy with respect to natural hazards are met.
˃ Develop and implement a Citywide Koala Conservation program. 404,700 • •
Conservation and Environment, Program Total 50,066,199
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 44 Program 5: Economic Development 5 Facilitate long-term economic growth by promoting innovation and developing an internationally connected, highly skilled and educated community.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Economic Development 40,472,917 31,481,835 8,096 71,962,848 68.8%
Tourism Management and Marketing 31,470,700 1,125,519 0 32,596,219 31.2%
Total 71,943,617 32,607,354 8,096 104,559,067 100.0%
Capital Expenditure How the Program is Funded
General Revenue 66.9% Budget Summary Budget Developer Contributions and Reserves 23.3%
$32.6M $0.0M Special and Separate Rates and Levies 6.5% 100% 0% 2.2% End of Life Renewal Driven Grants, Subsidies and Contributions New / Upgrade Driven Other Revenue 1.1%
2017-18 Economic Development Program, by Service Expense ($)
Economic Development 71,962,848
Service Drive economic growth through the development and delivery of economic infrastructure, diversification of local Description businesses and industries and partnerships with other levels of government. Level of Increases in business and investor confidence, increases in economic growth, increases in employment growth, Service increases in productivity levels, improved structural change to the economy. PlanOp Corp Plan GC2018 Strategy* Cash contribution to the State Government as part funding for the development and upgrade of facilities ˃ 20,000,000 owned by the City that are required for the 2018 Commonwealth Games. • Management and delivery of the City Operations for the Commonwealth Games in 2018. Funding ˃ 14,212,620 includes Community Readiness, Out of Venue Planning and Gold Coast Media Operations. • Council's Commonwealth Games Unit partners with the State Government in the delivery of the 2018 Commonwealth Games. The Unit is responsible for the City's commitments in the planning, ˃ 11,374,510 administration and delivery of the Games. This includes the festivals program, business attraction, pre • and post events, venue operations prior to the Games and ensuring a lasting legacy from the event. ˃ Undertake further planning and design for the Oceanside Cruise Ship Terminal. 2,527,086 • • E ˃ Installation of high speed fibre optic cable and associated infrastructure along the Light Rail route. 2,365,187 • • Establish an iconic public art gateway structure to provide a pivotal entry marker to the city during the ˃ 2,305,296 Commonwealth Games and leaving a lasting legacy after the Games. • • Funding to support environmental solutions on Council owned facilities being developed for the 2018 ˃ 1,828,007 Commonwealth Games, reducing ongoing operating costs of the facilities. • Key Activities Implement a range of initiatives, including attraction of new business and investment, to revitalise ˃ 1,200,000 E Southport as the city's CBD. • • Develop a distinct artistic DNA that reflects our city's spirit and lifestyle, changes perceptions and ˃ provides a unique sense of place through the support of the Bleach Festival as the city's flagship arts 950,000 • C festival and the development of innovative local artists and arts organisations. ˃ Installation of the Wealth Paifang at Chinatown in Southport. 850,000 • • E Provide a media centre for non-accredited media to access information about the Gold Coast, during ˃ 818,000 GC2018. • • Enhance the streetscape of Nerang Street Mall infrastructure from Scarborough Street to Marine ˃ 603,303 Parade, Southport. Improvements include vegetation, public art, lighting, banner poles and footpaths. • • Enhance the streetscape of Broadbeach Mall infrastructure from Surf Parade to Kurrawa Park. ˃ Improvements include vegetation, street furniture, public art, lighting, banner poles and footpath surface 453,534 • • improvements. Support the Gold Coast Health and Knowledge Precinct to become a world-class renowned centre of ˃ 200,000 E ideas, research and innovation. • • The GC2018 Spectacular is a public art installation that will enhance the Games visitor experience. The ˃ artwork will feature visual links to GC2018, encourage interactive engagement by audiences and be 136,354 • • strategically placed on the Esplanade, Surfers Paradise.
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 45 Program 5: Economic Development 5 2017-18 Economic Development Program, by Service Expense ($)
Tourism Management and Marketing 32,596,219
Service Promote the Gold Coast as a world class visitor destination for domestic and international travellers. Attract major Description events to the city to increase visitor numbers.
Report on the delivery of the Economic Development Strategy 2023 tourism related activities via the progress Level of towards achievement of targets in key areas of: domestic and international visitor numbers, length of stay and Service spend; business engagement and support for tourism and sports related industries; delivery of tourist related projects. PlanOp Corp Plan GC2018 Strategy* ˃ Funding for Gold Coast Tourism for the promotion of the city across Australia and throughout the world. 15,450,000
˃ Funding for Surfers Paradise Alliance. 3,343,327
˃ Support for major events and festivals that attract visitors to the city. 2,870,701
˃ Funding for Broadbeach Alliance. 2,776,304 Key Activities
˃ Funding for Connecting Southern Gold Coast. 793,978
Expand tertiary education places within the city to increase the capability of the workforce and support ˃ 670,000 E economic diversification. • •
Redevelop the Surfers Paradise Visitor Information Centre in Cavill Mall. The new centre will improve ˃ the overall visitor experience through the delivery of digital technology, navigation, activity and support 432,000 • • E programs.
Deliver an integrated visitor servicing plan to improve the overall visitor experience through delivery of ˃ 403,925 the latest digital technology, mobile and pop-up solutions. • •
Support the construction of world-class mountain bike trails and facilities by installing infrastructure to ˃ 150,000 E improve tourism opportunities at the Gold Coast Cycle Centre and the adjoining Nerang National Park. •
Economic Development, Program Total 104,559,067
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 46 Program 6: Parks, Recreation and Culture 6 Manage a diverse network of high quality parks, open spaces and recreational facilities. Develop and support cultural experiences in the city.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Parks, Natural Areas and Recreation 67,862,638 43,273,171 12,878,063 124,013,872 50.1% Culture and Heritage 12,012,848 26,705,042 0 38,717,890 15.6% Library Services 25,894,546 411,130 0 26,305,676 10.6% Major Sporting and Aquatic Centres 12,396,185 9,338,062 0 21,734,247 8.8% Tourist Parks and Campgrounds 11,086,818 4,973,099 3,522,556 19,582,473 7.9% Community Support 5,927,900 4,672,662 0 10,600,562 4.3% Community Centres 5,636,870 1,066,000 0 6,702,870 2.7%
Total 140,817,805 90,439,166 16,400,619 247,657,590 100.0%
Budget Summary Budget Capital Expenditure How the Program is Funded General Revenue 58.5% Developer Contributions and Reserves 22.2% $14.3M Fees and Charges 7.9% 16% Sale of Assets 3.1% Recreational Space Separate Charge 3.1% $76.2M 84% End of Life Renewal Driven Other Revenue 2.8% New / Upgrade Driven Loans 1.3% Grants, Subsidies and Contributions 1.1%
2017-18 Parks, Recreation and Culture Program, by Service Expense ($)
Parks, Natural Areas and Recreation 124,013,872
Service Provide a network of safe, accessible and attractive parks to enhance community interaction and strengthen the city’s reputation as a great place to live and visit. Guide long-term bushfire mitigation by implementing the Description Citywide Bushfire Management Plan. Level of Grass mowing rotations (per annum): urban areas (16-20), natural/broad acre (10-14), rural roads (6-10). Routine
Service playground inspections (daily to two weekly dependant on use). PlanOp Corp Plan GC2018 Strategy* ˃ Maintenance, watering and mulching of landscaped areas throughout the city. 17,195,730 ˃ Maintaining and repairing park assets, park furniture, skate parks, bmx tracks and barbeques. 10,194,510 ˃ Mowing, edging, weeding and watering of grassed areas throughout the city. 7,854,700 Tree pruning, removal, planting and maintenance in parks throughout the city, including responding to ˃ 6,923,530 over 6,000 requests for tree maintenance each year. ˃ Management of over 13,000 hectares of bushland. 6,297,175 Renewal and replacement of park assets including public conveniences, car parks, barbeques, lighting ˃ 5,054,348 and playground equipment. ˃ The purchase of land and site establishment works for the future Ormeau Branch Library. 3,750,000 ˃ Managing and maintaining turf on local sporting fields. 3,692,700 Maintaining Southport Broadwater Parklands, including turf maintenance, maintaining landscaping and Key Activities ˃ 3,012,040 other park assets, cleaning, vandalism repairs and graffiti cleaning. Further development of the Pimpama River Sports Park. Works include a cricket oval, irrigation, toilet ˃ 2,355,313 facility, entry road, car parking and landscaping. The acquisition of land within the Coomera Town Centre precinct that will be used to meet the future ˃ 2,277,127 demand for community facilities within the area. Bushfire management including hazard reduction burns, fire management planning, fire breaks, fire trail ˃ 1,844,840 construction and vegetation management. Upgrade to Sickle Park in Hope Island to meet the needs of a growing population. Works will include ˃ 1,656,528 playgrounds, walking paths and picnic areas. ˃ Completion of three playing surfaces and ancillary facilities in Coplicks Sports Park, Tallebudgera. 1,500,000 • ˃ Rock stabilisation works at Lions Head Park, Miami to protect against slope instability. 1,360,200 • ˃ Develop a master plan for the Gold Coast Central Park. 190,000 • • ˃ Design Stage 3B of the Broadwater Parklands redevelopment. 90,000 • • ˃ Implement a community and sporting clubs volunteer attraction program. 75,000 • • ˃ Continue to plan for playgrounds for children of all ages and abilities in the city. RF • •
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 47 Program 6: Parks, Recreation and Culture 6 2017-18 Parks, Recreation and Culture Program, by Service Expense ($)
Culture and Heritage 38,717,890
Service Deliver programs that support professional opportunities for Gold Coast artists and creative industries, elevate indigenous arts and culture and celebrate and value our cultural heritage. Encourage our community to actively Description participate in and experience arts and culture and build the city’s reputation as a vibrant creative city. 5-6 places proposed for heritage listing per year. Distribute 100% of available RADF Funds. 6 professional arts Level of development workshops for 200 participants. 1 x tailored residency program for 10 indigenous Gold Coast artists. Service Deliver 1 x major public art commission. 13 medium to large civic events annually. 31 citizenship ceremonies annually. PlanOp Corp Plan GC2018 Strategy* Complete construction on Stage 1A of the Gold Coast Cultural Precinct, including an outdoor ˃ 12,667,506 E amphitheatre. • • Complete detailed design and begin construction of Stage 1B of the Gold Coast Cultural Precinct which ˃ 10,891,018 E includes an art gallery, pedestrian bridge and supporting infrastructure. • • Provide funding for the Gold Coast Arts Centre for the ongoing management, development, renewal and ˃ 6,076,293 maintenance of facilities. Funding also supports the art and asset acquisition programs. Provision of furniture and equipment, black box facility and technical equipment to support the ˃ 1,244,918 E amphitheatre at the Gold Coast Cultural Precinct. • • Create opportunities for local artists that have global appeal through embedded cultural tourism ˃ 150,000 C initiatives, programming, events and festival activity in key tourism facilities. • Multicultural engagement through the activation of community hubs, cultural innovation labs and ˃ creative residencies supporting creative and leadership development for multicultural artists, 110,000 • C organisations and communities. Deliver a Youth Artist Engagement Program developing the city’s emerging creative and artistic ˃ 100,000 C practitioners and future cultural leaders. • • Elevating and valuing our Indigenous arts and culture and our city’s heritage through the South ˃ Stradbroke Indigenous Artist Camp. This includes exhibitions and partnerships that support local artists 60,000 • • C to present work nationally and internationally. Support the development of the live music industry in the city through artist and industry development to ˃ RF C create a vibrant music sector. • • Key Activities Library Services 26,305,676
City Libraries inspire a love of reading, learning, creativity, and a sense of place and local identity through Service programs and services that support reading and literacy, skill development and life-long learning. City Libraries Description provides opportunities for community collaboration, engagement participation and cultural expression to underpin and strengthen community connectedness, wellbeing and creativity.
Number of hours each library is open weekly. Square meterage of library floor space. Number of library staff per capita. Membership rates as a percentage of population. Internet connectivity (PC and WiFi usage) per capita. Level of Reference statistics including Information Technology assistance. Virtual use measured by use of the library’s Service website; number of holds placed; and eResource use per capita. Level of community engagement measured through meeting room use; average hours per meeting room booking; number of library programs; and attendance at library programs.
˃ Funding to purchase additional items for the library collections across the city. 5,718,569
Major Sporting and Aquatic Centres 21,734,247
Service Provide sporting and aquatic centres for community use and elite sports training and events. Description Level of Available every day of the year. All requests for service are actioned within 24 hours to one week. Service Progress detailed planning for a new Northern Gold Coast Sports and Community Precinct in Pimpama ˃ 5,000,000 to support the growing population of the northern Gold Coast including completion of detailed design. • • Renewal works and equipment purchases at various sporting venues across the city including the Gold ˃ Coast Sports and Leisure Centre, Coomera Indoor Sports Centre, Gold Coast Cycle Centre, Carrara 2,968,242 Indoor Stadium, Gold Coast Sports Precinct, Gold Coast Aquatic Centre and other swimming pools. Renewal of facilities at Miami Aquatic centre in accordance with the updated Masterplan. Initial focus ˃ 1,369,820 will be on replacing and upgrading Learn to Swim facilities and site access improvements. GC2018 readiness and legacy enhancements to develop Carrara Gold Coast Sports Precinct as an ˃ 685,265 enduring international sport and leisure venue, including hosting pre and post GC2018 major events. • •
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 48 Program 6: Parks, Recreation and Culture 6 2017-18 Parks, Recreation and Culture Program, by Service Expense ($)
Tourist Parks and Campgrounds 19,582,473
Service Provide tourist accommodation and facilities at seven tourist parks and three campgrounds with accommodation Description options including caravan and camping sites, luxury cabins and group lodgings. Level of Number of cabins/units available at each tourist park. Number of caravan/camping sites available at each site. Service Open 365 days per year. Reception operating hours per day at each site. PlanOp Corp Plan GC2018 Strategy*
˃ Upgrade, renewal and replacement of assets at the City's seven Tourist Parks. 3,779,931
˃ Upgrade, renewal and replacement of assets at Tipplers resort on South Stradbroke Island. 1,193,168
Community Support 10,600,562
Service Offer discounts, remissions and subsidies to the city's ratepayers. Donate to community organisations throughout Description the city. Level of A balanced delivery of discounts, remissions, donations and subsidies within an agreed time frame, in compliance Key Activities Service with all regulations and to the satisfaction of the organisation.
Community Centres 6,702,870
Service Manage community, youth and cultural centres that contribute to the social, recreation and education needs of the community. Ensure equitable access, connectivity and capacity building with community sector support and Description development.
Level of Meeting targets on availability of facilities. Maintenance of facilities to meet legislative requirements. Provision of accessibility compliant facilities. Utilisation levels of facilities. Management of bookings and collection of usage Service fees.
˃ Undertake a feasibility study as an initial stage of planning for community facilities in Coomera. 50,000 • •
Parks, Recreation and Culture, Program Total 247,657,590
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 49
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Chapter 2: City Operational Plan
Annual Plan 2017-18 Page 50 Program 7: Waste Management 7 Deliver waste infrastructure and provide waste collection, resource recovery and waste disposal services.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Waste Disposal 33,455,708 5,659,500 12,479,353 51,594,561 54.3%
Waste Collection 19,145,339 0 0 19,145,339 20.1%
City Cleaning 15,940,854 0 0 15,940,854 16.8%
Materials Recycling 8,366,163 0 0 8,366,163 8.8%
Total 76,908,064 5,659,500 12,479,353 95,046,917 100.0%
Capital Expenditure How the Program is Funded Budget Summary Budget
Waste Management Utility Charge 77.7%
Fees and Charges 11.4% $1.3M $4.4M 23% Developer Contributions and Reserves 4.7% 77% Loans 4.0% End of Life Renewal Driven New / Upgrade Driven Grants, Subsidies and Contributions 2.2%
2017-18 Waste Management Program, by Service Expense ($)
Waste Disposal 51,594,561
Service Provide safe and reliable solid waste disposal services. Description Level of Number of landfills (past and present) environmentally compliant at all times. Number of waste spills reported to Service the regulator. PlanOp Corp Plan GC2018 Strategy* Operation of waste and recycling centres throughout the city, including the cost of transporting waste ˃ 7,024,726 from the transfer stations to landfills. Purchase of land adjoining the Reedy Creek landfill to support the ongoing development and operation ˃ 3,000,000 of landfill at the site. ˃ Develop a detailed design and construct an engineered landfill liner system at Reedy Creek landfill. 500,000 • S ˃ Implement a commercial food collection service to reduce organic waste disposed at City landfills. 210,000 • S Key Activities Develop a detailed concept design incorporating operational and post operational needs for the ˃ 125,000 S Stapylton landfill. •
Waste Collection 19,145,339
Service Provide safe and reliable waste collection services. Description Level of Percentage of missed scheduled collection services. Percentage of overflowing street and park bins responded to Service within 24 hours. Waste Service contracts for the collection of waste from residential and commercial properties ˃ 16,717,789 throughout the city.
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 51 Program 7: Waste Management 7 2017-18 Waste Management Program, by Service Expense ($)
City Cleaning 15,940,854
Service Preserve the health and amenity of public spaces through cleaning and rubbish removal services. This includes roadway, malls and bikeway mechanical sweeping; general litter collection; removal of illegally dumped material Description from roadsides, parks and malls and cleaning of public assets.
Level of All services are provided in accordance with the Asset Maintenance Schedules/Plans developed as part of the SLA / Partnering Agreements between the relevant Asset Custodian - City Maintenance Branch and also the City Service Cleaning Standard Operating Procedures Manual. PlanOp Corp Plan GC2018 Strategy*
˃ Sweeping of roads, footpaths, bikeways and oceanways. 3,748,937
Litter pick-up on roads, footpaths, parks and beaches in areas of the city outside of the main urban ˃ 2,780,918 precincts.
˃ Cleaning of public toilets, barbeques and picnic tables in parks throughout the city. 2,709,100
˃ Servicing and maintaining approximately 3,000 public litter bins and recycling bins throughout the city. 2,698,649
Funding to maintain a clean and healthy environment in the Southport CBD, Broadbeach and Surfers Key Activities ˃ Paradise urban precincts. Services provided include street sweeping, litter control, litter bin servicing, 2,686,840 hot pressure cleaning, road and footpath flushing, and public amenity servicing.
Materials Recycling 8,366,163
Service Provide and encourage the use of recycling services to ensure reuse, recycling and recovery options are Description maximised prior to landfill disposal.
Increase in the total waste recovered/recycled as a percentage of total waste collected. Increase in green waste Level of diverted from landfill for beneficial reuse. Increase in domestic waste recovered/recycled as a percentage of total Service domestic waste collected (%). Contaminants in recyclable waste processed at the Materials Recovery Facility (%).
Providing waste recycling services to the city, including the contract for the fortnightly recycling and ˃ 8,017,862 green waste bin pick-up service provided to residents.
