Annual2009–2010 Report
A Lifesty le for Everyone CONTENTS Our Corporate Plan 2009–2013 ...... 1 Message from the Mayor ...... 2 Message from the CEO ...... 3 Councillor Highlights ...... 4 Meetings and Conferences ...... 6 Executive team ...... 7 Smart ...... 8 Natural ...... 18 Dynamic ...... 24 Healthy ...... 32 Our vision is for the Fraser Coast to offer “a lifestyle for Statutory Information ...... 40 Our vision everyone”.
Fraser Coast Regional Council will work towards achieving this vision by sustaining our unique natural environment, building a dynamic region, maintaining a healthy community and establishing a smart customer orientated organisation.
The Fraser Coast region covers an area of 7,125 km from the Gunalda Range to the south, past Howard on the Bruce Highway to the north, east to World Heritage listed Fraser Island and west to Brooweena. The population of the region at the 2006 Census was 86,747 O u r gu i d i n g and by 2031 it is estimated that the population will exceed 150,000. These are the principles that guide our actions and decisions when dealing with the community, customers and The median age of Fraser Coast Regional Council’s population stakeholders: is projected to increase by two years from 43 years in 2006 to 45 years in 2031. The median age for Queensland was Honesty 36 and is projected to be 41 years in 2031. We behave ethically and act with honesty, fairness, courage The average household weekly income is $1,033. and loyalty. The region has a labour force of 35,167 people. Unemployment is approximately 5.5% of the Accountability labour force. The gross regional product is We conduct ourselves in a business-like manner to deliver $2.8 billion. efficient and expert services in the public interest and we More than 1.6 million people visit the are open, consistent and transparent about our decisions. Fraser Coast each year. T eamwork We work together to strive for excellence, creativity, leading-edge technology and quality outcomes for the organisation and the region. R espect We recognise and support the contribution of individuals and respect each other, our families, our clients, those with different ideas and from diverse backgrounds and cultures. C ommunication We keep people informed through active engagement and consultation and being open to alternative ideas.
Purpose of report This Annual Report enables Council to share with the community and interested stakeholders information about our achievements, plans and challenges during the 2009- 2010 financial year. It also contains statutory information required by the Local Government Act 1993 including Council’s audited financial statements. i o n a l C o u n e g c i R l t A N S > – s P L > > a R M S Our Corporate Plan o E u C T p G E R M P L p N T A r M N o e O S L I U r s > D V t onal Pla > i 2009-2013 ti ns s a ra E e i i p P o O e > rf n o n r M t r e m g a F d Our Corporate Plan is a high level strategic planning n g u
c
C B e
SHORT TERM C
o
R
o
m
e
r
p
document that provides the basis for Council decisions and PLANS p
m
o
o
o
r
t
u r – i
n
a
n g
u
t
i
e
t
A
t r
policies. It is part of Council’s overall planning framework n
o
n
y p
u e a l R
P
r
P
l
e a
l
n a
n
which includes short term, medium term and long term plans l
n n
f
a
S
l a
l y o P
c
P
c
i
i
a
S
u
g
l
t
e
and strategies. P t
t l a
a
r t t n
n r S
a
e
t t
e m
s
g e
i
g
u c
a
e
D n
o
a
r
The Fraser Coast Regional Council Corporate Plan 2009-2013 c
M
f
u
t
m
e
e s
e i
n
s
t
A
s
l
n
F a
i l n P a
l identifies four aspirations for Council and our community and n a c i
w
e i
t
a number of specific outcomes for each of these aspirations. l h
b
a
a
n
i s a u t s
Smart Leadership andOUTCOMES innovation A smart, sustainable Knowledge management and customer focused People development organisation Community and customer focus
Marketing
S Natural Natural environment A unique natural Biodiversity and climate change ion
t environment Waste management a
Dy namic Built environment Aspir A diverse, innovative and Infrastructure prosperous region Commerce and industry
Tourism destination
Healthy Heritage and culture A livable, healthy and happy Community health and safety community Community development
A Lifesty le for Everyone 1 MESSAGE FROM THE MAYOR
Mayor
Council has achieved some important milestones in the past Council also launched a multi-media marketing campaign year, not the least of which was delivering our second budget using a series of discovery trails, the Our Fraser Coast which included $66 million for capital works. Magazine and a new look My Fraser Coast Website to inspire people to visit the region and stay longer by discovering the Balancing the budget was made harder as Council juggled range of unique experiences on offer. the loss of $14 million in State Government funding with the need to ensure projects went ahead to stimulate the Council also engaged the community by hosting four economy and build much needed infrastructure. community briefings across the region so we could hear first hand your concerns and aspirations for the future. Council also implemented a five-point plan to stimulate the economy in response to the Global Financial Crisis. Information gathered at those meetings was very useful when it came time for Council to formulate the 2010/11 To maintain our reputation as one of the fastest growing budget. regions in Australia, Council launched its Economic Development Strategy to outline how we plan to attract new I congratulate and thank all those who organised or business to the region to create jobs and wealth. volunteered at the many community events across the region to ensure their success. Council launched the Fraser Coast 2031 Sustainable Growth Strategy, the first step in defining a land use strategy and Together we can make a difference and ensure that the a strategic framework for the future Fraser Coast Regional Fraser Coast region remains a desirable place to live. Council Planning Scheme.
Council developed and released for public comment the Draft 2030 Aviation Strategy which will guide Council in growing aviation services across the region.
To boost tourism, the major employer on the Fraser Coast, Mick Kruger Council has injected funds into staging events and attracting Mayor tourists. Fraser Coast Regional Council
2 MESSAGE FROM THE CEO
CEO
This year’s annual report provides an opportunity to reflect Planning Act, Local Government Act, Right to Information and on the achievements of the Council and Council staff. Many Privacy Legislation during the year meant staff has had to of these achievements flow on from the building blocks become familiar with new provisions and introduce internal laid during amalgamation. Staff have continued to achieve changes. significant outcomes and improve services and service There was change in the Executive Management Team as delivery. David King and Ron Smith left Council to take up positions This year Council moved to a three directorate model to with other local authorities and private enterprise. more effectively deliver services. While there have been The remaining members of the Executive Management many changes since amalgamation in 2008, the staff Team have been given additional responsibilities as the have remained focused and worked with the Executive expectations of Council and the community increase. To that Management Team to bring about cultural change. It was end I would like to acknowledge the contributions of Lisa pleasing to note that even during this period of change Desmond, Peter Smith, Wayne Sweeney and all the staff of staff recorded an overall satisfaction rating of 71 %. Given the Fraser Coast Regional Council for their ongoing support. the uncertainty and the negative press Council sometimes receives this was a reassuring outcome. In looking back at what has been achieved, I believe that the Council is in a position to build on the benefits of The global financial crisis had a major impact on the amalgamation and start focusing on the future of the region. development industry and this created additional pressures This has not always been possible given the requirements for Council through a reduction in revenue from development of building a new organisation, but with the start of Fraser sources. The Council resolved to stimulate growth through Coast 2031, the formation of new working groups and a more targeted strategies such as reduced fees and charges, streamlined structure, improved consultation mechanisms shovel-ready project initiatives and other discounting of and dedicated staff, I believe the Fraser Coast will continue contributions. This created even more pressure on the to grow and prosper in the future. Council’s bottom line.
As the State Government continued to reform local government a new raft of legislation was introduced and further changes are likely. The introduction of the Sustainable
Andrew Brien Chief Executive Officer
A Lifesty le for Everyone 3 C o u n c i l l o r H i gh l i gh ts C r Julie Arthur (Deputy Mayor) road safety. Since amalgamation the Council has upgraded This year the Council reached two significant milestones in its and sealed many gravel roads and it has been very pleasing management of the region’s water supply: The development to receive positive feed back from many in the community of a Statement of Corporate Intent – a formal performance who are happy with the improvements. The Council has a agreement between Wide Bay Water Corporation and its large sealing program for 2010/11 and plans are well under sole shareholder, Fraser Coast Regional Council which sets way to continue the same positive progress into the following out agreed performance targets and the obligations and budget. Sound roads are important for a growing community responsibilities on both parties to achieve the required and our children’s safety is paramount. outcomes; The formation of the Fraser Coast Water Advisory C nar Li d Harris Committee to provide a forum for open communication A major achievement was the creation of a regional arts hub between Wide Bay Water Corporation and Council on matters in Maryborough with the $1.4 million revamp of Gatakers relating to the Statement of Corporate Intent and to ensure Artspace and Gatakers Lane which created an impressive the two organisations maintain a sound and productive modern gallery that will attract tourists as well as stimulate working relationship. These are significant developments the arts across the region. Council strengthened its Sister for our region as we move to address the critical issue of City and Friendship City relationships and visited our Sister maintaining an affordable and sustainable water supply. City of Leshan in China with representatives from the USQ C r Sue Brooks and Wide Bay TAFE. The visit showcased the education Highlights of Council’s achievements include the facilities our region has to offer the growing number of implementation of Our Sustainable Fraser Coast Charter Chinese who wish to study abroad. which recognises the challenges of sustainable modern living, C r Debbie Hawes particularly achieving a balance between the needs of the Ensuring funds allocated to projects were expended was economy, society and the environment without compromising a major achievement. In the final analysis 70 percent of future needs. Work started on the development of a the $74 million allocated for capital works in the 2009/10 Shoreline Erosion Management Plan for our 112 km of budget was expended or committed. The Council adopted a coastline. I was pleased to direct funds from the Regional Sustainability Charter which will reduce our carbon footprint and Local Community Infrastructure Program towards park and set a benchmark by showing residents practical ways benches along the foreshore and take part in Community they can cut their carbon footprint. I was pleased to support Environment Program activities. funds from the $1.08 million Rural and Local Community C r David Dalgleish Infrastructure Program grant going to install facilities on One of my major focuses while on Council had been to sections of the National Bicentennial Trail which cuts through ensure more school bus routes are sealed to help improve the region.
Mick Kruger Sue Brooks Debbie Hawes
David Dalgleish Belinda McNeven Gerard O’Connell Les MucKan
4 Cbr Bar ara Hovard safely enjoy quality equipment. Young people are learning The opening of the $1.3 million recycling centre in valuable work skills as they rejuvenate the Rainbow Gully Maryborough has been long awaited. During the year Community Garden, and the PCYC third court extension will Council completed drainage works in the Maryborough CBD, benefit many community groups. These projects and more upgraded library facilities across the region, and undertook help make our region a desirable place to live and work. the Maryborough CBD beautification and Gatakers Artspace C r Anne Nioa enhancements as well as the installation of security cameras The Council continued negotiations with aviation companies which has led to a drop in antisocial behaviour. A $1.6 million for new routes to service the region to ensure the continued pedestrian and cycle overpass of the Bruce Highway is the growth of our tourism industry. A new integrated marketing first stage of projects that will link the growing western areas and tourism campaign was implemented to promote the of Maryborough, TAFE, railway station and showgrounds to region by using the same visuals, key messages and brand the city. personality. Ensuring the region was branded uniformly C ar Belind McNeven extended to the development of new entry statements While the Fraser Coast has a fantastic climate and natural for villages, towns and cities. Council also strengthened attractions we must protect our man-made icons. A major marketing opportunities aimed at tourists using jet achievement was the $2.5million refurbishment of the services by opening a new gift and keepsake shop called Urangan Pier and the $1.4 million refurbishment of the Quintessential Fraser Coast, which incorporated a Visitor historic Gatakers warehouse into the Gatakers Artspace. Information Centre at the Hervey Bay airport. These facilities are our national treasures as well as Cr Gerard O’Connell important tourist drawcards. Council also launched the Fraser Driving Council’s response to the Global Financial Crisis, Coast 2031 Sustainable Growth Strategy and asked residents Economic Development and job creation has been rewarding. for their opinions and aspirations to create a vision for the That included the implementation of the ‘Shovel Ready’ Fraser Coast which will guide development and land use for Policy to stimulate the development sector and forging closer the next 20 years. links between Council and the Urban Development Industry C r Les MucKan Association. Our efforts to boost the economy included the Council completed or started hundreds of exciting parks launch of the Economic Development Strategy to enhance projects throughout the region including the new All Abilities business development and job growth; formation of the Playground in Hervey Bay. Tiaro’s young people now enjoy Economic Development Advisory Committee; release of a new skatepark and all the region’s playgrounds were the 2031 Aviation Policy and we were instrumental in the improved to a high standard that ensures our children can establishment of the Economic Development Enterprise and Innovation project, in partnership with the USQ, business and chambers of commerce.
Barbara Hovard Anne Nioa Linda Harris Julie Arthur
A Lifesty le for Everyone 5 meetings attended ABSENT
OFFICIAL ILL PLANNING & oRDINARY SPECIAL COUNCIL ANNUAL LEAVE DEVELOPMENT BUSINESS SPECIAL LEAVE Meetings and Cr J Arthur 18 9 2 2 5 Cr S Brooks 22 11 3 0 0 Cr D Dalgleish 22 11 3 0 0 Conferences Cr L Harris 20 11 3 2 0 Cr D Hawes 21 11 3 1 0 Cr B Hovard 22 9 2 1 2 Cr M Kruger 18 8 2 5 3 Cr B McNeven 22 9 3 0 2
Note: Cr L MucKan 20 11 3 0 2 Meetings included: 22 x Ordinary Meetings; Cr A Nioa 19 10 2 2 3 11 x Planning & Development Services Committee Meetings; 3 x Special Meetings Cr G O’Connell 21 10 3 2 0
Councillors attended the following conferences during the 2009/10 financial year
Conference Number of Councillors Artspeak 2009 RADF Conference 1 2010 Central Queensland Regional Conference 1 Economic Development Australia Conference 1 2009 Focus on Water Seminar and LGAQ-Qld Water Information Session 1 Fraser Island World Heritage Association Advisory Committee Joint Meeting 1 Infrastructure & Planning Symposium 1 Local Government Association of Queensland Inc Annual Conference (LGAQ) (2 registrations included in LGAQ 2 membership) LGAQ Civic Leaders’ Summit 2 LGAQ Economic & Regional Development Conference 1 Local Government Managers Australia National Congress (LGMA) 1 National General Assembly of Local Government (ALGA) 2 Queensland Events Regional Development Program Conference 1 Queensland Media Club – State of Australian Cities 1 Tourism Industry Forum 2010 1 Urban Local Government Association Conference 1
Council meetings are rotated between the chambers in the historic Maryborough City Hall and Hervey Bay.
6 Executive team Director Organisational Services, somewhat unchartered waters post amalgamation. A focus Lisa Desmond of the Directorate has been on reviewing its processes and procedures with a view to continually improve the quality and Considering the impact of the Global Financial Crisis, the timelines of services provided to the community. Additionally, Council finished the year in a reasonable financial position. a range of capital projects such as Gatakers Artspace, the Staff remained positive during what was a time of rapid and Links Mobility Corridor, Maryborough Aquatic Centre and constant change. An employee opinion survey identified parks and open space improvements have either been strategies to improve overall workplace satisfaction which progressed or completed resulting in excellent facilities for Council will continue to implement as an employer of choice. the community. The region’s four signature events (Mary Poppins Festival, Director Infrastructure and Whale Festival, Pub Fest and Maryborough Technology Environment, Wayne Sweeney Challenge) again attracted large attendances. The events A significant achievement for the 2009/10 fiscal year has continue to grow to provide residents with entertainment been the delivery / commitment of 82% of the $38 million and to attract visitors to the region. However these events capital roads and drainage budget. would not be possible without the continued support from volunteers and staff. This percentage increases to 92% if you exclude projects that were unable to be started due to factors outside the control Community engagement was a priority this year as Council of the department. Approximately $15 million of the program sought feedback on key strategies including economic was outsourced to private contractors, which has supported development, aviation, sustainability and planning. In Council’s strategy to promote economic activity across the addition Council’s Community Briefings were a useful forum Fraser Coast region. to understand residents’ expectations and priorities for service delivery across the region. Level two inspections were undertaken on timber bridges to compile a maintenance and replacement strategy. Director Community and Development, Peter Smith The new recycling centre was opened in Maryborough and this facility, together with the existing facility at Nikenbah, The 2009/10 year has again been a challenging one; provides the necessary infrastructure for waste reuse and however a lot has been achieved and for this credit must go recycling for the region. to the staff and their efforts in what has been a period of
Andrew Brien Peter Smith Wayne Sweeney Lisa Desmond
A Lifesty le for Everyone 7 8 Fraser Coast Regional Council Annual Report 2009–2010
HIGHLIGHTS $8.5 million invested in projects to improve community facilities 5th birthday for Fraser Coast Airport on July 29, 2010. Almost 941,000 passengers through airport in that time 8 L eadership and innovation Knowledge management People development Community and customer focus Marketing
Smart a smart, sustainable and customer focused organisation As an organisation we are committed to developing and implementing strategies which are responsive to our community and establish a customer focused organisational culture.
Recruitment Support Officer Maryborough VIC Coordinator Councillor Support Officer Vicki Rockemer Kelli Sauer Kellie McElligott
A Lifesty le for Everyone Fraser Coast Regional Council Annual Report 2009–20109 9 P lanning for our region’s Leadership future wellbeing Council has undertaken two key planning projects which will and innovation guide the development of the Fraser Coast region into the future. C ommunity Banking Partnership • The Fraser Coast Community Plan, which is required More funds will be available for community groups under an under the Local Government Act 2009, will guide Council’s agreement between Council and the operators of the Bendigo decision making during the next 20 years. The plan and Adelaide Bank Community Bank in Hervey Bay. incorporates goals, strategies and key actions for the future economic and social well-being of our community, A percentage of profits from Council investments with the our approach to environmental management and our bank will be available to community groups. Each year up to systems of governance. 80% of the profits from the Community Bank are dispersed • The Fraser Coast 2031: Sustainable Growth Strategy as grants to community and sporting groups. will give direction to defining a land use strategy and a The funds from the venture are on top of those offered by strategic framework for the future Fraser Coast Regional Council through the Regional Arts Development Fund, the Council Planning Scheme. The strategy will influence the Community and Events Support Grants Scheme and the development of a single planning scheme for the Fraser Sporting Grants Scheme. Coast Regional Council area.
Representatives of Councillors and the bank will decide on Through the Our Fraser Coast 2031: Have Your Say project how the funds should be distributed. Council sought community input into these two plans. Residents were invited to complete an online survey, participate in local community workshops or contact the project hotline to discuss their issues and ideas.
The 2031 Sustainable Growth Strategy was launched to an audience of industry and business leaders.
1010 Fraser Coast Regional Council Annual Report 2009–2010 AWARDS
Cr Linda Harris’s contribution to local government and the community was recognised at the Local Government F ostering friendships abroad of Queensland (LGAQ) A Fraser Coast delegation strengthened our region’s sister Conference Dinner, held in city relationship with Leshan during a successful 10-day visit Brisbane on 25 August 2009, to China in May 2010. with the presentation of a 15 Representatives from Council, the University of Southern Years of Service Award. Queensland Fraser Coast Campus and Wide Bay TAFE negotiated several exciting education, tourism and business opportunities and reciprocal visits for dignitaries, school COUNCIL GETS SERIOUS ABOUT groups and other residents. SUSTAINABILITY Leshan officials were keen to show their Fraser Coast visitors Fraser Coast Regional Council is committed to a more the city’s schools, universities and industrial developments sustainable future for the region and has developed Our including their 26 square km High Tech Enterprise Zone. Sustainable Fraser Coast Charter. A riverside development in Leshan planned for early next In February 2010, Council launched the Fraser Coast Online year will include subtropical design concepts sourced from Sustainable Living Guide, developed in consultation with the Fraser Coast and Leshan is also planning an Australian the Natural Strategies Group, to show that one person, one garden. A Chinese garden will be developed in the Hervey family, one business or one community group can make Bay Botanic Gardens incorporating features from Leshan. a difference. It includes 50 actions residents can take to live more sustainably. There are low-cost tips on shopping, The Fraser Coast also enjoys sister city and friendship composting, recycling, energy water efficiency and ideas for associations with Otsuki, Kasukabe and Tome in Japan and home renovations. Honiara in the Solomon Islands. In July 2009 the Fraser Coast Regional Council provided training in the Solomons on An audit of office lighting at Council’s five main buildings machinery and work procedures. resulted in a program to replace lights with 25% more efficient products. An audit of Council’s green house gas (GHG) emissions, including electricity consumption, fleet and plant fuel consumption was also commenced.
The Fraser Coast strengthened its ties with its Sister City Leshan in China when a delegation visited in May 2010.
A Lifesty le for Everyone 11 Vital grants for community projects A selection of the grants is identified below. Federal, State and Local Government grants can provide
vital dollars for community events and projects that would Community External Grants otherwise not proceed. Grants used or supported: tagged for: During 2009/10 the Fraser Coast Regional Council vigorously explored all avenues for external funding opportunities sourcing more than $8.5 million that was injected into more than 40 projects throughout the region.
These included $2.1 million from the Australian Government’s Regional and Local Community Infrastructure Program (RLCIP), $979,000 from the Australian Government’s Jobs Fund for the Links Corridor and $5.6 million for the Community Centre and Gallery project in Hervey Bay.
During 2009/10 Council also delivered two rounds of Update and digitise Community Grants, providing $78,413 to 42 community Fraser Coast Historical groups and not-for-profit organisations. Cemetery records
2010 Hervey Bay Community Burrum Heads Easter Centre and Regional Fishing Classic Gallery
Upgrade of radio and membership system for Volunteer Marine Rescue Hervey Bay
Refurbishment of River Heads Reserve facade at Zephyr Street environmental project Performing Arts Theatre
Entrance statements for coastal townships Shakespeare on the Bay
Hervey Bay Seafood Festival 2010
Replacement of boardwalk at the Fay Smith wetlands Restoration of the band rotunda, the cenotaph Exercise equipment and the Melville Memorial at ANZAC Park Fountain in Queens Park;
New seating at Maryborough Showgrounds and Equestrian Park
CCTV for Repairs to the Tiaro Maryborough CBD and North Aramara war memorials Installation of playgrounds, shade Hearing loop for structures, barbeques Maryborough Computer Mary River Festival, Tiaro and exercise equipment Users Group Annual Glenwood Swap Meet
1212 Fraser Coast Regional Council Annual Report 2009–2010 NEW BOARD FOR WIDE BAY WATER and is currently an Adjunct Professor at the School of CORPORATION Integrative Systems at the University of Queensland. The other board members are Megan Houghton, Ian Klug, Don A new board of directors was appointed to Council’s Marples, Susan Rankin and Garry Storch. controlled entity Wide Bay Water Corporation in January 2010. Wide Bay Water Corporation is nationally and internationally recognised at the forefront of water loss prevention and The new board is chaired by Leith Boully who has an distribution management and a leader in the development extensive background in the Australian water industry of land-based water-reuse facilities predominantly in crop through her irrigation, farming, research and policy interests production.
Australia Day award winners and Mayor’s regional Significance Award
Awards were presented to recognise the service and dedication of recipients across the region.
Woocoo Tiaro Maryborough Hervey Bay
Citizen of the Year John Atkinson Darryl Stewart Mary Dixon John Tracey
Junior Citizen of the Year Rowan Collins, 15 Lachlan Stewart Brody Dombrow Georgia Sard
Sportsperson of the Year Clinton Brown – Jennifer Strack Neville Johnson
Beth Mooney and Junior Sportsperson of the Year Sally Wheeler Lewis Reibel, 12 Edyn Belton Jordan Kerby Hervey Bay Janess and Ken Cultural Award of the Year Bronco Jensen Ailsa Head Historical Village Sutton and Museum Emily Tighe, Stage Arlene Junior Cultural Award of the Year Emma Hellmuth Rats performance of Kate Collis Alexanderson, 12 Ma Baker The Tiaro Farming The Brooweena Fraser Lions Community Event of the Year and Lifestyle Field Q150 Craft Fest Q150 event Seafood Festival Day
Australia Day Award Recipients from left to right: Emma Hellmuth, Janess Sutton, Darryl Stewart, Lachlan Stewart and Lewis Reibel.
A Lifesty le for Everyone 13 Information Management projects completed
All amalgamation tasks completed. That included incorporating the four corporate data systems into one. All Council records are now kept on DOCS (electronic document filing system), Finance One and Knowledge Proclaim (property records). All Information technology infrastructure was consolidated (servers updated, PC’s replaced and management network hardware) into one system.
“Technology is an enabler for productivity and Installation of four security cameras into the central service improvements. Council now has a great business district of Maryborough and on the Link technical foundation on which to build a solid Mobility Corridor near the Hervey Bay library. The future.” initial feedback from the security camera trial has been promising. Video from the cameras has been Sydney Shang, Executive Manager Information useful in helping police address vandalism and Management. destruction of Council property.
Historical Council documents preserved New intranet developed so all staff, no matter their location across the region, can log on to stay Detailed ledgers dating from the 1880s to the 1970s were abreast of Council developments and access Council among Maryborough Council records cleaned and moved to a documents and information. secure location in January 2010. Completion of the Information Management Four-Year The historical collection of books includes committee Strategic Plan which will guide the replacement of minutes, accounts, rates, water rates, wages ledgers and equipment and software upgrades across the Council valuation documents. to improve service delivery.
The books were moved from a back room in City Hall to a Improvements to Disaster Recovery and Business concrete safe in the Maryborough administration building that Continuity plans with the installation of a new 16 provided more constant temperature and humidity. terabyte backup disk storage system. (How much space is that? Imagine a magazine page where every letter Due to local government boundaries changing several and space typed equals one character. At an average of times since the early days, the records covered not just 5,000 characters per page, 1 terabyte of disk space could Maryborough but most of the region. hold 220 million pages of text.)
The process to consolidate the 300,000 paper-based files of the four former Councils was started. The files include property, rates, development and building records. A catalogue of the files has been established which all staff will be able to access electronically. The physical files will be kept in 10,000 boxes in storage.
Consultants clean Maryborough’s historic records
1414 Fraser Coast Regional Council Annual Report 2009–2010 AWARDS
Wide Bay Group Training nominated Council for an Employer Award in November 2009. During the financial year Council was a host E mployees give feedback to Council employer for a number of Council completed a staff survey to assess how employees Wide Bay Group Training felt post amalgamation. apprentices. Three of these The survey results indicated that of the 291 employees who young people are still working responded (47% of staff) gave an overall satisfaction rating with Council. with Council of 71%.
The Council will use the Employee Feedback Survey as a benchmark for future surveys and to gauge staff satisfaction in a number of key result areas including leadership, purpose, reward, opportunity and work/life balance.
The results have been discussed with staff who have People provided strategies for continuous improvement including the implementation of mentoring programs and streamlined development internal communications.
“With state of the art technology and competitive S ervice Excellence work conditions, the Fraser Coast Regional Council Each month, Council’s Customer Service staff serve around has cemented itself as an employer of choice.” 2,500 people at Council’s three administration centres and answer an average of 8,330 phone calls. Other Council Alexis Hill, Executive Manager People Development officers also receive an average of 2,500 action requests a month, covering anything from lost dogs to complex planning Indigenous job seekers join Council applications. Fraser Coast Regional Council welcomed 10 indigenous Council developed a Customer Service Charter that outlines job seekers to its construction crews as part of a 13-week our service commitment to residents and we strive for Queensland Government employment project. excellence in customer service across all departments. Dhugamin CDEP oversaw the project, supported by a Council invites residents and colleagues to nominate $120,930 grant from the Queensland Government’s Skilling individual staff for a Customer Service Award when the Queenslanders for Work initiative. This is the fourth time service provided exceeds expectations. Council has hosted the project. The awards were introduced in July 2009. Since then 45 staff have been recognised for their service excellence and innovation.
Members of the Indigenous Job Seekers group ready for their first project.
