799 Adopted Minutes Water, Waste and Energy Committee Meeting - Wednesday 3 March 2021
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799
Adopted Minutes
for the
Water, Waste and Energy
Committee Meeting
to be held
Wednesday 3 March 2021
at
9 am
City of Gold Coast Council Chambers
135 Bundall Road
Surfers Paradise
799th Council Meeting 9 March 2021 2
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
Index 799
Adopted Minutes
Water, Waste and Energy Committee Meeting
Wednesday 3 March 2021
PRESENTATIONS:
- Kerbside Collection Area Expansion – Review Update - Confidential
Item Direct. File Page Subject
1 WW LG115/1377/01/2020(P1) 4 Confirmation of Minutes
2 WW LG115/1377/01/2020(P1) 13 Conflict of Interest Declarations
3 WW CM787/790/06/01(P1) 15 Water, Waste and Energy Committee
Action List and Forward Planning Schedule
4 WW WSS1125/1227/02(P1) 18 Water and Waste Annual Register of
Council Directions
5 WW FN334/252/21(P1) 20 Water and Sewerage Services Monthly
Financial Report for the month of January
2021
6 WW FN334/252/20(P6) 40 Waste Services Monthly Financial Report
for the month of January 2021
7 WW FN334/252/21(P1) 52 Energy Management Unit Monthly Financial
Report for the month of January 2021
8 WW WSS382/343/08(P1) 58 Inflow Mitigation: Approved Inspection
Program for Private Sewerage Plumbing
Closed Session
9 WW WSS1115/343/02 72 Northern Gold Coast Recycled Water
Scheme
KEY:
OCEO - Office of the Chief Executive Officer OCOO Office of the Chief Operating Officer
EPE - Economy, Planning and Environment OS - Organisational Services
LC - Lifestyle and Community TI - Transport and Infrastructure
WW - Water and Waste
799th Council Meeting 9 March 2021 3
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ADOPTION BY COUNCIL 9 MARCH 2021
RESOLUTION G21.0309.015 moved Cr Hammel seconded Cr PJ Young
That the Minutes of the Water, Waste and Energy Committee Meeting of Wednesday
3 March 2021, covered by Recommendations numbered WWE21.0303.001 to
WWE21.0303.008 (Item 9), be adopted.
CARRIED UNANIMOUSLY
Cr Hammel voted in the positive
ATTENDANCE
Cr G O’Neill (Chairperson)
Cr M Hammel
Cr PJ Young
Cr R Bayldon-Lumsden
Cr R La Castra
Cr G Tozer
Cr D McDonald
Cr W Owen-Jones Visiting Councillor
Cr B Patterson Visiting Councillor
Cr PC Young Visiting Councillor
Mr P Heaton Director Water and Waste
Mr R Packer Manager Strategy and Innovation
Mr C Truscott Manager Asset Solutions
APOLOGY / LEAVE OF ABSENCE
Nil
PRESENTATIONS
Kerbside Collection Area Expansion – Review Update - Confidential Mr Rod Packer
799th Council Meeting 9 March 2021 4
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 1 WATER AND WASTE
CONFIRMATION OF MINUTES
LG115/1377/01/2020(P1)
That the minutes of the Seven Hundred and Ninety Eighth Water, Waste and Energy
Committee Meeting held on Wednesday 10 February 2021 be confirmed.
COMMITTEE RECOMMENDATION WWE21.0303.001
moved Cr Tozer seconded Cr Hammel
CARRIED
799th Council Meeting 9 March 2021 5
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
Attachment 1.1
799th Council Meeting 9 March 2021 6 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 7 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 8 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 9 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 10 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 11 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 12 Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
799th Council Meeting 9 March 2021 13
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 2 WATER AND WASTE
CONFLICT OF INTEREST DECLARATIONS
LG115/1377/01/2020(P1)
Declarable Conflict of Interest – During Meeting
Councillor Name Cr Hammel
Matter Description Northern Gold Coast Recycled Water Scheme
Meeting Name Council Meeting
Meeting Date 9 March 2021
Item Number 9 Item Reference
Pursuant to section 150EQ(2) of the Local Government Act 2009, I hereby provide
notice that I have a declarable conflict of interest in this matter, the nature and
particulars of which are as follows:
Nature of the declarable conflict of interest
I own property in the vicinity.
If the declarable conflict of interest arises because of the councillor’s
relationship with a related party
The name of the related party Cr Mark Hammel
The nature of the relationship of the
related party to the councillor
The nature of the related party’s
interests in the matter
Owner of property in the vicinity
If the councillor’s or related party’s personal interests arise because of the
receipt of a gift or loan from another person
The name of the other person
The nature of the relationship of the
other person to the councillor or
related party
The nature of the other person’s
interests in the matter
The value of the gift or loan, and the
date the gift was given or loan was
made
I am voluntarily deciding not to participate in making a decision about the matter.
I am seeking permission to participate in making a decision about the matter.799th Council Meeting 9 March 2021 14
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 2 WATER AND WASTE
CONFLICT OF INTEREST DECLARATIONS
LG115/1377/01/2020(P1)
The reasons why my participation would improve decision making in the public
interest are as follows:
I own property in the vicinity however my property is not part of this report.
PROCEDURAL MOTION moved Cr Tozer seconded Cr O’Neill
Pursuant to section 150ES(3)(a) of the Local Government Act 2009, Council resolves
that:
Cr Hammel may participate in the decision despite the Councillor’s conflict of
A interest because he has no greater personal interest in the matter than that of
other persons in the local government area
CARRIED
Cr Hammel did not vote.799th Council Meeting 9 March 2021 15
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 3 WATER AND WASTE
WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE
CM787/788/06/01(P1)
Proposed Date Subject Action Officers Action
March 2021 Coomera Shores Water and Christian
Sewerage Services Truscott/ Mark
Johnson
March 2021 Review of Kerbside Bin Service Area Sam Atkinson/ That a review of the kerbside bin service area particularly
Rod Packer focusing on unserviced rural residential lots outside of the
Petition – Extension of Waste
declared waste collection area be completed and brought
Collection Service in Mudgeeraba
back to a future committee meeting.
(response will be included in “Review
of Kerbside Bin Service Area” Agenda Petition submitted to 789 Council meeting held 27 May
Item) 2020. Resolution: G20.0527.035.0527.035
That the above Petition be received and referred to the
appropriate committee for consideration and report to
Council.