Waste Management, Program Total 95,046,917
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 52 Program 8: Water and Sewerage 8 Provide safe drinking water supplies and safe wastewater collection, treatment, reuse and disposal.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Drinking Water 203,038,888 13,815,000 8,077,552 224,931,440 64.1%
Sewerage 64,260,926 61,237,000 0 125,497,926 35.8%
Non-Drinking Water 370,542 50,000 0 420,542 0.1%
Total 267,670,356 75,102,000 8,077,552 350,849,908 100.0%
Capital Expenditure How the Program is Funded Budget Summary Budget Water and Sewerage Rates 92.8%
$34.0M Developer Contributions and Reserves 4.3% 45% $41.1M 55% Interest Revenue 1.8% End of Life Renewal Driven
New / Upgrade Driven Other Revenue 1.1%
2017-18 Water and Sewerage Program, by Service Expense ($)
Drinking Water 224,931,440
Service Provide safe and reliable drinking water services in partnership with South East Queensland Water. Description Level of Total water supplied (ML). Water quality. Water main breaks (per 100 km of water main). Number of zones where Service
microbiological compliance was achieved. Infrastructure Leakage Index. PlanOp Corp Plan GC2018 Strategy* As a regulated commercialised business unit, Gold Coast Water provides a financial return to Council in ˃ the form of interest, dividends and tax equivalent payments. These returns are used to fund other operations and capital works across Council, thus keeping general rates down. Council purchases water from the State owned SEQ Water and then distributes that water to customers ˃ 174,727,200 within the city. This is the cost of purchasing water from the State. ˃ Capital works to upgrade, renew and construct infrastructure across the entire water network. 13,815,000
Sewerage 125,497,926
Service Provide safe and reliable sewerage services. Description Level of Number of sewage treatment plants compliant at all times. Number of sewage overflows reported to the Service Regulator. Capital works to upgrade, renew and construct infrastructure across the entire network including
Key Activities ˃ 38,437,000 treatment plants, pump stations and mains. Progress the development of the Long Term Recycled Water Release plan (Stage 1), including upgrade ˃ 22,800,000 of infrastructure to support the growth of the city and the protection of the surrounding environment. • • Improvement in the sewer rising main at Benowa will provide adequate sewage infrastructure to support ˃ 5,522,000 more flexible and efficient system operations leading up to the Commonwealth Games. • Construct a facility to assist with treatment of leachate from the City's landfill sites within the sewage ˃ 700,000 S treatment network. • Perform a market analysis for potential re-use of city generated bio-resource products. The market ˃ 75,000 S analysis will inform future planning and investment activities. •
Non-Drinking Water 420,542
Service Provide safe and reliable recycled water services. Description Level of Percentage of tests meeting Public Health Regulations for microbiological quality (class A+ recycled water). Service Percentage of water recycled (Class A+). Compliance with the Recycled Water Management Plan.
Water and Sewerage, Program Total 350,849,908
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 53
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Chapter 2: City Operational Plan
Annual Plan 2017-18 Page 54 Program 9: Organisational Capability 9 Corporate planning and governance including the management of strategic risk, people, financial and information resources.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Information Management 82,872,180 5,608,298 8,968,973 97,449,451 49.4% Financial Management 31,097,960 0 35,548,293 66,646,253 33.8% Risk Management 21,262,829 240,700 0 21,503,529 10.9% Human Resources 7,661,525 0 0 7,661,525 3.9% Corporate Planning and Performance 2,673,237 0 0 2,673,237 1.4% Strategic Asset Management 1,296,600 0 0 1,296,600 0.7%
Total 146,864,331 5,848,998 44,517,266 197,230,595 100.0%
Capital Expenditure How the Program is Funded Budget Summary Budget
The Organisational Capability program facilitates the collection of many corporate revenues, such as $1.3M general rates and general purpose grants. This 23% funding is not redistributed internally which creates a $4.5M large surplus position in this program. Therefore, it is 77% not possible to provide a graph for this program that is consistent with the other programs. End of Life Renewal Driven New / Upgrade Driven
2017-18 Organisational Capability Program, by Service Expense ($)
Information Management 97,449,451
Service Supporting Council's business operations through the provision of information and communication technology Description services.
Level of Availability - Criticality 1 ICT Systems (99.9% target) Service Request Completion Time (95.0% target) Service Resolution Time - Priority 1 & 2 Incidents (95.0% target) PlanOp Corp Plan GC2018 Strategy* ˃ Replace the Grange Water billing system as part of the Local Government Platform project. 7,234,804 • Replacement of PCs and laptops which are out of warranty and have reached the end of their useful ˃ 3,710,000 life. Cyber resilience program that focuses on the preventative, detective and reactive controls to enhance ˃ 2,050,777 the overall cyber security capability of the city. •
Financial Management 66,646,253 Key Activities Service Provision of financial, management and asset accounting services to the organisation. Financial planning and Description strategy development to sustain a responsible financial position over the long-term. A balanced annual budget, delivered within agreed timeframe. Annual financial statements are unqualified and Level of delivered within the agreed timeframe. Management Accounting Services delivered to the satisfaction of the Service Directorates. Development and execution of procurement contracts for Council. Compliance with Local Government Act requirements for rates and billing.
Risk Management 21,503,529
Service Mitigate risk by providing governance of corporate, directorate and business risk planning. Provide legal services, Description insurance, staff immunisation, fraud prevention, internal audit and corporate security. Level of Business Continuity Plans. Health and Injury Management. Work Health and Safety (WH&S) and Risk Capability. Service Risk Governance. WH&S Governance.
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 55 Program 9: Organisational Capability 9 2017-18 Organisational Capability Program, by Service Expense ($)
Human Resources 7,661,525
Service Provide services to the organisation related to the complete life cycle of employees including recruitment, payroll, Description equal opportunity, performance management and professional development. Level of Employees paid correctly and on time 99% of the time and program and coordinate courses that underpin each Service capability and role responsibility. PlanOp Corp Plan GC2018 Strategy*
Corporate Planning and Performance 2,673,237
Service Lead the development and implementation of effective corporate governance through strategic, corporate and operational planning; community engagement planning; policy management; portfolio management, performance Description management and reporting; advocacy and regional collaboration.
Develop the City’s Corporate Plan, Annual Plan and Operational Plan. Maintain and continuously improve Level of corporate governance systems and processes, including the annual planning and budget process. Develop and manage corporate portfolios for strategy, policy, business improvement and infrastructure investments. Review Service
Key Activities and manage corporate performance through the quarterly Corporate Performance Report, periodic portfolio reports, the State of the Organisation Report and the Annual Report.
Strategic Asset Management 1,296,600
Service Lead the implementation and ongoing governance of fit-for-purpose asset management practices across the organisation; and provide a whole-of-Council view of infrastructure investment priorities to enable informed Description decision making by Executive and Council.
Maintain asset management framework, standards and guidelines. Govern the management of asset data. Level of Provide guidance and support to custodians and staff with annual asset management plan updates. Coordination Service of infrastructure capital works budget submissions. Annually produce the Total Asset Management Plan. Coordination of the asset management improvement program.
Organisational Capability, Program Total 197,230,595
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 56 Program 10: Internal Services 10 Products, services and facilities provided to internal customers to enable them to deliver products and services to the community.
Internal Debt Service Operating ($) Capital ($) Total ($) % Service ($)
Internal Support Services 55,820,245 4,680,800 0 60,501,045 64.9% Property and Facilities Management 9,698,380 6,776,775 1,274,885 17,750,040 19.0% Council Support 7,875,881 0 0 7,875,881 8.4% Fleet and Plant -11,190,221 14,540,171 0 3,349,950 3.6% Marketing and Promotions 2,913,885 0 0 2,913,885 3.1% Infrastructure Services 935,232 0 0 935,232 1.0% Nursery Operations -91,507 0 0 -91,507 -0.1%
Total 65,961,895 25,997,746 1,274,885 93,234,526 100.0%
Budget Summary Budget Capital Expenditure How the Program is Funded
General Revenue 75.1%
11.6% $4.7M Developer Contributions and Reserves 18% Other Revenue 7.1% $21.3M 82% Sale of Assets 4.5% End of Life Renewal Driven New / Upgrade Driven Grants, Subsidies and Contributions 1.7%
2017-18 Internal Services Program, by Service Expense ($)
Internal Support Services 60,501,045
Service Provide a diverse range of strategic and operational direction through executive management, professional and Description administrative support functions across directorates, underpinning the City’s operations and delivery of services. Waste facilities acceptance of materials from Council construction and maintenance activities; fleet vehicles Level of supplied are fit for purpose; management and oversight of cleaning and maintenance of city buildings and Service facilities; legislative requirements for annual and operational reporting; coordination of digital city architecture; management and oversight of administrative functions and planning and management of Local Area Works. PlanOp Corp Plan GC2018 Strategy* Digital City architecture to support complex data analytics including real-time public access information ˃ for emergency flood management and the design and implementation of an automated management 1,582,750 • • system for feral animal trapping.
Property and Facilities Management 17,750,040 Key Activities Service Provide full facility management services to Council owned buildings including accommodation planning, building management, fire safety and security operations. Manage Council's property portfolio including acquisitions, Description disposals and leasing.
Accommodation planning and projects, fire systems testing and maintenance, mechanical, electrical and lift systems maintenance, energy management, compliance reporting and additional after hours services. Building Level of soft services including car parking, catering, resource management and car pool operations. Maintenance is Service undertaken on various building components in accordance with manufacturer or legislative requirements. Maintenance and structural repairs to Council's major administration centres, leased premises, Council chambers, branch offices and Arts Centre.
˃ Operation and maintenance of Council administration buildings. 5,438,900 ˃ Renewal and upgrade works of Council administration buildings. 3,769,775
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 57 Program 10: Internal Services 10 2017-18 Internal Services Program, by Service Expense ($)
Council Support 7,875,881
Service Ensure Councillors are able to perform their civic duties. Ensure the availability of Council meeting agendas and Description minutes to residents. Provide the services required for local government elections.
Council/Committee meeting adopted reports publicly available within 10 days after the end of the meeting. Level of Council Meetings Live Streamed for the general public to access. Council and Committee meeting provisions Service adhere to the Local Government (Operations) Regulation 2010 and Gold Coast City Council Local Law No.1 (Meetings) 2008. PlanOp Corp Plan GC2018 Strategy*
Fleet and Plant 3,349,950
Service Provide vehicle, plant and equipment resources to internal customers. Manage the assets through their entire Description lifecycle.
Level of Provide advice on issues/matters that require attention within 7 days of notification. Make all arrangements for re- registration and de-registration as per Queensland Transport requirements. Replacement of all Service vehicles/plant/equipment based on a condition monitoring and assessment methodology.
Marketing and Promotions 2,913,885
Promote our city's reputation to residents as an investment, lifestyle and business destination. Manage daily Service media issues. Provide professional digital, social and mainstream marketing, engagement and communication Description services that deliver on key communication objectives of the Mayor, Council and Chief Executive Officer (aligned with corporate strategies).
Around 45 marketing programs conducted annually, with an average reach and frequency of 1.25 million people. Level of 24/7 social media management with 82,000 current Facebook followers. Twitter followers now exceed 10,000. Key Activities Provide 24/7 on call media issues management. Oversee and management of Public Information and Warnings Service Unit at Disaster Management Centre during natural hazards. Annual media sentiment benchmark to exceed 55 percent proactive/positive media coverage.
Infrastructure Services 935,232
Service Contribute to the delivery of Council's large capital and maintenance program by providing professional services in the disciplines of engineering, architecture, landscape architecture, specifications, CADD, 3D visualisations, Description surveying and materials testing.
Level of Delivery at portfolio/asset class level below industry benchmarks for cost. Delivery at portfolio/asset class below industry benchmark for time. Delivery at portfolio/asset class below industry benchmark for quality (number of Service unresolved non-conformances in expected outcomes from the project briefs).
Nursery Operations -91,507
The Nursery manages the supply of trees and plants for Council of the City of Gold Coast. This service provides Service high quality trees, palms and groundcovers to be used for improving parks and streetscape to encourage native wildlife species and improve our environment. The key activities undertaken by this service include growing and Description procuring trees for capital and operational works projects, the citizenship ceremony and the free trees for rate payers program.
Level of Provide trees to the community to plant on their properties. Five trees per body corporate per year, two trees per Service rateable property per year, fifty trees per school per year.
Internal Services, Program Total 93,234,526
* Strategy Key: C=Culture, E=Economic Development, O=Ocean Beaches, S=Solid Waste, T=Transport RF: Denotes key activities delivered from recurrent sources of funding. Annual Plan 2017-18 Page 58
2.3 Implementation of Gold Coast 2022 and City strategies
2.3.1 Gold Coast 2022 The City’s Corporate Plan – Gold Coast 2022 is structured around three themes and identifies what we need to do between now and 2022 to work towards the City Vision.
Figure 5: Gold Coast 2022 – plan structure
The investment in key activities supporting the implementation of Gold Coast 2022 for 2017-18 is shown overleaf.
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Total New Investment 2017-18 $111.6M Gold Coast 2022
Supporting the implementation of the City Vision to 2022 through three themes - Place, Prosperity and People.
Gold Coast 2022 Themes
The best PLACE PROSPERITY built on a PEOPLE contribute to a to live, visit and stay strong diverse economy strong community spirit
2017-18 Key Activities 2017-18 Expense ($) Progress the development of the Long Term Recycled Water Release plan (Stage 1), including upgrade of ˃ 22,800,000 infrastructure to support the growth of the city and the protection of the surrounding environment. The City's contribution to Department of Transport and Main Roads to deliver Stage 2 of the Gold Coast ˃ 20,000,000 Light Rail system from Gold Coast University Hospital to Helensvale Railway Station.
˃ Complete construction on Stage 1A of the Gold Coast Cultural Precinct, including an outdoor amphitheatre. 12,667,506
Complete detailed design and begin construction of Stage 1B of the Gold Coast Cultural Precinct which ˃ 10,891,018 includes an art gallery, pedestrian bridge and supporting infrastructure. Deliver the Northern Beaches Shoreline Project to increase protection against erosion and major storm ˃ 9,825,341 events by widening the beach and dunes at Surfers Paradise. Deliver the Palm Beach Shoreline Project, including the artificial reef, providing a sustainable solution for ˃ 6,668,808 the ongoing protection of the foreshore at Palm Beach. Develop a preliminary business case for Stage 3A of the Gold Coast Light Rail network southern ˃ 5,000,000 extension. Progress detailed planning for a new Northern Gold Coast Sports and Community Precinct in Pimpama to ˃ 5,000,000 support the growing population of the northern Gold Coast including completion of detailed design. ˃ Undertake further planning and design for the Oceanside Cruise Ship Terminal. 2,527,086 ˃ Installation of high speed fibre optic cable and associated infrastructure along the Light Rail route. 2,365,187 Upgrade intersection between Napper Road and Arundel Drive, Arundel from roundabout to traffic signals ˃ 1,920,000 to reduce queuing and improve safety. Upgrade intersection between High Street and Scarborough Street, Southport to include traffic signals and ˃ 1,796,080 provision of two lanes in each direction to reduce congestion and increase capacity and safety. Digital City architecture to support complex data analytics including real-time public access information for ˃ emergency flood management and the design and implementation of an automated management system 1,582,750 for feral animal trapping.
Identify a preferred solution and develop a concept design to increase capacity across the Nerang River to Isle of Capri by providing an additional bridge and upgrades to the intersection of Via Roma with the Gold ˃ 1,500,000 Coast Highway. Works will consider outcomes for all modes of transport including driving, walking, cycling and public transport. Provision of furniture and equipment, black box facility and technical equipment to support the ˃ 1,244,918 amphitheatre at the Gold Coast Cultural Precinct.
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2017-18 Key Activities 2017-18 Expense ($) Implement a range of initiatives, including attraction of new business and investment, to revitalise ˃ 1,200,000 Southport as the city's CBD. ˃ Installation of the Wealth Paifang at Chinatown in Southport. 850,000 GC2018 readiness and legacy enhancements to develop Carrara Gold Coast Sports Precinct as an ˃ 685,265 enduring international sport and leisure venue, including hosting pre and post GC2018 major events. Expand tertiary education places within the city to increase the capability of the workforce and support ˃ 670,000 economic diversification. Deliver disability access and inclusion initiatives including beach access, mobility maps and recharge ˃ 419,840 points. ˃ Develop and implement a Citywide Koala Conservation program. 404,700 Deliver an integrated visitor servicing plan to improve the overall visitor experience through delivery of the ˃ 403,925 latest digital technology, mobile and pop-up solutions. Plan and design the expansion of Sundale Bridge to increase to five lanes and a capacity upgrade at the ˃ 241,000 Waterways Drive/Gold Coast Highway intersection. Support the Gold Coast Health and Knowledge Precinct to become a world-class renowned centre of ˃ 200,000 ideas, research and innovation. ˃ Develop a master plan for the Gold Coast Central Park. 190,000 Plan and design the upgrade to Old Coach Road, Reedy Creek to provide a four lane connection to Exit 87 ˃ 150,000 (Bermuda Street). Deliver a Youth Artist Engagement Program developing the city’s emerging creative and artistic ˃ 100,000 practitioners and future cultural leaders. ˃ Design Stage 3B of the Broadwater Parklands redevelopment. 90,000 ˃ Implement a community and sporting clubs volunteer attraction program. 75,000 Elevating and valuing our Indigenous arts and culture and our city’s heritage through the South Stradbroke ˃ Indigenous Artist Camp. This includes exhibitions and partnerships that support local artists to present 60,000 work nationally and internationally.
˃ Redeploy GC2018 CCTV cameras and explore new safety technologies. 50,000 ˃ Undertake a feasibility study as an initial stage of planning for community facilities in Coomera. 50,000 ˃ Review requirements for the upgrade of Biggera Creek dam to ensure adequate flood mitigation. RF Implement the Eat Safe Program, which will provide a star rating for food safety management for all ˃ RF licensed food premises in the city. Develop a Water Strategy to ensure that waterways and water resources are managed for the future ˃ RF benefit of the city. Support the development of the live music industry in the city through artist and industry development to ˃ RF create a vibrant music sector. ˃ Continue to plan for playgrounds for children of all ages and abilities in the city. RF
Total New Investment 111,628,424
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2.3.2 City strategies The City of Gold Coast has developed a range of strategies to support the transformation of the city over the next 10 – 20 years. The development and implementation of these strategies is supported by existing city services supplemented by new investment. The investment in key activities progressing the five City strategies for 2017-18 is shown in the following tables.
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Total New Investment 2017-18 $2.2M
Culture Strategy 2023
Fostering the energy and vision of local artists and creative industries to promote the Gold Coast's distinct and enviable cultural identity and lifestyle.
Strategy Outcomes
˃ Our culture is distinctly Gold Coast ˃ A place where culture is everyday ˃ A community that values its cultural heritage ˃ A city where creativity creates opportunity
2017-18 Top Five Key Activities 2017-18 Expense ($) Develop a distinct artistic DNA that reflects our city's spirit and lifestyle, changes perceptions and provides ˃ a unique sense of place through the support of the Bleach Festival as the city's flagship arts festival and 950,000 the development of innovative local artists and arts organisations.
