2019-20 Annual Report Connect. Innovate. Diversify. Gladstone Regional Council would like to acknowledge the traditional custodians of this land, the Byellee, the Gooreng Gooreng, the Gurang and the Taribelang Bunda people.
We pay respect to their Elders past, present and emerging.
We would also like to extend that respect to other Aboriginal and Torres Strait Islander people in our region. Table of Contents
Our Report ...... 5 Our Finances ...... 125 About Our Report ...... 7 Financial Statements Table of Contents ... 127 How to Read Our Report ...... 7 Statement of Comprehensive Income ...... 128 Mayor’s Message ...... 8 Statement of Financial Position ...... 129 CEO’s Message ...... 9 Statement of Changes in Equity ...... 130 Our Charter ...... 10 Statement of Cash Flows ...... 132 Performance Overview ...... 11 Notes to the Financial Statements ...... 133 GRC Awards ...... 13 Financial Overview ...... 14 Additional Statutory information ...... 199 Community and Customer Highlights ...... 15 Beneficial Enterprises...... 201 Region Highlights ...... 15 Significant Business Activities...... 201 Significant Events...... 16 Public Benefit...... 201 Highlights ...... 18 Commercial Business unit ...... 201 Challenges ...... 20 Joint Government Activity ...... 201 Looking into Next Year ...... 24 Invitation to Change Tenders ...... 202 Our History ...... 26 List of Registers ...... 202 Concessions for Rates and Charges ...... 203 Our Team ...... 29 Competitive Neutrality Complaints ...... 203 Our Council ...... 31 Right to Information ...... 204 Councillor Profiles...... 31 Governance ...... 36 Appendices ...... 207 Statutory Information ...... 37 Glossary of Terms ...... 209 Our Organisation ...... 43 List of Acronyms and Abbreviations ...... 211 Organisational Structure ...... 43 List of Figures and Tables ...... 212 Our Governance ...... 44 Legislative Index ...... 214 Internal Audit Report ...... 45 Get in Touch ...... 218 Our Leadership ...... 47 Feedback Form ...... 219 Executive Profiles...... 47 Index ...... 220 Statutory Information ...... 49 Our People ...... 50
Our Performance ...... 53 Strategic Planning Framework ...... 55 Corporate and Operational Plans ...... 56 Performance Reporting ...... 57 Strategic Goal Performance ...... 58 Community Financial Report ...... 110 Budget Funding Snapshot ...... 112 Financial Performance Snapshot ...... 113
Through partnerships Council strengthened community connections.
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OUR REPORT Page 5 This section of the report outlines information about our region, gives you a sense of our budget, operating model, strategic plan, as well as provides highlights of our performance and financial position for the year 2019/20. It also shares some of our top highlights and challenges for the year along with what we are looking forward to next year. OUR REPORT Page 7 . It is a Local Government Act 2009 Local Government includes additional facts and data to give context to includes additional facts and data are embedded within this report to improve your experience. The Table are embedded within this report to sets the tone of the document providing a sense of how the year unfolded Our Report sets the tone of the document providing through achievements and challenges. Our Team profiles our Councillors and our people. and strategic goals. Our Performance examines the year’s planning, reporting statements. Our Finances lays out Council’s detailed financial Additional Statutory Information Council processes. terms, acronyms, abbreviations and Appendices assists in understanding and interpreting data. Interactive Links links to more of Contents is interactive and will direct readers to the content. Additional information, and supporting material, can be identified by these icons. key reporting tool informing the community and stakeholders about Council’s performance, about Council’s and stakeholders the community tool informing key reporting against year. These areas are measured challenges during the 2019/20 financial achievements and has This report will explain how Council in the Operational Plan and Budget. objectives set out its and the community, to explore with industry, other levels of government used partnerships a balance of lifestyle and opportunity. Innovate. Diversify.’ and to achieve vision to ‘Connect. and has engaged with residents, business year’s report is Partnerships. Council The theme for the can be together, where opportunities to develop an empowered region political representatives challenges. economic growth and meet future generated to boost How to Read Our Report How to Read Our Report This report is divided into six sections: 1. 2. 3. 4. 5. 6. 7. About Our Report Our Report About under the requirement Report is a legislative The Annual We are committed to balancing our region’s lifestyle and opportunity. OUR REPORT Gladstone RegionalCouncil and FamiliesPrecinct. on thePhilipStreetCommunities Progress continuestobemade drought acrossQueenslandsawusbuild Continuing dryweatherleadingtoamajor met regularly. project inearlyJanuarywithmilestonesbeing regional socialservices.Workbeganonthe levels ofgovernmenttoprovidecritical, partnering withcommunitygroupsandother Precinct isagoodexampleofCouncil The PhilipStreetCommunitiesandFamilies piece ofwork,programorevent. community atthecentreofeveryplanned in theOperationalPlan,weplaced In workingonstrategicprioritiesoutlined development andjobcreation. seek newfundingsourcesforeconomic efficiencies forourratepayers,aswell service andotherCouncilpracticestoachieve We continuedtoenhanceourcustomer Aquatic RecreationCentreproject. the foreinprogressingBoyneTannum community engagementwhichcameto This wasachievedthroughincreased residents. best economicandlifestyleoutcomesfor other levelsofgovernmenttodeliverthe groups inthecommunity,industryand strong partnershipswithexistingandnew Mayor’s Message 2019/20 AnnualReport We wantedtobuild customers. ratepayers and Gladstone Region’s for thebenefitof Innovate. Diversify.’ vision to‘Connect. implement itsnew Council continuedto During 2019/20, resilient. these difficulttimesandbecomeevenmore be establishedintheyearahead,tomanage benefit fromexistingandnewpartnershipsto I amconfidenttheGladstoneRegionwill is available. defeat thisongoingthreat,untilasafevaccine leaders stressed,weallmustworktogetherto level, butaspolitical,communityandmedical COVID-19 hasdisruptedeveryoneatsome health, ourdailyroutinesandeconomy. came alongin2019/20toimpactour smaller centresin2018/19,aviralpandemic After bushfireschallengedsomeofour benefits. partnership willhavelastingcommunity A casestudyinthisreportoutlineshowthat program. water consumptionthroughaWaterWise residents whodramaticallyreducedtheir connected, informedandinnovatedwith manage adwindlinglocalwatersupply.We the MiriamValecommunitywhichhadto another proactivepartnership;thistimewith Page 8 OUR REPORT Page 9 work so we could continue essential service essential service could continue work so we ensured a Committed teamwork delivery. to working from home for smooth transition while others continued most of our people, usual. essential roles as community focus during We continued our additional assistance this time by providing organisations to help them to not for profit forum for residents to recover and an online stay connected. community focused A more inclusive and is now embedded across engagement style such as the organisation in dealing with issues Vale post-bushfire communities, the Miriam Philip water shortage and projects like the Street Communities and Families Precinct. achieving There was further internal focus on a strong safety culture and providing employees with a say on our organisation Survey. through an Employee Engagement Our people are at the core of everything how we do and are best placed to suggest we can improve. As 2020 began, I asked our people to be pragmatic and realistic the use about what they could deliver and these of available resources. By applying it easier principles, I believed it would make Council for our community to interact with more effectively. energy During the year ahead, we will need as and determination as an organisation, individuals and as a regional community, to recover and renew after an unrelenting year. It is a challenge we need to meet for future generations. Our organisation Our organisation to continued transform throughout the year but we did not lose sight of the community’s ongoing recovery from bushfires. Partnerships, both internal and external, in featured strongly 2019/20 Annual Report CEO’s Message CEO’s how we approached the year. how we approached 2019/20 was challenging for our people drought and the region, from the prolonged through to the COVID-19 health emergency. the I was proud to see planning begin for delivery of our next Reconciliation Action Plan (RAP) – Innovate. This is the second and of four plans to enhance connections and partnerships with our region’s Aboriginal Torres Strait Islander community. to Water restrictions were introduced several local government areas throughout of Miriam Queensland, including the township daily Vale. The community had to reduce with water usage, so Council actively engaged residents at public meetings and information campaigns about measures to take. flowed This successful Water Wise initiative campaign education wider regional a into over about what and conversations with our region water meant to everyone. When COVID-19 emerged as a threat to our health, work routines, family and community connectedness, the organisation worked quickly to change workplace practices and ultimately, how and where our people would Gladstone Regional Council OUR CHARTER Gladstone Regional Council’s charter defines who we are, what we do and guides how we work.
OUR REPORT VISION CONNECT. INNOVATE. DIVERSIFY.
MISSION We are Gladstone Regional Council, working together to balance our Region’s lifestyle and opportunity.
VALUES Safe We are uncompromising in our commitment to safety, which is reflected in our attitude, our decisions and our actions.
Ethical We operate with transparency, openness and accountability at the fore. Responsive We respond by being present, proactive and solutions-focused, and we deliver on our commitments. Visionary We plan as future-thinkers and opportunity seekers and we have the courage to shape a better future for our community. Inclusive We create and value diversity and we actively demonstrate our commitment to equality and inclusivity. Community We care about each other and our environment and we recognise that community is the core of our business. Efficient We deliver; we challenge the status quo and we continually find better ways to reduce cost and improve services.
Gladstone Regional Council 2019/20 Annual Report Page 10 OUR REPORT Page 11 targets are met on PERFORMANCE Monitor: occasion but not consistently Below target: targets are rarely met Complete: All activities and the project have milestones within expected been achieved. The accomplished. outcome has been The project is finished. Not Complete: Activities and outcomes were not delivered in full. This includes projects where an item is deemed no longer relevant and/or decisions have been made to cease the project. On track: targets are being met or exceeded SCORECARD DEFINITIONS PROJECTS KPIs
Innovate 35 projects, 4 KPIs Diversify 17 projects, 4 KPIs Connect 50 projects, 8 KPIs 2019/20 Annual Report Delivering the Operational Plan projects Delivering the Operational Plan year is The Operational Plan for the 2019/20 well as presented in an overall summary as from broken down by each vision intention our Corporate Plan. Detailed performance is outlined within each of the nine strategic goals and shown in the Performance Reporting section, page 53. Performance Overview Performance Plan Vision the Corporate Delivering presented a Operational Plan The 2019/20 and 16 Key Performance total of 102 projects delivered on the three Indicators (KPIs) which Council’s 2018-2023 vision intentions from Corporate Plan. Council is focused on delivering on our vision. Gladstone Regional Council Performance Overview
Our delivery on the 2019/20 Operational Plan
OVERALL PROGRESS - Projects OVERALL PROGRESS - KPI OUR REPORT 25% 36%
56% 64% 19%
Complete Not Complete On track Monitor Below target
OVERALL PROGRESS - Connect OVERALL PROGRESS - Diversify
24% 44% 56% 76%
Complete Not Complete Complete Not Complete
OVERALL PROGRESS - Innovate 5-YEAR SUMMARY OF COMPLETED OPERATIONAL PLAN PROJECTS
87% 87% 31% 82%
64% 69% 46%
Complete Not Complete 2015/16 2016/17 2017/18 2018/19 2019/20
Gladstone Regional Council 2019/20 Annual Report Page 12 OUR REPORT Page 13
LUMINOUS 2019 Council’s Luminous event was awarded the Queensland Event of the Year 2020 at the QLD Parks and Leisure Australia Awards. 2019/20 Annual Report The Judges’ Choice Award, 2019 Best in Business Awards, Tondoon Botanic Gardens’ team of volunteers. Gladstone Regional Council Awards Council Regional Gladstone Gladstone Regional Council Financial Overview Total asset value has risen by $243.7M to $2.5B Delivering on the budget since 30 June 2019. Where did Council’s income come from? Operating deficit$2.7M (last year operating surplus $10.2M) OUR REPORT and an operating surplus ratio of General rates and -1.37% (last year service charges 75% 5.07 per cent).
Information relating to measuring financial sustainability is presented over a five year period to illustrate Fees and trends in Council’s performance charges 11% Council is in a sound financial position at 30 June 2020:
Council has a 3.12:1 Council’s low debt levels have resulted in an (last year 4.47:1) Operating grants and improved debt to equity working capital ratio. (debt as a percentage contributions 6% This is the ratio of of community equity) current assets available percentage of 4.71% to meet current liability (last year 5.72%). obligations.
Sales revenue 3% Net financial liabilities ratio (total liabilities less current assets as a percentage of operating revenue) of 4.87% (last year 1.04%) due to the early repayment of loans. The ratio indicates that Council has a significant capacity to borrow—if and as required. Other recurrent revenue 3% Capital works financial completion 60% (target 90%).
Our interest-bearing debt has Interest 2% decreased by $56.5M over the past five years.
Gladstone Regional Council 2019/20 Annual Report Page 14 Community and Region Highlights Customer Highlights Our Region OUR REPORT 2442 year 7-10 students received Size 10,489km2 vaccinations. Due to COVID-19 and Roads 560km (bitumen seal) school closures vaccination numbers are down compared to previous Coastline and estuaries 150km years. Catch up clinics are being Wetlands 254km2 coordinated. Nature, conservation, forestry and 161 enquiries relating to new parkland 16% of region licensable businesses. Rateable properties 32,460 Gross Regional Product $5.60B (2019) (1.59% of Gross State Product) During 2019/20 $26,120,998 of funding was approved to fund 46 projects. Our community Population 63,412 (2019 est) Population growth 0.72% In September and December, 16,000 pieces of rubbish were collected Median Age 35 from Drain Buddies in different Population under 15 years Gladstone locations. Cigarette butts 22.7% (2016) were the most dominant form of litter found. Couples with children 30.5% (2016) Population born overseas A record 1200 visitors attended 14.4% (2016) the third annual Tondoon Bonsai Exhibition held at the Gladstone A year in the Gladstone Region Tondoon Botanic Gardens during the year. New residents 433 (2019 est) Residential dwelling approvals 88 176 Customer Service Requests Residential dwelling sales 894 referenced COVID and 147 referenced Bushfire recovery. Median sale price $285,000 Registered businesses 3701 (2019)
57.6 Community Sentiment Score.
Over 100,000 interactions across customer relations. 108 community groups from across the Gladstone Region responded to Council’s Gladstone Region Rise Up funding initiative to help with recovery from 21 seconds average time to the COVID-19 health emergency. answer a call.
Council’s Local Laws Officers have been able to save 127 hours of their time per year using mobile devices Our Gladstone Region launched to connect our to complete paperwork, instead of community with events, community interest having to return to the office. discussion and good news.
Gladstone Regional Council 2019/20 Annual Report Page 15 Significant events 2019 6 September A Changing Places® Restroom was installed 1 July at Gladstone’s Lions Park to meet the needs New GRC website launched of community members who cannot use standard toilets 7-14 July NAIDOC Week celebrations 21 September Under the Trees Music Festival – Boyne Island 8 July OUR REPORT Council brings online a new 10ML All abilities Beach Access Day held at Tannum Hetherington water reservoir at South Sands as part of Disability Action Week Gladstone featured the Mobi-Chair Floating Beach Wheelchair 13-14 July Our award winning lighting event, 28 September Luminous, was held over two nights National Rugby Championships and drew a crowd of 12,000 13-20 October 17 July The inaugural Sport and Active Living Council budget introduced to our Festival was held to celebrate and community to connect, innovate and enhance sport and recreation within diversify our region the region 20 July 19 October Councillors and Council employees 44th Rio Tinto Martin Hanson attend the first community Memorial Art Awards engagement pop-up, Conversations with Council, at Stockland Gladstone 19 and 20 October Shopping Centre Council supported the Garage Sale Trail initiative 27 July Pre-season exhibition match between 20 October the Brisbane Roar A-league team and Council hosted the inaugural a Gladstone select side at Gladstone Biondello Bolt mountain run Coal Exporters Sports Complex (Marley Brown Oval) 2 November Gladstone PopCon 2019 1 August Launch of online engagement platform, 8 November Conversations Tondoon Botanic Gardens wins Judges Choice Award at 2019 Best in Business Awards 2 August Queensland Symphony Orchestra ‘Under the 14 November Stars’ at GPC’s Marina Parklands Council joins National Welcoming Cities Network to foster social 7 August cohesion Council starts to work with Miriam Vale to identify water saving initiatives 29 November as part of a Drought Management Mayor launches Gladstone Region Plan Drought Appeal 17 August 1 December To celebrate Seniors Week 2019 Council Christmas Street Party in Gladstone held close to 90 events across the region Library Square 1 September 21-22 December A record breaking 1200 visitors attended the Pop-up community hub helps impacted Gladstone Multicultural Festival and third bushfire residents at Mount Maria Annual Bonsai Exhibition, making it the largest attendance at an Australian Bonsai exhibit 31 December 1 September Council hosts the first New Year’s Eve event in 20 years A water reduction target was introduced to help Miriam Vale manage its dwindling water supply Gladstone Regional Council 2019/20 Annual Report Page 16 Significant events 2020 27 March Miriam Vale township returns to using its 9 January
Baffle Creek water source OUR REPORT Site clearing begins for Stage 1 of the Philip Street Communities and 28 March Families Precinct Local Government Election 10 January 31 March Council launches Gladstone Region Council implements Business Continuity Plan Recreational Vehicle (RV) Strategy to grow to ensure essential services during COVID-19 market potential health emergency 12-18 January 7 April Festival of Summer for 11-17 year Gladstone Region Rise Up funding olds debuts initiative announced 17 January 14 April Marley Brown Oval hosts Queensland Mayor and Councillors sworn in after Reds against Melbourne Rebels in 28 March election Super Rugby pre-season match to aid local farmers during drought 22 April Philip Street Communities and Families 26 January Precinct reaches first construction milestone Australia Day Family Fun Day, Citizenship Ceremony and Australia Day Awards 24 April Council encourages ‘Light Up The Dawn’ 27 January services for ANZAC Day Celebrate Australia Primary School Art Competition winners announced 28 April Council started livestreaming its 5-22 February General Council Meetings Community Investment Program roadshow visits regional centres 30 April Council seeks community input for Our Coast 17 February Our Future project involving the long-term First meeting of new Gladstone Region Youth management of the region’s coastline Council 7 May 20 February Council launches a Virtual Neighbourhood Our Gladstone Region social media Centre to keep communities (six regional channel launched libraries, Gladstone Entertainment Convention Centre, Gladstone Regional Art 7 March Gallery and Museum and Neighbourhood Gladstone City Library launches Centre) connected during the COVID-19 community garden lockdown 7-15 March 27 May–3 June Parks Week Council celebrates 20th anniversary of National Reconciliation Week 9 March Council welcomes 20 new apprentices and 4-10 June trainees in annual intake Virtual Ecofest, themed ‘Biodiversity’ 9-14 March 12 June Combined Schools Musical - The Site chosen for Boyne Tannum Aquatic Wizard of Oz Recreation Centre 23 March 21 June COVID-19 restrictions come into force Work starts on Goondoon Street road and throughout the Gladstone Region footpath upgrades 24 March Special Council meeting approves $1M COVID-19 support package
Gladstone Regional Council 2019/20 Annual Report Page 17 OUR REPORT Gladstone RegionalCouncil meaningful relationships. We arecommittedtofostering Owners/Custodians oftheLandrepresent with AcknowledgementoftheTraditional and includingformalWelcomestoCountry at theCouncilchambersinGladstone’sCBD the AboriginalandTorresStraitIslanderflag Reconciliation WeekandNAIDOCWeek,flying Annual celebrationssuchasNational draw onintheRAP. community participationandengagementto We arepleasedtohaveahistoryof successful reconciliation. and TaribelangBundapeoplesachieving with theByellee,GoorengGooreng,Gurang about developingstrong,lastingrelationships Council’s ReconciliationActionPlan(RAP)is social, culturalandspiritualimportance. The GladstoneRegionisanareaofgreat Reconciliation ActionPlanProgresses Highlights 2019/20 AnnualReport • included: Events andachievementsduringtheyear could berealisedinthefuture. effective andmutuallybeneficialinitiatives strengthening existingrelationshipsso 2019/20, Councilwascommittedto In implementingourReflectRAPduring Torres StraitIslanderpeople. sustainable opportunities,forAboriginaland and respect,aswellthecreationof build opportunitiesformeaningfulinteraction engagement andsupportcontinuedto The RAPforthisyearfosteredanewlevelof some ofourannualreconciliationefforts. Reconciliation Week. Elders MorningTeaduringNational Council hostingitsfirstreconciliation Page 18 OUR REPORT Page 19 an insight into cultural heritage, cultural an insight into cultural title in the region. awareness and native of ‘Welcome Approval for the installation Coast Country’ to Port Curtis Coral the Gladstone road entry signs within from the State Region. Funding came for Queensland Government’s Works funding allocation. forward to next year Council is looking when we implement the Innovate RAP which will outline actions that work vision towards achieving Council’s unique for reconciliation. • • 2019/20 Annual Report Becoming a member of Supply Nation – Becoming a member in supplier diversity. the Australian leader the largest national It brings together and Torres Strait database of Aboriginal with the procurement Islander businesses leading organisations teams of Australia’s create relationships to help them engage, and do more business. an Performing, as a minimum, to Country at Council Acknowledgement events and sponsored events where appropriate. Employees are encouraged to perform an Acknowledgement to or Country at non-official Council events where appropriate. A video for Council’s Corporate Inductions was developed, featuring Port Curtis Coral Coast First Nations People giving • • • Gladstone Regional Council Challenges Coping with COVID-19
On 3 March 2020, as the Novel Coronavirus The next challenge was to look at how staff (COVID-19) cases increased around Australia could work remotely so we could continue to amid a world-wide pandemic, Gladstone maintain critical functions for the community Regional Council’s CEO, Leisa Dowling, issued such as roads, water, waste, sewerage and what would be the first of many Employee cemeteries. OUR REPORT Bulletins. The Strategic Information, Communications Council practiced due diligence by activating and Technology (ICT) team began investigating an Incident Management Plan to support the organisation’s remote access capability employees and the community in minimising and what our future needs would be to risk. enable 300 people to set up a home office.
The plan focused on preparation, action and Circumstances were changing every day recovery. as the pandemic progressed which meant complex decisions had to be made. The preparation phase included: On 23 March, the Federal Government • Business continuity planning and announced different types of businesses, identifying critical services where there was regular human contact, would have to close. • Identifying key resources and successors The following day, a special Council meeting • Providing accurate information for approved a $1million Novel Coronavirus employees and their families. (COVID-19) support package to assist Council used reliable information sources residents, businesses, sporting and such as the Australian Government community groups in the Gladstone Region to Department of Health website and the latest navigate these circumstances. advice from Queensland Health to advise its It contained: employees and the community about the virus - how it spreads, symptoms, risk factors • Rent concessions for Council-leased and what to do if you contracted the highly commercial facilities contagious disease. • Six-month food licence extensions Behind the scenes, the Incident Management • Six-month trade waste licence extensions Team made decisions and communicated to staff about: • Effective freezing of interest on outstanding rates and charges • COVID-19 related staff leave • Financial support for sporting and • When to call a special Leave Hotline community groups.