March 2021 Waste Management Land Kathy Baker That a report comes back to Council on this matter by March
Requirements 2021.
Committee Recommendation:
WWE20.0722.0076799th Council Meeting 9 March 2021 16
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 3 WATER AND WASTE
WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE
CM787/788/06/01(P1)
Proposed Date Subject Action Officers Action
TBC Waste and Recycling Centres Mairead
Network Operations (operations and Lenihan /
access) Rod Packer
Council Resolution: G19.0730.023
May 2021 Inflow Mitigation: Approved Inspection Dominique Package 3 update
Program for Private Sewerage Keirens / Jay
Plumbing San Juan
June 2021 Hope Island Water Metering Review Chris Owen That Water and Waste prepare an agenda item detailing
feasibility and implications alternate water meter reading and
water meter asset custodianship options and associated
recommendations for Hope Island Body Corporate areas,
and implications for similar schemes.
Further report as agreed at Committee (Item 10 General
Business 18 Nov 2020)
RECOMMENDATION
It is recommended that Council resolve as follows:
That the Action List and Forward Planning Schedule for Water, Waste and Energy Committee be noted.
Authorised by:
Paul Heaton
iSPOT#75297798 Director Water and Waste799th Council Meeting 9 March 2021 17
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 3 (Continued) WATER AND WASTE
WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE
CM787/788/06/01(P1)
COMMITTEE RECOMMENDATION WWE21.0303.002
moved Cr Tozer seconded Cr PJ Young
That the Action List and Forward Planning Schedule for Water, Waste and Energy Committee be noted.
CARRIED799th Council Meeting 9 March 2021 18
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 4 WATER AND WASTE
WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS
WSS1125/1227/02(P1)
STANDING AGENDA ITEM: Committee Recommendation: WS14.0430.007 / Council Resolution: G14.0506.025
“That Gold Coast Water establish a standing item on the Water Services Committee Agenda which is a register (and thus an agreed record) of
any “directions” that Council gives Gold Coast Water for reporting in the annual operations report.”
That is: - a resolution that goes against or substantially modifies the recommendations of the Officers and;
- has a (or potential to have a) material/commercial impact on the business unit.
Council Council Description 2019-20 2020-21
Meeting Resolution
That the adopted infrastructure charges are adjusted so that there is a
100% discount for family accommodation dwellings of 100m2 GFA or
less for any approvals issued on or after 1 July 2014 through the
remainder of this Council’s term.
Permanent changes to Adopted Infrastructure Charges Resolution (AICR):
1. Existing building: no infrastructure charges levied for any change in non-
residential land use (ongoing).
2. Expansion: for non-residential land uses, up to an additional 50 per cent of
GFA or a maximum of 500m², whichever is the lower, will be exempt from
infrastructure charges (ongoing).
3. Family accommodation: no charge for family accommodation dwellings of
100m² GFA or less. Family accommodation dwellings greater than 100m²
GFA will be charged at 40 per cent of the relevant AICR charge (ongoing).
771 G19.0326.022 4. Not-for-profit community groups: rebates for the water and wastewater
networks will be restored, following the return of responsibility to the City Nil Rebates
(ongoing).
Recommendation: WW19.0321.002799th Council Meeting 9 March 2021 19
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 4 (Continued)
WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS
WSS1125/1227/02(P1)
RECOMMENDATION
It is recommended that Council resolve as follows:
That the Water and Waste Annual Register of Council Directions be noted.
Authorised by:
Paul Heaton
iSPOT#43956542 Director Water and Waste
COMMITTEE RECOMMENDATION WWE21.0210.003
moved Cr Tozer seconded Cr PJ Young
That the Water and Waste Annual Register of Council Directions be noted.
CARRIED799th Council Meeting 9 March 2021 20
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 WATER AND WASTE
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Attachment 1: Detailed Income Statement
1 BASIS FOR CONFIDENTIALITY
Not Applicable.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
This report presents the Water, Waste and Energy Committee with the Water and Sewerage
Services 2020-21 financial performance as at 31 January 2021. Comparisons are against
Council’s 2020-21 September revised budget.
4 PREVIOUS RESOLUTIONS
Not Applicable.
5 DISCUSSION
5.1 High Level Financial Summary
Year to Date Full Year
Water & Sewerage Services
Financial Summary Actual Revised Initial Revised
Budget Budget Budget
Var Var
31 January 2021 ($M) ($M) ($M) % ($M) ($M)
Operating Revenue 314.81 311.56 3.25 1.0% 536.15 533.33
Flow-Dependent Expenditure 126.81 127.15 0.34 0.3% 210.79 210.80
Operating Revenue net of Flow
Dependent Expenditure 188.00 184.41 3.59 1.9% 325.36 322.53
Gross Margin 0.63 0.63 0.65 0.65
Total Controllable Operating
66.17 70.94 4.77 6.7% 120.42 123.24
Expenditure
Loss on Sale of Assets 0.31 2.22 1.91 85.9% 5.00 5.00
Net Profit before Capital Revenue 121.52 111.25 10.27 9.2% 199.94 194.29
Total Capital Revenue 36.17 33.75 2.42 7.2% 65.00 65.00
EBITDA 157.69 145.00 12.69 8.8% 264.94 259.29
Table 1 – Water and Sewerage Services - Year to Date Financial Summary
Table 1 presents the financial position for Water and Sewerage Services as at 31 January as
8.8% or $12.69 million above forecast. This is predominantly the result of total controllable
operating expenditure being $4.77 million (6.7%) below forecast, operating revenue being
$3.25 million (1.0%) above forecast and capital revenue being $2.42 million (7.2%) above
forecast.799th Council Meeting 9 March 2021 21
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Major variances will be discussed in the following paragraphs with a detailed Income
Statement contained in Attachment 5.1 to the report.