Multicultural engagement through the activation of community hubs, cultural innovation labs and creative ˃ residencies supporting creative and leadership development for multicultural artists, organisations and 110,000 communities. Deliver a Youth Artist Engagement Program developing the city’s emerging creative and artistic ˃ 100,000 practitioners and future cultural leaders. Elevating and valuing our Indigenous arts and culture and our city’s heritage through the South Stradbroke ˃ Indigenous Artist Camp. This includes exhibitions and partnerships that support local artists to present 60,000 work nationally and internationally. Support the development of the live music industry in the city through artist and industry development to ˃ RF create a vibrant music sector.
Note: Some key activities listed here will also appear as activities contributing towards Gold Coast 2022. RF: Denotes key activities delivered from recurrent sources of funding. Services supporting the Culture Strategy 2023
The day to day implementation of this strategy is supported by the following service(s):
Internal Debt Operating ($) Capital ($)* Total ($) . Service ($)
˃ Culture and Heritage 12,012,848 26,705,042 0 38,717,890
Note: Costs include business as usual funding and new investment. * Capital expenditure includes significant funding towards the Gold Coast Cultural Precinct.
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Total New Investment 2017-18 $37.8M
Economic Development Strategy 2013-2023
Creating a city recognised for its talented people and innovation making it an international location of choice for business and residents.
Strategy Outcomes
˃ An environment that fosters innovation and grows successful businesses ˃ A thriving cultural economy that attracts skills, talent and investment ˃ Infrastructure that supports productivity and growth ˃ A business environment that is strong and globally competitive ˃ A highly skilled workforce that meets the needs of business and industry ˃ A city known as an emerging world class business destination
2017-18 Top Five Key Activities 2017-18 Expense ($) Implement Stage 1A and commence Stage 1B of the city’s cultural heartland at Evandale, including an ˃ 24,803,442 outdoor amphitheatre, art gallery and green bridge. ˃ Undertake further planning and design for the Oceanside Cruise Ship Terminal. 2,527,086 Implement a range of initiatives, including attraction of new business and investment, to revitalise ˃ 1,200,000 Southport as the city's CBD. Expand tertiary education places within the city to increase the capability of the workforce and support ˃ 670,000 economic diversification. Support the Gold Coast Health and Knowledge Precinct to become a world-class renowned centre of ˃ 200,000 ideas, research and innovation.
Note: Some key activities listed here will also appear as activities contributing towards Gold Coast 2022. RF: Denotes key activities delivered from recurrent sources of funding. Services supporting the Economic Development Strategy 2013-2023
The day to day implementation of this strategy is supported by the following service(s):
Internal Debt Operating ($) Capital ($)* Total ($) . Service ($)
˃ Economic Development 40,472,917 31,481,835 8,096 71,962,848 Tourism Management and ˃ 31,470,700 1,125,519 0 32,596,219 Marketing Note: Costs include business as usual funding and new investment. * Capital expenditure includes significant funding towards the Gold Coast 2018 Commonwealth Games.
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Total New Investment 2017-18 $82.2M
Gold Coast City Transport Strategy 2031
Changing the way we move around the city, by managing road space, investing in cycling and walking and improving public transport.
Strategy Outcomes
˃ Creating liveable places ˃ Providing better local parking management ˃ Delivering the next generation of public transport ˃ Boosting walking and cycling ˃ Maximising road and freight performance ˃ Changing our travel behaviour
2017-18 Top Five Key Activities 2017-18 Expense ($) Develop a preliminary business case for Stage 3A of the Gold Coast Light Rail network southern ˃ 5,000,000 extension. Numerous improvements to pathways and cycleways across the city to support walking and cycling for ˃ 3,222,900 short trips and to provide better access to Commonwealth Games and community venues.
Identify a preferred solution and develop a concept design to increase capacity across the Nerang River to Isle of Capri by providing an additional bridge and upgrades to the intersection of Via Roma with the Gold ˃ 1,500,000 Coast Highway. Works will consider outcomes for all modes of transport including driving, walking, cycling and public transport.
Plan and design the expansion of Sundale Bridge to increase to five lanes and a capacity upgrade at the ˃ 241,000 Waterways Drive/Gold Coast Highway intersection. Complete design for Stage 1 of 3 to upgrade Old Coach Road, Reedy Creek to improve safety, capacity ˃ and provide infrastructure for active transport. Stage 1 is a 1,400m upgrade south from Kingsmore 200,000 Boulevard.
Note: Some key activities listed here will also appear as activities contributing towards Gold Coast 2022. RF: Denotes key activities delivered from recurrent sources of funding. Services supporting the Gold Coast City Transport Strategy 2031
The day to day implementation of this strategy is supported by the following service(s):
Internal Debt Operating ($) Capital ($) Total ($) . Service ($)
˃ Road Network 28,015,410 68,397,620 0 96,413,030
˃ Transport Improvement 49,680,035 15,858,230 28,130,078 93,668,343 Traffic Management and ˃ 22,746,941 2,839,500 0 25,586,441 Safety Parking Facilities and ˃ 12,558,575 3,079,214 0 15,637,789 Regulation
Note: Costs include business as usual funding and new investment.
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Total New Investment 2017-18 $20.7M
Ocean Beaches Strategy 2013-2023
Managing the city's spectacular ocean beaches and their importance to the city's economy and liveability.
Strategy Outcomes
˃ Everyone can enjoy a beach experience ˃ Our beaches are healthy and clean ˃ Our infrastructure is protected from coastal hazards ˃ There is a joint stewardship of the ocean beaches
2017-18 Top Five Key Activities 2017-18 Expense ($) Deliver the Northern Beaches Shoreline Project to increase protection against erosion and major storm ˃ 9,825,341 events by widening the beach and dunes at Surfers Paradise. Deliver the Palm Beach Shoreline Project, including the artificial reef, providing a sustainable solution for ˃ 6,668,808 the ongoing protection of the foreshore at Palm Beach. Increased erosion protection at Narrowneck Reef. This will restore the asset and will result in increased ˃ 1,504,852 sand volumes for the northern beaches. Construct approximately 200m of seawall at Narrowneck from the southern carpark and progress further ˃ 928,000 south towards Higman Street, Surfers Paradise. Currumbin Creek Connecting Arm (Seawall) Renewal, comprising reconstruction of approximately 50m of ˃ 500,000 rock armour that connects to the northern wall at the Currumbin Creek entrance.
Note: Some key activities listed here will also appear as activities contributing towards Gold Coast 2022. RF: Denotes key activities delivered from recurrent sources of funding. Services supporting the Ocean Beaches Strategy 2013-2023
The day to day implementation of this strategy is supported by the following service(s):
Internal Debt Operating ($) Capital ($) Total ($) . Service ($)
˃ Beaches and Waterways 37,963,849 4,909,000 0 42,872,849
˃ Lifeguard Service 9,106,166 127,316 0 9,233,482
Note: Costs include business as usual funding and new investment.
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Total New Investment 2017-18 $7.6M
Solid Waste Strategy 2024
Engaging the city in positive waste behaviours, such as waste avoidance, re-use and recycling to minimise the impact on the environment.
Strategy Outcomes
˃ The city and the community actively practise waste avoidance and other positive waste behaviours ˃ Waste re-use, recycling and resource recovery opportunities are maximised prior to landfill disposal ˃ Our capacity to manage future waste is secured ˃ Solid waste management has minimal negative impact on our environment and public health
2017-18 Top Five Key Activities 2017-18 Expense ($) Construct a facility to assist with treatment of leachate from the City's landfill sites within the sewage ˃ 700,000 treatment network. ˃ Develop a detailed design and construct an engineered landfill liner system at Reedy Creek landfill. 500,000
˃ Implement a commercial food collection service to reduce organic waste disposed at City landfills. 210,000 Develop a detailed concept design incorporating operational and post operational needs for the Stapylton ˃ 125,000 landfill. Perform a market analysis for potential re-use of city generated bio-resource products. The market ˃ 75,000 analysis will inform future planning and investment activities.
Note: Some key activities listed here will also appear as activities contributing towards Gold Coast 2022. RF: Denotes key activities delivered from recurrent sources of funding. Services supporting the Solid Waste Strategy 2024
The day to day implementation of this strategy is supported by the following service(s):
Internal Debt Operating ($) Capital ($) Total ($) . Service ($)
˃ Waste Disposal 33,455,708 5,659,500 12,479,353 51,594,561
˃ Waste Collection 19,145,339 0 0 19,145,339
˃ City Cleaning 15,940,854 0 0 15,940,854
˃ Materials Recycling 8,366,163 0 0 8,366,163
Note: Costs include business as usual funding and new investment.
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2.4 Performance review The performance of the City Operational Plan 2017-18 will be reviewed as follows:
• a quarterly report on the progress of all City Operational Plan activities to Council • an annual report on the outcome against all City Operational Plan activities as part of the City’s Annual Report.
While a comprehensive view of performance will be available, reports will generally be exception based, with a focus on areas of significant or unexpected variation from the City Operational Plan (refer figure 6: Performance Reporting Context).
Figure 6: Performance Reporting Context
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2.5 Legislative compliance
2.5.1 City Operational Plan The Local Government Act 2009, supported by the Local Government Regulation 2012 requires Council to prepare and adopt an annual operational plan for each financial year and assess progress at regular intervals of not more than three (3) months. The Operational Plan must also demonstrate how it will progress the implementation of the Corporate Plan during its period of operation. Council may, by resolution, amend its annual Operational Plan at any time before the end of the financial year.
2.5.2 Risk Management The Local Government Regulation 2012 requires the management of risk to be included in Council’s Annual Operational Plan. Annual operational plan contents s 175 (1) - the annual operational plan for a local government must – (b) state how the local government will – (ii) manage operational risks.
Management of operational risks is achieved by setting strong foundations and corporate processes to improve the performance and culture of risk, work health and safety, security and business continuity management across the organisation. The Enterprise Risk Management Framework has been developed and endorsed by the Executive Leadership Team and sets out the elements to assist the City of Gold Coast to manage risk effectively through the application of processes, procedures, systems, activities, policies, plans, and strategies. The framework has five key objective areas tailored around embedding risk management culture, systems, tools and actions to deliver on the Gold Coast 2022 objectives and priorities. Risk profiles are reviewed on a regular basis, including the identification of emerging issues, new risks, controls and mitigations to deliver on business objectives.
2.5.3 Queensland Plan The Queensland Plan launched on 31 July 2014 by the State Government, provides a 30 year vision for Queensland, where ‘Queensland will be home to vibrant and prosperous communities’ (Queensland Plan Act 2014, Part 1, Sec 3, b (ii), Part 3, Sec 11). Gold Coast 2020 provides support for the Queensland Plan at a local level.
2.5.4 Code of Competitive Conduct A: Estimated activity statement A local government's budget must, for each business activity, contain an estimated activity statement for the activities subject to the Code of Competitive Conduct. Business activities covered within the statement include Building Certification Group, Gold Coast Water, Gold Coast Waste Management Services and Tourist Parks.
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B: Activities to which the Code of Competitive Conduct applies The following activity statements are for the activities subject to the Code of competitive conduct: Building Certification Gold Coast Waste Gold Coast Water Tourist Parks Group Management Services Revenue Budget $’000 For services provided to the Council (6,191,900) (6,637,934) For services provided to external clients (150,700) (522,143,400) (89,614,510) (17,749,820) Community Service Obligations (CSO’s) (273,800) (4,465,110) (3,094,180) 0 Total revenue (424,500) (532,800,410) (99,346,624) (17,749,820) Less: total expenditure 337,004 359,934,443 77,841,660 13,835,344 Surplus before debt and transfers (87,496) (172,865,967) (21,504,964) (3,914,476)
2.5.5 Community Service Obligations (CSOs) The CSO value is determined by Council and represents an activity's costs which would not be incurred if the activity's primary objective was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSOs by the Council. Details of CSOs relevant to activities subject to the Code of Competitive Conduct are presented below:
Activity CSO description Amount $’000
Catchment Management Services Operation of the Catchment Management Unit, which fosters sustainable management of our aquatic, riverine and marine 4,465 ecosystems. Gold Coast Waste Management Includes: 1,994 Services • Disposal cost of solid waste received free of charge at Waste and Recycling Centres and landfills and also at landfills from nominated customers • Collection and disposal of dead animals from public places • Clean Up Australia Day – solid waste collection and disposal • Street and Park bin services
• South Stradbroke Island – waste management services • Waste Management Kerbside Clean Up • CSO – Contributions and Donations • Whole of City Kerbside Collection Program (Biennial). 1,100 Building Certification Group Non chargeable employee costs for time allocated to general public enquiries 274
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2.6 Annual Plan supporting documents for the City Operational Plan Gold Coast Water and Waste Services delivers essential city services. The Gold Coast Water and Gold Coast Waste Management Services Performance Plans can be found in the supporting documents section of the Annual Plan.
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Gold Coast Rollerblaze, Coomera Indoor Sports Centre
City Budget Supporting Documents
Statement of Estimated Financial Position 2016-17 ...... 74 Detailed Rates and Charges ...... 78 Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27 ...... 81 Statement of Financial Position ...... 85 Statement of Cash Flows ...... 87 Statement of Changes in Equity ...... 89 Statement of Reserves 2017-18 ...... 91 Revenue Policy 2017-18 ...... 95 Debt Policy 2017-18...... 108
City Operational Plan Supporting Documents
Annual Performance Plan 2017-18 Gold Coast Water ...... 113 Annual Performance Plan 2017-18 Gold Coast Waste Management Services ...... 127
Glossary ...... 145
Supporting Documents
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Statement of Estimated Financial Position 2016-17
Statement of Estimated Financial Position 2016-17
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Statement of Estimated Financial Position 2016-17 In accordance with Section 205 of the Local Government Regulation 2012, the following statement serves to inform the budget adoption meeting of Council’s financial operations and estimated financial position for 2016-17. A detailed schedule showing the Initial 2016-17 budget and the estimated position as at 30 June 2017 is provided in the following pages.
Council’s Initial 2016-17 budget provided for expenditure of $1,326.6 million and provided the organisation with the resources to achieve the objectives as stated in Council’s adopted Corporate and Operational Plans. The 2016-17 budget anticipated an available surplus of $16.9 million from 2015-16. The final accounts for 2015-16 provided Council with an available surplus of $58.2 million which represented the net result from the total funds carried forward of $155.8 million less funds required for reprovisions and end of year adjustments of $97.6 million. The following table shows how the 2015-16 surplus was accounted for and the resulting uncommitted surplus of $41.3 million carried forward to 2016-17.
Budget Allocation of 2015-16 Surplus Adjustments $ Million
2016-17 Initial Budget (Balanced) 0 Actual 2015-16 Surplus 155.8 2015-16 Carried Forward Revenue 10.8 2015-16 Carried Forward Operating Expenditure (24.8) 2015-16 Carried Forward Capital Expenditure (83.6) Sub-Total 58.2
Anticipated 2015-16 Surplus to underpin 2016-17 Initial Budget (16.9)
Uncommitted Surplus Carried Forward From 2015-16 41.3
Statement of Estimated Financial Position 2016-17
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Council’s performance against the initial 2016-17 budget can be seen as a combination of variances between the initial and revised budgets and variances between the revised budget and actual results at end of year. Budget reviews throughout the year have allowed Council to revise the budget to address significant issues which arose during the year and reserve additional funds of $95.6 million. These changes were accommodated while maintaining a balanced or surplus budget position. Significant changes to budget allocations during 2016-17 were:
Budget Major Budget Amendments 2016-17 Adjustments $ Million Brought Forward Available Surplus from 2015-16 41.3
Increase in budgeted investment income 4.0 Land Acquisition (3.7) Local Government Platform Project (10.0) Increase in Legal Expenses (1.0) Natural Disaster (Flood) Costs (2.8) Capital Projects Reprovided to 2017-18 14.7 Operating Projects Reprovided to 2017-18 17.7
Increase in Development Fees and Charges 4.0 Retention of prepaid rates included in the 2016-17 budget 14.0 Additional tax equivalent payments from favourable variations in the GCWW Business Activity 3.9
Additional net transfers (to) / from reserves, (95.6) including: Infrastructure Charges Reserve (74.8)
Strategic Priorities Reserve (20.1)
• ($23.0m) towards future Light Rail Stage 2 Contributions • $2.9m used for Commonwealth Games Projects
All Other Net Variations. 13.5
2016-17 Revised Surplus Position 0.0
The revised 2016-17 budget has recognised a balanced budget position. The 2017-18 budget is underpinned by and anticipated brought forward surplus from 2016-17 of $16.2 million, in addition to $30.2 million in projects brought forward from 2016-17 to the 2017-18 budget.
Statement of Estimated Financial Position 2016-17
Annual Plan 2017-18 Page 77
SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED) COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST FOR THE PERIOD ENDED 30 JUNE 2017
GOLD COAST GOLD COAST GOLD COAST OTHER CITY OF TOURIST PARKS WASTE MANAGEMENT WATER & SEWERAGE ACTIVITIES GOLD COAST
REVISED BUDGET REVISED BUDGET REVISED BUDGET REVISED BUDGET REVISED BUDGET ($000s) ($000s) ($000s) ($000s) ($000s)
REVENUE RATES & UTILITY CHARGES - (76,562) (468,975) (525,366) (1,070,903) RATES DISCOUNTS & REMISSIONS - 0 0 47,169 47,169 FEES AND CHARGES (17,191) (9,988) (4,293) (74,662) (106,134) INTEREST REVENUE - (654) (9,380) (18,741) (28,775) GAIN/LOSS ON SALE OF ASSETS 0 0 5,000 (703) 4,297 CONTRIBUTION & DONATIONS REVENUE - (845) (95,159) (169,835) (265,839) GRANTS & SUBSIDIES REVENUE - (97) 0 (68,322) (68,418) OTHER REVENUE (580) (43) 0 (20,816) (21,439) TOTAL REVENUE (17,771) (88,188) (572,807) (831,277) (1,510,043)
EXPENSES EMPLOYEE COSTS 647 8,967 45,008 296,754 351,377 MATERIALS AND SERVICES 10,789 68,514 428,381 370,836 878,520 DEPRECIATION & AMORTISATION 1,381 8,906 92,000 168,109 270,396 FINANCE COSTS 0 0 0 46,286 46,286 OTHER EXPENSES 3,612 999 (970) 76,642 80,283 CAPITALISED EXPENSES (764) (3,096) (72,698) (310,564) (387,122) TOTAL EXPENSES 15,665 84,290 491,722 648,063 1,239,740
NET RESULT (2,106) (3,898) (81,085) (183,214) (270,303)
SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED) FORECAST STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 30 JUNE 2017
2017 ESTIMATED BALANCE ($000s)
ASSETS CURRENT ASSETS CASH ASSETS 723,659 CURRENT RECEIVABLES 186,277 INVENTORIES 2,031 PREPAYMENTS 661 CLEARING ACCOUNTS 0 912,628 NON CURRENT ASSETS OTHER FINANCIAL ASSETS 1,150 PROPERTY, PLANT AND EQUIPMENT 13,534,149 ASSETS UNDER CONSTRUCTION 0 13,535,299
TOTAL ASSETS 14,447,926
LIABILITIES CURRENT LIABILITIES CURRENT PAYABLES (86,774) UNEARNED REVENUE (3,645) CURRENT EMPLOYEE BENEFITS (25,415) CURRENT BORROWINGS (71,696) CLEARING ACCOUNTS 0 (187,530) NON CURRENT LIABILITIES NON CURRENT EMPLOYEE BENEFITS (52,434) NON CURRENT BORROWINGS (615,747) (668,181)
TOTAL LIABILITIES (855,711) NET COMMUNITY ASSETS 13,592,215
COMMUNITY EQUITY RETAINED CAPITAL 8,310,180 RESERVES 5,282,035
TOTAL COMMUNITY EQUITY 13,592,215
Statement of Estimated Financial Position 2016-17
Annual Plan 2017-18 Page 78
Detailed Rates and Charges
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 79
Detailed rates and charges The detailed rates and charges are set out in the Revenue Statement, however, a summary of Council’s rates and charges applicable in 2017-18 is provided below:
• Differential General Rates - there are a number of differential general rates and minimum general rates which are set depending on whether properties are residential, commercial/industrial or rural. For all residential property that is utilised as the owner's principal place of residence excluding rural non-Community Title Property (CTP) and horizontal CTP larger than 750m 2, a minimum general rate of $921.80 applies. The applicable differential general rate categories for the properties subject to the $921.80 minimum are 1A, 1B, 1T, 1U and 7A. Just under 42% of these properties are on the minimum general rate. The average general rate payable for category 1A property (principal place of residence non-CTP) is $1,445.70. • Special Rates and Charges - there are also a number of special rates (area and purpose specific) which apply, particularly in relation to provision of safety cameras, promotional activities and local business growth in Broadbeach, Surfers Paradise, Southern Gold Coast and Southport CBD and specific infrastructure and business centre improvement projects. • Separate Rates and Charges – these charges apply consistently across the whole city for City Transport Improvement $126 ($3 increase), Recreational Space $29 (no increase), Open Space Maintenance and Enhancement $41 ($3 increase). The Transitional Volunteer Fire Brigade Separate Charge of $2 (no increase) has also been continued. • Waste Management Utility Charge - a range of charges apply depending on the service provided. A charge of $274.80 applies to a standard 240 litre refuse/re-cycling service. • Water and Sewerage Charges – residential service charges for water and sewerage will be $212.08 and $725.12 respectively which represent a nil increase. Council sets its rates and charges on the following principles which are set out in Council’s Revenue Policy:
• 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, environmental or other corporate objectives stated in Council's Corporate Plan and other adopted policies. • 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. The Local Government Regulation 2012, s169 (6) requires the following disclosure regarding the total increase in rates and utility revenue year on year within Council’s annual budget.