• Reducing face to face interactions, Council’s CEO, Leisa Dowling, said the meetings and practising ‘social distancing’ package would help stabilise and support the Gladstone Region during a time of economic • Setting up a dedicated internal uncertainty. information portal By late March a Remote Working Standard • Establishing a Q&A mailbox and team for had been developed. employees to email specific questions to A detailed framework was now in place to • Following strict hygiene practices enable many staff to safely move to their • Developing an internal and external home-based offices while others remained in communication strategy to keep everyone central locations. informed Considerable work was done to support • Closing non-essential facilities. employees, so the focus turned to a new community program to provide financial
Gladstone Regional Council 2019/20 Annual Report Page 20 OUR REPORT Page 21 Minimal movement between sites Minimal movement using fob devices Tracking movement distancing Maintaining social Adhering to reduced capacity of common areas Hand washing and sanitiser use Cleaning meeting rooms after use. By mid-June, as the number of COVID-19 By mid-June, as the declined, plans were cases had significantly employees to return put in place for Council to buildings and offices. These plans involved: • • • • • • staff In three and a half months, both Council along and the Gladstone Region community, the initial with the rest of Australia, had faced pandemic. challenges posed by the COVID-19 dealing Everyone’s resilience was tested in with them. A path to recovery had begun. 2019/20 Annual Report help for not-for-profit community, sport and help for not-for-profit recreation groups. Region Rise Up On 7 April, the Gladstone It was designed to initiative was launched. organisations recover after assist grass roots successful per $5000 to up offering COVID-19, application. nationwide lockdown In early May, as the wanted to re-establish continued, Council connectedness that a sense of community like had been lost with the closure of facilities Gallery libraries, the Gladstone Regional Art and Museum , Gladstone Entertainment Convention Centre and Neighbourhood Centre. A Virtual Neighbourhood Centre was people to launched to provide somewhere for come together online to find out information, and connect with like-minded residents support each other. programs It was also a way of bringing Council in and other community services to people their own homes. Council continued to provide essential services to the community. Gladstone Regional Council OUR REPORT Gladstone RegionalCouncil water supplyissue. with Counciltoovercometheir Miriam Valeresidentspartnered It alsobegantoworkwithresidentsintown source fortheMiriamValecommunity. started lookingforamoresecurewater supply hadreducedtoalevelwhereCouncil In earlyAugust,BaffleCreek’srawwater manage theregion’swatersupply. Management Planon12Julytoeffectively Council implementeditsDrought the ground-lowestrainfallsince2001. on 1Mayandbyyear’sendonly477.2mmhit The GladstoneRegionwasdroughtdeclared of 277.6mm. for Australiawithanationallyaveragedrainfall 2019 wasthehottest,driestyearonrecord Miriam Vale-thetownthatalmostrandry Challenges 2019/20 AnnualReport use. Treatment Plantforthecommunity’sdaily was truckedintotheMiriamValeWater During thetestingperiod,additionalwater reliability. it hadtobetestedforquality,safetyand supply. Analternativesourcewasfoundbut supplement MiriamVale’sexistingwater Several solutionswereexaminedtosafely thoughts andideas. know whatwashappeningandtoheartheir officers raninformationsessionstoletpeople Public meetingswerecalledwhereCouncil and beyondtoidentifywatersavinginitiatives. Page 22 OUR REPORT Page 23 This was a genuine partnership of Council This was a genuine together and and community working water use to achieve a being conscious of for the future. sustainable supply Council advised Baffle On 27 March 2020, water to the Creek was again supplying Treatment Plant, so the Miriam Vale Water could finish. trucking of water to support the community Council continues together, through an education program and, they are identifying water saving initiatives. resilience A partnership based on education, and hard work had succeeded. 2019/20 Annual Report To effectively manage the local supply, water To effectively manage were introduced on 1 reduction targets September. per person per day for A target of 125 litres was set, and where all residential properties to be considered, variations other factors had case by case basis. were allowed on a in saving water with The residents excelled low levels of usage, the town quickly recording kept while weekly water meter readings doing. everyone informed how they were their daily Knowing just one simple change in usage, routine would help reduce total water their residents worked to successfully meet targets. Gladstone Regional Council OUR REPORT Gladstone RegionalCouncil our community. activity andoutcomesfor We arefocusedondelivering The focuswillcreatevisibilitytoourcore manageable withinthecontextofyear. plan isfocusedonourcommunityand approach totheOperationalPlan.The In 2020/21,Councilhaschangedour What willwedoaboutthis? the OperationalPlanbeingcompleted. again experiencedwithonly64percentof over promisingandunderdeliveringwas 2019/20 OperationalPlan,thebehaviorof Plan wascompleted.Whensettingthe In 2018/19,46percentoftheOperational • • • • year planCouncildetermined: After twoyearsofoperatingunderthefive- year OperationalPlandraftedtosupportit. adopted in2018therewasalsoasolidfive- When thecurrentCorporatePlanwas Creating apracticalOperationalPlan Looking intoNextYear community. spent deliveringcoreservicestoour to the80-90percentoftimethatis There waslimitedrecognitiongiven under delivering It setupacultureofoverpromisingand day-to-day activityinapracticalway capture themixofresourcesandtypical Worthwhile activityexistedbutdidnot It wasoptimisticandaspirational 2019/20 AnnualReport • Operational PlanItemsandStrategies: several strategiesandkeyworkplanitems. the year.Wewillalsocontinuetodeliveron practical andachievablewithinthecontextof projects thatarevaluabletoourcommunity, core services.Wearefocusedondelivering large amountofeffortittakestodeliverour business activitiesthatareconsiderateofthe our Corporateplan.Wewillworkon15new work towardsthelong-termgoalsoutlinedin In 2020/21Councilisexcitedtocontinue path forthefuture. continue theessentialworkneededtoseta 2020/21 OperationalPlan,itisimportantwe identified inourCorporatePlan.Forthe nine strategicgoalsandthe2023outcomes Council isalsocommittedtodeliveringthe Diversify.’ aswellourmissionandvalues. commitment tothevision,‘Connect.Innovate. What doesnotchangein2020/21isour our community. delivering activitythatmakesadifferenceto planning andreportingmoretimeon community. Wewillspendlesstimeon services andthevaluetheydelivertoour and managedisasterrecovery. and SocialRecoveryGrouptobetterplan community initiativesfromtheHuman Deliver aprogramofendorsed Page 24 OUR REPORT Page 25 Implement an ISO55001 aligned asset an ISO55001 aligned Implement supports the system that management manage its assets. business to better safe, reliable and The system will ensure that meet community affordable services, are delivered to the expectations, and community. systems and people Align our processes, deliver Council’s work to collaboratively community’s benefit. programs for the management maintenance the Implement delivery of efficient and process to enable effective maintenance programs across the business. Deliver a program of endorsed initiatives to from the Economic Recovery Group better position the region for economic recovery. Develop a new Economic Development Strategy to improve and guide the region’s growth and prosperity. Implement the Investment Decision Framework to ensure we are making informed and sustainable investment decisions. Upgrade Council’s current Technology One modules to intuitive Ci Anywhere user interface. Ci Anywhere is our document management system. • • • • • • • 2019/20 Annual Report Deliver Stage One of the Philip Street One of the Philip Deliver Stage Precinct. and Families Communities and Through active community and recognition stakeholder engagement liveability values, of current and future Hazard Adaptation complete the Coastal Strategy (CHAS). system to Embed a safety management and well-managed create a safe, secure and minimises workplace that identifies reduce incidents and hazards and helps injuries. Introduce a leadership capability framework that informs how we recruit and develop our leaders. Deliver the Employee Engagement Survey action plan and communicate our the progress of implementation with people. Implementation of an integrated software solution for managing incident, risk, internal audit and contractors to ensure our people, community and environment is safe. Develop a renewed catalogue of all Council services so the community understands the value and cost of delivery. • • • • • • • Gladstone Regional Council OUR REPORT Gladstone RegionalCouncil stories ofourregion. captures theuntold Our PricelessPast and writingbegins. other, beforetherealworkofinterviewing to settle,butgradually,theygetknoweach are tentativeintroductionsandsomenerves When thetwogenerationsfirstmeetthere stories canberecorded. school studentsabouttheirlives,so and couples-totalkwithYear89high community tonominateseniors-individuals Gallery stafffacilitatetheproject,asking for amuch-lovedproject-OurPricelessPast. together torecordmomentsofsocialhistory a localbusiness,hasbroughttwogenerations with theGladstoneObservernewspaperand Gallery andMuseum(GRAGM),partnering For 21years,theGladstoneRegionalArt who livethere,theirlivesandstories. Every communityismadeupofthepeople Students andseniorscreateregion’ssocialhistory Our History 2019/20 AnnualReport and lived. discover howearliergenerationsmet,loved year, thecommunityhappilyreturnsto presented attheGalleryandMuseum.Every carefully curatedexhibitionofmemorabilia the presentthroughlivelystoriesanda This projectseamlesslybringsthepastinto places andmemorablemoments. they relaxintothetaskrememberingpeople, with ayoungpersonsoremovedfromit,but The seniorsmaybehesitanttosharethepast period. will capturealifelivedindifferenttime experience orentertainingpersonalitythat to unearththatneverbeforetoldstory, secondary education.Theyaretrying The studentsarejuststartingoutintheir Page 26 OUR REPORT Page 27 2019/20 Annual Report Gladstone Regional Council Gladstone Regional Council 2019/20 Annual Report Page 28 OUR TEAM
Gladstone Regional Council 2019/20 Annual Report Page 29 This section of the report introduces you to our Mayor and CEO. It outlines our Councillors, Executive Leadership team and our people including our great volunteers and trainees. It also shares details about our key governance policies and practices.
Gladstone Regional Council 2019/20 Annual Report Page 30 OUR TEAM Page 31
He brings an inclusive style of leadership to He brings an inclusive style of leadership and views Council, making sure the thoughts of his fellow Councillors, Council officers, business and industry leaders, community of groups and organisations and members into the community are all heard and taken consideration. three Cr Burnett has learnt much from the Mayors he has worked with since being elected to Council. good He is putting what he has learned to order to use during his tenure as Mayor, in to provide the strong leadership needed at its enable the Gladstone Region to shine best. Boards, Committees, Groups Gladstone Foundation Board of Advice Saiki Sister City Advisory Committee Local Government Association Qld Policy Executive Central Queensland Regional Organisation of Councils Local Disaster Management Group First elected: 2000, Mayor 2016 - present Gladstone Region Mayor Matt Burnett is a born and bred resident and his family’s connection with Cr Matt Burnett, Mayor Councillor Profiles The Gladstone Region is served by nine elected representatives who elected representatives who Region is served by nine The Gladstone for the They are responsible entire region, without division. represent the of the organisation. Councillors democratic governance stewardship and the election on 28 March for a four-year term following were elected Cr Cameron and Cr Branthwaite, incoming Councillors, 2020. We welcome their and Cr Sobhanian, for Councillors, Cr Masters and thank outgoing region. service to the OUR COUNCIL OUR the region extends to five generations. He is a the region extends to five generations. qualified former small business operator and journalist, having started his own newspaper, The Port Curtis Post, at the age of 19. Councillor Burnett has served in Local five Government since 2000, including years as Deputy Mayor before he was elected Mayor. During this time, he served as Chairman of Technical Services with Gladstone City Council and as portfolio representative in Technical Services, Infrastructure Services and Town Planning with Gladstone Regional Council after amalgamation in 2008. Cr Burnett has always had the best interests of the community at heart and, as Mayor, he draws upon the experience gathered over years in Council to ensure those interests remain a key consideration, even as the region continues to grow and develop. Our vast and beautiful region is served by nine elected members. Councillor Profiles
Cr Kahn Goodluck, Cr Chris Cameron Deputy Mayor First elected: 2020 First elected: 2016 Councillor Chris Cameron Councillor Kahn Goodluck moved to Gladstone from lives in Boyne Island Mackay in 1999 to take with his fiancé and three charge of a joint venture young children. He is a housing development. boilermaker by trade Cr Cameron has three and has worked in local industry as well adult and seven grandchildren. His partner, as performing as a musician at events and Lenore, is a Gladstone resident of over 40 venues around the region. years. Cr Cameron’s background is building Having lived in both a city and growing up in and property development. He was involved OUR TEAM Kilkivan, a small country town, he believes the in substantial construction work for mining Gladstone Region is the perfect combination companies, Blair Athol Coal and Oaky Creek of both. It offers the services of a city with Coal in the Central Highlands. Cr Cameron the benefits of a country lifestyle - like a safe has been a Queensland Master Builder community and the opportunity to enjoy the member for over 40 years and a member great outdoors - and is the perfect place to provide a great lifestyle and opportunities for of the Australian Institute of Building, his children. Queensland Chapter (MAIB) for over 40 Years. Since semi-retirement, he has continued Cr Goodluck has been a union delegate to work in the building industry carrying and health and safety representative in out project management roles, building construction, and through this work, has honed the valuable art of negotiation and consultancy work and dispute resolution. He compromise to reach positive outcomes. continues to support the building industry as He believes his working-class background a volunteer judge for the annual Qld Master brings a different and valuable perspective to Builders Housing and Construction Awards. Council. Cr Cameron is a proud Rotarian of 25 years, Cr Goodluck is motivated to engage with having served as President, Secretary and on people throughout the region and ensure various board positions. He was awarded a everyone gets a fair go. He is passionate Paul Harris Fellowship (PHF) for services to about government policy and the impact it has on people’s lives. He is outgoing, Rotary and the Gladstone community. Further determined with a positive attitude and to his Rotary service, he has been involved in strong work ethic that will serve him well on Rotary RAWCS projects overseas, travelling Council. to the Solomon Islands to participate in a humanitarian effort. In his earlier days, he was Boards, Committees, Groups a past Lions President and a member of Apex.
Audit Risk and Improvement Committee Cr Cameron has always been highly active Gladstone Regional Road Group and and supportive of his local community. He Technical Committee looks forward to his role as Councillor in the Central Queensland Regional Organisation of Gladstone Regional Council and being part of Councils the decision-making team to help shape the region’s post COVID-19 future. Capricorn Pest Management Group Inland Queensland Roads Action Project (IQ- Boards, Committees, Groups RAP) Working Group Education Queensland Industry Partnership Local Disaster Management Group Port Welfare Committee Capricorn Pest Management Group
Gladstone Regional Council 2019/20 Annual Report Page 32 Councillor Profiles
Cr Chris Trevor Cr Darryl Branthwaite First elected: 2016 First elected: 2020 Councillor Chris Trevor (CT) has lived in the Gladstone Councillor Darryl Region for more than 50 Branthwaite is originally years. from Invercargill in the deep south of the South He was educated at Island in New Zealand. Central State School and later Rockhampton He arrived in Tannum Sands in 1982 where OUR TEAM Grammar School before completing his he worked as a process technician at Boyne secondary education at Gladstone State High Smelters until 1988. School. Then, along with family, he purchased the lease of what is now known as Caltex Boyne Cr Trevor is a solicitor of the Supreme River at Benaraby. Court of Queensland and the High Court of Australia, as well as a Justice of the Peace and For 22 years, Cr Branthwaite and wife Jenny Senior Counsellor of the Queensland Law operated this very successful business, becoming influential within the community Society. through the Boyne Tannum and Benaraby He is a former Gladstone City Councillor, Chamber of Commerce, along with many former Deputy Mayor and was the first ever other community groups. He was also a founding member of the Boyne Tannum Federal Member for Flynn in the Australian HookUp (1995) which has gone on to become House of Representatives. Australia’s largest family fishing event. Cr Trevor has dedicated his life to family, After leaving the business he went into real the law, public service and both charitable estate, selling residential and commercial and sporting pursuits throughout Central properties for a further five years within the Queensland. Gladstone Region. Cr Branthwaite was also a director on the Boards, Committees, Groups GAPDL Board for over 20 years before Transport Environment Advisory Group accepting the role of CEO in September 2015. GAPDL was successful in turning the region’s Gladstone Regional Council SES Management tourism around with double-digit growth Group and over 34 cruise liners visiting under his Gladstone Regional Council Rural Fire leadership. Brigades Advisory Group In June 2019, Cr Branthwaite and Jenny Gladstone & District Sports Foundation Trust started the tour business Gladstone Region Tours. Boards, Committees, Groups Audit Risk and Improvement Committee Gladstone Regional Road Group and Technical Committee Gladstone Local Marine Advisory Committee Gladstone LNG Regional Community Consultative Committee Gladstone Healthy Harbour Partnership Inland Queensland Roads Action Project (IQ- Cr Peter Masters RAP) Working Group 19 March 2016 - 28 March 2020 Cr PJ Sobhanian 3 March 2015 - 28 March 2020
Gladstone Regional Council 2019/20 Annual Report Page 33 Councillor Profiles
Cr Desley O’Grady Cr Glenn Churchill FIML, MAICD, MBWA First elected: 2016 First elected: 2016 Councillor Desley O’Grady Gladstone Regional Council; has lived in the Gladstone Banana Shire 1997-2008 Region for more than 30 years and her family Councillor Glenn Churchill history here dates back five has been an active resident generations. of the greater Gladstone Region and Central Queensland for nearly 30 Cr O’Grady was also part of the Calliope years. He has gained extensive experience Rodeo Association team that raised $80,000 and wisdom in his 15 years in Local for the Boyne Valley community through the Government as both a Mayor and Councillor. OUR TEAM 2013 Bulls and Bands Flood Appeal, and a committee member for the Gladstone Region Together with his wife Sue and family, Cr 20 year Vision panel. Churchill has served the business, sporting, tourism and community interests of the Since being on Council, she has attended region through many different avenues in numerous community functions, meetings public life. and has been very passionate about Council’s vison. He is the current long-time Chairman of the Gladstone Police Citizens Youth Club (PCYC) Cr O’Grady loves the Gladstone Region’s Management Committee, Diamond Life versatility, from the hinterland of the Boyne member of the Queensland Police-Citizens Valley to the Southern Great Barrier Reef, and Youth Welfare Association (QPCYWA) and, is dedicated to playing a part in its continued more recently, spent seven years advocating growth and prosperity as an elected member. for the region as CEO of GAPDL and an additional seven years as an honorary Board She has been contributing to the strategic member. direction of Council and working as a team member with energy and enthusiasm, as well Cr Churchill is also a life member and as being a strong and passionate voice for the volunteer of various local community-based community. organisations. He previously served 11 years as Mayor/Councillor at Banana Shire Council Boards, Committees, Groups and protected the community for 27 years as Audit Risk and Improvement Committee a Queensland Police Officer. Saiki Sister City Advisory Committee Cr Churchill strongly believes in working Reconciliation Action Plan Advisory Group together in harmony to help foster a culture of civic pride in the Region and its communities, valuing the contribution of our various industries, community groups and rural producers, and recognising the very vital work Council does for the benefit of the region and communities.
Boards, Committees, Groups
Saiki Sister City Advisory Committee Gladstone PCYC Management Committee Gladstone Safe Night Precinct Public Consultative Committee Regional Arts Development Fund Committee (RADF)
Gladstone Regional Council 2019/20 Annual Report Page 34 Councillor Profiles
Cr Natalia Muszkat Cr Rick Hansen First elected: 2018 First elected: 2006
Councillor Natalia Muszkat Councillor Rick Hansen is an experienced manager, moved to Gladstone facilitator, community with his wife Lyndal and development professional family over 40 years and a young mother of ago, relocating from
two boys. She migrated to Maryborough for work. OUR TEAM Australia in 1999 from Argentina and comes He has two daughters, two sons-in-law, two from a family with a rich heritage that includes granddaughters and one great grandson. All Argentinian natives and east European but one granddaughter still lives in Gladstone. migrants. Cr Hansen is extremely proud of the region Cr Muszkat moved to Gladstone in 2007 to with its blend of industry, opportunity and raise her young family and fell in love with the environmental commitment. He believes the region. She immediately formed connections Gladstone Region has it all, from the beautiful in the Gladstone Region community and beaches of Agnes Water/Seventeen Seventy founded the award-winning organisation and Tannum Sands to the scenic views of the Welcoming Intercultural Neighbours Inc., valleys, mountains and the islands, coupled a for-purpose organisation born from the with the existence and potential of our needs of the cultural and linguistically diverse great harbour. He also admires the region’s local communities. More recently, Cr Muszkat enormous community pride and spirit. co-founded a not-for-profit charitable organisation, Strong Communities Ltd. Cr Hansen has had extensive involvement in the community. He has worked in major Cr Muszkat has a Bachelor in Workplace industry for 19 years, owned and managed Health and Safety (with Distinction) and a a small business for over 20 years and has Diploma in Business Governance. Cr Muszkat extensive knowledge of the small business has a great passion for community and social sector. He has represented the community in and human service. She believes everyone Council since being first elected in 2006. deserves the same opportunities in life and empowering others is what motivates Cr Hansen has had various portfolio roles her. Her diverse cultural and professional ranging from Infrastructure to Finance and experience has taught her to always conduct Governance and was a past member of herself with empathy, compassion and the Business Improvement Committee. He respect for all people’s ideas and experiences. understands the business of Council from Strategy and Planning to Community and Boards, Committees, Groups Finance.
Audit Risk and Improvement Committee Boards, Committees, Groups Coastal Council Adaptation Taskforce (C-CAT) Gladstone Area Promotion & Development Executive Committee Ltd (GAPDL) Reef Guardian Council Steering Committee Gladstone Airport Corporation Gladstone Local Marine Advisory Committee Local Authorities Waste Management Coastal Hazards Adaption Strategy Reference Advisory Committee Group Transport Environment Advisory Group Reconciliation Action Plan Advisory Group
Gladstone Regional Council 2019/20 Annual Report Page 35 Governance
Gladstone Regional Council, comprising of the Mayor and eight councillors, is the elected body responsible for the good rule and local government of the Gladstone Region. The primary role for Councillors is to represent the current and future interests of the residents of the Gladstone Region.
Council is constituted in accordance with the Local Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation) (collectively the Local Government Legislation) and operates in accordance with the five local government principles established in s4(2) of the Act:
1. transparent and effective processes, and decision-making in the public interest
2. sustainable development and management of assets and infrastructure, and delivery of effective services
3. democratic representation, social inclusion and meaningful community engagement
4. good governance of and by, local government OUR TEAM 5. ethical and legal behavior of councillors and local government employees.
The Local Government Legislation together with Council’s Code of Conduct Policy establishes principles and standards of behavior expected of our Mayor and councillors when carrying out their roles, responsibilities and obligations.
Council conducts its business during General Meetings which are held on the first and third Tuesday of each month. On occasion, Special Meetings are necessary to determine matters such as the adoption of the Annual Budget (17 July 2019) or Council’s COVID-19 Support Package (24 March 2020).
General Meetings are advertised and opened to the general public however COVID-19 has seen General Meetings closed to the public due to health and safety reasons associated with COVID-19 in accordance with s277E of the Regulation. While meetings have been closed to the public, General Meetings have been livestreamed via Council’s website and Facebook which has seen increased engagement within the community. General Meetings proceed in accordance with Council’s Council Meetings Procedures Policy with meeting agendas and minutes available on Council’s website.
In addition to General Meetings, Council has established two formal Advisory Committees which are responsible for reporting to Council on specific matters:
• Sister City Advisory Committee
• Gladstone Region Youth Council Advisory Committee.