5.2 Operating Revenue ($3.25 million Favourable)
5.2.1 Rates Revenue Financial Summary ($3.17 million Favourable)
Year to Date Full Year
Water & Sewerage Rates Actual Revised Initial Revised
Budget Budget Budget
Revenue Var Var
31 January 2021 ($M) ($M) ($M) % ($M) ($M)
Access Charges
Water 41.33 41.51 (0.18) (0.4%) 71.23 71.23
Sewage 108.18 108.50 (0.32) (0.3%) 187.71 187.71
Total Access Charges 149.51 150.01 (0.50) (0.3%) 258.94 258.94
Usage Charges Revenue
Water - gross 139.30 137.22 2.08 1.5% 226.80 226.55
Sewage - gross 20.82 19.52 1.30 6.6% 39.98 39.84
Non Drinking Water 0.94 0.80 0.14 18.1% 1.21 1.21
Less: Concealed Leakage (1.08) (1.23) 0.15 12.4% (2.50) (2.11)
Total Usage Charges Revenue 159.98 156.31 3.67 2.3% 265.49 265.49
Total Rates Revenue 309.49 306.32 3.17 1.0% 524.43 524.43
Table 2 – Water and Sewer Rates Revenue Forecast
Utility Rates revenue is $3.17 million (1.0%) ahead of forecast, with access charges being
$0.50 million (0.3%) below forecast and usage charges revenue being $3.67 million (2.3%)
above forecast.
Access Charges
§ Year-to-date water access charges revenue recorded is $0.18 million (0.4%) below
forecast. Total water service connections at 31 January 2021 are 269,618
representing an increase of 0.87% in connections since 30 June 2020.
§ Year-to-date sewerage access charges revenue recorded is $0.32 million (0.3%)
below forecast. Total sewerage service connections at 31 January 2021 are 255,615
representing an increase of 0.91% in connections since 30 June 2020.
Total forecast growth for the 2020-21 financial year is 2.26% for both water and sewerage
connections, with actual connections growth tracking slightly below forecast as at 31 January
2021. Access charges will be closely monitored, and necessary amendments will be made at
the March 2021 budget review, if required.799th Council Meeting 9 March 2021 22
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Usage Charges Revenue
Total Usage Charges revenue is recorded at $3.67 million (2.3%) above forecast as at
31 January 2021.
• Year-to-date water usage revenue is above forecast by $2.08 million (1.5%). The
increase in usage revenue is explained by the increase in demand for the year, as
outlined in Section 5.3 below.
• Year-to-date sewage volumetric revenue is above forecast by $1.30 million (6.6%).
This is the result of the conservative usage estimates adopted for the budget, taking
into account the expected bounce back from COVID-19 shutdowns for non-residential
customers which has tracked ahead of initial expectations.
Usage charges will be closely monitored, and necessary amendments will be made at the
March budget review, if required.
5.2.2 Other Operating Revenue ($0.08 million Favourable)
Other operating revenue is $0.08 million (1.3%) above forecast due to:
• $0.16 million for increased revenue from landfill leachate treatment.
• $0.08 million due to increased demand for laboratory testing within Water and Waste.
• $0.25 million unfavourable due to reduced rental revenue from a recently acquired
strategic property purchase. Income is not expected to be received until next
financial year.
Other operating revenue will be closely monitored, and necessary amendments will be made
at the March budget review, if required.
5.3 Flow Dependent Expenditure ($0.34 million Favourable)
Flow dependent expenditure is within 1% of the revised budget.
Bulk Water Purchases ($1.18 million Unfavourable)
Bulk water purchases for the month of January 2021 were below forecast by 935 ML (14.8%)
but are 460 ML (1.3%) above forecast on a year to date basis.
The demand forecast used for the initial budget was based on drought conditions for the full
financial year. As outlined in Graph 1, the South East Queensland adaptive drought
response identifies that when combined dam levels reach 60% voluntary water restrictions
come into effect, with formal restrictions when dam levels reach 50%. As at the end of
January, the combined dam levels were 57.3%.
As formal water restrictions have not come into effect, it has led to an increase in bulk water
purchases, with the cost offset by an increase in usage revenue.799th Council Meeting 9 March 2021 23
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Graph 1 South East Queensland adaptive drought response approach
Rainfall for January was 83% of the long-term average, with 114 mm recorded at the Gold
Coast Seaway. Financial year-to-date rainfall is 119% of the long-term average with 725 mm
recorded at the Gold Coast Seaway.
Graph 2 compares water supplied versus the demand forecast adopted for the revised
budget. Rainfall recorded for the month is also incorporated.
Water demand will be closely monitored and will be adjusted at the March budget review, if
required. If an adjustment is required, then this will also flow through to water and sewage
usage revenue.799th Council Meeting 9 March 2021 24
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Graph 2 - Analysis of Water Supplied versus Demand Forecast
Electricity ($1.08 million Favourable)
Electricity expenses are $1.08 million or 14.8% below forecast as a result of lower flows into
Coombabah STP from the Surfers/Broadbeach area in the first couple of months of the
financial year (now recovered to normal flows). In addition, the administrative mark-up paid to
the Energy Management Unit reduced for large sites which wasn’t recognised in the initial
budget. A budget reduction will be proposed as part of the March budget review.799th Council Meeting 9 March 2021 25
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.4 Controllable Expenditure ($4.77 million Favourable)
At a whole of business unit level Controllable Expenses are $4.77 million (6.7%) below
forecast. Major contributing factors to this variance are discussed below.
Consultants ($1.69 million Favourable)
Consultants are $1.69 million or 48.7% below forecast mainly due to lower than forecast
expenditure in the following:
• Water and Sewerage Services Infrastructure Plan (WSSIP) Detailed Planning: this
project is tracking behind forecast due to reprioritisation of resources to meet higher
priority projects.
• Elanora Environmental Investigation: Delays in the ecology field work, sediment and
water sampling due to wet weather events has resulted in the lower than forecast
expenditure. In addition, project works are adaptive based on the Environmental
Regulator’s requirements. These works will carry over into 2021-22.
• Planning Investigations: this project is tracking behind forecast as the scope is
identified reactively, with less works required than initially expected. A budget
adjustment will be requested as part of the March budget review.
• STP Planning Program: this project is tracking behind forecast due to reprioritisation
of resources to meet higher priority projects.
Materials and Services ($1.50 million Favourable)
Materials and services are $1.50 million or 7.9% below forecast due to:
• Water Assist Program: an allocation was provided for as part of the COVID-19
Community Assistance Package, there have been delays in finalising the structure
and the program will be available to customers in the second half of the financial
year.
• Gravity Sewer Condition Assessment: this project is tracking below forecast due
to ongoing issues with poor quality of data from the contractor. As a result, progress
claims have been put on hold until the data quality issue is resolved.
This is partially offset by:
• Higher than forecast expenditure on major contract implementation.
• Increased maintenance costs at the sewage treatment plants due to an increase in
reactive maintenance required on mechanical and electrical equipment at the plants.799th Council Meeting 9 March 2021 26
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Employee Expenses ($1.48 million Favourable)
Employee expenses are $1.48 million (4.9%) below forecast due to a combination of:
• Delays in finalising contracts has resulted in delays the recruitment process for
resources for the Utility Billing Solution Stabilisation project.