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 80
Total rates and utility charges comparison 2016-17 to 2017-18
Note 1 - Includes all components of Differential General Rate (ie. City Transport, City Place Making, Health Licences, Extractive Industries, Tourism and Economic Diversification).
Note 2 - The Safety Camera Network Special Rate has been discontinued as is now funded through the General Rate.
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 81
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 82
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Accrual Budget and Statement of Income and Expenditure for 2017-18
Note Gold Coast Water Tourist Parks Waste Management Other Council Total Activities
Initial Budget Initial Budget Initial Budget Initial Budget Initial Budget $ $ $ $ $ REVENUE FROM ORDINARY ACTIVITIES Operating Income Rates and Utility Charges 1 492,234,200 0 76,746,000 557,525,226 1,126,505,426 Less: Discounts and Pensioner Remissions 0 0 0 (49,883,949) (49,883,949) 492,234,200 0 76,746,000 507,641,277 1,076,621,477 Fees & Charges 2 3,601,600 17,685,820 11,228,200 65,571,698 98,087,318 Interest 3 9,528,400 0 760,000 15,446,546 25,734,946 Other Revenue 4 0 64,000 44,000 17,838,462 17,946,462 Community Service Obligations 4,465,110 0 3,094,180 (7,559,290) 0 17,595,110 17,749,820 15,126,380 91,297,416 141,768,726 Contributions and Donations 5 0 0 870,110 1,321,306 2,191,416 Operating Grants and Subsidies 6 0 0 0 21,356,805 21,356,805 0 0 870,110 22,678,111 23,548,221
Total Operating Income 509,829,310 17,749,820 92,742,490 621,616,804 1,241,938,424
Capital Income Capital Contributions (Cash) 40,000,000 0 0 40,000,000 80,000,000 Contributed Assets and Infrastructure Offsets 20,000,000 0 0 121,107,759 141,107,759 Other Capital Revenue 7 125,000 0 0 20,547,463 20,672,463 Profit / (Loss) on Sale of Assets 8 (5,000,000) 0 0 (20,584,630) (25,584,630) Total Capital Income 55,125,000 0 0 161,070,592 216,195,592
Total Revenue from Ordinary Activities 564,954,310 17,749,820 92,742,490 782,687,396 1,458,134,016
EXPENSES FROM ORDINARY ACTIVITIES Employee Costs (including statutory oncosts) 47,775,000 656,990 8,394,430 307,850,653 364,677,073 Materials and Services (incl Internal Transactions) 153,095,178 10,484,771 62,843,719 516,146,403 742,570,071 Depreciation and Amortisation 92,000,000 1,650,458 9,753,100 137,767,785 241,171,343 Finance Costs 9 2,796,119 392,907 4,156,766 35,177,138 42,522,930 Other Expenses 10 175,034,449 2,808,586 1,018,625 99,610,779 278,472,439 (Capitalised Expenses) (75,952,000) (3,779,931) (6,079,750) (264,343,183) (350,154,864) Total Expenses from Ordinary Activities 394,748,746 12,213,781 80,086,890 832,209,575 1,319,258,992
Income Tax Equivalents 36,133,255 1,798,072 6,136,069 (44,067,396) 0 Dividends and Returns 96,059,000 1,970,951 7,691,121 (105,721,072) 0
NET RESULT FOR THE YEAR 38,013,309 1,767,016 (1,171,590) 100,266,289 138,875,024
CAPITAL TRANSACTIONS Operating Funding Net Result 38,013,309 1,767,016 (1,171,590) 100,266,289 138,875,024 Transfers to Reserves (17,884,215) (287,825) (3,101,423) (109,435,279) (130,708,742) Transfers from Reserves 0 408,957 2,842,500 141,492,270 144,743,727 Transfers to Infrastructure Charges Reserve (40,000,000) 0 0 (40,000,000) (80,000,000) Transfers From Infrastructure Charges Reserve 600,000 0 0 6,777,588 7,377,588 Loans 0 0 0 0 0 Brought Forward Surplus 850,000 0 0 45,504,779 46,354,779 Available for Capital Allocation (18,420,906) 1,888,148 (1,430,513) 144,605,647 126,642,376
Other Capital Funding Depreciation 92,000,000 1,650,458 9,753,100 137,767,785 241,171,343 Loans 0 3,244,898 4,320,250 33,397,388 40,962,536 Book Value of Assets Traded / Disposed 5,000,000 0 0 33,125,000 38,125,000 Transfers from Other Reserves 0 126,076 1,759,500 54,069,631 55,955,207 Transfers from Infrastructure Charges Reserves 21,773,000 0 0 20,495,569 42,268,569 118,773,000 5,021,432 15,832,850 278,855,373 418,482,655
Total Capital Funding 100,352,094 6,909,580 14,402,337 423,461,020 545,125,031
Allocations of Capital Funding Constructed and Purchased Assets 75,952,000 3,779,931 6,079,750 264,343,183 350,154,864 Loan Redemption 4,400,094 3,129,649 8,322,587 59,117,837 74,970,167 Contributed Assets 20,000,000 0 0 100,000,000 120,000,000 Total Capital Allocations 100,352,094 6,909,580 14,402,337 423,461,020 545,125,031
Budget Surplus / (Deficit) 0 0 0 0 0
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 83
Accrual Budget and Statement of Income and Expenditure for 2017-18 Notes to Accrual Budget and Statement of Income and Expenditure
$ $ 1 Rates and Utility Charges (Gross Levies) 6 Operating Grants and Subsidies General Rates (Incl. Differential Rates) 497,743,390 Financial Assistance Grant 11,236,600 Water Rates 276,211,100 Library Resources 2,098,239 Sewerage 210,304,300 Grants & Subsidies - Other 8,021,966 Waste Service 76,712,200 21,356,805 Transport Separate Charge 33,138,000 Other Separate Rates 18,936,000 7 Capital Grants & Subsidies Special Rates 7,213,275 Federal Grants and Subsidies 15,964,496 Other Rates 6,247,161 State Grants & Subsidies 3,136,667 1,126,505,426 Other Capital Revenue 1,571,300 20,672,463 2 Fees & Charges Building And Development Fees 24,242,395 8 Profit / (Loss) on Sale of Assets Cemetery Fees 1,403,500 Proceeds From Sale 12,540,370 Infringements 18,803,301 Less : Disposal Costs (38,125,000) Licenses And Permits 4,273,695 and Retired Book Value Other Fees And Charges 4,482,927 (25,584,630) Parking Fees 8,559,470 Private Works 420,510 9 Finance Costs Property And Information Fees 4,483,800 Bank Fees and Finance Charges 1,770,500 Refuse Tipping Fees 10,130,200 QTC Book Debt Finance Charges 40,752,430 Tourist Park Fees 17,896,920 42,522,930 Water And Wastewater 3,390,600 98,087,318 10 Other Expenses Bulk Water Purchases 174,727,200 3 Interest Receivable Contributions 55,773,718 Interest on Rate Arrears 3,159,124 External Audit Fees 441,500 Interest Other 22,575,822 Insurance 12,716,662 25,734,946 Other 34,813,359 278,472,439 4 Other Revenue Rental & Lease Revenue 9,143,385 Insurance Claim Recovery 2,248,000 Commission Income 913,500 Canteen Revenue 1,338,380 Sundry Revenue 4,303,197 17,946,462
5 Contributions and Donations Recycling Promotion & Resources 870,110 City Cleaning - Department of Transport 1,316,410 and Main Roads SES Operations 4,896 2,191,416
Accrual Budget and Statement of Income and Expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 84
Accrual Budget and Statement of Income and Expenditure 2018-19 to 2026-27
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000)
OPERATING INCOME Rates and Utility Charges 1,158,298 1,200,787 1,253,792 1,312,074 1,372,723 1,435,850 1,501,530 1,569,853 1,642,206 Less : Discounts & Pensioner Remissions (43,380) (45,332) (47,372) (49,504) (51,731) (54,059) (56,492) (59,034) (61,690) 1,114,918 1,155,455 1,206,420 1,262,570 1,320,992 1,381,791 1,445,038 1,510,819 1,580,516 Fees & Charges 99,959 105,438 111,694 117,260 122,299 127,582 133,120 138,928 145,078 Interest 18,147 16,615 15,540 15,345 15,037 15,258 15,382 14,551 13,325 Other Revenue 67,714 50,342 29,235 20,347 20,962 21,598 22,254 22,932 23,631 185,820 172,395 156,469 152,952 158,298 164,438 170,756 176,411 182,034
Contributions & Donations 1,733 1,790 1,849 1,910 1,973 2,038 2,105 2,174 2,246 Operating Grants & Subsidies 14,748 15,191 15,649 16,123 16,614 17,122 17,648 18,192 18,756 16,481 16,981 17,498 18,033 18,587 19,160 19,753 20,366 21,002
Total Operating Income 1,317,219 1,344,831 1,380,387 1,433,555 1,497,877 1,565,389 1,635,547 1,707,596 1,783,552
Capital Income Capital Contributions 218,736 207,913 200,486 183,893 193,691 193,995 195,826 205,383 196,031 Capital Grants & Subsidies 15,164 15,998 15,452 14,961 15,419 15,908 16,403 16,903 17,405 Total Capital Income 233,900 223,911 215,938 198,854 209,110 209,903 212,229 222,286 213,436
Total Revenue from Ordinary Activities 1,551,119 1,568,742 1,596,325 1,632,409 1,706,987 1,775,292 1,847,776 1,929,882 1,996,988
EXPENSES FROM ORDINARY ACTIVITIES Employee Costs, Materials & Services 949,478 957,094 1,005,576 1,041,965 1,093,323 1,144,318 1,228,635 1,284,176 1,338,684 Depreciation & Amortisation 252,382 264,237 275,330 287,134 293,458 295,535 304,827 314,871 324,634 Borrowing Costs 38,440 36,348 32,970 29,311 25,526 22,313 18,638 15,696 15,763 Total Expenses from Ordinary Activities 1,240,299 1,257,679 1,313,877 1,358,411 1,412,307 1,462,166 1,552,100 1,614,743 1,679,080
NET RESULT FOR THE YEAR 310,820 311,063 282,448 273,998 294,680 313,126 295,676 315,139 317,908
OTHER OPERATING FUNDING Transfers To Reserves (76,127) (84,051) (65,780) (65,204) (62,828) (67,107) (47,105) (48,607) (50,698) Transfers From Reserves 55,324 29,034 26,099 65,490 24,475 23,617 22,022 21,535 20,393 Transfers To Infrastructure Charges Reserve (85,000) (70,000) (60,000) (55,000) (55,000) (55,000) (55,000) (55,000) (55,000) (105,803) (125,016) (99,681) (54,714) (93,353) (98,490) (80,083) (82,072) (85,306)
Available for Capital Allocation 205,017 186,047 182,767 219,284 201,327 214,636 215,593 233,067 232,602
Other Capital Funding Depreciation 252,382 264,237 275,330 287,134 293,458 295,535 304,827 314,871 324,634 Loans 62,041 33,142 25,587 24,741 25,207 14,484 18,782 62,995 63,057 Transfers from Reserves 16,563 5,300 5,073 3,928 36,088 30,215 15,940 36,526 88,546 Transfers from Infrastructure Charges Reserves 128,729 174,884 75,201 60,186 60,532 57,523 52,917 56,413 60,637 459,715 477,563 381,191 375,989 415,285 397,757 392,466 470,805 536,874
Total Capital Funding 664,732 663,610 563,958 595,273 616,612 612,393 608,059 703,872 769,476
Allocations of Capital Funding Constructed and Purchased Assets 465,535 465,268 365,982 385,781 400,534 396,897 396,242 494,757 578,926 Loan Redemption 77,187 80,312 78,916 80,599 77,387 76,501 70,990 58,732 49,519 Contributed Assets 122,010 118,030 119,060 128,893 138,691 138,995 140,826 150,383 141,031 Total Capital Allocations 664,732 663,609 563,959 595,273 616,612 612,393 608,059 703,871 769,476
Budget Surplus / (Deficit) ------
Accrual budget and statement of income and expenditure 2017-18 to 2026-27
Annual Plan 2017-18 Page 85
Statement of Financial Position
Statement of Financial Position
Annual Plan 2017-18 Page 86
Statement of Financial Position
Estimated 2016-17 and budgeted position 2017-18 to 2026-27
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Anticipated Initial Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Result Budget ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) CURRENT ASSETS Cash assets 723,659 621,043 561,391 486,061 484,659 474,336 474,849 511,614 550,373 589,272 628,103 Receivables 186,277 194,491 202,553 210,258 219,759 230,002 240,535 251,502 262,917 274,796 287,379 Inventories 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 Prepayments 661 661 661 661 661 661 661 661 661 661 661
TOTAL CURRENT ASSETS 912,628 818,226 766,636 699,011 707,109 707,030 718,076 765,808 815,982 866,760 918,174
NON-CURRENT ASSETS Receivables 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 Other financial assets 0 0 0 0 0 0 0 0 0 0 0 Property, plant and equipment 13,534,149 13,746,115 14,084,956 14,417,201 14,642,871 14,864,582 15,104,096 15,339,785 15,565,687 15,888,492 16,277,814
TOTAL NON-CURRENT ASSETS 13,535,299 13,747,265 14,086,106 14,418,351 14,644,021 14,865,732 15,105,246 15,340,935 15,566,837 15,889,642 16,278,964
TOTAL ASSETS 14,447,927 14,565,491 14,852,741 15,117,363 15,351,130 15,572,762 15,823,322 16,106,743 16,382,819 16,756,402 17,197,139
CURRENT LIABILITIES Payables 86,774 99,471 91,046 91,776 96,425 99,914 104,839 109,729 117,814 123,140 128,367 Unearned revenue 3,645 3,645 3,645 3,645 3,645 3,645 3,645 3,645 3,645 3,645 3,645 Provisions 25,415 25,415 25,415 25,415 25,415 25,415 25,415 25,415 25,415 25,415 25,415 Interest bearing loans 71,696 77,187 80,312 78,916 80,599 77,387 76,501 70,990 58,732 49,519 55,756
TOTAL CURRENT LIABILITIES 187,530 205,717 200,418 199,752 206,084 206,361 210,400 209,779 205,606 201,719 213,183
NON-CURRENT LIABILITIES Provisions 52,434 52,434 52,434 52,434 52,434 52,434 52,434 52,434 52,434 52,434 52,434 Interest bearing loans 615,747 576,249 557,978 512,204 457,192 404,546 353,252 296,745 256,796 270,272 277,573
TOTAL NON-CURRENT LIABILITIES 668,181 628,683 610,412 564,638 509,626 456,980 405,686 349,179 309,230 322,706 330,007
TOTAL LIABILITIES 855,711 834,400 810,830 764,390 715,710 663,342 616,086 558,958 514,836 524,425 543,190
NET COMMUNITY ASSETS 13,592,216 13,731,091 14,041,912 14,352,973 14,635,421 14,909,420 15,207,236 15,547,785 15,867,983 16,231,976 16,653,948
COMMUNITY EQUITY Retained capital 8,310,180 8,488,691 8,839,001 9,205,230 9,468,270 9,751,670 10,049,617 10,351,989 10,636,440 10,962,445 11,344,229 Reserves 5,282,036 5,242,400 5,202,911 5,147,743 5,167,150 5,157,750 5,154,483 5,165,235 5,176,461 5,165,594 5,101,716
TOTAL COMMUNITY EQUITY 13,592,216 13,731,091 14,041,912 14,352,973 14,635,421 14,909,420 15,204,099 15,517,225 15,812,901 16,128,039 16,445,945
Statement of financial position
Annual Plan 2017-18 Page 87
Statement of Cash Flows
Statement of Cash Flows
Annual Plan 2017-18 Page 88
Statement of Cash Flows
Estimated 2016-17 and Budgeted 2017-18 to 2026-27 Result
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Anticipated Initial Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Result Budget ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
CASH FLOWS FROM OPERATING ACTIVITIES Receipts 1,245,482 1,334,397 1,409,321 1,423,124 1,446,338 1,493,273 1,557,763 1,625,329 1,695,535 1,767,619 1,843,373 Payments (960,255) (1,065,391) (996,342) (992,712) (1,033,897) (1,067,787) (1,113,924) (1,161,740) (1,239,188) (1,294,547) (1,349,219)
Net cash inflow/(outflow) from operating activities 285,227 269,006 412,979 430,412 412,440 425,486 443,838 463,589 456,347 473,073 494,153
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 13,108 12,540 8,049 6,697 5,469 5,830 6,253 4,667 6,340 7,465 6,000 Dividends received 0 0 0 0 0 0 0 0 0 0 0 Acquisition of other financial assets 0 0 0 0 0 0 0 0 0 0 0 Payments for property, plant and equipment (318,024) (350,155) (465,535) (465,268) (365,982) (385,781) (400,534) (396,897) (396,242) (494,757) (578,926)
Net cash inflow/(outflow) from investing activities (304,916) (337,614) (457,486) (458,571) (360,513) (379,951) (394,281) (392,229) (389,902) (487,293) (572,926)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 33,979 40,963 62,041 33,142 25,587 24,741 25,207 14,484 18,782 62,995 63,057 Repayment of borrowings (71,329) (74,970) (77,187) (80,312) (78,916) (80,599) (77,387) (76,501) (70,990) (58,732) (49,519)
Net cash inflow/(outflow) from financing activities (37,350) (34,008) (15,146) (47,170) (53,329) (55,857) (52,180) (62,018) (52,208) 4,264 13,538
NET INCREASE/(DECREASE) IN CASH HELD (57,039) (102,616) (59,653) (75,328) (1,402) (10,323) (2,623) 9,342 14,237 (9,956) (65,234) Cash at beginning of financial year 780,698 723,659 621,043 561,390 486,061 484,659 474,336 471,713 481,054 495,291 485,335 Closing Cash & Deposits Balance 723,659 621,043 561,390 486,061 484,659 474,336 471,713 481,054 495,291 485,335 420,101
Statement of cash flows
Annual Plan 2017-18 Page 89
Statement of Changes in Equity
Statement of Changes in Equity
Annual Plan 2017-18 Page 90
Statement of Changes in Equity
Estimated 2016-17 and budgeted 2017-18 to 2026-27 position
Retained Capital and Asset Total Capital Operating revaluation Community Reserves Reserve Equity ($'000) ($'000) ($'000) ($'000) 2016-17 Anticipated Result Balance at beginning of year 8,142,114 634,127 4,545,542 13,321,783 Change in net assets resulting from operations 270,432 - 1 270,433 Transfer to / (from) reserves (102,366) 102,366 - - Balance at end of the year 8,310,180 736,493 4,545,543 13,592,216
2017-18 Initial Budget
Balance at beginning of year 8,310,180 736,493 4,545,543 13,592,216 Change in net assets resulting from operations 138,875 - 138,875 Transfer to / (from) reserves 39,636 (39,636) - Balance at end of the year 8,488,691 696,857 4,545,543 13,731,091
2018-19 Forecast Balance at beginning of year 8,488,691 696,857 4,545,543 13,731,091 Change in net assets resulting from operations 310,820 - - 310,820 Transfer to / (from) reserves 39,489 (39,489) - - Balance at end of the year 8,839,000 657,368 4,545,543 14,041,911
2019-20 Forecast Balance at beginning of year 8,839,000 657,368 4,545,543 14,041,910 Change in net assets resulting from operations 311,062 - - 311,062 Transfer to / (from) reserves 55,168 (55,168) - - Balance at end of the year 9,205,230 602,200 4,545,543 14,352,972
2020-21 Forecast Balance at beginning of year 9,205,230 602,200 4,545,543 14,352,973 Change in net assets resulting from operations 282,449 - - 282,449 Transfer to / (from) reserves (19,407) 19,407 - - Balance at end of the year 9,468,271 621,608 4,545,543 14,635,421
2021-22 Forecast Balance at beginning of year 9,468,271 621,608 4,545,543 14,635,421 Change in net assets resulting from operations 273,999 - - 273,999 Transfer to / (from) reserves 9,400 (9,400) - - Balance at end of the year 9,751,669 612,208 4,545,543 14,909,420
2022-23 Forecast Balance at beginning of year 9,751,669 612,208 4,545,543 14,909,420 Change in net assets resulting from operations 294,680 - - 294,680 Transfer to / (from) reserves 3,268 (3,268) - - Balance at end of the year 10,049,617 608,940 4,545,543 15,204,100
2023-24 Forecast Balance at beginning of year 10,049,617 608,940 4,545,543 15,204,100 Change in net assets resulting from operations 313,125 - - 313,125 Transfer to / (from) reserves (10,752) 10,752 - - Balance at end of the year 10,351,990 619,693 4,545,543 15,517,225
2024-25 Forecast Balance at beginning of year 10,351,990 619,693 4,545,543 15,517,225 Change in net assets resulting from operations 295,676 - - 295,676 Transfer to / (from) reserves (11,226) 11,226 - - Balance at end of the year 10,636,440 630,919 4,545,543 15,812,901
2025-26 Forecast Balance at beginning of year 10,636,440 630,919 4,545,543 15,812,901 Change in net assets resulting from operations 315,138 - - 315,138 Transfer to / (from) reserves 10,868 (10,868) - - Balance at end of the year 10,962,446 620,051 4,545,543 16,128,039
2026-27 Forecast Balance at beginning of year 10,962,446 620,051 4,545,543 16,128,039 Change in net assets resulting from operations 317,906 - - 317,906 Transfer to / (from) reserves 63,877 (63,877) - - Balance at end of the year 11,344,230 556,174 4,545,543 16,445,946
Statement of Changes in Equity
Annual Plan 2017-18 Page 91
Statement of Reserves 2017-18
Statement of Reserves 2017-18
Annual Plan 2017-18 Page 92
Statement of Reserves 2017-18 This document lists the purpose of each of Council’s reserves and the reserve movements contained in the 2017-18 budget including the estimated opening and closing balances and the transfers to or from each reserve as contained in the budget.