Gladstone Regional Council 2019/20 Annual Report Page 36 Statutory Information
LOCAL GOVERNMENT REGULATION 2012 Councillor Remuneration – s 186(1)(a)
The Local Government Remuneration and Discipline Tribunal established under the Local Government Act 2009 is responsible for determining the maximum remuneration payable to the Mayor, Deputy Mayor and Councillors. The total remuneration paid to Councillors for 2019/20 is detailed below:
Councillor Description Salary Superannuation Total Branthwaite, Darryl Councillor $16,228 $1,947 $18,175 Part Year (new Councillor)
Burnett, Matt Mayor $155,663 $18,596 $174,259 OUR TEAM Full Year Cameron, Chris Councillor $16,228 $1,947 $18,175 Part Year (New Councillor) Churchill, Glenn Councillor $89,719 $10,766 $100,485 Full Year Goodluck, Kahn Deputy Mayor $91,932 $8,733 $100,665 Part Year (former Councillor) Hansen, Rick Councillor $89,719 $10,766 $100,485 Full Year Masters, Peter Councillor $89,719 $10,766 $100,485 Part Year (not re-elected) Muszkat, Natalia Councillor $89,719 $10,766 $100,485 Full Year O’Grady, Desley Councillor $89,719 $10,766 $100,485 Full Year Sobhanian, Poya Councillor $73,835 $8,860 $82,695 Part Year (not re-elected) Trevor, Chris Councillor $99,742 $11,969 $111,711 Part Year (former Deputy Mayor)
Overseas Travel – s 188
Council’s Corporate Plan identifies a strong desire to actively promote and support the region and enable its growth and prosperity.
In 2019, the opportunity arose for Council to attend the BIO World Congress on Industrial Biotechnology.
The Bio World Congress brought together business executives, government officials and academic researchers from around the world to share expert insight on policy issues and new technologies to help create a more sustainable planet.
Council is required to disclose the following information about the overseas travel of staff or Councillors during 2019/20:
Councillor Destination Purpose Cost Mayor Matt Burnett Saiki, Japan Saiki Delegation $6,138 Mayor Matt Burnett Iowa, USA Bio World Congress on Industrial $6,258 Biotechnology
Gladstone Regional Council 2019/20 Annual Report Page 37 Councillor Expenses and Provision of Facilities – s 186(1)(b)
A Councillor Expenses Reimbursement and Provision of Facilities Policy was adopted by Council on 6 November 2018. The policy provides for the reimbursement of reasonable expenses incurred by Councillors when discharging their duties and responsibilities as Councillors and the provision of facilities necessary to undertake their roles.
Total expenses incurred by, and facilities provided to, Councillors in 2019/20 was $178,495.16.
Councillor Travel & Hospitality Seminars & ICT Vehicle Total Accommodation Conferences Matt Burnett $12,415.09 $2,632.18 $61.48 $1,474.76 $17,499.96 $34,083.47 Chris Trevor - $42.64 $51.16 $641.94 $17,499.96 $18,235.70 Kahn - $51.15 $640.63 $17,499.96 $19,500.96 Goodluck $1,309.22 Natalia - - $2,244.90 $671.86 $13,500.00 $16,416.76 Muszkat OUR TEAM Glenn $1,154.30 $128.62 $90.38 $711.94 $13,500.00 $15,585.24 Churchill Rick Hansen $764.28 - $96.80 $638.76 $13,500.00 $14,999.84 Desley - - $65.45 $1,076.15 $17,499.96 $18,641.56 O'Grady Poya $2,672.32 - $526.51 $14,583.30 $17,782.13 Sobhanian - Peter Masters $42.64 - $2,025.93 $637.10 $14,583.30 $17,288.96 Darryl - - $63.62 $2,916.66 $2,980.28 Branthwaite - Chris Cameron - - $63.62 $2,916.66 $2,980.28 - * includes overseas travel reported separately in annual report.
Elected Member Expenses Reimbursement and Provision of Facilities - s 185
There were no resolutions relating to Council’s Councillor Expenses Reimbursement and Provision of Facility Policy during 2019/20.
Expenditure on Grant to Community Organisations – s 189
Section 189 requires Council to provide a summary of the expenditure on grants to community organisations and expenditure from Councillor discretionary funds.
Mayor’s Discretionary Fund
Organisation Name Purpose Month Amount Agnes Active Riders Inc Club Sunshade July $200 Gladstone Rugby League Brisbane Roar Game – Marley July $10,000 Brown Oval Glenn Butcher Tour De Chaplain August $99 Jill Hopson Tour De Chaplain August $99 Benaraby Driver Education Central Queensland Human August $300 Powered Vehicle challenge Gladstone West School National Sport Aerobics August $182 Championships Gladstone West School School Family Fun Night August $182 GECC Mayor’s Ball August $6,364
Gladstone Regional Council 2019/20 Annual Report Page 38 Gladstone Amateur Boxing Club Daly’s Gym 9th Annual Bike Ride September $200 Raising Money for Lindsay Smith Mount Larcom Progress Monthly Economic Community September $200 Association Dinner Night Goora Gan Steiner School Resources Required to Support September $200 Curriculum Activities Benaraby School New Signage of School Fete September $787 Agnes Water Captain Cook Agnes Water Captain Cook 1770 September $300 1770 Lions Club Lions Club Annual Grand Slam Gladstone Municipal Band Gladstone Municipal Band – September $6,000 Community Events OUR TEAM Gladstone Thistle Pipe Band Gladstone Thistle Pipe Band September $2,500 Gladstone Amateur Basketball 2020 Season Launch September $5,000 Assoc Toolooa State High School State Finals - Language Literature September $1,000 team Rosella School iPads – Student Communication September $2,171 Equipment Builyan State School Sporting Equipment September $259 Nagoorin State School Sporting Equipment September $259 1770 Art Show 1770 Art Show 2020 September $500 Gladstone Red Cross Trauma Teddies September $200 Central School Sporting Equipment September $289 Maritime Museum 40th Anniversary Freemantle October $2,000 Class Boats Reunion Baffle Creek Fishing Club Baffle Creek Family Fishing October $2,500 Festival Toolooa High School Stem Squad equipment October $500 Evenglow Inc Christmas function for the elderly November $1,200 CPL – Choice, Passion, Life Purchase of resources to support November $396 programs at the Gladstone centre Gladstone Area Promotion and Fishing Australia Film November $5,000 Development Limited Trinity College Gladstone Incoming student Council December $250 initiatives Boyne Valley Historical Society Boyne Valley Soldier Settlement December $1,000 Inc and Birth of Ubobo Miriam Vale Golf Club Upgrade existing water May $7,950 infrastructure - desilting dams The Lion's Club of Sponsorship for Gladstone May $480 Rockhampton special needs children to attend Circus Quirkus Event Rotary Club of Gladstone Purchase of commercial quality May $4,411 Sunrise freezer for Gladstone Food Centre Gidarjil Cultural Heritage "Colonisation Through Black Eyes" June $5,000 Corporation Ltd publication sponsorship Past Brother's Junior Rugby Solar panel installation June $25,067 League Club
Gladstone Regional Council 2019/20 Annual Report Page 39 Donations
Category Amount Surf Life Saving $369,326 Sporting Body Subsidies $333,258 Rural Fire Brigade $224,600 Works for Queensland $536,446 Community Services Obligations $29,145 Capricorn Helicopter Rescue $25,000 LifeFlight $20,000 Regional Arts Development Fund $122,595 Martin Hanson Awards $40,000 In Kind $4,500 Gladstone Region Rise Up Funding $476,000 Town Proud Foundation Sponsorship $10,000
OUR TEAM Operation Wanted $15,000 1770 Festival 250th Anniversary $110,027 Gladstone Harbour Festival $82,727 Other Donations and Sponsorships $62,458
Community Investment Connected Communities Fund Category Amount Community Hall Subsidy $27,000 Gladstone and District Sports Foundation Trust $12,000 Sport and Recreation Operations $5,817 Performing Arts $2,500 Historical and Heritage Museums $5,000 Charity Waste Tipping Waiver $3,576
Regional Enhancement Fund Category Amount Sport and Active Recreation - Strategic Projects $113,680 Sport and Active Recreation - Community Projects $2,999 Jumpstart City Heart - Environmental Care - Plant and Equipment $454 Development Application Fee Reimbursement $12,198
Community Celebration Fund Category Amount Ignite Event - Funds up to $10,000 (0-2,500 people) $18,899 Impact Event - Funds up to $25,000 (2,500 - 5,000 people) $25,757 Destination Event - Funds up to $50,000 (over 5,000 people) $44,078 Signature Event $35,000 Community Event $5,039
Community Education Fund Category Amount Regional Education Program - Bursary $11,700 Regional Education Program - Education Development $42,870 School Engagement Subsidy $2,751
Gladstone Regional Council 2019/20 Annual Report Page 40 Council Meetings – s 186(1)(c)
Councillor Meetings
The Local Government Act 2009 establishes a number of councillor responsibilities, one of which is a responsibility to participate in Council meetings. Section 186(c) requires Council to disclose the number of government meetings that each Councillor attended during the financial year.
There were 25 General and Special Meetings held during 2019/20. Individual Councillor attendance at General and Special Meetings of Council are detailed below:
Councillors Total Burnett, Matthew (Mayor) 22 Branthwaite, Darryl (part year - new Councillor) 6
Cameron, Chris (part year - new Councillor) 6 OUR TEAM Churchill, Glenn 25 Goodluck, Kahn 24 Hansen, Rick 25 Masters, Peter (part year - former Councillor) 21 Muzkat, Natalia 20 O’Grady, Desley 24 Sobhanian, Poya (part year - former Councillor) 22 Trevor, Chris 24
Orders and Recommendations – 186(1)(d)
Councillor conduct is governed by the provisions of the Local Government Act 2009 and Local Government Regulation 2012 and Council’s Councillor Code of Conduct Policy adopted by Council on 2 December 2018 (viz resolution G/18/3592). The Councillor Code of Conduct Policy endorses the State Government’s framework for the standard of conduct and behaviour (including the Code of Conduct for Councillors In Queensland) expected of all Mayors and Councillors whilst acting in their capacity as an elected member.
The Act establishes a range of consequences for failing to comply with the Code of Conduct.
In 2019/20 there were no decisions, orders or recommendations made under ss150I(2), 150AH(1) or 150AR(1) of the Act against a Councillor.
Councillor Complaints and Misconduct – s 186(1)(f)
The Office of the Independent Assessor (OIA) is responsible for the assessment and investigation of complaints of inappropriate conduct or misconduct of councillors.
In 2019/20 seven complaints against Councillors were assessed by the OIA. Four of the seven complaints were dismissed as not raising a reasonable suspicion of inappropriate conduct or misconduct with no further action being taken with respect to the remaining complaints.
Councillor Complaints are detailed in Council’s Councillor Conduct Register available to the public on Council’s website.
Administrative Action Complaints – s187
An Administrative Action Complaint (AAC) is defined in the Local Government Act 2009 as a complaint that is about an administrative action of a local government and is made by an Affected Person (a person who is apparently directly affected by an administrative action of a local government or as defined in s43 of the Act with respect to competitive neutrality).
AACs are managed in accordance with Council’s Complaint Management Policy adopted by Council on 4 December 2018 (viz resolution G/18/3595). Council views the complaints handling process as a valuable tool to identify avenues for continuous improvement and is committed to dealing with administrative action complaints in a fair and transparent manner.
Gladstone Regional Council 2019/20 Annual Report Page 41 OUR TEAM Gladstone RegionalCouncil advisory grouptoCouncil. The YouthCouncilactsasaformal Of theAACsreceived: referred toaComplaintReviewPanelandultimatelycanbeescalatedtheQldOmbudsman. outcome andresponse.WhereacustomerisunsatisfiedwithanAACthewillbe Case Managerwillworkwiththerelevantsubjectmatterexperttodetermineanappropriate AAC isrecordedinCouncil’sComplaintManagementSystemandassignedaCaseManager.The In accordancewithCouncil’sComplaintsManagementPolicyandprocedures,whenreceivedan the previousfinancialyear(2018/19) Number ofunresolvedAACs during2019/20thatweremadein Number ofunresolvedAACs receivedduring2019/20 Number ofAACs resolvedduring2019/20 Number ofAACsreceivedduring2019/20 Administrative ActionComplaints 2019/20 AnnualReport 0 31 294 325 Number Page 42 OUR ORGANISATION Our Organisational Structure
COMMUNITY Our community lies at the heart of everything we do. Improving our community sets the purpose for our organisation.
COUNCIL OUR TEAM Our Council is led by our Mayor. See page 14 to read about our Councillors.
OFFICE OF THE CEO Audit, Risk LEISA DOWLING and Integrity Chief Executive Officer Committee See p. 45
CARLY QUINN ANNA SCOTT JOHN TUMBERS KYLIE LEE General Manager General Manager General Manager General Manager Strategy and Strategic Asset Operations Community Transformation Performance • Contracts and Development and • Strategy and Corporate • Asset Governance Procurement Events • Disaster Management planning • Asset Performance and • Brand and • Strategic Information, Monitoring and Response • Operations Support Communications Communications and • Asset Planning • Community Events Technology • Environment and Services • Works Delivery Teams – • Community Facilities and • Transformation Program Conservation Maintenance • Economic Development • Asset Design Roads, Water and Waste Water, Waste and Parks • Engagement and • Strategic Grants • Engineering Asset Partnerships • Strategic Projects Solutions • Works Planning and Scheduling • Gladstone Entertainment • Insights and Innovations • Property Acquisition and Convention Centre Disposal • Gladstone Regional Art Gallery and Museum • Regional Libraries • Tondoon Botanic Gardens
MARK HOLMES THEUNIS MIENIE MARK FRANCIS General Manager General Manager General Manager Finance, People, Culture Customer Governance and Safety Experience and Risk • Culture and Capability • Biosecurity and • Cost Accounting • Employee and Industrial Environmental Health • Ethics Integrity and Audit Relations • Customer Experience • Financial Management • Health Safety and • Development Services • Governance, Risk and Wellbeing • Local Law/Animal Compliance • Payroll Services Management • Legal • Recruitment • Records • Revenue Management
Connect. Innovate. Diversify.
Gladstone Regional Council 2019/20 Annual Report Page 43 Our Governance
Corporate Governance
Council has made a commitment to create a culture that minimizes risk and maintains compliance by strengthening governance, risk management and compliance awareness processes, reporting and accountability. Our Corporate Plan includes the following goals:
Goal 2019/2020 Comprehensive risk management • Work continued on the development of Council’s strategies for all identified risks new Risk Management Framework focusing on risk at Corporate, Operational and Project level • REIACS Project – development of a risk management software tool for Council Documented risk appetites for • Executive Team Workshops to review corporate risks each corporate risk element Transparent, accountable and • Organisational wide code of conduct workshops OUR TEAM responsive governance • Review of policies and corporate standards to align with contemporary practices and legislative reform • Delegations Audit A Council that makes better • A new report template was developed to include an informed decisions based on “Options, Risk and Opportunity Analysis” improved report writing which • Report writing training was delivered to report writers provides a thorough options within the organisation analysis Increased community involvement • Commencement of livestreaming of General Meetings in local government • Enhancement of community engagement activities including the introduction of the Conversations Platform Leaders who continue to act with • Delivery of Shaping Leaders Program integrity • Organisational wide code of conduct workshops
Risk Management
Council acknowledges that risk management is an inherent part of its daily activities and processes that allow Council to achieve an appropriate balance between realising opportunities for development while minimising losses. Council is committed to an effective program of risk management in order to develop strategies for managing current risks and providing the ability to respond to future identified risks.
Risk Management within Council is supported through Council’s Risk Management Policy and Risk Management Corporate Standard. Throughout 2019/20 Council undertook a major review of the Policy and Corporate Standard and work commenced to draft a comprehensive risk management framework focusing on risk at a Corporate, Operational and Project level with the framework aligning with the international standard AS/NZ ISO31000:2018 Risk Management.
Gladstone Regional Council 2019/20 Annual Report Page 44 Internal Audit Report
Council’s Audit Risk and Improvement Committee (ARIC) formerly known as the Business Improvement Committee is Council’s Audit Committee established in accordance with the Local Government Act 2009 (the Act). ARIC provides an independent forum where representatives of Council, independent members and management work together to fulfil specific governance responsibilities that contribute to compliance responsibilities and improved performance of the organisation.
ARIC supports Council by:
• Reviewing the financial statements and public accountability performance reporting; • Reviewing effectiveness of governance, risk management and control; • Promoting economy, efficiency, effectiveness and ethical culture; OUR TEAM • Reviewing reliability of management information; • Monitoring and evaluating internal audit performance; • Reviewing effectiveness of fraud control measures; and • Monitoring compliance with laws, regulations, standards and good practice.
ARIC reports to Council and has the authority to make recommendations with respect to matters within its scope of responsibility.
As of 30 June 2020, the membership of ARIC is as follows:
• Kerry Phillips, ARIC Chairperson (External Member and Financial Expert) • Stephen Coates (External Member) • Sandra Collins (External Member) • Cr Kahn Goodluck (Councillor Representative) • Cr Desley O’Grady (Councillor Representative) • Mayor Matt Burnett (Non-voting Ex Officio Member) • Cr Darryl Branthwaite (Alternate Councillor Representative) • Cr Natalia Muszkat (Alternate Councillor Representative)
The Committee meets quarterly. In addition to the members of ARIC, meetings are attended by the Chief Executive Officer, General Manager Finance Governance and Risk and a representative from Council’s Ethics Integrity and Audit Team. General Managers and officers regularly attend committee meetings to present reports to ARIC. Councillors who are not members of ARIC may attend meetings as observers. External auditors and representatives of the Queensland Audit Office have a standing invitation to attend all meetings.
ARIC also meets twice a year with the full Council at Councillor Information Sessions to provide a verbal update of key matters of importance to the Council, progress of the ARIC, and to answer without notice, any questions individual Councillors may pose. The sessions serve to strengthen the transparent and accountable relationship between the ARIC and Council.
Council’s internal audit function is undertaken by the Ethics Integrity and Audit Team led by the Ethics Integrity and Audit Specialist who generally reports to the General Manager Finance Governance and Risk but also has direct reporting responsibilities to the Chief Executive Officer and ARIC.
Each year, Council in consultation with ARIC develop an Internal Audit Plan. While outlining proposed audits and reviews for the year, the Internal Audit Plan remains flexible so that it can be adapted to the changing needs and risks as they arise within Council.
Throughout 2019/20, Council’s Ethics Integrity and Audit Team with the oversight of ARIC has reviewed, provided assurances and made recommendations in many areas of the Council including:
Gladstone Regional Council 2019/20 Annual Report Page 45 OUR TEAM Gladstone RegionalCouncil with ethicsandintegrity. Council iscommittedtooperating Internal AuditReport actions ismonitoredbytheEthicsIntegrityandAuditTeamARIC. recommendations fromauditsistheresponsibilityofmanagement.Thecompletion Tool administeredbytheEthicsIntegrityandAuditTeamimplementationof Recommendations frominternalauditsarecapturedwithinCouncil’sAuditTracking mitigate theassociatedrisks. demonstrated astrongunderstandingoftherisksinvolvedandeffectivecontrolsinplaceto identified highareasofriskrequiringurgentactionstorectifyshortcomings.Otherreviews Overall, thereviewsindicatedthatCouncildisplayedreasonablysoundcontrols.Someaudits Management Review Maintenance Vehicle Accreditation National Heavy Compliance Training Environmental Investigation -Phishing Records Management Security Standard Payment CardIndustry Cybersecurity Review Management Systems Health andSafety 4801:2001 – Occupational Compliance withAS/NZS failure in relationtocriticalasset Risk maturityassessment Water andWaste– Delegations Review Review 2019/20 AnnualReport Assess Council’sCompliancewithNHVArequirements. compliance withCouncil’sEnvironmentalAuthoritypermits. To addressanincreaseduring2018/19tothereportingofnon- An investigationintoasuccessfulphishingattemptonCouncil. Records ManagementwithinCouncil. Review theexistingcontrols,policiesandprocessesappliedto relation toPaymentCardIndustryDataSecurityStandards. Evaluate Council’sdatasecuritystandardsandinternalcontrolsin processes. security breachesandtoassessexistingcontrolsmonitoring Determine andarticulatereportingobligationsinrelationtocyber Work HealthandSafetyAct2012AS/NZS4801:2001. Assess alignmentbetweenCouncil’sWHSManagementSystemwith water infrastructurefailure. Assess Council’sriskmaturityinrelationtocriticalwaterandwaste conduct. knowledge asthedelegatetowillingly/unwillinglytakepartincorrupt when authorisingdelegationswithinCouncilandassessthelevelof Review thelevelofmanagementandinternalcontrolmeasures Objective Page 46 OUR LEADERSHIP
Executive Profiles
Leisa Dowling Carly Quinn Chief Executive Officer General Manager Strategy and Leisa’s local government Transformation career commenced with Gladstone Regional Council Carly has a multi- in September 2010 as disciplinary background OUR TEAM Director Environment & across government, Recreation. Prior to joining commercial and not- Council, Leisa had a lengthy career in State for-profit sectors, with a focus in strategy, Government, including senior roles in the transformation, marketing, events and Department of Local Government. Leisa held community development. Her strength is in the position of General Manager Strategy and collaborating with multi-functional teams to Transformation before being appointed Chief find pragmatic solutions to complex business Executive Officer (CEO) in November 2018. problems. Her passion is in building the capability of our people to better deliver Business responsibilities include: services for our community. Carly was The CEO is ultimately responsible for the appointed General Manager Strategy and strategic management of the organisation Transformation in September 2018.
Qualifications and memberships: Qualifications and memberships: BLS Associate of AusTTA Graduate Certificate in Public Sector Member - Local Government Managers Management, Australia Member - Local Government Managers Australia
Anna Scott John Tumbers General Manager General Manager Strategic Asset Operations Performance John joined Council in Anna joined Council in March 2019. John has 2015 as Manager Water a career background Services before moving into in operations and this role in February 2018. maintenance in power Prior to joining local government, Anna had generation, resource and ports sectors in spent over 20 years in the asset infrastructure New South Wales, South Australia, Western space carrying out a variety of roles in the Australia and Queensland. Prior to joining consulting, utilities and construction sectors. Council John was the Chief Operating Officer for the Gladstone Area Water Board which Qualifications and memberships: provides bulk water to Gladstone’s industry M. Eng Sc (Water Care) and Council. B Eng (Environment) Cert IV Safety Leadership Qualifications and memberships: Member - Australian Water Association GradDipMainMgt (Graduate Diploma in Member - IPWEA Maintenance Management)
Gladstone Regional Council 2019/20 Annual Report Page 47 Executive Profiles
Mark Francis Kylie Lee General Manager General Manager Customer Experience Community Development and Events Mark has over 20 years’ experience across a range Kylie has over 20 years’ of industries. Prior to experience in community joining Council in 2018, he relations, communications, held strategic leadership events and investment. roles in financial services in Victoria and Local Prior to joining Council in February 2018, Government and telecoms sectors in the Kylie held leadership roles in a range of United Kingdom. Mark moved into this role in industries including ports, construction, March 2019. mining, entertainment and Local Government, including eight years at the former Calliope Qualifications and memberships: Shire Council.
OUR TEAM MA (Hons) PgDip (Business Admin) Qualifications and memberships: Graduate Diploma (Public Relations) Member - Local Government Managers Australia
Theunis Mienie Mark Holmes General Manager People, General Manager Culture and Safety Finance, Governance & Risk Theunis was appointed in November 2019. He Mark has served local has executive Human government for more than Resources experience 20 years, commencing with across multi-sectors: a traineeship at Dalrymple mining, logistics, engineering, utilities and Shire Council. Mark worked at the former Local Government. Prior to this, he held the Calliope Shire Council for eight years, serving role as Chief People Officer for Wyndham in the role of Manager of Finance and Director City Council. His passion and strength are of Corporate and Community Services. Mark in working collaboratively with the Executive was appointed General Manager Finance, Team to develop and implement people Governance and Risk in January 2018. and safety strategies, building constructive organisational culture and capability to safely Qualifications and memberships: deliver services to our community. BBus (Acc) GDIP (Acc) Qualifications and memberships: GDIP Local Government Australia MSc HR CPA BLRM (Labour Relations Management) BHRM CertIV WHS
Stacey Hogarth Acting General Manager People, Culture and Safety 27 June 2019 – 15 November 2019
Gladstone Regional Council 2019/20 Annual Report Page 48 Statutory Information
State legislation requires Council to include specific information in its Annual Report. This section provides Council’s response to those requirements in accordance with the relevant Act and legislation.
