Central Highlands Regional Council 2019-20 operational plan Quarter 2 Performance Report

Central Highlands Regional Council centralhighlands.qld.gov.au CEO's foreword Quarter 2 Performance Report 2019-20

Council is committed to continuous improvement, a sustainable future and efficient investment in our communities.

The council team has performed solidly The finalisation of the $16M investment The target of 10-15% diversion of over the second quarter of the 2019- in the airport runway and general aviation recoverable material from landfill is 2020 financial year. area at the Emerald Airport is near. This on track with a 10% reduction being critical connectivity infrastructure will identified to date. The implementation of Safe workplaces and safe work practice now remain operational and continue resource recovery areas at designated continue to be the focus. A concerted to support economic growth through landfills has assisted this outcome. effort to achieve greater mobility for visitation, new business, and liveability the safety team is underway, which will attraction. Quarter 3 will focus on evolving the enable more practical training on-site to project governance model; workplace maintain and grow awareness that safety The works are jointly funded by the health and safety; and delivering project is everyone’s responsibility. Australian Government, and service commitments. Government and council. The projects Council’s new enterprise business have benefitted the region economically It is with some excitement that eight system went live on the 11 November as 57% of the general aviation project new trainees and two new apprentices 2019, which is a major milestone for and 17% of the runway project spend was commence their council journey. the organisation. This new software ‘local’. will deliver efficiencies in how council As a people-based organisation, council business is conducted and the A total of 20 youth events were delivered will continue to ensure its people have interaction that’s had with communities. with 1738 attendees in ten communities the right capabilities to deliver priorities across the region to support the youth now and into the future. In terms of financial health, the strategy and action plan. More than 60 sustainability indicators are within target, Get Out and Get Active events have been except for the operating ratio, which is delivered throughout the region with being closely monitored. 1022 attendees. Council has engaged the Local The Waste Reduction and Recycling Plan Government Association of Queensland amendment was adopted by council on to analyse its current and past energy 8 October 2019. The waste levy-ready Scott Mason, CEO consumption to identify actions that finalisation of capital projects continues will reduce costs and its environmental with surveillance camera installations impact. across 14 sites now complete with the Council’s audit committee adopted a outstanding two sites to be completed in three-year internal audit plan to ensure January 2020. the governance systems and processes Round 3 of the waste drop-in are fraud-resistant and trustworthy. consultation sessions were completed Advocacy for local roads of regional across the region in October 2019. Bin significance and for joint procurement stations were locked by 31 December and shared training initiatives have 2019 in line with the plan, and key continued through the Bowen Basin drop-offs arranged for the Willows and Region Road and Transport Group. Bauhinia areas.

2 2019-20 Quarter 2 Performance Report Key Priority 1: Strong vibrant communities

Each of our thirteen communities is unique, but they are the heart of the . We intend to inspire community spirit and promote a sense of belonging by addressing liveability, empowering local influencers, stimulating cultural diversity and pursuits, promoting healthy lifestyles, encouraging young people and supporting local prosperity by robust advocacy through well- planned support and funding.

