SPECIAL BUDGET MEETING 1 JULY 2020 · 2020. 6. 25. · 43 Agenda - Special (Budget) Meeting –1 July 2020 - #6401804 Statutory: The Operational Plan has been prepared in accordance

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Agenda - Special (Budget) Meeting –1 July 2020 - #6401804

SPECIAL BUDGET MEETING

1 JULY 2020 2

CAIRNS REGIONAL COUNCIL OPERATIONAL PLAN 2020/21

N Masasso | 93/1/2 | #6400924

RECOMMENDATION:

That Council adopts the Cairns Regional Council Operational Plan 2020/21.

EXECUTIVE SUMMARY:

Section 174 of the Local Government Regulation 2012 requires Council to prepare and adopt an annual Operational Plan for each financial year and report on progress quarterly.

BACKGROUND:

Pursuant to Section 175(1) of the Local Government Regulation 2012, Council’s annual operational plan must:

1. Be consistent with its annual budget; 2. State how the local government will:

a. Progress the implementation of its 5-year corporate plan during the period of the annual operational plan; and

b. Manage operational risks; and

3. Include an annual performance plan for each commercial business unit of the local government.

Section 175(2) of the Local Government Regulation 2012 is prescriptive with respect to what must be included in the annual performance plan for each of Council’s commercial business units. For 2020/21, Council will have two commercial business units being: Cairns Water; and Cairns Resource Recovery. An assessment of Council’s progress towards implementing the annual operational plan will be presented to Council quarterly as part of the Chief Executive Officer’s report.

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COMMENT:

Council’s Executive Team, in consultation with Branch Managers and other Council Officers as required, have developed Council’s Operational Plan 2020/21 having regard to the key initiatives that will be delivered in support of the five strategic goals outlined in Council’s Corporate Plan 2017-2022. Council’s Executive Team have also ensured that the operational plan is consistent with allowances made in Council’s draft annual budget for 2020/21, which is scheduled to be considered at Council’s Special Budget Meeting on 1 July 2020. A copy of Council’s annual Operational Plan for 2020/21 is attached to this report. The Operational Plan 2020/21 includes annual performance plans for Cairns Water and Cairns Resource Recovery.

OPTIONS:

Option 1 (Recommended)

That Council adopts the Cairns Regional Council Operational Plan 2020/21. Option 2 That Council does not adopt the Cairns Regional Council Operational Plan 2020/21 and provides Council Officers with recommended changes to the plan or details of further information required by Councillors before a decision to adopt the Operational Plan 2020/21 is made.

CONSIDERATIONS:

Risk Management:

Quarterly reporting on the implementation of the Operational Plan 2020/21 will enable Council and the community to monitor and review progress. Council Finance and the Local Economy:

The Operational Plan sets out Council’s key objectives for 2020/21. The budget has been prepared to ensure that the resource utilisation is affordable and effective. Corporate and Operational Plans:

The purpose of the Operational Plan 2020/21 is to outline how Council will progress the implementation of the 2017-2022 Corporate Plan.

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Statutory:

The Operational Plan has been prepared in accordance with section 175 of the Local Government Regulation 2012.

ATTACHMENTS:

Cairns Regional Council Operational Plan 2020/21 (incorporating commercial business unit annual performance plans).

Nick Masasso Executive Project Officer

John Andrejic Chief Executive Officer

CAIRNS REGIONAL COUNCIL 2020-2021 OPERATIONAL PLAN 01 2O2O/21operational plan


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OUR VISIONWe will:

Value our natural environment, lifestyle

and surroundings

Support and respect distinctive and vibrant

communities

Be innovative and creative, grow and

diversify our economy

OUR STRATEGYTo promote an environment which values and enhances our unique lifestyle, iconic natural assets, supports a sense of community and furthers our economic prosperity

Community and

Culture

Serving the

Community

OUR PURPOSETo serve the community

Economy Natural Assets

Liveability


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A strong, diversified and resilient regional economy that supports the growth of new and existing industry, business activities and provides long term employment opportunities

OPERATIONAL INITIATIVE SUCCESS MEASURE LEAD DEPT. 20/21 21/22EXPECTED WORK UNDERTAKEN

1.