A Lifesty le for Everyone 15 COMMUNICATION
69% of all calls received by Customer Service were dealt with at first point of contact 2009/10 Financial Year Training compared with 59% at the Over 3,400 staff attended training in areas as diverse as 4WD, chainsaw same time last year. Also operation, working at heights, ergonomics, first aid and time management. during the financial year:
29,000 items of written Training Type correspondence processed;
114,800 telephone calls answered by our Call Centre;
29,994 requests for service actioned through Council’s Customer Request System;
40,016 customers served at
Number of staff our counters.
S urfing the web Bronwyn Britten – $2500 Marketing Scholarship for the A new-look Council website was developed that is marketing student with the highest combined achievement in comprehensive, user friendly, informative and accurate. Introduction to Marketing and Consumer Behaviour. There were over 210,000 visits to the site during the K eeping in touch with our community reporting period from more than 95,000 unique visitors. In Council held regular Community Briefings across the region excess of 655,000 pages were viewed with the most popular as part of its commitment to two-way communications with being vacancies, planning and development, contact details, residents. Melbourne flights campaign, library, maps and animals. Sessions during the 2009/2010 year were held at: Acd a emic Scholarship • River Heads Hall, July 2009 Fraser Coast Regional Council presented two scholarships to students studying at the University of Southern Queensland • Glenwood Hall, November 2009 Fraser Coast Campus. • Hervey Bay Neighbourhood Centre, March 2010 • Burrum Heads Community Hall, May 2010 Natasha Stanberg – $2500 Scholarship for a second year student with the highest cumulative Grade Point Average The condition of roads, footpaths and parks topped the list of from the faculties of Business, Arts, Education and Sciences questions raised by residents attending the briefings. in 2009.
Customer Service Officer Tenille Richards at the Hervey Bay Customer Service Centre.
1616 Fraser Coast Regional Council Annual Report 2009–2010 AWARDS
Fraser Coast South Burnett Tourism Awards for Excellence 2009: “Our Fraser Coast magazine”.
Marketing Ma rketing Fraser Coast A series of discovery trails, a promotional magazine and a new look website are part of a new integrated, multi- media “Our Fraser Coast” marketing and tourism campaign launched by Council.
All marketing components were designed to integrate with each other and cross promote the region. They use the same creative visuals, key messages and brand personality so all elements work together to support the marketing mix and In the five years from July 2005 to July 2010 since jet reinforce the Fraser Coast brand. air services started there have been 940,696 passenger movements through the airport. The campaign encourages more tourists to visit and stay longer to discover the range of unique natural landscapes Ensuring the region is branded uniformly has also extended and tourism experiences on offer on the Fraser Coast. to the development of new entry statements for villages, towns and cities across the region. A second component of the campaign encourages residents to ‘holiday at home’ through Staycations, which offers New entry statements have been installed at Tinnanbar, discounts for residents and visiting friends and relatives. Poona, Tuan, Boonooroo and Maaroom. Entry statements will be progressively rolled out across the region as funds A new gift and keepsake shop called Quintessential Fraser become available. Coast, which incorporated a Visitor Information Centre (VIC) was opened at Hervey Bay airport in July 2009 to Hervey the Whale, Fraser Coast’s ambassador, has been give incoming air travellers the opportunity to sample the a smash hit since he made his debut in July 2009. Hervey food and souvenir products available here and departing has delighted thousands at events across the Fraser Coast, passengers a last-minute opportunity to buy keepsakes that especially children, who love to have their picture taken will remind them of their visit. with him.
Fraser Coast mascot Hervey the Whale waves to cyclists on the Bay Esplanade.
A Lifesty le for Everyone 17 HIGHLIGHTS 75% water weed Hymenachne infestations across region controlled as part of ongoing 500 properties control program contacted as part of an awareness campaign for environmental pest plants on Fraser Island 1818 Fraser Coast Regional Council Annual Report 2009–2010 Natural environment Biodiversity and climate change Waste management
N a tu r a l A unique natural environment Reducing our carbon footprint in terms of waste and emissions is an overriding goal as we strive to preserve, protect and manage our exceptional natural environment.
Enjoying Fraser Coast’s coastal diversity.
A Lifesty le for Everyone Fraser Coast Regional Council Annual Report19 2009–2010 19 O ur achievements
In 2009, the Great Sandy region was awarded Biosphere Reserve status by UNESCO. Natural environment
“Our lifestyle and quality of life depends on a • Hervey Bay Community Bank CEP Group Environmental healthy natural environment”. Excellence Award – Friends of Cheelii Lagoons • Master Builders Building Site Environmental Excellence James Cockburn, Executive Manager Environment Award – Perry Homes and Open Space. • Mayor’s Choice Award – Marilyn Connell Ma yor rewards environmental workers Sh oreline erosion in the spotlight The annual Mayor’s Environment Awards recognise and Residents were asked for input to establish a Shoreline reward the outstanding efforts made by members of our Erosion Management Plan (SEMP) which will guide community toward the environment. There are many groups, sustainable beach protection on the region’s 112km of individuals and organisations across the Fraser Coast that open ocean coastline which stretches from Burrum Heads volunteer their time to look after beaches, bushland and to Tinnanbar. The project started in April 2010 and is wildlife. The winners of this year’s awards were announced expected to be completed in mid 2011. Council has engaged on World Environment Day and were: coastal management specialists Cardno Lawson Treloar and community engagement specialists CPR Group to help • Cartridge World Environmentalist of the Year Award – prepare the SEMP. Wide Bay Burnett Conservation Council Incorporated (WBBCC) I naugural Mayor’s Regional Significance • Maryborough Lions Encouragement Award – Year 2/3 Award Class Howard State School The inaugural Fraser Coast Mayor’s Regional Significance • GHD Sustainability Award – Transition Town Hervey Bay Award was presented to the Greater Mary Association for its • Possum Paradise Environmental Innovation in Business successful three-and-a-half-year campaign to unite public Award – Wide Bay Institute of TAFE support to stop the building of the Traveston Crossing Dam. • Cardno Primary School Environment Project Award – St James Lutheran College The Mayor’s Regional Significance Award honours a • GHD Secondary School Environment Project Award – significant contribution to the Fraser Coast Region that has St Mary’s College positively changed or impacted on the community and was presented on Australia Day.
The Hervey Bay Foreshore Management Action Plan has been reviewed and will be formally presented to Council in 2010. Implementation of the Foreshore Restoration Plan is 53% complete. A consultant has been contracted to develop a Shoreline Erosion Management Plan. Development of a Mangrove Management Strategy is also underway.
2020 Fraser Coast Regional Council Annual Report 2009–2010 Largest Council revegetation project will revitalise Maria Creek The health of Maria Creek at Howard will improve thanks to the biggest revegetation project ever carried out by Council.
An 800-metre section of creek that passes through the Howard township had little vegetation along the edges allowing inflows of sediment, nutrient and debris into the creek and increasing the rate of bank erosion.
A 10-metre vegetation buffer was established on each side Council officer Joan Cummings (above left) and an onlooker examine the Vanilla Orchid which is pollinated by hand. The Orchid House at the of the creek with the help of Greencorps and volunteers who Hervey Bay Botanic Gardens celebrates its 10th anniversary this year. attended National Tree Day. S eafront Oval Dune restoration C leaner beaches, cleaner oceans, under way in Hervey Bay less flooding Work started on a five-year sand dune restoration project at Stage one of a program to replace eight ocean outfalls across Hervey Bay’s Seafront Oval between Tooan Tooan Creek and the region to improve stormwater flows started with the the WetSide Water Education Park. replacement of three outfalls; two on Urangan Beach and one at the ocean end of Tavistock Street. Many of the semi-mature Cypress pines on the 200-metre long beach front site had died and were a danger to people Larger diameter pipes were installed to accommodate future using or working in the area. growth and flexible tide valves were fitted to the pipes to stop seawater and sand entering the system and causing The natural attributes of Hervey Bay’s foreshore are the city’s blockages. major point of difference from other coastal holiday centres so it is important that they remain attractive. At the same time Council is committed to best practice stormwater management to reduce pollutants and improve The vegetation in the natural areas helps stabilise the sand the quality of stormwater reaching the Bay. dunes and protect the public and privately owned assets along the Esplanade during storms.
A cleaning program ensures our beaches are litter free.
A Lifesty le for Everyone Fraser Coast Regional Council Annual Report21 2009–2010 21 AWARDS
The Fraser Coast Region took four awards in the Wide Bay Burnett judging of the Keep Australia Beautiful Ergon V egetation trimmed on Energy Tidy Towns Awards: Anembo Lakes island The Resource Recovery Award Weeds and fallen trees were removed from an island in the – Council’s Nikenbah Waste Anembo Lakes storm water detention basins at Hervey Bay. Management Facility
The project aimed to progressively remove pepper trees and The Grunfords Pumps Water other woody weeds from the island and replace them with Conservation Award – Wide native species to allow more sunlight to reach the ground Bay Water Corporation for the encouraging ground covers to germinate and improve the development of the Wetside visual amenity of the area. Water Education Park
As weed species are removed they will be replaced with The Outstanding Achievement selective native species that will attract bird life but Award – Tiaro Landcare’s Save discourage the heavier Ibis from nesting in such large the Mary River Turtle project numbers. The Ergon Energy Energy Conservation Champion Award – Council’s sustainability Biodiversity and activities climate change PLG ANNIN FOR THE FUTURE A Habitat and Biodiversity Planning Study was started as part of the Council’s Fraser Coast 2031: Sustainable Growth Strategy. The region-wide study will identify and map core ecological areas as well as important ecological links and disturbed areas requiring rehabilitation. The study will ultimately recommend a framework for future biodiversity planning initiatives to be incorporated into a new planning scheme; however it may also be used to prepare amendments to the existing planning schemes in the interim period. Workers on Anembo Lakes Island.
Land Protection Officer Juliet Musgrave distributes thousands of tiny weevils Cyrtobagous salviniae which are used in the biological control of salvinia weed on Condor Lakes in Hervey Bay. The adult weevils feed on the leaves, stems and roots and the larvae feed on the stems and leaf buds finishing off the plant. These weevils are particularly successful because they do not affect other plants or animals in the ecosystem.
2222 Fraser Coast Regional Council Annual Report 2009–2010 O ur achievements
As a region, we recycle an average of 450 tonnes per month of glass, paper, cardboard, steel and plastic.
Waste management R ecycling Maryborough The $1.3 million Fraser Coast Recycling Centre at Maryborough was officially opened in March 2010. The new centre drastically cut the amount of material going to landfill. Waste Services Team member Kevin Mitchell uses the new touch- Last year 75,000 tonnes of material went to landfill at screen facilities installed at the Nikenbah and Maryborough waste Maryborough. facilities in December 2009.
The new recycling centre, which includes a reuse market R educe Reuse Recycle centre, operates along similar lines to the Council’s centre at Council continued to implement waste management Nikenbah, Hervey Bay. Last year 30,000 tonnes of material solutions incorporating the principles of reduce, reuse and was diverted from going to landfill at Nikenbah. recycle. More than $700,000 was allocated in 2009/10 The Reuse Market at the Fraser Coast Recycling Centre for improvements to landfill sites and gas collection in Nikenbah resells approximately 1,600 cubic metres of infrastructure. reusable items per month. Both Reuse Market Centres are Improvements to waste services included upgrades to managed by community group Reuse & Recycle that engages transfer facilities which are now manned when open and up to 30 people, including volunteers and returned about extending the areas receiving a two-bin service. $106,000 to the community in the 2009/10 year through grants to sporting clubs and community groups. The changes were introduced to meet higher standards imposed by the Environmental Protection Agency in landfill remediation and waste management and have resulted in the cost of disposing of rubbish increasing by 17% or $38 per household.
Recycle and Reuse manager Paul Birchill-Hunt talks with Queensland Corrective Services Commissioner Kelvin Anderson.
A Lifesty le for Everyone Fraser Coast Regional Council Annual Report23 2009–2010 23 HIGHLIGHTS 59km of road network resealed as part of $3.1 million program $4.4 million facelift for Maryborough CBD
2424 Fraser Coast Regional Council Annual Report 2009–2010 B uilt environment Infrastructure Commerce and industry Tourism destination
D ynami c a diverse, innovative and prosperous region Comprehensive regional planning, strategic regional land use plans and innovative tourism and economic development strategies allow us to manage and build upon the rapid growth which creates our prosperity.
Public art takes pride of place
A Lifesty le for Everyone Fraser Coast Regional Council Annual Report25 2009–2010 25 ECONOMIC STIMULUS
Despite the persistent effects of the global economic climate, the number of building and plumbing works applications received by Wide Bay Building Consultants, Council’s building certification team, during the financial year compared favourably with the number received Built environment last year. 876 building work applications – a 1.27% Strategic Planning increase on the year before. Overall value of the works was $91.5 million – P D Online 17.07% higher than the year before. Council has expanded the enquiry options available on 1564 plumbing works applications received – its online development information tool, PD Online, to a 28.2% increase compared with the year offer residents and developers an up to date self service before. development system which now includes Landuse Enquirer. Council’s development assessment team PD Online allows users to track the progress of their processed more than 800 development development applications online, 24 hours a day, seven days applications. a week. Customers have embraced the introduction of online planning tools to access information quickly themselves. A gauge of the popularity of the service is the 25% drop in telephone calls being directed to Council’s Development Development Team. Sh ovel Ready development encouraged In early 2010 Council outlined a new initiative aimed at facilitating substantial new development which would provide significant economic input into the building economy and have a flow-on effect for ratepayers and businesses across the region. The ‘Shovel Ready Development’ initiative enables developers to seek a reduction in infrastructure contributions if their project falls within certain parameters. These include having the necessary development approvals and architectural plans, being able to commence construction within six months and have the project completed within two years.
The 92-year-old Urangan Pier underwent a $2.5 million refurbishment in 2009. As part of the eight-month-long project, about 400 timber piles were replaced with 100 plastic-coasted steel piles. The timber piles were then hauled on to the pier by a crane and transported to Council’s Depot where they were sorted. Some of the piles have historical significance, having come from Fraser Island when logging took place there. The removed piles will be reused as part of landscaping projects around the region.
2626 Fraser Coast Regional Council Annual Report 2009–2010 ROCK WRAPS FOR CRAIGNISH ROAD PROJECT Infrastructure A rock wrapped roading technique was used in a project to realign and reconstruct 850m of Craignish Road in Hervey M ulti-million dollar reseal program Bay because the subgrade was saturated and of very low strength. undertaken About 59 kilometres of the Fraser Coast road network The road was redesigned so the conventional pavement was was resealed under a $3.1 million program. The work was built on top of a 300mm thick layer of large rocks wrapped in completed in two sections with Council staff carrying out geotextile material which allowed water to drain into nearby repairs where necessary before the resealing works were culverts. undertaken by Boral Resources Pty Ltd. The $746,000 project also included two new culverts in the The project included applying bitumen and aggregate to design. existing sealed surfaces to enhance the durability of the road MN AI STREET RECONSTRUCTION with roads being prioritised according to age and condition The $7m contract to rebuild 1.3 km of Main Street between of the existing seal. The project also included resealing McLiver Street and Doolong Road was awarded to local 9.1km of Teddington Road and Eatonvale Road with funds company VDM Bellero. provided by the state government for Local Roads of Regional Significance. The project includes replacing the existing two-lane Main Street, building a new service road, improving drainage, In the 2009/10 budget Council allocated $24 million to street lights and traffic lights at the Urraween-Main Street build and upgrade roads within the region’s 3,200 kilometre intersection. road network to develop a high quality integrated transport network that enhances connectivity. Traffic modelling conducted for the Council indicates that Main Street carried 8,400 vehicle movements a day which Seafront Oval redevelopment is expected to grow to 16,800 vehicle movements a day in Work started on the Civil Works Master Plan for the Seafront 2026. Oval in Hervey Bay. The project will develop the Seafront Oval area into an attractive and functional public park with the capacity to accommodate large events.
Travis Robertson and the Roads Crew
A Lifesty le for Everyone 27 MJR A O FACELIFT FOR MARYBOROUGH Work has finished on the $4.4 million Maryborough CBD Beautification Project.
The project had a number of aims, one of which was to encourage investment and employment opportunities and promote inner-city residential development as well as provide a major section of the landscaped link between the city centre and the riverside parklands.
At the same time the Council completed the $1.2 million redevelopment of the Gatakers Artspace and Portside Passage, a landscaped lane area between Kent and Wharf streets.
The project was funded through the Queensland Government’s Regional Centres Program, Ergon Energy’s Community Powerline Program and by Fraser Coast Regional Council. Pedestrian/cycle track across the Bruce Highway links Maryborough City with Maryborough West.
P edestrian OverPass Council awarded Maryborough company Civil Mining and Construction Pty Ltd the contract to construct a $1.2 million pedestrian and cycle overpass across the Bruce Highway near Maryborough. The three-metre wide overpass provides safe passage for pedestrians and cyclists across the Bruce Highway between Maryborough city on the eastern side and TAFE, Riverside Christian College, the railway station, and Mary Poppins dialogue column in Maryborough’s refurbished residential developments in Maryborough West. The project CBD. is part of Council’s Maryborough Walk and Cycle Strategy and attracted a 50% subsidy from the Queensland Government’s TIDS SafeST road funding program. It also involved land transfers from Queensland Rail.
Cr David Dalgleish at the site of the Bruce Highway pedestrian/cycle overpass.
2828 Fraser Coast Regional Council Annual Report 2009–2010 E conomic Development Advisory Commerce Committee A new Economic Development Advisory committee met for and industry the first time in February 2010. The 21-member committee included representatives from business, the chambers of “Economic development is not the responsibility of commerce and the Urban Development Institute of Australia Council alone. Often our main effort needs to be (UDIA). The committee identified the following top priorities one of facilitation, encouragement and assistance for consideration by Council: to others in government or private enterprise. We • A convention centre in Hervey Bay all have a part to play.” • Continuing the Bridge to Brolga Plan, the Maryborough Kim Roberts, Executive Manager Strategic CBD beautification project and the Gatakers Artspace Integration. projects to revitalise the Maryborough CBD • Implementing the newly introduced Aviation Strategy for Sr t ategy for Economic Development the Fraser Coast airports launched • Developing a large lot industrial precinct adjacent the During 2009/10 Fraser Coast Regional Council continued to Bruce Highway in Maryborough to service the future focus on the importance of economic development to the needs of the Fraser Coast region by launching its Economic Development Strategy in • Assisting the University of Southern Queensland Fraser January 2010. Coast campus to establish the Centre for Economic Development and Enterprise The strategies for maintaining sustainable growth and development within the Fraser Coast include: • Improving the health services to the region, specifically renal services in Maryborough • Creating an environment that is conducive to attracting and maintaining development • Supporting existing business and industry to build the region’s competitive advantage • Ensuring infrastructure meets industry and community needs • Encouraging partnerships, business networks and alliances • Planning and facilitating economic development
Councillor Gerard O’Connell (right) joins Economic Development Officer Andrew Jackson and Principal Officer Major Projects Tracey Genrich to review the Economic Development Strategy which was launched in January 2010.
A Lifesty le for Everyone 29 AWARDS
Fraser Coast Town Crier Ken Ashford – 2010 Australian Town Criers’ Championships; Assistant Town Crier Stephen Battye – Best Dressed Town Crier and his wife Veronica Battye – Best Dressed Escort. Tourism destination Council received a number of awards in the Fraser Coast South Burnett Tourism Awards for “Events play a vital role in creating a desirable Excellence 2009: lifestyle for residents and in attracting tourists to The 2009 World’s Greatest Pub Crawl – the region.” Regional Festivals and Special Events Category Lisa Stephenson, Executive Manager Customer as well as setting the world record Service, Marketing and Tourism. Maryborough Visitor Information Centre – Best VIC; Hervey Bay VIC – finalist Ask a local Our Fraser Coast Magazine – Tourism By providing four fully accredited Visitor Information Promotional Material and Media Award Centres (VICs) located at Hervey Bay, Hervey Bay Airport, Maryborough and Tiaro, Council contributes significantly to the dispersal of tourist dollars and increasing length of visitor stay within the region. Despite tourism statistics 2008/09 Walk-in visitors Fraser Coast Visitor Information Centres indicating a decline in tourists to the region, these Centres 2009/10 90,000.00 serviced over 84,00 walk in visitors during the year – a 13% 80,000.00
increase compared with the previous year; and generated 70,000.00
over $327,500 worth of gross tour sales on behalf of regional 60,000.00 operators. 50,000.00 40,000.00
A total of 72% of visitors rated the Fraser Coast VICs as 30,000.00 exceeding their expectations in the areas of customer 20,000.00 service, presentation of displays, signage and location and 10,000.00 0.00 information and services. Maryborough Tiaro Hervey Bay Hervey Bay Airport TOTAL B ecome a tourist in your own backyard More than 3,000 residents have taken advantage of the region and holiday at home through special deals and Staycations program, an initiative of the Fraser Coast seasonal offers from selected Fraser Coast attractions, tours Regional Council with the support of Fraser Coast South and businesses. Residents join Staycations online or at any of Burnett Tourism, Fraser Coast Chronicle and local business Fraser Coast Regional Council Visitor Information Centres and operators. The focus of Staycations was to bolster the receive discounts of up to 50% when they present their card. tourism industry by encouraging locals to rediscover the
Visitors enjoying themselves at the World’s Greatest Pub Fest.
3030 Fraser Coast Regional Council Annual Report 2009–2010 OURT FAN ASTIC FOUR EVENTS
More than 10,000 people attended the Mary Poppins Festival in July 2009
More than 15,000 people attended the Whale Festival Family Fun Day in August 2009
Approximately 2,000 students participated in the Technology Challenge Maryborough in September 2009
More than 10,000 people attended the World’s Greatest Pub Fest in June 2010 Media exposure for the Pub Crawl and Mary Poppins Festival included the BBC, Australia Associated Press, FM radio stations from Sydney and Melbourne, national magazines, ABC radio stations across Australia and the Queensland Events Weekender television program. As part of its commitment to encouraging events across This type of coverage is worth hundreds of thousands in the region, Council allocated $685,000 to stage significant marketing terms for our region. regional events including the World’s Greatest Pub Fest, Mary Poppins Festival, Whale Festival and Technology Challenge. Council developed and adopted a Regional Events Strategy which sets the vision and aims for regional events staged and Council has developed and maintains a dedicated events supported by Council to maximize the value from the events. website – www.frasercoastevents.com.au and conducts an annual Event Coordinators Workshop in conjunction with Council is a significant sponsor to other community events: Queensland Events to grow the events capacity within the • Fraser Coast Cultural Festival – $40,000 over three years region. This year’s workshop was held at the Brolga Theatre as well as $15,000 in-kind support. in February 2010 attracting 40 participants. • The Fraser Lions Hervey Bay Seafood Festival – $15,000 Events not only give residents great enjoyment, but they and $5000 in-kind support over three years. draw visitors from far and wide creating economic benefits • Fraser Coast Show – $30,000 over three years and such as boosting tourism and promoting the region through significant in-kind support. media exposure. Council also allocated $61,000 through the Community Survey results for the World’s Greatest Pub Fest showed Events Grants Program to community groups to help run that 40% of participants came from outside the region. events.
Fraser Coast Events team members
A Lifesty le for Everyone 31 HIGHLIGHTS $1.4 million transformation of Gatakers Warehouse 42,416 residents use five Fraser Coast library branches
3232 Fraser Coast Regional Council Annual Report 2009–2010 Heritage and culture Community health and safety Community development
H e a l th y a livable, healthy and happy community We aspire to be a healthy, happy community by encouraging cultural diversity, protecting and promoting our heritage, improving public health and safety, and building empowered, participative communities.
Nathan, Quinn and Carol McKeough enjoy Mary River Parklands in Portside with their dog Tiger.
A Lifesty le for Everyone 33 a rt by numbers
During the 2009/10 financial year the Hervey Bay Regional Gallery had:
18 exhibitions including Linked Landscapes by Anneke Silver (Cairns Regional Gallery touring exhibition); No No Hana (Wild Flowers) by Japanese artist Yaeko Niitsu (supported by the KIFA – Kasukabe International Friendship Association); TAFE Students Showcase; and the Hervey Bay Art Society Exhibition
Over 15,500 visitors
25 individual school visits (560 children)
23 visits/activities by other community groups
Heritage and culture The Gallery’s education program – Mudskippers Club Ga takers Artspace and Little Skippers Early The $1.4 million transformation of Gatakers Warehouse in Maryborough into Childhood Program – have Gatakers Artspace has proved an artistic boon. been nominated in the Gallery Hervey Bay company DD Constructions completed the renovation of the and Museum Achievement 1860s building under the guidance of Fraser Coast architect Gavin Patterson Awards 2010 retaining as many of the original features as possible. Bookings started to flow almost immediately and the gallery was completely booked out until the end of 2011 and available time slots in 2012 were filling quickly for exhibitions and workshops in a range of genre from sculpture and painting to music and card making. The project was jointly funded by the State Government’s Q150 Fund, Fraser Coast Regional Council and Gatakers Body Corporate members.
Artist Garry Duncan and Mayor Mick Kruger at the opening of Gatakers Artspace
3434 Fraser Coast Regional Council Annual Report 2009–2010 L ibraries go high tech Ac hievers honoured in Howard Library services have been enhanced with the introduction of Fourteen of Burrum’s finest one-time residents, including an a regional Web Browser-based search application (WebOPAC) Australian Prime Minister, Australian Member of Parliament, which allows library users to search the collections of the five exceptional sportsmen and women and pioneering families Fraser Coast libraries on the internet. Users can also reserve were honoured in the first stage of the Burrum Walk of items on-line from the collections in Hervey Bay, Burrum Achievers in Howard. Heads, Howard, Maryborough and Tiaro libraries. Plaques on steel planter boxes decorated with remnants of Self service kiosks and an automated book scanning system machinery from the Burrum coalfields bear photographs and have also been installed in the main library branches Hervey a short note on each achiever. The planter boxes are in the Bay and Maryborough allowing users to independently check shape of the coal buckets used in the Burrum mines. out and return books and other library items. Fraser Coast historian Margaret Wroe and Marlene Wilson, a The total current membership of Fraser Coast Libraries is long-time researcher from the Maryborough Family History 42,416 (45.9% of the population). With the single Fraser Society, researched the nominees with the help of Burrum Coast Regional Council Library Card, members can access families. items from any of the five libraries in the region. Our total It is anticipated that more achievers from the district will be collection of resources is 229,068. honoured in a similar way at a later date.
Val Grainger is one of 80 volunteers who help out at Fraser Historian Margaret Wroe and Maryborough Family History Society Coast libraries with delivering books to housebound residents, researcher Marlene Wilson inspect one of the Burrum Walk of Achievers plaques in Howard. re-shelving books, repairs and helping with activities for children. Library Assistant Vic Wilson and Customer Services Librarian Tara Webb checking returns at the library chute.
A Lifesty le for Everyone 35 ANIMAL STATS
Animals Registered: 4,222
Dogs Registered: Desexed – 2,436 Whole – 1,774 Over 8 yrs – 561
Community health Cats Registered: Desexed – 11 and safety Whole – 1 Over 8 yrs – 0 Wa nt to play? Animals: Families, schools, kindergartens, child care centres, disability Impounded – 1,520 services, hospitals and family day care providers are Released to Owner – 657 members of the Maryborough Toy Library and Special Needs Rehomed – 133 Resource Centre. Toys, puzzles, games, computers, learning Released to Animal Care aids and large equipment such as slides and trampolines Facility – 222 can be borrowed from the library which has 4,234 resources Released to Refuge – 95 available. 24,815 items were borrowed during the financial Euthanized – 413 year, with the most popular being for special needs clients and including bikes that are adapted to fully support the body, chairs that provide full body support and adapted devices and toys with music, sounds, vibrations, lights and movement.
Dog registrations help kids with cancer Fraser Coast dog owners raised $3,446 to support kids with cancer by registering their pets in September 2009. Fraser Coast Regional Council donated 25 cents from every dog registration renewal paid before September 30 to CanTeen, a support organisation for young people aged 12 to 24 living with cancer. This is the second year Council has nominated a cancer charity to support as an incentive to encourage dog owners to pay their registration fees.