Author Eunice Day at Nogoa November

64 20 3 get out get active art exhibitions in events held youth events emerald

sister city sharing culture Youthinc Christmas Party Odd Socks Day 2019 Odd socks were worn to work on the Students and chaperones of the Sister Forty Youthinc members and their 4 October 2019 to show support for City delegation from Central Highlands families (100 people in total) attended the stamping out of the stigma around to visit Ichinoseki, Japan in 2020 were the Blackwater Youthinc break-up mental health. selected. Fundraising activities are being Christmas party on 10 December 2019, planned for the trip. which is held annually to celebrate the Central Highlands Regional Council delivery of activities and events for young partnered with Anglicare Central Libraries at Nogoa November people across the region. Queensland, Emerald Police Citizen Youth Club and Six members received a three-year Library officers and a local author attended Rural Health to deliver a 'Odd Socks service badge, and three received a the Nogoa November event. The’pop-up’ Day and Laser Tag' event at the Emerald five-year service badge to acknowledge library gazebo had 118 visitors and gave Police Citizen Youth Club with 160 long-term commitment and years of out 55 library goodie bags. people attending. service to Youthinc. Three members Activities offered were Fitzroy River were farewelled because they have puzzles, boomerang scratching, completed school and are moving on to dreamtime story readings and colouring- other ventures. CRG Regional Round Up in. Local Aboriginal elder, storyteller and This quarter, the community reference artist, Eunice Day, joined library staff at groups compiled a list of their the gazebo promoting her picture story green for headspace achievements for 2019 to present the book, The Coloured Echidna. On the 8 November 2019, council joined regional roundup to celebrate what’s with more than 20 organisations to go important to each of the communities. Healthy Active Highlanders green for the day and show support for a Each group benefited from hearing Headspace in the Central Highlands. others’ aspirational goals and successful Planning commenced for the return of outcomes. the Healthy Active Highlander Program The day ended with a movie night at in 2020; a free 12-week program the Emerald Police Citizens Youth Club conducted by qualified instructors that hosted by council, Anglicare Central encourages people to get out and get Queensland, Emerald Police Citizens active. Youth Club and Central Queensland Rural Health.

3 2019-20 Quarter 2 Performance Report Emerald Art Gallery Community projects finalised Operational Plan Key Priority 1 Artist Jet James presented a talk as part Emerald skate park - The refurbishment statistics: of his exhibition, Fading Light on display of the Emerald skate park was during October. Attendees were intrigued completed and handed over to the The following table represents the status with the variety of techniques that Jet community, incorporating new pathways, of these activities as at the end of the uses to create his artwork. shelters, and resealed surface. second quarter: Rolleston Cricket Clubhouse - A newly Our Strength during the Drought LEGEND TOTAL ACTIONST exhibition opening event was held 1 constructed clubhouse was delivered for November 2019 with special guest Anne the Rolleston community. ON TARGET 10 Smith. This exhibition was created from Emerald Rotary Park upgrades – the the works of local photographers from all abilities park received a range of MONITOR 4 the Barcaldine region that captured upgrades to the facility including BELOW TARGET 2 images in participation with Anne Smith’s perimeter fencing, new access paths to PhD research project. The research the toilets and soft fall protection for the NOT PROCEEDING 0 surrounded the potential positive playground. COMPLETED 5 impact of images in building resilience, Bauhinia Hall – the external veranda wellbeing and capacity building during extensions and disability ramp TOTAL 21 the drought. extensions were finalised on the Bauhinia KEY PRIORITY 2 COMPLETION STATUS The Steel and Glass, Pain and Past Hall, providing greater outside space and exhibition was held in December, improved all abilities access. KEY PRIORITY 1 COMPLETION STATUS displaying the talents of local artists Lorretta Horn, Raelene Bock and community grants Michelle Gray. The exhibition contained Community groups were awarded more 9% 24% a variety of artworks using diverse than $143K in the second community 19% materials from glass and wire, to paint grants round. Twenty-seven applications and canvas. were received and 19 were successful. old blackwater pool site Emerald Arts Precinct 48% A final draft concept of the Emerald Arts A draft masterplan of the old Blackwater Precinct re-development was presented pool precinct re-development was to council. It was determined to place the presented to council. Community project on hold until traffic management engagement on this masterplan will be issues in the central business district are completed in the next quarter. addressed.

4 2019-20 Quarter 2 Performance Report Key Priority 2: Building and maintaining quality infrastructure

The cornerstone of a well-planned, functioning and sustainable region is the development and maintenance of its infrastructure and assets. We will continue to apply best-practice systems and technology to audit, plan, deliver and maintain the most cost-effective and efficient roads, waste, water, wastewater and land management facilities and services with the security of a sustainable future as a priority. Egerton Street in Emerald came alive with lights.