Reserve movements in 2017-18
The following table details the opening and closing reserve balances for the financial year 2017-18 with the associated transfers to and from reserves being contained within Council's initial adopted budget for the financial year.
City of Gold Coast - proposed reserves – 2017-18
BUDGETED Reserve Trf Reserve Trf BUDGETED OPENING BAL IN OUT CLOSING BAL RESERVE 1-7-2017 30-6-2018 $ $ $ $ Capital Projects Reserve Botanical Gardens Reserve 0 0 0 0 Centre Improvement Program Reserve 0 0 0 0 City Transport Improvement Reserve 0 33,138,000 (33,138,000) 0 Commonwealth Games Reserve 63,721,108 10,225,000 (70,790,902) 3,155,206 Community Facilities & Infrastructure Reserve 0 0 0 0 Cultural Precinct Reserve 13,724,714 8,997,000 (9,261,589) 13,460,125 Fleet & Plant Renewal and Purchase Reserve 7,933,233 12,615,971 (9,209,555) 11,339,649 Local Area Works Reserve 0 0 0 0 Open Space Maintenance & Enhancement Reserve 1,569,198 10,768,000 (10,868,478) 1,468,720 Parks & Recreation Reserve 3,153,047 6,312,000 (8,748,977) 716,070 Property Rationalisation Reserve 4,386,358 0 0 4,386,358 Roadworks Acquisition Reserve 95,000 0 0 95,000 Safety Camera and Communication Network Reserve 349,997 0 0 349,997 Strategic Priorities Reserve 38,457,303 700,000 (20,000,000) 19,157,303 Tourist Park Reserve 932,556 287,825 (535,033) 685,348 Waste Management Reserve 23,193,858 3,101,423 (4,033,436) 22,261,845 Water and Sewerage Infrastructure Reserve 155,078,022 17,884,215 0 172,962,237
Total Capital Reserves 312,594,394 104,029,434 (166,585,970) 250,037,858 Self Insurance Reserve Insurance Liability Reserve 289,110 0 0 289,110 Workers Compensation Reserve 11,267,450 0 (94,490) 11,172,960
Total Insurance Reserves 11,556,560 0 (94,490) 11,462,070 Operating Reserve Events Reserve 1,225,250 800,000 (147,000) 1,878,250 Gold Coast Investment Fund Reserve 98,200,952 25,107,088 (33,301,474) 90,006,566 Hope Island Channel Reserve 497,427 200,000 0 697,427 Northern Beaches Sand Nourishment Reserve 0 572,220 (570,000) 2,220
Total Operating Reserves 99,923,629 26,679,308 (34,018,474) 92,584,463
Total Capital & Operating Reserves 424,074,583 130,708,742 (200,698,934) 354,084,391
Statement of Reserves 2017-18
Annual Plan 2017-18 Page 93
Strategic Priority Reserve Details
Infrastructure Charges Reserve
The above reserves have been approved by Council and set aside for specific purposes. In addition, reserves are held for infrastructure charges which are constrained by development conditions etc. Revenue from Infrastructure Charges fluctuates considerably and the figures provided below are estimates only.
BUDGETED Reserve Trf Reserve Trf BUDGETED OPENING BAL IN OUT CLOSING BAL RESERVE 1-7-2017 30-6-2018 $ $ $ $ Infrastructure Charges Reserve Infrastructure Charges Reserve (forecast balances) 312,418,830 80,000,000 (49,646,157) 342,772,673
Total Infrastructure Charges Reserve 312,418,830 80,000,000 (49,646,157) 342,772,673
Purpose of reserve
Council maintains a number of reserves within its operating fund which are excluded from the surplus deficit position. The identification of reserves allows Council to manage future commitments as part of its integrated financial management processes. The purpose of reserves contained in Council’s initial 2017-18 budget is listed below:
Capital projects reserves
Centre Improvements Program Reserve - provision for the capital costs, current and future renewal of completed CIP projects throughout the city.
City Transport Improvement Reserve - provision to address the City’s transport infrastructure and public transport needs and advance negotiations with the State Government to gain additional funding for initiatives under the banner of the City Transport Plan.
Commonwealth Games Reserve - provision for the future funding of contributions to GC2018 and required operational expenditure.
Cultural Precinct Reserve - for the purpose of establishment, maintenance and operation of the Gold Coast Cultural Precinct.
Fleet and Plant Renewal and Purchase Reserve - provision for the future funding of the renewal and purchase of Council’s Fleet and Plant.
Open Space Maintenance and Enhancement Reserve - provision for the acquisition of land and non acquisition purposes directly relevant to open space preservation, access and nature conservation.
Parks and Recreation Reserve - provision for the acquisition of property and non acquisition purposes directly relevant to recreation, including improvements to school lands where those improvements enable community use of school sports facilities.
Property Rationalisation Reserve - provision for the future acquisition of required properties.
Statement of Reserves 2017-18
Annual Plan 2017-18 Page 94
Roadworks Acquisition Reserve - provision for compensation payments to dispossessed land owners as a result of land acquisition for Roadworks.
Safety Camera and Communication Network Reserve - provision for the ongoing operational costs and capital replacement of CCTV camera installed across the City.
Strategic Priorities Reserve - provision for the future funding of priority projects associated with Strategic Priorities as defined in Council’s Corporate Plan.
Tourist Park Reserve - provision for the future funding of assets comprising Council’s tourist parks.
Waste Management Reserve - provision for the future funding of assets comprising Council’s waste management.
Water and Sewerage Infrastructure Reserve - provision for the future funding of water and sewerage infrastructure and renewal
Operating reserves
Events Reserve - for the purpose of acquiring and funding events.
Gold Coast Investment Fund Reserve - to provide funds to maximise investment opportunities for City of Gold Coast.
Hope Island Channel Reserve - Provision for the future funding of the operation and maintenance of the Hope Island Channel for flood mitigation purposes.
Northern Beaches Sand Nourishment Reserve - provision for the future funding of a dredging project to provide for sand replenishment of the northern Gold Coast beaches.
Self-Insurance Reserves
Insurance Liability Reserve
• Provides for insurance claim liabilities prior to establishment of Gold Coast City Council Insurance Co Ltd • (GCCCICL) on 1 July 2007 (i.e. Pre- Captive Insurance Liability ) • Provides for Captive Insurance claim liabilities for Motor Vehicle, Public Liability, Property, Contractor, Councillor and Officers and Professional Indemnity insurances in accordance with retention (excess) arrangements negotiated with GCCCICL. Workers Compensation Reserve
• Provides for self-insurance for workers compensation claims up to $900,000 and for outstanding claims incurred and claims not yet reported. Infrastructure Charges Reserve
Infrastructure Charges Reserve - holds contributions made by developers for the provision of drainage, roadworks, parks, bikeways, street lighting, water, sewerage and other infrastructure assets for the enhancement of Council’s asset base.
Statement of Reserves 2017-18
Annual Plan 2017-18 Page 95
Revenue Policy 2017-18
Revenue Policy 2017-18
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Revenue Policy 2017-18
DETAILS Council Admin Effective from: July 2017 Contact officer: Manager Corporate Finance Next review date: June 2018 File reference: FN334/479/01 iSpot # This policy 23020574 Value Proposition 40175017
OBJECTIVES AND MEASURES
Objectives The objective of this policy is to raise a sufficient revenue base for Council of the City of Gold Coast (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 and asset management plans. Performance Measures 1. That Council’s Revenue Policy and annual budget is adopted in accordance with legislative requirements. 2. That Council’s long term financial model reflects a sustainable long- term outlook based on asset management principles. Risk Assessment Low
POLICY STATEMENT 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.
Council’s Revenue Policy is based on the following principles and such principles also guide the development of Council’s Revenue.
Rates and Charges and Cost-Recovery Fees
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. • Simplicity – to ensure widespread community or stakeholder understanding of a complex system. • Sustainability – revenue decisions support the financial strategies for the delivery of infrastructure and services identified in Council’s long term planning.
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Revenue Policy 2017-18
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); • imposing cost-recovery and other fees; and • funding Council infrastructure.
Rates, fees and charges are to be determined and applied in accordance with Appendix A which forms part of the Revenue Policy.
Concessions and Rebates • Subject to the conditions determined from time to time in Council’s Pensioner Rates Rebate Policy, Council may grant rebates on rates and charges to assist ratepayers who utilise the property as their principal place of residence: a person who holds a current Queensland Repatriation Health Card for All Conditions (issued by the Department of Veteran Affairs); or a person who holds a current Queensland issued Pensioner Concession Card; or a person who: • receives a Widow’s Allowance; and • holds a current Queensland issued Health Care Card; and • was receiving a rates rebate from Council before the death of their spouse, including a de-facto spouse. • Council may grant rebates of rates and charges to assist non-profit community organisations of the classes identified in Council’s Rate Donation, Infrastructure Charge 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 South East Queensland Customer Water and Wastewater Code and subject to the conditions determined from time to time in Council’s Water and Sewage Leakage Relief Policy, Council may grant rebates of water and sewage (wastewater) consumption charges, to relieve ratepayers from some of the unexpected financial burden caused by a concealed underground water leak. • Subject to the conditions determined from time to time in Council’s Water Usage for Genuine Fire Emergencies Policy, Council may grant rebates of water and sewage (wastewater) consumption charges, to relieve ratepayers from the unexpected financial burden caused by usage of water to fight a fire 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) charges, to relieve ratepayers who are renal dialysis patients, from the additional financial burden caused by a need to have dialysis at home.
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Revenue Policy 2017-18
Discount Council reserves the right to provide ratepayers with a prompt payment discount on certain rates and charges under certain conditions as defined in Council's Revenue Statement.
Deferments Council may defer payment of specific rates to assist those pensioners (as defined in Council’s Pensioner Rates Rebate Policy) and Seniors Card holders who are utilising the property as their principal place of residence until their circumstances change or the property ownership changes. Rates available for deferment are: • The differential general rate or part thereof in an ongoing capacity, and/or
• All rates and charges at a point in time where the eligible ratepayers may seek a one-off deferment as the account is being considered for Sale of Land action under the Local Government Regulations.
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.
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.
SCOPE This policy refers to all matters relating to rates, fees, charges, concessions, rates rebates, community service obligations and the recovery of rates and charges.
DEFINITIONS Rates and Charges are levies that a local government imposes on land and for services, facilities or activities that are supplied or undertaken by Council or by someone on behalf of Council (including a garbage collection contractor, for example). There are 4 types of rates and charges as defined in the Local Government Act 2009: • General Rates (including differential rates); and • Special Rates and Charges; and • Utility Charges; and • Separate Rates and Charges
Cost Recovery Fee – is a payment for a service or facility, fixed under the provisions of a Local Government Act.
Council – Council of the City of Gold Coast.
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Revenue Policy 2017-18
Non Cost Recovery Fee – a payment for a service or facility, fixed under the provisions of a Local Government Act, other than a service or facility for which a cost recovery fee may be fixed.
Community Service Obligation – of a commercial business unit of a local government, means the obligations to do anything the local government is satisfied are not in the unit’s commercial interests to perform and arise because of a direction by the local government.
Infrastructure Charge – is a charge for infrastructure provided, and is collected by Council initiating an infrastructure charges notice.
Revenue – means inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity (i.e. capital) during the reporting period.
Full Cost – represents the value of all resources used or consumed by the organisation in the provision of the unit of activity or service.
Pricing - the decision of which price, or prices, to charge service users based on relevant costs imposed at the time and place of use.
RELATED POLICIES AND DELEGATIONS Concession for Water Consumption Charges Due to Renal Dialysis Patients Dialysing at Home Policy Debt Recovery Policy Deferral of Rates Policy Pensioner Rates Rebate Policy Rate Donation, Infrastructure Charges and Development Application Fee Discount Policy Voluntary Conservation Agreement Scheme Policy Water and Sewage Leakage Relief Policy Water Usage for Genuine Fire Emergencies Policy
Gold Coast City Council Local Laws Process for Establishing a Community Service Obligation
LEGISLATION Local Government Act 2009 Local Government Regulation 2012 Sustainable Planning Act 2009 Body Corporate and Community Management Act 1997 Building Units and Group Titles Act 1980 Fire and Emergency Services Act 1990 Registration of Plans (H.S.P. (Nominees) Pty. Limited) Enabling Act 1980 and Registration of Plans (Stage 2) (H.S.P. (Nominees) Pty Limited) Enabling Act 1984 Integrated Resort Development Act 1987 Land Valuation Act 2010 Mixed Use Development Act 1993 Sanctuary Cove Resort Act 1985 South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 South East Queensland Customer Water and Wastewater Code
SUPPORTING DOCUMENTS Revenue Statement and Resolution of Rates and Charges 2017-18 Appendix A – Rates and Charges Appendix B – Process for Establishing a Community Service Obligation
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Revenue Policy 2017-18
RESPONSIBILITIES Sponsor • Chief Operating Officer Policy owner • Manager Corporate Finance
VERSION CONTROL Document Date Approved Amendment
23020574 v18 13.06.17 Council Meeting 13 June 2017 Policy adoption 2017-18 23020574 v17 07.06.16 G16.0607.026 Policy adoption 2016-17 23020574 v16 19.06.15 G15.0619.002 Policy adoption 2015-16 23020574 v15 18.06.14 G14.0618.001 Policy adoption 2014-15 23020574 v14 09.08.13 B13.0621.001 Policy adoption 2013-14. Include references to GCW, remove references to reserves. 23020574 v13 12.06.12 B12.0605.001/G12.0612.032 Policy adoption 2012-13 23020574 v12 20.06.11 G11.0620.030 Policy adoption 2011-12 23020574 v11 07.06.10 GF10.0602.003/G10.0607.014 Policy adoption 2010-11 23020574 v10 01.06.09 GF09.0527.001/G09.0601.016 Policy adoption 2009-10 23020574 v9 11.06.08 GF08.0611.003 Policy adoption 2008-09 23020574 v8 18.06.07 GB07.0618.001/G07.0618.001 Policy adoption 2007-08 23020574 v7 19.06.06 Council Budget Adoption Policy adoption 2006-07 23020574 v6 10.06.05 FI05.0607.002/G05.0610.031 Policy adoption 2005-06 23020574 v5 11.06.04 CD04.0604.007/G04.0611.024 Policy adoption 2004-05 23020574 v4 06.06.03 C03.0530.005/G03.0606.008 Policy adoption 2003-04 23020574 v3 28.06.02 Council Budget Adoption Policy adoption 2002-03 23020574 v2 29.06.01 Council Budget Adoption Policy adoption 2001-02 23020574 v1 Council Budget Adoption Policy adoption 1999-00
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Revenue Policy 2017-18 Appendix A – Rates and Charges
General Rates
Council operates a rating system whereby land is categorised according to rates categories developed by Council for differential rating purposes having regard to such factors as usage made of the land and nature and size of improvements on the property.