LOCAL GOVERNMENT ACT 2009
Senior Management Remuneration – s 201
Senior management (Council’s CEO and General Managers) are engaged under fixed-term, performance-based contracts. The following remuneration was payable for Council’s senior management in 2019/20:
Remuneration Band Number of Senior Executives OUR TEAM $300,000-399,999 1 $200,000-299,999 7
LOCAL GOVERNMENT REGULATION 2012
Overseas Travel – s 188
Council’s Corporate Plan identifies a strong desire to actively promote and support the region and enable its growth and prosperity.
In 2019, the opportunity arose for Council to attend the BIO World Congress on Industrial Biotechnology. The Bio World Congress brought together business executives, investors, government officials, and academic researchers from around the world to share expert insight on policy issues and new technologies to help create a more sustainable planet.
Council has a long standing Declaration of Friendship with Saiki City Council in Japan. It has been customary for the Mayor and a Council officer to visit Saiki and in return the Mayor of Saiki to visit Gladstone. In 2019, Council sent a delegation to Saiki and took the opportunity to attend meetings as part of a trade and investment delegation to promote the Gladstone Region.
Council is required to disclose the following information about the overseas travel of staff or Councillors during 2019/20:
Employee & Position Destination Purpose Cost Leisa Dowling, Chief Saiki, Japan Saiki Delegation $2,937 Executive Officer Carly Quinn, General Iowa, USA Bio World Congress $9,406 Manager, Strategy and on Industrial Transformation Biotechnology
Gladstone Regional Council 2019/20 Annual Report Page 49 OUR PEOPLE Snapshot
Average Age: 44.14 Years March 2020 GRC welcomed Total Years of Service: 5195 20 new Trainees and Average Years of Service: 7.15 Apprentices selected from Highest Years of Service: 45 around 1115 applications.
727 TOTAL EMPLOYEES WORKFORCE BY GENDER Full time Equivalent (FTE) OUR TEAM Part Time employees Full Time employees Casual employees Employees Employees Female Male
714 53 524 50 52.14 47.86
Council continues to improve its Safety Management System. Council recorded a reduction in the Lost Time Injury Frequency Rate (LTIFR) from 16.33 to 4.11(74 per cent) and a reduction in the Total Injury Frequency Rate (TRIFR) from 27.97 to 12.06 (55 per cent) We saw significant improvement in safety with less frequent and less serious incidents. Our time lost due to injuries are 50 per cent less than comparative Councils (11 vs 21 days).
LTIFR & TRIFR Comparison Average Days Lost per Injury LTIFR TRIFR GRC Group E (>$50 million payroll) All Councils (scheme)
16.33 27.97 4.11 12.06 23 27 32 11 21 22 2018/2019 2019/2020 2018/2019 2019/2020
Gladstone Regional Council 2019/20 Annual Report Page 50 OUR TEAM Page 51 in the workplace contributes to that feeling of in the workplace contributes pride and humility. team believes our people Council’s leadership everything we do’, whether are ‘at the core of an improved this be through achieving a say in the Employee safety culture, having could Engagement Survey about how things to be improved or training team members provide an exceptional level of customer service for the community. to They are enacting our vision as a Council the Connect. Innovate. and Diversify within delivery to workplace, while improving service the Gladstone Region. 2019/20 Annual Report We are Proud of Our People We are Proud SERVICE Award program is Our organisation’s recognising our people now well established, our values of being Safe, who demonstrate Visionary, Inclusive, focus Ethical, Responsive, and are Efficient. on the Community an insight into how our The awards provide using people are delivering innovative work ideas. initiative, teamwork and thoughtful Being nominated by their peers gives employees a sense of pride and achievement, on the while it also allows them to reflect their enjoyment they get from working with teams. Employees have commented that knowing colleagues they are having an impact on their Our people are recognised for embracing our values. Gladstone Regional Council Gladstone Regional Council 2019/20 Annual Report Page 52 OUR PERFORMANCE
Gladstone Regional Council 2019/20 Annual Report Page 53 This section of the Annual Report displays how we have performed over the year. It demonstrates how our Corporate and Operational Plans work together and explains how we manage reporting. It outlines our performance on each of the projects we hoped to deliver over the year and shares Key Performance Indicators (KPIs). It also includes a summary of how we did financially for the year. This is shown in the Community Financial Report.
Gladstone Regional Council 2019/20 Annual Report Page 54 OUR PERFORMANCE Page 55
Informing Strategies
’
Innovate. Diversify. Vision Team Plans and Budget Connect. Annual Report Strategic Asset Corporate Plan Long Term Plans Operational Plan Management Plan Quarterly Reporting
Long Term Financial Plan
Continuous Improvement
Measurement and Reporting
Long Term Medium Term Short Term 2019/20 Annual Report This illustration of the strategic planning framework demonstrates how the Corporate Plan This illustration of the strategic planning framework demonstrates It also demonstrates the aligns to the vision, long term plans, Operational Plan and team plans. that guides all the work we interaction of strategies within the model. The vision is the element and the Operational Plan is a do. Our current Corporate Plan is a five-year plan (medium term) annual Operational Plan one-year plan (short term). We strive to complete projects within the Plan and vision. that provide step-by-step, forward progression, to the larger Corporate Strategic Planning Framework Planning Strategic for identifying continuous process a systematic and presents planning framework Our strategic are aligned to financial resources that strategies and ensures direction. The framework strategic corporate vision to ‘ achieve Council’s The framework includes long, medium and short-term plans which set direction for what we do plans which set direction for what long, medium and short-term The framework includes important community. This framework is an to achieve as an organisation for our and what we aim governance. of transparent and effective corporate part of our delivery Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE engaging withourresidents. We arecommittedto us todeterminehowwellwearedoingwitheachstrategicgoalandvisionintention. Corporate Plan.ThemeasuresaredividedintoaseriesofprogressindicatorsandKPIsthathelp in tandem.TheprojectsandKPIsaredesignedtodirectlyrespondthestrategicgoalsof funded fromtheannualbudgetandaccordingly,OperationalPlanBudgetarecompleted five-year CorporatePlanforthefinancialyear.TheprojectswithinannualOperationalare of projects,anticipatedoutcomes,andmeasureswhichensureprogressiveimplementationthe 2023 andrepresentstheshorterone-yeartimeframe.OurOperationalPlandetailsa12-monthlist The 2019/20OperationalPlanfollowsthestrategicdirectiondefinedinCorporate2018- intention andtwostrategicgoalstosupportthe‘Diversify’intention. goals tosupportthe‘Connect’visionintention,threestrategic‘Innovate’ clear commitmenttoourcommunity.Asyoucanseeintheillustration,wehavefourstrategic Within eachvisionintentionwehaveaseriesofstrategicgoals.Eachgoalstatesvery defined by innovation; and a region that celebrates the diversification of opportunities and lifestyle. to createastrongfabricofcommunityconnectedness;anorganisationwhosecultureisproudly These threevisionintentionsarewovenintoourstrategicgoalsandcommunitycommitments our vision: The strategicdirectiondefinedinourCorporatePlan2018-2023issetagainstthelandscapeof delivery. responsive mannerbyembracinginnovationandtakingavalue-formoneyapproachtoservice organisation todeliver.TheCorporatePlanenablesusmeetcommunityneedinanefficientand strategic planningdocument;guidingustotheneedsofourcommunityandfutureproofing The CorporatePlanisavitalpartofthestrategicplanningframeworkandservesasprimary Corporate andOperationalPlans 4. 3. 2. 1. government Ethical andresponsible Our people,ourvalues healthy community Healthy environment, proud communities Engaged, involvedand CONNECT 2019/20 AnnualReport CONNECT. 7. 6. 5. Operational excellence Smart assetmanagement service Outstanding customer INNOVATE.DIVERSIFY. INNOVATE 9. 8. Smart investment Grow theregion DIVERSIFY Page 56 OUR PERFORMANCE Page 57 targets are met on PERFORMANCE Monitor: occasion but not consistently Below target: targets are rarely met Complete: All activities and the project have milestones within expected been achieved. The accomplished. outcome has been The project is finished. Not Complete: Activities and outcomes were not delivered in full. This includes projects where an item is deemed no longer relevant and/or decisions have been made to cease the project. On track: targets are being met or exceeded SCORECARD DEFINITIONS PROJECTS KPIs Local 2019/20 Annual Report Quarter 1 Report September 2019 Quarter 2 Report December 2019 Quarter 3 Report March 2020 Final Report June 2020 Quartely Reports Government Act 2009. a comprehensive and This report provides of our Operational transparent account fiscal year 2019/20. The Plan delivery for the includes a summary of reporting section goals, and a performance our nine strategic projects that fed into the scorecard on 102 KPIs. goals including the Performance Reporting Performance Operational Plan report on our We formally demonstrating on a quarterly basis, progress to good governance and our commitment under the satisfying our obligations Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE community connectedness. creating astrongfabricof We haveacommitmentto their feedbackandcontributingtocommunitydecisions. people areconfidentinourengagementprocessesandactivelyparticipateproviding efficient, financiallyandsociallyresponsibleprovidevalueformoney.Wewillknow easy todealwithandunderstandsmyneeds’.Wewillbeseenbythecommunity Our communityisengaged,involvedandproud.Theysay,‘GladstoneRegionalCouncil Strategic Goal1.Engaged,involvedandproudcommunities. Vision: Connect Strategic GoalPerformance OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 7 NotComplete 9 There arenoKPIsrelatedto OVERALL PROGRESS-KPI strategic goal1. Page 58 Highlights
Conversations with Council to access that. Over the year 173 community members stopped and spoke with the Council started a fresh new communication councillors providing 31 customer service platform this year to foster a culture of requests and 42 suggestions. community-led decision making. Nine Conversations with Council (CwC) were held Community members were appreciative of over the year; three in Gladstone, one in the CwC joining the community and allowing Mount Larcom, one in the Boyne Valley, one them the time to ask questions, provide in Calliope, one in Rosedale, one in Wartburg feedback and make suggestions. Feedback and one in Agnes Waters. The conversations was received requesting that a variety of brought together community members to times be offered for working families on the connect, discuss and engage with Gladstone weekend or during evenings. Council adjusted Region Councillors and staff from Gladstone the calendar in 2020 to attend weekend Regional Council. Community members have community markets and several evening a wealth of information when it comes to events. Planned conversations in May and their community, and CwC is a great avenue June were cancelled due to COVID-19. PERFORMANCE OUR
Gladstone Regional Council 2019/20 Annual Report Page 59 OUR
Gladstone RegionalCouncil PERFORMANCE accreditation. across Australia, andisnowworkingtowards alongside 31localcouncils andgovernments Council joinedtheWelcoming CitiesNetwork, to takepartinallaspectsof thecommunity. from allbackgroundshave equalopportunity known asawelcomingregion wherepeople Council hastakenstepstobecomewidely recognition asawelcomingcity Council takesstepstoboostregion’s Top VisitedEngagementprojects 2019/20. Below isalistofthetopvisitedprojectsin https://conversations.gladstone.qld.gov.au. and activities,areavailableontheplatform about thoseprojects,aswellnewprojects with thecommunityon22topics.Information 665 members.Inthatperiod,weengaged 1930 contributions,112projectfollowersand the platformhad17,807views,7714visitors, In itsfirstsevenmonths(Nov/19–Jun/20), other communitymembers. sharing GladstoneRegioninformationwith photo competitions,askingquestionsand registering forCouncilevents,takingpartin have theirsayonlinebyansweringsurveys, the communitytointeractwithCounciland COVID-19. TheConversationssiteallow stayed intouchwithcommunityduring space, itcamejustintimetoensureCouncil November 2019.Asavirtualengagement Conversations, waslaunchedinlate Council’s onlineengagementplatform, Council’s Conversationcamejustintime! Highlights 2020 Law Amendments Subordinate Local Management Animal Families Precinct Communities and Philip Street Centre Neighbourhood Virtual Future Our Coast Engagement Road Community Baffle CreekLink Agnes Waterto Project Name 2019/20 AnnualReport Visitation % 9.4% 12.6% 13.3% 17.8% 18.7% Visits 1053 1414 1487 1990 2097 Visitors 967 1,209 990 1,214 1,570 on effectivehandwashing. year wehaveeducatedmore than200people and internallytoCouncilemployees. Overthe externally withmorethan50localbusinesses Handwashing demonstrationsweredelivered COVID-19. education platformwithspecificlinksto video wassharedandlinkedtoouronline effective handwashingcanbe.Aninnovative for peopletoseewiththeirowneyeshow after usinghandsanitiser.Itwasagreatway washing withsoap,withoutsoapand light toshowthegermsleftonhandsafter utilisation ofatoolkitthatusesultraviolet The programincludedthepurchaseand even morevital. COVID-19 inJanuarythisprogrambecame the vulnerablecommunity.Withonsetof business educationandinhealthsettingsfor This programwasdesignedtoassistwithfood germs andpreventillnessesinourregion. education programtoreducethespreadof with ourcommunitytodeliverahandwashing Our EnvironmentalHealthteamengaged Let’s washourhands sponsored events. to CountrypracticesatCounciland Acknowledgment toCountryandWelcome such asourSaikiSisterCityInitiativeand will contributetoachievingaccreditation Council alreadyhasinitiativesinplacethat progress overtime. future improvementsrequiredandassess policies, programsandinitiatives,identify benchmark itsculturaldiversityandinclusion to tapintosharedlearningandresources, inclusiveness andgrowth.Councilwillbeable is attheforefrontofignitingmulticultural multiculturalism andensuretheorganisation enable Counciltoalignwithbestpractice Registering asaWelcomingCitywill domestic andinternationalmarkets. economic opportunitiesandaccessto liveability throughtoprovidinggreater with theabilitytoinfluenceart,foodand diversity addsarichvibrancytocommunities population werebornoverseas.Cultural recording that14.4percentoftheregion’s cultural diversitywith2016censusdata The GladstoneRegionhasahighlevelof Page 60 OUR PERFORMANCE Page 61 Philip Street project reaches first major first major project reaches Philip Street milestone construction in January 2020 to Shovels hit the ground cubic metres of move more than 14,000 sewerage, electrical, dirt, and install water, stormwater and telecommunications Philip Street infrastructure at the Families Precinct. Communities and 1 of the Philip Street Construction of Stage Families Precinct, Council’s Communities and project, will see the highest priority strategic human and social delivery of an integrated future services hub to deliver current and service needs for the region. overseen The initial stage of the project was by local company Blomfield Excavations. to Workers on site used innovative ways installing capture water from rainfall events by This temporary dams to store water runoff. process water was used in the construction via moisture content control for earthworks compaction and to also supress dust. Stage 1 of the Philip Street Communities the and Families Precinct was funded by and Australian Government’s Regional Jobs Investment Packages, Gladstone Regional in Council and the Gladstone Foundation, The partnership with The Salvation Army. delivery of this precinct is truly a combined partners effort and together with our funding we look forward to delivering a facility of the that met the needs and aspirations Gladstone Region. 2019/20 Annual Report Highlights Elders our region’s Celebrating celebrations Reconciliation Week National year with a Reconciliation were opened this Morning Tea. The event Bush Tucker Elders respectful was designed to strengthen the region and relationships between Strait Islander peoples. Aboriginal and Torres to delivering Council is committed Reconciliation Action actions and future to foster an inclusive Plan programming positive, productive culture and increase local Aboriginal and Torres relationships with Strait Islander communities. The inaugural on Reconciliation Action Plan was launched been 29 May 2018 and the momentum has maintained since. National Reconciliation Week is celebrated each year between 27 May and 3 June of the commemorating the anniversaries High successful 1967 referendum and the Court Mabo decision. Construction commenced on the Philip Street Communities and Families Precinct Council’s highest priority strategic project. Gladstone Regional Council Challenges and Solutions
COVID-19 impacted the way we think about engaging our communities this past year. Since traditional delivery methods for community engagement could no longer be used, project teams met to re-think and create exciting new delivery methods that aligned with COVID-19 guidelines and kept our community and employees safe. Council introduced a new social media channel, Our Gladstone Region, which has been a welcome source of information about entertainment and events, community discussion and good news. The channel went live in February 2020 attracting significant growth in followers across both Facebook and Instagram since its launch. The Instagram page has had a 450 per cent increase in fans while Facebook followers have increased by 100 per cent. The audience is largely female going online between 3-9pm with 66 posts being shared on both channels in the first eight weeks. Videos were by far the most popular type of post, so Council continued to deliver information via this method. Followers have wanted to find out about holidaying at home and how our community resilience helps us endure the tough times. On 28 April 2020, Council livestreamed its General Council Meeting via its Facebook page, YouTube channel and website. Due to social distancing requirements, the venue changed
OUR from the traditional boardroom in the Gladstone Council Chambers to the Gladstone Entertainment Convention Centre. All attendees remained 1.5m apart and the public gallery was PERFORMANCE closed. Every Council meeting following has continued to be livestreamed with 17,686 views at end of financial year. Four per cent of these views were on YouTube with the remaining 96 per cent viewing via Facebook and community sentiment was positive overall. While livestreaming was introduced as a necessity to keep the community informed, it has continued as it shows good governance and transparency with decision making. After the release of Council’s new website in 2019 we have continued to improve our digital space introducing improvements and new capabilities around how we present content and interact with our customers. A cross organisational group have been brought together to form the Digital Experience group and work collaboratively towards challenges and improving our platforms in a synchronised and aligned way. Notably the release of Conversations, council’s online engagement platform has introduced new and exciting user experiences that enhance our ability to gain feedback and insight from our community. This platform was also used to provide people in the region with a virtual neighbourhood connecting our community while dealing with the impacts of COVID-19. The future of the digital space will continue to improve with more technological advances being readied to simplify how we deliver information to the community and provide services online.
Our team of technicians have delivered a high level livestream. Page 62 Looking into next year
• Practical completion of Stage 1A construction of the Philip Street Communities and Families Precinct in 2020 with an operational facility and precinct from mid-2021.
• Celebrating the Cassy Lives Skatepark upgrade with the community in 2020.
• Deliver a program of endorsed community initiatives through the Community Recovery Plan to better plan and manage disaster and recovery.
• $1.238M for the rejuvenation and upgrade of the Gladstone Aquatic Centre. Works include:
• Structural investigation prior to undertaking pool tilling repair works;
• Repair and renewal of facility buildings; PERFORMANCE
• Modifications and additions to the pool chemical dosing and filtration systems to OUR resolve non-compliance issues;
• Rejuvenation of pool surfaces and aquatic play park features; and
• Site boundary fence compliance upgrades.
• $279,000 to repair part of the floor structure at the Boyne Tannum Community Centre and associated refit works.
• $200,000 to renew and repair the Castle Tower Building verandahs at the Boyne Tannum Community Centre.
Updates to the Cassy Lives Skatepark will be complete in 2020.
Gladstone Regional Council 2019/20 Annual Report Page 63 OUR
Gladstone RegionalCouncil PERFORMANCE Botanic Gardensisapriority. The healthoftheTondoon improving thehealthandsafetyofcommunity. To takealeadershiproleinprotectingtheenvironment,usingresourcesefficientlyand Strategic Goal2.Healthyenvironment,healthycommunity. Vision: Connect OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 6 NotComplete 2 OVERALL PROGRESS-KPI 1 Ontrack Belowtarget 1 Monitor 1 Page 64 OUR PERFORMANCE Page 65 Keeping Tondoon healthy Keeping Gardens Tondoon Botanic Gladstone associated tree health completed a risk and The report provided a management report. health of our trees snapshot of the current and challenges our and what opportunities It will help guide trees face in the future. program to ensure the future tree works asset, its trees, will be our Gardens biggest their health and the managed to ensure and people in the long- safety of our visitors term future. An irrigation efficiency report, addressing also the Tondoon event space area, was regarding completed. A range of critical areas health, soil this event space area including soil compaction, soil nutrition, water infiltration addressed and irrigation efficiency have been the in the report to provide guidance for future management of this ever increasingly used community event area. The report future also provides recommendations for Gardens innovative water management at the used as to ensure this precious resource is effectively as possible. 2019/20 Annual Report Highlights Reef Clean removed dedicated volunteers A group of of rubbish from the almost one tonne Island National Park in late beaches of Curtis Reef Clean 2019 was October. Curtis Island ReefClean Program in held as part of the Blue Foundation. partnership with Tangaroa volunteers camped in Some of the clean-up over the weekend, with day the National Park mainland and the South trippers from the in as well. Together End community joining of beaches removing they cleaned up 5km and items such as plastics, metal, rope, sorted netting. 9715 individual items were Australia and counted with data added to the record Marine Debris Initiative Database to materials that are impacting beaches. wildlife, Marine debris is a serious threat to at risk with birds and other marine animals for food when mistaking the discarded items or becoming entangled. The Curtis Island Reef Clean was achieved of through the collaboration and support Queensland Parks and Wildlife, Tangaroa Council, Blue Foundation, Gladstone Regional Gladstone Local Marine Advisory Committee, Fitzroy Conservation Volunteers Australia, Basin Authority, Gidarjil Development Corporation, Shell QGC and CQUniversity. Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE role inourecosystem. Wetlands playanimportant Government GrantsProgram. Government’s CycleNetworkLocal with CouncilthroughtheQueensland The $320,000pathwasjointlyfunded community. road healthierresidentsandamorevibrant more peopleonbikes,lesscarsthe By creatinganenhancednetwork,wesee to placesthatareashortdistanceaway. Bike ridingisagreatwaytokeepfitandget local shoppingfacilities. Boyne/Tannum pathwaynetwork,aswell allows forthePacificRanchareatoaccess provides enhancedcommunityconnectivity.It forms partoftheBoyne/Tannumnetworkand and CycleStrategy.Thecompletedpathway the GladstoneRegionalCouncilPedestrian Road SharedPathworkswereidentifiedin and HamptonDrive.TheTannumSands footpath worksaroundCoronationDrive and pathwayswithCouncilcompleting saw improvedaccesstoshoppingfacilities Boyne IslandandTannumSandsresidents Let’s getphysical Highlights 2019/20 AnnualReport quality withinthePortCurtiscatchment. potential impactsofouractivitiesandwater will supportCounciltobetterunderstandthe data providedbythiscollaborativeprogram Monitoring Program. Access to the monitoring contributing tothePortCurtisIntegrated Key highlightsincludedCouncilreturningand environment andconservationstrategies. to supportthefuturedevelopmentof we completedthedatacollectionprogram and threatstohumansafety.Withinthisyear well asbalanceongoingoperationalcosts operations onthenaturalenvironmentas Council iskeentoreducetheimpactofits Conservation Strategy Implementing ourEnvironmentand Page 66 OUR PERFORMANCE Page 67 Secure Effluent Disposal Secure Effluent land within to acquire Council resolved for irrigated Calliope to meet requirements from the Calliope effluent disposal Plant. Wastewater Treatment is an effective way of Recycling effluent of our waste on reducing the impact The decision the natural environment. viability of wastewater ensures the future Calliope and reduces management within supply. demand on our water 2019/20 Annual Report Highlights Canoe Point wetlands Restoring were at Canoe volunteers Our community Day, February Point on World Wetlands planted 147 sedges, 2020. Sixteen volunteers along the Canoe saltbushes and acacias in our continued efforts to Point Botanic Walk wetlands environment. maintain the natural because they protect Wetlands are important action, reduce flood shorelines from wave and improve water impacts, absorb pollutants expert and author, Ted quality. Local bird the value of the diverse Wnorowski, discussed Canoe coastal vegetation communities at Point, including the nationally endangered and littoral rainforest which provides food the most habitat for birds. This area is one of with diverse sites in the Gladstone Region include over 160 bird species recorded. They nocturnal birds such as the tawny frogmouth, white-throated nightjar and two breeding such pairs of barking owls, rainforest species fruit as the emerald dove and rose-crowned as red- dove and migratory shorebirds such capped plovers, oystercatchers, whimbrels and curlews. by The Canoe Point event was facilitated Conservation Volunteers Australia and Council with support from Fitzroy Basin the Association Inc. through funding from Australian Government’s National Landcare Program. Gladstone Regional Council Challenges and Solutions
Biodiveristy - Ecofest, Central Queensland’s largest environmental awareness event, was forced to go virtual this year due to COVID-19 restrictions. The event was hosted by Council in an online setting and took the opportunity to educate the community on biodiversity. It was a weeklong event with fresh online content rolled out each day via Council’s Facebook page and the recently launched Virtual Neighbourhood Centre. Although the community was not able to attend the event at the Tondoon Botanic Gardens there was plenty to watch, listen and do online. Activities included a nature walk scavenger hunt, digital colouring competition, art video series and a seagrass vs. zombies game. Council was pleased to share the online event with local partners Conservation Volunteer Australia, CQUniversity, Gladstone Ports Corporation, Gladstone Wildlife Careers, Queensland Alumina Limited, Road Runners and Tangaroa Blue. Help, I’m thirsty! - The Gladstone Region experienced its worst drought in 17 years in 2019. A drought management committee was formed and collaborated with the most effected township being Miriam Vale. Council took this opportunity to work on a broad front for the betterment of Miriam Vale township. We applied the learnings from Miriam Vale to the forward planning strategy of the Lake Awoonga Scheme level restrictions review. Thankfully, the region received rain on Christmas Day and into the
OUR new year easing the burden for this scheme. During the drought modification upgrade (the Baffle Creek PERFORMANCE bore installation), a pre-existing design issue was found within the treatment plant’s filter cleaning and potable water supply systems connected to the township. These two systems were directly coupled together, meaning that if an issue arose with the upstream filter cleaning system it would invariably flow through to the potable water supply system and onto the township, causing regulatory non-compliances. Once this issue was identified, a design review was conducted, which included external parties, of the two systems (filter and potable). It was determined that the only process for eliminating this issue was through an engineering control (in reference to the hierarchy of control). A new design was completed which separated the two systems so the potable water supply would not be affected by a failure or malfunction of the upstream filtering cleaning system. A Hazard and Operations Study (HAZOP) was conducted on the new design, again including external parties. Once the HAZOP was completed, the final design was approved for construction. Upon installation of the new pipework and valves separating the two systems, testing was conducted on the treatment plant’s Critical Control Points to demonstrate the plant’s ability to safely shutdown once these regulated points had been reached. The primary reason for this testing was to ensure the safety of the water supply. After this testing, there was a five-day proof of performance water treatment testing period to produce water within specification over a longer period. Upon completion of this testing, the treatment plant was recoupled to the town’s potable water supply and the automated treatment process enabled.