2.

3.

4.

5.

6.

7.

8.

Continued coordination and participation in the Cairns COVID-19 Economic Response and Recovery Sub-Committee and development of the Cairns COVID-19 Economic Response and Recovery Plan.

Consider Tourism Tropical North Queensland (TTNQ) Resource and Performance (R&P) Agreement renewal (current agreement expires 30 June 2020) and implementation thereof.

Review and update Council’s Economic Development Strategy (including to take account of COVID-19 economic impacts) incorporating relevant outcomes from the Cairns COVID-19 Economic Response and Recovery Plan.

Review performance of economic development agencies provided with Council funding pursuant R&P Agreements to ensure outcomes are achieved. Consider renewals, extensions and requests for new R&P Agreements if/as required and within the context of Council’s Economic Development Strategy.

Active engagement and collaboration with James Cook University and CQUniversity in the implementation of Council’s Memorandums of Understanding (MoUs) with both universities.

Update of Council’s State and Federal Advocacy documents and engagement with Queensland and Federal Government representatives and other stakeholders in relation to advocacy priorities.

Adopt and implement a revised Major Events Strategy.

Deliver the annual State of Procurement Report.

Plan developed and endorsed.

New agreement in place.

Updated strategy adopted by Council.

Assessment of agency performance against R&P Agreement objectives.

Number of collaboration activities and outcomes.

Updated documents endorsed by Council.

Endorsement of strategy by Council.

Presentation of report to Council by October each year.

• •

•

• •

• •

• •

• •

• •

• •

CEO Office

CEO Office

CEO Office

CEO Office

CEO Office

CEO Office

Planning & Environment

Finance

ECONOMY


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That our iconic natural assets are maintained, enhanced and connected


9.

10.

11.

12.

13.

14.

15.

16.

17.

Finalise Council’s Coastal Hazard Adaptation Strategy.

Prepare Climate Policy and Action Plan (including for targets for 2030).

Finalise Liveability and Natural Assets Plan and undertake annual reporting.

Implement Council’s Litter and Illegal Dumping Action Plan.

Implement Council’s Single Use Plastics Reduction Program.

Begin operations of new Materials Recycling Facility and achieve increase in resource recovery.

Complete independent business case for Council’s proposed Draper Road Water Treatment Plant and continue to advocate for State and Federal funding to support this critical infrastructure project.

Ongoing implementation of the Green Space our Place volunteers natural areas revegetation and community gardens program.

Conduct Youth and Community Climate Summit and consider actions arising from it.

Endorsement of strategy by Council.

Endorsement of policy and action plan by Council.

Endorsement of plan by Council.

Progress against actions in plan.

Progress against reduction targets in program.

85% landfill diversion.

Business case completed.

Level of volunteer involvement and additional sites.

Summit conducted.

•

•

• •

• •

• •

• •

•

• •

•






Water and Waste

Water and Waste

Community, Sport and Cultural Services


NATURAL ASSETS


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A safe and secure city that is easy to live in and connected to the world


18.

19.

20.

21.

22.

23.

24.

25.

Enhance the resilience of Cairns and its communities to disasters through implementation of initiatives in the Disaster Management Plan (DMP).

Delivery of the Northern Beaches Leisure Trail (shared use walking and cycling path from Cairns CBD to Palm Cove) on a staged basis.

Advocate to State and Federal government agencies for improvements to the road and transport network in and around Cairns.

Delivery of the Florence St Upgrade project.

Delivery of the Cairns Esplanade Dining Precinct project including Shields Street Stage 3 and the Esplanade Lagoon Plaza.

Ongoing review of CairnsPlan, Local Government Infrastructure Plan, and Local Laws.

Implement Council’s CCTV and Security Strategy.