87% 19 285km sport & recreation clubs trees strung with lights rural roads graded attended a game plan workshop

game plan waste levy Operational Plan Key Priority 2 The implementation phase of the Waste levy projects were completed statistics: Game Plan is underway. Licences are across 18 resource recovery centres, The following table represents the status being issued to clubs for tenure over including fencing, dongas for newly community facilities to empower clubs of these activities as at the end of the staffed sites, surveillance cameras, second quarter: and increase availability of the provision signage, and new bins. Meetings have of sport and recreation services to the been held with residents to manage the LEGEND TOTAL ACTIONST community. delivery of keys to now-locked facilities to minimise inconvenience caused by ON TARGET 14 this change in service delivery. roads MONITOR 2 Road rehabilitation projects were BELOW TARGET 3 completed on Bauhinias Road, Gem Road dingo landfill and Mulcahys Road. Rehabilitation works NOT PROCEEDING 0 have commenced on Mayfair Drive and Work at the old Dingo landfill site Arcadia Valley Road. was completed in accordance with a COMPLETED 3 rehabilitation plan to prepare for its TOTAL 22 Gravel re-sheeting has been completed closure in June 2020. on Wyuna Road and Tanderra Road Black Gully opened KEY PRIORITY 2 COMPLETION STATUS water utilities A $20.5M upgrade to the Black Gully As part of an asset renewal program, a Wastewater Treatment Plant was 14% 14% valve and hydrant replacement program officially opened in November. The plant in the water networks across the region, can now service a population of 10,000. 9% including Anakie, Blackwater, Bluff, Capella, Emerald, Rolleston, Rubyvale, Springsure and Tieri commenced this asset inspections quarter. Year one of a two-year asset condition 63% inspection program continued progress as part of the 10-year infrastructure plan.

5 2019-20 Quarter 2 Performance Report Key Priority 3: Supporting our local economy

The Central Highlands’ region has abundant natural assets that provide opportunity for diversity in economic development. We recognise the importance of our role to explore, facilitate, advocate and promote to ensure the region grows and thrives.

A significant runway maintenance program was completed.

1st 25,551 737 stone mastic asphalt head of cattle through businesses supported runway in the emerald saleyards

Safety at Duaringa Airport has been Operational Plan Key Priority 3 development incentive improved with the installation of a The Regional Economic Development wildlife fence. Similar works are planned statistics: Incentives Policy was changed to for Dingo and Capella. The following table represents the status integrate residential subdivision of these activities as at the end of the A double decker dump ramp was incentives for applications lodged after 1 second quarter: installed at the Emerald Saleyards, July 2019. This means people can apply providing greater efficiencies for the for an incentive of up to 100% refund customers, contractors and saleyards' LEGEND TOTAL ACTIONST for application fees and 70% refund of staff. identified infrastructure fees. ON TARGET 6 Cattle throughput for this quarter (25,551 MONITOR 3 head) are up on the same period last commercial activities year (24,050 head) and up significantly BELOW TARGET 2 on revised budget (19,089 head). The airport is well on its way to deliver its NOT PROCEEDING 0 capital budget. Feed sales and dipping are exceeding COMPLETED 2 all expectations: up 230% and 117% on 24-hour work on aircraft manoeuvring budget respectively. TOTAL 13 areas saw no scheduled services or medical evacuations being impacted. Capital spend has slowed awaiting planning approval for the construction of KEY PRIORITY 3 COMPLETION STATUS A program commenced to replace the the spelling yards. This project constitutes airport’s ageing car park equipment. This 56% of total capital expenditure budget will significantly increase service levels for the year. 15% 16% to customers. Quarry sales for the quarter (54,231 The enlargement of the general aviation tonnes) are up significantly on the same 23% apron commenced and has reached all period last year (26,603 tonnes) as well as its planned milestones. This project is on revised the budget (31,197 tonnes). 46% on budget and on schedule, due to be completed during March 2020.

6 2019-20 Quarter 2 Performance Report Key Priority 4: Protecting our people and our environment

Living in the Central Highlands is a choice to appreciate healthy, attractive and safe surroundings. Our primary responsibility as caretaker of the built and natural environment is to ensure the confidence of the community that the amenity of the region is maintained by managing appropriate growth and development; protecting the natural landscape and waterways; promoting community health and safety; and building resilience. 180 sales were held for the annual Garage Sale Trail.