A lack of rain had a significant impact on our region. Page 68 Looking into next year
• Building the Coastal Hazard Adaptation Strategy (CHAS), as part of the Our Coast. Our Future project. The Strategy will assist the region to understand future coastal hazard risks and identify potential adaptation actions to respond over time. CHAS is a funded project provided by LGAQ via the QCoast2100 Program.
• Commencing a review of the current Biodiversity Plan to achieve a planned update in the following financial year. The Biosecurity Plan is Council’s guideline for managing invasive plants and animals within its borders and includes collaboration with neighbouring councils.
• $325,000 to renew and upgrade Cassy Lives Skate Park to address safety issues as well as associated work (e.g. landscaping, seating and
pathways to link park existing pathways). PERFORMANCE
• $427,200 towards continued replacement of playground equipment within the region OUR Playground Replacement Program.
• $400,000 for the installation of a second weighbridge at Benaraby Landfill.
We will continue to protect our coastlines for the future.
Gladstone Regional Council 2019/20 Annual Report Page 69 OUR
Gladstone RegionalCouncil PERFORMANCE within Council. strengthened relationships Communication has our performancemanagementwillbemeaningful. succession planning;mentoring;talentidentificationandutilisation;recognition, inclusive andcollaborative.Weareestablishingprogramsforlearningdevelopment; and purpose,withcommunityengagementattheforefront.Weareaccountable, operate ourbusiness.Wehavevisibleandaccessibleleadersthatprovidecleardirection Safe andengagedpeopleensureswewillhaveasafetyculturethatunderlieshow Our successisbuiltonafoundationofsafe,engaged,highperformingtalentandteams. Strategic Goal3.Ourpeople,ourvalues. Vision: Connect OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 7 NotComplete 2 OVERALL PROGRESS-KPI 1 Ontrack Belowtarget Monitor 1 Page 70 OUR PERFORMANCE Page 71 Development of a communication plan Development of a Corporate Plan and to embed Council’s Business Strategy to facilitate visibility Improved technology and incident around safety management reporting ‘Good to Great’ to Implementation of performance and facilitate meaningful between development conversations leaders employees and people Our Brand and Communications Team played a critical role in supporting communication during COVID-19 and of change communication against a milieu and ongoing, rapid organisation change transformation. In response, the following has been the following In response, addressed: • • • • percentile in th 2019/20 Annual Report Clearly communicate Council’s business Clearly communicate Council’s business strategy, objectives and plans A stronger focus on articulating the outcomes of safety incidents and learnings A need for role clarity and accountabilities Better communication within workgroups and the whole of organisation. Highlights Engagement Employee that it is widely recognised At Council, is a key component for employee engagement Employee engagement organisation success. momentum over the has gained significant within local and state past several years research demonstrates governments. The leads to better that increased engagement greater productivity, outcomes including reduced absenteeism, higher retention rates, service and heightened improved levels of alignment and engagement staff wellbeing. An 2019 survey was conducted in September with a pleasing nine per cent engagement A increment increase from 2017 results. with survey is planned for December 2020 further projected improvement towards our objective to be in the 75 comparison to similar organisations. 2019 Key areas of focus identified in survey results: • • • • Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE communication strategies. effective employee We areimplementing the COVID-19pandemic. people andbuildingtrust,particularlyduring to strengthening relationships, connecting our communications functionasakeycontributor within the strategy has embedded the internal approach toimplementingkeydeliverables and regionallydispersedworkforce.Council’s effective communicationswithitsdiverse establishing asolidfoundationforensuring Phase oneofthestrategyfocusedon building ahighperformanceculture. for consistentandcontinuouspromotionof and operationaldirection,objectives engage employeesinadoptingitsstrategic Through thisactionCouncilcommittedto develop aninternalcommunicationsstrategy. in Council’s2019/20OperationalPlanto An OperationalPlanactionwasincluded communicate effectivelywithourworkforce. an importantpartofimprovingourabilityto internal communicationswasrecognisedas However, theimportanceofdedicated to managinginternalcommunications. Historically, wehavenothadaclearapproach Let’s talk Highlights 2019/20 AnnualReport Page 72 Building the workforce for the future The apprentice and traineeship program builds and strengthens the regions workforce In March 11 business trainees, two for the future. apprentice mechanical fitters, an apprentice diesel fitter, waste management trainee, We take pride in helping facilitate the warehousing trainee, process operator upskilling of our community across a diverse trainee, conservation and land management range of roles at a variety of locations. trainee, apprentice plumber and apprentice electrician were inducted and commenced We look forward to watching our newest their employment and education with Council. recruits grow and develop throughout their time with Council. The 20 new apprentices and trainees were the successful candidates selected from 1115 applications. PERFORMANCE OUR
Gladstone Regional Council 2019/20 Annual Report Page 73 Challenges and Solutions
COVID-19 - presented several limitations on our typical work practices and interactions. Our Environmental Health team were quick to jump to the call by educating employees with two updated online modules for hand hygiene and infection control. More than 81 per cent of employees have completed both modules.
Implementation of our People Strategy - Work has commenced on engaging with the business to inform the People Strategy development. Best practice data analytic methodology has been deployed, through surveys, directed at key stakeholders within Council. Insightful data has informed key priorities and relevance of services and initiatives from an internal customer perspective. Key outcomes and initiatives identified were:
• Improving safety awareness and developing a safety culture
• Creating a leadership development capability framework with development solutions
• Uplifting capability at a Team Leader/operational level to create an engaged, empowered and safe workforce
OUR • Strengthen performance and development planning with emphasis on career development.
PERFORMANCE The above priorities are progressing according to projected timeframes with targeted delivery by 31 December 2020. The full people strategy will support the Corporate Plan through to 30 June 2023.
Our people will continue to be a priority. Page 74 Looking into next year
• Effective business partnering across PCS service areas (Safety, HR and Training) to support the growth of our frontline Leaders.
• Leadership Capabilities Framework implemented and development programs underway.
• Prepare for the negotiations of the next Certified Agreement.
• Embed a safety management system to create a safe, secure and well-managed workplace that identifies and minimises hazards and helps reduce incidents and injuries.
• Deliver the Employee Engagement Survey action plan and communicate the progress of implementation with our people. PERFORMANCE OUR
We want our people to be proud of where they work.
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Gladstone RegionalCouncil PERFORMANCE maintaining compliance. on minimisingriskand We haveastrongfocus accountability. governance, riskmanagement,andcomplianceawareness,processes,reporting To createaculturethatminimizesriskandmaintainscompliancebystrengthening Strategic Goal4.Ethicalandresponsiblegovernment. Vision: Connect OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 8 NotComplete 9 OVERALL PROGRESS-KPI 2 Ontrack Belowtarget Monitor 1 Page 76 Highlights
Staying the course in Governance Reducing exposure
The Governance Team worked hard ensuring Integrated interactions between Audit and the organisation adapted quickly to legislative Enterprise Risk teams commenced which change, including playing a key role in enhanced Council’s ability to manage risk capturing and tracking the organisation’s exposure. response to the COVID-19 global pandemic. The team was involved in ensuring our newly elected Councillors were orientated and informed of their governance responsibilities as the Mayor and Councillors commenced their new term, including supporting the review of representation on internal and external Committees. The team has successfully continued its role in coordinating Council and Executive Team meetings, providing legal advice to the organisation, overseeing risk, managing escalated complaints and reviewing the considerable body of local laws, policies and corporate standards that guide how we conduct PERFORMANCE business. OUR
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Gladstone RegionalCouncil PERFORMANCE region beautiful. and recycletokeepour We strivetoreduce,reuse technologies availablewithintheregion. investment intherecyclablesprocessing costs andencouragegreaterinnovation economies ofscale,reducetransaction enable thecollectiveCouncilstoleverage conduct laterthisyear.Authorisationwill ACCC authorisationofthecollaborative team arelookingforwardtoreceivingfinal interim authorisationfromtheACCC, processing services.Afterhavingreceived collaborative procurementofrecyclables and LivingstoneShireCouncilinthe Council, CentralHighlandsRegionalCouncil Regional Council,Rockhampton authorisation oftheconductGladstone for non-mergerauthorisationseeking Consumer Commission(ACCC)Application the leadonanAustralianCompetitionand The GovernanceTeamhavealsotaken Investing inRecycling Highlights 2019/20 AnnualReport resources forspecialisedreviewsasneeded. with theoptiontoapplyexpertexternal The deliveryoftheplanusesteamknowledge responsiveness indeliveringauditfindings. our abilitytodeliverassuranceand Committee andservestostrengthen overseen bytheAudit,RiskandImprovement was builtandlaunchedthisyear.Theplanis A risk-based,three-yearInternalAuditPlan Building auditstrength Page 78 OUR PERFORMANCE Page 79 The business introduced the first software introduced the The business in June Contractor Management, module, 2020. approach to This streamlines Council’s making contract compliance support easier for the management processes Suppliers and organisation’s Contract as providing a platform contractors, as well inductions. for online contractor to meet its Workplace This supports Council and provides Health & Safety obligations contractor and sub- greater visibility of contractor compliance and competencies. The mobile device compatibility of the software makes it easier for Council and employees conducting field audits reporting incidents in real time. are As the remaining software modules and established, these will be rolled out implemented gradually into the business. 2019/20 Annual Report Making compliance easier Making to meet legislative We are required reporting requirements performance and manage risk, incidents and related to how we audit. an integrated Council is implementing providing effective and software solution capture data for these efficient tools to to ensure our people, compliance activities are safe. community and environment will make it easier for An integrated solution employees, as various software solutions are being used to perform these activities consolidated. single The software provider will supply a for platform to perform incident reporting safety, environment and cybersecurity, and management, action and auditing internal identifying and managing risks. will Greater visibility of data and trends provide enhanced capabilities for reporting and with visibility of how we are performing be identifying where improvements can made. Gladstone Regional Council Challenges and Solutions
Completing Audit Plan despite COVID-19 - The COVID-19 pandemic has disrupted most people from most walks of life in some way. Completing the Annual Internal Audit Plan, despite constraints around social distancing, presented an unexpected challenge this year. How we addressed the issue – The Audit Team adapted to using technology as much as possible, and when restrictions were lifted, worked well with Council employees to efficiently close out outstanding tasks. Delivering Code of Conduct training in new ways - At the start of 2019/20 Council intended to provide Code of Conduct training to 100 per cent of new starters. The COVID-19 pandemic prevented delivering conventional training, mainly due to social distancing and other disruptions. How we addressed the issue - The Audit Team developed a new online training methodology and recently commenced conventional training for new starters. We anticipate that 100 per cent of new starters will be trained and caught up by the first quarter of 2020/21. Introducing new safety and compliance software - An integrated technology system is crucial, with a single dashboard and gateway to other systems. It was, however,
OUR quite a challenge to design and implement a new system in a large and diverse organisation such as Council, with different business units at different levels of proficiency and exposure. PERFORMANCE How we addressed the issue – We worked closely with our internal experts in Strategic Information Communications and Technology and change management to ensure the roll-out was smooth and successful.
We have a strong focus on creating a safe, inclusive and efficient work environment. Page 80 Looking into next year
• Implementation of an integrated software solution for managing incident, risk, internal audit and contractors to ensure our people, community and environment is safe.
• Work more collaboratively with the business to complete an extensive Annual Internal Audit Plan for the 2020/21 year and beyond.
• Use external expertise to cover the crucial areas of Privacy, Safety, Security and Probity.
• Make up the backlog of Code of Conduct training caused by the COVID-19 pandemic for new starters, by launching an online version of this training.
• Ensure the Internal Audit team is best suited to adapt to ever-changing Council requirements, to best support the Council. PERFORMANCE
• Improving the organisation’s capability in OUR reporting and managing incidents and risks.
• Continuing the journey towards governance excellence.
Safety is our number one priority.
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Gladstone RegionalCouncil PERFORMANCE with ourcommunity. authentic connections We aimtomake customer service. We haveareputationforbeingeasytodealwithanddeliveringvaluemoney Strategic Goal5.Outstandingcustomerservice. Vision: Innovate OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 8 NotComplete OVERALL PROGRESS-KPI 1 Ontrack Belowtarget Monitor 1 Page 82 Highlights
Service Experience Strategy Analysing how we interact with the Community Council is committed to having a reputation for being easy to deal with and delivering Implementation of an Interaction Analytics value for money. To achieve this goal, we tool has allowed us to listen to our Customers must think of customer experience as part and lean into improving their experiences of our whole business approach. Following when they engage with us. By sampling 100 the successful completion of the Customer per cent of our conversations we now have Service Strategy in 2018/19, the Service access to validated data providing sentiment Experience Plan was built this year to and demand analysis at scale, ensuring articulate the principles, set the objectives, compliance, quality and insight into the voice goals and measures of maturity and success of our customers. This lets us know what the for us to commit to and act on. The Service hot topics are, what drives demand, which Experience Strategy also addresses the in turn lets us set ourselves up to meet that experience our employees have in their demand across our channels and through interactions within the organisation when proactive communication on social media. they interact with and embark in internal customer service journeys. The employee experience, their engagement and alignment to our vision is key to the successful fulfilment of our service promise to our community. PERFORMANCE OUR
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Gladstone RegionalCouncil PERFORMANCE operational excellence. opportunities tosupport We continuallyseekinnovative successes. expectations, targetedsupportandcelebrate interact withus.Wecangiveourteamsclear we aremakingiteasierforourcustomersto frameworks forcustomerservicedelivery, By embeddingCouncil’svaluesintoquality contact centres. counter havebeencreatedtosupportour email, SMS,webchat,socialmediaand customer servicechannelsincluding,phone, and supportingmaterialsforvarious business unitthisyear.Qualityframeworks delivered acrosstheCustomerExperience Phase twooftheQualityprogramwas Embedding industryleadingbestpractice Highlights 2019/20 AnnualReport how wedoourwork. intuitive waysthatwillunlocknewpotentialin interrogate andexploreinformationinvisually ability toself-servetheirdashboardsand We willbeempoweringourofficerswiththe officers andourcommunity. to provideamuchricherexperienceforour mature inthisspace,weexpecttobeable and demandsforourorganisationaswe will provideevenmorevisibilitytotrends needs. Theintroductionofvoiceanalytics gaining valuableinsightsintoourcommunity’s interactively haveallowedourofficerstostart connect toourdataresponsively,visuallyand Integrations andimprovementsinhowwe Gaining communityinsight Page 84 OUR PERFORMANCE Page 85
contacts resolved in contacts ‘I got the help I needed’ for You made it easy ‘My enquiry was resolved today’ ‘My enquiry was resolved I’ve ‘This is the first time 78.3% Customer Solutions 93% 96% me to do what I wanted’ 80% 78% contacted you about this issue’ contacted you about 85.65% 10.86% Excellent
1.75%
query? 0.33% How would you
rate the response 1.43% or solution to your Poor 85.88% 11.28% Excellent 2019/20 Annual Report
1.05%
0.074% How would your query? you rate the
understanding of 0.84% Customer insight Customer Poor Our new analytics system allows us to gather allows us to gather analytics system Our new our interactions with the amazing data about our services to suit. community and orientate dashboard started in The Customer insights our data from November to Nov 2019. This is sentiment score is based June. The community “ How likely are you to off of the questions . . . .?” Anything over a zero is recommend GRC considered positively. Gladstone Regional Council Challenges and Solutions
Moving to the web - COVID-19 changed our customer facing business overnight, with face to face services forced to close and our Customer Solutions team working remotely. Our robust training pathways and flexible, engaged employees allowed us to move our focus to telephone and webchat ensuring we were where our customers needed us to be. Development Services a one stop shop - Development Services now undertake advice, assessment, approval and inspection for Driveways and Buildings over and adjacent to Council Infrastructure applications throughout the region. For developments that may require a combination of approvals such as planning, engineering, building and plumbing, customers now only interact with a single department. Development Services processes are ensuring each approval takes into consideration the subsequent approvals required to deliver the customers preferred built form in a compliant and safe manner. OUR PERFORMANCE
We maintained critical services for our community, including water, waste, road maintenance, sewerage and cemeteries, during the COVID-19 health emergency. Page 86 Looking into next year
• Increasing leverage of analytics and better understanding our customers’ needs and priorities.
• Enhancing digital solutions to streamline and reduce paperwork associated with planning approvals.
• Develop a renewed catalogue of all Council services so the community understands the value and cost of delivery. PERFORMANCE OUR
Our focus on innovation and diversification helps grow our region.
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Gladstone RegionalCouncil PERFORMANCE visitors inthe2019/20year. new visitationrecordwith274,179 Tondoon BotanicGardenshasa current andfuturegenerations. and supportsthelifestyleeconomicgoalssustainabilityofregionfor reliable, affordable,safeandsustainableinfrastructureisavailableforthecommunity Our assetmanagementpracticessupportsmartinfrastructuredecisionsandensure Strategic Goal6.Smartassetmanagement. Vision: Innovate OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 7 NotComplete 8 OVERALL PROGRESS-KPI 1 Ontrack Belowtarget Monitor Page 88 Highlights
Measuring water accurately Reducing costs and improving reliability
Council completed a water meter Strategic Asset Performance has developed replacement program in the region in late 75 planned maintenance programs in August through to early November 2019 with water and sewer as well as 44 in parks. more than 4200 meters replaced. The implementation of these maintenance schedules will drive the culture change to Works to replace ageing infrastructure were move from reactive maintenance to planned completed in Barney Point, Benaraby, Boyne maintenance. This culture change is designed Island, Boyne Valley, Byellee, Callemondah, to increase the reliability of assets across our Calliope, Clinton, East End, Gladstone, Glen community, reduce failure rates of critical Eden, Iveragh, Kin Kora, Kirkwood, Mount assets and, over time, reduce operating costs. Larcom, New Auckland, South Gladstone, Sun Valley, Tannum Sands, Telina, Toolooa and West Gladstone.
Since measurement accuracy of water meters typically declines with age, there is a need for Council to replace them at appropriate intervals to be able to capture accurate
water usage data. The replacement program PERFORMANCE targeted properties with water meters which were more than 10 years old. OUR
Gladstone Regional Council 2019/20 Annual Report Page 89 OUR
Gladstone RegionalCouncil PERFORMANCE competitive advantage. economic assetswhichprovidea Our regionhasmanynaturaland online. roads, whichisabletobeviewedandedited works programforsealedandunsealed has assistedCounciltocreateafiveyear condition ratingoftheroad.Thistechnology and roughnessdatatoaidinthecreationofa RACAS captureshighdefinitionimages,GPS Assessment System(RACAS)technology. completed usingRoadAssetCondition and unsealedroadnetworkshavebeen Condition assessmentsfortheentiresealed Rating roadconditions Highlights 2019/20 AnnualReport very clearandtransparentprocesses. consistency aroundthisdecisionmaking,with policy willguidedecisionmaking,provide sustainability andinterestsofCouncil.This service deliveryaswellthefinancial requirements tosupportthecommunity, transactions inaccordancewithlegislative structured frameworkthatmanagesitsland a needforpropertypolicytoprovide It wasidentifiedbyCouncilthatthere Creating financialstability Page 90 Registering important land data
Council owns and manages more than 1000 parcels of land. Registers have been created to capture the necessary data to provide a single source of truth to effectively manage this land and be able to strategically plan how this land will be used into the future to benefit Council and our community. To ensure decision making is based on the most current data, Council is committed to regularly updating these registers as data becomes available. PERFORMANCE OUR
Gladstone Regional Council 2019/20 Annual Report Page 91 Challenges and Solutions
Our historic asset management system was managed in a decentralised manner without any clear or documented plan to address such issues as asset lifecycle costs, planning, budgeting and reporting. In 2018, Council’s leadership of asset management changed in a positive manner and continues to do so. A goal this year was to implement crucial actions to rebuild Council’s asset management system in line with ISO55001. Leaders and key staff across all business units collaborated extensively to develop six core Asset Management Plans. Technology was utilised during COVID-19 restrictions to ensure the project stayed on track and targets for the year were met. A plan to review and update the Asset Management Plans and Long Term Asset Management Plan will be delivered over the next 12 months. OUR PERFORMANCE
Our parks provide endless opportunities for residents to connect through play. Page 92 Looking into next year
• Our Asset Governance team are building a business manual to support the implementation of an asset management system for Council. The manual will ensure safe, reliable and affordable services, that meet community expectations, are delivered to the community.