Construction of new Council fit for purpose pound facility.

Progress made against DMP initiatives.

Delivery of stages on time and within budget.

Commitments to road and transport network improvements.

Delivery of project on time and on budget.


Endorsement of amendments/ updates by Council.

Plan implemented.


• •

• •

• •

•

•

• •

• •

• •

Human Resources and Organisational Change

Infrastructure Services







LIVEABILITY


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A vibrant, inclusive and healthy community with access to services and facilities which reflect its unique character, roles and needs

COMMUNITY& CULTURE


26.

27.

28.

29.

30.

31.

32.

Continued coordination and participation in the Cairns COVID-19 Human and Social Sub-Committee and development of the Cairns COVID-19 Human and Social Recovery Plan.

Continue to advocate for the capital funding required to enable the Cairns Gallery Precinct project to proceed.

Ongoing implementation of Council’s Reconciliation Action Plan (RAP) - Innovate 2019-2021.

Continued implementation of Council’s Strategy for Culture and the Arts 2022.

Develop and deliver a revised program of cultural events utilising Council’s various arts and cultural facilities and giving due consideration to COVID-19 restrictions.

Undertake Our Cairns Survey 2020.

Complete renovation of Cairns Courthouse building (Abbott St).

Plan developed and endorsed.

Securing funding from Federal and State agencies.

Annual progress report to Reconciliation Australia and Council.

Annual Report Card on key milestones.

Program developed.

Survey conducted.


• •

• •

• •

• •

• •

•

•









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An efficient organisation providing best practices service delivery through leadership, effective management of people, assets and finances


33.

34.

35.

36.

37.

38.

39.

40.

41.

Deliver budget that incorporates an appropriate COVID-19 response.

Continue implementation of the TOBI (Technology One Business Improvement) Program which will enable the transformation of customer interaction and the delivery of more targeted Council services that meet community expectations.

Continue to improve customer satisfaction with all Council services.

Continued participation / engagement of Council’s workforce in the SafetyCircle program.

Delivery of the Capital Works program.

Asset management quality system implementation.

Continuation of works for Cairns Emergency Water Supply Plan.

Drought response plan finalisation.

Preparation of an updated Corporate Plan for Council and ongoing implementation.

Budget adoption.

Project phases delivered on time and budget.

Customer Satisfaction index greater than 85%.

Progress against a range of HR metrics/targets.

Projects delivered on time and on budget.

Completion of project.

Completion of project.



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•

•

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Finance

Finance



Infrastructure Services/Water and Waste

Water and Waste

Water and Waste

Water and Waste

CEO Office

SERVING THE COMMUNITY


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HOW WE MANAGE OUR OPERATIONAL RISKSThere are many risks, threats and opportunities that could potentially affect the achievement of objectives outlined in Council’s strategic plans. Council currently has a number of risk treatment plans in place. Council’s Risk Management Policy and the related Enterprise Risk Management Framework will ensure these plans are integrated in order to ensure an enterprise approach to risk management.


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ANNUAL PERFORMANCE PLAN

CAIRNS WATER

2020/2021

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Annual Performance Plan 2020/2021

Cairns Water’s Mission

To deliver quality and reliable water and wastewater that meet the needs of our community. In all undertakings, Cairns Water strives to achieve service provision to the Cairns community in a manner which maximises both Council and community ideals. This is achieved through economic, social and environmental objectives being assessed in all stages of Cairns Water’s operations from long term planning through to operational delivery.

Cairns Water – Commercial Business Unit

Water and Wastewater services are conducted in a Commercial Business Unit of Cairns Regional Council known as Cairns Water. This Annual Performance Plan encompasses the requirements set out in the Local Government Regulation 2012 for Commercial Business Units, as well as the requirements for the Annual Report which is prepared in accordance with the Local Government Regulation 2012.

Delegations

Cairns Water has a number of delegations covering a variety of legislation. The following table outlines where the delegation for appropriate legislation can be located. Council’s Chris21 Authority Delegation Register is extracted from Business Objects.