Students from Pialba State and Hervey Bay State High School with members of the Active Transport to School Steering committee
3636 Fraser Coast Regional Council Annual Report 2009–2010 AWARDS
Maryborough’s Toy Library won a 2009 Fraser Coast Disability Action Award in the Community Organisation category for its Special Needs Resource Centre. It was nominated by the Maryborough Special School. The Toy Library supplies resources for Maryborough Special School, Hervey Bay Special School, Maryborough and Hervey Bay Early Intervention Centres and Special Education Units at Maryborough and Hervey Bay Schools. It is one of only six resource centres in Queensland to qualify for funding under the Special Education Department Non Schools Organisations Funding for Resource Centres and Special Resources. Council’s Active Transport to Schools Program in Hervey Bay won two Queensland Heart Foundation Local Kerrie Hunsley from the Maryborough Toy library accepts a disability action award Government Awards including the overall state award. The program is now being extended to other schools in the region. At heal hy jab Council was a regional finalist in the Council and Queensland Health provide free immunisation inaugural Healthy Queensland Awards. clinics for Fraser Coast residents. During the 2009/10 financial year 1,598 children (aged between 2 months and 4 years) were vaccinated at the free weekly immunisation W ork Safe Week clinics in Hervey Bay and Maryborough. 220 adults were also During National Work Safe Week (October 26–30) Fraser vaccinated for either seasonal flu or whooping cough at the Coast Regional Council’s Workplace Health and Safety (WHS) weekly clinics. Team in conjunction with Workplace Health and Safety More than 3,400 school children were immunised through the Queensland developed and delivered a safety pack to 29 local school immunisation program. schools to highlight hazards at school/work, in the home and the neighbourhood and provided information for families on Over 4,400 residents were immunised against H1N1 (swine how to deal with them. In conjunction, the libraries ran a flu) at four immunisation clinics undertaken in collaboration colouring competition with a theme of Bike Safety, offering with Qld Health. 98 adults and children were vaccinated for prize packs that included water bottles, colouring books from swine flu at the regular weekly Clinics and 96 children were emergency services and other goodies. vaccinated for swine flu at clinics run at both Special Schools.
Workplace Health and Safety Regional Manager Rob Nobel, Council’s Workplace Health and Safety Advisor Peter Lennon and Workplace Health and Safety Officer Anita Dale with students from St Mary’s School during Work Safe Week.
A Lifesty le for Everyone 37 O ur achievements
Work started on the All Abilities Playground at the Seafront Oval Extension in Hervey Bay.
The playground features an outline of a giant porpoise and other underwater critter. It was one of 16 to be developed as part of the Queensland Community Government’s All Abilities Playground Project – enabling participation in play. development Other sea-inspired playground elements include totems marking the Southern Cross, so children P lanning our community can ‘navigate by the stars’ and locate the South Pole, as well as public art, an interactive musical The Fraser Coast Community Plan is a requirement under the turtle and a movement-activated sound feature Local Government Act 2009. It will guide Council’s decision which plays 18 recordings, including the sounds making over the next twenty years and incorporates goals, of waves crashing and seagulls squawking. strategies and key actions for the future economic and social well-being of our community along with our approach to Facilities include sheltered barbecue and picnic environmental management and our systems of governance. areas, pathways throughout, and an accessible Council collected community information via the Our Fraser drinking fountain. Coast 2031: Have Your Say project. The project also included a carpark and accessible S eniors in action toilet facilities.
Approximately 700 ‘seniors’ enjoyed Come and Try Activities, The $740,000 project is jointly-funded by the entertainment, food and information displays at the Fraser Queensland Government through the Department Coast Seniors Expo in August 2009. The Expo was the first of Communities (Disability Services) and the event for Seniors Week 2009 and was followed by over Fraser Coast Regional Council. 20 activities spread over two weeks including concerts, a Mayoral morning tea and a ‘Hervey Bay’s Got Talent’-style talent show. With the number of people using motorised mobility scooters Disability Services Minister Annastacia Palaszczuk waved off increasing, the Council’s Seniors in Focus Project organised a convoy of 126 motorised mobility scooters in September four rider education sessions for operators to learn how to 2009 during Disability Action Week. By the time the convoy operate them safely: 60 seniors attended the sessions. travelled from the Seafront Oval at Pialba to the Sound Stage on the foreshore in Scarness, the Fraser Coast had earned a Council also supported the Seniors Drama Group – Rolling Guiness World Record for the biggest mobility scooter convoy. Bones Players to stage its 2010 season in March.
Fraser Coast nabs record for biggest mobility scooter convoy
3838 Fraser Coast Regional Council Annual Report 2009–2010 O ur future – Junior Council “Our Junior Councillors are so enthusiastic and outgoing and always willing to help out with any community event. It makes my job so rewarding.”
Patrice Bates, Youth Services Officer
Fraser Coast Junior Councillors were involved in organising and attending the Wide Bay Youth Summit held during Youth Week 2010 at the Brolga Theatre. The Summit provided opportunities for young people across the Wide Bay to freely express their concerns and the issues they are facing. Other Junior Council highlights for the year included painting community messages on traffic boxes and attending National Young Leaders Day in Brisbane. N ew Residents Council distributed an average of 20 new residents’ kits each month from its Administration Centres and Visitor Information Centres. The kits contain information on events and places to visit, map, community services directory and Council information regarding pets, waste collections and other council services. Ch ristmas Picnic puts smiles on dials More than 150 guests enjoyed a free picnic lunch and entertainment on Christmas Day 2009. The Picnic at the Pines was organised by Reverend Brian Hoole and Cr Belinda McNeven so that no-one had to be alone on Christmas Day. More than 40 people volunteered to help and businesses donated food and goods.
Fraser Coast Junior Mayor Brody Dombrow was awarded Junior Citizen of the Year at Maryborough’s 2010 Australia Day Awards presentations.
Young people from across Wide Bay Burnett enjoyed a Youth Summit hosted by Fraser Coast Junior Councillors during Youth Week.
A Lifesty le for Everyone 39 Statutory information
This section contains a range of information important to Council as an organisation. It includes: • Statutory information required under the Local Government Act; • General organisational information relating to staff policies; and • Other information considered of interest in an annual report.
C ouncillors and Employees’ Other Councillors and staff in attendance who met their own Overseas Travel costs for the trip were: Pursuant to Section 24(1)(a) of the Local Government • Cr Anne Nioa Finance Standard 2005: • Cr Linda Harris Mayor, Mick Kruger and Chief Executive Officer, Andrew Brien • Cr Debbie Hawes undertook overseas travel to Chengdu and Leshan, China • Director Community and Development - Mr Peter Smith during the reporting period. Code of Conduct for Councillors The purpose of the travel was primarily to foster the sister Pursuant to Section 534(1)(n) of the Local Government Act city relationship between the Fraser Coast Regional Council 1993: No complaints were received. and Leshan with additional meetings held with business and educational organisations. The delegation consisted of General Complaints Process representatives of the Fraser Coast Regional Council, Wide Pursuant to Section 534(1)(n)(v) of the Local Government Bay TAFE and University of Southern Queensland. Act 1993: Five complaints were resolved under the General A number of meetings and business related functions were Complaints Process during the reporting period. None of the attended with various Chinese Government officials including complaints related to an alleged breach by a Councillor of the Party Secretary, Vice Mayor, Congress, People’s Political Council’s Code of Conduct. Consultation Conference, Heads of Departments, Education E xpenses Reimbursement Policy Bureau, Tourism organisations and the Leshan Vocational Pursuant to Section 534(1)(f) of the Local Government Act and Technical College. An Education Co-operation Agreement 1993: Council’s Expenses Reimbursement and Provision between Council, the Wide Bay TAFE and the Leshan of Facilities for Mayor and Councillors Policy authorises Vocational and Technical College was also entered into. the payment of reasonable expenses incurred, or to be During the trip the delegation visited the following: incurred, by Councillors; and provides facilities, including • Leshan No. 1 Middle School administrative support staff, to assist Councillors to discharge their duties and responsibilities, having regard to local • Teachers’ University circumstances. • Vocational and Technical College • Various businesses to source authentic Chinese artefacts The policy, which was adopted on 1 October 2008, was for the Chinese garden amended on 27 January 2010 to allow for payment of • Various places of cultural significance accommodation and meal expenses up to $120 per night where the Mayor or Mayor’s delegate is required to stay Meetings were also held with tourism entities in the interests away from their usual place of residence to represent Council of fostering improved tourism relationships. in an official capacity within the region and there is not an The total cost of the trip was: economical alternative method to travel home. These costs are funded through the Mayor’s entertainment expenses • Mayor – $5016 budget as outlined in the policy. • CEO – $4855 A copy of the policy can be viewed on Council’s website at Accommodation expenses were met by the Leshan www.frasercoast.qld.gov.au. Government. 40 C ouncillors’ Remuneration and Eu q al Employment Opportunity Superannuation Pursuant to Section 534(1)(i) of the Local Government Act Pursuant to Section 534(1)(f) of the Local Government 1993: Fraser Coast Regional Council promoted equality of Act 1993: On 27 January 2010 Council resolved the opportunity for all employees and potential employees by: following remuneration rates, amalgamation loading and raising commitment to and awareness of Equal Employment superannuation payments for one year effective 1 January Opportunity (EEO) principles, developing best practice 2010: policies, procedures and guidelines; recognising that cultural diversity is an asset; utilising processes to ensure proper Remuneration Rate as a percentage of the rate payable assessment of merit of applicants; and facilitating work/life to a Member of Queensland Legislative Assembly: balance. Mayor 100%, Deputy Mayor 67.5%, Councillors 60%. In 2010 an EEO survey was undertaken to enable staff to Amalgamation Loading (01/07/09-30/6/10) identify with Local Government Act specified target groups. Mayor $8,300, Deputy Mayor $5,810, Councillors $5,100. The survey returned showed the following EEO identified Superannuation Contributions up to 12% of a Councillor’s groups; base remuneration, provided that Councillors contribute • Women: 210 50%. • Aboriginal & Torres Strait Islander: 14 • People with a Disability: 2 Expenses incurred by and Facilities • Non English speaking background: 2 provided to Councillors Council encourages the participation of members of the Pursuant to Section 534(1)(ea) of the Local Government Act identified target groups who enhance the culture, work 1993: Councillors were provided with electronic equipment environment and capacity to achieve objectives. In the case to enable them to perform their duties. Resources included a of employment all citizens compete equally for jobs and none computer workstation, printer, modem and mobile phone or was excluded on grounds such as gender or race. Council Blackberry as required. embraces the principles of merit and equity in recruitment Expenses were incurred for vehicle usage, conferences, and selection. accommodation, meals, travel and telecommunications. Total expenses were $154,346. Details are in the table below.
C ouncillors’ Remuneration, Superannuation and Expenses July 2009 – June 2010
Councillor Gross Council Expenses Salary/ Superannuation Earnings Contribution Paid Cr Julie Arthur* 84,595 10,151 16,094 Cr Sue Brooks 82,454 9,894 11,713 Cr David Dalgleish 82,454 9,894 17,742 Cr Linda Harris 82,454 10,728 11,407 Cr Debbie Hawes 82,454 9,894 12,769 Cr Barbara Hovard 82,454 9,894 7,715 Cr Mick Kruger 138,168 16,580 24,674 Cr Belinda McNeven* 90,737 10,888 13,749 Cr Les MucKan 82,454 9,894 13,158 Cr Anne Nioa 82,454 9,894 11,806 Cr Gerard O’Connell 82,454 9,894 13,519
NB: Expenses include vehicle costs, internet, telephone, travel expenses, accommodation and conferences. Expenses relating to Conferences may include expenditure for more than one Councillor however only shown against one Councillor. * Includes Deputy Mayor allowance: Cr McNeven 01/07/09–07/04/10, Cr Arthur 07/04/10–30/06/10 A Lifesty le for Everyone 41 Financial Statements and Auditor’s Shael r ho der’s Delegates Certificate Pursuant to Section 643 of the Local Government Act 1993: Pursuant to Section 532 of the Local Government Act 1993: Fraser Coast Regional Council had one Local Government Council’s Financial Statements and Auditor’s Certificate are Owned Corporation – Wide Bay Water Corporation in the attached at the end of this report. reporting period. Council did not have any delegates on the board but monitored its performance through the Statement E xpenditure in relation to Consultants, of Corporate Intent. Advertising, Entertainment, Hospitality C ompetitive Neutrality and Grants to Community Organisations Pursuant to Section 847 of the Local Government Act 1993: Pursuant to Section 24(1)(b) of the Local Government No competitive neutrality complaints were received during Finance Standard 2005: The following amounts were the reporting period. expended: C ommercial Business Units Consultants $ 3,695,413 Pursuant to Section 581(3) of the Local Government Act Advertising 489,892 1993: Council did not operate any commercial business units Entertainment & Hospitality 64,876 during the reporting period. Grants - Community Organisations 100,127 L ist of Registers TOTAL $ 4,350,308 Pursuant to Section 534(1)(d) of the Local Government Jointc Lo al Authority Arrangements Act 1993 the following Registers are kept and are open to inspection: Pursuant to Section 59 of the Local Government Act 1993: No Joint Local Authority Arrangements were entered into • Register of Councillors’ Interests during the reporting period. • Register of Electoral Gifts • Register of Enterprises Cha nges to Tenders • Register of Business Activities to which Competitive Pursuant to Section 488(2) of the Local Government Act Neutrality Principles Apply 1993: No changes were made to tenders after the tenders • Register of Local Laws were submitted. • Register of Roads Sh ort Listing after Calling for • Register of Regulatory Fees Expressions of interest (EOI) • Register of Delegations by CEO Pursuant to Section 489(1) of the Local Government Act • Register of Restricted Dogs 1993: No resolutions were made to invite Expressions of Interest (EOI) before inviting tenders during the reporting period. F reedom of Information S enior Contract Employee Remuneration There were 24 Right to Information applications and Package 3 Information Privacy applications during the 2009/10 reporting period. Reviews undertaken: Internal 3, External 3. Pursuant to Section 201 of the Local Government Act 2009: the total remuneration packages payable to senior Details of Special Rates and Charges contract employees including the Chief Executive Officer and Pursuant to Section 971 of the Local Government Act 1993 employees reporting directly to Chief Executive Officer are:1 the following levies and charges were imposed: senior contract employee with a total remuneration package in the range of $100,000–$130,000; 3 senior contract Council Rural Fire Levy on rateable land not included in employees with a total remuneration package inthe range the Urban Fire Brigade area to raise funds for the purchase of $190,000–$235,000 and 1 senior contract employee with and maintenance of buildings, land and/or equipment for a total remuneration package in the range of $235,000– the rural brigades. The levy was based on the requirements $265,000. of the brigades as set out in their budgets and agreed to annually by Council. *Remuneration package includes salary and superannuation at 12%. 42 Fraser Island Garbage Levy on rateable land within the • Wide Bay Burnett Regional Organisation of Councils designated area to raise revenue for the collection and • Wide Bay Burnett Regional Roads Group disposal of garbage on Fraser Island. • Wide Bay Regional Planning Advisory Committee (RPAC) • Burnett Mary Regional Group Board Sanitary Conversion Charge on all rateable land in Howard • Mary River Community Reference Group (to Burnett Mary that had an existing nightsoil service to fund the cost of Regional Group) an alternative sewerage treatment system to the above • Mary Local Government Authority Cluster (Committee of properties only. Burnett Mary Regional Group) S ummary of rate rebates • Dundowran Water Board and concessions • Fraser Coast South Burnett Regional Tourism Board Ltd • Local Disaster Management Group In considering the application of concession under Chapter • Fraser Island World Heritage Area Management 14, Part 6 of the Local Government Act 1993, Fraser Coast Committee Regional Council was guided by the principles of: Equity – • Rural Fire Brigades having regard to the different levels of capacity to pay within • Hervey Bay Community Trust the local community; Consistency – the same treatment for • Hervey Bay Cultural Trust ratepayers receiving concessional rating; and Transparency • Brolga Theatre Board Inc – making clear the requirements necessary to receive • Sunwater Lower Mary Customer Council concessions. • Widelinx In accordance with the above principles, Council developed • Audit Committee policies in respect of the following: • Urban Renewal Design Reference Group • LGAQ Planning Reference Group (a) Remission of rates and charges for pensioners – • Education Hervey Bay Council accepted that certain classes of pensioners • Hervey Bay Chamber of Commerce had contributed rates over a period of time and/or are • Mary River Catchment Coordinating Committee restricted by a fixed income and should be afforded a • Hervey Bay Safety Network concession in respect of rates and charges. • Joint Use Library Advisory Committee Total expenditure was $1,587,048 for the period 1 July • Burrum District Heritage Society Committee 2009 to 30 June 2010. • Tiaro & District Landcare Group (b) Assistance to recreation, sporting and community groups • Maryborough Chamber of Commerce - Council also recognised that there were organisations • Access Advisory Committee which operate for the general benefit of the community • Market Day Advisory Committee with limited financial resources including schools, • Maryborough Technology Challenge Advisory Committee churches, welfare, youth organisations, emergency • Fraser Coast Motor Park Inc services, aged care, and sporting organisations. Such • World’s Greatest Pub Crawl Advisory Committee organisations may have received a concession based on • Fraser Coast Community Health Council their rates and charges. • Wide Bay Burnett Aviation Group Total expenditure was $358,297 for the period 1 July • Boral Quarries Liaison Group 2009 to 30 June 2010. • Tiaro Chamber of Commerce • Tiaro Development & Progress Association (c) To encourage the prompt payment of rates and charges • Wide Bay Burnett Regional Water Supply Strategy – a 10% discount was allowed if all rates and charges were Strategy Management Committee paid in 45 clear days after the issue of a rate notice. • Fraser Coast Environmental Advisory Committee Total discount allowed was $8,913,297 for the period • Queensland Coastal Councils Group 1 July 2009 to 30 June 2010. • Fraser Coast Inclusive Communities Advisory Team • Joint Civic Precinct Advisory Committee C ouncil Representation • Fraser Coast Regional Council Heritage Advisory Fraser Coast Councillors represent the interests of the region Committee on a number of external committees and organisations • Sister Cities Community Committee including: • Fraser Coast Water Advisory Committee • Coastal Management Taskforce • Fisheries Dialogue Forum
A Lifesty le for Everyone 43 Borrowing Policy Summary Controlled Reserves and Roads Pursuant to Section 23(2)(a) of the Local Government Pursuant to Section 25 of the Local Government Finance Finance Standard 2005, the annual report must contain Standard 2005, the Fraser Coast Regional Council had details of Council’s Borrowing Policy. control of:
Borrowings were raised to fund the acquisition, construction 1,085 kilometres sealed and major refurbishment of non-current assets. 1,127 kilometres unsealed TOTAL: 2,212 kilometres of road Consideration for borrowing was given to capital projects with an estimated useful life of ten years or more in order to 201,168 hectares of reserve land under the Land Act apportion costs on an equitable basis over future generations 1994, of which 1,288 hectares were leased to sporting of ratepayers. Council maintained a Long Term Strategic and community groups. Financial Plan in order to demonstrate its long term financial viability and ability to service loan repayments. C ommunity Financial Report The Community Financial Report is intended to simplify Council proposed to keep debt servicing costs below a complex financial information, making it easier to understand maximum ceiling of 25% of annual rates revenue within the Council’s income statement, balance sheet and cash flow respective funds so as not to place undue burden upon future statement which are prepared in accordance with legislation. generations.
Proposed borrowings and expected loan terms for the financial years from 2009/2010 to 2014/2015 are set out below:
Current New Borrowings Expected Purpose 2009/10 2010/11 2011/12 2012/13 2013/2014 2014/2015 Term Administration & Land 2,129,000 111,000 0 0 0 0 20 years
Airport 700,000 560,000 900,000 0 0 0 20 years
Coastal Management 740,000 0 0 1,500,000 0 0 20 years
Cultural/Community Facilities 1,797,443 3,250,000 0 0 0 0 10-20 yrs
Drainage 390,000 960,200 1,522,800 1,702,000 1,364,000 845,700 20 years
Other Facilities & Structures 3,934,000 3,439,000 5,500,000 0 0 0 10-20 yrs
Roads 8,865,318 4,907,100 4,606,600 5,475,200 4,335,300 5,775,600 10-20 yrs
Sewerage Infrastructure 4,439,000 0 0 0 0 0 20 years
Waste Management 250,000 350,000 455,000 740,000 0 0 10-20 yrs
Water Infrastructure 1,509,000 0 0 0 0 0 20 years
Total $ 24,753,761 13,577,300 12,984,400 9,417,200 5,699,300 6,621,300
44 A lifestyle for everyone
I love the Fraser Coast for the climate. The people are friendly and hospitable and one is always greeted with a smile, even from strangers. The shopping is great with lots of choices. The parks and gardens are always maintained with plenty of activities for young and old alike. I love living here! L Nebel, resident
The simplicity of our lifestyle in this semi urban setting fills me with contentment. Life can be so complicated; perhaps if we stop, look and listen, our Fraser Coast has something for everybody in its beauty all around us in our daily lives. There is so much of interest to do here that we have it all. W Rylatt, resident
Living on the Fraser Coast! Why wouldn’t you? Leisure, lifestyle and affordability in an area which has the perfect climate and beautiful things to see. Our children are safe and happy and we enjoy the community lifestyle. B White, resident FEEDBACK
If you have a comment or question about this Annual Report, here’s how to contact us:
Write: Organisational Services Fraser Coast Regional Council PO Box 1943, Hervey Bay Qld 4655
Web: www.frasercoast.qld.gov.au
Email: [email protected]
Phone: 1300 79 49 29
Fax: (07) 4197 4455 Community Financial Report
ANNUAL REPORT 2009–2010
A LIFESTYLE FOR EVERYONE FRASER COAST REGIONAL COUNCIL 2009–2010COMMUNITYCOMMUNITY FINANCIAL FINANCIAL REPORT REPORT 2009 / 10
The Community Financial Report is intended to simplify complex financial information, making it easier to understand Council’s income statement, balance sheet and cash flow statement, which are prepared in accordance with relevant accounting standards.
The financial statements for this period covers the financial result for the Fraser Coast Regional Council (FCRC) and its major controlled entity – Wide Bay Water Corporation.
In addition Council owned and controlled the following entities, the results of which do not form part of Council’s financial statements:
- Widelinx Pty Ltd - Hervey Bay (Community Fund) Ltd - Hervey Bay (Cultural Fund) Ltd - The Brolga Theatre Board Inc
Sound financial management is crucial in the successful running of a local government. However, maintaining and controlling Council’s finances is very similar to managing a family budget. Money has to be earned, bills need to be paid, borrowings should be kept to a minimum, and any savings are set aside for future needs.
Like the family budget, the Council needs to carefully consider how to manage its money. In budget deliberations, Councillors and staff work together to plan the region’s expenditure for the upcoming year.
As mentioned above, there are four primary financial statements, each providing different but related information. The purpose of each and their relationship with each other are detailed below.
2 FRASER COAST REGIONAL COUNCIL COMMUNITY FINANCIAL REPORT 2009 / 10
INCOME STATEMENT
This statement shows Council’s financial performance during the period – how we spend the money received on providing services to the community.
Revenue in - Expenses out = Result for the Year.
The Income Statement includes ordinary revenues and expenses from operating activities and capital income and expenditure. Capital income and expenditure is money received or spent on assets and infrastructure items such as parks, roads, drains, coastal walls, water and sewerage infrastructure, land, buildings and plant & equipment. Capital income is usually sourced from grants, subsidies and developers contributions. Operating expenditures are those required to run the day to day operations of the organisation, such as wages, maintenance costs, materials, depreciation and finance costs.
The Income Statement for the period 1st July 2009 to 30th June 2010 shows a net operating (loss) of ($10,156,465)*. This operating loss is primarily the result of unfunded depreciation for the period, which does not necessarily represent a shortfall of available funds.
Information at a Glance 2009/10 2009/10 ($000) ($000) Consolidated Council Revenue 176,629 116,894 Expenses (164,613) (108,736) Operating Result Profit/(Loss) 12,016 8,158 (revenue – expenses)
Net Operating Result Profit/(Loss) (10,156)* (6,558) (Operating Result Profit/(loss) – Net capital Sources)
Number Rateable Properties 47,800 47,800
What were the major sources of income to Council – Where did the money come from?
Council’s major source of revenue is rates and charges which totalled over $110 million or 76% of total consolidated revenue for the 2009/10 financial year. The major sources of rates income include general rates, charges for water access, water consumption, waste water and waste disposal.
3 FRASER COAST REGIONAL COUNCIL 2009–2010COMMUNITYCOMMUNITY FINANCIAL FINANCIAL REPORT REPORT 2009 / 10
Information at a Glance 2009/10 2009/10 ($000) ($000) Consolidated Council Rates & Charges 110,685 62,923 Fees & Other Income 24,252 23,285 Interest Earnings 4,545 4,746 Grants & Subsidies 7,930 7,442
What expenses did Council have to meet – How was the money spent?
Council provides a wide range of services to the community covering development services, economic development, airports, tourism, recreation & sport, community & culture, infrastructure, health & environment, waste disposal and water & sewerage services.
Information at a Glance 2009/10 2009/10 ($000) ($000) Consolidated Council Employee Costs 51,092 35,325 Materials & Services 46,252 31,487 Finance Costs 7,783 3,099 Depreciation 52,442 35,043 Unfunded Depreciation (10,156) (6,558)
Depreciation records the annual consumption of assets owned by Council. As well as representing their rate of consumption, it is also an indicator of the amount of money required on an annual basis for the future replacement of assets.
If Council does not raise sufficient revenue on an annual basis to fund depreciation, in the long term Council may not be able fund future asset replacement, leading to a deterioration of its asset base and the services provided. Currently Council funds approximately 80.6% of its total depreciation.
4 FRASER COAST REGIONAL COUNCIL COMMUNITY FINANCIAL REPORT 2009 / 10 BALANCE SHEET
The Balance Sheet shows what we own (assets), what we owe others (liabilities) and our net community wealth (equity).
Assets
The value of community assets has increased rapidly in recent years as new infrastructure and other assets are provided to support the growing population. New infrastructure is acquired through Council investment and contributions by developers. Council eventually takes ownership and responsibility for replacement of community assets built by developers. These include such things as roads, drainage, water & waste water infrastructure and parklands.
In addition, Council holds other short term assets including cash assets held in bank accounts and has investments of approximately $105 million. These cash reserves are funds Council puts aside for future projects such as replacement of roads and stormwater drainage systems.
Liabilities
Council’s largest liability is its interest bearing loans with Queensland Treasury Corporation (QTC), which at 30 June 2010 stood at approximately $86.3 million ($163.5 million – including WBWC).
Council undertakes a loan borrowing program to fund new major facilities that are constructed to service community needs. In the current financial year, Council borrowed a further $24.73 million and repaid $4.0 million (consolidated - $33.3m, repaid $7.3m). Affordability indicators show that Council is able to service its debt position.
Information at a Glance 2009/10 2009/10 ($000) ($000) Consolidated Council Assets (what the community owns) 1,866,284 1,516,754 Less Liabilities (what the community owes) (186,576) (117,690) Equity (community wealth) 1,679,708 1,399,064 Represented by: Council Capital and Retained Surplus 1,372,243 1,165,677 Asset Revaluation Reserve 224,361 150,283 Other Reserves 83,104 83,104 Equity (community wealth) 1,679,708 1,399,064
5 FRASER COAST REGIONAL COUNCIL COMMUNITY FINANCIAL REPORT 2009 / 10 2009–2010 COMMUNITY FINANCIAL REPORT
Community equity represents the net value of total community assets or the wealth of the Region – ie what our community owns.
As show above, the net wealth of the Fraser Coast Regional Council as at 30 June 2010 was almost $1.68 billion.