Differential general rates for each property will be calculated on the basis of the value of the land as assessed by the Department of Natural Resources and Mines multiplied by the rate in the dollar determined by Council for each rates category. (For clarity the value of the land is either the site value (non-rural land) or the unimproved value (rural land) determined under the Land Valuation Act 2010).
Council may resolve under section 74(3) of the Local Government Regulation 2012 that the value of the land will be the 3-year averaged value of the land calculated under Chapter 4, Part 3 of the Local Government Regulation 2012.
Regardless of the value of the land, there will be a minimum contribution required from each ratepayer towards the overall running of the city except where legislation prevents a minimum being set. This objective is accomplished by the application of minimum general rates.
Separate Rates and Charges
Separate charges will be levied to generate the level of funds required to provide a particular service or activity that the benefit from is shared equally by all parcels of land, regardless of their value. A separate rate will be imposed when Council considers that higher valued parcels of land will receive a greater benefit from the service or activity being funded. In cases where Council believes that all parcels of land will benefit to a particular degree, then a minimum separate rate may be applied to the rate.
Special Rates and Charges
Special rates or charges will be levied to generate the level of funds required to provide a service or activity that Council considers will benefit specific parcels of land or occupiers of parcels of land within the city. A special charge will be applied where Council considers that the owner of each parcel of land should contribute equally or in accordance with the degree of special benefit that Council considers each parcel of land or its occupier will receive. A special rate will be imposed should Council believe that higher valued properties will receive a greater benefit from service or activity being funded. In cases where Council believes that all properties will benefit to a particular degree, then a minimum special rate may be applied.
Utility Charges – Water, Sewerage (Wastewater), Recycled Water, Raw Water and Waste Management Services
In general, Council will be guided by the principle of user pays in the making of charges that relate to the provision of water, sewerage, recycled water, raw water and waste management services. Council will apply this principle in order to minimise the impact of rating on the efficiency of the local economy. Wherever possible, those receiving the benefits of a utility service will pay for what they receive in full through the relevant utility charge. Council will annually review its utility charges and other fees for service to ensure that revenues are meeting intended program goals and are keeping pace with the cost of providing the service.
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Revenue Policy 2017-18 Appendix A – Rates and Charges
Levying of Rates
In making all rates and charges Council will have regard to: a transparency - to inform the community of the basis of those rates and charges and hence Council’s accountability; b creating a rating regime that is cost effective to administer; c flexibility - taking account of changes in the local economy. In levying rates Council will also: • Levy rates and charges as early as practicable in order to generate the maximum investment income and therefore, lessen the quantum of rate increases; • Levy rates and charges (excluding water and sewerage charges) on a half yearly basis; • Levy water and sewerage charges quarterly with access charges in advance and consumption charges in arrears; and ensure that rate notices are as simple to read as possible yet still deliver all the information relevant to the calculation of rates and charges.
Recovery of Rates and Charges
Council will exercise its 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 to meet their 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. Concessions on Rates and Charges
In applying concessions Council will:
• endeavour to assist sectors of the rate-paying community to remain in their homes through such mechanisms as deferments; • acknowledge that sectors of the rate-paying community (e.g. pensioners) have a reduced capacity to pay both on demand and to the full quantum; • acknowledge the contribution of non-profit community organisations based on the level of their community assistance and economic value to the region and the community; • ensure similar treatment for ratepayers with similar circumstances; • make clear the requirements necessary to receive concessions; • make transparent the degree of subsidy or Community Service Obligation when a user charge does not represent full cost recovery; and • be sufficiently flexible to respond to local economic issues.
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Revenue Policy 2017-18 Appendix A – Rates and Charges
In the case of granting concessions to a class of ratepayers under section 119, 120 of the Local Government Regulation 2012, the purpose of the class concession will be stated. Consideration may also be given by Council to granting a class concession in the event all or part of the Council area is declared a natural disaster area by the State Government.
Charges for Local Government Services and Facilities
In setting charges for local government services and facilities, where Council is the sole supplier, prices will be based on the principle of recovering the cost to Council of providing the service or facility. In some circumstances, it may be appropriate to set charges for services below full cost recovery in order to achieve social, economic or environmental goals. In making any such decision the reason for the decision will be clearly set out in the resolution together with the estimated amount of revenue to be foregone in the subject year.
Where the service or facility being supplied is one which is of ‘commercial value’ the charge for ‘competitive services and facilities’ will apply, as described below.
Charges for Competitive Services and Facilities
Council will apply, as a minimum and as far as it is practicable, the principle of full cost recovery in setting charges for services and facilities that might be supplied by other parties, including community or non-profit organisations.
Council may give consideration to charging at less than the full cost of the service/facility when it considers it appropriate to do so in order to achieve social, economic or environmental goals. In making any such decision the reason for the decision will be clearly set out in the resolution, together with the estimated amount of revenue to be foregone in the subject year.
When the service or facility supplied is of a commercial nature, then Council will give consideration to including a ‘profit’ element in the charge. Such consideration will be made on a case by case basis.
Charges for Significant Business Activities
The Local Government Regulation 2012 requires Council to consider the application of competitive neutrality principle to its Significant Business Activities (SBAs) and are defined in S43(4) of the Local Government Act 2009 as follows
(4) A significant business activity is a business activity of a local government that - (a) is conducted in competition, or potential competition, with the private sector (including offstreet parking, quarries, sporting facilities, for example); and (b) meets the threshold prescribed under a regulation.
Achieving competitive neutrality involves the removal of competitive advantages or disadvantages arising from a Local Government’s ownership of an activity.
Council may elect to apply one of two levels of reform through adoption of (a) Full cost pricing; or (b) Commercialisation.
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Revenue Policy 2017-18 Appendix A – Rates and Charges
Each level of reform requires the application of Full Cost Pricing principles and the inclusion of the following costs in pricing: • Operational costs. • Administrative costs and overheads. • Return of capital (depreciation). • Return on capital. • Competitive neutrality adjustments.
Council may decide to identify some activities that are to be provided at less than full cost in order to achieve a social, economic, environmental or other objective. In making any such decision the reason for the decision will be clearly set out in the resolution together with the estimated amount of revenue to be foregone in the subject year. When any such decision is applied to a Commercialised Business Unit, the direction to that Commercialised Business Unit will be recognised as a ‘Community Service Obligation’ and a subsidy shall be paid to that Commercialised Business Unit and that subsidy shall be recognised in the accounts of that Commercialised Business Unit.
Cost Recovery Fees
In setting cost recovery fees Council will recover the cost of providing the service or of taking the action for which the fee is charged. Council may resolve to recover less than the full cost to it where it considers appropriate. In making any such decision the reason for the decision will be clearly set out in the report together with the estimated amount of revenue to be foregone in the subject year. Whilst Council notes that, pursuant to s97 of the Local Government Act 2009 it may introduce a tax component into a regulatory fee in order to achieve a social or other objective, it is not Council’s intention to encompass a tax in any regulatory fee. Accordingly, Council will not recover more than the cost of administering the regulatory regime.
Funding of Council Infrastructure
Council currently funds the provision of economic and social infrastructure assets from a number of sources: • developers’ cash contributions (infrastructure charges); • loans; • grants and subsidies; • general Council revenue.
Council collects infrastructure charges through the Adopted Infrastructure Charges Resolution, for the water, sewerage (wastewater), transport, stormwater and recreation facilities networks. Infrastructure charges are specifically for the purpose of funding the demands of growth – the additional demand that development places on the infrastructure networks. Council recognises that the revenue base and forecast growth are limited. Infrastructure investment decisions must be informed by the, rigorous analysis of demand, whole of life asset management principles and prioritisation. Timing of delivery and standards of service should be regularly tested and challenged.
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Revenue Policy 2017-18 Appendix B – Process for Establishing CSO
Community Service Obligations
This document outlines the process for identification, funding and reporting of community service obligations (CSO).
The Policy applies to the commercialised business units of Waste Management, Gold Coast Water and Tourist Parks and those activities where Council resolves to apply Full Cost Pricing.
Definition
S24 of the Local Government Regulation 2012 defines a community service obligation 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
Each CSO must arise from the application of a clear and explicit Council policy or resolution and be imposed for an identified economic, environmental, social or other benefit.
CSOs must be transparent, fully costed, and funded. Each CSO will be funded from an identified budget to enhance transparency, accountability and inform decision making for Council’s Long Term Financial Plan and annual budget. The budgeted amount will be based on the agreed unit price and the estimated quantity to be provided.
Council may subsidise the operations of commercialised business units or activities to which the Code of Competitive Neutrality applies, in order to achieve social, economic, environmental or other objectives associated with, or incidental to, the delivery of services by those business units or activities.
Council recognises that, where it considers it justified on social, environmental or other non-commercial bases to charge at a rate less than the full cost price of a service the difference between the full cost price and the actual charge will be treated as a CSO.
Types of CSO
The following is a list of examples of CSO. This list is intended as a guide only and does not provide an exhaustive or comprehensive list of CSO. • Delivery of service to final consumers or industry at uniform prices to achieve a Council social, economic, environmental or other policy objective, regardless of variations in the cost of supply; • Delivery at no charge or below the full cost of providing the service (or service levels) to achieve a Council social, economic, environmental or other policy objective. Requirements to grant price concessions to particular groups of customers eg. pensioner discounts. • Requirement imposed on business activities to purchase inputs at levels or prices that differ from purely commercial levels/prices in order to achieve a Council social, economic, environmental or other policy objective. • A requirement to undertake (or not undertake) an activity, which would not otherwise be undertaken (or would otherwise be undertaken) so as to achieve a Council social, economic, environmental or other policy objective.
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Revenue Policy 2017-18 Appendix B – Process for Establishing CSO
The following activities would not be regarded as CSO: • Production of goods or services that a business unit or activity is required to provide as a part of its compliance with normal regulatory obligations that would apply to all commercial business entities whether publicly or privately owned (eg. work place health and safety or environmental compliance). • Requirements imposed as part of competitive neutrality reforms. • Any loss of potential revenue resulting from the business activity being required to eliminate excess profits, cross-subsidies or other forms of price discrimination. • • Short term non-commercial activities that arise from strategic business decisions which are determined to be in the long-term commercial interest of the business entity, including: (i) lowering prices to attract customers and establish, increase or maintain market share or improve capacity utilisation (eg. Customer loyalty programs, early payment discounts, off peak rates); (ii) expenditure on research and development; (iii) expansion or changes in activities to achieve increased diversification; (iv) marketing or other activities to promote brand name recognition; and (v) expenditure that improves corporate image (eg. Sponsorship or voluntary activities).
The costs of certain activities associated with the implementation of major infrastructure projects, which at first glance might appear to be ‘non-commercial’ (eg. town and highway relocation due to dam construction, addressing adverse environmental or social impacts). Such activities are not CSO's and should be regarded as an integral part of the project and form part of the input costs used in assessing the viability of the project.
Process for Establishing CSO
1 Determine the Policy Objective The activity must be imposed to satisfy a clearly defined corporate objective (Corporate Plan or formal Council policy). It is therefore necessary to identify the particular Council policy objective(s) and how the proposed services and benefits would achieve that objective.
2 Propose the CSO The CSO shall be described, including a statement of what it is that the business activity is to be required to do or not to do.
3 Cost the CSO The provision of the CSO should be costed using the full cost pricing methodology. The price of the CSO on an agreed unit price should represent the difference between the full cost price of providing the service and the revenue received, expressed on a per unit basis.
4 Develop performance measures Performance measures shall be developed to measure how effective the CSO is in achieving its objectives and how efficiently it is operated. These will need to be agreed between the areas responsible for the CSO and the activity responsible for its delivery. CSO submissions to City Governance need to be supported by information on the performance of the CSO.
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Revenue Policy 2017-18 Appendix B – Process for Establishing CSO
5 Present to Council The Council will pass a separate resolution imposing the obligation on the commercialised business unit or activity. This will not necessarily be a separate resolution for each CSO, but may be a resolution determining all CSO for the Council. City Governance (in consultation with Organisational Services and the relevant commercialised business unit or activity Director) will analyse the CSO submission and make a recommendation for consideration in the annual budget and the Long Term Financial Plan. Final adoption of CSO lies with Council.
6 Reporting of CSO CSO delivered through business activities should be separately identified in the Council’s financial accounts and reported on in the Annual Report.
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Debt Policy 2017-18
Debt Policy 2017-18
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Debt Policy 2017-18
DETAILS Council Admin Effective from: July 2017 Contact officer: Executive Coordinator, Financial Strategy and Development Next review date: June 2018 File reference: FN334/171/01 iSpot This policy 48273889 # Value Proposition 49314909
OBJECTIVES AND MEASURES
Objectives To outline parameters for borrowing and debt levels within the context of Council of the City of Gold Coast (Council) Long Term Financial Plan (LTFP) and annual budget.
To comply with the Local Government Act 2009 thus ensuring that Council: (a) specifies new borrowings planned for the financial year and the next nine (9) financial years; (b) identifies the purpose of the new borrowings; (c) specifies the time over which it is planned to repay existing and proposed borrowings. Performance measures Net Financial Liabilities ratio for current financial year and the next nine (9) financial years is under the maximum benchmark set by legislation. Risk assessment Low
POLICY STATEMENT
Financial Targets
Consistent with the requirements in the Local Government Act 2009, the Net Financial Liabilities ratio is used as a benchmark for the level of indebtedness:
Ratio Target 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 min max
Net Financial Liabilities 60% 1% 3% 5% 1% -3% -7% -11% -15% -14% -9%
Criteria for Borrowings
Council regularly assesses the long term financial sustainability of all financial decisions by undertaking 10 year financial modelling. Council’s borrowing program will be based on a sustainable financial outlook and will only be undertaken where Council can demonstrate that repayments can comfortably be met.
Borrowings are only available for capital purposes.
When borrowing for infrastructure, the term of the loan shall not exceed the finite life of the related asset.
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Debt Policy 2017-18
Existing and Planned Borrowings
Pursuant to section 192 of the Local Government Regulation 2012 Council’s Borrowing Policy must state the following: 1. the new borrowings planned for the current financial year and the next nine (9) financial years; 2. the period over which it is planned to repay existing and new borrowings.
2016-17 to 2025-26 Loan Program
The following tables show the budgeted loan program, detailed by purpose and loan term.
2017-18 to 2021-22 Loan Program:
2022-23 to 2026-27 Loan Program:
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Debt Policy 2017-18
Existing Debt Pool Account Balances and Loan Repayment Terms
Queensland Treasury Corporation (QTC) is the provider of debt funding to the Council. The table below shows the remaining forecasted term of Council's existing loans held with Queensland Treasury Corporation (estimated as at 30 June 2017).
QTC Debt Pool - Account Balances and Terms for Council's Existing Debt
Debt Pool Account Book Value Estimated Expected Term (Years) Estimated 30/06/2017 30/06/2017 GCCC - 2017 No 1 Loan 274,281 0.25 GCCC - 2018 No 1 Loan 6,112,333 1.00 GCCC - 2019 No 1 Loan 6,581,307 2.00 GCCC - 2019 No 2 Loan 1,184,799 2.00 GCCC - 2019 No 3 Loan 293,830 2.00 GCCC - 2020 No 1 Loan 14,165,514 2.75 GCCC - 2020 No 2 Loan 5,001,449 3.00 GCCC - 2020 No 3 Loan 2,999,515 3.00 GCCC - 2021 No 1 Loan 1,221,794 4.25 GCCC - 2021 No 2 Loan 15,976,284 3.75 GCCC - 2021 No 3 Loan 3,476,061 4.00 GCCC - 2022 No 1 Loan 54,396,666 5.25 GCCC - 2023 No 1 Loan 17,017,852 6.00 GCCC - 2024 No 1 Loan 38,348,363 7.00 GCCC - 2024 No 2 Loan 4,642,730 7.00 GCCC - 2024 No 3 Loan 17,351,555 7.00 GCCC - 2025 No 1 Loan 62,196,407 8.00 GCCC - 2026 No 1 Loan 48,588,028 8.75 GCCC - 2026 No 2 Loan 20,322,500 9.00 GCCC - 2027 No 1 Loan 15,702,621 10.00 GCCC - 2029 No 1 Loan 24,434,966 12.00 GCCC - 2029 No 2 Loan 1,514,409 12.00 GCCC - 2030 No 1 Loan 155,486,025 13.00 GCCC - 2030 No 2 Loan 9,699,198 13.00 GCCC - 2031 No 1 Loan 2,125,673 14.00 GCCC - 2032 No 1 Loan 3,821,000 15.00 GCCC - Water Logan Loan 3,288,930 6.25 GCCC - Rapid Transit No 1 Loan 22,213,320 8.00 GCCC - Rapid Transit No 2 Loan 37,166,841 8.75 GCCC - Rapid Transit No 3 Loan 754,588 12.00 GCCC - Rapid Transit No 4 Loan 1,057,667 13.00 GCCC - Waste Management Loan 22,377,703 12.00 GCCC - Water Transfer Loan 65,820,784 14.75 Total 685,614,992
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Debt Policy 2017-18
SCOPE
Borrowings are those funds which Council obtains from external sources by loans, overdraft or other financial arrangements that impose an obligation for repayment.
DEFINITIONS Terms used in this document:
Council – Council of the City of Gold Coast
RELATED POLICIES AND DELEGATIONS Revenue Policy
LEGISLATION Local Government Act 2009
SUPPORTING DOCUMENTS Not applicable.
RESPONSIBILITIES Sponsor Chief Operating Officer, OCEO Owner Manager, Corporate Finance
VERSION CONTROL Document Date Approved Amendment
31148011 v7 2017-18 31148011 v6 24.06.16 G16.0624.002 2016-17 31148011 v5 19.06.15 G15.0619.002 2015-16 31148011 v4 18.06.14 G14.0618.001 2014-15 31148011 v3 21.06.13 GB13.0621.001 2013-14 31148011 v2 22.06.12 GB12.0622.002 2012-13 31148011 v1 24.06.00 G11.0624.001 2011-12
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Attachment 11
Cover: Enjoying the water facilities at the Broadwater, Southport.