Delegation Description Document Number

Water Act 2000 3905815

Plumbing and Drainage Act 2018 6102379

Standard Plumbing and Drainage Regulation 2019 6266114

Water Supply (Safety and Reliability) Act 2008 3905929

Local Government Regulation 2012 3897579

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Registers

The following registers are maintained by Council for Cairns Water:

Water and Waste Business Risk Register

Drinking Water Quality Risk Register

Register of Delegations

Register of Benefits (including gifts)

Water Agenda and Resolution Register

Asset Register

DWQMP Risk Management Improvement Program

Environmental Risk Register

Water and Waste Legal Register

Drinking Water Quality High Risk Stakeholder Register

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Water and Wastewater Services

Cairns Water

1. Unit Objectives

Cairns Regional Council’s Water Department efficiently and effectively treats water to meet and exceedAustralian Drinking Water Guidelines. Cairns Water delivers a quality and reliable water supply frommajor reservoirs to customer connections.

Cairns Water also aims to:

Provide reliable collection of wastewater from properties and ensure delivery in an environmentallysound manner to the wastewater treatment plants.

Efficiently and effectively treat wastewater by recovering useable streams for recycled use.

Limit discharge to waterways.

2. Nature and Extent of Business Activity

Cairns Water conduct works on;

Water supply intakes

Water Treatment plants

Reticulation mains

Reservoirs

Pumps

Residential connections

Wastewater stations

Collection mains

Wastewater Treatment plants

All works are executed in line with Water Standard Operating Procedures, industry best practice and Cairns Regional Council’s legislative requirements.

3. Non-Financial Targets

Cairns Water is required under the Water Supply (Safety and Reliability) Act 2008 to implementCustomer Service Standards. It is a requirement of this legislation that the standards are formallyreviewed every 5 years and submitted to the Regulator. The standards were last adopted by Councilin August 2017 prior to submission to the Regulator.

The standards are currently under formal review again and it is anticipated that an updated version ofthis document will be adopted by Council in early July 2020. The service indicators listed below maychange as a result of this formal review on the standards. Subsequently, the quarterly and annualreporting of the service indicators will also change in the 20/21 financial year.

4. Major Capital Works (proposed major investments)

Major capital works for Cairns Water are set out in Council’s annual budgeted capital expenditureprogram which is adopted in June or July each year.

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5. Outstanding and Proposed Borrowings

Cairns Water has no outstanding or proposed borrowings.

6. Principal Assets

Cairns Water operates up to ten water supply schemes. The main water sources are the CopperlodeFalls Dam and Behana Creek which supply the area from Gordonvale to Palm Cove. The smallsouthern communities draw water from a number of intakes on local streams.

Cairns Water manages six wastewater schemes. The distinct catchment areas within Cairns areserviced by six plants as follows: Marlin Coast, Northern, Southern, Edmonton, Gordonvale andBabinda. The wastewater treatment plants are a combination of activated sludge and biologicaltreatment processes, with the two larger plants also having membrane filtration processes. The smallerplants treat effluent to a secondary standard, while the larger plants treat to tertiary standards. Themanagement of the systems is covered by a development approval issued by the Department ofEnvironment and Heritage Protection.

Principal assets include:

Water Supply1

Major Water Sources Copperlode Falls Dam (Lake Morris), Behana Creek

Major Water Treatment Plants Freshwater Creek, Tunnel Hill

Kilometres of Water Mains ~2212.23~64km

Water Pump Stations 49

Water Reservoirs 68

Intakes 14

Wastewater2

Major Wastewater Treatment Plants 6

Sewerage Pump Stations 180

Kilometres of Sewer Mains (including gravity sewer mains, pressure mains and vacuum mains)

~1311.70km

1 LIVE-#4954376-Asset Management Plan - Water Assets – Annual 2020 2 LIVE-#4954281-Asset Management Plan - Wastewater Assets – Annual 2020