Capital Works (investment in community infrastructure)
Total capital additions to Council’s non-current assets during the period totalled $57.8 million. The majority of these were a result of the construction of new assets, funded from surplus funds, grants and subsidies, loans and cash reserves.
6 FRASER COAST REGIONAL COUNCIL COMMUNITY FINANCIAL REPORT 2009 / 10
STATEMENT OF CASH FLOWS
The Statement of Cashflows demonstrates how Council receives and spends money during the year.
Information at a Glance 2009/10 2009/10 ($000) ($000) Consolidated Council Cash Opening Balance 88,968 84,265 Plus Cash Received 198,293 133,463 Less Cash Spent (182,251) (115,590) Cash Closing Balance 105,010 102,138
Cash on hand is made up of working capital to meet the short term operating expenses, reserves for specific projects previously approved, and unspent depreciation cash for general capital projects approved in the budget process.
Council’s Liquidity
An important indicator in determining the financial wellbeing of an organisation is to measure the ability for it to meet financial commitments when they fall due. This indicator is commonly known as the working capital ratio – which compares the value of short term assets versus short term liabilities. A one-to-one ratio is considered to reflect a sound ability of an organisation to have sufficient funds to maintain its cash flows, and meet short term commitments. Council’s working capital ratio currently is 4.03 to 1, and as such, it demonstrates a strong financial position in being able to meet its commitments.
Other Financial Ratios Consolidated Council
Interest cover ratio: The percentage of interest costs to total recurrent revenue 5.3% 3.1%
Debt servicing ratio: The percentage of the Council's total recurrent revenue that is used to service loan interest and principal repayments 10.2% 7.2%
General rate revenue ratio: The Council's dependence on general rate revenue as a percentage of total recurrent revenue 34.5% 51.7%
Revenue ratio: The Council's dependence on net rates and utility charges as a percentage of total recurrent revenue 75.1% 64.0%
Debt exposure ratio: The percentage of Council's capital debt to total community equity 9.7% 6.2%
Unfunded depreciation ratio: The percentage of unfunded depreciation to the total depreciation expense 19.4% 18.7%
Rate arrears ratio The percentage of rates and charges receivable to net rate and charges revenue Measures the effectiveness of Council's collection of rates and charges 11.4% 20.1%
7 2009–2010 FINANCIAL STATEMENTS FRASER COAST REGIONAL COUNCIL
Statement of Comprehensive Income
For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $ Income Revenue Recurrent Revenue Rates and levies 3 (a) 110,684,898 104,534,939 62,923,161 73,956,281 Fees and charges 3 (b) 12,865,681 17,797,666 12,451,908 17,166,095 Rental and levies 3 (c) 410,046 561,086 395,486 546,126 Interest received 3 (d) 4,545,482 6,169,990 4,746,808 5,528,970 Sales of contract and recoverable works 3 (e) 7,401,832 10,073,166 1,937,721 3,398,324 Other recurrent income 3 (f) 3,574,322 3,883,398 8,499,402 10,961,737 Grants, subsidies, contributions and donations 4 (i) 7,930,236 12,516,866 7,442,070 12,043,504 Total recurrent revenue 147,412,497 155,537,111 98,396,556 123,601,037
Capital revenue Grants, subsidies, contributions and donations 4 (ii) 28,910,662 63,872,442 18,187,446 27,590,602 28,910,662 63,872,442 18,187,446 27,590,602 Total revenue 176,323,159 219,409,553 116,584,002 151,191,639
Capital income 5 305,468 750,456 309,769 750,456 Total income before gain on restructure of local government 2 (a) 176,628,627 220,160,009 116,893,771 151,942,095
Net gain on restructure of local government 7- 1,406,928,152 - 1,225,387,779 Total income 176,628,627 1,627,088,161 116,893,771 1,377,329,874
Expenses Recurrent expenses Employee benefits 8 (51,092,109) (58,664,422) (35,325,275) (44,899,322) Materials and services 9 (46,252,144) (61,970,404) (31,486,522) (47,120,314) Finance costs 10 (7,782,765) (9,082,536) (3,099,319) (4,291,485) Depreciation and amortisation 11 (52,441,944) (57,401,716) (35,043,163) (44,706,493) Total recurrent expenses (157,568,962) (187,119,078) (104,954,279) (141,017,614)
Capital expenses 12 (7,043,981) (7,570,058) (3,781,991) (5,665,191)
Total expenses 2 (a) (164,612,943) (194,689,136) (108,736,270) (146,682,805) Net result attributable to council 12,015,684 1,432,399,025 8,157,501 1,230,647,069
Increase / (decrease) in asset revaluation surplus 1,242,757 233,442,456 - 160,259,304
Total comprehensive income for the period 13,258,441 1,665,841,481 8,157,501 1,390,906,373
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
11 8 FRASER COAST REGIONAL COUNCIL
Statement of Financial Position
As at 30 June 2010 Consolidated Council 2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $
Current Assets Cash assets and cash equivalents 15 105,010,274 88,968,493 102,138,161 84,264,956 Trade and other receivables 16 (a) 22,383,487 25,245,795 23,303,881 20,723,049 Inventories 17 893,863 981,018 281,420 452,127 128,287,624 115,195,306 125,723,462 105,440,132 Non-current Assets Trade and other receivables 16 (b) - 1,564,000 15,627,374 1,564,000 Investments 18 1,991,000 - 297,243,349 141,589,153 Land held for development and sale 19 1,755,979 3,635,221 1,755,979 3,635,221 Property, plant and equipment 20 (a) 1,733,247,086 1,714,100,791 1,075,761,189 1,231,080,977 Intangible assets 21 1,001,643 1,392,139 641,933 1,022,415 1,737,995,708 1,720,692,151 1,391,029,824 1,378,891,766 TOTAL ASSETS 1,866,283,332 1,835,887,457 1,516,753,286 1,484,331,898
Current Liabilities Trade and other payables 22 16,078,973 25,686,674 26,505,926 22,766,349 Provisions 23 6,254,373 5,661,444 4,499,633 4,453,653 Borrowings 24 9,483,157 8,577,991 3,830,673 5,259,520 Other liabilities 25 52,372 249,397 5,510 117,273 31,868,875 40,175,506 34,841,742 32,596,795 Non-current Liabilities Provisions 23 699,894 763,354 342,258 510,620 Borrowings 24 154,006,749 128,832,435 82,505,412 60,318,110 154,706,643 129,595,789 82,847,670 60,828,730 TOTAL LIABILITIES 186,575,518 169,771,295 117,689,412 93,425,525
NET COMMUNITY ASSETS 1,679,707,814 1,666,116,162 1,399,063,874 1,390,906,373
Community Equity Council Capital: Investment in capital assets 26 1,359,548,792 1,263,567,220 1,157,188,943 1,156,958,019 Asset revaluation surplus 27 224,708,687 233,442,456 150,282,779 160,259,304 Retained surplus 28 12,345,934 102,271,928 8,487,751 6,854,492 Other reserves 29 83,104,401 66,834,558 83,104,401 66,834,558
TOTAL COMMUNITY EQUITY 1,679,707,814 1,666,116,162 1,399,063,874 1,390,906,373
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
22 9 2009–2010 FINANCIAL STATEMENTS (1) - - - - - 274,682 274,681 2009 4,310,450 2,252,278 1,976,197 3 231,700,540 1,425,602,016 1,665,841,481 1,666,116,162
------333,212 333,212 1,242,757 2010 Total 12,015,684 13,258,441 1,666,116,162 1,679,707,814
- 2009 (1,469,785) (141,891,147) 1,263,567,220 1,263,567,220
- - - 2010 95,981,572 13,215,454 82,766,118 Capital Council Note 26 1,359,548,792
1,406,928,152
- - - - - 201,869 2009 1,540,047 231,700,540 233,442,456 233,442,456
1,263,567,220
- 2010 1,242,757 1,242,757 Asset (9,976,525) (9,976,525) surplus Note 27 233,442,456 224,708,687 revaluation
- - 2009 78,917,862 66,834,558 66,834,558 25,126,131 (37,209,435)
- - 8,992,103 2010 Other (3,238,929) 66,834,558 43,775,614 83,104,401 16,269,843 Note 29 (33,258,945) reserves
- 436,150 4,108,581 2,252,278 1,744,467 2009 (78,917,862) (25,126,131) 102,271,928 179,100,581 1,425,602,016 1,432,399,025 (1,330,127,097)
- - - - - $ $ $$$$$$$$ (8,992,103) 12,015,684 12,345,934 12,015,684 2010 (43,775,614) (49,173,961) 102,271,928 surplus (101,941,678) Note 28 (deficit) Retained
(1,406,928,152)
3 Property, plant & equipment Prior period adjustment from restructure of local government Revaluations: Transfers to other reserves Equity Investment in Wide Bay Water Capital value contained in the gain Amalgamation Adjustment Transfers to(from) capital Transfers to constrained works reserve FRASER COAST REGIONAL COUNCIL Statement of Changes in Equity For the year ended 30 June 2010 Consolidated Total recognised income and expense Total transfers Prior period adjustment Net income(loss) recognised direct to equity: Surplus for the period Balance at beginning of period Prior period adjustment - FCRC note 39(c) Prior period adjustment - WBWC note 39(c) Prior period adjustment - WBWC note 39(c) Transfers of capital amounts arising from council activities: Balance at end of period Transfers to(from) reserves The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies. 10 FRASER COAST REGIONAL COUNCIL
Statement of Cash Flows For the year ended 30 June 2010 Consolidated Council 2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Cash flows from operating activities : General rates and utility charges 103,280,337 112,419,957 61,249,019 81,841,299 Rental and levies, fees and charges 12,668,449 18,253,278 12,668,449 16,967,495 Grants, subsidies and contributions 7,761,111 11,897,468 7,272,945 11,424,106 Dividend received - - 468,206 2,342,834 Income tax equivalent received - - 2,934,389 2,588,541 Interest received 3,638,999 5,757,032 3,945,238 5,116,012 Other income 13,136,273 12,520,629 4,305,019 10,241,442 GST received 2,697,824 11,268,549 2,697,824 7,103,905 Payments to suppliers (45,598,742) (50,141,733) (28,967,994) (38,045,631) Payment to employees (52,409,583) (58,514,604) (35,271,029) (45,300,490) Interest expense (7,283,451) (8,419,304) (2,668,349) (3,676,637) GST paid (2,193,881) (12,893,936) (2,193,881) (8,389,149) Net cash inflow (outflow) from operating activities 35 35,697,336 42,147,336 26,439,836 42,213,727
Cash flows from investing activities: State Government subsidies & grants 14,253,092 30,059,827 6,598,217 10,833,449 Capital contributions 2,558,862 15,326,926 2,558,862 7,572,032 Payments for property, plant and equipment (67,349,140) (88,848,613) (41,564,984) (41,380,200) Payments for intangible assets (141,990) (570,776) (141,990) (570,776) Proceeds from sale of investment property 1,576,960 726,045 1,576,960 726,045 Proceeds from sale of property plant and equipment 6 1,803,179 1,009,489 1,703,634 891,263 Net movement in loans and advances 1,564,000 - 1,564,000 - Net cash inflow (outflow) from investing activities (45,735,037) (42,297,102) (27,705,301) (21,928,187)
Proceeds from borrowings 24 33,354,000 48,920,000 24,754,000 23,281,000 Principal repayment of loan received - - 1,109,082 - Repayment of borrowings 24 (7,274,519) (8,239,707) (3,995,545) (4,710,157) Net cash inflow (outflow) from financing activities 26,079,481 40,680,293 21,867,537 18,570,843
Net increase (decrease) in cash held 16,041,780 40,530,527 20,602,072 38,856,383 Cash transferred on the restructure of local government 7 - 48,437,966 - 45,408,573 Cash transferred for Fraser Coast Water - - (2,728,867) - Cash at beginning of reporting period 88,968,493 - 84,264,956 - Cash at end of reporting period 15 105,010,274 88,968,493 102,138,161 84,264,956
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
55 11 2009–2010 FINANCIAL STATEMENTS ------2009 4,310,450 4 160,057,435 1,226,538,488 1,390,906,373 1,390,906,373
------8,157,501 8,157,501 2010 Total 1,390,906,373 1,399,063,874
2009 (68,429,760) 1,156,958,019 1,225,387,779 1,156,958,019
230,924 2010 13,215,454 Capital Council (12,984,530) Note 26 1,156,958,019 1,157,188,943
- 201,869 2009
- - - 2010 Asset (9,976,525) (9,976,525) surplus Note 27 160,259,304 160,259,304 150,282,779 revaluation 160,259,304
160,057,435
2009 25,126,131 78,917,862 66,834,558 66,834,558 (37,209,435)
8,992,103 2010 Other (3,238,929) 66,834,558 43,775,614 83,104,401 16,269,843 Note 29 (33,258,945) reserves
- - 4,108,581 6,854,492 2009 (25,126,131) (78,917,862) 105,639,195 1,230,647,069 1,226,538,488 (1,225,387,779) (1,223,792,577)
- $ $ $$$$$$$$ 8,157,501 6,854,492 8,487,751 8,157,501 (8,992,103) (6,524,242) 46,243,475 2010 (43,775,614) surplus Note 28 (deficit) Retained
4 from restructure of local government Prior period adjustment Property, plant & equipment Transfers to(from) capital Capital value contained in the gain Transfers to constrained works reserve Transfers to other reserves Revaluations: Transfer Fraser Coast Water capital FRASER COAST REGIONAL COUNCIL Statement of Changes in Equity For the year ended 30 June 2010 Total recognised income and expense Council Total transfers Prior period adjustment - FCRC note 39(a) Transfers of capital amounts arising from council activities: Transfers to(from) reserves Surplus for the period Balance at beginning of period Net income(loss) recognised direct to equity: The above statement should be read in conjunction with the accompanying notes and summary of significant accounting policies. Balance at end of period 12 FRASER COAST REGIONAL COUNCIL
Financial Report For the year ended 30 June 2010
Table of Contents Note Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements 1 Summary of Significant Accounting Policies 2 Analysis of results by function 3 Revenue analysis 4 Grants, subsidies, contributions and donations 5 Capital income 6 Gain (loss) on the disposal of capital assets 7 Gain on restructure of local government 8 Employee benefits 9 Materials and services 10 Finance costs 11 Depreciation and amortisation 12 Capital expenses 13 Write off of capital assets 14 Loss on impairments 15 Cash assets and cash equivalents 16 Trade and other receivables 17 Inventories 18 Equity investments 19 Land held for development and resale 20 Property, plant and equipment 21 Intangible assets 22 Trade and other payables 23 Provisions 24 Borrowings 25 Other liabilities 26 Council Capital 27 Asset revaluation surplus 28 Retained surplus 29 Other reserves 30 Commitments for expenditure 31 Events after the reporting period 32 Contingent liabilities 33 Superannuation 34 Trust funds 35 Reconciliation of net result attributable to council to net cash flow from operating activities FRASER COAST REGIONAL COUNCIL
Financial Report For the year ended 30 June 2010
Table of Contents - continued
36 Council controlled entities, corporations and companies 37 Financial instruments 38 National competition policy 39 Correction of errors 40 Transfer of Water Business Management Certificate Independent Audit Report FRASER COAST REGIONAL COUNCIL
Statement of Comprehensive Income
For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $ Income Revenue Recurrent Revenue Rates and levies 3 (a) 110,684,898 104,534,939 62,923,161 73,956,281 Fees and charges 3 (b) 12,865,681 17,797,666 12,451,908 17,166,095 Rental and levies 3 (c) 410,046 561,086 395,486 546,126 Interest received 3 (d) 4,545,482 6,169,990 4,746,808 5,528,970 Sales of contract and recoverable works 3 (e) 7,401,832 10,073,166 1,937,721 3,398,324 Other recurrent income 3 (f) 3,574,322 3,883,398 8,499,402 10,961,737 Grants, subsidies, contributions and donations 4 (i) 7,930,236 12,516,866 7,442,070 12,043,504 Total recurrent revenue 147,412,497 155,537,111 98,396,556 123,601,037
Capital revenue Grants, subsidies, contributions and donations 4 (ii) 28,910,662 63,872,442 18,187,446 27,590,602 28,910,662 63,872,442 18,187,446 27,590,602 Total revenue 176,323,159 219,409,553 116,584,002 151,191,639
Capital income 5 305,468 750,456 309,769 750,456 Total income before gain on restructure of local government 2 (a) 176,628,627 220,160,009 116,893,771 151,942,095
Net gain on restructure of local government 7- 1,406,928,152 - 1,225,387,779 Total income 176,628,627 1,627,088,161 116,893,771 1,377,329,874
Expenses Recurrent expenses Employee benefits 8 (51,092,109) (58,664,422) (35,325,275) (44,899,322) Materials and services 9 (46,252,144) (61,970,404) (31,486,522) (47,120,314) Finance costs 10 (7,782,765) (9,082,536) (3,099,319) (4,291,485) Depreciation and amortisation 11 (52,441,944) (57,401,716) (35,043,163) (44,706,493) Total recurrent expenses (157,568,962) (187,119,078) (104,954,279) (141,017,614)
Capital expenses 12 (7,043,981) (7,570,058) (3,781,991) (5,665,191)
Total expenses 2 (a) (164,612,943) (194,689,136) (108,736,270) (146,682,805) Net result attributable to council 12,015,684 1,432,399,025 8,157,501 1,230,647,069
Increase / (decrease) in asset revaluation surplus 1,242,757 233,442,456 - 160,259,304
Total comprehensive income for the period 13,258,441 1,665,841,481 8,157,501 1,390,906,373
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
1 FRASER COAST REGIONAL COUNCIL
Statement of Financial Position
As at 30 June 2010 Consolidated Council 2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $
Current Assets Cash assets and cash equivalents 15 105,010,274 88,968,493 102,138,161 84,264,956 Trade and other receivables 16 (a) 22,383,487 25,245,795 23,303,881 20,723,049 Inventories 17 893,863 981,018 281,420 452,127 128,287,624 115,195,306 125,723,462 105,440,132 Non-current Assets Trade and other receivables 16 (b) - 1,564,000 15,627,374 1,564,000 Investments 18 1,991,000 - 297,243,349 141,589,153 Land held for development and sale 19 1,755,979 3,635,221 1,755,979 3,635,221 Property, plant and equipment 20 (a) 1,733,247,086 1,714,100,791 1,075,761,189 1,231,080,977 Intangible assets 21 1,001,643 1,392,139 641,933 1,022,415 1,737,995,708 1,720,692,151 1,391,029,824 1,378,891,766 TOTAL ASSETS 1,866,283,332 1,835,887,457 1,516,753,286 1,484,331,898
Current Liabilities Trade and other payables 22 16,078,973 25,686,674 26,505,926 22,766,349 Provisions 23 6,254,373 5,661,444 4,499,633 4,453,653 Borrowings 24 9,483,157 8,577,991 3,830,673 5,259,520 Other liabilities 25 52,372 249,397 5,510 117,273 31,868,875 40,175,506 34,841,742 32,596,795 Non-current Liabilities Provisions 23 699,894 763,354 342,258 510,620 Borrowings 24 154,006,749 128,832,435 82,505,412 60,318,110 154,706,643 129,595,789 82,847,670 60,828,730 TOTAL LIABILITIES 186,575,518 169,771,295 117,689,412 93,425,525
NET COMMUNITY ASSETS 1,679,707,814 1,666,116,162 1,399,063,874 1,390,906,373
Community Equity Council Capital: Investment in capital assets 26 1,359,548,792 1,263,567,220 1,157,188,943 1,156,958,019 Asset revaluation surplus 27 224,708,687 233,442,456 150,282,779 160,259,304 Retained surplus 28 12,345,934 102,271,928 8,487,751 6,854,492 Other reserves 29 83,104,401 66,834,558 83,104,401 66,834,558
TOTAL COMMUNITY EQUITY 1,679,707,814 1,666,116,162 1,399,063,874 1,390,906,373
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
2 FRASER COAST REGIONAL COUNCIL
Statement of Changes in Equity For the year ended 30 June 2010 Retained Asset Council surplus Other revaluation Capital Total (deficit) reserves surplus Consolidated Note 28 Note 29 Note 27 Note 26 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $$$$$$$$
Balance at beginning of period 102,271,928 - 66,834,558 233,442,456 - 1,263,567,220 1,666,116,162 - Prior period adjustment - - Net income(loss) recognised direct to equity: Revaluations: Property, plant & equipment 1,242,757 231,700,540 1,242,757 231,700,540 Prior period adjustment Surplus for the period 12,015,684 1,425,602,016 - 12,015,684 1,425,602,016 Prior period adjustment - FCRC - note 39(c) - 4,108,581 201,869 - 4,310,450 Prior period adjustment - WBWC - note 39(c) - 2,252,278 - - 2,252,278 Prior period adjustment - WBWC - note 39(c) - 436,150 1,540,047 - 1,976,197 Total recognised income and expense 12,015,684 1,432,399,025 - - 1,242,757 233,442,456 - - 13,258,441 1,665,841,481 Transfers of capital amounts arising from council activities: Capital value contained in the gain from restructure of local government - (1,406,928,152) - - - - - 1,406,928,152 - - Amalgamation Adjustment - 1,744,467 - (1,469,785) - 274,682 Transfers to(from) capital (49,173,961) 179,100,581 (33,258,945) (37,209,435) 82,766,118 (141,891,147) 333,212 (1) Transfers to(from) reserves Transfers to constrained works reserve (8,992,103) (25,126,131) 8,992,103 25,126,131 - - Transfers to other reserves (43,775,614) (78,917,862) 43,775,614 78,917,862 - - Equity Investment in Wide Bay Water (3,238,929) (9,976,525) 13,215,454 - - Total transfers (101,941,678) (1,330,127,097) 16,269,843 66,834,558 (9,976,525) - 95,981,572 1,263,567,220 333,212 274,681
Balance at end of period 12,345,934 102,271,928 83,104,401 66,834,558 224,708,687 233,442,456 1,359,548,792 1,263,567,220 1,679,707,814 1,666,116,162
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
3 FRASER COAST REGIONAL COUNCIL
Statement of Changes in Equity For the year ended 30 June 2010 Retained Asset Council surplus Other revaluation Capital Total (deficit) reserves surplus Council Note 28 Note 29 Note 27 Note 26 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $$$$$$$$
Balance at beginning of period 6,854,492 - 66,834,558 160,259,304 1,156,958,019 1,390,906,373 - Net income(loss) recognised direct to equity: Revaluations: Property, plant & equipment - 160,057,435 160,057,435 Prior period adjustment - - Surplus for the period 8,157,501 1,226,538,488 - 8,157,501 1,226,538,488 Prior period adjustment - FCRC - note 39(a) - 4,108,581 201,869 - 4,310,450 Total recognised income and expense 8,157,501 1,230,647,069 - 160,259,304 8,157,501 1,390,906,373 Transfers of capital amounts arising from council activities: Capital value contained in the gain from restructure of local government (1,225,387,779) 1,225,387,779 - Transfers to(from) capital 46,243,475 105,639,195 (33,258,945) (37,209,435) (12,984,530) (68,429,760) - - Transfers to(from) reserves Transfers to constrained works reserve (8,992,103) (25,126,131) 8,992,103 25,126,131 - - Transfers to other reserves (43,775,614) (78,917,862) 43,775,614 78,917,862 - - Transfer Fraser Coast Water capital (3,238,929) (9,976,525) 13,215,454 - Total transfers (6,524,242) (1,223,792,577) 16,269,843 66,834,558 (9,976,525) - 230,924 1,156,958,019 - - Balance at end of period 8,487,751 6,854,492 83,104,401 66,834,558 150,282,779 160,259,304 1,157,188,943 1,156,958,019 1,399,063,874 1,390,906,373
The above statement should be read in conjunction with the accompanying notes and summary of significant accounting policies.
4 FRASER COAST REGIONAL COUNCIL
Statement of Cash Flows For the year ended 30 June 2010 Consolidated Council 2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Cash flows from operating activities : General rates and utility charges 103,280,337 112,419,957 61,249,019 81,841,299 Rental and levies, fees and charges 12,668,449 18,253,278 12,668,449 16,967,495 Grants, subsidies and contributions 7,761,111 11,897,468 7,272,945 11,424,106 Dividend received - - 468,206 2,342,834 Income tax equivalent received - - 2,934,389 2,588,541 Interest received 3,638,999 5,757,032 3,945,238 5,116,012 Other income 13,136,273 12,520,629 4,305,019 10,241,442 GST received 2,697,824 11,268,549 2,697,824 7,103,905 Payments to suppliers (45,598,742) (50,141,733) (28,967,994) (38,045,631) Payment to employees (52,409,583) (58,514,604) (35,271,029) (45,300,490) Interest expense (7,283,451) (8,419,304) (2,668,349) (3,676,637) GST paid (2,193,881) (12,893,936) (2,193,881) (8,389,149) Net cash inflow (outflow) from operating activities 35 35,697,336 42,147,336 26,439,836 42,213,727
Cash flows from investing activities: State Government subsidies & grants 14,253,092 30,059,827 6,598,217 10,833,449 Capital contributions 2,558,862 15,326,926 2,558,862 7,572,032 Payments for property, plant and equipment (67,349,140) (88,848,613) (41,564,984) (41,380,200) Payments for intangible assets (141,990) (570,776) (141,990) (570,776) Proceeds from sale of investment property 1,576,960 726,045 1,576,960 726,045 Proceeds from sale of property plant and equipment 6 1,803,179 1,009,489 1,703,634 891,263 Net movement in loans and advances 1,564,000 - 1,564,000 - Net cash inflow (outflow) from investing activities (45,735,037) (42,297,102) (27,705,301) (21,928,187)
Proceeds from borrowings 24 33,354,000 48,920,000 24,754,000 23,281,000 Principal repayment of loan received - - 1,109,082 - Repayment of borrowings 24 (7,274,519) (8,239,707) (3,995,545) (4,710,157) Net cash inflow (outflow) from financing activities 26,079,481 40,680,293 21,867,537 18,570,843
Net increase (decrease) in cash held 16,041,780 40,530,527 20,602,072 38,856,383 Cash transferred on the restructure of local government 7 - 48,437,966 - 45,408,573 Cash transferred for Fraser Coast Water - - (2,728,867) - Cash at beginning of reporting period 88,968,493 - 84,264,956 - Cash at end of reporting period 15 105,010,274 88,968,493 102,138,161 84,264,956
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
5 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies
1. 1 Basis of Preparation These general purpose financial statements for the period 1 July 2009 to 30 June 2010 have been prepared in accordance with Australian Accounting Standards and comply with the requirements of the Local Government Act 1993 and the Local Government Finance Standard 2005.
Pursuant to Part 1B of the Local Government Act 1993 and in accordance with the Local Government Reform Implementation Regulation 2008, the Fraser Coast Regional Council was formed on 15 March 2008 as a consequence of the amalgamation of Hervey Bay City, Maryborough City, Woocoo Shire and a portion of area of the Tiaro Shire Councils' (former councils).
The Local Government Reform Implementation Regulation 2008 and the Local Government Reform Implementation (Transferring Areas) Amendment Regulation (No.1) 2008 transferred the assets and liabilities of the former councils to the Fraser Coast Regional Council as at changeover date.
Pursuant to Section 159YQ of the Local Government Act 1993 and Sections 26 and 35 of the Local Government Reform Implementation Regulation 2008, financial statements for 2008-09 were prepared for a 15 month period from the 15 March 2008 to 30 June 2009. The 2009-10 financial year is for a 12 month period from 1 July 2009 to 30 June 2010. Assets and liabilities of the former councils have been recognised by Fraser Coast Regional Council on 15 March 2008 at the previous book values of the transferor local governments. This is shown as income in the comparative figures of the Statement of Comprehensive Income and details are disclosed in note 7.
Fraser Coast Regional Council adopted consistent accounting policies from its commencement date of 15 March 2008. In some cases, this resulted in adjustments to the measurement of assets and liabilities transferred from the former councils as at 15 March 2008. These accounting policy alignment adjustments are shown in the comparative figures in note 7.