• Council is developing an Asset Information Strategy that will assess and identify the current state of our asset information and data within the business and articulate an end stat on how to acquire, store, utilise, assess, improve, archive and dispose of asset information to sustain levels of data quality required to support business activities.
• $1.8M to renew the sewerage pump station A06 in Gladstone, including converting wet/dry
well to a full wet well, replacement of pumps PERFORMANCE that have reached end of life and renewal of associated assets (e.g. electrical). OUR • $380,500 to construct stormwater mitigation measures at the Gladstone Wastewater Treatment Plant.
We are continually seeking opportunities that support smart infrastructure decisions.
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Gladstone RegionalCouncil PERFORMANCE assets responsibly. maintaining ourcommunity We arecommittedto work atlowercostandrisk. our operationsbycontinuouslyimprovingabilitytoconsistentlyandreliablydeliver Strengthen ourcompetitiveadvantageandachieveindustry-leadingperformancein Strategic Goal7.Operationalexcellence. Vision: Innovate OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 9 NotComplete 3 OVERALL PROGRESS-KPI 1 Ontrack Belowtarget Monitor Page 94 Highlights
The future is safe Disaster management
This year we introduced two remote control Queensland’s Disaster Management System is mowers into our fleet. These mowers have based on internationally recognised concepts enabled us to eliminate some risks associated and principles. The system incorporates an with undertaking mowing activities in sloping ‘all agencies’ approach that involves all levels terrain around the region. Staff enjoy using of government, numerous organisations and this new technology to undertake our mowing agencies as well as the community. In doing maintenance. our part as a local government the Local Disaster Management Plan was updated and Transforming our Maintenance amended over the year. Works Planning and Scheduling frameworks were developed, and implementation commenced for project and maintenance management. TechnologyOne has been selected from the computerised maintenance management system and implementation will commence in the first quarter of 2020/21 as part of the ‘Transforming Our Maintenance’
project across the business. Visibility and PERFORMANCE transparency have improved for the capital portfolio utilising the major and minor project OUR management frameworks and improved project controls fundamentals.
Gladstone Regional Council 2019/20 Annual Report Page 95 Challenges and Solutions
Preparing for Emergency - The safety of the community is of great importance to Council. The goal this year was to develop and implement an improved plan with an enhanced focus on community preparedness. The plan was developed and approved in September. When COVID-19 arrived, face-to-face community engagement halted abruptly. Knowing the value of engagement, teams banded together and altered the plan to utilise the benefits of social media and our website. The website was used to spread messages about the importance of preparedness and how to prepare. It also hosts our community online platform for reliable, current information during emergencies and disasters. Agreements were drafted and implemented to draw on both radio and TV advertising for the remainder of the preparedness season. OUR PERFORMANCE
We are working together to build a resilient community. Page 96 Looking into next year
• Align our processes, systems and people to successfully deliver Council’s work programs for the community’s benefit.
• Implement an improved maintenance management process to enable delivery of efficient and effective maintenance programs across the business. PERFORMANCE OUR
RegionWatch is our community’s online platform for reliable, up-to-date and vital information during emergencies and disasters.
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Gladstone RegionalCouncil PERFORMANCE economic development. events promotes Hosting largescale prosperity. Actively promoteandsupporttheGladstoneRegionenableitsgrowth Strategic Goal8.Growtheregion. Vision: Diversify OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 4 NotComplete 1 OVERALL PROGRESS-KPI 2 Ontrack Belowtarget Monitor Page 98 Highlights
Economic Development Strategy
The Gladstone Region, along with the national and global economy, is transitioning to a less carbon intensive and more renewable based economy. Our region is particularly well placed to be a strategic location for the development of renewable energy, bio futures and hydrogen projects and Council is committed to maintaining our region as an economic powerhouse. PERFORMANCE OUR
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Gladstone RegionalCouncil PERFORMANCE diverse region. dynamic, proudand We arebuildinga The enginewasdonatedbyScania. took placeinpartnershipwithSouthernOils. revolution inthestate.Theunveilingtoday stimulating anindustrialbiotechnology Biofutures RoadmapandActionPlan, objectives oftheQueenslandGovernment’s diesel products.Thepilotplantalignswiththe is thenrefinedintosaleablekeroseneand feedstock toproducebiocrudeoil,which as sugarcanebagasseandpricklyacacia Plant usesbiomassandwastematerialsuch The NorthernOilAdvancedBiofuelsPilot the industry. the spaceforfurtheradvancementswithin the region’sstrategicadvantagestoprovide system becomesareality,itagainhighlights the moveintoacommercialrenewablediesel and innovatingwithintheenergysectors.As time againwearecommittedtodeveloping The GladstoneRegionhasprovedtimeand Biofuels PilotPlantthispastyear. generator attheNorthernOilAdvanced Yarwun welcomedacommercialsizediesel Gladstone Region Renewable dieselsystemnowarealityin Highlights 2019/20 AnnualReport restrictions. digital mediaplatformsduringourCOVID-19 in developmentopportunitiesthrough year andcontinuestoreceivestronginterest and internationaldelegationsthroughoutthe The GladstoneRegionhashostednational improve CentralQueensland. of significanceandadvocacyopportunitiesto CEOs oftheregioncollaboratingonprojects Organisation ofCouncilswiththeMayorsand member oftheCentralQueenslandRegional infrastructure delivery.Councilisanactive Agribusiness andregionalenabling various regionalgroupsacrosstransport, Local ContentLeadersNetworkaswell Economic DevelopmentAdvisoryGroup, Recovery Subgroup,GladstoneRegional Practitioners Network,COVID-19Economic Gladstone RegionEconomicDevelopment Gladstone Region.Thegroupsincludethe the decisionsandintereststhatinfluence economic developmentgroupstosupport collaboration acrossawidespectrumof Council continuestobuildalliancesandlead internationally Networking locally,nationallyand Page 100 OUR PERFORMANCE Page 101 Inland Rail Extension to the Port of Extension to the Inland Rail Gladstone Sports Complex Gladstone Coal Exporters – Marly Brown Oval Grants Federal Assistance Area (DPA) for Distribution Priority General Practitioners Program. Drought Communities • • • • • to growing We remain committed other levels of government partnerships with benefit of and external organisations for the our community. 2019/20 Annual Report Gladstone Heavy Vehicle Transport Gladstone Heavy Vehicle Transport Corridor including Gladstone Port Access Road Stage 2 Priorities support regional investment support regional Priorities and consultation Council, following regional Stakeholders collaboration with developed the Strategic and the Community, to raise awareness of Priorities document and policy initiatives strategic infrastructure for the region. used by Council to The document was with the Queensland support discussions investment in our Government regarding region. opportunities identified priorities strategic The and major to build on regional specialisations industrial facilities. Identified strategic priorities included; • Gladstone Regional Council Challenges and Solutions
One of the Destination Tourism Plan priorities for the Gladstone Region is the drive market and Recreational Vehicles (RV) have been identified as a potential growth opportunity for the region. Currently, locations such as Agnes Water and Seventeen Seventy have carrying capacity issues during high seasons, with caravan parks experiencing 100 per cent occupancy and illegal free camping occurring. There are no free camping/RV friendly sites within Gladstone. The RV Strategy, developed in 2019, highlights the potential to develop RV friendly sites in the region to grow Gladstone Region’s reputation as an RV Friendly destination. By capturing and enticing the RV market to our region, we have exciting opportunities to: • Harness the potential of the market growth for the economic benefit of the region • Adequately manage the market growth for potential environmental impacts • Promotes the opportunities and sites available with its key partners, including GAPDL and Discovery Coast Tourism and Commerce • Address overflow and illegal free camping for areas currently experiencing capacity issues. OUR PERFORMANCE
We aim to provide reliable, affordable, safe and sustainable assets. Page 102 Looking into next year
We have engaged suitably qualified consultants to work with us, and regional stakeholders, to develop a new Economic Development Strategy to inform and guide the region to economic prosperity.
The previous strategy was developed in 2015 and there have been significant changes in the local region and the broader state, national and global economic context. As such, it is timely to review and update the strategy in order to continue the region’s economic evolution. The new strategy will be based on detailed economic research and analysis as well as engagement with a diverse range of stakeholders to envision a future economy that is more diverse and sustainable. The Gladstone Region economy has been characterised, impacted and sustained by the development and operation of world scale industries and the supporting supply chains. This,
together with the world class working natural PERFORMANCE asset of the Port of Gladstone, has seen the region
evolve as a vital economic and industrial region for OUR Australia.
The new Gladstone Region Economic Development Strategy will frame the vision for future regional economic development and set clear and measurable objectives and initiatives to deliver investment, employment, innovation, sustainability and diversity for the Gladstone Region community, Queensland and Australia. The Strategy development will be delivered in early 2021 and activated over the next four years.
• Development of the Boyne Burnett Inland Rail Trail (BBIRT) on the disused rail corridor land between Reids Creek (Gayndah) and Taragoola (Calliope) for the purpose of establishing the asset into a highly recognised rail trail destination fit for cycling, walking and horse-riding, as part of the Queensland Inland Rail Trail network.
• The activation of the new Gladstone Region Economic Development Strategy 2021-2025.
• Activating and completing the recovery actions identified in the Gladstone Region – Reviving Our Community for a Brighter Future – an action plan for the Gladstone Region to recover from COVID-19.
• Deliver a program of endorsed initiatives from the Economic Recovery Group to better position the region for economic recovery.
• $150,000 for safety improvements to the Gladstone Entertainment Convention Centre. Gladstone Entertainment Convention Centre is the perfect space for collaboration, celebration, learning and innovation.
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Gladstone RegionalCouncil PERFORMANCE decision making. technology toassistintheir Our peopleuseinnovative ratepayers. Wewillactivelyleveragetechnologytoreduceoperationalcosts. we arestrongenoughtoaddressfuturechallengeswithoutplacingadditionalburdenon Continually improveCouncil’sresilienceandsustainabilityoverthelong-termtoensure Strategic Goal9.SmartInvestment. Vision: Diversify OVERALL PROGRESS-Projects Complete 2019/20 AnnualReport 9 NotComplete 3 OVERALL PROGRESS-KPI 2 Ontrack Belowtarget Monitor Page 104 Highlights
Enhancing grant success Looking good online
Council’s Strategic Grants Plan was Council launched a ‘new look’ website in June developed to support a structured approach 2019. The refreshed, revitalised and ready for to stakeholder stewardship and effective action, site was built after consultation with management of grant-seeking processes the community. The website was redeveloped from project inception to completion. The to improve the useability, searchability, visual Strategic Grants Plan supports us to build on appeal and accuracy of information. Council’s existing grant successes and has helped to goal is that the new and improved website embed a funder-centric approach to grant would create an improved customer service seeking. Council will continue the two-year experience. It is extremely important to us implementation of the Strategic Grants Plan that our community finds the information and proactively seek external funding to they are searching for as quickly and easily as diversify Council’s revenue sources from rates possible. and charges to external funding income.
Enabling real time planning and accuracy
Approximately 30,000 documents were loaded into our new Redeye engineering PERFORMANCE drawing management system. Redeye provides a mobile based solution for managing engineering drawings for OUR Council’s assets. It allows our teams to have unrestricted real-time visibility from anywhere in the region. Seeing the whole of design will improve productivity and reduce risk.
Gladstone Regional Council 2019/20 Annual Report Page 105 OUR
Gladstone RegionalCouncil PERFORMANCE Recovery StrategyReporthighlightsseven The finalWasteManagementandResource Strategy. Waste ManagementandResourceRecovery Queensland Governmentaspartoftheir management hierarchyreleasedbythe which alignswiththewasteandresource becoming reduce,reuseandrecyclewaste the focuschangedwithpriorities infrastructure. Asthestrategydeveloped prioritisation ofEnergyfromWaste a frameworkforimplementationand The strategywasintendedtoprovide capital. centres intoprofit-centresandgainreturnon commercial opportunitiestoconvertcost- original focusofthestrategywastopursue Plan and2019/20OperationalPlan.The as anactivityofthe2018/19Operational December 2019.Thestrategywasundertaken Recovery StrategywasendorsedbyCouncilin The WasteManagementandResource Reduce, reuseandrecycle Highlights Priority 4–Optimiseexistinginfrastructure Priority 7–Datacollectionandmanagement Priority 6–Regionalcollaboration Priority 5–Organicsprocessing Priority 3–Landfilldiversionthroughrecycling Priority 2–Reuseofrecoveredmaterialinlocalprojects Priority 1–Wasteeducation Waste strategypriorities 2019/20 AnnualReport • • resource recoveryison: immediate focusforwastemanagementand Based onthefindingsofStrategy,our waste hierarchyarehighlightedbelow: are alignedwiththedifferentaspectsof long term.Thesevenprioritiesandhowthey implementation, overtheshort,mediumand are coupledwithclearactionsfor The sevenprioritieswithinthestrategy targets. Queensland Governmentsprioritiesand address andcontributetoachievingthe priorities thatwillassistCounciltoboth management opportunities. to identifyandharnessfuturewaste Strengthening regionalcollaboration reuse andrecyclewaste circular economywithprioritiestoreduce, Continuing topromoteandeducateona Avoidance and waste reduction Management Hierarchy Waste andResource Reuse Recycle or compost
Recover fuel or
energy Dispose Page 106 Our recycling mascot helps educate residents on the environmental impacts of littering in our region. PERFORMANCE OUR
Gladstone Regional Council 2019/20 Annual Report Page 107 Challenges and Solutions
Council has seen a significant increase in cyber security threats over the past six months as our employees were required to work from home due to COVID-19 restrictions. We also succumbed to phishing attacks during the COVID-19 restricted period. As a result, we have developed and implemented a cyber security education and communication plan. The plan included mandatory training in cyber security, regular updates to employees on cyber security threats, created a number of new cyber security fact sheets for leaders to use at team toolbox talks or meetings and purchase of a phishing/ransomware vulnerability assessment and education tool. This tool allows us to check employee alertness by regularly sending threat e-mails to employees and the results will be used as a learning opportunity. OUR PERFORMANCE
Our people receive training on cyber security and learn how to mitigate risks for the organisation. Page 108 Looking into next year
• Council will continue the two-year implementation of the Strategic Grants Plan and proactively seek external funding to diversify Councils revenue sources from rates and charges to external funding income.
• Implement the Investment Decision Framework to ensure we are making informed and sustainable investment decisions.
• Upgrade Council’s current Technology One modules to intuitive Ci Anywhere user interface.
• Continue enhancing cyber security testing. PERFORMANCE OUR
We aim to be safe, ethical, responsive, visionary, inclusive, community centric and efficient. Gladstone Regional Council 2019/20 Annual Report Page 109 OUR
Gladstone RegionalCouncil PERFORMANCE 5. 4. 3. 2. 1. 5 ElementsofOurCommunityFinancialReport format thatisreadable.Financialstatementsconsistoffivekeyelementspresentedhere. an organisation.Theyprovideinternalfinancialinformationthatisnototherwiseaccessible,ina Financial statementsareformalrecordsofthefinancialperformanceandstanding What arefinancialstatementsandwhytheyincluded? reporting andforecasting,soyouwillseeususebothinseveralstatements. We recognisethatacrucialelementoffinancialperformanceincorporatesblendretrospective and allrelevantstakeholdersshouldbeabletoseehowCouncilhandlesmoney. After readingthissectioneachmemberofourcommunity,businesspartners,employees not haveafinancialbackground. position andperformancein2019/20.Itisdesignedtobeeasilyunderstoodbyreaderswhodo The CommunityFinancialReportprovidesaneasytounderstand,summaryofCouncil’sfinancial What isaCommunityFinancialReportandwhydoesitmattertome? Financial Report Community Our mixofsixratiosshowingourabilitytoprovideoperations andserviceintothefuture. Measures ofFinancialSustainability Cash in,cashout.ThemovementofmoneyinandoutGladstoneRegionalCouncil. Statement ofCashFlow What istheincreaseordecreaseinnetworthforyear? Statement ofChangesinCommunityEquity assets –liabilities=equity/networth What GRCownsvs.whatweowe Statement ofFinancialPosition Revenue –expenses=operatingresult Statement ofComprehensiveIncome 2019/20 AnnualReport
Page 110 OUR PERFORMANCE Page 111 also requires local governments to prepare and present a governments to prepare and present also requires local 2019/20 Annual Report Community Financial Report within their Annual Report. Report within their Annual Report. Community Financial Our Budget picture Plan. This ensures the long term informed by its Long Term Financial Council’s budget is borrowing levels are considered when increases, capital programs and of service levels, rate is set out prior to the start of the financial year and illustrates developing the budget. The budget how we intend to spend money. parts: Council’s budget is considered in two The Operating Budget - $182.7 million monies required to operate and maintain existing services The operating budget represents the sewerage and parks. This expenditure includes day- and infrastructure, such as roads, water, and recreation facilities, including Council’s libraries, to-day running of the many community museum, community engagement centre, pools and administration centres, art gallery and entertainment convention centre. The Capital Budget - $74.9 million for new infrastructure or adding new components to The capital budget represents money capital projects include building new parks, roads, bridges and existing infrastructure. Examples of centres; or adding new components to existing parks, buildings transport facilities; new community were not used to fund any of Council’s 2019/20 or water and sewerage networks. Borrowings capital works program. Why do we do this? Why do needs and the community place money where to responsibly we are committed As a Council, aside for years to come and putting considering costs for this year, planning wants it to be while Council how the money has come into This report shows our community money for emergencies. and how it leaves. Act 2009 The Local Government We are committed to working together to balance the region’s lifestyle and opportunity to the 62,979 residents who call the region home. Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE DIVERSIFY INNOVATE CONNECT Budget FundingSnapshot Community developmentandsupport Parks andopenspaces $61.7M $14.7M 2019/20 AnnualReport $23.3M Arts andculture Library services Waste services $1.3M $11.2M $3.3M Strategic projects Local laws Roads $7.0M $4.0M Pest andenvironmentalmanagement Talent anddevelopment Disaster management $34.4M Sewerage services Economic development Water services $3.3M $35.0M $1.3M 1.2M $4.0M Page 112 Financial Performance Snapshot
Operating Surplus/(deficit) Rates Revenue Grants and Subsidies
Council’s operating A total of $150.4M in rates Grants and subsidies of performance resulted in an and utility charges was $17.9M received from State operating deficit of $2.7M received during 2019/20 and Federal Government. and a negitive operating financial year. surplus ratio of -1.37% against a target range 0% to 10%.
Asset Sustainability Assets Capital Expenditure
Council’s asset sustainability Council manages Expenditure on capital ratio rose 1% from last year $2.5B of assets. works decreased during to 41% at year end 2019/20. 2019/20 to $44.6M. Last The target is 90% or higher. year expenditure on capital works was $51.9M. PERFORMANCE
Total Debt Net Worth Net Financial Liabilities OUR
Total debt reduced by Council’s net worth Council’s net financial $9.9M over the financial increased by $238.0M liabilities/(assets) ratio was year. Debt at year end compared to 2018/19. 4.87% at year end against a amounts to $1,729 per target ratio 60% or less. capita down from $1,898 last year.
The above financial performance snapshots are based on financial results as reported in Council’s consolidated 2019/20 financial statements. They may be different from the budget as they reflect what was truly delivered.