• Identification of several positions that split their time between tactical asset
management and capital project delivery has led to a decrease in operational
employee expenses, with the balance of the cost being picked up in capital projects
and capitalised at project completion.
Employee expenses will be closely monitored, and necessary amendments will be made at
the March budget review, if required.
Sewage Treatment Charge ($0.55 million Favourable)
An allowance of $0.4 million was provided for exceeding effluent quality and volume limits for
treatment of sewage at the Beenleigh STP as part of the Service Level Agreement with
Logan City Council. To date over limit charges incurred have been very minimal.
5.5 Loss on Asset Disposal ($1.91 million Favourable)
Processing of assets for 2020-21 commenced in October. It is expected processing shall
ramp up in the coming months to align with the asset revaluation exercise.
5.6 Capital Revenue ($2.42 million Favourable)
Developer (cash) contributions are $6.92 million (33.9%) above forecast. Developer
contributions are dependent on the level of development activity across the City which
fluctuates both across financial years and during the year.
An adjustment to developer contributions was made as part of the December budget review.
Further monitoring will occur, and necessary adjustment will be made at the March budget
review, if required.
Contributed assets are $4.50 million (33.7%) below forecast. Processing of assets
commenced in October following completion of the 2019-20 financial year activities and
processing will increase over the second half of the financial year. Similar to developer
contributions, contributed assets are dependent on the level of development activity across
the City which fluctuates over the year.799th Council Meeting 9 March 2021 27
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.7 Community Returns
Income Tax ($3.99 million Unfavourable)
Water and Sewerage Services is a commercialised business unit subject to the Local
Government Taxation Equivalents Regime (LGTER). As part of this regime, a Pay As You
Go (PAYG) Instalment Activity Statement must be prepared and submitted on a monthly
basis, with payment of a PAYG instalment to Council.
The current instalment rate as issued by our tax assessors is 6.86%. The instalment rate is
applied to total revenue generated to derive the amount of PAYG tax payable each month.
At year end, a final taxation return will be prepared, based upon taxable income, and utilising
the company taxation rate of 30% to calculate total taxation payable for the year. Relevant
adjustments will be made to record this annual tax liability to Council.
5.8 Capital Program
5.8.1 Capital Expenditure
The Water and Sewerage Services revised capital program consists of 82 projects totalling
$165.99 million.
Water and Sewerage Services Capital Expenditure
as at 31 January 2021
Year to Date Full Year
Actual Revised Budget Initial
Revised Forecast Q1 Variance Variance
Product Expenditure Q1 Budget
($M) ($M) %
($M) ($M) ($M)
Sewerage 63.39 71.36 (7.97) (11%) 146.93 147.85
Water 11.57 12.10 (0.53) (4%) 18.78 17.87
Corporate 0.19 0.23 (0.04) (17%) 0.27 0.27
Total Capital 75.15 83.68 (8.54) (10%) 165.99 165.99
Table 3 – Capital Expenditure ($‘000’s)
Year to date capital expenditure of $75.15 million represents a variance of 10% below the
year to date revised forecast of $83.68 million.799th Council Meeting 9 March 2021 28
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Product Variances
Sewerage
The sewerage program is $7.97million (11%) below forecast. The following projects are the
main contributors to this variance:
• Coombabah STP Stage 6 Upgrade: $4.28 million below forecast.
Project expenditure is continuing to track behind forecast due to wet weather events
experienced in December. Further delays related to receipt of detailed designs has
slowed construction activities on site. Despite these delays, it is anticipated budget
will be fully expended this financial year.
• SPS Wet Well Relining 2019-20: $0.55 million below forecast.
Project expenditure is tracking behind forecast as the maintenance hole
refurbishment contract was not able to be extended beyond November 2020, leaving
no delivery mechanism for these works. As a result, a significant budget reduction will
be proposed as part of the March budget review.
• Long Term Recycled Water Release Stage 1: $0.96 million below forecast.
Project expenditure is tracking behind forecast as the earlier notice from the
contractor for a latent claim related to the cracked tunnel pipes was formally
withdrawn.
• SPS CO13 Vacuum Upgrade: $0.39 million below forecast.
The project has been delayed due to COVID-19 related supply chain issues relating
to the delivery of the vacuum generators, discharge pumps, switchboard and
separators. It is still anticipated that the project scope will be fully delivered by 30
June 2021.
• Sewer Pressure Main Renewals: $0.71 million below forecast.
Construction synergies with the recycled water network expansion project have
impacted the delivery of project scope this financial year. Works have been deferred
to 2021-22. A budget reduction will be proposed as part of the March budget review.
• Infiltration Reduction Pilot Trial: $0.31 million below forecast.
This project has been delayed due to the rescheduling of the CCTV assessment from
December 2020 to March 2021 due to significant wet weather events. These works
are only able to be undertaken during high tide and can be severely impacted by wet
weather. The project aims to be completed by 30 June 2021.
Water
The water program is $0.53 million (4%) below forecast. The following project is the main
contributor to this variance:
• WPS BU1 Upgrade: $0.40 million below forecast
Project expenditure is tracking behind forecast due to wet weather experienced
during December 2020. Redesign of pipework connections and subsequent lead time
for procurement of the required pipe and fittings has led to further delays.
Notwithstanding this, the project is expected to be completed by 30 June 2021.799th Council Meeting 9 March 2021 29
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.8.2 Status Update – Major Investments
Coombabah Sewage Treatment Plant Stage 6 Upgrade
Project scope and budget
This project involves the upgrade of Coombabah Sewage Treatment Plant, (STP), to provide
additional treatment capacity to cater for growth and to meet licence requirements. The
preferred Stage 6 option involves an augmentation to approximately 120,000 Equivalent
Person (EP) utilising existing biological nutrient removal technology. This includes a new
Preliminary Treatment Facility (PTF), new bioreactor and associated clarifiers, disinfection
system, waste sludge thickening and dewatering and associated ancillary and support
facilities.
The revised budget for 2020-21 is $68.12 million.
Achievements for January
• Contract works progressing as per the contractor's program.
• Design development progressing and is now on critical path.
• Contaminated soil testing program complete with Management Plan under
development.
• Driven concrete piling commenced.
Major issues
No major issues.