This financial report has been prepared under the historical cost convention except for the revaluation of certain non-current assets.
1. 2 Statement of Compliance These general purpose financial statements comply with all accounting standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to Council's operations and effective for the current reporting period. Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied, these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation and impairment gains and losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue.
1. 3 Basis of consolidation The consolidated financial statements incorporate the assets and liabilities of all entities controlled (excluding Brolga Theatre Inc and Widelinx Pty Ltd which are included in note 36 to the accounts) by the Fraser Coast Regional Council (Council) as at 30 June 2010 and the results of all controlled entities for the year then ended. The Council and its controlled entities together form the economic entity which is referred to in this financial report as the consolidated entity.
In the process of reporting the Council as a single economic entity, all transactions with entities controlled by the Council have been eliminated.
1. 4 Adoption of New and Revised Accounting Standards Presentation of Financial Statements (AASB 101 Presentation of Financial Statements, AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101, AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101).
The revised Standard and Amending Pronouncements do not affect any of the amounts presented in the financial statements, but have changed the disclosures made in the financial statements. The change in terminology in the revised AASB 101 has resulted in the Balance Sheet being renamed the Statement of Financial Position, and the Cash Flow Statement being renamed the Statement of Cash Flows. The former Income Statement has been replaced with a single Statement of Comprehensive Income. In line with the new concept of "comprehensive income" the bottom of the Statement contains other Comprehensive Income that was previously included in the Statement of Changes in Equity
6 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 4 Adoption of New and Revised Accounting Standards (continued)
Investment Property (AASB 140 Investment Property) Investment property under construction or being developed for future use is now classified as investment property rather than being classified as work in progress or property, plant and equipment.
At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.
AASB 124 Related Party Disclosures (December 2009) - effective on or after 1 January 2011
2009-8 Group Cash-settled Share-based Payment Transactions (July 2009) - effective on or after 1 January 2010
2009-9 Additional Exemptions for First-time Adopters (September 2009) - effective on or after 1 January 2010
2009-10 Classification of Rights Issues (October 2009) - effective on or after 1 January 2013
2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December 2009) - effective on or after 1 January 2013
2009-12 Amendments to Australian Accounting Standards in relation to AASB 8 Operating Segments (December 2009) - effective on or after 1 January 2011
2009-13 Amendments to AAS arising from Interpretation 19 (December 2009) - effective on or after 1 July 2010
2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement (Interpretation 14) (December 2009) - effective on or after 1 January 2011
Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments (December 2009) - effective on or after 1 July 2010
Management have yet to assess the impact that AASB 9 Financial Instruments and 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 is likely to have on the financial statements of Council as it is anticipated that further amendments will occur. Council does not expect to implement the amendments prior to the adoption date of 1 January 2013.
The 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project includes amendments to AASB 117 Leases which revise the criteria for classification of leases involving land and buildings. Council will be required to reassess the classification of the land components of all unexpired leases that Council has entered into as at 1 July 2010, on the basis of the information existing at the inception of the relevant lease. If any such leases are reclassified to become finance leases, retrospective accounting adjustments will be processed as far as practicable.
Initial application of the other Standards/Interpretations in issue but not yet effective is not expected to have any material impact on Council's financial statements.
1. 5 Critical Accounting Estimates The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Council's accounting policies. Estimates and judgements are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Council and that are believed to be reasonable under the circumstances.
The estimates and assumptions that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year are referred to in the appropriate notes to the financial statements.
1. 6 Currency The Council uses the Australian Dollar as its functional currency and its presentation currency.
7 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 7 Constitution The Fraser Coast Regional Council is constituted under the Queensland Local Government Act 1993 and is domiciled in Australia.
1. 8 Date of Authorisation The financial report was authorised for issue on the date it was submitted to the Auditors for final signature. This is the date the management certificate is signed.
The Local Government has the power to amend the Financial Report after it is authorised for issue until the adoption of the report by the Local Government as part of the Annual Report.
1. 9 Critical Accounting Judgements and Key Sources of Estimation Uncertainty In the application of Council's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and ongoing assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.
Judgements, estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes: Valuation of property, plant and equipment - note 1.18 and note 20 (c) Impairment of property, plant and equipment - note 1.21 and note 20 (c) Provisions - note 23 Contingencies - note 32
1. 10 Rates, Levies, Grants and Other Revenue Rates, Grants and Other Revenue are recognised as revenue on receipt of funds or earlier unconditional entitlement to the funds.
1. 10 (a) Rates Where rate monies are received prior to the commencement of the rating period, the amount is recognised as revenue in the period in which they are received.
1. 10 (b) Grants, Subsidies and Contributions Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in which Council obtains control over them. An equivalent amount is placed in a reserve until the funds are expended. Unspent non-reciprocal capital grants are placed in the Unspent capital grants reserve. Council endeavours to spend all recurrent grants in the year received, any funds not expended are placed in the Unspent Recurrent Grants Reserve. Where grants are received that are reciprocal in nature, revenue is recognised over the term of the funding arrangements. Council does not currently have any reciprocal grants.
1. 10 (c) Non-Cash Contributions Non-cash contributions with a value in excess of the recognition thresholds, are recognised as revenue and as non- current assets. Non-cash contributions below the thresholds are recorded as revenue and expenses.
1. 10 (d) Rental Income Rental revenue from investment and other property is recognised as income on a periodic straight line basis over the lease term.
1. 10 (e) Interest and Dividends Interest received from term deposits is accrued over the term of the investment. Dividends are recognised once they are formally declared by the directors of the controlled entity.
1. 10 (f) Other Revenue Other revenue is recognised as a receivable when it is probable that it will be received and the amount is known, otherwise the amount is recognised upon receipt.
8 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 11 Financial Assets and Financial Liabilities Council recognises a financial asset or a financial liability in its Statement of Financial Position when, and only when, Council becomes a party to the contractual provisions of the instrument.
Fraser Coast Regional Council has categorised and measured the financial assets and financial liabilities held at reporting date as follows:
Financial assets Cash and cash equivalents (note 1.12) Receivables - measured at amortised cost (note 1.13)
Financial liabilities Payables - measured at amortised cost (note 1.23) Borrowings - measured at amortised cost (note 1.25)
Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied.
The fair value of financial instruments is determined as follows: The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately.
The fair value of borrowings, as disclosed in note 24 to the financial statements, is determined by reference to published price quotations in an active market and/or by reference to pricing models and valuation techniques. It reflects the value of the debt if the Council repaid it in full at reporting date. As it is the intention of the Council to hold its borrowings for their full term, no adjustment provision is made in these financial statements.
The fair value of trade receivables approximates the amortised cost less any impairment. The fair value of payables approximates the amortised cost.
Fraser Coast Regional Council does not recognise financial assets or financial liabilities at fair value in the Statement of Financial Position.
All other disclosures relating to the measurement and financial risk management of financial instruments are included in note 37.
1. 12 Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the year end, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
1. 13 Receivables Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date.
The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance costs. The amount of the impairment is the difference between the asset’s carrying amount and the present value of the estimated cash flows discounted at the effective interest rate.
All known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously written off in the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is recovered in a subsequent period it is recognised as revenue.
Because Council has the power to sell an owner's property to recover outstanding rate debts, Council does not impair any rate receivables.
9 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 14 Inventories Stores and raw materials held for resale are valued at the lower of cost and net realisable value and include, where applicable, direct material, direct labour and an appropriate portion of variable and fixed overheads. Costs are assigned on the basis of weighted average cost.
Inventories held for distribution (internal consumption) are: • goods to be supplied at no, or nominal, charge, and; • goods to be used for the provision of services at no, or nominal, charge.
Inventory for distribution is valued at cost, adjusted when applicable for any loss of service potential.
1. 15 Land Held for Resale Land acquired with the intention of reselling it (with or without further development) is classified as inventory. As inventory this land is valued at the lower of cost or net realisable value. Inventory land is treated as a current asset except where it is anticipated that a material portion of land value will not be sold within 12 months. Land held beyond 12 months is reported as non-current inventory.
Profit arising upon sale of land is recognised in the Statement of Comprehensive Income on the signing of a valid unconditional contract of sale.
1. 16 Investments Term deposits in excess of three months are reported as investments, with deposits of less than three months being reported as cash equivalents.
The controlled entities Wide Bay Water Corporation and Widelinx Pty Ltd are accounted for at cost in the Council's separate financial statements. Fraser Coast Regional Council holds 100% of the shares in the controlled entities. The shares are measured at cost as fair value cannot be reliably measured.
1. 17 Investment Property Investment property is property held for the primary purpose of earning rentals and/or capital appreciation. This includes land held by Council for a currently undetermined future use.
Investment property is measured using the fair value model. This means all investment property is initially recognised at cost (including transaction costs) and then subsequently revalued annually at the reporting date. Where investment property is acquired at no or nominal cost it is recognised at fair value.
Pursuant to revised accounting standard AASB 140 Investment Property, from 1 July 2009 property that is being constructed or developed for future use as investment property is now classified as investment property rather than as property, plant and equipment. Investment property under construction is measured at fair value, unless fair value cannot be reliably determined for an individual property (in which case the property concerned is measured at cost until fair value can be reliably determined).
Gains or losses arising from changes in the fair value of investment property are included in the Statement of Comprehensive Income for the period in which they arise. Investment property is not depreciated and is not tested for impairment.
10 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 18 Property, Plant and Equipment Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss. Items of plant and equipment with a total value of less than $1,000, and infrastructure assets and buildings with a total value of less than $5,000 are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised.
The classes of property plant and equipment recognised by the council are reported in note 20 (a).
(a) Acquisition of Assets Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design fees and all other establishment costs.
Property, plant and equipment received in the form of physical contributions, are recognised as assets and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
Assets transferred from the former councils, as a result of a Government restructure, were initially recognised at the amount at which they were recognised by the former councils as at the changeover day as disclosed in Note 1.1 and Note 7. Those assets are reflected as additions from abolished councils at net carrying value in Note 20 (a).
(b) Capital and Operating Expenditure Wage and materials expenditure incurred for the acquisition or construction of assets are treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised.
(c) Valuation Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB116 Property, Plant and Equipment and the Local Government Finance Standard 2005. Other plant and equipment is measured at cost.
Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by comprehensively revaluing these assets at least once every five years, with interim valuations using a suitable index being otherwise performed on an annual basis where there has been a material variation in the index.
Any revaluation increment arising on the revaluation of an asset is credited to the appropriate class of the asset revaluation surplus, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense to the extent it exceeds the balance, if any, in the revaluation surplus to that asset class.
On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.
Separately identified components of assets are measured on the same basis as the assets to which they relate.
Details of valuers and methods of valuations are disclosed in Note 20 (c).
11 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 18 Property, Plant and Equipment (continued)
(d) Depreciation Land is not depreciated as it has an unlimited useful life. Depreciation on land improvements and other property, plant and equipment is based on the pattern in which the asset's future economic benefits are expected to be consumed. This may vary from asset to asset, but where appropriate, is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the Council.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and commissioned ready for use.
Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Council. Major spares purchased specifically for particular assets that are above the asset recognition threshold are capitalised and depreciated on the same basis as the asset to which they relate.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter.
The estimated useful lives of property, plant and equipment are reviewed annually. Details of the range of useful lives for each class of asset are shown in note 20 (a).
(e) Unfunded Depreciation The Council has elected not to fund depreciation expenses for assets that will not be replaced or where external funding sources other than loans will be obtained to fund their replacement. Depreciation is funded to the extent necessary to meet council defined future service delivery levels to the community unless insufficient revenue sources are available to cover this depreciation amount. In this case the unfunded depreciation reflects a more serious decline to the Council's capital value and sustained shortfalls may affect the Council's ability to maintain this level of service into the future.
(f) Land Under Roads Land under roads acquired before 30 June 2008 is recognised as a non-current asset where the Council holds title or a financial lease over the asset. The Fraser Coast Regional Council currently does not have any such land holdings. Land under the road network within the Council area that has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994 is not controlled by Council but is controlled by the State pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements.
1. 19 Intangible Assets Only intangible assets which have a cost exceeding $10,000 are recognised as intangible assets.
Expenditure on internally generated intangible assets is recognised from the date of the approval by the Council of a capital expenditure authorisation for the acquisition or development of the asset. This approval is taken to indicate that the project meets the criteria for recognition in AASB138.57
Expenditure on internally generated assets, up to the decision to generate the asset in a particular form, is research expenditure and is not capitalised.
It has been determined that there is not an active market for any of the Council's intangible assets. Therefore, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses.
12 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 20 Capital Work in Progress The cost of property, plant and equipment being constructed by the Council includes the cost of purchased services, materials, direct labour and an appropriate proportion of labour overheads.
Investment property under construction is classified as investment property. Refer to note 1.17 for further information.
The Council operates a nursery to produce bedding plants and trees for its own use. In view of the immaterial nature of this operation the accounting procedures relating to biological assets has not been applied. The costs incurred in this operation are included in Council's general operations as they are incurred.
1. 21 Impairment of Non Current Assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation surplus increase.
1. 22 Leases Leases of plant and equipment under which the Council as lessee assumes substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are classified as finance leases. Other leases, where substantially all the risks and benefits remain with the lessor, are classified as operating leases.
(a) Finance Leases Where Council enters into a finance lease, Council recognises an asset equal to the lower of fair value of the leased property and the present value of the minimum lease payments. The lease liability is recognised at the same amount. Lease liabilities are reduced by repayments of principal. The interest components of the lease payments are charged as finance costs. The asset is accounted for on the same basis as other assets of the same class. Contingent rentals are written off as an expense in the accounting period in which they are incurred.
(b) Operating Leases Payments made under operating leases are expensed in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.
1. 23 Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are generally settled on 30 day terms.
1. 24 Liabilities - Employee Benefits Liabilities are recognised for employee benefits such as wages and salaries, annual leave and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current.
(a) Salaries and Wages A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. This liability represents an accrued expense and is included in note 22 as a payable.
13 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 24 Liabilities - Employee Benefits (continued)
(b) Annual Leave A liability for annual leave is recognised. The current portion (based on the expected payment date) is calculated on current wage and salary levels and includes related employee on-costs. The non current portion is calculated on projected future wage and salary levels and related employee on-costs, discounted to present values. This liability represents an accrued expense and is reported in note 22 as a payable.
(c) Sick Leave Sick leave taken in the future will be met by future entitlements and hence no recognition of accrued sick leave entitlements have been made in these financial statements. No entitlement vests with the employee on termination.
(d) Superannuation The superannuation expense for the reporting period is the amount of the contribution the local government makes to the superannuation plan which provides benefits to its employees. Details of those arrangements are set out in note 33.
(e) Long Service Leave A liability for long service leave is measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the employee remaining in the Council's employment or other associated employment which would result in the Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value. The interest rates attached to Commonwealth Government guaranteed securities at the reporting date are used to discount the estimated future cash outflows to their present value.
This liability represents an accrued expense and is reported in note 23 as a provision.
1. 25 Borrowings Loans payable are measured at book value at date of reporting.
Borrowing costs, which includes interest and administration fees, are expensed in the period in which they arise. Costs that are not settled in the period in which they arise are included in payables.
All borrowing costs are expensed in the period in which they are incurred. No borrowing costs are capitalised on qualifying assets.
Borrowings are classified as current liabilities except for the principle amount that is due and payable, under the contractual terms of the loan agreement, 12 months after the end of the reporting period. This amount is classified as a non current amount. Further details are provided in note 24.
1. 26 Council Capital Value The council's capital value represents the net carrying value of the capital assets less the amount of capital debt at the reporting date and includes the initial value of operating assets and liabilities recognised at its inception.
The maintenance of the Councils capital capacity is fundamental to its long term sustainability to continue to deliver essential services to the community, it has therefore been separately identified and the change in value is reported in the Statement of Changes in Equity.
14 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 27 Asset Revaluation Surplus The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in the asset revaluation surplus.
Increases and decreases on revaluation are offset within a class of assets.
Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense.
When an asset is disposed of the amount in the reserve in respect of that asset is retained in the reserve. The asset revaluation surplus does not therefore reflect a surplus that can be related to currently held assets and, as council infrastructure assets are not valued on a market value basis, this surplus does reflect a realisable amount.
1. 28 Reserves Held for Future Capital Expenditure These are cash backed reserves and represent funds that are accumulated within the Council to meet anticipated future capital assets needs. In each case the amount relates to a perceived future requirement which is not currently a liability.
(a) Grants, Subsidies and Contributions Reserve This reserve is credited with all grants, subsidies and contributions of monetary revenue received during the reported period and constrained for the purpose of funding specific capital expenditure. As the expenditure is incurred on specified capital assets the equivalent funds are transferred from the reserve to the capital account. The closing balance reported at the period end represents funds not yet expended and must be retained until expended in the manner specified by the contributor.
(b) Grants, Subsidies and Contributions Reimbursed Reserve This reserve is credited with all grants, subsidies and contributions of monetary revenue received during the reported period which the Council has identified as being a reimbursement of capital funds expended in a prior period.
(c) Plant and Fleet Reserve This reserve is created to accumulate funds for the future replacement of Council's plant and fleet.
(d) Aged Housing Reserve This reserve is created to contribute to future establishment of aged and disabled accommodation and to contribute to the future funding of subsidised Community Housing.
(e) Wide Bay Water- Distribution Reserve This reserve is created to accumulate excess funds from water and wastewater distributions for utilisation on the payment of loans or future capital works.
(f) Environmental Levy Reserve This reserve is created to accumulate funds raised through the Environmental Levy for the future acquisition of natural areas.
(g) Commercial and Business Activity Reserve This reserve is created to hold funds intended to be invested in business enterprise and retained profits of commercial business undertakings by Council.
(h) Land and Buildings Reserve
This reserve is created to hold proceeds from the sale of surplus Council land and building assets to be utilised for future purchases of land and buildings.
(i) Brolga Theatre Reserve This reserve is created to contribute to future major refurbishment of the Brolga Theatre complex.
(j) Contingency Reserve This reserve is created to accumulate funds for future capital expenditure and emergent circumstances.
15 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 28 Reserves Held for Future Capital Expenditure (continued)
(k) Unspent Loans Reserve This reserve is created to hold funds for loans raised, but not yet expended, being available for future spending.
(l) Other Reserves These reserve hold funds for the remediation of damage arising from a natural disaster, capital carry forward expenditure, for the expansion or creation of waste facilities, the future expansion or creation of water facilities and works and the future funding of regional animal care facilities.
1. 29 Reserves Held for Funding Future Recurrent Expenditure: These are cash backed reserves and represent funds that are accumulated within the Council to meet anticipated future recurrent or operating expenditure needs. In each case the amount relates to a perceived future requirement which is not currently a liability.
(a) Constrained Recurrent Grants Reserve This reserve is created to carry forward unspent grants for funding of future specific recurrent expenditure.
(b) Property Management Reserve This reserve is created to provide funds for the maintenance and management of Council property.
(c) Contingency Reserve This reserve is created to accumulate funds for future recurrent expenditure and emergent circumstances.
(d) Unspent Operational Reserve This reserve is created to fund specific operational carry forward expenditure.
(e) IT Reserve This reserve is created to provide funds for the provision of future information technology upgrades and replacements.
(f) Development Assessment Reserve This reserve is created to hold development assessment fees subject to superseded planning scheme applications to fund the assessment of the applications and/or for the potential refunding of fees.
1. 30 Retained Surplus The retained surplus represents that part of the Council's equity, that is cash backed and not identified to meet specific future funding needs at the reporting date. The balance of this account represents the cumulative unrestricted surplus amount available to Council that may be used as a general funding source to be offset against expenditure in the following year or, if a deficit, the additional amount of revenue required to be raised to achieve a total overall balanced funding position. In accordance with the Queensland Local Government Finance Standards all Councils must demonstrate the ability to recover any retained deficits in future years through the budget process.
1. 31 National Competition Policy The Council has reviewed its activities and has identified 7 activities that are business activities. Details of these activities can be found in note 38.
16 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
1 Summary of Significant Accounting Policies (continued)
1. 32 Rounding and Comparatives Amounts included in the financial statements have been rounded to the nearest $1 or, where that amount is $0.50 or less, to zero.
The Fraser Coast Regional Council was formed on 15 March 2008 as a consequence of the amalgamation of Hervey Bay City, Maryborough City, Woocoo Shire and a portion of area of the Tiaro Shire Councils. Pursuant to Section 159YQ of the Local Government Act 1993 and Sections 26 and 35 of the Local Government Reform Implementation Regulation 2008, financial statements for 2008-09 were prepared for the period 15 March 2008 to 30 June 2009. Therefore comparative figures presented in the financial statements for the year ending June 2009 are for a 15 and a half month period. The assets and liabilities of the former Hervey Bay City, Maryborough City, Woocoo Shire and a portion of area of the Tiaro Shire Councils were transferred to the Fraser Coast Regional Council on the changeover date. Therefore asset and liability balances disclosed in the notes as being at the beginning of the comparative financial year, comprise asset and liabilities that were transferred from Hervey Bay City, Maryborough City, Woocoo Shire and a portion of area of the Tiaro Shire Councils due to the restructure.
Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.
1. 33 Financial Risk Management The Council minimises its exposure to financial risk in the following ways:
Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia and are for a period of less than one year.
The Council does not invest in derivatives or other high risk investments.
When the Council borrows, it borrows from the Queensland Treasury Corporation unless another financial institution can offer a more beneficial rate, taking into account any risk. Borrowing by the Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982. Details of financial instruments and the associated risks are shown at note 37.
1. 34 Trust Funds Held for Outside Parties Funds held in the trust account on behalf of outside parties include those funds from the sale of land for arrears in rates recovery, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages) paid into the trust account by the Council. The Council performs only a custodian role in respect of these monies and because the monies cannot be used for Council purposes, they are not considered revenue nor brought to account in the financial statements.
For details see note 34.
1. 35 Judgements and Assumptions The council has made no judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
1. 36 Taxation Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax and Goods and Services Tax (GST). The net amount of GST recoverable from/payable to the ATO is shown as an asset or liability respectively.
The controlled entity of the Council pays an income tax equivalent to the Council in accordance with the requirements of the Local Government Act 1993.
Where an activity of the controlled entity of the Council is subject to the National Tax Equivalents Regime, the income tax expense is calculated on the operating surplus adjusted for permanent differences between taxable and accounting income. These transactions are eliminated upon consolidation.
The Council pays payroll tax to the Queensland Government on certain activities.
17 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
2 Analysis of results by function
(a) Revenue, expenses and assets have been attributed to the following functions : Functions Income Total Total Net Assets Grants Other income expenses result for period 2010 2010 2010 2010 2010 2010 $$$$ $ $
Government and Administration 6,162,633 65,332,016 71,494,649 22,852,076 48,642,573 445,274,871 Economic Development - 1,449 1,449 270,752 (269,303) 3,631,469 Roads Infrastructure and Operations 5,869,048 8,443,784 14,312,832 39,286,523 (24,973,691) 601,236,561 Stormwater Drainage - 3,980,792 3,980,792 4,667,859 (687,067) 199,853,305 Commercial Activities 67,174 4,196,796 4,263,970 3,071,553 1,192,417 182,298,357 Community and Recreation 1,932,432 1,383,192 3,315,624 16,865,075 (13,549,451) 73,832,303 Development Services - 3,743,993 3,743,993 6,086,510 (2,342,517) 4,055 Environment and Health 9,000 2,313,103 2,322,103 4,385,029 (2,062,926) 1,289,237 Solid Waste Management - 13,458,359 13,458,359 11,250,893 2,207,466 9,333,128 Fraser Coast Water ------Total Council 14,040,287 102,853,484 116,893,771 108,736,270 8,157,501 1,516,753,286 Controlled entity net of eliminations 6,649,478 53,085,378 59,734,856 55,876,673 3,858,183 349,530,046 Total 20,689,765 155,938,862 176,628,627 164,612,943 12,015,684 1,866,283,332
Prior Year Functions Income Total Total Net Assets Grants Other income expenses result for period 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 2009 2009 2009 2009 2009 2009 $$$$ $ $
Government and Administration 9,693,346 64,649,017 74,342,363 20,460,888 53,881,475 390,663,380 Economic Development - 14,913 14,913 591,108 (576,195) 3,631,469 Roads Infrastructure and Operations 8,063,233 13,160,853 21,224,086 47,095,255 (25,871,169) 621,075,668 Stormwater Drainage 688,003 4,624,800 5,312,803 5,223,518 89,285 191,274,642 Commercial Activities 897,264 6,063,425 6,960,689 5,193,286 1,767,403 26,194,414 Community and Recreation 3,421,282 1,749,276 5,170,558 23,381,546 (18,210,988) 73,156,312 Development Services - 7,898,348 7,898,348 6,428,948 1,469,400 4,055 Environment and Health 75,138 2,415,911 2,491,049 5,677,809 (3,186,760) 2,541,988 Solid Waste Management 30,000 15,285,616 15,315,616 14,901,699 413,917 8,066,686 Fraser Coast Water - 13,211,670 13,211,670 17,728,748 (4,517,078) 167,723,284 Total Council 22,868,266 129,073,829 151,942,095 146,682,805 5,259,290 1,484,331,898 Controlled entity net of eliminations 19,235,941 48,981,973 68,217,914 48,006,331 20,211,583 351,555,559 Total 42,104,207 178,055,802 220,160,009 194,689,136 25,470,873 1,835,887,457
18 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
2 (b) Components of council functions The activities relating to the Council's components reported on in Note 2 (a) are as follows :
Government and Administration The provision of information and advice to the Council members, Public Relations, Corporate Development and Strategic Planning covers the areas of Finance and Rates, Human Resources, Administration, Asset Management, Information Systems, Freedom of Information, Legal Services and Land development.
Economic Development To increase business activity and employment by promoting the city and the regions' opportunities and attributes to attract investment.
Roads Infrastructure and Operations The construction and maintenance of roads, footpaths, parking facilities and traffic signs. The maintenance of bus shelters and the provision of street cleaning services.
Stormwater Drainage The maintenance and provision of stormwater drainage.
Commercial Activities Covering the areas of Airport, Caravan Park Management, Commercial Waste and RTO.
Community and Recreation Covering a variety of community related areas included Community Development, Community Housing, Parks and Recreation Facilities and Management, Tourism, Museums, Art Gallery, Libraries and Coastal Management.
Development Services Development control processes including Town Planning, Building and Plumbing Services.
Environment and Health Areas covered include Public Heath, Cemeteries, Pest Control, Swimming Pools and Environment Protection.
Solid Waste Management The provision of rubbish collection, litter control, recycling and operation of refuse sites.
Fraser Coast Water To provide, maintain and continually improve the basic infrastructure needs of the water and sewerage system.
19 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 15.5 months- 2010 2009 2010 2009 Actual Actual Actual Actual Note $$$$ 3 Revenue analysis (a) Rates and levies 1.10(a) General rates 55,858,954 53,625,793 55,858,954 53,625,793 Rural Fire Levy 438,617 394,047 438,617 394,047 Environmental Levy 478,412 476,622 478,412 476,622 Water 15,611,188 14,542,225 - 5,148,721 Water consumption, rental and sundries 11,022,924 9,917,738 - 2,467,983 Sewerage 24,728,278 21,864,154 - 5,850,473 Sewerage trade waste 283,450 323,249 - 132,836 Waste charges 13,027,606 13,565,656 13,027,606 13,565,656 Rates and utility charge revenue 121,449,429 114,709,484 69,803,589 81,662,131 Less: Discounts (8,913,297) (8,567,653) (5,029,194) (6,098,958) Less: Pensioner remissions (1,851,234) (1,606,892) (1,851,234) (1,606,892) Net rates and utility charges 110,684,898 104,534,939 62,923,161 73,956,281
(b) Fees and charges Caravan park fees 2,351,283 2,860,015 2,351,283 2,860,015 Passenger head taxes 1,243,736 1,944,559 1,243,736 1,944,559 Refuse tip fees 2,798,949 2,329,161 2,798,949 2,329,161 Planning fees 1,487,607 4,566,010 1,487,607 4,566,010 Other fees and charges 4,984,106 6,097,921 4,570,333 5,466,350 12,865,681 17,797,666 12,451,908 17,166,095
(c) Rental and levies Community housing rental income 205,265 137,911 205,265 137,911 Other property rental income 204,781 423,175 190,221 408,215 410,046 561,086 395,486 546,126
(d) Interest received Investments 3,258,951 4,930,096 3,082,838 4,542,357 Interest on Loan to Wide Bay Water - - 833,362 - Other sources 48,311 164,652 48,311 164,652 Over due rates and utility charges 1,238,220 1,075,242 782,297 821,961 4,545,482 6,169,990 4,746,808 5,528,970
(e) Sales of contract and recoverable works Revenue 7,401,832 10,073,166 1,937,721 3,398,324 7,401,832 10,073,166 1,937,721 3,398,324
The amount recognised as revenue from contract works during the period is the amount receivable in respect of invoices issued during the period. There are no contracts in progress at the period end. The contract work carried out is not subject to retentions.