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pcdocs://LIVE/4954376/R

pcdocs://LIVE/4954281/R


7. Key Deliverables / Additional Services

Cairns Water is responsible for the provision of water and wastewater services to consumersthroughout the Cairns Region, including the following:

Reticulated treated water services

Planning, design, documentation and construction of water and wastewater services infrastructure

Demand management services, including meter testing

Water laboratory

Water, recycled water and wastewater reticulation maintenance services

Maintenance of community facilities at Copperlode Dam

Development assessment

Reticulated wastewater services including wastewater treatment and by-product disposal

Treated effluent and biosolids for re-use purposes

Plumbing and trade waste services

Review of plumbing applications

Hydraulic information

As-constructed information

Maintenance of systems

8. Service Indicators

Service indicators were implemented when the Customer Service Standards were approved in August2017.

Performance Indicator Target

Wate

r S

up

ply

1 Total water main breaks *(QG4.5 / AS8) 18/100km Main

2 Incidence of unplanned interruptions – Water (QG4.7 / CS17) 50/1000 properties

3 Average response time for water incidents (bursts and leaks) (QG4.8 / CS66)

120 minutes

4 Water quality complaints (QG4.10 / CS9) 3/1000 properties

Se

we

rag

e

Sy

ste

m 5 Total sewerage main breaks and chokes (QG4.6 / AS39) 16/100km Main

6 Average response time for sewerage incidents (including main breaks and chokes) (QG4.9 / CS65)

120 mins

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sto

me

r

Co

mp

lain

ts

1 Total water and sewerage complaints (QG4.11 / CS13) 10/1000 properties

*Codes relate to Queensland State Government water KPI’s and definitions outlined in the State-wideInformation Management System (SWIM).

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Cairns Water and the Community

1. Community Service Obligations

Repairs and maintenance on fire hydrants

Repairs and maintenance on water locations

Repairs and maintenance on water hydrants

Repairs and maintenance on sewer locations

Cairns Water also engages in the following activities for the benefit of the community:

Maintenance of Copperlode Falls Dam recreation facilities

Water concessions for patients receiving home dialysis

Concealed Water Leakage Rebate program

Provision of communications relating to major projects and operations

Provision of water, wastewater and stormwater education and community engagement through arange of programs, events and resources

Programs include the Smarter with our water: Cairns in school water education program andWater Wonders: kindy program.

Events include “National Water Week” held annually in October and Council corporate eventssuch as Festival Cairns, Ecofiesta and Cairns Show

Resources include the STEAM with water online water worksheets and activity cards andMobi’s Catchment Challenge lesson plans

2. Cost of, and Funding for, the Community Service Obligations

The Community Service Obligations of Cairns Water are 100% funded by Council.

Note: Figures included in the above table represent the draft 2020/21 budget which is scheduled for adoption by Council in July 2020

Cairns Water Financials

1. Notional Capital Structure, and Treatment of Surpluses

Cairns Water is a wholly owned commercial business unit of Council. Cairns Water’s notional capitalstructure is via 100% equity funding from Council. Any surplus earned by a business unit of Council isreturned as a dividend to Council. This return is in recognition that business units have been establishedto further the good governance of the region. Funds earned by Council through dividends are utilisedto provide enhanced services and infrastructure to the Cairns region.

Activities Community Service Obligation Description Cost of CSO

$'000

Water Fire hydrants repairs and maintenance 708

Water locations repairs and maintenance provided free of charge 4

Total 712

Wastewater Sewer locations repairs and maintenance provided free of charge 33

Total 33

Total 745

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2. Capital Works – Expenditure by Program

Note that the details included in the table below reflect the draft budget which is subject to Counciladoption in July 2020.

CAPEX PROGRAM 2020/2021

Budget $’000

Wastewater Services 27,500

Water Services 21,929

TOTAL 49,429

3. Funding of Capital Works

For the 2020/21 financial year, it is proposed that the capital works program will be funded through acombination of developer contributions, retained earnings and Council contributions (if required) withno plans to undertake any borrowings.