51 180 3200+ days the local disaster group was active garage sales held registered dogs to date

GST estimates that 37,192kg of items disaster management were reused rather than going to landfill. Operational Plan Key Priority 4 The Central Highlands Regional Council statistics: Local Disaster Management Group nogoa november The following table represents the status (LDMG) was activated for 51 days to Nogoa November was held on the 30 of these activities as at the end of the provide assistance to people dealing November and was a great day in the second quarter: with fire activities within the region. Emerald Botanic Gardens. Once again, the event was well attended and offered LEGEND TOTAL ACTIONST The first bushfire management plenty of fun and informative activities community workshop was held in and stalls for the whole family. ON TARGET 13 Dingo in October. Landholders used the day to voice concerns, ask questions MONITOR 2 and understand the frameworks. tip shop sale BELOW TARGET 1 Representatives from the Queensland The Emerald Tip Shop hosted an all-day, NOT PROCEEDING 0 Government were on hand to provide $20 all-you-can-carry sale to support advice and answer questions. the annual Clean up the World weekend COMPLETED 5 and to encourage reuse and recycling in drinking water report the Central Highlands. TOTAL 21 The Drinking Water Quality Management Plan Annual Report for the year ending business and innovation KEY PRIORITY 4 COMPLETION STATUS 30 June 2019 was submitted to the Department of Natural Resources, Mines A workshop with councillors presented 9% 5% and Energy. the latest draft of the business and 24% innovation planning scheme amendment. This amendment will renew the current garage sale trail planning scheme and address concerns The annual garage sale trail (GST) event raised by council and the development saw 180 sales registered. GST statistics community. 62% reveal that 529 residents were involved as sellers or shoppers over the weekend.

7 2019-20 Quarter 2 Performance Report Key Priority 5: Leadership and governance

The communities of the Central Highlands have a right to expect its local government authority to apply transparent and accountable processes to administer the region. We accept and embrace this responsibility by exploring efficiencies through advocacy, technology, collaboration and responsible financial management. Further, we commit to keeping our community informed about our activities and performance and employing robust governance policies and procedures to ensure legislative compliance and organisational integrity. The 2019-20 Budget was adopted in this quarter.

Calls to 86% Customer calls to customer Service 50 service Resolved at 1st Point of 3830 entries for light up your town Contact

Forty media releases were published, and Communications, events and 153 Facebook posts saw 5623 reactions. Operational Plan Key Priority 5 advocacy The 2018-19 Annual Report was adopted. statistics: Hot news topics for the quarter included The following table represents the status the changes to the waste transfer and risk management framework of these activities as at the end of the second quarter: bin stations throughout the region; The risk management framework was the annual Nogoa November event reviewed. celebrating the Nogoa River in Emerald; LEGEND TOTAL ACTIONST and stock travelling through the district on the stock routes. ON TARGET 16 one council system Major project work for the quarter MONITOR 3 Phase 1 of this project was launched included the Turn on Technology One on 1 November. It has changed the BELOW TARGET 1 launch, advocacy for Central Queensland technology system used for corporate Regional Organisation of Councils and NOT PROCEEDING 0 business such as finance, supply chain the 2020 state government election, management, budgeting, records COMPLETED 1 water restrictions, Christmas activities, management, human resources and and Australia Day 2020. payroll, property and rating. TOTAL 21 KEY PRIORITY 5 COMPLETION STATUS

5% 5% 14%

76%

The Turn on Technology One project went live on 11 November.

8 2019-20 Quarter 2 Performance Report Key Priority 6: Our organisation

Central Highlands Regional Council is one of the largest employers in the region. We strive to be an employer of choice. Our people are chosen for their ability, experience, dedication to quality service delivery, and conformity with our values. We support their endeavours by providing a safe and healthy workplace where self improvement and innovation are fostered and rewarded.

Outdoor crew installing lights in Egerton Street.