Financial Performance
Year to Date Whole Project
Forecast ($) 32,345,231 Budget ($) 155,038,820
Expenditure ($) 28,063,661 ITD Expenditure ($) 33,981,231
Variance ($) (4,281,570) Remaining ($) 121,057,589
Variance (%) (13%) Remaining (%) 78%799th Council Meeting 9 March 2021 30
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Long Term Recycled Water Release Stage 1
Project scope and budget
The City’s existing excess recycled water release system at the Seaway is nearing capacity.
The Long Term Recycled Water Release Plan aims to provide a city wide solution to cater for
excess recycled water to support continued growth and economic development of the City.
Stage 1 consists of infrastructure upgrades that increase capacity and allow incremental
staging of the ultimate solution to cater for both average and peak recycled water release for
the whole of the City. Forecast completion is April 2021.
The revised budget for 2020-21 is $18.0 million.
Achievements for January
• The possible latent condition claim, in relation to the cause of the cracked tunnel
pipes, has been formally withdrawn.
• Completed stripping of internal equipment from the tunnel.
• Commenced demobilisation – overhead gantry crane, separation equipment and
ancillary equipment removed from site.
• Commenced preparations for testing and final connections.
Major issues
No major issues.
Financial Performance
Year to Date Whole Project
Forecast ($) 14,894,622 Budget ($) 100,355,770
Expenditure ($) 13,935,649 ITD Expenditure ($) 96,291,419
Variance ($) (958,973) Remaining ($) 4,064,351
Variance (%) (6%) Remaining (%) 4%799th Council Meeting 9 March 2021 31
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Recycled Water Network Expansion Stage 1
Project scope and budget
Infrastructure works required for the expansion of the recycled water network to implement
improved utilisation of recycled water across the City thus reducing ultimate ocean outflows.
The cost of this infrastructure will be recovered in recycled water customer pricing.
The revised budget for 2020-21 is $7.5 million.
Achievements for January
• Select tender assessments completed.
• Deviation / clarification responses 95% complete.
Major issues
No major issues.
Financial Performance
Year to Date Whole Project
Forecast ($) 1,483,117 Budget ($) 21,466,874
Expenditure ($) 815,009 ITD Expenditure ($) 3,856,883
Variance ($) (668,108) Remaining ($) 17,609,991
Variance (%) (45%) Remaining (%) 82%799th Council Meeting 9 March 2021 32
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Long Term Recycled Water Release Elanora
Project scope and budget
The City’s existing excess recycled water release system at the Seaway is nearing capacity.
The Long Term Recycled Water Release Plan aims to provide a city wide solution to cater for
excess recycled water to support continued growth and economic development of the City.
The Elanora component consists of pump station and pipeline upgrades from the Elanora
Sewage Treatment Plant.
The revised budget for 2020-21 is $9.35 million.
Achievements for January
• Continuing with building repairs and modification works to the Recycled Water
Booster Pump Station building at Elanora.
• Concrete crack repair carried out in Recycled Water Booster Pump Station building at
Elanora.
• Blockwork construction for the main building at Cassowary Drive.
• Concrete pour for the suspended roof slab for the electrical room at Cassowary Drive.
• Pouring of the concrete slab for the above ground pipework and dismantling and re-
erection of the sampling shed at Merrimac.
Major issues
• Delays experienced in receiving the electrical design package from the contractor.
Financial Performance
Year to Date Whole Project
Forecast ($) 3,239,786 Budget ($) 13,914,979
Expenditure ($) 3,188,884 ITD Expenditure ($) 4,253,863
Variance ($) (50,902) Remaining ($) 9,661,116
Variance (%) (2%) Remaining (%) 69%799th Council Meeting 9 March 2021 33
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Pimpama STP Stage 2 Works
Project scope and budget
This project involves the construction of the Pimpama Sewage Treatment Plant Stage 2
works to accommodate for an additional 71,300 Equivalent Person (EP) growth in the
Pimpama Catchment and diverted Stapylton Catchment area as identified through the LGIP
process. The major elements of the recommended Stage 2 upgrade includes; inlet works
expansion, full phosphorus and nitrogen removal (Biological Nutrient Removal), activated
sludge process, sludge handling upgrade, tertiary treatment to maintain existing water quality
and recycled water pump station upgrade.
The revised budget for 2020-21 is $1.64 million.
The project remains on hold as negotiations continue with Logan City Council to continue to
transfer the Stapylton load to Loganholme STP.
Achievements for January
• A minor Scope of Works has been developed to mitigate potential impacts of the
delay of the major Stage 2 Upgrade.
Major issues
No major issues.
Financial Performance
Year to Date Whole Project
Forecast ($) 57,124 Budget ($) 89,397,299
Expenditure ($) 67,090 ITD Expenditure ($) 2,139,389
Variance ($) 9,966 Remaining ($) 87,257,910
Variance (%) 17% Remaining (%) 98%799th Council Meeting 9 March 2021 34
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.9 Other Financial Activities
5.9.1 Community Service Obligations
In accordance with Sections 23 and 24 of the Local Government Regulation 2012:
…The cost of carrying out community service obligations, less any revenue received from
performing the obligations must be treated as revenue for the significant business activity.
{Section 23} (and)
…A community service obligation is 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.
5.9.1.1 Community Service Obligations – Catchment Management Unit
Catchment Management Unit protects human health in recreational waters by monitoring the
state of the City’s water environments and providing rapid reporting of the health status of
primary contact recreation areas. It supports the maintenance of legislated environmental
values in the City’s water environments through catchment planning and the implementation
of appropriate environmental restoration actions.
Catchment Management activities are funded by a combination of a Community Service
Obligation (CSO) and the Water and Sewerage Services’ general operating budget.
At adoption of Council’s initial budget, the total value of the CSO is $2,042,705 comprising
“Catchment Activities” and “SLA for Corporate Services”, as shown in Table 4. This value
remains unchanged following the adoption of the September budget review.
The remaining activities outlined in Table 4 are those funded from the Water and Sewerage
Services’ general operating budget.
CSO Catchment Management activities are progressing in line with expectations. Water and
Sewerage funded activities are below forecast with expenditure to ramp up during the
remaining half of the year.