4. Financial Targets


Performance Measure – Budget to Actual

Target Frequency Q1 $’000

Q2 $’000

Q3 $’000

Q4 $’000

2020/21 Budget $’000

Operating Revenue Budget Quarterly 33,204 33,468 33,464 33,701 133,837

Operating Expenses Budget Quarterly 21,052 21,556 21,838 22,995 87,441

Net Operating Result Budget Quarterly 12,152 11,912 11,626 10,706 46,396

Capex Budget Quarterly 11,084 9,790 12,440 16,115 49,429

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Cairns Water Reports to Council

Cairns Water reports to Council will contain both financial and non-financial information and such

information will be reported to Council either at ordinary meetings or at relevant Council committees.

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ANNUAL PERFORMANCE PLAN CAIRNS RESOURCE RECOVERY

2020/2021

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Cairns Resource Recovery’s Mission

To deliver quality and reliable waste services that meet the needs of our community. In all undertakings Cairns Resource Recovery strives to achieve service provision to the Cairns community in a manner which maximises both Council and community ideals. This is achieved through economic, social and environmental objectives being assessed in all stages of Cairns Resource Recovery’s operations from long term planning through to operational delivery.

Cairns Resource Recovery – Commercial Business Unit

Waste services are conducted in a Commercial Business Unit of Cairns Regional Council known as Cairns Resource Recovery. This Annual Performance Plan encompasses the requirements set out in the Local Government Regulation 2012 for Commercial Business Units, as well as the requirements for the Annual Report which is prepared in accordance with the Local Government Regulation 2012.

Delegations

Cairns Resource Recovery has a number of delegations covering a variety of legislation. The following table outlines where the delegation for appropriate legislation can be located. Council’s Chris21 Authority Delegation Register is extracted from Business Objects.

Delegation Description Document Number

Waste Reduction and Recycling Act 2011 3904432

Local Government Regulation 2012 3897579

Registers

The following registers are maintained by Council for Cairns Resource Recovery:

Water and Waste Business Risk Register

Register of Delegations

Register of Benefits (including gifts)

Waste Agenda and Resolution Register

Asset Register

EMS Risk Register

Water and Waste Legal Register

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Waste Services

Cairns Resource Recovery (CRR)

1. Unit Objectives

In February 2018 Cairns Regional Council adopted the Waste Reduction and Recycling Strategy 2018– 2027 (the Waste Strategy). The Waste Strategy sets out how the waste and resource recovery needsof the Cairns region will be met over the next 10 years and provides a strategic direction for movingCairns towards a future in which landfills are the last option.

It puts a priority on reducing waste and minimising the amount sent to landfill. It emphasises the importance of community engagement and encourages avoidance of waste, maximising the recycling of materials that are left and supporting the move towards a circular approach.

At the heart of the strategy is the need to change our perception of waste. We all need to start viewing waste as a potential resource and think about how we can use it more efficiently.

The five objectives focus on addressing the current resource recovery and waste management challenges and opportunities in the Cairns region, as follows:

Provide education and awareness: empowering our community to embrace wasteavoidance, reduction and reuse

Reduce waste: where Council and community take responsibility for reducing their own waste

and using resources effectively

Maximise resource recovery: to reduce landfill disposal through resource recoveryopportunities

Secure our future needs: where our capacity and capability to manage future waste issecured

Advocacy and collaboration: to lead strategic alliances and partnerships to support best

practices in waste management

Changing waste and recycling legislation and regulation will shape the CRR business and operating strategies adopted by Council over the 2020/2021 financial year.

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2. Nature and Extent of Business Activity

Cairns Resource Recovery is responsible for the collection and recovery of solid waste and recyclables.CRR is a Significant Business Activity under the provisions of the Local Government Regulation 2012.