66 4420 attended tech savvy training New yellow personal protective sessions recorded on the council clothing issued careers website page

Opportunities exist for safety advisors to tech savvy training work on site with leaders and teams to Operational Plan Key Priority 6 apply theoretical learnings towards the Tech Savvy training was well attended practical mitigation and management of this quarter as 66 employees undertook statistics: risk. this basic course on how to use The following table represents the status smartphones and social media. The of these activities as at the end of the training, which is an action of the People second quarter: Plan, will help with the transition to the work area inspections Technology One programs. Safety advisors conducted 15 work area LEGEND TOTAL ACTIONST inspections. Nine contractor safety spot Enforceable undertaking checks were conducted. ON TARGET 14 MONITOR 2 An external contractor management Our organisation collected goods and donated systems audit was undertaken in $1500 to the Linking Alms Christmas Appeal. BELOW TARGET 1 November. An action plan was developed NOT PROCEEDING 0 comprising of 21 actions to meet the audit recommendations, which are due for COMPLETED 1 completion before April 2020. TOTAL 18 WH&S incidents A total of 170 incidents were reported to 31 KEY PRIORITY 6 COMPLETION STATUS December 2019 and 88 investigations have been completed. 6% 5% In November and December, 19 incidents were 11% reported of which 10 resulted in an injury. Council is implementing structured early intervention programs aimed at the recruitment cycle and the management of existing employee injury and illness to 78% improve the overall health and wellbeing of employees.

9 2019-20 Quarter 2 Performance Report Quarter 2 Performance Report 2019-20

2019-2020 Operational Plan Performance The overall operational plan results for the second quarter indicate the following performance: Key Priority Number of Activity Measures „„ Key Priority 1: Strong, Vibrant Communities 21 „„ Key Priority 2: Building and Maintaining Quality Infrastructure 22 „„ Key Priority 3: Supporting our Local Economy 13 „„ Key Priority 4: Protecting our People and our Environment 21 „„ Key Priority 5: Leadership and Governance 21 „„ Key Priority 6: Our Organisation 18 Total 116

Financial & Capital Update

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Budget performance against operational plan delivery (includes operating and capital): original budget q2 accumulative key priority + BR1 Q1 actuals q2 actuals % $

Key Priority 1: 32,631,091 40% $13,132,376 $7,086,033 $6,046,343

Key Priority 2: 118,119,568 40% $47,022,828 $20,816,108 $26,206,721

Key Priority 3: 25,097,176 43% $10,679,006 $4,000,698 $6,678,308

Key Priority 4: 31,328,059 43% $13,413,541 $6,528,073 $6,885,468

Key Priority 5: 8,770,573 69% $6,055,937 $3,021,601 $3,034,336

Key Priority 6: 15,375,621 43% $6,602,428 $2,709,363 $3,893,065

TOTALS $231,322,088 42% $96,906,116 $44,161,876 $52,744,240

10 2019-20 Quarter 2 Performance Report Financial PERFORMANCE This summary provides a review of council’s financial performance against the 2019-20 revised budget for the year ended 31 December 2019. With six months completed, year-to-date revenue is at 47% of the full-year budget (rates are levied half-yearly), and expenditure is at 49% of the full-year budget. Summary of operating performance:

variance variance 2019-20 operating performance full year 2019-20 ytd 2019-20 ytd budget budget actuals $ %

Income 146,819,638 71,979,752 69,589,638 -2,390,114 -3.3%

Expenditure 149,283,875 75,721,549 72,924,820 -2,796,729 -3.7%

Operating Result (Surplus) / Deficit (2,464,237) (3,741,797) (3,335,182) 406,615 -10.9%

* Note: internal transactions have not been eliminated.

Operating Revenue

Communities

Corporate Revenue & Expenses

Corporate Services

Customer & Commerical Services

Executive Management

Infrastructure

- 10,000,000 20,000,000 30,000,000 40,000,000

2019/20 YTD Budget +BR1 2019/20 YTD Actuals

The operating revenue graph shows actual revenue performance at the end of December 2019 against the forecast 2019-20 revised budget, from a high-level department perspective. At the end of this reporting period, actual revenue is tracking behind the revised budget forecast. Variances at the end of this reporting period are: „„ Rates and charges revenue - the actual revenue derived from rates and charges for the period ended 31 December 2019 is slightly over budget due to lower than expected rating capping adjustments, which is partially offset by a variance in rate discounts. „„ Operating grants and subsidies - the actual revenue from grants and subsidies at 31 December 2019 has fallen below the revised budget forecast. This is attributed to an overstatement of expected grant revenue for the Yamala Rail Siding project (Building our Regions 3), and Bonnie Doon access road projects. „„ Interest from investments - the actual revenue derived from interest is under budget due to falls in the official cash rate over the current year which have reduced the returns on funds invested. „„ Sales of goods and major services - total revenue generated from the sale of goods and major services is below the revised budget. Stronger than expected sales out of the quarry and saleyards are being experienced, however this has been offset by lower private works revenue.