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Contents
1. Purpose ...... 4 1.1 Introduction ...... 4 1.2 Our commitment ...... 4 1.3 Business objectives ...... 4 2. Significant business activity ...... 4 2.1 Nature of activities ...... 4 2.2 Scope of activities ...... 4 2.2.1 Service areas ...... 4 3. Financial and non-financial performance targets ...... 5 4. Community service obligations ...... 5 5. Draft Capital structure and community returns policy ...... 5 6. Proposed major investments ...... 6 7. Outstanding and proposed borrowings ...... 7 8. Customer service charter and standards ...... 7 9. Delegated authorities ...... 7 10. Reporting framework ...... 8 Attachment 1: Key performance indicators ...... 9 Attachment 2: Delegated authorities ...... 11
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1. Purpose
1.1 Introduction Gold Coast Water provides customers with water and sewerage services in the Gold Coast region and operates as a Commercial Business Unit (CBU) with in the Gold Coast Water and Waste directorate in accordance with the Local Government Regulations 2012 and Council Resolution No. G11.1031.026.
A CBU conducts business by adhering to the key principles of commercialisation, namely having:
• clarity of objectives • management autonomy and authority (governance) • accountability for performance • competitive neutrality.
1.2 Our commitment • our aim is to manage our resources for a sustainable future • our job is to provide safe and reliable water, sewerage and waste services to the people of the Gold Coast to protect our community’s health and wellbeing and to care for our waterways and catchment areas that supports our City’s lifestyle and prosperity.
1.3 Business objectives • we ensure zero harm – we ensure the health and safety of ourselves, our environment and our community • we strive for satisfied customers – we provide value for money, innovative, customer focused services • we manage finances responsibly – we balance life-cycle costs and service prices, to sustain our City • we provide reliable services – we plan, build, operate, maintain and renew assets prudently and efficiently.
2. Significant business activity
2.1 Nature of activities In accordance with the South East Queensland Water (Distribution and Retail Restructure) Act, the primary functions of Gold Coast Water are to:
• purchase and distribute water • provide water and sewerage services to customers • charge customers for relevant services • manage customer enquiries, service requests and complaints • perform functions relating to trade waste and seepage water as a sewerage service provider • perform planning and development assessment functions under the Planning Act • anything else likely to complement or enhance a function mentioned above – specifically, analytical laboratory services directly to external customers.
2.2 Scope of activities
2.2.1 Service areas
The City of Gold Coast’s designated water supply and sewerage service area covers all customer properties within the City’s boundary, to include:
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• developed properties within both the urban areas and the park living domains of the city • the sewer area covers developed properties within the urban areas of the city.
The City Plan of the City of Gold Coast defines the urban areas as the built up parts of the city and those locations intended to become part of the built up area.
Standard service areas for water supply and sewerage services are specified in Appendix A of the Appendix A of the Water and Sewerage Customer Service Standards and Charter (Charter).
Connection to water, sewerage or recycled water supply networks is required in accordance with the Network Modifications, Extension and Connections Policy and Procedure.
3. Financial and non-financial performance targets Financial performance targets are included within City of Gold Coast’s Annual Plan. Appendix 1 outlines the key performance indicators and targets which Gold Coast Water will monitor during the 2017-18 financial year.
Each key performance indicator (KPI) is reviewed quarterly as part of quarterly business review process. KPIs are also reviewed on a monthly basis and all indicators are reported annually in the City of Gold Coast’s Annual Report.
4. Community service obligations Section 24 of the Local Government Regulation 2012 defines a Community Service Obligation (CSO) as “an obligation the local Government imposes on a business entity to do something that is not in the commercial interests of the business entity to do”.
A CSO is treated as an expense for the activity of an amount equivalent to the cost of carrying out the obligation less any revenue arising from carrying out the activity.
Gold Coast Water has one endorsed CSO for the 2017-18 financial year as outlined below.
Activity CSO description Amount Catchment Management Unit This activity protects community health within $4,465,110 recreational waters by monitoring the state of the City's waterways and primary contact recreation areas.
5. Capital structure and community returns policy Gold Coast Water has been declared a monopoly business activity and is subject to periodic oversight by the Queensland Competition Authority (QCA), at the direction of the relevant Minister.
As a commercialised business unit, Gold Coast Water is guided by the Gold Coast Water and Waste Capital Structure and Community Returns Policy. The objectives of this policy are to:
• enable ‘ring fenced’ accountability for financial management of the business in line with regulatory requirements • set the financial parameters, including the capital structure and cost of capital within which Gold Coast Water operates as a commercial business • provide an appropriate rate of return to the community for investments (equivalent to an appropriate Weighted Average Cost of Capital) • assist in providing long term financial sustainability to Gold Coast Water and Council by specifying the framework for returns to the community.
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All retained surpluses and special dividend payments will also be in accordance with this policy. To satisfy requirements under the National Competition Policy, Gold Coast Water provides additional payments to Council in the form of tax equivalents and interest margin, to neutralise any concerns of competitive activity.
6. Proposed major investments Gold Coast Water has procurement authority that operates under the Strategic Contracting Procedures of the Local Government Regulation 2012 [chapter 6 part 2]. For further detail on principles regarding procurement activities, see the Procurement Policy and Contract Manual.
The following table summarises major investments proposed for 2017-18. A full list of Water and Sewerage Service’s 2017-18 strategic contracting activities can be found in the City Contracting Plan 2017-18.
Project description 2017-18 Base estimate expenses
Progress the development of the Long Term Recycled Water Release Plan (Stage $22,800,000 1) including upgrade of infrastructure to support the growth of the city and the protection of the surrounding environment Construction of a sewer rising main in the Benowa Re-pump Facility $5,522,000
Emergency storage augmentations for sewerage pump stations across the city to $3,100,000 provide emergency storage in situations such as power and pump failure
A program for prioritised hydrant and associated valve replacement, as identified $2,500,000 from the ongoing condition assessment programs
Refurbishment of sludge digester and heaters at Elanora Sewage Treatment Plant $1,350,000
Design and construction of new district metered area's (DMA), as part of a city wide $1,125,000 leakage reduction strategy
Refurbish existing process tanks at Elanora and Coombabah Sewage Treatment $1,000,000 Plants Commence preliminary work of upgrade of Coombabah Sewage Treatment Plant to $1,000,000 provide additional treatment capacity to cater for growth and meet licence requirements Commonwealth Games 2018 projects
Upgrade the recycled water infrastructure in the Carrara sports precinct $100,000
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7. Outstanding and proposed borrowings The projected debt structure for 2017-18 is provided below:
Loan type Opening balance Principal repayment Closing balance 1 July 2017 30 June 2018 Community Loans (Internal) $1,137,000,000 NIL $1,137,000,000 Loans (External) $59,422,733 ($4,400,094) $55,022,639
Total $1,196,422,733 ($4,400,094) $1,192,022,639
There are no new external borrowings proposed for 2017-18.
8. Customer service charter and standards Council’s Water and Sewerage Customer Service Standards and Charter (Charter) informs customers of the service they can expect to receive from Gold Coast Water and the obligations of customers in relation to their use of the water and sewerage systems.
Key commitments within the Charter include:
• providing customers with a continuous supply of clean drinking water at an adequate pressure and flow rate for reasonable household and business needs • collecting, treating and disposing of sewage in accordance with environmental obligations • maintaining and renewing systems of pipes, to ensure customers continue to receive a reliable water and sewerage service • working with customers and the wider community to minimise the impact of planned works and unplanned interruptions • responding to customer requests for service in a timely manner. See a full copy of Water and Sewerage Customer Service Standards and Charter.
9. Delegated authorities Water and Sewerage Service’s delegated authorities are in accordance with the Local Government Act 2009 (Section 257) and the South-East Queensland Water (Distribution and Retail Restructuring) Act 2009. Delegated authorities for specific staff are set out in Council’s Register of Delegations, held by the Office of the Chief Executive Officer (CEO). The delegations are given to the Director Gold Coast Water and Waste from the CEO to exercise autonomy in Gold Coast Water and Waste’s commercial activities and are noted in Appendix 2 (Delegated authorities).
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10. Reporting framework Water and Sewerage Service’s performance is reported via a number of mechanisms as outlined in the following reporting framework.
Figure 1: Gold Coast Water reporting framework
Framework Performance reports
• Environmental Protection Act 1994 and • Annual Drinking Water Quality Report regulations (QLD) • Australian Bureau of Statistics • Local Government Act 2009 and regulations 2012 • DEWS Performance Indicators (QLD) • Environmental Annual Report and Licence • South-East Queensland Water (Distribution and Returns (for ERA) retail restructuring) Act 2009 and regulations • National Performance Report for Urban Water (QLD) Utilities (for BoM) • Water Act 2000 and regulations (Cth) • National Water Account • Water Supply (Safety and Reliability) Act 2008 and • Queensland Urban Potable Water and Sewerage regulations (QLD) Benchmarking Report (provided to Qldwater) • Recycled Water Reports (quarterly/annually)
external external
• Annual Plan (including City Budget and City • Annual Report Operational Plan) • Compliance Report (report currently being developed) • City Plan • Corporate Scorecard (service ratings against monthly • Corporate Policies key performance indicators (KPIs) and financial • Corporate Strategies targets • Customer Management Framework • Financial Performance Reports (monthly / end of • Customer Service Charter and Standards year) • Gold Coast 2022 (Corporate Plan) • Gold Coast Water and Waste Committee Reports. • Long Term Financial Forecast (See Committee papers) • Management Plans • Operational Plan Progress Report (progress of • Total Asset Management Plans initiatives implemented under the Annual Plan. Includes portfolio delivery plans) • Organisational Improvement Committee Report (providing activities for management review, achievement performances with customers, compliance, reporting and risk, quality, environment and training) • State of the Organisation Report • Water Supplied Report (monthly) internal internal
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Attachment 1: Key performance indicators All key performance indicators are reviewed at least quarterly as part of the quarterly business performance reports.
External indicator Annual Industry Key performance indicators KPI No. reference (if any) target average We ensure zero harm QG 4.10 (DEWS) Water quality complaints (number per 1000 properties) KPI009 < 3 1.68 C9 (NPR)
Sewer overflows reported to the regulator (>10,000L spills per 100km of main) KPI004 E13 (NPR) 0 0.5
Number of Lost Time Injuries KPI017 < 9 N/A
Number of zones microbiological compliance achieved KPI199 H2 (NPR) 18 (100%) 99.9%
Number of zones chemical compliance achieved KPI200 H4 (NPR) 18 (100%) 97.2%
Compliance with drinking water management plan KPI005 Yes N/A
Sewage treatment plant compliance (greater than 99.5% of the time) KPI003 E4 (NPR) 100% N/A
We strive for satisfied customers
Total water and sewerage complaints to include water quality, water service and sewerage QG4.11 (DEWS) KPI061 < 6 3.7 service: (number per 1000 properties) C13 (NPR)
Percentage of priority one response time is achieved for water incidents (% of priority one jobs responded to within two hours) KPI058 QG4.8 (DEWS) 100% N/A
Percentage of priority one response time is achieved for sewerage incidents (% of priority one KPI059 QG4.9 (DEWS) 100% N/A jobs responded to within two hours)
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External indicator Annual Industry Key performance indicators KPI No. reference (if any) target average
We strive for satisfied customers cont.
Percentage of calls answered by an operator within 30 seconds (%) KPI130 C14 (NPR) >80% 75.9%
Percentage of customer satisfaction KPI016 >90% N/A
Percentage of Energy Water Ombudsman Queensland requests responded to within 20 KPI015 100% N/A business days
Percentage of matters directed to the Ombudsman that are resolved in Council’s favour KPI383 100% N/A
We manage finances responsibly
Water system losses (litres/connection/day) KPI120 A10 (NPR) <77 N/A
Percentage of initial capital works program budget delivered KPI019 Within 10% N/A
Percentage of initial controllable expenditure budget spent KPI021 Within 5% N/A
We deliver reliable services QG 4.6 (DEWS) Sewerage mains breaks and chokes (per 100km sewer main) KPI002 <15 31.5 A14 (NPR)
Average duration of unplanned interruption – water (minutes) KPI007 C15 (NPR) <130 126
QG 4.7 (DEWS) Incidence of unplanned interruptions – water (per 1000 properties) KPI008 <100 148.5 C17 (NPR) QG 4.5 (DEWS) Total water main breaks per 100km of main – water KPI010 <15 21.6 A8 (NPR)
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Attachment 2: Delegated authorities DE01565: To exercise the powers and functions of the Council to: a. Commence, conduct and resolve; i. Appeals in the Planning and Environment Court, Court of Appeal and Building and Development Tribunal or Building and Development Committees; ii. Proceedings in the Planning and Environment Court for enforcement orders (including interim enforcement orders) and declarations; iii. Proceedings in the Magistrates Court in respect of offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009; b. Advise the divisional councillor of the proceedings. • DE01566: To exercise the powers and functions of the Council to: a. issuing show cause notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009 b. issuing enforcement notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009 c. issuing informal enforcement. DE01870: To exercise each and every power and function of Council in respect of the Water Act 2000. DE01871: To exercise each and every power and function of Council as a service provider in respect of the Water Supply (Safety and Reliability) Act 2008. DE01872: To exercise power as administering authority (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995), to approve (or refuse where the conditions in this section have not been complied with) an application for payment of a fine by instalment. DE01873: To exercise power as administering authority (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995), to submit particulars required for registration of approval of instalment payments with the State Penalties Enforcement Registry. DE01874: To exercise power as administering authority (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995), to withdraw an infringement notice. DE0187 To exercise power as administering authority (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995), to give the State Penalties Enforcement Registry a default certificate for registration in respect of any recipient of an infringement notice who has not taken action within the time period provided by the infringement notice. DE01876: To exercise power as administering authority (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995), to: (a) commence proceedings against an applicant for an offence; or (b) accept payment of the fine in full; or (c) issue a fresh infringement notice where the registrar has cancelled an enforcement notice and referred the matter back to Council. DE01877: To exercise power to approve forms for use as infringement notices (for the Water Act 2000, Water Supply (Safety and Reliability) Act 2008 and Transport Operations (Road Use Management) Act 1995). DE01879: To exercise the following powers and functions of Council in respect of the Environmental Protection Act 1994 - Sections - s73D, s73F, S73HA, s73HC, s73J, s73O, s73Q. DE01913: To do anything necessary or convenient for performing the responsibilities of Council under the Local Government Act 2009 encompassing the power to enter into contracts for (1) the supply of Recycled Water in compliance with the terms of Permits issued pursuant to the Environmental Protection Act 1998 and in particular but not restricted to, Attachment 1 and 2 of the supply of potable water in compliance with Regulator direction pursuant to the Water Supply (Safety and Reliability) Act 2008 and as particularised but not restricted to Attachment 2.
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DE02012: To determine requests for relief from water consumption and/or volumetric charges for water used in a genuine fire emergency pursuant to Council’s “Water Usage for Genuine Fire Emergencies Policy”. DE2014: To approve or reject a written request from a body corporate to establish a billing arrangement and to sign the appropriate Body Corporate Water Charges Agreement pursuant to Council’s water sub-metering and billing arrangements for Community Titles Schemes Policy. DE02043: To execute documents pertaining to those areas of responsibility that falls within Gold Coast Water, on behalf of Council. DE2108: To (a) Apply to the administering authority for an environmental authority to carry out environmentally relevant activities on behalf of the City of Gold Coast pursuant to s.116 of the Environmental Protection Act 1994 and to apply to the administering authority for an amendment of such environmental authority pursuant to s.224 of the Environmental Protection Act 1994 and (b) Do all things necessary to administer environmental authorities issued by the administering authority.
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Cover: Encouraging our community to recycle at the Botanic Gardens, Ashmore.
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Contents
1. Purpose ...... 4 1.1 Introduction ...... 4 1.2 Our commitment ...... 4 1.3 Business objectives ...... 4 2. Significant business activity ...... 4 2.1 Nature of activities ...... 4 2.2 Scope of activities ...... 4 2.2.1 Service areas ...... 4 2.2.2 Waste collections services ...... 5 2.2.3 Accepted wastes ...... 5 2.2.4 Waste facility operations ...... 5 3. Financial and non-financial performance targets ...... 5 4. Community service obligations ...... 5 5. Draft Capital Structure and Community Returns Policy ...... 6 6. Proposed major investments ...... 6 7. Outstanding and proposed borrowings ...... 7 8. Customer service standards ...... 7 9. Delegated authorities ...... 7 10. Reporting framework ...... 8 Attachment 1: Controlled waste collection areas ...... 9 Attachment 2: Current waste and recycling centre network ...... 14 Attachment 3: Key performance indicators ...... 15 Attachment 4: Delegated authorities ...... 16
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1. Purpose
1.1 Introduction Gold Coast Waste Management Services provides customers with solid waste collection and management services in the Gold Coast region and operates as a Commercial Business Unit (CBU) with in the Gold Coast Water and Waste directorate in accordance with the Local Government Regulations 2012 and Council Resolution No. G97.1110.010.
The CBU was established in accordance with Council resolution G97.1110.010 and conducts business by adhering to the key principles of commercialisation, namely having:
• clarity of objectives • management autonomy and authority (governance) • accountability for performance • competitive neutrality.
1.2 Our commitment • our aim is to manage our resources for a sustainable future • our job is to provide safe and reliable water, sewerage and waste services to the people of the Gold Coast to protect our community’s health and wellbeing and to care for our waterways and catchment areas that supports our City’s lifestyle and prosperity.
1.3 Business objectives • we ensure zero harm – we ensure the health and safety of ourselves, our environment and our community • we strive for satisfied customers – we provide value for money, innovative, customer focused services • we manage finances responsibly – we balance life-cycle costs and service prices, to sustain our City • we provide reliable services – we plan, build, operate, maintain and renew assets prudently and efficiently.
2. Significant business activity
2.1 Nature of activities In accordance with the Waste Reduction and Recycling Act 2011, the primary functions of Gold Coast Waste Management Services are to:
• promote waste avoidance and reduction, and resource recovery and efficiency actions • reduce the consumption of natural resources and minimise the disposal of waste by encouraging waste avoidance and the recovery, re-use and recycling of waste • minimise the overall impact of waste generation and disposal • ensure a shared responsibility between government, business and industry and the community in waste management resource recovery • support and implement national frameworks, objectives and priorities for waste management and resource recovery.
2.2 Scope of activities
2.2.1 Service areas
The City of Gold Coast’s designated Waste Collection Service Area covers all residential properties within the City’s boundary plus non-residential properties within the following waste precincts:
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• Main Beach / Surfers Paradise / Broadbeach • Burleigh Heads Central • Coolangatta Central • Coomera.
The boundary maps for the non-residential waste precincts have been included in Appendix 1. Through these precincts, Council has the ability to levy mandatory waste collection charges on all premises within these areas.
2.2.2 Waste collections services
The City provides residential collection services on a weekly basis for general waste and fortnightly for recycled waste.
Additional services include:
• green waste bin collections • commercial waste management services • annual city-wide kerbside clean-ups for residents.
2.2.3 Accepted wastes
Managed services include: solid wastes, unwanted or discarded solid material generated by domestic, commercial and industrial premises, or construction and demolition activities. These services exclude liquid waste, sewage, sludge, or products from hazardous or toxic waste treatment. Some limited regulated wastes are currently accepted at designated centres under controls imposed by the relevant environmental authorities. These include asbestos, tyres and treated clinical waste.