(f) Other recurrent income Income tax equivalent received - - 2,692,035 2,588,541 Dividend received - - 2,886,271 3,994,104 Other Income 3,574,322 3,883,398 2,921,096 4,379,092 3,574,322 3,883,398 8,499,402 10,961,737
4 Grants, subsidies, contributions and donations 1.10(b) (i) Recurrent - grants, subsidies, other contributions and donations are analysed as follows: General purpose grants 6,353,728 6,363,205 6,353,728 6,363,205 State Government subsidies & grants 1,576,508 6,127,657 1,088,342 5,654,295 Other local government subsidy - 17,317 - 17,317 Donations - 8,687 - 8,687 Total recurrent revenue 7,930,236 12,516,866 7,442,070 12,043,504
20 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 15.5 months- 2010 2009 2010 2009 Actual Actual Actual Actual Note $$$$ 4 Grants, subsidies, contributions and donations (continued) (ii) Capital - grants, subsidies, other contributions and donations are analysed as follows: (a) Monetary revenue designated for capital funding purposes: State Government subsidies & grants 12,759,529 29,596,028 6,598,217 10,833,449 Contributions 5,227,636 15,790,725 2,558,862 7,572,032 17,987,165 45,386,753 9,157,079 18,405,481
(b) Non-monetary revenue received is analysed as follows: 1.10(c) Developer assets contributed by developers at fair value 10,852,783 18,485,689 8,959,653 9,185,121 Donations from third parties at fair value 70,714 - 70,714 - 10,923,497 18,485,689 9,030,367 9,185,121
Total capital revenue 28,910,662 63,872,442 18,187,446 27,590,602
(iii) Conditions over contributions Grants and contributions which were recognised as revenues during the reporting period and which were obtained on the condition that they be expended in a manner specified by the contributor but had not been expended at the reporting date Grants for expenditure on infrastructure 1,126,664 2,553,710 1,126,664 2,553,710 Contributions expended on infrastructure 2,393,886 4,764,241 2,393,886 4,764,241 3,520,550 7,317,951 3,520,550 7,317,951 Grants and contributions which were recognised as revenues during a previous reporting period and were expended during the current reporting period in accordance with the Council's obligations Grants expended on infrastructure 1,749,257 903,442 1,749,257 903,442 Contributions expended on infrastructure 1,432,882 800,632 1,432,882 800,632 3,182,139 1,704,074 3,182,139 1,704,074
5 Capital income Gain on the sale of capital assets 6 305,468 - 309,769 - Revaluation of investment property - land and buildings 19 - 750,456 - 750,456 305,468 750,456 309,769 750,456
6 Gain (loss) on the disposal of capital assets (a) Proceeds from the sale of plant and equipment 1,748,179 946,421 1,648,634 828,195 Less: Book value of plant and equipment sold (1,972,309) (1,126,581) (1,868,463) (1,035,231) (224,130) (180,160) (219,829) (207,036)
(b) Proceeds from the sale of land and buildings 55,000 63,068 55,000 63,068 Less: Book value of land and buildings sold (49,293) (43,074) (49,293) (43,074) 5,707 19,994 5,707 19,994
(c) Proceeds from the sale of investment property 1,576,960 726,045 1,576,960 726,045 Less: Book value of investment property sold (1,053,069) (791,234) (1,053,069) (791,234) 523,891 (65,189) 523,891 (65,189) Total gain (loss) on the disposal of capital assets 5 & 12 305,468 (225,355) 309,769 (252,231)
7 Gain on restructure of local government (a) Net result attributable to Council before net assets transferred from abolished councils
Net result attributable to Council 1,432,399,025 1,230,647,069 Less: Assets and liabilities transferred from abolished councils 20 1,399,393,054 1,225,617,695 Adjustment for unrecognised assets 7 (b) 7,535,098 (229,916) Net gain on restructure of local government 7 (b) 1,406,928,152 1,225,387,779
Net result before gain on restructure of local government 25,470,873 5,259,290
21 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the period 1 July 2009 to 30 June 2010
7 (b) Net gain on restructure The Local Government Reform Commission report to the Minister for Local Government, Planning and Sport on 27 July 2007 recommended that the former Hervey Bay City, Maryborough City, Tiaro Shire and Woocoo Shire Councils be amalgamated to form the Fraser Coast Regional Council (FCRC). Pursuant to Part 1B of the Local Government Act 1993 and in accordance with the Local Government Reform Implementation Regulation 2008 the amalgamation was effective from the changeover date of 15 March 2008.
The Local Government Reform Implementation Regulation 2008 and the Local Government Reform Implementation (Transferring Areas) Amendment Regulation (No.1) 2008 transferred the assets and liabilities of the former councils to the Fraser Coast Regional Council as at changeover date. The assets and liabilities of the former councils have been recognised at the amounts at which they were recognised by the transferor local governments as at the changeover day. Fraser Coast Regional Council (FCRC) adopted consistent accounting policies from its commencement date of 15 March 2008. In some cases, this resulted in adjustments to the measurement of assets and liabilities transferred from former councils as at 15 March 2008. Details are as follows: Hervey Bay City Maryborough City Woocoo Shire Tiaro Shire Transfer Gympie Total Assets and Liabilities Amalgamation Net gain recognised COUNCIL Council Council Council Council Regional recognised by the FCRC Adjustments by FCRC Council * Assets $$$$$ $ $ $ Current assets Cash and cash equivalents 30,255,835 8,397,935 2,170,000 7,297,830 (2,713,027) 45,408,573 - 45,408,573 Trade receivables 10,652,454 13,523,580 738,358 538,659 (158,303) 25,294,748 - 25,294,748 Inventories 3,817,959 277,550 78,531 185,623 (61,200) 4,298,463 - 4,298,463 Other assets 129,146 311,678 51,826 168,461 - 661,111 - 661,111 44,855,394 22,510,743 3,038,715 8,190,573 (2,932,530) 75,662,895 - 75,662,895 Non-current assets Investments 141,589,153 - - - - 141,589,153 - 141,589,153 Trade and other receivables 1,564,000 - - - - 1,564,000 - 1,564,000 Property, plant and equipment 467,654,552 441,663,317 100,771,727 56,281,127 (14,791,931) 1,051,578,792 31,758 1,051,610,550 Capital work in progress 15,099,914 3,544,270 362,362 803,410 (339,394) 19,470,562 (261,674) 19,208,888 Intangible assets 117,644 968,666 - - - 1,086,310 - 1,086,310 626,025,263 446,176,253 101,134,089 57,084,537 (15,131,325) 1,215,288,817 (229,916) 1,215,058,901 Total assets 670,880,657 468,686,996 104,172,804 65,275,110 (18,063,855) 1,290,951,712 (229,916) 1,290,721,796 Liabilities Current liabilities Trade and other payables 9,475,008 3,458,964 649,581 496,109 (126,144) 13,953,518 - 13,953,518 Borrowings 1,453,202 729,093 - 109,860 - 2,292,155 - 2,292,155 Other liabilities ------10,928,210 4,188,057 649,581 605,969 (126,144) 16,245,673 - 16,245,673 Non-current liabilities Payables - 983,594 - 138,416 - 1,122,010 - 1,122,010 Provisions 305,218 2,553,633 - 392,853 - 3,251,704 - 3,251,704 Borrowings 20,497,966 22,453,041 - 2,570,158 (806,535) 44,714,630 - 44,714,630 20,803,184 25,990,268 - 3,101,427 (806,535) 49,088,344 - 49,088,344 Total liabilities 31,731,394 30,178,325 649,581 3,707,396 (932,679) 65,334,017 - 65,334,017
Net assets transferred 639,149,263 438,508,671 103,523,223 61,567,714 (17,131,176) 1,225,617,695 (229,916) 1,225,387,779
* This represents the portion of the assets and liabilities of Tiaro Shire Council (included in the total Tiaro Shire Council assets and liabilities which are shown under the heading "Tiaro Shire Council" in the above table) which were transferred to Gympie Regional Council rather than Fraser Coast Regional Council.
22 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the period 1 July 2009 to 30 June 2010 7 (b) Net gain on restructure (continued)
Hervey Bay City Maryborough City Woocoo Shire Tiaro Shire Transfer Gympie Total Assets and Liabilities Amalgamation Net gain recognised CONSOLIDATED Council Council Council Council Regional recognised by the FCRC Prior Yr Adjust. by FCRC Council * (Consolidated) Assets $$$$$ $ $$ Current assets Cash and cash equivalents 33,987,554 8,397,935 2,170,000 7,297,830 (2,713,027) 49,140,292 - 49,140,292 Trade receivables 12,373,647 13,523,580 738,358 538,659 (158,303) 27,015,941 - 27,015,941 Inventories 4,448,093 277,550 78,531 185,623 ( 61,200) 4,928,597 - 4,928,597 Other assets 719,113 311,678 51,826 168,461 - 1,251,078 - 1,251,078 51,528,407 22,510,743 3,038,715 8,190,573 (2,932,530) 82,335,908 - 82,335,908 Non-current assets Investments ------Trade and other receivables ------Property, plant and equipment 814,104,370 441,663,317 100,771,727 56,281,127 (14,791,931) 1,398,028,610 7,796,772 1,405,825,382 Capital work in progress 30,177,894 3,544,270 362,362 803,410 (339,394) 34,548,542 (261,674) 34,286,868 Intangible assets 117,644 968,666 - - - 1,086,310 - 1,086,310 844,399,908 446,176,253 101,134,089 57,084,537 (15,131,325) 1,433,663,462 7,535,098 1,441,198,560 Total assets 895,928,315 468,686,996 104,172,804 65,275,110 (18,063,855) 1,515,999,370 7,535,098 1,523,534,468 Liabilities Current liabilities Trade and other payables 10,815,535 3,458,964 649,581 496,109 (126,144) 15,294,045 - 15,294,045 Borrowings 4,043,202 729,093 - 109,860 - 4,882,155 - 4,882,155 Other liabilities 43,127 - - - - 43,127 - 43,127 14,901,864 4,188,057 649,581 605,969 (126,144) 20,219,327 - 20,219,327 Non-current liabilities Payables - 983,594 - 138,416 - 1,122,010 - 1,122,010 Provisions 470,518 2,553,633 - 392,853 - 3,417,004 - 3,417,004 Borrowings 67,631,311 22,453,041 - 2,570,158 (806,535) 91,847,975 - 91,847,975 68,101,829 25,990,268 - 3,101,427 (806,535) 96,386,989 - 96,386,989 Total liabilities 83,003,693 30,178,325 649,581 3,707,396 (932,679) 116,606,316 - 116,606,316
Net assets transferred 812,924,622 438,508,671 103,523,223 61,567,714 (17,131,176) 1,399,393,054 7,535,098 1,406,928,152
* This represents the portion of the assets and liabilities of Tiaro Shire Council (included in the total Tiaro Shire Council assets and liabilities which are shown under the heading "Tiaro Shire Council" in the above table) which were transferred to Gympie Regional Council rather than Fraser Coast Regional Council.
23 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 2010 2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $ 8 Employee benefits Total staff wages and salaries 43,418,709 46,163,868 29,330,726 33,390,586 Councillors' remuneration 1,286,830 1,294,677 1,286,830 1,294,677 Annual, sick and long service leave entitlements 5,367,503 3,598,716 4,334,979 3,568,590 Superannuation 33 4,961,789 5,699,975 3,506,453 4,488,626 55,034,831 56,757,236 38,458,988 42,742,479 Other employee related expenses 1,380,085 5,985,753 416,166 4,671,176 56,414,916 62,742,989 38,875,154 47,413,655 Less : Capitalised employee expenses (5,322,807) (4,078,567) (3,549,879) (2,514,333) 51,092,109 58,664,422 35,325,275 44,899,322
Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties.
9 Materials and services Audit fees 224,019 322,967 157,525 191,590 Advertising 553,200 761,391 442,074 543,200 Directors remuneration 113,297 184,847 - - Donations and Sponsorships paid 1,000,145 712,815 973,586 696,827 Legal fees 471,328 919,870 430,911 845,803 Brolga Theatre Contribution 399,000 475,000 399,000 475,000 Insurance 1,797,518 1,959,563 1,182,431 1,912,651 Chemicals 1,729,869 952,173 135,762 - Electricity and gas charges 4,399,648 4,124,670 2,515,613 2,865,702 Rentals - Operating leases 367,151 558,694 253,018 422,616 Refuse charges 2,352,940 3,939,871 2,350,597 3,835,026 Consultants/contractor fees 7,015,610 8,723,847 6,104,370 8,587,247 Telephone/facsimile 853,175 1,246,792 639,732 1,246,051 Plant hire 2,695,725 3,827,664 2,597,924 1,178,868 Fuel and oil 1,935,954 2,483,096 1,527,504 2,004,007 Other material and services 20,343,565 30,777,144 11,776,475 22,315,726 46,252,144 61,970,404 31,486,522 47,120,314
10 Finance costs Finance costs charged by the Queensland Treasury Corporation 7,283,452 8,419,304 2,668,349 3,676,637 Bank charges 256,342 484,853 237,763 456,149 Impairment of receivables 242,971 178,379 193,207 158,699 7,782,765 9,082,536 3,099,319 4,291,485
11 Depreciation and amortisation 1.18(d) (a) Depreciation of non-current assets Land and Site improvements 2,635,119 2,949,947 2,635,119 2,949,947 Buildings 4,968,931 4,348,575 4,795,283 4,122,204 Plant and equipment 3,415,000 5,767,854 2,725,428 4,512,258 Road and bridge network 19,585,942 22,953,410 19,585,942 22,953,410 Water 8,884,033 8,914,833 - 2,570,839 Sewerage 7,162,391 7,342,444 - 2,473,182 Drainage 3,602,060 3,410,662 3,602,060 3,410,662 Coastal infrastructure 548,308 429,016 548,308 429,016 Other Assets 1,002,482 492,476 628,551 611,489 Total depreciation of non-current assets 51,804,266 56,609,217 34,520,691 44,033,007 24 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 2010 2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $ 11 Depreciation and amortisation (continued) (b) Amortisation of intangible assets Computer software 637,678 792,499 522,472 673,486 Total amortisation of intangible assets 637,678 792,499 522,472 673,486
Total depreciation and amortisation 52,441,944 57,401,716 35,043,163 44,706,493
Unfunded Depreciation 1.18(e) The gross unfunded depreciation across all assets for the period is $0 ( 2009 - $4,845,624 ). The net adjusted unfunded depreciation across all assets for the period is $0 ( 2009 - $0 ). The net adjusted unfunded depreciation is the Council's assessment of a future funding shortfall that may arise on the assets future replacement.
Net adjusted unfunded depreciation is calculated by taking the gross unfunded depreciation and deducting the amount of depreciation that will not require funding due to either non-replacement of the asset, contributions becoming available for funding the replacement, the replacement asset will cost less than the existing asset or the engineers assessment of depreciation funding is less than the depreciation expense in the period.
12 Capital expenses Loss on the sale of capital assets 6 - 225,355 - 252,231 Loss on write-off of non-current assets 13 5,191,114 7,109,730 3,781,991 5,412,960 Loss on impairment of capital assets 14 1,753,702 - - - Loss on write-off of WIP 20 (a) 99,165 234,973 - - Total capital expenses 7,043,981 7,570,058 3,781,991 5,665,191
The loss on impairment of property, plant and equipment arose in respect of assets constructed in which abnormal costs were incurred. One of the contributing factors was the liquidation of a major contractor, which resulted in additional costs being incurred to complete the project.
13 Write off of capital assets Land and Site improvements 7,825 306,035 7,825 306,035 Plant and equipment 80,649 26,261 468 - Road and bridge network 3,749,299 4,859,875 3,749,299 4,859,875 Water 510,618 812,166 - 58,598 Sewerage 818,324 1,105,393 - 188,452 Drainage 24,399 - 24,399 - 5,191,114 7,109,730 3,781,991 5,412,960
14 Loss on impairments Loss on impairment of property plant and equipment 20 (a) 1,753,702 - - - Total impairment losses 1,753,702 - - - Impairment losses treated as an expense 1,753,702 - - -
25 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 2010 2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $ 15 Cash assets and cash equivalents 1.12 Cash in operating bank account 2,793,056 9,543,477 328,168 6,464,620 Cash in other banks and on hand 24,815 31,380 20,815 31,380 Deposits at call 15,544,414 35,207,636 15,141,189 33,582,956 Term Deposits held at fixed interest rates 41,455,000 20,905,000 41,455,000 20,905,000 QTC offset 45,192,989 23,281,000 45,192,989 23,281,000 Balance per statement of cash flows 105,010,274 88,968,493 102,138,161 84,264,956
Externally imposed expenditure restrictions at the reporting date relate to the following cash assets:
Unspent government grants and subsidies 4,270,483 4,807,049 4,270,483 4,807,049 Total unspent restricted cash for capital projects 29 (c) (i) 4,270,483 4,807,049 4,270,483 4,807,049
Cash and deposits at call are held in the Commonwealth Bank and ANZ Bank in normal business cheque accounts. On call accounts are also held with AMP and QTC. Other deposits with various institutions. Term deposits earn fixed interest over terms of 60 to 183 days at interest rates between 5.30% and 6.15%. All Wide Bay Water Corporation investments are held in the QTC cash management account bearing floating interest rates between 3.36% and 5.09%
16 Trade and other receivables 1.13 (a) Current Rateable revenue and utility charges 12,664,146 11,597,778 12,664,146 11,597,778 Fees and charges 795,417 341,461 798,567 341,461 Accrued government operating grants and subsidies 788,523 619,398 788,523 619,398 Accrued dividend - - 2,886,271 468,206 Accrued income tax equivalents - - 772,147 1,014,501 Accrued competitive neutrality costs - - - 113,563 Accrued corporate overheads - - - 55,000 GST recoverable 1,243,810 2,026,099 1,017,177 1,517,912 Other debtors 3,886,123 8,753,519 2,047,075 3,570,705 Less: Impairment provision (69,477) (365,190) (69,477) (349,110) Security Deposits 54,005 - - - Interest receivable 1,663,519 861,948 1,663,519 861,948 21,026,066 23,835,013 22,567,948 19,811,362 Prepayments 1,357,421 1,410,782 735,933 911,687 22,383,487 25,245,795 23,303,881 20,723,049
(b) Non-current Loans and advances to controlled entities - 1,564,000 15,627,374 1,564,000 - 1,564,000 15,627,374 1,564,000
Interest is charged on outstanding rates at a rate of 11% per annum. No interest is charged on other debtors. There is no concentration of credit risk and utility charges, fees and other debtors receivable.
17 Inventories 1.14 Current Inventories for internal use: Stores and materials 857,799 688,130 245,356 159,239 Other 36,064 292,888 36,064 292,888 893,863 981,018 281,420 452,127
Valued at cost, adjusted when applicable for any loss of service potential. 26 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council 15.5 months- 2010 2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $ $ $ $
18 Investments
Investment in Wide Bay Water Corporation - - 295,252,349 141,589,153 Investment in Widelinx 1,991,000 - 1,991,000 - 1,991,000 - 297,243,349 141,589,153
Reconciliation of the carrying amount at the beginning and end of the current and previous period is set out below:
(a) Investment in Wide Bay Water Corporation
On 15 July 2009, Fraser Coast Regional Council passed a resolution in which from 1 July 2009, the Fraser Coast Water business unit of the Fraser Coast Regional Council be transferred to Wide Bay Water Corporation. The resolution stated that, Wide Bay Water Corporation, being the successor in law to Fraser Coast Regional Council as the party which owns and operates the water supply and sewerage business previously known as Fraser Coast Water, for each contract or legal instrument relating to the business of Fraser Coast Water to which Fraser Coast Regional Council is a party, Wide Bay Water Corporation is taken to be a party to the contract or instrument instead of Fraser Coast Regional Council. In addition, existing employees of the business of Fraser Coast Water be transferred to Wide Bay Water Corporation on the same terms and conditions as applied to their employment immediately prior to transfer.
Carrying amount at beginning of period - at cost - - 141,589,153 141,589,153 Investment acquired on transfer of Fraser Coast Water 40 - - 153,663,196 - Carrying amount at the period end - at cost - - 295,252,349 141,589,153
(b) Investment in Widelinx
On 21 October 2009, Fraser Coast Regional Council resolved that the outstanding debt between Widelinx Pty Limited and Fraser Coast Regional Council be capitalised, and that Debt Capitalisation be undertaken by the Fraser Coast Regional Council effective 1 July 2009 in its investment in Widelinx for the amount of $1,991,000 (comprising $1,564,000 being the original loan, and $427,000 in accrued interest and corporate overheads).