11 2019-20 Quarter 2 Performance Report OPERATING EXPENSES

Communities

Corporate Revenue & Expenses

Corporate Services

Customer & Commerical Services

Executive Management

Infrastructure

- 10,000,000 20,000,000 30,000,000 40,000,000

2019/20 YTD Budget +BR1 2019/20 YTD Actuals

The operating expenditure graph shows actual expenditure performance at the end of December 2019 against the forecast 2019- 20 revised budget from a high-level department perspective. Actual expenditure is currently below forecast levels at the end of December 2019. Variances at the end of this reporting period are:

„„ Employee benefits- actual employee benefits expenditure for the period ended 31 December 2019 is currently over budget compared to the revised budget forecast. Currently sick leave and overtime are over budget, along with an underutilisation of staff on capital works program. „„ Materials and services - actual materials and services expenditure is falling below revised budget. This is a result of higher utilisation of day labour to complete private works primarily in RMPC.

12 2019-20 Quarter 2 Performance Report Capital Reporting Quarter 2 – 2019-20 This section provides for reporting on council’s capital program where projects are reported against their progress in their project life cycle. Projects are either not commenced or in the phases of concept and feasibility; procurement; detailed planning and design; delivery/construction; finalisation, or defects period. Project status as at 31 December 2019: Project status as at 31 December 2019

Quarter 2 quarter 1 project progress Budget br1$M % original budget $M %

Not commenced 27.05 32.97 28.59 39.53

Concept and feasibility 1.83 2.23 10.75 14.87

Procurement 11.37 13.86 8.21 11.36

Detailed planning & design 6.64 8.10 4.31 5.96

Delivery/Construction 28.45 34.68 20.32 28.09

Finalisation 4.20 5.12 0.15 0.21

Defects Period 2.50 3.05

grand TOTAL 82.04 100 72.34 100

$54.99 million (67%) of the total budget review 1 budget has commenced or been committed to be spent as at 31 December 2019. project Expenditure as at 31 december 2019 approved % spent including Actuals including directorate budget $ actuals at 31/12/19 $ commitments $ commitments committments $

Communities 8,793,156 3,643,753 1,907,213 49% 5,550,966

Corporate Services 10,406,685 3,305,031 3,977,472 64% 7,282,503

Customer and 21,916,467 8,844,318 6,361,212 60% 15,205,529 Commercial Services

Infrastructure and Utilities 31,221,325 8,188,194 5,862,285 41% 14,050,479

grand TOTAL 72,337,633 23,981,296 18,108,181 51% 42,089,477

Capital Expenditure including Commitments as at YTD December 2019 (in millions)

82.04 m

13 2019-20 Quarter 2 Performance Report Capital Expenditure including Commitments as at 31 December 2019 40

35

30

25

Millions 20

15

10

5

- Communities Corporate Services Customer and Commerical Services Infrastructure and Utilities

2019/20 2019/20 2019/20 Approved Budget Approved Budget Actuals including including Commitments Budget Review 1 (BR1)

Including commitments $42.09M (51%) of the 2019-20 capital budget is expended. The airport runway and general aviation upgrade projects' budget of $16.3M is currently $13.4M (82.2% of approved budget review 1 budget), including commitments and is due for completion by the end of March 2020. Capital revenue Grants and contributions to the value of $2.99M for capital projects was received of a full budget of $9.7M, which is 30.8%.

14 2019-20 Quarter 2 Performance Report CENTRAL HIGHLANDSCENTRAL REGIONAL COUNCIL 2019-2020 QUARTER 2 VARIANCE REPORT

15 2019-20 Quarter 2 Performance Report Central Highlands Regional Council

65 Egerton Street, Emerald, QLD T. 1300 242 686 centralhighlands.qld.gov.au