Initial Revised YTD
Catchment Management Unit - Spent
Budget Budget Actuals
Operational (%)
($'000s) ($'000s) ($'000s)
Catchment Activities 1,594 1,594 906 56.8%
SLA for Corporate Services 448 448 262 58.3%
Subtotal CSO Funded 2,043 2,043 1,168 57.2%
CMU Operations 400 516 178 34.6%
Healthy Waterways Contribution 321 121 0 0.0%
WaterSafe Monitoring & Investigations 150 250 28 11.3%
Laboratory Testing Services 550 450 230 51.1%
Community Action Support 220 220 206 93.5%
Subtotal Water and Sewerage Funded 1,641 1,557 642 41.3%
Total 3,683 3,599 1,810 50.3%
Table 4 – Catchment Management Unit ($‘000’s)799th Council Meeting 9 March 2021 35
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.9.1.2 Community Service Obligations – Infrastructure Charges Waivers
Detailed information is not currently available with regard to the permanent discounting of
infrastructure charges for “existing buildings”, “expansion” and “family accommodation”
development applications.
For the 2020-21 year to date, no foregone revenue in the form of waived infrastructure
charges under the City’s Non-Profit Community Group Rebate system has been identified.
5.9.2 Water and Sewage Leakage Relief
The objective of this policy is to ensure uniform and transparent application of relief from
water usage charges and sewage volumetric charges in cases of proven concealed leakage.
Revenue Services administers the Policy on behalf of the City. Table 5 provides summary
level detail of the leakage remissions approved up to 31 January 2021. A total of 74
concealed leak applications were received in January 2021 with 42 receiving approval, and
paid remissions totalling $0.026 million.
For the year to date, there are eleven remissions greater than $10,000 which total
$0.35 million or 32.5% of total remissions. Details of remissions are provided separately to
Councillors.
The budget for concealed leakage remissions has been reduced from $2.50 million in the
Initial Budget to $2.11 million in the September budget review.
Remissions paid to January are 12.4% below the revised budget.
Water Sewer Total
Number Average
Total Leak Remission Remission Remission
Month of Loss per
Volume (kl) Value Value Value
Approvals Account (kl)
($'000) ($'000) ($'000)
Jul-20 205 63,891 312 119 10 129
Aug-20 261 74,966 287 136 37 173
Sep-20 360 176,380 490 199 130 328
Oct-20 253 82,759 327 134 81 215
Nov-20 98 52,732 538 39 153 192
Dec-20 29 6,493 224 12 4 16
Jan-21 42 10,566 252 24 1 26
Total 1,248 467,787 375 663 415 1,078
Budget provided for year 1,499 611 2,110
Proportion of budget approved to date 44.2% 68.0% 51.1%
Table 5 – Summary of Concealed Leakage Remissions799th Council Meeting 9 March 2021 36
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
Table 6 illustrates that 87.3% of applications approved to date relate to residential
customers, representing 47.0% of the value of remissions provided.
Customer Type Approvals Total Leak Value of Remissions Provided
Volume Water Sewer Total
# % %
(kl) ($'000) ($'000) ($'000)
Residential Customers
Owner Occupied premises 775 62.1% 202,612 367 4 371 34.4%
Rental/Tourist Rental premises 314 25.2% 84,769 107 29 136 12.6%
Total Residential Customers 1,089 87.3% 287,381 474 34 507 47.0%
Non-Residential Customers 159 12.7% 180,406 189 382 571 53.0%
1,248 100.0% 467,787 663 415 1,078 100.0%
Proportion of Total Remissions 61.5% 38.5%
Table 6 – Summary of Concealed Leakage Remissions by Customer Type and Product
Graph 2, depicts the value of remissions provided over the past four years, compared to the
value provided to date for 2020-21. The 2019-20 year represents the first year of rolling
billing however there were five usage periods billed as part of the transition.
As previously communicated to Council, the policy is due for renewal and will be implemented
in the 2021 calendar year.
Graph 2 – Concealed Leakage Remissions Paid799th Council Meeting 9 March 2021 37
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
5.10 Future Budgetary Trends
There are no major future budgetary trends.
6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND
OPERATIONAL PLAN
Not Applicable.
7 FUNDING AND RESOURCING REQUIREMENTS
Not Applicable.
8 RISK MANAGEMENT
The following risk assessment applies to this report:
Risk Number Description
Risk No. Failure to achieve a sustainable long term financial position leading
CO000435 to negative impacts on Council’s ability to deliver on its key focus
area commitments.
9 STATUTORY MATTERS
Not Applicable.
10 COUNCIL POLICIES
The following policies have been taken into account when preparing this report:
§ Gold Coast Water Capital Structure and Community Returns Policy.
§ Revenue Policy.
§ City of Gold Coast Budget Review Policy.
§ Water and Sewage Leakage Relief Policy.
11 DELEGATIONS
Not Applicable.799th Council Meeting 9 March 2021 38
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 5 (Continued)
WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT
31 JANUARY 2021
FN334/252/21(P1)
12 COORDINATION AND CONSULTATION
Name and/or Title of the Directorate or Is the Stakeholder Satisfied
Stakeholder Consulted Organisation With Content of Report and
Recommendations (Yes/No)
(comment as appropriate)
Tanya Cooper Office of the OCOO Yes
Management Accountant
13 STAKEHOLDER IMPACTS
Not Applicable.
14 TIMING
Not Applicable.
15 CONCLUSION
Water and Sewerage Services Earnings Before Interest and Tax (EBIT) for the period to
31 January 2021 is 8.8% or $12.69 million above forecast.
This is predominantly the result of capital revenue being $2.42 million (7.2%), operating
revenue being $3.25 million (1.0%) above forecast and total controllable operating
expenditure being $4.77 million (6.7%) below forecast.
Performance is continually monitored to ensure that controllable expenditure is minimised.
This is achieved through rigorous internal processes which include the detailed review of all
projects to ensure that only prudent and efficient expenditure is incurred.
16 RECOMMENDATION
It is recommended that Council resolves as follows:
That Council notes the Water and Sewerage Services Monthly Financial Report for the
period ended 31 January 2021.
Author: Authorised by:
Karen O’Brien Paul Heaton
Manager Business Performance Director Water and Waste
19 February 2021
OBJECTIVE REF: A63995103
COMMITTEE RECOMMENDATION WWE21.0303.004
moved Cr Tozer seconded Cr PJ Young
That Council notes the Water and Sewerage Services Monthly Financial Report for the
period ended 31 January 2021.