2.2.4 Waste facility operations Waste facilities manage solid waste and recyclables delivered to the City’s 12 Waste and Recycling Centres and two active landfills at Reedy Creek and Stapylton. A map of the current waste facility network is included in Appendix 2.
3. Financial and non-financial performance targets Financial performance targets are included within City of Gold Coast’s Annual Plan. Appendix 3 outlines the key performance indicators and targets which Gold Coast Waste Management Services will monitor during the 2017- 18 financial year.
Each key performance indicator (KPI) is reviewed quarterly as part of the quarterly business review process. KPI’s are also reviewed on a monthly basis and all indicators are reported annually in the City of Gold Coast’s Annual Report.
4. Community service obligations Section 24 of the Local Government Regulation 2012 defines a Community Service Obligation (CSO) as ‘an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do.’
A CSO is treated as revenue for the activity of an amount equivalent to the cost of carrying out the obligation less any revenue arising from carrying out the activity.
Gold Coast Waste Management Services has seven endorsed CSOs for the 2017-18 financial year as outlined below:
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Activity CSO Description Amount
Kerbside Collection Biennial kerbside collection program for eligible dwellings $1,066,000 within the waste collection areas.
Refuse Charge Donations Free of charge refuse costs provided to the public $545,375
Street and Park Bin Services Disposal of solid waste from waste bins at nominated City $494,000 parks, streets, boat ramps and public places.
Free Tipping Donations Free of charge refuse costs provided to a range of $473,250 approved charities and organisations
South Stradbroke Island Waste Waste management services provided to South $436,340 Disposal (Net) Stradbroke Island.
Carcass Collection Collection and disposal of dead animals from roads, $60,000 reserves and foreshores.
Clean-up Australia Day Provision of solid waste collection and disposal services $19,215 and administrative support for Clean-up Australia Day.
5. Draft Capital Structure and Community Returns Policy As a commercialised business unit, Gold Coast Waste Management Services is guided by the Draft Gold Coast Waste Management Services Capital Structure and Community Returns Policy. The objectives of this policy are to:
• enable ‘ring fenced’ accountability for financial management of the business in line with regulatory requirements • set the financial parameters, including the capital structure and cost of capital within which Gold Coast Waste Management Services operates as a commercial business • provide an appropriate rate of return to the community for investments (equivalent to an appropriate Weighted Average Cost of Capital) • assist in providing long term financial sustainability to Gold Coast Waste Management Services by specifying the framework for returns to the community.
All retained surpluses and special dividend payments will also be in accordance with this policy. To satisfy requirements under the National Competition Policy, Gold Coast Waste Management Services provides additional payments to Council in the form of tax equivalents and interest margins to neutralise any competitive concerns with community and stakeholders.
6. Proposed major investments Gold Coast Waste Management Services has procurement authority that operates under the Strategic Contracting Procedures of the Local Government Regulation 2012 [chapter 6 part 2]. For further details on the principles regarding procurement activities, see the Procurement Policy and Contract Manual.
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The following table summarises key major investments proposed for 2017-18. A full list of Waste Management Service’s 2017-18 strategic contracting activities can be found in City Contracting Plan 2017-18.
Project description 2017-18 Base estimate expenses
Construct a facility to assist with treatment of leachate from the City’s landfill sites $700,000 within the sewerage treatment network.
Develop a detailed design and construct an engineered landfill liner system at Reedy $500,000 Creek landfill.
Implement a commercial food collection service to reduce organic waste disposed at $210,000 City landfills.
Develop a detailed concept design incorporating operational and post operational $125,000 needs for the Stapylton landfill.
Perform a market analysis for potential re-use of city generated bio-resource $75,000 products. The market analysis will inform future planning and investment activities.
7. Outstanding and proposed borrowings The projected debt structure for 2017-18 is provided below:
Loan type Opening balance Principal New Closing balance 1 July 2017 repayment borrowings 30 June 2018 Loans (external) $86,562,655 ($8,745,247) $3,700,000 $81,517,408
Proposed new external borrowings for 2017-18 are forecast at $3,700,000.
The loan program planned for the 2017-18 financial year is to be adopted as part of Council’s formal budget process. The City will manage the borrowing arrangements through Queensland Treasury Corporation (QTC) as well as budgets for the interest and redemption at an individual account level for Gold Coast Waste Management Services.
8. Customer service standards Gold Coast Waste Management Services strive for customer satisfaction through the provision of quality services. Customers can access information on all waste service offerings online, via the Customer Contact Centre on 1300 GOLDCOAST (1300 465 326) or in person at one of our Customer Service Centres.
9. Delegated authorities Gold Coast Waste Management Services delegated authorities are in accordance with the Local Government Act 2009 (section 257). Delegated authorities for specific staff are set out in Council’s Register of Delegations, held by the Office of the Chief Executive Officer (CEO). The delegations are given to the Director Gold Coast Water and Waste from the CEO to exercise autonomy in Gold Coast Water and Waste’s commercial activities and are noted in Appendix 4 (Delegated authorities).
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10. Reporting framework Gold Coast Waste Management Services performance reporting is via a number of mechanisms.
Figure 1: Gold Coast Waste Management Services reporting framework
Framework Performance reports
• Environmental Protection Act 1994 and regulations • ERA (Environment Relevant Activities) (QLD) Environment Report and Licence Returns • Local Government Act 2009 and regulations 2012 (annually) (QLD) • National Performance Indicator Greenhouse Gas • National Environment Protection (National Pollutant Emissions Report (annually) Inventory) measure 1998 (Cth) • Petroleum and Gas Safety Report (annually) • Petroleum and Gas (Production and Safety) Act • Queensland Waste Data System (QWDS) Report 2004 and regulations (QLD) • Waste and Recycling Activities Report (annually) • Waste Reduction and Recycling Act 2011 and to EHP (Department of Environmental and regulations (QLD) Heritage Protection) • Waste Disposal and Resource Recovery statistics
(quarterly)
external external
• Annual Plan (including City Budget and City • Annual Report Operational Plan) City Plan • Compliance Report (report currently being developed) • Corporate Policies • Corporate Scorecard (service ratings against monthly • Corporate Strategies key performance indicators (KPIs) and financial • Customer Management Framework targets • Customer Service Charter and Standards • Financial Performance Reports (monthly / end of • Gold Coast 2022 (Corporate Plan) year) • Long Term Financial Forecast • Gold Coast Water and Waste Committee Reports. • Management Plans (See Committee papers) • Total Asset Management Plans • Operational Plan Progress Report (progress of initiatives implemented under the Annual Plan. Includes portfolio delivery plans) • Organisational Improvement Committee Report (providing activities for management review, achievement performances with customers, compliance, reporting and risk, quality, environment and training) • State of the Organisation Report
internal internal
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Attachment 1: Controlled waste collection areas
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Attachment 2: Current waste and recycling centre network
Key community waste and recycling centres
landfills
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Attachment 3: Key performance indicators All key performance indicators are reviewed at least quarterly as part of the quarterly business performance reports.
Annual target Key performance indicators KPI No. Industry average reference (if any) We ensure zero harm Number of Lost Time Injuries KPI001 <8 N/A
Landfill gas capture efficiency (%) KPI002 >20% N/A
Number of reportable environmental incidents to the regulator KPI003 <5 N/A
Compliance with environmental licences (greater than 99.5% of the time) KPI004 100% N/A We strive for satisfied customers Valid litter, odour, dust and noise complaints (number per 1000 households) KPI005 <0.5 N/A
Percentage of customer satisfaction KPI006 >90% N/A
We manage finances responsibly Percentage of initial capital works program delivered KPI007 Within 10% N/A Percentage of initial controllable expenditure spent (includes all operating expenses except waste KPI008 Within 5% N/A collection payments) We deliver reliable services
Percentage of total waste recycled or recovered KPI009 >43.75% 43.5%
Percentage of missed collections from total services KPI010 <0.08% N/A
Number of days landfill or waste and recycling centre closures occurred during normal operational hours KPI011 <12 N/A
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Attachment 4: Delegated authorities DE00585: To determine applications to waive licence registration, application and / or permit fees for charitable organisations. DE01407: To decide information as confidential to the Council, to accept information under conditions of confidentiality and to make accessible or disclose information that is confidential. DE01565: To exercise the powers and functions of the Council to: a. Commence, conduct and resolve; i. Appeals in the Planning and Environment Court, Court of Appeal and Building and Development Tribunal or Building and Development Committees; ii. Proceedings in the Planning and Environment Court for enforcement orders (including interim enforcement orders) and declarations; iii. Proceedings in the Magistrates Court in respect of offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009; b. Advise the divisional councillor of the proceedings. • DE01566: To exercise the powers and functions of the Council to: a. issuing show cause notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009 b. issuing enforcement notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009 c. issuing informal enforcement. DE01649: To deal with matters (i.e. approve financial assistance with the cost of cleaning residents' property detrimentally impacted by operations & remediation works) identified in the Cleaning Cost - Home Owner Assistance Payments report on a one off (ex-gratia) basis. DE02102: To waive the establishment fee for a 360L recycling bin service during promotional periods and whilst undertaking recycling improvement trials.
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Glossary
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Glossary
Glossary Term Definition Activity The things that are done by defined individuals or branches - or to, for, or with individuals or groups - as part of the provision of City services. Advocacy Advancing the interests of the City through pro-active representation, strong partnerships and effective collaboration with others locally, nationally and internationally. Annual Budget The City's annual budget identifies the planned expenditure and revenue approved by Council for a financial year. This includes any specific activities identified as a priority under the Operational Plan. Annual Report The City of Gold Coast’s Annual Report provides a detailed account of the progress made on the implementation of the City Vision, Corporate and Operational Plans and the financial performance of the City during the previous year. Asset An item that has potential or actual value to an organisation. Asset Management A systematic approach to manage assets through all lifecycle phases. This involves applying a combination of engineering, financial and other technical practices to the management of infrastructure; costs; opportunities; risks; and performance. Asset Management Plan (AMP) A long-term plan (minimum of 10 years) that: is focussed on the sustainable management of the City’s infrastructure assets; state the estimated capital expenditure for infrastructure renewal and new/upgrade for the period covered by the plan; and are consistent with the long-term financial forecast. Audit An examination of the records, statements, systems, and procedures of an organisation together with its stated claims for performance. Capital Expenditure (CAPEX) Represents expenditure on a capital project which is ‘capitalised’ into Council’s Asset Register. It should be noted that expenditure can occur under a capital budget that may be deemed operating in nature and not capitalised. (Note: CAPEX is a term used in non-corporate documents to describe Capital Expenditure). Capital Works Program Council’s major works program assigned to ‘capital’ budgets. It should be noted that not all expenditure within Council’s Capital Works Program is capitalised. City City refers to Council of the City of Gold Coast. City Plan The Planning Scheme is a legal instrument that guides the growth and development of the City of Gold Coast (City). It sets out the preferred land use of every Gold Coast property and identifies what natural areas should be protected, where shops, industrial estates and public spaces etc. should be located, and sets standards and criteria for buildings. It is regularly reviewed and amended in accordance with State legislation relevant at the time. The City Plan is the Gold Coast’s Planning Scheme. City Vision A statement that articulates direction and guides the City's future. Commercial/ised Business Unit A commercial business unit in the context of Local Government (Local Government Act 2009) is one that conducts business in accordance with the key principles of commercialisation, such as clarity of objectives; robust management and governance; accountability and competitive neutrality in order to maximise benefits to its’ customers. Community The people living, working and visiting the Gold Coast e.g. residents, ratepayers, business investors and visitors. Community Engagement Community engagement is interaction between the City and any section of the community either individually or as a group and includes information sharing, consultation and/or active participation. Continuous Improvement Improving customer satisfaction and the delivery of community value by continuously and incrementally improving organisational processes. Corporate Governance The process by which decisions are taken and implemented; how organisations are controlled and managed to achieve their objectives; and how organisations are directed, reviewed and held to account. Corporate Plan The City’s Corporate Plan outlines the Council’s vision and translates it into medium and long term priorities, outcomes and strategies for a minimum five-year period. The City’s current Corporate Plan is known as Gold Coast 2022. Corporate Plan Outcome The impact, result of, or consequence for the community, environment or organisation, of corporate strategies, services, policies or activities.
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Glossary Term Definition Corporate Risks Any risk that may have a significant impact on Council requiring the focus of the organisation and the attention of the Executive Leadership Team. The impact is determined by the consequence and likelihood of the risk being realised. Corporate Strategy A strategy is a long term plan which supports the creation of a desired future outcome for the community and identifies priorities for investment. Council Policy A statement, formally adopted by Council or the CEO, that describes Council’s position on a particular issue which relates to matters of public interest and external service delivery. Effectiveness The degree to which an organisation, program, service or activity is successful in achieving or influencing the planned outcomes. Efficiency The extent to which maximum output is achieved from a given input. Alternatively, a minimum input for a given output. Enterprise Risk Management Set of components that provide the foundations and organisational arrangements for designing, Framework implementing, monitoring, reviewing and continually improving risk management throughout the organisation. (AS/NZ ISO 31000:2009 Risk management -- Principles and guidelines). Financial Ratios Figures from financial statements to demonstrate relationships between key numbers - used in Local Government as an indicator of financial sustainability. Council is required to report on the Operating Surplus ratio, Asset Sustainability ratio and Net Financial Liabilities ratio. Forecast A prediction of future conditions and results, based on extrapolation from known factors and trends. GC2018 Gold Coast 2018 Commonwealth Games™ scheduled to be hosted on the Gold Coast between 4 -15 April 2018. Goal The end result that effort is directed towards. Governance The process by which decisions are taken and implemented, organisations are controlled and managed to achieve their objectives and the process by which organisations are directed, reviewed and held to account. Infrastructure Physical assets constructed to support the provision of services to the community. Key Performance Indicator (KPI) A meaningful, high-level measure used to determine whether an organisation has met, or is progressing towards, its planned outcomes. Level of Service The defined service quality for a particular activity such as road surfacing or service area such as street lighting, against which service performance may be measured. Service levels relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. Liveability Liveability refers to a combination of factors that contribute to quality of life. These include the impact of the built and natural environment as well as economic, social and cultural factors. Local Government Act Queensland Local Government Act 2009 including subsequent amendments and associated regulations. Long Term Financial Forecast The long term financial forecast includes at least 10 years of projected financial statements including: - statement of financial position - statement of cash flow - statement of income and expenditure - statement of changes in equity The financial forecast also reports on the relevant measures of financial sustainability for the forecast period. Council must consider the long term forecast before planning new borrowings. Long Term Financial Plan A document that outlines Council's goals, strategies and policies for managing finances for the period covered by the plan, including the following policies: - an investment policy - a debt policy - a procurement policy - a revenue policy; and The document covers a period of at least 10 years after the commencement of the plan. Measure The specific quantitative representation of a capacity, process, or outcome deemed relevant to the assessment of performance. Monitor This term is used to denote the status of an initiative/outcome as part of performance assessment. It describes initiatives/outcomes which are not proceeding as planned, but are expected to be back on track before the end of the next reporting period.
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Glossary Term Definition Objective Something toward which work is to be directed, a strategic position to be attained, or a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. Operating Surplus Ratio Indicates operational efficiency. The ratio is calculated by dividing operational result by total operating revenue excluding capital items. Operational Expenditure (OPEX) Operational expenditure (OPEX) is an ongoing cost for operating and maintaining a product, business, or system. Operational Plan The Operational Plan is a detailed plan showing how it is intended to give effect to one year's portion of the Corporate Plan. It is a statement of specific works to be undertaken and services to be provided in order to progress the goals and objectives set out in the Corporate Plan. Operational Planning The process of translating strategic and organisational aims and objectives into planned actions to ensure delivery. Outcomes The effect, impact, result on, or consequence for the community, environment or organisation, of strategies, services, policies or activities. Outputs The amount of energy, work, goods, or services produced by a machine, factory, group, or an individual in a period e.g. amount of litter removed from beaches each month. Performance The progress in achieving planned outcomes over a given period of time. Performance Management Performance management is the practice of actively using performance data to support decisions related to the delivery of outcomes articulated in Council’s long, medium and short term plans. Performance Measures A quantifiable indicator used to assess how well the organisation achieves its desired capacity, process, or outcome. Performance Plan The Operational Plan for each of Council's commercialised business units. Performance Report A communication of performance information, generally including data and analysis, that informs a target audience of progress toward achievement of planned standards, outcomes or objectives. Performance Target A goal to be reached by a specific date. Portfolio A collection of programs, projects and activities that are centrally coordinated to achieve a set of strategic goals. Precinct An area that may contain multiple asset types that primarily exist for the purpose of supporting a facility (e.g. car parks and pathways within a park primarily exist to support the amenity of the park). Procurement Activity that relates to the engagement of external suppliers for specified works, goods or services - including planning, sourcing, contract management, purchasing, inventory management, warehousing and accounts payable. Program A Program is related group of services provided to the City e.g. the Waste Management Program includes waste collection, waste disposal, waste recycling and city cleaning services. Project Temporary endeavour undertaken to create a unique product, service or result. Recreational Recreation is an activity of leisure where activities are undertaken for enjoyment, fitness, relaxation, restoration, amusement or pleasure. Recurrent The expense or revenue associated with recurrent new initiatives will re-occur in future years. Text is required to explain and fully justify the additional funds required. The justification should identify the effect on the level of service, list any additional labour, plant and other requirements. Resource These are the human and non-human inputs required during the execution of an activity. These include persons (individually or in crews), disciplines, equipment and machinery, services and material. Risk Effect of uncertainty on objectives (an effect is a deviation from the expected – positive and/or negative). (AS/NZ ISO 31000:2009 Risk management -- Principles and guidelines) Service A Service is a related group of activities provided to the City e.g. waste collection which manages a range of different waste collection types is a Service. Service Description A plain english, high-level overview of what the service provides. Signature Actions Initiatives identified in the Corporate Plan Gold Coast 2022 as contributing to outcomes. Sponsor A Sponsor is normally a senior Council Officer responsible for leading specified work on behalf of the (strategy/program/project/policy) City.
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Glossary Term Definition Stakeholder A person or organisation with an interest in the outcome or output or is affected by services, activities, policies, services, programs, or strategies. Stewardship Public officials are entrusted with stewardship on behalf of the community. In this role, they are responsible for the considered application of legislative powers; responsible planning and the careful management of resources, ensuring that the public interest is maintained and improved over time. Strategy/strategies A strategy is a long term plan which supports the creation of a desired future outcome for the community and identifies priorities for investment. Strategic Planning The process by which the organisation envisions its future and develops strategies, goals, objectives and action plans to achieve that future. Strategic Priorities Council's priorities as outlined in the Corporate Plan or as approved through the annual strategic planning, resource allocation and budgeting cycle. Sustainability Forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs. Total Asset Management Plan A summary of the infrastructure asset Management plans that is adopted annually by Council as part of the planning and budget (as opposed to Council individually adopting each of the asset management plans). Work Health and Safety (WHS) Providing a safe and healthy work environment for people engaged in work or employment. As a secondary effect, it may also protect co-workers, family members, employers, customers, suppliers, nearby communities, and other members of the public who are impacted by the workplace environment.
Glossary