Carrying amount at beginning of period - at cost - - - - Issue of shares upon debt capitalisation 1,991,000 - 1,991,000 - Carrying amount at the period end - at cost 1,991,000 - 1,991,000 -
19 Land held for development and resale 1.17 Land for development and future sale - at fair value 1,755,979 3,635,221 1,755,979 3,635,221
Movement in assets during the reporting period: Land for development and future sale Opening balance 3,635,221 - 3,635,221 - Value of land sold in the period (1,053,069) (791,234) (1,053,069) (791,234) Internal transfers (to) from other asset categories (826,173) - (826,173) - Revaluation adjustment in period - 750,456 - 750,456 Transferred from abolished councils - 3,675,999 - 3,675,999 Closing balance 1,755,979 3,635,221 1,755,979 3,635,221
27 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
20 (a) Consolidated property, plant and equipment Land and Site Buildings Plant and Road and bridge Water Sewerage Drainage Coastal Other Assets Works in Total improvements equipment network infrastructure progress Consolidated
Basis of measurement Valuation Valuation Cost Valuation Valuation Valuation Valuation Valuation Cost Cost 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 Asset Values $$$$$$$$$$$ Opening gross value 149,278,509 203,360,513 56,690,715 856,836,458 492,744,264 414,393,716 245,761,827 22,584,445 8,759,612 58,769,475 2,509,179,534 Additions at cost 5,741,958 5,020,554 6,909,865 12,161,927 16,674,102 4,234,252 3,154,866 2,436,330 1,197,361 71,232,000 128,763,215 Contributed assets at valuation 70,714 - - 5,424,080 639,414 1,253,716 3,535,573 - - - 10,923,497 Disposals - (52,339) (5,258,042) - (1,705,285) (1,213,729) - - (6,305) (99,165) (8,334,865) Write-offs (17,500) - (4,381) (6,795,714) - - (28,679) - - (3,953,354) (10,799,628) Internal transfers (12,076) (2,758,000) (100,540) - 2,064,075 808,000 - - 6,305 - 7,764 Revaluation adjustment to the ARR - - - - 990,862 251,912 - - - - 1,242,774 Transfer from Land Held for Resale 826,173 ------826,173 Capitalised WIP ------(57,786,160) (57,786,160) Closing gross value 155,887,778 205,570,728 58,237,617 867,626,751 511,407,432 419,727,867 252,423,587 25,020,775 9,956,973 68,162,796 2,574,022,304
Accumulated depreciation and impairment Opening balance 16,144,823 79,754,288 30,782,733 270,307,433 185,007,192 147,421,526 51,118,944 8,095,710 6,446,094 - 795,078,743 Depreciation provided in period 2,635,119 4,968,931 3,415,000 19,585,942 8,884,033 7,162,391 3,602,060 548,308 1,002,482 - 51,804,266 Depreciation on disposals - (3,046) (3,207,024) - (1,194,668) (395,405) - - (4,834) - (4,804,977) Depreciation on write-offs (9,675) - (3,913) (3,046,415) - - (4,280) - - - (3,064,283) Revaluation adjustment to the ARR - - - - 16 - - - - - 16 Impairment adjustment to income - - - - 1,753,702 - - - - - 1,753,702 Internal transfers to other asset classes - (1,519,560) (89,063) - 1,287,649 323,892 (1) - 4,834 - 7,751 Closing accumulated depreciation and impairment balance 18,770,267 83,200,613 30,897,733 286,846,960 195,737,924 154,512,404 54,716,723 8,644,018 7,448,576 - 840,775,218
Consolidated net value 30 June 2010 137,117,511 122,370,115 27,339,884 580,779,791 315,669,508 265,215,463 197,706,864 16,376,757 2,508,397 68,162,796 1,733,247,086 Range of estimated useful life in years 0 - 60 30 - 100 3 - 20 10 - 100 20 - 80 12 - 100 50 - 100 40 - 50 7 - 100
28 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
20 (a) Property, plant and equipment - prior year Land and Buildings Other plant and Road and bridge Water Sewerage Drainage Coastal Other assets Works in Total improvements equipment network infrastructure Progress Consolidated
Basis of measurement Valuation Valuation Cost Valuation Valuation Valuation Valuation Valuation Cost Cost 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 Asset Values $$$$$$$$$$$ Value of assets transferred from abolished councils 130,348,688 160,682,365 50,466,768 772,798,000 430,369,274 345,640,469 164,045,476 16,292,999 7,801,833 38,338,875 2,116,784,747 Amalgamation adjustments - - - 31,758 - - - - - (261,674) (229,916) Additions at cost 7,232,722 5,149,884 9,048,484 17,925,071 6,432,555 5,875,031 3,832,788 3,101 957,779 87,027,173 143,484,588 Contributed assets at valuation - 15,000 10,435 6,590,285 2,527,311 4,159,168 2,553,053 - - - 15,855,252 Disposals (43,074) - (2,742,599) - (1,760,969) (1,317,026) - - - (18,151) (5,881,819) Write-offs (2,642,137) - - (11,951,860) (361,022) (356,170) - - - (5,855,502) (21,166,691) Revaluation adjustment to the ARR 12,404,098 40,282,897 - 86,255,861 50,257,347 56,870,398 60,517,853 6,288,345 - - 312,876,799 Revaluation adjustment to the P&L (229,321) (286,840) ------(516,161) Internal transfers 2,207,533 (2,482,793) (92,373) (4,484,590) 2,289,225 1,957,546 4,484,590 - - - 3,879,138 Capitalised WIP ------(60,461,247) (60,461,247) 2008/09 Prior Period Adjustment - - - (10,328,067) 2,990,543 1,564,300 10,328,067 - - - 4,554,843 Closing gross value 149,278,509 203,360,513 56,690,715 856,836,458 492,744,264 414,393,716 245,761,827 22,584,445 8,759,612 58,769,474 2,509,179,533
Accumulated depreciation and impairment Value of accumulated depreciation transferred from abolished Councils 17,113,639 43,086,601 27,079,651 246,321,338 161,432,107 124,518,546 32,974,265 6,386,526 5,834,605 - 664,747,278 Depreciation provided in period 2,949,947 4,300,712 5,355,025 22,953,410 9,615,499 8,320,663 3,410,662 429,016 611,489 - 57,946,423 Depreciation on disposals - - (1,589,757) - (1,171,654) (501,642) - - - - (3,263,053) Depreciation on write-offs (2,336,102) - - (7,091,985) (302,424) (167,718) - - - - (9,898,229) Revaluation adjustment to the ARR (2,401,973) 33,367,588 - 13,217,667 17,246,241 17,319,409 9,641,020 1,280,168 - - 89,670,120 Internal transfers 819,312 (888,350) (62,186) (1,661,442) 98,783 5,279 1,661,442 - - - (27,162) 2008/09 Prior Period Adjustment WBWC - - - - 230,110 95,969 - - - - 326,079 2008/09 Prior Period Adjustment ARR - (62,117) - - (49,284) (152,585) - - - - (263,986) 2008/09 Prior Period Adjustment P&L - (50,146) ------(50,146) 2008/09 Prior Period Adjustment Depn - - - (3,431,555) (2,092,186) (2,016,395) 3,431,555 - - - (4,108,581) Closing accumulated depreciation and impairment balance 16,144,823 79,754,288 30,782,733 270,307,433 185,007,192 147,421,526 51,118,944 8,095,710 6,446,094 - 795,078,743 Consolidated net value 30 June 2009 133,133,686 123,606,225 25,907,982 586,529,025 307,737,072 266,972,190 194,642,883 14,488,735 2,313,518 58,769,474 1,714,100,791
Range of estimated useful life in years 0 - 60 30 - 100 3 - 20 10 - 100 20 - 80 12 - 100 50 - 100 40 - 50 7 - 100
29 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
20 (b) Council property, plant and equipment Land and Site Buildings Plant and Road and bridge Water Sewerage Drainage Coastal Other Assets Works in Total improvements equipment network infrastructure progress Council
Basis of measurement Valuation Valuation Cost Valuation Valuation Valuation Valuation Valuation Valuation Cost 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 Asset Values $$$$$$$$$$$ Opening gross value 133,690,666 197,750,932 47,030,672 856,836,458 149,383,161 157,971,918 245,761,827 22,584,445 8,759,612 14,442,699 1,834,212,390 Additions at cost 5,741,958 4,596,891 6,051,187 12,161,927 - - 3,154,866 2,436,330 755,244 45,668,084 80,566,487 Contributed assets at valuation 70,714 - - 5,424,080 - - 3,535,573 - - - 9,030,367 Disposals - (52,339) (4,715,813) ------(4,768,152) Write-offs (17,500) - (4,381) (6,795,714) - - (28,679) - - (3,953,354) (10,799,628) Internal transfers to other asset classes (12,076) - 19,836 ------7,760 Capitalised WIP ------(35,048,149) (35,048,149) Transfer from Land Held for Resale 826,173 ------826,173 Assets transferred to Wide Bay Water (1,098,000) (3,378,000) (1,901,796) - (149,383,161) (157,971,918) - - - (1,036,685) (314,769,560) Closing gross value 139,201,935 198,917,484 46,479,705 867,626,751 - - 252,423,587 25,020,775 9,514,856 20,072,595 1,559,257,688
Accumulated depreciation and impairment Opening balance 16,144,823 78,691,507 26,936,019 270,307,433 72,287,061 73,103,822 51,118,944 8,095,710 6,446,094 - 603,131,413 Depreciation provided in period 2,635,119 4,795,283 2,725,428 19,585,942 - - 3,602,060 548,308 628,551 - 34,520,691 Depreciation on disposals - (3,046) (2,847,350) ------(2,850,396) Depreciation on write-offs (9,675) - (3,913) (3,046,415) - - (4,280) - - - (3,064,283) Internal transfers to other asset classes - 40 7,720 - - 1 (1) - - - 7,760 Assets transferred to Wide Bay Water - (1,887,100) (970,702) - (72,287,061) (73,103,823) - - - - (148,248,686) Closing accumulated depreciation and impairment balance 18,770,267 81,596,684 25,847,202 286,846,960 - - 54,716,723 8,644,018 7,074,645 - 483,496,499
Net value at 30 June 2010 120,431,668 117,320,800 20,632,503 580,779,791 - - 197,706,864 16,376,757 2,440,211 20,072,595 1,075,761,189 Range of estimated useful life in years 0 - 60 30 - 100 3 - 20 10 - 100 20 - 80 12 - 100 50 - 100 40 - 50 7 - 100
30 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
20 (b) Property, plant and equipment - prior year Land and Buildings Other plant and Road and bridge Water Sewerage Drainage Coastal Other assets Works in Total improvements equipment network infrastructure Progress Council
Basis of measurement Valuation Valuation Cost Valuation Valuation Valuation Valuation Valuation Cost Cost 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 15.5 months 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 Asset Values $$$$$$$$$$$ Value of assets transferred from abolished councils 115,442,882 154,810,644 41,575,713 772,798,000 136,884,221 146,573,559 164,045,476 16,292,999 7,801,833 19,470,564 1,575,695,891 Amalgamation adjustments - - - 31,758 - - - - - (261,674) (229,916) Additions at cost 6,712,621 5,095,732 7,674,184 17,925,071 - - 3,832,788 3,101 957,779 47,235,702 89,436,978 Contributed assets at valuation - 15,000 10,435 6,590,285 - 16,347 2,553,053 - - - 9,185,120 Disposals (43,074) - (2,137,287) ------(2,180,361) Write-offs (2,642,137) - - (11,951,860) (361,022) (356,170) - - - (5,855,502) (21,166,691) Revaluation adjustment to the ARR 11,910,723 40,414,467 - 86,255,861 10,570,737 9,780,636 60,517,853 6,288,345 - - 225,738,622 Internal transfers 2,309,651 (2,584,911) (92,373) (4,484,590) 2,289,225 1,957,546 4,484,590 - - - 3,879,138 Capitalised WIP ------(46,146,391) (46,146,391) 2008/09 Prior Period Adjustment - - - (10,328,067) - - 10,328,067 - - - - Closing gross value 133,690,666 197,750,932 47,030,672 856,836,458 149,383,161 157,971,918 245,761,827 22,584,445 8,759,612 14,442,699 1,834,212,390
Accumulated depreciation and impairment
Value of accumulated depreciation transferred from abolished councils 17,113,639 42,090,065 23,588,003 246,321,338 64,052,844 66,285,250 32,974,265 6,386,526 5,834,605 - 504,646,535 Depreciation provided in period 2,949,947 4,122,204 4,512,258 22,953,410 4,663,025 4,489,577 3,410,662 429,016 611,489 - 48,141,588 Depreciation on disposals - - (1,102,056) ------(1,102,056) Depreciation on write-offs (2,336,102) - - (7,091,985) (302,424) (167,718) - - - - (9,898,229) Revaluation adjustment to the ARR (2,401,973) 33,367,588 - 13,217,667 5,916,303 4,660,414 9,641,020 1,280,168 - - 65,681,187 Internal transfers 819,312 (888,350) (62,186) (1,661,442) 98,783 5,279 1,661,442 - - - (27,162) 2008/09 Prior Period Adjustment ARR - - - - (49,284) (152,585) - - - - (201,869) 2008/09 Prior Period Adjustment Depn - - - (3,431,555) (2,092,186) (2,016,395) 3,431,555 - - - (4,108,581) Closing accumulated depreciation and impairment balance 16,144,823 78,691,507 26,936,019 270,307,433 72,287,061 73,103,822 51,118,944 8,095,710 6,446,094 - 603,131,413
Net value at 30 June 2009 117,545,843 119,059,425 20,094,653 586,529,025 77,096,100 84,868,096 194,642,883 14,488,735 2,313,518 14,442,699 1,231,080,977 Range of estimated useful life in years 0 - 60 30 - 100 3 - 20 10 - 100 20 - 80 12 - 100 50 - 100 40 - 50 7 - 100
31 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
20 (c) Property, plant and equipment valuations were determined by reference to the following:
Land and improvements Land has been included at current market value 31 March 2009 as determined by Rushton Asset Val Pty Ltd, Valuer. Land acquired since that date is recorded at cost.
Land under infrastructure and reserve land does not have a value for the purpose of the Fraser Coast Regional Council's financial statements.
Buildings Buildings have been included at their written down replacement cost at 31 March 2009 as valued by Rushton Asset Val Pty Ltd, Valuer. Buildings constructed and acquired since that date are recorded at cost.
Other Plant and Equipment All other plant and equipment have been recognised at historical cost less accumulated depreciation.
Infrastructure Water and Sewerage Infrastructure Water and sewerage assets brought on from the former Maryborough City Council were indexed by 6.6% based on the Local Government Index for Queensland.
Water and sewerage from Wide Bay Water Corporation comprise of active and passive asset groups. Active assets were revalued by Cardno at 30 June 2004 and subsequently indexed annually. For the year ended 30 June 2009, assets were indexed at 4.69% based on Cardno rates. A full revision of the passive assets unit rates was undertaken by Cardno in June 2009, which resulted in an average increase of 26.6%.
Water and Sewerage assets brought on from the former Tiaro Shire Council were indexed by 3.7% based on the Local Government Index for Queensland at 30 June 2009.
No indexation of water or wastewater infrastructure assets occurred at June 2010 as the Queensland Local Government Index of 0.85% was deemed immaterial.
Road and bridge Infrastructure Roads and bridges infrastructure assets, with the exception of those assets brought on from the former Tiaro Shire and Woocoo Shire Councils, were valued according to unit rates calculated by Fraser Coast Regional Council’s Strategic Asset Planning Department at 30 June 2009. These unit rates were verified by Rushton Asset Val Pty Ltd, Valuer.
Roads and bridges infrastructure assets brought on from the former Tiaro Shire and Woocoo Shire Councils were indexed by 3.7% based on the Local Government Index for Queensland at 30 June 2009.
No indexation of roads and bridges infrastructure assets occurred at June 2010 as the Queensland Local Government Index of 0.85% was deemed immaterial.
32 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
Drainage Infrastructure Drainage infrastructure assets, with the exception of those assets brought on from the former Tiaro Shire and Woocoo Shire Councils, were valued according to unit rates calculated by Fraser Coast Regional Council’s Strategic Asset Planning Department at 30 June 2009. These unit rates were verified by Rushton Asset Val Pty Ltd, Valuer.
Assets brought on from the former Tiaro Shire and Woocoo Shire Councils were indexed by 3.7% based on the Local Government Index for Queensland at 30 June 2009.
No indexation of drainage infrastructure assets occurred at June 2010 as the Queensland Local Government Index of 0.85% was deemed immaterial.
Coastal Infrastructure Coastal infrastructure assets have been included at their written down replacement cost at 31 March 2009 by Rushton Asset Val Pty Ltd, Valuer. Coastal Infrastructure assets constructed and acquired since that date are recorded at cost.
Other Assets All other assets recognised at cost less accumulated depreciation.
21 Intangible assets 1.19 Net carrying value at period end: Computer software 1,001,643 1,392,139 641,933 1,022,415 1,001,643 1,392,139 641,933 1,022,415 Computer software - at cost Opening balance 3,689,284 731,079 2,899,778 - Transfer (to) from other assets categories - 65,977 - 65,977 Acquired at cost 247,182 629,203 141,990 570,776 Assumed / (divested) adjustment to accumulated amortisation - 2,263,025 - 2,263,025 Closing balance 3,936,466 3,689,284 3,041,768 2,899,778 Accumulated amortisation Opening balance 2,297,145 300,769 1,877,363 - Transfer (to) from other non-current asset category - 27,161 - 27,161 Amortisation in the period 637,678 792,499 522,472 673,486 Assumed / (divested) adjustment to accumulated amortisation - 1,176,716 - 1,176,716 Closing balance 2,934,823 2,297,145 2,399,835 1,877,363
Net carrying value at the period end 1,001,643 1,392,139 641,933 1,022,415
Straight line amortisation has been used with no residual value. Software has a finite life estimated at ten years.
22 Trade and other payables 1.23 Current Creditors 9,560,308 20,244,322 22,073,772 18,546,695 GST payable 196,697 193,489 196,697 193,489 Employee related tax payable 690,011 43,659 206,871 43,659 Annual leave 1.24(b) 5,236,007 4,969,106 3,789,631 3,865,716 Other entitlements 395,950 236,098 238,955 116,790 16,078,973 25,686,674 26,505,926 22,766,349
Employee benefit expenses are calculated at current pay levels and adjusted for inflation and likely future changes in salary level. The non-current portion of annual leave and long service leave is then discounted to the present value. Further details on employee entitlements are reported in Note 1.24.
33 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
23 Provisions 1.24 Current Long service leave 1.24(e) 6,254,373 5,661,444 4,499,633 4,453,653 6,254,373 5,661,444 4,499,633 4,453,653 Non-Current Long service leave 1.24(e) 699,894 763,354 342,258 510,620 699,894 763,354 342,258 510,620
Details of movements in provisions: Long service leave Opening balance 6,424,798 4,964,273 Amount provided for in the period 1,901,538 946,539 Amount paid in the period (1,372,069) (1,068,921) Balance at the end of period 6,954,267 4,841,891
24 Borrowings 1.25 (a) Bank overdraft The council does not have a bank overdraft facility.
(b) Unsecured borrowings Unsecured borrowings are provided by the Queensland Treasury Corporation. All borrowings are in $A denominated amounts and carried at amortised cost, interest being expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Expected final repayment dates vary from 4 September 2010 to 15 June 2030. There have been no defaults or breaches of the loan agreement during the period. Principal and interest repayments are made quarterly in arrears.
(c) Secured borrowings The council has no secured borrowings.
Details of borrowings at balance date are: Current (i) Queensland Treasury Corporation 7,383,157 8,577,991 3,830,673 5,259,520 (ii) Working capital facility - Queensland Treasury Corporation 2,100,000 - - - 9,483,157 8,577,991 3,830,673 5,259,520
Non Current (i) Queensland Treasury Corporation 154,006,749 128,832,435 82,505,412 60,318,110
Details of movements in borrowings: Queensland Treasury Corporation Opening balance 137,410,425 - 65,577,630 - Loans raised 31,254,000 48,920,000 24,754,000 23,281,000 Loans transferred on the restructure of local government - 96,730,133 - 47,006,787 Working capital facility drawn down 2,100,000 - - - Principal repayments (7,274,519) (8,239,707) (3,995,545) (4,710,157) Book value at period end 163,489,906 137,410,426 86,336,085 65,577,630 Classified as : Current 9,483,157 8,577,991 3,830,673 5,259,520 Non-current 154,006,749 128,832,435 82,505,412 60,318,110 163,489,906 137,410,426 86,336,085 65,577,630
The loan market value at the reporting date was $87,935,224 (consolidated $165,704,424). This represents the value of the debt if the Council repaid it at that date. As it is the intention of the Council to hold the debt for its full term, no provision is required to be made in these accounts.
Borrowings are all in Australian dollars and are underwritten by the Queensland State Government.
34 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
25 Other liabilities Current Unearned revenue 52,372 249,397 5,510 117,273 52,372 249,397 5,510 117,273 26 Council Capital 1.26 (i) Calculation of capital value and retained surplus: Cash and cash equivalents 105,010,274 88,968,493 102,138,161 84,264,956 Less restricted cash: Reserves (excluding the asset revaluation) (83,104,401) (66,834,558) (83,104,401) (66,834,558) Revenue received in advance (52,372) (249,397) (5,510) (117,273) Transfer for capital cash (95,692,293) - 58,355 - Working capital cash (including employee entitlements) 86,184,726 80,387,390 (10,598,854) (10,458,633) Retained surplus (deficit) available for distribution 28 12,345,934 102,271,928 8,487,751 6,854,492 Council capital (ii) 1,359,548,792 1,263,567,220 1,157,188,943 1,156,958,019 Total capital and retained surplus at end of period 1,371,894,726 1,365,839,148 1,165,676,694 1,163,812,511
(ii) Movement in council capital Balance at beginning of period 1,263,567,220 - 1,156,958,019 - Amalgamation adjustment - (1,469,785) - - Adjustments from (to) retained surplus: Transfer of capital income in the period 305,468 750,456 309,769 750,456 Transfer of capital expenses in the period (3,777,690) (7,570,058) (3,781,991) (5,665,191) Transfer of non monetary capital revenue 9,030,367 18,049,250 9,030,367 9,185,121 Transfer of unspent capital revenue (51,743,265) (30,066,742) (51,743,265) (55,307,480) Transfer of unfunded depreciation - (4,845,624) - (4,845,624) Transfer for capital cash 95,692,293 (155,417,864) (58,355) (49,756,477) Capital value gained on restructure of local government - 1,406,928,152 - 1,225,387,779 Total transfers (to) from retained surplus 49,507,173 1,226,357,785 (46,243,475) 1,119,748,584 Transfer (to) from note 29 - Other Reserves: Constrained Grants And Subsidy Reserve 7,134,783 7,453,226 7,134,783 7,453,226 Grants, Subsidies And Contributions Reimbursed Reserve 1,401,353 - 1,401,353 - Environmental Levy Reserve 25,369 - 25,369 - Land And Buildings Reserve 1,110,000 - 1,110,000 - Brolga Theatre Reserve 200,000 - 200,000 - Unspent Loans Reserve 7,336,700 1,366,551 7,336,700 1,366,551 Contingency Reserve 16,050,740 28,389,658 16,050,740 28,389,658 Transfer reserves to WBWC 40 3,238,929 - 3,238,929 - Transferred from the asset revaluation reserve 9,976,525 - 9,976,525 - Total transfers (to) from reserves 46,474,399 37,209,435 46,474,399 37,209,435
Balance at period end 1,359,548,792 1,263,567,220 1,157,188,943 1,156,958,019
The amount by which the Council has increased (decreased) its capital capacity to deliver future services to the community before inflation adjustments 95,981,572 1,263,404,565 230,924 1,156,958,019
35 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
27 (i) Asset revaluation surplus 1.27 Movements in the asset revaluation reserve were as follows: Balance at beginning of period 233,442,455 - 160,259,304 - Net adjustment to non-current assets charged to the reserve: Adjustments to the fair value through revaluations: 20 Prior Period Adjustment - 1,540,048 - Land and Site improvements - 14,872,315 - 14,312,696 Buildings - 6,825,583 - 7,046,879 Road and bridge network - 73,038,194 - 73,038,194 Water 990,845 38,453,467 - 4,703,718 Sewerage 251,912 42,827,839 - 5,272,807 Drainage - 50,876,833 - 50,876,833 Coastal infrastructure - 5,008,177 - 5,008,177 Revaluations movements charged to the reserve 1,242,757 233,442,456 - 160,259,304 234,685,212 233,442,456 160,259,304 160,259,304 Transfer of Fraser Coast Water business to Water Wide Bay Water Corporation (9,976,525) - (9,976,525) - Balance at end of the year 224,708,687 233,442,456 150,282,779 160,259,304
(ii) Asset revaluation reserve analysis The closing balance of the asset revaluation reserve is comprised of the following asset categories: Land and Site improvements 15,154,913 14,872,315 14,312,696 14,312,696 Buildings 7,490,962 6,825,613 7,046,879 7,046,879 Road and bridge network 73,038,194 73,038,194 73,038,194 73,038,194 Water 38,565,292 40,101,848 - 4,703,718 Sewerage 34,574,316 42,719,476 - 5,272,807 Drainage 50,876,833 50,876,833 50,876,833 50,876,833 Coastal infrastructure 5,008,177 5,008,177 5,008,177 5,008,177 224,708,687 233,442,456 150,282,779 160,259,304
28 Retained surplus 1.30 Movement in retained surplus Retained surplus (deficit) at the beginning of period 102,271,928 - 6,854,492 - Net result attributable to council 12,015,684 1,432,399,025 8,157,501 1,230,647,069 114,287,612 1,432,399,025 15,011,993 1,230,647,069 Transfers (to) from capital account: Transfer of capital income (305,468) (750,456) (309,769) (750,456) Transfer of capital expenses 3,777,690 7,570,058 3,781,991 5,665,191 Non monetary capital revenue (9,030,367) (18,049,250) (9,030,367) (9,185,121) Unspent capital revenue transferred from capital 51,743,265 30,066,742 51,743,265 55,307,480 Adjustment for unfunded depreciation - 4,845,624 - 4,845,624 Transfer to adjust the working capital cash (95,359,081) 155,417,863 58,355 49,756,477 Transfer the capital value arising from the local government reform - (1,406,928,152) - (1,225,387,779) Amalgamation adjustment - 1,744,467 - -
Net capital account transfers (49,173,961) (1,226,083,104) 46,243,475 (1,119,748,584) Transfer from (to) the constrained grants and subsidy reserve (6,598,217) (12,260,275) (6,598,217) (12,260,275) Transfer from (to) the grants, subsidies and contributions reimbursed reserve (2,393,886) (12,865,856) (2,393,886) (12,865,856) Retained surplus (deficiency) available for transfer to reserves 56,121,548 181,189,790 52,263,365 85,772,354 Transfers (to) from reserves for future capital funding purposes: Plant and fleet reserve - (850,673) - (850,673) Aged housing reserve (1,806) (782,982) (1,806) (782,982) Wide Bay Water - distribution reserve - (1,654,000) - (1,654,000) Environmental levy reserve (478,412) (1,170,005) (478,412) (1,170,005) Commercial and business activity reserve - (282,531) - (282,531) 36 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
Land and buildings reserve (287,751) (2,687,326) (287,751) (2,687,326) Brolga theatre reserve (102,059) (351,249) (102,059) (351,249) Contingency reserve (207,467) (1,727,801) (207,467) (1,727,801) Unspent loans reserve (19,438,089) (16,280,997) (19,438,089) (16,280,997) Other reserves (19,348,180) (46,951,795) (19,348,180) (46,951,795) Transfers (to) from reserves for future general funding purposes: Constrained Recurrent grants reserve (111,988) (1,994,164) (111,988) (1,994,164) Property management reserve 158,168 (490,428) 158,168 (490,428) Contingency reserve (626,654) (676,320) (626,654) (676,320) Unspent operational reserve (875,896) (1,092,876) (875,896) (1,092,876) IT reserve (2,455,480) (200,000) (2,455,480) (200,000) Development Assessment Reserve - (1,724,715) - (1,724,715) Balance at end of the year 12,345,934 102,271,928 8,487,751 6,854,492
29 Other reserves 1.28 (a) Summary of reserves held for funding future capital expenditure: (i) Constrained Grants and Contributions Reserve 4,270,483 4,807,049 4,270,483 4,807,049 (ii) Grants, Subsidies and Contributions Reimbursed Reserve 12,121,825 12,865,856 12,121,825 12,865,856 (iii) Plant and Fleet Reserve 850,673 850,673 850,673 850,673 (iv) Aged Housing Reserve 784,788 782,982 784,788 782,982 (v) Wide Bay Water- Distribution Reserve 1,654,000 1,654,000 1,654,000 1,654,000 (vi) Environmental Levy Reserve 1,623,048 1,170,005 1,623,048 1,170,005 (vii) Commercial and Business Activity Reserve 282,531 282,531 282,531 282,531 (viii) Land and Buildings Reserve 1,865,077 2,687,326 1,865,077 2,687,326 (ix) Brolga Theatre Reserve 253,308 351,249 253,308 351,249 (x) Contingency Reserve 1,935,268 1,727,801 1,935,268 1,727,801 (xi) Unspent Loans Reserve 26,146,530 14,914,446 26,146,530 14,914,446 (xii) Other Reserves 21,226,517 18,562,137 21,226,517 18,562,137 73,014,048 60,656,055 73,014,048 60,656,055 (b) Summary of reserves held for funding future recurrent expenditure: (i) Constrained Recurrent Grants Reserve 2,106,152 1,994,164 2,106,152 1,994,164 (ii) Property Management Reserve 332,260 490,428 332,260 490,428 (iii) Contingency Reserve 1,302,974 676,320 1,302,974 676,320 (iv) Unspent Operational Reserve 1,968,772 1,092,876 1,968,772 1,092,876 (v) IT Reserve 2,655,480 200,000 2,655,480 200,000 (vi) Development Assessment Reserve 1,724,715 1,724,715 1,724,715 1,724,715 10,090,353 6,178,503 10,090,353 6,178,503
Total reserves 83,104,401 66,834,558 83,104,401 66,834,558
Movements in capital reserves are analysed as follows: (i) Constrained Grants and Contributions Reserve Balance at the beginning of period 4,807,049 - 4,807,049 - Transfer from retained earnings 24,866,203 Transfer from retained earnings grants, subsidies and contributions received in the period which restricted to specific capital projects 6,763,193 5,539,625 6,763,193 5,539,625 Transfers to the capital account funds expended in the period (7,134,783) (7,453,226) (7,134,783) (7,453,226) Transfer to retained earnings (164,976) (18,145,553) (164,976) 6,720,650 Balance at period end 4,270,483 4,807,049 4,270,483 4,807,049
37 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
(ii) Grants, Subsidies and Contributions Reimbursed Reserve Balance at the beginning of period 12,865,856 - 12,865,856 -
Transfer from retained earnings grants, subsidies and contributions received in the period which are a reimbursement or are uncommitted at time of receipt 2,393,886 12,865,856 2,393,886 12,865,856 Transfer to the capital account funds expended in the period (1,401,353) - (1,401,353) - Transfer to Wide Bay Water (1,736,564) - (1,736,564) - Balance at period end 12,121,825 12,865,856 12,121,825 12,865,856
(iii) Plant and Fleet Reserve Balance at the beginning of period 850,673 - 850,673 - Transfer from retained earnings for future expenditure - 1,049,408 - 1,049,408 Transfer to retained earnings - (198,735) - (198,735) Balance at period end 850,673 850,673 850,673 850,673
(iv) Aged Housing Reserve Balance at the beginning of period 782,982 - 782,982 - Transfer from retained earnings for future expenditure 1,806 782,982 1,806 782,982 Balance at period end 784,788 782,982 784,788 782,982
(v) Wide Bay Water- Distribution Reserve Balance at the beginning of period 1,654,000 - 1,654,000 - Transfer from retained earnings for future expenditure - 1,654,000 - 1,654,000 Balance at period end 1,654,000 1,654,000 1,654,000 1,654,000
(vi) Environmental Levy Reserve Balance at the beginning of period 1,170,005 - 1,170,005 - Transfer from retained earnings for future expenditure 478,412 1,170,005 478,412 1,170,005 Transfer to the capital account funds expended in the period (25,369) - (25,369) - Balance at period end 1,623,048 1,170,005 1,623,048 1,170,005
(vii) Commercial and Business Activity Reserve Balance at the beginning of period 282,531 - 282,531 - Transfer from retained earnings for future expenditure - 282,531 - 282,531 Balance at period end 282,531 282,531 282,531 282,531
(viii) Land and Buildings Reserve Balance at the beginning of period 2,687,326 - 2,687,326 - Transfer from retained earnings for future expenditure 287,751 2,687,326 287,751 2,687,326 Transfer to the capital account funds expended in the period (1,110,000) - (1,110,000) - Balance at period end 1,865,077 2,687,326 1,865,077 2,687,326
(ix) Brolga Theatre Reserve Balance at the beginning of period 351,249 - 351,249 - Transfer from retained earnings for future expenditure 102,059 351,249 102,059 351,249 Transfer to the capital account funds expended in the period (200,000) - (200,000) - Balance at period end 253,308 351,249 253,308 351,249
(x) Contingency Reserve Balance at the beginning of period 1,727,801 - 1,727,801 - Transfer from retained earnings for future expenditure 207,467 1,727,801 207,467 1,727,801 Balance at period end 1,935,268 1,727,801 1,935,268 1,727,801
38 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
(xi) Unspent Loans Reserve Balance at the beginning of period 14,914,446 - 14,914,446 - Transfer from retained earnings for future expenditure 19,438,089 16,280,997 19,438,089 16,280,997 Transfer to the capital account funds expended in the period (7,336,700) (1,366,551) (7,336,700) (1,366,551) Transfer to Wide Bay Water (869,305) - (869,305) - Balance at period end 26,146,530 14,914,446 26,146,530 14,914,446
(xii) Other Reserves Balance at the beginning of period 18,562,137 - 18,562,137 - Transfer from retained earnings for future expenditure 19,348,180 46,951,795 19,348,180 46,951,795 Transfer to the capital account funds expended in the period (16,050,740) (28,389,658) (16,050,740) (28,389,658) Transfer to Wide Bay Water (633,060) - (633,060) - Balance at period end 21,226,517 18,562,137 21,226,517 18,562,137
(d) Movements in recurrent reserves are analysed as follows: (i) Constrained Recurrent Grants Reserve Balance at the beginning of period 1,994,164 - 1,994,164 - Transfer from retained earnings for future expenditure 1,841,050 2,350,671 1,841,050 2,350,671 Transfer to retained earnings (1,729,062) (356,507) (1,729,062) (356,507) Balance at period end 2,106,152 1,994,164 2,106,152 1,994,164
(ii) Property Management Reserve Balance at the beginning of period 490,428 - 490,428 - Transfer from retained earnings for future expenditure (158,168) 490,428 (158,168) 490,428 Balance at period end 332,260 490,428 332,260 490,428
(iii) Contingency Reserve Balance at the beginning of period 676,320 - 676,320 - Transfer from retained earnings for future expenditure 1,126,654 676,320 1,126,654 676,320 Transfer to retained earnings (500,000) - (500,000) - Balance at period end 1,302,974 676,320 1,302,974 676,320
(iv) Unspent Operational Reserve Balance at the beginning of period 1,092,876 - 1,092,876 - Transfer from retained earnings for future expenditure 1,073,489 1,429,902 1,073,489 1,429,902 Transfer to retained earnings (197,593) (337,026) (197,593) (337,026) Balance at period end 1,968,772 1,092,876 1,968,772 1,092,876 (v) IT Reserve Balance at the beginning of period 200,000 - 200,000 - Transfer from retained earnings for future expenditure 2,455,480 200,000 2,455,480 200,000 Balance at period end 2,655,480 200,000 2,655,480 200,000
(vi) Development Assessment Reserve Balance at the beginning of period 1,724,715 - 1,724,715 - Transfer from retained earnings for future expenditure - 1,724,715 - 1,724,715 Balance at period end 1,724,715 1,724,715 1,724,715 1,724,715
39 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
30 Commitments for expenditure Operating leases Minimum lease payments in relation to non-cancellable operating leases are as follows:
Within one year 155,262 222,948 46,981 108,121 Later than 1 year but not later than 5 years 417,681 268,594 205,160 207,723 Later than 5 years 325,286 380,877 325,286 380,877 898,229 872,419 577,427 696,721
Operating leases are entered into for commercial premises. Lease payments are generally fixed, but with inflation clauses on which future rentals are determined.