CARRIED799th Council Meeting 9 March 2021 39
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
Attachment 5.1
Financial Management Report – 31 January 2021
Water & Sewerage Services Year to Date Full Year
Income Statement Act Revised Var Var Initial Revised
Budget Budget Budget
31 January 2021 $000's $000's $000's % $000's $000's
Revenue
Access Charges 149,511 150,008 (498) (0.3%) 258,943 258,943
Usage Charges Revenue 161,063 157,540 3,524 2.2% 267,989 267,599
Less: Concealed Leakage (1,078) (1,231) 152 12.4% (2,500) (2,110)
Interest on Outstanding Rates 421 391 30 7.8% 670 670
Interest on Investments 1,784 1,790 (6) (0.3%) 5,660 3,069
Fees and Charges 3,016 2,970 46 1.5% 5,389 4,979
Grants & Subsidies Revenue 90 90 - 0.0% 0 180
Total Operating Revenue 314,807 311,558 3,249 1.0% 536,150 533,329
Operating Expenditure
FLOW-DEPENDENT EXPENDITURE
Bulk Water Purchases 115,299 114,115 (1,184) (1.0%) 188,353 188,353
Electricity 6,222 7,300 1,078 14.8% 12,519 12,519
Biosolids Disposal 3,084 3,249 165 5.1% 5,673 5,673
Chemicals 2,201 2,483 283 11.4% 4,250 4,257
Total Flow -Dependent 126,806 127,148 342 0.3% 210,794 210,802
Expenditure
Operating Revenue net of Flow - 188,001 184,411 3,591 1.9% 325,357 322,528
dependent Expenditure
Gross Margin 0.6 0.6 0.6 0.6
CONTROLLABLE EXPENDITURE
Employee Expenses 28,372 29,847 1,476 4.9% 49,045 51,340
Materials and Services 17,528 19,033 1,505 7.9% 37,320 34,766
Council Corporate SLAs 11,770 11,770 (0) (0.0%) 20,177 20,177
Internal Directorate SLA (3,179) (3,179) - 0.0% (5,450) (5,450)
Fleet and Plant 5,542 5,074 (467) (9.2%) 8,755 8,782
Sew age Treatment Charge 1,784 2,333 550 23.6% 4,000 4,000
Insurance Premiums 1,103 1,103 - 0.0% 1,891 1,891
Other Expenditure 1,461 1,458 (3) (0.2%) 2,500 2,500
Consultants 1,781 3,472 1,690 48.7% 2,037 5,095
Regulatory Expenses 9 33 23 71.2% 143 143
Total Controllable Expenditure 66,171 70,945 4,774 6.7% 120,416 123,243
Total Operating Expenditure 192,977 198,092 5,115 2.6% 331,210 334,044
Loss on Sale of Assets 314 2,222 1,908 85.9% 5,000 5,000
Net Profit before Capital Revenue 121,516 111,244 10,272 9.2% 199,941 194,285
Capital Revenue
Developers Contributions 27,333 20,417 6,916 33.9% 35,000 35,000
Contributions and Donations Received (0) 0 (0) 0.0% 0 0
Contributed Assets 8,837 13,333 (4,497) (33.7%) 30,000 30,000
Total Capital Revenue 36,169 33,750 2,419 7.2% 65,000 65,000
EBITDA 157,685 144,994 12,691 8.8% 264,941 259,285
Depreciation 59,063 57,633 (1,429) (2.5%) 98,800 98,800
EBIT 98,622 87,360 11,262 12.9% 166,141 160,485
Interest Expense (QTC Loan) 1,150 1,096 (54) (4.9%) 1,879 1,879
Interest Margin Expense 514 514 0 0.0% 881 881
Shareholder Interest Expense 51,814 51,814 - 0.0% 88,824 88,824
Income Tax Equivalents 23,087 19,096 (3,991) (20.9%) 32,682 32,682
NPAT 22,058 14,841 7,217 48.6% 41,875 36,219
Contribution - Whole of City 10,500 10,500 0 0.0% 18,000 18,000
projects
Retained earnings im pact after 11,558 4,341 7,217 166.3% 23,875 18,219
participation return799th Council Meeting 9 March 2021 40
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 6 WATER AND WASTE
WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 JANUARY 2021
FN334/252/20(P6)
Attachment 1: Detailed Income Statement
1 BASIS FOR CONFIDENTIALITY
Not Applicable.
2 EXECUTIVE SUMMARY
Not Applicable.
3 PURPOSE OF REPORT
This report presents the Water, Waste and Energy Committee with Waste Services 2020-21
financial performance as at 31 January 2021. Comparisons are against Council’s 2020-21
September revised budget.
4 PREVIOUS RESOLUTIONS
Not Applicable.
5 DISCUSSION
5.1 High Level Financial Summary
Waste Services Financial Year to Date Full Year
Revised Initial Revised
Summary Actual
Budget
Var Var
Budget Budget
31 January 2020 $M $M $M % $M $M
Operating Revenue 65.57 66.93 (1.36) (2.0%) 111.37 114.16
Operating Expenses 44.93 47.07 2.14 4.6% 87.48 87.84
Total Operating Profit 20.64 19.86 0.78 4.0% 23.89 26.32
Loss on Sale of Assets 0.00 0.00 0.00 0.0% 0.00 0.00
EBITDA 20.64 19.86 0.78 4.0% 23.89 26.32
Table 1 - Waste Services - Year to Date Financial Summary
Table 1 presents the financial position for Waste Services as at 31 January 2021 as
$0.78 million (4.0%) above forecast.
Variances will be discussed in the following paragraphs with a detailed Income Statement
contained in Attachment 4.1 to the report.
5.2 Operating Revenue ($1.36 million Unfavourable)
Operating revenue is $1.36 million behind forecast and is influenced by the following:
§ Waste Utility Revenue ($0.71 million Unfavourable): Representing just a little over
1% variance, this revenue stream is tracking very close to forecast. The variance is
predominantly due to growth being slightly below forecast growth.799th Council Meeting 9 March 2021 41
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 6 (Continued)
WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 JANUARY 2021
FN334/252/20(P6)
§ Waste Levy Receipts ($0.33 million Unfavourable): The variance is due to a
combination of the Waste Levy driving positive waste behaviour as well as the impact
of COVID-19, resulting in a steady decline in volumes of commercial and industrial
waste to landfill and subsequently waste levy receipts. The budget will be closely
monitored and adjusted at the March budget review if required.
§ Gate Fees ($0.67 million Unfavourable): Gate fees are tracking below forecast as a
result of commercial customers reducing their volumes of waste to landfill. This trend
has been occurring since the introduction of the waste levy and has also been
impacted by business closures due to COVID-19. Waste volumes will be closely
monitored and will be adjusted at the March budget review if required.