The CRR Waste Reduction and Recycling Strategy vision is:

“Innovative waste management providing economic, social, and environmental benefits for the tropicalnorth Queensland region”

The CRR operational business comprises of the following key business areas:

Waste and Recycling Collection (under contract)

65,000 weekly waste collections with 50,000 tonnes of waste collected per year

60,000 fortnightly recycling collections with 12,000 tonnes of recycling collected per year

Transfer Stations

Five (5) transfer stations with 35,000 tonnes of waste received per year

Buy Back Shop

One (1) Buy Back Shop retail shop with 800 tonnes of material reused per year

Materials Recovery Facility (MRF)

One (1) MRF with 13,000 tonnes of recycling processed per year

Regional Waste Management (under contract and includes Mareeba & Douglas Shire Councils)

One (1) Advanced Resource Recovery Facility (ARRF) with 62,000 tonnes of waste processed peryear

Overall, for the Cairns local government area, approximately 100,000 tonnes per year is received with 60,000 tonnes diverted from landfill (60% diversion rate) and 40,000 tonnes landfilled.

3. Non-Financial Targets

CRR have non-financial targets relating to resource recovery outlined in the Waste Strategy, as follows:

Reduce MSW (Domestic) waste generation per capita by 5% by 2027

Reduce MSW (Domestic) waste to landfill by 15% by 2027

Increase the MSW (Domestic) recovery rate to 70% by 2027

Increase the Council generated waste recovery rate (to be established)

A full copy of the Waste Strategy is available on Council’s website.

Under the Waste Reduction and Recycling Act 2011, CRR does not have a legislative requirement to supply levels of service that customers can expect. However, a number of CRR levels of service have been incorporated into the Cairns Water and Waste Customer Service Standards. These standards are formally reviewed every 5 years and reported on annually. The standards were last adopted by Council in August 2017.

The standards are currently under formal review again. It is anticipated that an updated version of this document will be adopted by Council in July 2020. The service indicators listed below in Item 8 may change as a result of this formal review. Subsequently, the quarterly and annual reporting of the service indicators will also change in the 20/21 financial year.

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4. Major Capital Works (proposed major investments)

Major capital works for Cairns Resource Recovery are set out in Council’s annual budgeted capitalexpenditure program which is adopted in June or July each year.

5. Outstanding and Proposed Borrowings

Cairns Resource Recovery has no outstanding or proposed borrowings.

6. Principal Assets

Cairns Resource Recovery manages a range of solid waste operations, activities and services acrossthe region including kerbside waste and recycling collection contracts, a regional waste managementcontract (through an Advanced Resource Recovery Facility), a material recovery facility, transferstations, drop bin sites and landfills. Principal assets include:

Materials Recovery Facility Portsmith

Waste Transfer Stations

Babinda

Gordonvale

Portsmith

Smithfield Bramston Beach

Buy Back Shop Portsmith

Landfills (closed)

Portsmith Whiterock Babinda Gordonvale Yorkeys Knob

Waste Treatment and Disposal

Contractual arrangement with a commercial entity

Suez (Cairns Advanced Resource Recovery

Facility) to accept, treat and dispose of all Council

waste at an Advanced Resource Recovery Facility

7. Key Deliverables / Additional Services

CRR is responsible primarily for the management of municipal solid waste services (collection, recoveryand disposal) to the community, including the following:

Provision of kerbside waste and recycling collections

Provision of the Transfer Station network

Operation of the Materials Recovery Facility

Contract management including regional ARRF facility

Management and monitoring of closed landfill sites

Management of waste and recycling education campaign

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8. Service Indicators

Performance indicators were implemented when the Customer Service Standards were approved inAugust 2017.