$76.6M funded new and existing roads, drainage and transport infrastructure across our region
Gladstone Regional Council 2019/20 Annual Report Page 113 OUR
Gladstone RegionalCouncil PERFORMANCE were reflectedwithinoperatingrevenuewithadecreaseineventincomeandsales. period 1March-30June2020resultinginadeclinerentalrevenue.OtherCOVID-19impacts commercial tenantswereprovidedrentrelieffromthe In responsetotheCOVID-19pandemic,anumberof Board alsodecreasedby$4.1M. income. TaxequivalentsfromtheGladstoneAreaWater attributable toa$3.8Mdecreaseingrantsandsubsidies cent) comparedto2018/19withthedecreaseprimarily Total operatingrevenuedecreasedby$2.4M(1per revenue asasourceofincome. of alocalgovernment,thehigherrelianceonrating a largeurbancentre.Generally,thelargerbase Council. 75percentisconsiderednormalforcouncilswith service chargesasthepredominantincomestreamto This demonstratesaclearrelianceongeneralratesand revenue. (6 percent).Thegraphshowsthebreakdownofoperating charges (11percent)andoperatinggrantssubsidies and utilitycharges(75percent),followedbyfees Airport Corporation.Themajoritywasprovidedbyrates 2019/20 year,including$7.5MreceivedbytheGladstone Council received$199.0Minoperatingrevenuethe Revenue –wheredoesthemoneycomefrom? expenses andoperatingresultareshownbelow. operating expensesistheresult.Asnapshotofcouncil’srevenue, has beenmadeinthedeliveryofservices.Thedifferencebetweenoperatingrevenueand The StatementofComprehensiveIncomeshowsrevenue,expensesandwhetheraprofitorloss - StatementofComprehensiveIncome 1. Council’sRevenueandExpenses 2019/20 AnnualReport Generalratesandservicecharges Interest Operatinggrantsandcontributions Otherrecurrentrevenue Salesrevenue Feesandcharges 11% 3% 3% 6% Revenue 2% 75% Page 114 OUR PERFORMANCE Page 115 $2.88 Community wellbeing, sport and recreation and aquatic facilities $20.11 Other Services including asset management, customer service, administration and information technology $2.76 Wheelie bin collections and management of waste facilities $6.86 open space Parks, playgrounds, and environment
$35.66 Roads construction and maintenance $3.76 Arts and culture $13.27 Sewerage operations, infrastructure construction and maintenance $14.70 Water supply, infrastructure construction and maintenance 2019/20 Annual Report For every $100 services... charges, Council delivers a range of of your rates and Fees and charges our individual community members such as development The costs for providing services to facility entrance charges. applications, animal registration costs, Operating grants and contributions received with the Funding from both State and Federal Government. Grants are typically Council aims to expectation they will be used for specific projects and reported on accordingly. subsidies from the State maximise its revenue from other sources by actively pursuing grants and and Federal Government. Sales revenue Recoverable income Sales revenue includes general sales and contract and recoverable income. costs. For example, the is work that Council undertakes on behalf of others and recovers the work on the Department of Transport and Main Roads pays Council to perform maintenance roads they own in the region. Other recurrent revenue dividends, income tax This category of revenue includes fines and penalties, commissions, equivalents, rental income and other minor sources of income. Interest received and charges. Money earned on investments and money received from overdue rates General rate and service charges rate and service General rates are levied charges. General rates and service comes from general revenue Most of Council’s charges Valuer-General. Service which has been valued by the Queensland on all rateable land garbage services like water, sewerage and that have access to specific are levied on properties collection. Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE The operatingresultfortheGladstoneRegionalCouncil2019/20isadeficitof$2.7M. decrease. As Councilcontinuestopaydownitsdebts,itisanticipatedthatfinancecostswillcontinue Finance coststotalled$7.0Mfortheyear,accounting3percentoftotaloperatingexpenditure. approximately 2percentoftheassetbaseoverperiod. ‘consumed’ duringtheperiod.Thisdepreciationchargeshowsthatcommunityconsumed While depreciationdoesnotrepresentcashspent,itrecognisesthevalueofCouncil’sassets Council’s depreciationexpensewas$43.5M,accountingfor22percentofoperatingexpenditure. capital worksprogram. entitlements bankedduetotravelrestrictionsandlesscapitalisedlabourdelaysinthe remuneration. COVID-19impactedthecostofemployeebenefitswithincreasedleave includes employeesalariesandwages,superannuation,leaveentitlementsCouncillor Employee benefitstotalled$66.0M,accountingfor33percentofoperatingexpenditure.This utilities, fuelandotheroperationalcosts. community hallsandtownplanning.Italsoincludespaymentsforbitumenmaterials,gravel, community includingroads,parks,water,sewerage,footpaths,bikeways,libraries,pools,airport, are paymentstosuppliersforthedeliveryofCouncilsvastrangeservicesandprojects the materialsandservicesexpenditureforyear.Othercostsincludedin Together thesetwolineitemsaccountedfor46percentof behalf ofCouncilandbulkwaterpurchasesat$18.1M. items were$21.0Mforcontractorsperformingworkson 42 percentofoperatingexpenses.Thelargestindividual Materials andservicestotalled$85.1M,accountingfor per cent)andmaterialservices(4cent). previous yearwithincreasesacrossemployeebenefits(14 expenses increasedby$10.5M(6percent)overthe services, deprecationandfinancecosts.Totaloperating components areemployeebenefits,materialsand total operatingexpenditure.Theprimaryexpense The graphprovidesabreakdownofCouncil’s$201.7M prior tothebeginningofeachfinancialyear. throughout theyearagainstbudgetsthatareplanned Expenses aremonitoredregularlyandconsistently Expenses –wheredoesthemoneygo? 2019/20 AnnualReport Financecosts Depreciationandamortisation Employeecosts Materialsandservices 22% 33% Expenses 3% 42% Page 116 OUR PERFORMANCE Page 117 2% 1% 6% 58% 5% 3% plant & Property, equipment 9% 16% Land and Improvements Buildings Plant and Equipment Park Furniture and Other Structures Infrastructure and Transport Road Drainage Sewerage Infrastructure Water Infrastructure Work in Progress 94% 1% 4% 1% Assets 2019/20 Annual Report Cash and cash equivalents Trade and other receivables Property, plant and equipment Other assets Total Council controlled assets had a total value of $2.5B as at 30 June 2020, which represented Total Council controlled assets had during 2019/20 of $243.7M. The Assets graph illustrates the an increase in the community’s assets breakdown of assets. buildings, road network, The major components of assets are property, plant and equipment (land, for $2.3B of total water and sewerage infrastructure, capital works in progress), which accounts assets. The split can be viewed in the Property, plant and equipment graph. to $51.9M in 2018/19. In 2019/20 $44.6M worth of capital works were completed, compared prepayments, accrued Cash and deposits totalled $113.8M. Other assets include inventories, in controlled entity and revenue, investment properties, right of use assets, intangibles, investment contract assets. from $71.9M to $16.7M Council’s investment in the Gladstone Airport Corporation was reduced based on a valuation following the application of an impairment adjustment to airport assets completed at 30 June 2020. 2. What the Council owns vs. what we owe what we owns vs. the Council 2. What Position of Financial - Statement assets) minus what the Council owns (its measures the difference between This financial statement equity. as the net worth or community (its liabilities). This difference is known what Council owes 2020. Council’s financial state at 30 June Financial Position is a snapshot of The Statement of – Assets What Council owns Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE country, ruraltownshipstoindustry. a vastlandscape,fromcoastlineto kilometres ourregionencompasses Spanning over10,489square $0.6M from30June2019). and MulticulturalAffairsat$4.1M30June2020(down loan fromtheDepartmentofLocalGovernment,Racing Other loanliabilitiescompriseofCouncil’sinterestfree previous fouryears. not borrowanyfundsin2019/20aswasthecasefor 30 June2020(down$9.3Mfrom2018/19).Councildid with QueenslandTreasuryCorporationat$105.5Mas Council’s singlelargestliabilityisitsinterestbearingloans implemented in2019/20. rates asaliabilityundernewaccountingstandards The increaseisattributabletotherecognitionofprepaid $156.2M comparedtothe2018/19balanceof$150.6M. Benaraby Landfill.Thetotalliabilitiesat30June2020was for employeeleaveentitlementsandrestorationofthe suppliers, leaseliabilities,contractprovisions Council’s liabilitiesincludeloans,amountsowedto What CouncilOwes-Liabilities 2019/20 AnnualReport Provisions Borrowings-InterestFree Borrowings-InterestBearing Tradeandotherpayables 9% 67% Liabilities 6% 18% Page 118 3. Our Net Worth - Statement of Changes in Community Equity This section summarises the increase or decrease in net worth for the year.
Compared to 2018/19, Council’s overall net worth increased $238.0M with an increase of $268.4M to the asset revaluation surplus, an increase of $9.9M to reserves and a decrease of $40.2M to retained surplus.
As at 30 June 2020, the net worth of Gladstone Regional Council is $2.3B. 4. Cash in, cash out - Statement of Cash Flows The Statement of Cash Flow shows the movement of money in and out of Council. It demonstrates changes to cash balances and describes how they resulted. It demonstrates changes to cash balances and describes how they resulted. It excludes non cash movements like accruals and depreciation of assets, so it differs from the Statement of Comprehensive Income.
There has been a decrease of $2.9M in total cash and cash equivalents in during the 2019/20 year. Compared to 2018/19, total grants, subsidies and contributions reduced from $30.0M to $19.2M PERFORMANCE and income tax equivalents received reduced from $6.4M to $2.2M. Payments for property plant and equipment decreased from $52.3M in 2018/19 to $44.7M. OUR
Gladstone Regional Council 2019/20 Annual Report Page 119 OUR
Gladstone RegionalCouncil PERFORMANCE our operatingexpenses.Itindicatesfinancialcapacityandabilitytofundongoingoperations. The operatingsurplusratiomeasuresthepercentagebywhichourrevenuevariesfrom Operating SurplusRatio forecast for2020/21(inred).Theyalsooutlinethetargetsasnotedabove. The graphsshowtheactualconsolidatedresultsfor2019/20,previousthreeyearsaswella future. Eachratiohasatargetthatisdeterminedinlinewithbestpracticeforlocalgovernment. consolidated resultsfor2019/20,thepreviousyearaswellaforecastthreeyearsin specifically toourCouncilmeasure.Thetablesshowthelongtermsustainabilitywithactual Each oftheseratiosareexplainedbelowwithatable,graph,definitionandcommentaryrelated into thefuture. our financialdecisionmakingandtoensuresustainableuseoffixedresourcesnow, a mixofratios,incombinationwithbottomlineresultsandlong-termfinancialplanningtoinform allows Counciltoidentifyanycorrectiveactionnecessaryandimplementitinatimelyway.Weuse Council’s decisionmakerswithanongoingandcurrentsnapshotofsustainability.This Council ratiosarereportedtotheExecutiveLeadershipTeamandCouncillorsmonthlyprovide also usefulwhencomparingGladstoneRegionalCounciltoothercouncils. considered, theybecomeanimportanttoolinanalysingCouncil’sresultsfortheyear.Ratiosare of Council’sfinancialpositionandperformance.However,whentherightmixratiosare an organisation.Individualratiosdonotoftenprovideenoughinformationtoformafullopinion net interestcoverageratioanddebtservicetoprovidemoredetailintoourhealthas ratio andthenetfinancialliabilitiesratio.OurCouncilalsopreparesworkingcapitalratio, Regulation 2012 several measuresorratiosthatdemonstratedifferentareasofsustainability. provide goodservicetothecommunity,nowandinlongterm.Thisisdonebypresenting Financial sustainabilityprovidesevidenceofCouncil’sabilitytocontinuewithitsoperationsand 5. MeasuringFinancialSustainability Ratio Financial CapitalSustainability Ratio Operating Surplus 10 15 -4 5 Target Minimum:0% Target Maximum:15% 2016/172017/182018/192019/202020/21 2019/20 AnnualReport requiresCounciltoreportontheoperatingsurplusratio,assetsustainability Achieved Target N Target 0-15% community recoverymeasuresforCOVID-19. year asrateswilleffectivelybefrozenpartofCouncil’s services expenditure.Adeficitisforecastforthe2020/21 as wellincreasesinemployeebenefitsandmaterials and due toandecreaseinrevenue(namelygrantsandsubsidies) result isadecreasefromthepreviousfinancialyear andis Council madeanoperatingdeficitof$2.7Min2019/20. This Commentary Actual 2019/20 Consolidated -1.37% 2020/21 Forecast -3.23% 2021/22 Forecast 0.94% Local Government
Forecast 2022/23 0.76%
Page 120 OUR PERFORMANCE Page 121
6.19% 92.30% Forecast 2022/23 Forecast 2022/23
5.39% 123.37% Forecast 2021/22 Forecast 2021/22 -3.55% 47.21% Forecast 2020/21 Forecast 2020/21 4.87% 40.94% Consolidated Actual 2019/20 Consolidated Actual 2019/20 Commentary A positive value of less than 60 per cent indicates that Council has the capacity to fund liabilities as well as the capacity to increase its loan borrowings. A positive value greater than 60 per cent indicates that Council has limited capacity to increase its loan borrowings. The 2019/20 position of 4.87 per cent is within target levels and reflects an ability to service further debt, if necessary. The ratio result is expected to increase in 2021/22 and again in 2022/23 as the current asset base is reduced due to deferred project completion, however it is still expected to remain within the target range. Commentary is anticipated to increase Expenditure on asset replacement result. The 2019/20 in the coming years from the 2019/20 to delays in delivering result of 40.94 per cent is low due COVID-19 affected Councils capital program during the significantly in period. This ratio is expected to increase following completion 2021/22 as expenditure normalises works, and in line with of the deferred asset replacement the renewal of Council’s the projected cyclical investment in monitored, however due asset base. This indicator is closely and renewal, it is to the cyclical nature of asset maintenance closer to the target in anticipated that the ratio will average the renewal of Council’s the longer term. When considering will be periods of heavier asset base it is expected that there the long term trends investment. It is important to consider infrastructure when looking at this indicator as Council’s cases exceeding, 100 assets have lives up to, and in some years. <60% <60% >90% >90% Target Target Y N Target Achieved Target Achieved 2019/20 Annual Report 2016/17 2017/18 2018/19 2019/20 2020/21 Target Minimum: >90% 2016/17 2017/18 2018/19 2019/20 2020/21 Target Maximum: <60% 0 80 60 40 20 Net Financial Liabilities Ratio Asset Sustainability Asset Sustainability Ratio Financial Capital Sustainability Ratio Infrastructure Capital Sustainability Infrastructure Capital Ratio 100 -4 Net Financial Liabilities Ratio Council’s ability to pay its obligations by comparing its The net financial liabilities ratio measures operational income if we were debt to its assets. It shows our ability to pay off the net amount with called to do so. Asset Sustainability Ratio Asset Sustainability assets at the same non-financial or replacing existing we are renewing indicates whether This ratio are wearing out. rate that the assets 44 28 12 60 Gladstone Regional Council OUR
Gladstone RegionalCouncil PERFORMANCE 10 10 than onealsoshowsCouncilisingoodfinancialhealthandlesslikelyfallintodifficulties. the valueisgreaterthanone,itmeansshorttermobligationsarefullycovered.Aratio The workingcapitalratiomeasurestheabilityofCounciltomeetitsshorttermdebtobligations.If Working CapitalRatio this ratioalowresultisdesirable. interest earnedandpaid.It’sanindicatorofourabilitytomeetpayments.For This ratioprovidestheshareofoperatingrevenuethatiscommittedtocoveringgapbetween Net InterestCoverageRatio -1 0 2 4 6 8 2 4 6 8 Ratio Infrastructure CapitalSustainability Ratio Financial CapitalSustainability Ratio Net InterestCoverage Working CapitalRatio Target Ratio:1:1 Target Minimum:0% Target Maximum:10% 2016/17 2017/182018/192019/202020/21 2016/17 2017/18 2018/19 2019/202020/21 2019/20 AnnualReport Achieved Target Achieved Target Y Y Target Target 10% 0% - >1:1 with interestexpenditureoverthenextthreeyears. target rangeof0-10percentandisforecasttoreduce inline revenue tocoverinterestexpenses.Thisresultiswithin the Council hascurrentlycommitted1.88percentofoperating Commentary forthcoming forecastyears. balance. Councilexpectstoremainabovethetargetin of 1:1.Theseresultsarestrengthenedbyahealthycash obligations 3.12times,wellinexcessofthetargetratio Council ispositionedtocontinuefunditscurrent Commentary Actual 2019/20 Consolidated Actual 2019/20 Consolidated 1.88% 3.12 2020/21 Forecast 2020/21 Forecast 1.59% 4.88 2021/22 Forecast 2021/22 Forecast 1.37% 3.82
Forecast Forecast 2022/23 2022/23 1.31% 3.25
Page 122 OUR PERFORMANCE Page 123
3.72 Forecast 2022/23
3.44 Forecast 2021/22 3.01 Forecast 2020/21 3.41 Consolidated Actual 2019/20 Commentary the target for this At 3.4x, Council is currently well above in a solid position indicator (2x) and is expected to remain Council is based on 2020/21 forecasts. This indicates, obligations 3.4x in a position to service its current debt Council’s from its operating result before depreciation. associated with income is utilised to meet debt obligations such as sewerage the borrowings for long term assets and airport treatment plants, trunk water infrastructure were incurred infrastructure. No increases in borrowings anticipated during the and a reducing interest expense is forecast period. >2x Target Y Target Achieved 2019/20 Annual Report 2016/17 2017/18 2018/19 2019/20 2020/21 Target Minimum: >2 Working Capital Ratio Working Capital Ratio Financial Capital Sustainability Financial Capital Ratio 8 6 4 2 0 Summary Statement remains solid and is trending positively. This year, Council Overall, Council’s financial performance emergent issues of COVD-19 as well as drought and fire was faced with the challenging and focus to find balance between caring for our community and recovery. Our finances reflect the position to deal with any improving financial sustainability. Overall, Council remains in a sound significant emergent financial impacts. Debt Service Coverage Debt Service its debt cash flows to repay use its operating of Council to measures the ability This ratio obligations. 10 Gladstone Regional Council
OUR FINANCES
Gladstone Regional Council 2019/20 Annual Report Page 125 This section provides a detailed view of our financial stability for the financial year 2019/20. It includes information on our financial management and measures of sustainability along with the financial statements that meet legislative requirements and Australian accounting standards. Financial reporting demonstrates effective stewardship of Council monies and accountability to our community.
Gladstone Regional Council 2019/20 Annual Report Page 126 OUR FINANCES Page 127 188 191 192 167 168 169 178 175 175 174 170 171 172 172 173 173 181 183 187 193 196 ......
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...... Provisions Borrowings Other liabilities. Asset revaluation surplus Asset revaluation National competition policy Changes in accounting policy Financial instruments and financial risk management Reconciliation of liabilities arising from finance activities Reserves Commitments for expenditure Contingent liabilities Superannuation Trust funds Reconciliation of net result for the year to net cash inflow from operating activities Transactions with related parties 22 21 23 24 34 32 33 31 25 26 27 28 29 30 35 Management Certificate ...... Independent Audit Report - Financial Report ...... Current-year Financial Sustainability Statement. Certificate of Accuracy Independent Audit Report - Current Year Financial Sustainability Statement ...... Unaudited Long-term Financial Sustainability Statement ...... 146 128 130 132 134 138 140 143 146 146 145 147 147 151 152 166 164 163 163 149 150 151 153 129 ......
...... 2019/20 Annual Report Significant accounting policies Analysis of results by function Revenue analysis Grants, subsidies, contributions and donations Employee benefits Depreciation and amortization Finance costs Materials and services Capital expenses Impairment Cash and cash equivalents Investment property Property, plant and equipment Payables Contract balances Leases Receivables Inventories Investment in controlled entity Other assets Financial Statements Table of Contents Financial Statements Statements of Income ...... Comprehensive Position Statements of Financial in Equity ...... Statements of Changes Flows ...... Statements of Cash Notes to the Financial Statements 1 2 3 4 5 8 7 6 9 10 11 15 16 20 18 19 12 13 14 17 Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Statements ofComprehensiveIncome For the year ended theFor year 30 June 2020 Comprehensive of IncomeStatements Increase/(decrease) in asset revaluation surplus revaluation asset in Increase/(decrease) result net to reclassified be not will that Items Employee benefits Employee expenses Recurrent Interest received Interest using the previous standards relating to revenue and leases to relating standards previous the using presented is information comparative the 16 andtherefore 1058andAASB 15 / AASB of on adoption been restated have not comparatives The charges and utility Rate revenue Recurrent Revenue Total expenses Total Other recurrent income recurrent Other revenue Sales Impairment expenses recurrent Total costs Finance and services Materials Depreciation andamortisation Depreciation Total other comprehensive income for the year the for income comprehensive other Total Fees and charges Fees Total capital revenue capital Total Total recurrent revenue recurrent Total Net result result Net recurrent Grants, subsidies, contributions anddonations contributions subsidies, Grants, Capital expenses Capital Total comprehensive income for the year the for income comprehensive Total Total income Grants, subsidies, contributions anddonations contributions subsidies, Grants, revenue Capital Other comprehensive income comprehensive Other Expenses Income The abovestatement shouldbereadinconjunction withtheaccompanyingnotes andSignificantAccountingPolicies 2019/20 AnnualReport The statement above should beread in conjunction with the accompanying notes andSignificant Accounting Policies Note 4(b) 4(a) 3(e) 3(d) 3(b) 3(a) 3(c) 24 10 9 8 7 6 5 30 June 2020 30 June $'000 (235,706) (201,713) (33,993) (43,494) (85,146) (66,033) (23,815) 268,356 150,434 268,356 198,983 244,541 211,891 (7,040) (2,730) 12,908 11,929 21,187 12,908 5,628 6,788 3,017 Consolidated -
30 June 2019 30 June $'000 (195,906) (191,185) (44,019) (81,625) (57,755) 147,272 201,402 216,203 (4,721) (7,786) (1,665) (1,665) 14,801 15,692 17,956 11,722 14,801 20,297 10,217 18,632 4,370 4,390 - 30 June 2020 30 June $'000 (281,233) (192,811) (55,196) (33,226) (41,083) (82,555) (64,217) (76,869) 319,194 150,518 319,194 191,456 242,325 204,364 (4,956) (1,355) 12,908 11,929 14,389 12,908 4,990 6,841 2,789 Council 30 June 2019 30 June $'000 (186,286) (181,555) (41,470) (78,418) (56,047) 147,358 192,195 206,996 (4,731) (5,620) (1,111) (1,111) 14,801 15,692 10,640 10,950 14,801 20,710 19,599 9,707 4,423 4,065 - Page 128 2 OUR FINANCES 3 Page 129 ------393 204 3,334 2,167 4,259 7,897 7,036 2,574 9,607 12,897 84,149 15,224 12,025 71,854 33,716 32,507 149,914 132,828 117,407 563,806 103,412 105,251 2,093,514 2,243,428 2,093,514 2,110,600 1,445,559 2,001,492 $'000 30 June30 2019 Council 88 44 - - 382 915 3,002 7,859 3,719 3,216 8,610 1,401 1,450 2,817 1,387 24,564 94,047 15,265 12,676 99,627 16,658 33,716 45,752 95,426 10,086 154,894 131,699 109,142 883,000 2,329,328 2,484,222 2,329,328 2,352,522 1,352,281 2,296,208 $'000 30 June30 2020 ------393 204 3,334 7,228 4,259 2,167 7,915 2,574 9,607 13,344 84,149 17,400 12,167 33,146 150,571 148,477 117,425 550,650 116,743 105,251 2,089,429 2,240,000 2,089,429 2,091,523 1,454,630 2,087,985 $'000 30 June30 2019 88 93 - - - - - 382 915 Consolidated
3,002 3,222 8,082 3,719 3,216 1,495 1,450 1,435 8,625 95,426 25,174 10,086 94,047 15,726 12,858 47,039 156,244 146,555 109,205 819,004 113,840 2,327,448 2,483,692 2,327,448 2,337,137 1,414,397 2,331,102 $'000 30 June30 2020 24 21 14 12 11 15 19 25 19 22 23 21 18 20 18 21 21 12 13 16 19 22 18 17 Note The above statement conjunction notes should in be read the with accompanying and Significant Accounting Policies 2019/20 Annual Report The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies The above statement should be read in conjunction with the accompanying notes and
Community equity Community Netcommunity assets Non-currentassets Investmentproperty Currentliabilities Payables Totalliabilities Totalassets Assetrevaluation surplus Reserves Rightof use assets Currentassets Cashcashand equivalents Contractliabilities Totalequity community Inventories Totalcurrent assets Leaseliabilities Property,plant equipment and Contractassets Leaseliabilities Totalnon-current liabilities Receivables Receivables Contractassets Non-currentliabilities Borrowings- interest bearing Borrowings- interest free Otherassets Otherliabilities Intangibleassets Totalnon-current assets Borrowings- interest bearing Investmentcontrolledin entity Provisions Thecomparatives have not restatedbeen adoptionon of AASB /AASB15 and 1058 thereforeand 16 the comparative information is presented usingthe previous standards relating to revenue leasesand Retainedsurplus
Provisions Totalcurrent liabilities Borrowings- interest free
As at 30 June 2020 June 30 at As Statements of Financial Position Financial of Statements