§ Recycling Revenue ($0.25 million Favourable): This variance predominantly
relates to three commodities:
• Revenue from scrap steel sales – during the early stages of the COVID-19
pandemic scrap metal was stockpiled whilst contractors were not allowed on
site. At the beginning of this financial year the stockpile was cleared resulting
in this higher than normal revenue for the period.
• Cardboard commodity rates have increased more than expected leading to a
small revenue stream, where the likelihood for revenue was not initially
forecast.
• Container Refund Scheme was forecast to slowly decrease as residents take
up the opportunity to exchange containers for change, however there was an
unexpected increase in the first quarter of the year as more eligible containers
were recovered through yellow top bins.
Revenue will be closely monitored and will be adjusted at the March budget review if
required.
5.2.1 Number of Waste Collection Bins in Service
Table 2 presents the number of waste collection bins in service as at 31 January 2021. A
customer may have multiple services of a bin on a weekly basis.
Year to Date
Waste collection bins Bins in service Bins in service Bin increase\
as at 31/1/2021 as at 30/06/2020 (decrease) %
General w aste (w eekly)
Domestic w heelie bins 196,568 195,581 987 0.5%
Commercial w heelie bins 7,629 7,096 533 7.5%
Bulk bins (domestic and commercial) 3,132 3,106 26 0.8%
Total w eekly general w aste services 207,329 205,783 1,546 0.8%
Recyclable w aste (w eekly)
Commercial w heelie bins 433 401 32 8.0%
Bulk bins (domestic and commercial) 1,729 1,701 28 1.6%
Total w eekly recyclable w aste services 2,162 2,102 60 2.9%
Recyclable w aste (fortnightly)
Domestic w heelie bins 188,901 187,775 1,126 0.6%
Commercial w heelie bins 3,171 2,705 466 17.2%
Total fortnightly recyclable w aste services 192,072 190,480 1,592 0.8%
Other (fortnightly)
Green w aste 42,384 39,722 2,662 6.7%
Total fortnightly other services 42,384 39,722 2,662 6.7%
Food w aste (w eekly)
Bulk bins (domestic and commercial) 40 40 0 0.0%
Table 2 - Waste Collection Bins in Service799th Council Meeting 9 March 2021 42
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 6 (Continued)
WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 JANUARY 2021
FN334/252/20(P6)
As part of the Utility Billing System Stabilisation Program, a waste data integrity review is being
undertaken. This review will ensure that services are correctly allocated as Residential or
Commercial, along with the associated waste levy application. As a result, domestic bins will
show only small growth percentages in some months, whilst commercial services will show
more positive growth numbers which is also coupled with a bounce back from reduced services
during COVID-19 shutdowns.
5.3 Operating Expenditure ($2.14 million Favourable)
At a whole business unit level, operating expenses are $2.14 million (4.6%) below forecast.
The major contributors to this variance are discussed below.
§ Materials and Services ($1.26 million Favourable): The main reason for this
variance is due to the following:
• Materials Recycling Facility (MRF) - Recycling volumes from yellow top bins
processed by the Visy MRF have dropped by 8% YTD on forecast. The
Container Refund Scheme has contributed to a decrease in processing costs.
• Wheelie Bin Acquisitions - Wheelie bin purchases have been lower than
forecast due to lower than forecast growth. In addition, bins for the commercial
food waste trial are below forecast due to the reduced uptake of the program
due to COVID-19.
• Concrete Crushing – A new contract was awarded in June 2020 and
services resumed in August. Expenditure is expected to meet budget by year
end.
• Commercial Food Waste - Collection and processing costs are lower than
forecast due to a slower than anticipated bounce back to normal services after
COVID-19 shutdowns. The budget is being closely monitored and will be
adjusted at the March budget review if required.
§ Waste Collection Payments ($0.84 million Favourable): The majority of this
variance relates to the bulky kerbside collection service. The ‘on-demand’ service
was extended city wide in January 2021. It is anticipated that as the service is
promoted and becomes more visible, customer uptake will increase. In addition,
general waste collections are slightly below forecast due to lower than forecast
growth.
§ Fleet and Plant ($0.38 million Favourable): External Fleet and Plant hire at the
Coomera Waste and Recycling Centre has reduced from initial site set up.
Appropriate adjustments will be proposed as part of the March budget review.
§ Waste Levy Payments ($0.33 million Unfavourable): Waste Levy Payment to the
State Government is higher than forecast by 3.92%. An increase in waste volumes
from other Directorates of Council has resulted in the increase.799th Council Meeting 9 March 2021 43
Water, Waste and Energy Committee Meeting 3 March 2021 Adopted Minutes
ITEM 6 (Continued)
WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 JANUARY 2021
FN334/252/20(P6)
§ Consultants ($0.18 million Unfavourable): Annual and monthly pump monitoring at
Stapylton landfill is being undertaken by a specialist consultant. The budget for this
body of work was omitted from the initial budget and will be requested as part of the
upcoming March budget review. The overall consultancy budget was reduced at the
September budget review due to the planned Waste Data Integrity Review being
merged and delivered with the Utility Billing System Stabilisation project.
5.4 Capital Program
The revised 2020-21 Waste Services capital program consists of sixteen projects totalling
$8.70 million.
Waste Services Capital Expenditure
as at 31 January 2021
Product Year to Date Full Year
Initial
Actual Revised Budget Variance Variance Revised Budget
Budget
Expenditure ($M) ($M) ($M) % ($M)
($M)
Landfills 2.50 3.18 (0.68) (21%) 3.95 2.85
Waste and Recycling Centres 0.90 3.53 (2.63) (74%) 4.75 2.88
Total Capital 3.40 6.71 (3.31) (49%) 8.70 5.73
Table 3 – Capital Expenditure ($ Million)
Year to date capital expenditure of $3.40 million represents a variance of 49%, or $3.31
million below the year to date revised forecast of $6.71 million. The following projects are the
main contributors to this variance:
Product Variances
Landfills
The landfill program is $0.68 million (21%) below forecast. The following project is the main
contributor to this variance:
• Stapylton Landfill Main Access Upgrade: $0.73 million below forecast.
Project impacted by design delays due to site and operational requirements.
Despite the construction delay, it is anticipated there will be a request for additional
funding as part of the March budget review 2021 budget review to allow for the
required modifications. The project is still on track for completion by 30 June 2021.You can also read