Performance Indicator Target

Eff

ecti

ve

Co

lle

cti

on

of

Re

sid

en

tial

Waste

1 New Bin Delivery 100% within 48 hours

2 Missed services - kerbside waste Less than or equal to 1 per 5000 services

3 Response time to missed services - kerbside waste 100% within 24 hours

4 Missed services - kerbside recycling

Less than or equal to 1 per 5000 services

5 Response time to missed services - kerbside recycling 100% within 24 hours

6 Response time to repair/replacement requests - kerbside waste and recycling

100% within 48 hours

Cairns Resource Recovery and the Community

1. Community Service Obligations

Free green waste initiative conducted four times a year

Charity exemptions for waste disposal

Collection and disposal relating to community clean up events (such as the Great Northern Clean-up)

Free hazardous waste disposal to prevent incorrect disposals

Recycling services free of charge to schools

Concession for patients receiving home dialysis

Donations of buy back shop items to charity

Cairns Resource Recovery also engages in the following activities for the benefit of the community:

Provision of communications relating to major projects and operations

Provision of schools and community waste education through the Rediscovery Centre at theMaterial Recovery Facility (MRF)

Involvement and support of “National Recycling Week” held annually in November and othernational and international recycling initiatives

Support and involvement in Council Corporate events such as Festival Cairns, Cairns Show andEcofiesta

2. Cost of, and Funding for, the Community Service Obligations

The Community Service Obligations of Cairns Resource Recovery are 100% funded by Council.

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Note: Figures included in the above table represent the draft 2020/21 budget which is scheduled for adoption by Council in July 2020

3. Policy on the Level and Quality of Service Consumers Can Expect

Cairns Resource Recovery are required to implement Customer Service Standards which documentthe level of services to be provided to customers and processes for customer interaction with theprovider about such issues as billing, metering and accounts. The implementation of Customer ServiceStandards ensures continuity of the services supplied to customers. Cairns Resource Recovery’sCustomer Service Standards were approved in August 2017 and are reviewed annually.

Cairns Resource Recovery Financials

1. Notional Capital Structure, and Treatment of Surpluses

Cairns Resource Recovery is a wholly owned commercial business unit of Council. Cairns ResourceRecovery’s notional capital structure is via 100% equity funding from Council.

Any surplus earned by a business unit of Council is returned as a dividend to Council. This return is inrecognition that business units have been established to further the good governance of the region.Funds earned by Council through dividends are utilised to provide enhanced services and infrastructureto the Cairns region.

2. Capital Works – Expenditure by Program


CAPEX PROGRAM 2020/21 Budget $’000

Waste Services 11,342

TOTAL 11,342

3. Funding of Capital Works

For the 2020/21 financial year it is proposed that the capital works program will be funded through acombination of developer contributions, retained earnings and Council contributions (if required) withno plans to undertake any borrowings.

Activities Community Service Obligation Description Cost of CSO

$'000

Waste Services Free Green Waste conducted four times a year 539

Charity exemptions for waste disposal 193

Collection and disposal relating to community clean up events 2

Fee hazardous waste disposal to prevent incorrect disposals 145

Recycling services fee free of charge to schools 34

In Kind Waste & Recycling Collections 5

Donations of buy back shop items to charity 2

Total 920

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4. Financial Targets

Note that the details included in the table below reflect the draft budget which is subject to Council adoption in July 2020.

Cairns Resource Recovery Reports to Council

Cairns Resource Recovery’s reports to Council will contain both financial and non-financial information

and such information will be reported to Council either at ordinary meetings or at relevant Council

committees.

Performance Measure – Budget to Actual

Target Frequency Q1 $’000

Q2 $’000

Q3 $’000

Q4 $’000

2020/21 Budget $’000

Operating Revenue Budget Quarterly 8,892 9,281 9,230 9,740 37,143

Operating Expenses Budget Quarterly 6,937 7,109 7,002 7,386 28,434

Net Operating Result Budget Quarterly 1,955 2,172 2,228 2,354 8,709

Capex Budget Quarterly 3,729 3,349 2,349 1,915 11,342

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Documents

SPECIAL BUDGET MEETING 1 JULY 2020 · 2020. 6. 25. · 43 Agenda - Special (Budget) Meeting –1 July 2020 - #6401804 Statutory: The Operational Plan has been prepared in accordance