Capital Commitments Commitment for the construction of the following assets contracted for at the reporting date but not recognised as liabilities are as follows:
Infrastructure 5,865,576 11,259,945 5,525,113 4,078,611 Operating contracts for cleaning, landscaping & ranger 659,574 940,477 - - 6,525,150 12,200,422 5,525,113 4,078,611 These expenditures are payable : Within one year 6,525,150 12,200,422 5,525,113 4,078,611 6,525,150 12,200,422 5,525,113 4,078,611
31 Events after the reporting period There were no material financial adjusting events after the reporting date.
32 Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: The Fraser Coast Regional Council and WBWC are members of the Queensland local government self-insurance scheme, Local Government Workcare (LGW). Under this scheme the Council and WBWC has provided a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities. Only the Queensland Government's workers compensation authority may call on any part of the guarantee should the above circumstances arise. The Council's maximum exposure to the bank guarantee is $1,125,099. and WBWC's maximum exposure to the bank guarantee is $268,292.
The Fraser Coast Regional Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises. As at 30 June 2009 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise.
Various claims are pending against Wide Bay Water Corporation (WBWC). In the opinion of WBWC's solicitors the potential loss on all claims should not exceed $15,000.
40 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
33 Superannuation The Fraser Coast Regional Council contributes to the Local Government Superannuation Scheme (Qld) (the scheme). The scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits.
The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation. The scheme has two elements referred to as the Defined Benefits Fund (DBF) and the Accumulation Benefits Fund (ABF). The ABF is a defined contribution scheme as defined in AASB 119. Council has no liability to or interest in the ABF other than the payment of the statutory contributions as required by the Local Government Act 1993.
The DBF is a defined benefit plan as defined in AASB119. The Council is not able to account for the DBF as a defined benefit plan in accordance with AASB119 because the scheme is unable to account to the Council for its proportionate share of the defined benefit obligation, plan assets and costs.
Any amount by which either fund is over or under funded would only affect future benefits and contributions to the DBF, and is not an asset or liability of the Council. Accordingly there is no recognition in the financial statements of any over or under funding of the scheme. The audited general purpose financial report of the scheme as at 30 June 2009 (the most recent available) which was not subject to any audit qualification, indicates that the assets of the scheme are sufficient to meet the vested benefits.
The most recent actuarial assessment of the scheme was undertaken as at 1 July 2009. The actuary indicated that “the DBF is in a very modest financial position with regard to the net asset coverage of vested liabilities. Investment returns will be volatile under the required investment strategy, particularly over short periods. The DBF therefore needs sufficient reserves to be able to withstand a reasonable range of such influences. Because the DBF is now running down and cash flows are negative, the VBI (vested benefit index) should not be allowed whenever possible to retreat below 100%. Once below 100%, benefits drawn reduce the available assets for remaining members and hence the nest asset coverage of vested benefits declines further.
In order to withstand a one in ten ‘low return’ outcome, the DBF would need reserves of the order of 8% to 10% having regard to the investment strategy adopted. Given the current position of the DBF, such reserve can essentially only eventuate from either excess investment returns over salary increases or additional employer contributions.
Council has been advised by the trustee of the scheme, following advice from the scheme’s actuary, that additional contributions may be imposed in the future at a level necessary to protect the entitlements of DBF members. Under amendments to the Local Government Act 1993 passed in June 2009, the trustee of the scheme has the power to levy additional contributions on councils which have employees in the DBF when the actuary advises such additional contributions are payable - normally when the assets of the DBF are insufficient to meet members' benefits.
The next actuarial investigation will be made as at 1 July 2012.
The amount of superannuation contributions paid by the Fraser Coast Regional Council to the scheme in this period for the benefit of employees was: 4,961,789 5,710,149 3,506,453 4,488,626
34 Trust funds 1.34
Monies collected or held on behalf of other entities yet to be paid out to or on behalf of those entities 831,621 852,522 831,621 852,522 Security deposits 3,219,329 3,366,536 3,219,329 3,366,536 4,050,950 4,219,058 4,050,950 4,219,058
The Fraser Coast Regional Council performs only a custodial role in respect of these monies, and because the monies cannot be used for Council purposes, they are not brought to account in these financial statements. The cash is held with the Commonwealth Bank. The deposits are bearing floating interest rate.
41 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010 Consolidated Council
2010 15.5 months-2009 2010 15.5 months-2009 Actual Actual Actual Actual Note $$$$
35 Reconciliation of net result attributable to council to net cash flow from operating activities
Net result attributable to council 12,015,684 1,432,399,025 8,157,501 1,230,647,069
Non-cash operating items: Depreciation and amortisation 11 52,441,944 57,401,716 35,043,163 44,706,493 52,441,944 57,401,716 35,043,163 44,706,493 Investing and development activities: Capital grants, subsidies and contributions 4 (28,910,662) (63,872,442) (18,187,446) (27,590,602) Capital income 5 (305,468) (750,456) (309,769) (750,456) Capital expenses 12 7,043,981 7,570,058 3,781,991 5,665,191 Net gain on restructure of local government - (1,406,928,152) - (1,225,387,779) (22,172,149) (1,463,980,992) (14,715,224) (1,248,063,646)
Changes in operating assets and liabilities : (Increase) decrease in receivables 2,435,308 3,263,215 (6,077,948) 5,232,810 (Increase) decrease in inventories (excluding land) 87,155 271,579 (19,730) 170,337 Increase (decrease) in payables (9,443,050) 6,139,836 3,539,577 4,439,118 Increase (decrease) in provisions 529,469 6,424,798 624,259 4,964,273 Increase (decrease) in other liabilities (197,025) 228,158 (111,763) 117,273
(6,588,143) 16,327,586 (2,045,605) 14,923,811
Net cash inflow from operating activities 35,697,336 42,147,336 26,439,836 42,213,727
42 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
36 Council controlled entities, corporations and companies Wide Bay Water Corporation Wide Bay Water Corporation is a Local Government Owned Corporation wholly owned by the Fraser Coast Regional Council. Wide Bay Water Corporation became a corporation on 1 January 2002 in the State of Queensland under section 630 of the Local Government Act 1993 to administer water and waste water functions of Council. Wide Bay Water Corporation carries on its business at its registered address at 29-31 Ellengowan Street in Urangan. Share capital in the Wide Bay Water Corporation consists of 295,252,349 (2009: 141,589,153) fully paid ordinary shares of $1.00 each. The assets and liabilities of Wide Bay Water Corporation, in addition to its financial results are consolidated in the consolidated financial statements of the Fraser Coast Regional Council.
Other Controlled Entities Fraser Coast Regional Council controls a proprietary limited company - Widelinx Pty Ltd. Widelinx Pty Ltd was established in January 2005 to oversee the operations of a local telecommunications venture and continues to actively trade. Council resolved at its ordinary meeting held on 3 December 2008 that it continue to support Widelinx financially.
The Brolga Theatre Board Inc. is an incorporated association, the principal activity of which is to operate and manage the Brolga Theatre in the provision of a range of cultural and community activities.
Hervey Bay (Community Fund) Limited was established on 23 June 2006 to maintain and encourage private gifts of money, real and personal property and to act as the trustee for the Hervey Bay Community Trust Fund. At its meeting held on 5 May 2009, the Hervey Bay (Community Fund) Limited resolved that it be wound up effective 1 July 2009.
Hervey Bay (Cultural Fund) Limited was established on 23 June 2006 to maintain and encourage private gifts of money, real and personal property and to act as the trustee for the Hervey Bay Public Gallery Fund, the Hervey Bay Public Library Fund and the Hervey Bay Public Museum Fund. As the assets, liabilities and results of the "Other Controlled Entities" do not have a material effect, they have not been consolidated.
The assets and liabilities and results of operations of the other controlled entities (for the 12 months ended 30 June 2010) are summarised below: The Brolga Widelinx Hervey Bay Hervey Bay Total Other Theatre Board Pty Ltd (Cultural Fund) (Community Fund) Controlled Inc. Ltd Ltd Entities Income Statement $$$$$ Operating Revenue 922,288 275,037 9,215 428 1,206,968 Operational Contribution (FCRC) 399,000 - - - 399,000 Operating Expenses (1,310,817) (251,597) (6,808) (6,687) (1,575,909) Net Result 10,471 23,440 2,407 (6,259) 30,059
Balance Sheet Assets Current Assets 198,893 578,562 36,608 2,770 816,833 Non-Current Assets 20,023 1,333,277 88,418 - 1,441,718 218,916 1,911,839 125,026 2,770 2,258,551 Liabilities Current Liabilities 83,487 62,809 2,650 2,650 151,596 Non-Current Liabilities 44,462 416,667 - - 461,129 127,949 479,476 2,650 2,650 612,725
Net Assets 90,967 1,432,363 122,376 120 1,645,826
Equity Retained Surplus/Deficit 90,967 (558,639) 122,376 120 (345,176) Issued Capital - 1,991,002 - - 1,991,002 90,967 1,432,363 122,376 120 1,645,826
43 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
37 Financial instruments Fraser Coast Regional Council's activities expose it to a variety of financial risks including interest rate risk, credit risk, and liquidity risk.
Exposure to financial risks is managed in accordance with Council approved policies on financial risk management. These policies focus on managing the volatility of financial markets and seek to minimise potential adverse effects on the financial performance of the Council. The Council minimises its exposure to financial risk in the following ways:
- Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia. The Council does not invest in derivatives or other high risk investments.
- When the Council borrows, it borrows from the Queensland Treasury Corporation unless another financial institution can offer a more beneficial rate, taking into account any risk. Borrowing by the Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982.
Fraser Coast Regional Council measures risk exposure using a variety of methods as follows:
Risk exposure Measurement method Interest rate risk Sensitivity analysis Liquidity risk Maturity analysis Credit risk Ageing analysis
(i) Credit Risk Credit risk exposure refers to the situation where the Council may incur financial loss as a result of another party to a financial instrument failing to discharge their obligations.
In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts. In effect this power protects the Council against credit risk in the case of these debts. In other cases, the Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk.
The Council is exposed to credit risk through its investments with the Queensland Treasury Corporation (QTC) and deposits held with banks or other financial institutions (if applicable). The QTC Cash Fund is an asset management portfolio that invests with a wide variety of high credit rating counterparties. Deposits are capital guaranteed. Other investments are held with highly rated/regulated banks/financial institutions and whilst not capital guaranteed, the likelihood of a credit failure is remote.
The maximum exposure to credit risk at balance date in relation to each class of recognized financial asset is the gross carrying amount of those assets inclusive of any provisions for impairment. No collateral is held as security relating to the financial assets held by the Council.
The following table represents the Council's maximum exposure to credit risk:
Consolidated Consolidated Council Council Note 2010 2009 2010 2009 $$$$ Financial Assets Cash and cash equivalents 15 2,817,871 9,574,857 348,983 6,496,000 Cash investments 15 102,192,403 79,393,636 101,789,178 77,768,956 Receivables - rates 16 12,664,146 11,597,778 12,664,146 11,597,778 Receivables - other 16 8,361,920 12,237,235 9,903,802 8,213,584 Total 126,036,340 112,803,506 124,706,109 104,076,318
44 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
37 Financial instruments - continued Past due or impaired No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. The following table represents an analysis of the age of the Council's financial assets that are either fully performing, past due or impaired: Fully Past due Impaired Total Performing Less than 30 31 to 60 61 to 90 Over 90 days days days days $$$$$$$ Receivables (Council) - Accrued Grants 788,523 788,523 Interest 248,675 1,414,844 1,663,519 Sundry Debtors 1,988,020 12,794 46,261 (69,477) 1,977,598 Accrued Dividend & ITE 3,658,418 3,658,418 Rates 12,664,146 12,664,146 Fees & Charges 798,567 798,567 GST 1,017,177 1,017,177 Loan to WBWC 15,627,374 15,627,374 21,091,492 2,236,695 12,794 - 14,923,818 (69,477) 38,195,322
Receivables (Consolidated) - Accrued Grants 788,523 788,523 Interest 248,675 1,414,844 1,663,519 Sundry Debtors 3,881,073 12,794 46,261 (69,477) 3,870,651 Rates 12,664,146 12,664,146 Fees & Charges 795,417 795,417 GST 1,243,810 1,243,810 2,032,333 4,129,748 12,794 - 14,920,668 (69,477) 21,026,066
(ii) Liquidity risk Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.
The Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation for capital works.
The Council manages its exposure to liquidity risk by maintaining sufficient undrawn facilities, both short and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in the borrowings note 24
The following table sets out the liquidity risk of financial liabilities held by the Council in a format as it might be provided to management. The amounts disclosed in the maturity analysis represent the contractual undiscounted cash flows at balance date (excluding employee entitlements as defined by AASB132 Financial Instruments para 4(b)):
0 to 1 year 1 to 5 years Over 5 years Total 2010 Consolidated $$ $ $ Borrowings 15,679,222 74,025,442 168,343,817 258,048,481 Trade and other payables 16,078,973 - - 16,078,973
0 to 1 year 1 to 5 years Over 5 years Total 2009 Consolidated $$ $ $ Borrowings 48,470,186 65,133,445 122,504,514 236,108,145 Trade and other payables 25,686,674 - - 25,686,674
45 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
37 Financial instruments - continued 0 to 1 year 1 to 5 years Over 5 years Total 2010 Council $$ $ $ Borrowings 7,453,545 41,122,735 95,958,258 144,534,538 Trade and other payables 26,505,926 - - 26,505,926
0 to 1 year 1 to 5 years Over 5 years Total 2009 Council $$ $ $ Borrowings 36,547,997 34,283,284 53,985,300 124,816,581 Trade and other payables 22,766,349 - - 22,766,349
The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table.
(iii) Interest rate risk The Council is exposed to interest rate risk through its borrowings from the Queensland Treasury Corporation and investments held with financial institutions.
The risk in borrowing is effectively managed by borrowing from financial institutions which provide access to a mix of floating and fixed funding sources such that the desired interest rate risk exposure can be constructed. Interest rate risk in other areas is minimal.
The Council does not undertake any hedging of interest rate risk.
Interest Rate Sensitivity Analysis The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss should there be a 1% increase in market interest rates. The calculations assume that the rate would be held constant over the next financial year, with the change occurring at the beginning of that year. It is assumed that interest rates on overdue rates would not change. If the rates decreased by 1% the impact would be equal in amount in the reverse direction. Net carrying amount Profit Equity 2010 2009 2010 2009 2010 2009 $$ $ $$$ Financial Assets 105,010,274 88,968,493 1,050,103 889,685 1,050,103 889,685 Financial Liabilities at variable interest rates 163,489,906 137,410,426 (1,634,899) (1,374,104) (1,634,899) (1,374,104)
46 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
38 National Competition Policy
(a) Activities to which the code of competitive conduct is applied A "business activity" of a local government is divided into two categories : (a) Roads business activity: (i) the construction or maintenance of State controlled roads for which the local government submits an offer to carry out work in response to a tender invitation, other than through a sole supplier arrangement. (ii) submission of a competitive tender for construction or road maintenance on the local government's roads which the local government has put out to tender, or called for by another local government.
(b) Other business activity, referred to as type three activities, means the following: (i) trading in goods and services to clients in competition with the private sector, or (ii) the submission of a competitive tender in the local government's own tendering process in competition with others for the provision of goods and services to itself. Excluded activities are (a) library services, and (b) an activity or part thereof prescribed by legislation.
Local government may elect to apply a Code of Competitive Conduct (CCC) to their identified business activities. This requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity. The application of the CCC to the roads business activity is compulsory.
The CSO value is determined by Council, and represents an activities cost(s) which would not be incurred if the activities primary objective was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO's by the Council. Notwithstanding CSO's, the council is committed to operating these activities as business activities in accordance with the CCC.
Building Certifications Caravan Parks Solid Waste Management Airports Workshop and Plant Hire Aquatic Centre
The following table summaries the financial results for these, including competitive neutrality adjustments if applicable. Full information is available for inspection at the council offices.
47 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
38 National Competition Policy - continued (b) Financial performance of activities subject to competition reforms: Building Certifications Caravan Parks Solid Waste Management 2010 2009 2010 2009 2010 2009 $$$$$$ Revenue for services provided to the Council - - - Revenue for services provided to external clients 716,890 886,319 2,424,990 2,881,664 15,377,998 15,315,613 * Community service obligations - - - 716,890 886,319 2,424,990 2,881,664 15,377,998 15,315,613 Less : Expenditure 588,425 827,037 1,361,945 1,565,161 11,803,392 15,235,843 Surplus (deficiency) 128,465 59,282 1,063,045 1,316,503 3,574,606 79,770
Airports Workshop and Plant Hire Aquatic Centre 2010 2009 2010 2009 2010 2009 $$$$$$ Revenue for services provided to the Council - 8,154,209 6,153,559 - Revenue for services provided to external clients 1,712,833 2,473,393 260,236 1,298 682,279 787,622 * Community service obligations 931,000 600,000 - 682,279 644,221 2,643,833 3,073,393 8,414,445 6,154,857 1,364,558 1,431,843 Less : Expenditure 2,911,418 3,009,165 6,278,175 4,671,206 1,208,882 1,431,232 Surplus (deficiency) (267,585) 64,228 2,136,270 1,483,651 155,676 611
Fraser Coast Water 2010 2009 $$ Revenue for services provided to the Council - Revenue for services provided to external clients - 12,568,341 * Community service obligations - 42,951 - - 12,611,292 Less : Expenditure - 17,326,357 Surplus (deficiency) - (4,715,065)
(c) CSO's were paid during the reporting period to the following activities.
Activities CSO description Actual
Airports The Council has identified that a Community Service Obligation (CSO) 931,000
should be implemented in regard to airport operations. The objective of this
is to foster tourism economic development in the local authority
area. This objective is consistent with the adopted Corporate Plan. The
pricing structure for airport landing fees are currently not based on real
commercial rates, but rather kept comparable to other Queensland regional
airports with the objective of promoting tourism and economic development
within the city.
Aquatic Centre The Council recognises the importance of providing community recreation 682,279
and sporting facilities such as the Aquatic Centre. The provision of the
service is consistent with the provision of Hervey Bay as a healthy city.
48 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
39 Correction of errors
(a) Fraser Coast Regional Council
Following the amalgamation of Maryborough City Council, Hervey Bay City Council, Woocoo Shire Council, and divisions 1 and 2 of Tiaro Shire Council, the asset register software containing the former Maryborough City Council's Water and Sewerage infrastructure assets was changed. As a result, when the assets were transferred to the new asset register software, outdated useful lives were included, which caused the subsequent calculation of depreciation expense to be overstated.
In addition, an indexed revaluation was undertaken as at 30 June 2009, which as a result of the above error caused the revaluation increment of the Water and Sewerage Assets to be understated.
As this error was made in the prior comparative year, the following amounts as at 30 June 2009 have been restated.
Corrected Actual Actual 2009 Correction Income Statement Extract 2009 Expenses Depreciation and amortisation 48,815,074 (4,108,581) 44,706,493 Total expenses 150,791,386 (4,108,581) 146,682,805 Net result attributable to Council 1,226,538,488 4,108,581 1,230,647,069
Balance Sheet Extract Non-current assets Property, plant and equipment 1,226,770,527 4,310,450 1,231,080,977 Total assets 1,480,021,448 4,310,450 1,484,331,898 Net community assets 1,386,595,923 4,310,450 1,390,906,373 Equity Council capital 1,152,849,438 4,108,581 1,156,958,019 Asset revaluation reserve 160,057,435 201,869 160,259,304 Total community equity 1,386,595,923 4,310,450 1,390,906,373
Statement of Changes in Equity Extract Retained Surplus Net result attributable to Council 1,226,538,488 4,108,581 1,230,647,069 Transfers to/from capital 109,747,776 (4,108,581) 105,639,195 Asset revaluation reserve Revaluations - property, plant and equipment 160,057,435 201,869 160,259,304 Balance at end of period 160,057,435 201,869 160,259,304 Council capital Transfers to/from capital (72,538,341) 4,108,581 (68,429,760) Total transfers 1,152,849,438 4,108,581 1,156,958,019 Balance at end of period 1,152,849,438 4,108,581 1,156,958,019
49 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
39 Correction of errors (continued)
(b) Wide Bay Water Corporation
In the process of valuing the Wide Bay Water Corporation's assets at 30 June 2010, the following errors were corrected. As required by Australian Accounting Standards, the errors have been corrected by adjusting the opening balances as at 1 July 2008 and the comparative amounts for 2008/09.
Recognition of prior period assets
WBWC discovered certain infrastructure assets identified for the first time in 09/10, which had not been previously recognised, and passive assets whose attributes had been corrected which resulted in a change in value. These related to assets constructed by WBWC in prior periods and also assets contributed by developers in prior periods.
For WBWC constructed assets, an adjustment of $1.964M was recognised to the opening balances of infrastructure assets and a corresponding adjustment of $261,158 was recognised to opening accumulated depreciation.
For developer contributed assets, an adjustment of $2.591M was recognised to the opening balances of infrastructure assets and a corresponding adjustment of $64,921 was recognised to the opening accumulated depreciation.
Year ended As at 30-Jun-09 1-Jul-08 Total WBW constructed assets Increase (decrease) in property, plant and equipment 1,799,272 164,878 1,964,150 (Increase) decrease in accumulated depreciation (259,225) (1,933) (261,158) (Increase) decrease in deferred tax charge to ARR (462,014) (48,883) (510,897) Increase (decrease) in equity (asset revaluation reserve) 1,078,033 114,062 1,192,095
Developer contributed assets Increase (decrease) in property, plant and equipment 491,185 2,099,508 2,590,693 (Increase) decrease in accumulated depreciation (54,746) (10,175) (64,921) (Increase) decrease in deferred tax charge to Retained Earnings (130,932) (626,800) (757,732) Increase (decrease) in net results to WBW 305,507 1,462,533 1,768,040
(c) Consolidated error Consolidated Surplus for period reported 2009 1,425,602,016 FCRC Depreciation adjustment 2009 4,108,581 WBWC Constructed and contributed assets 2008 2,252,278 WBWC Contributed assets 2009 436,439 WBWC Asset revaluation surplus 2009 (289) Restated surplus for period 1,432,399,025
Asset revaluation surplus reported 2009 231,700,540 WBWC Constructed assets 2009 1,540,047 FCRC Asset revaluation surplus 2009 201,869 Restated asset revaluation surplus 233,442,456
50 FRASER COAST REGIONAL COUNCIL
Notes to the Financial Statements For the year ended 30 June 2010
40 Transfer of water business
On 15 July 2009, Fraser Coast Regional Council passed a resolution in which from 1 July 2009, the Fraser Coast Water business unit of the Fraser Coast Regional Council be transferred to Wide Bay Water Corporation. The resolution stated that, Wide Bay Water Corporation, being the successor in law to Fraser Coast Regional Council as the party which owns and operates the water supply and sewerage business previously known as Fraser Coast Water, for each contract or legal instrument relating to the business of Fraser Coast Water to which Fraser Coast Regional Council is a party, Wide Bay Water Corporation is taken to be a party to the contract or instrument instead of Fraser Coast Regional Council.
In addition, existing employees of the business of Fraser Coast Water be transferred to Wide Bay Water Corporation on the same terms and conditions as applied to their employment immediately prior to transfer.
At its ordinary meeting of 27 January 2010, Council resolved (subject to adjustments identified subsequent to the meeting) that the assets and liabilities of the business of Fraser Coast Water be transferred to the local government owned corporation Wide Bay Water Corporation at 30 June 2009 book values, as listed below. The consideration for the transfer of the assets and liabilities was resolved to be the issue by Wide Bay Water Corporation to Fraser Coast Regional Council of fully paid shares to the equivalent value of the net amount of the assets and liabilities being $153,663,196 (refer note 18).
Current Assets Cash assets and cash equivalents 2,928,866 Trade and other receivables 190,437 Inventories 1,506,117 4,625,420 Non-current Assets Property, plant and equipment 166,520,873 166,520,873 TOTAL ASSETS 171,146,293
Current Liabilities Provisions 708,574 708,574 Non-current Liabilities Provisions 38,067 Borrowings 16,736,456 16,774,523 TOTAL LIABILITIES 17,483,097
NET ASSETS 153,663,196
Equity Investment in capital assets 140,447,742 Asset revaluation surplus 9,976,525 Other reserves 3,238,929
TOTAL EQUITY 153,663,196
51 52 53 54 A lifestyle for everyone
I love the Fraser Coast for the climate. The people are friendly and hospitable and one is always greeted with a smile, even from strangers. The shopping is great with lots of choices. The parks and gardens are always maintained with plenty of activities for young and old alike. I love living here! L Nebel, resident
The simplicity of our lifestyle in this semi urban setting fills me with contentment. Life can be so complicated; perhaps if we stop, look and listen, our Fraser Coast has something for everybody in its beauty all around us in our daily lives. There is so much of interest to do here that we have it all. W Rylatt, resident
Living on the Fraser Coast! Why wouldn’t you? Leisure, lifestyle and affordability in an area which has the perfect climate and beautiful things to see. Our children are safe and happy and we enjoy the community lifestyle. B White, resident FEEDBACK
If you have a comment or question about this Annual Report, here’s how to contact us:
Write: Organisational Services Fraser Coast Regional Council PO Box 1943, Hervey Bay Qld 4655
Web: www.frasercoast.qld.gov.au
Email: [email protected]
Phone: 1300 79 49 29
Fax: (07) 4197 4455