For the year ended 30 June 2020 ended 30 June For the year Statements of Financial Position Financial of Statements Gladstone Regional Council The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies The above statement should be read in conjunction with the accompanying notes and OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Statements ofChangesinEquity For the year ended 30 June 2020 in Equity Changes of Statements Balance as at 30 June 2019 30 June as at Balance Found assets first recognised first assets Found 2018 1 July as at Balance 2020 30 June as at Balance Found assets first recognised first assets Found Adjustment on initial application of AASB 15/ AASB AASB 15/ AASB of application on initial Adjustment using the previous standards relating to revenue and leases revenue to relating standards previous the using period prior to pertaining adjustment Consolidation equipment property,and plant - opening balance to Adjustment inventory - opening balance to Adjustment 1058 Total transfers to / (from) reserves (from) / to transfers Total The comparatives have not been restated on adoption of AASB 15 / 1058 and AASB 16 and therefore the comparative information is presented presented is information comparative the 16 and therefore 1058 and 15 AASB / AASB of on adoption been restated not have comparatives The Net operating result operating Net 2019 1 July as at balance Restated Total transfers to / (from) reserves (from) / to transfers Total Total comprehensive income for the year the for income comprehensive Total Total comprehensive income for the year the for income comprehensive Total Transfers to / (from) capital (from) / to Transfers capital revenueTotal Net operating result operating Net 2018 1 July as at balance Restated Increase / (decrease) in asset revaluation surplus revaluation in asset (decrease) / Increase year: the for income comprehensive Other Transfers to / (from) reserves (from) / to Transfers reserves (from) / to Transfers Balance as at 1 July 2019 1 July as at Balance Increase / (decrease) in asset revaluation surplus revaluation in asset (decrease) / Increase year the for income comprehensive Other Transfers to / (from) capital (from) / to Transfers capital revenueTotal Consolidated The abovestatement shouldbereadinconjunction withtheaccompanyingnotes andSignificantAccountingPolicies 2019/20 AnnualReport The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies Accounting andSignificant accompanying with beread the in should notes conjunction statement above The Note 24 16 16 32 25 25 24 16 25 25 Retained Retained surplus $'000 1,454,630 1,436,438 1,414,397 1,448,110 1,436,441 1,454,630 (11,910) (24,899) (23,815) (23,815) (2,108) (9,898) (6,511) 15,001 20,297 20,297 9,802 (325) 264 - - - 52 3 revaluation surplus Asset $'000 550,650 552,315 819,004 550,648 268,356 552,315 550,650 268,356 (1,665) (1,665) ------(2) Reserves $'000 (15,001) (9,802) 84,149 82,041 94,047 84,149 82,041 11,910 24,899 84,149 2,108 9,898 ------Total $'000 2,089,429 2,070,794 2,327,448 2,082,907 2,070,797 2,089,429 (23,815) 268,356 244,541 (6,511) (1,665) 18,632 20,297 (325) 264 ------(2) 52 3 Page 130 4 OUR FINANCES 5 3 52 ------264 Page 131 (316) 20,710 19,599 (1,111) (6,511) 319,194 242,325 (76,869) 2,073,915 2,087,003 2,093,514 2,093,514 2,329,328 2,073,912 $'000 Total ------2,108 9,898 82,041 84,149 11,910 24,899 84,149 84,149 94,047 82,041 (9,802) (15,001) $'000 Reserves ------(1,111) (1,111) 564,917 563,806 563,806 319,194 319,194 563,806 883,000 564,917 $'000 Asset Asset surplus revaluation 3 52 - - 264 (316) 9,802 20,710 20,710 15,001 (6,511) (2,108) (9,898) (76,869) (11,910) (24,899) (76,869) 1,426,957 1,439,048 1,445,559 1,445,559 1,352,281 1,426,954 $'000 surplus Retained
25 25 24 16 25 24 25 16 32 16 Note Theabove statement should readbe in conjunctionwith theaccompanying notesSignificantand Accounting Policies 2019/20 Annual Report The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies The above statement should be read in conjunction with the accompanying notes and
Council Restated balance as at 2018 1 July Netoperating result Other comprehensive income for the year Increase / (decrease) in asset revaluation surplus Total comprehensive income for the year Total capital revenue Transfers to / (from) capital The comparatives have not been restated on adoption of AASB 15 / 1058 and AASB 16 and therefore the comparative information is presented Restated balance as at 2019 1 July Net operating result Other comprehensive income for the year Increase / (decrease) in asset revaluation surplus Found assets first recognised Balance as at 2019 1 July using the previous standards relating to revenue and leases Adjustment to opening balance - property, plant and equipment Adjustment on initial application of AASB 15/ AASB 1058 Adjustment to opening balance - inventory Total comprehensive income for the year Total capital revenue Transfers to / (from) capital Total transfers to / (from) reserves (from) / to transfers Total Total transfers to / (from) reserves (from) / to transfers Total Transfers to / (from) reserves Transfers to / (from) reserves Balance as at 30 June 2019 Balance as at 30 June 2020 Balance as at 2018 1 July Found assets first recognised
For the year ended 30 June 2020 30 June ended year the For Statements ofChanges Equityin
For the year ended 30 June 2020 ended 30 June For the year Equity in Changes of Statements Gladstone Regional Council The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies The above statement should be read in conjunction with the accompanying notes and OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Statements ofCashFlows For the year ended 30 June 2020 Statements of Cash Flows Controlled entity dividend Controlled Net cash outflow from investing from cashNet activities outflow previous standards relating to revenue and leases revenue to relating standards previous the using presented is information comparative the 16 and therefore 1058 and 15 AASB / AASB of on adoption been restated not have comparatives The year Cash and cash equivalents at end the financialof year financial equivalents held cash and cash in increase/(decrease) Net Net cash outflow from financing from activities cashNet outflow Income tax equivalents Income Cash and cash equivalents at the beginning of the the beginning of the at equivalents and cash Cash Proceeds from sale of property,and equipment plant of sale from Proceeds income Rental Non capital grants and contributions grants capital Non Payments for property,and equipment plant for Payments investing from Cash activities flow operating activities from cashNet inflow Repayments made on leases (principal only) (principal made on Repayments leases borrowings Repayment of Receipts from customers from Receipts operating activities from Cash flows Borrowing costs Borrowing financing from activitiesCash flow Payments to suppliers and employees suppliers to Payments Grants, subsidies, contributions and donations contributions subsidies, Grants, Interest received Interest The abovestatement shouldbereadinconjunction withtheaccompanyingnotes andSignificantAccountingPolicies 2019/20 AnnualReport The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies Accounting andSignificant accompanying with beread the in should notes conjunction statement above The
Note 3(c) 3(e) 3(e) 4(a) 4(b) 3(e) 11 19 21 30 7 9 30 June 2020 30 June $'000 (148,050) (16,842) (35,023) (44,748) 116,743 113,840 180,560 (9,953) (6,760) (2,903) 48,962 11,929 32,510 2,223 3,017 7,316 1,506 (129) Consolidated 186 - 30 June 2019 30 June $'000 (150,470) (16,670) (30,310) (52,275) 112,103 116,743 181,377 (9,404) (7,266) 14,305 51,620 15,692 30,907 1,310 4,640 6,350 4,390 631 - - 30 June 2020 30 June $'000 (143,822) (14,735) (32,097) (42,328) 103,412 171,610 (3,785) (9,953) (4,707) 99,627 43,047 11,929 27,788 7,316 2,729 2,789 (75) 186 541 - Council 30 June 2019 30 June $'000 (144,280) (14,627) (29,046) (51,937) 103,412 171,372 (9,404) (5,223) Page 132 14,305 99,605 47,480 15,692 27,092 3,807 1,222 7,039 4,065 325 631 - 6 OUR FINANCES 7 Page 133 and isand domiciled Australia.in . . LocalGovernment Act 2009
LocalGovernment Regulation 2012 and the and 2019/20 Annual Report LocalGovernment Act 2009
fair value based quotedon prices (unadjusted) activein markets for identical assets or liabilities (level 1) fair value based inputson that are directly or indirectly observable for the asset (level or liability 2) fair value based unobservableon inputs for the asset (level liability and 3) disposalof non-current assets discountrate adjustments to restoration provisions revaluationsof investment plant equipment and property, and property
• • •
• • •
1 Significant Accounting Policies Accounting Significant 1 1.04 Date of Authorisation of Date 1.04 1.03 Constitution 1.03 1.02 Basis of Consolidation of Basis 1.02 1.01 Basis of Preparation of Basis 1.01 Allother revenue expensesand have classifiedbeen as "recurrent". the management certificatethe management is signed. Thefinancial statements authorised were for issue submitted were theon to date the they Auditor-General for final signature. This is the date TheGladstone Regional Council is constituted under the Queensland itscontrolled together form entity the economic which is entity referred to thesein financial statements as the consolidated entity. Inthe process of reporting the Gladstone Regional Council as consolidateda transactionsall entity, entities with controlled Council by have eliminated.been In addition, the accounting policies of controlledall entities have adjusted,been necessary, where consolidationon to ensure thatthe financial report of the consolidated is prepared entity using accounting policies that are consistent those with of the Gladstone RegionalCouncil. Information controlledon entities is included Notein 14. Theconsolidated financial statements incorporate the assets liabilitiesand of entitiesall controlled the Gladstone by Regional Council as at 30 Junethe and 2020 results of controlledall entities for thenJune 30 ended the material.year 2020, where The Gladstone Regional Council and developers. Thefollowing transactions are classified as either "capital income" or "capital expenses" result whetherthey on depending accounting in gains orlosses: Capitalrevenue includes grants subsidiesand received which are tied to specific projects for the replacement or upgrade of existing non- currentassets and/or investments assets. new in It also includes non-cash contributions which infrastructureare usually assets received from Revenueexpenditureand are presented as "recurrent" or "capital" thein Statements of Comprehensive Income theon following basis: equipment and investmentand equipment which property are measured at fair value forheld land and sale which is measured at fair value less cost of disposal. Inaccordance AASB with fair13 value measurements are categorised theon following basis: Recurrent/capitalclassification StandardsBoard (AASB) that are relevant to Council's operations effective and for the current reporting period. Council is not-for-profita entity forfinancial reporting purposes compliesand Australian with Accounting Standards as applicable to non-for-profit entities. Thesefinancial statements have preparedbeen under the historical cost convention, except for certain classes of plant and property, Thesegeneral purpose financial statements accountingall with comply standards interpretationsand issued the Australian by Accounting Thesegeneral purpose financial statements for theto 2019 June period30 July 1 have2020 preparedbeen accordancein the with requirementsof the
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies The above statement should be read in conjunction with the accompanying notes and OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 Notes to the Financial Statements 5. 5. in Note provided are on this details Further reasons. where they COVID-19 due to leave, work were attend unable to pandemic access to staff need for the to responded also home. Council from work to staff based office were made for provisions efforts, distancing social support To pillars: major three around centred by Council undertaken response initial The periods. reporting future into results financial impact to expected is post-COVID-19 operations to adaptation and subsequent response The guidelines. health public with relevant the in accordance operating of requirements changing the to swiftly responded Council a worldwide pandemic. COVID-19 declared Organisation Health World 2020 the 11 March On statements. financial the to notes appropriate in the to year referred are next financial the within and liabilities assets of amounts carrying the to adjustment a material cause to potential the have that and assumptions estimates The notes: statements financial following in the outlined are effect significant a potential have that and assumptions estimates Judgements, relevant. as periods and in future revised is estimate the in which period in the recognised are estimates accounting to Revisions on an ongoing basis. reviewed are assumptions and estimates The estimates. these from may differ results Actual be relevant. to considered are that factors and other experience historical on based are assumptions and associated estimates The sources. other readily not from are that apparent and liabilities assets of values carrying about and assumptions estimates judgements, make to required management is policies, accounting Council's of application the In statements. financial on the impact a material likely have to not are dates commencement with future Standards Accounting new amended Australian or report financial the of authorisation of date the At will implement them when they Council effective. are statements. financial been applied in these not have standards Those 2020. 30 June at effective not are that and Interpretations Standards Accounting Australian issued has AASB The AASB 16 15 AASB for disclosures transitional 32 for Note to Refer and leases. revenue to relating were those flows and cash performance position, on reported with impact a material Standards beginning on 1 July The 2019. periods annual reporting for mandatorily became effective which all Standards adopted has Council currency. presentation and its currency functional its as Dollar Australian the uses Council COVID-19 1.08 Critical Accounting Judgements and Key Sources of Estimation Uncertainty 1.07 Standards issued by the AASB not yet effective and Revised1.06 New Accounting Standards adopted during the year 1.05 Currency 1 Significant Accounting Policies (cont'd) • • • • • • • • Community and employee safety services essential Continuity of advice led with prevailing Risk 27) (Note liabilities Contingent 22) (Note Provisions and depreciation) impairment adjustments, (Revaluation 16) and equipment (Note plant Property, 15) property (Note Investment 14) (Note Corporation Airport entity Gladstone - in controlled Investment Leases . 2019/20 AnnualReport Revenue from Contracts with Customers, Contracts from Revenue
AASB 1058 AASB Income of NFP Entities NFP of Income and Page 134 8 OUR FINANCES 9 Page 135
2019/20 Annual Report
Carryover projects from 2019/2020 EssentialRenewalProgram only CriticalAsset Community Investment Reductiondiscretionaryin spending to nil Minimisationof consultancy spend Minimisationof training, non-mandatory seminars conferencesand Reductionvariousin revenue streams including rental income, event income salesand Additionaloperational expenditure requirements Reductioncapitalin expenditure Increasereceivablesin higher and impairment Increaseentitlement provisions employee in Increasemaintenancein costs Decreasescheduledin leave taken Controlledinvestment entity impairment than expectedLower interest revenue Rentconcessions for Council-leased commercial facilities Extensionof fortime food licensing six months by Extensionof tradeon time waste licensing six months by Effectivefreezing of interest outstandingon rates chargesand via concessiona Financialsupport for sporting organisations community and
• • • • • • • • • • • • • • • • • • • •
1 Significant Accounting Policies (cont'd) Policies Accounting Significant 1 1.08 Critical Accounting Judgements and Key Sources of Estimation Uncertainty (cont'd) Uncertainty Estimation of Sources Key and Judgements Accounting Critical 1.08 compliancethe Health with Department’s recommendations. GAC has seen significanta reduction flightin schedules resulting lower in passengernumbers revenue.and A number of commercial tenants have providedbeen rent relief until June30 2020, further impacting revenue.The downturnhas GAC allowed to undertake additional maintenance of the terminal aerodrome.and GladstoneAirport Corporation (GAC) moved quickly itsto implement Business Plan (BCP) Continuity Infectiousand Disease Plan, ensuring Capitalexpenditure Operationalexpenditure Councilis continuing to adapt to the situation hasand the necessary made adjustments thein budget for the 2020-21. Revenue targets were setviewa to with avoid additional burden theon ratepayers. The guidelines followed during expenditure budget preparations included: Consolidated- Gladstone Entity Airport Corporation Theinternal response to COVID-19 as as well the greater economic impacts have influenced Council’s 2019-20 financial results across areasmultiple including: Refundsprovided were for Councilall event applications, booking ticketingand fees, permits associatedand licenses for events that have cancelledbeen as directa result of COVID-19. Anextension was also to the made date due for waternotices issued theon 18th of theextending datedue February, to June30 2020. COVID-19(cont'd) OnMarch24 Council2020 approved COVID-19 million $1 a support package to assist residents, business, sporting groups community and in theGladstone Region. The package consisted of:
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 Notes to the Financial Statements would not purchase these services if they were donated. if not services these would purchase not Council as Income, Comprehensive of Statement in the recognised not are services Volunteer Centre. Convention Entertainment Gladstone and the Gardens Botanic Tondoon libraries, including multiple sites at community members from services volunteer receives Council were restated: year comparatives the following the During Standard. Accounting in a new rules by otherwise transition permitted unless policies in accounting and changes errors reclassifications, for generally restated is information Comparative stated. otherwise unless $1,000 nearest the to been rounded have statements financial in the included Amounts notes: following in the provided is outcomes and the assessments these detailing information Additional 12). (Note loan receivable and the 14) entity (Note controlled in its investment Councils of values carrying the to entirety compared was in its Corporation Airport Gladstone the of value recoverable the subsidiary, the of parent the as Council For 16). (Note property,and equipment note plant consolidated in the visible are valuation the of results The decrement. valuation a tangible to in additional adjustment obsolesce economic a significant of recognition in the resulting undertaken property,and equipment was plant airport of valuation A impairment. of indicators for Corporation Airport Gladstone the of assets associated the reassess to Council need for the emphasised factors other to in addition period, COVID-19 the during downturn economic The assets financial of Impairment (cont'd) COVID-19 1.10 Volunteer Services Comparatives and Rounding 1.09 1.08 Critical Accounting Judgements and Key Sources of Estimation Uncertainty (cont'd) 1 Significant Accounting Polices (cont'd) • • • • • • • $1,911,717). reported: (previously $2,168,068 to and Consolidated Council for increasing and inventories and resale development for purchased land of removal in the resulted This position. financial of statement 2019 comparative in the being restated and Consolidated Council both with for $255,351 inventories current to assets non-current from reclassified was and resale development for Land purchased $20,572,123). reported: (previously $13,343,841 to Consolidated and for $19,932,621) reported: (previously $12,896,525 to Council for in payables decreasing resulted This position. financial of statement 2019 comparative in the being restated Consolidated for and $7,228,282 Council with for $7,036,096 provisions payables current to from were reclassified Employee entitlements $29,566,544). reported: (previously $17,400,241 to Consolidated and for $27,249,268) reported: (previously $15,224,920 to Council for decreasing receivables in current resulted This position. financial of statement 2019 comparative in the being restated Consolidated for and $12,166,303 Council with for $12,024,348 assets other a new to line for receivables current from and wereprepayments reclassified recoverable yet GST not levied, charges Water $16,092,599). reported: (previously $11,722,658 to Consolidated and for $15,372,522) reported: (previously $10,949,232 to Council for decreasing income recurrent in other resulted This income. comprehensive of statement 2019 comparative in the being restated Consolidated for and $4,369,941 Council line with for $4,423,290 revenue a separate to income recurrent other from reclassified was revenue Sales Investment in controlled entity (Note 14) entity (Note in controlled Investment 12) (Note Receivables 10) (Note Impairment 2019/20 AnnualReport
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. Cemeteries Watersupply Sewerage Quarries
• • • •
1 Significant Accounting Polices (cont'd) Polices Accounting Significant 1 1.11 Taxation 1.11 operatingsurplus adjusted for permanent differences accountingand taxable between income. These transactions are upon eliminated consolidation. 2009 Whereactivityan of the controlled of entity Council is subject to the equivalentstax regime, the income expensetax is calculated theon Thecontrolled of entity Council incomean pays equivalenttax to Council accordancein the requirements with of the Counciltotax the Queensland payroll pays Government relationin to the following activities: Councilis from exempt income tax, however Council is subject to Fringe Benefits Tax, Goods Services and Tax (GST) on tax payroll and certainactivities.
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year ended the For Statements Financial to the Notes Risk and Compliance, Ethics, Integrity and Audit, Records, and Legal Services. assets, and supporting the highest standards of integrity. business This unit includes Financial Operations, Cost Revenue, Analytics, Governance, compliance and risk to management build a sustainable business through reporting accurate financial and compliance results, Council preserving objective of& the Finance Governance RiskThe business unit as part of the corporate function of Council financial, is the governance, to provide GovernanceFinance Risk and HealthManagement, Remuneration and Benefits,Safety and Performance Framework. and Wellbeing, partnering with people to continually their capability, develop business talent and performance. This unit includes Industrial Relations, Talent culture across Council that reflects the community and its spirit, organisational our internal and our values diversity. Council's success is enabled by objective of the PeopleThe Culture & Safety business unit as part of the corporate function of Council is to build a safe, healthy, high performance People CultureSafety and Events and Entertainment, Brand and Communications, Community Engagement and Partnerships, and Arts and Culture. community and Council; and by empowering community, our embracing diversity and enhancing social our landscape. business This unit includes strengthand toin develop Council's through a variety brand of mediums; by creating experiences thatoutcomes engage and deliver thefor CommunityFor and Events theDevelopment objective is to position Council as an accountable, transparent business that on its delivers promises Community Development and Events BiosecurityInnovation, and Environmental Health, Local Laws and Animal and Planning,Management, Building and Plumbing Services. quality, low effort, cost effective customer, planning and regulatory business services. This unit includes Customer Experience, Insights and Customer For Experience the objective is to transform Council's customer experience, liveability and sustainable by development delivering high Customer Experience Contract and Procurement, and Disaster and Response. Management efficient Delivery responses to disasterPlanning, Teams, and emergency business Support This unit Services,events. includes Works Works resources is consistently used to safely of work the program deliver on time, on budget and to the required quality. team also manages safe and The Operations businessThe unit to actsthe asset as provider owner a service of Council, through ensuring that the right mix of internal and external Operations AssetInnovation, Performance and Monitoring, and Conservation. and Environment appropriately planned, built, acquired, used, maintained and disposed business of. This unit includes Asset Asset Governance, Planning, Design and cycle costs of assets. our team ensures that services to This the community sustainable, are efficient, and affordable and that assets are Strategic Asset Performance fulfils the Asset role, Manager strategicallythrough managing Council's assets toof and optimiseservice level the life Strategic Asset Performance and StrategicDevelopment Funding and Grants. Services, CEO, Elected Strategy Members, and Planning, Strategic Information Program Economic Management, and Technology, Transformation basis for measuring progress and impact both organisationally and within the wider community. business This unit includes the Mayor, Executive changedelivers initiatives that enable Council to execute on plans with a clear focus, sense of priorities,shared purpose and agreed-upon and a Strategy is responsible and Transformation Council's developing for business strategy, process, and technologyinnovation team agenda. The Strategy Transformation and activities relatingThe to Council's functions on in reported Note Analysis - 2 (b) of Results by Function as are follows: 2(a) Component Functions of Council 2 Analysis Results by of Function 2019/20 AnnualReport
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OUR FINANCES 13
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2,240,000 20,297 10,217 (195,906) (4,721) - (191,185) 216,203 14,801 185,710 15,692 consolidated Total
Controlled entity net of eliminations of net entity Controlled (3,428) (413) (423) (9,620) 10 - (9,630) 9,208 - 9,207 -
Total Council Total 2,243,428 20,710 10,640 (186,286) (4,731) - (181,555) 206,996 14,801 176,503 15,692
Finance Governance and Risk and Governance Finance 207,445 (5,633) (5,633) (6,035) - - (6,035) 402 - 402 -
People Culture and Safety and Culture People 28 1,655 1,655 1,352 - - 1,352 303 - 87 216
Community Developments and Events and Developments Community 86,533 (15,145) (15,135) (17,323) (29) - (17,294) 2,178 20 1,127 1,031
Customer Experience Customer 3,466 (8,238) (8,238) (11,501) - - (11,501) 3,263 - 2,768 495
Operations 61,667 (9,543) (9,560) (22,610) 16 - (22,626) 13,067 - 12,538 529
Strategic Asset Performance Asset Strategic 1,849,461 (23,682) (33,725) (117,298) (4,695) - (112,603) 93,616 14,738 74,498 4,380
Strategy and Transformation and Strategy 34,827 81,295 81,276 (12,871) (24) - (12,847) 94,166 43 85,082 9,041
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Grants Other Grants
operations
Impairment Capital Recurring
Recurring Capital recurring recurring expenses Total Assets Assets result Net Total income Total
Net result from from result Net
Gross program expenses program Gross income program Gross Function
Year ended 30 June 2019 June 30 ended Year
Recurrent revenue relating to the rates generation has been moved from Strategy and Transformation to Finance, Governance and Risk in line with an amendment to the operating model. model. operating the to amendment an with line in Risk and Governance Finance, to Transformation and Strategy from moved been has generation rates the to relating revenue Recurrent
Total consolidated consolidated Total 2,483,692 (23,815) (2,730) (235,706) (33,993) - (201,713) 211,891 12,908 187,054 11,929
Controlled entity net of eliminations of net entity Controlled (530) 53,054 (1,375) 45,528 (767) 55,196 (8,902) 7,527 - 7,527 -
Total Council Total 2,484,222 (76,869) (1,355) (281,233) (33,226) (55,196) (192,811) 204,364 12,908 179,527 11,929
Finance Governance and Risk and Governance Finance 183,538 84,802 84,802 (8,432) - - (8,432) 93,234 - 85,232 8,002
People Culture and Safety and Culture People 25 (2,502) (2,502) (2,788) - - (2,788) 286 - 10 276
Community Developments and Events and Developments Community 68,443 (15,764) (15,709) (17,284) (183) - (17,101) 1,520 128 583 809
Customer Experience Customer 3,468 (7,097) (7,093) (9,917) (4) - (9,913) 2,820 - 2,304 516
Operations 60,827 (12,382) (12,343) (35,509) (71) - (35,438) 23,127 32 21,950 1,145
Strategic Asset Performance Asset Strategic 2,159,855 (56,711) (36,265) (138,500) (32,884) - (105,616) 81,789 12,438 68,268 1,083
Strategy and Transformation and Strategy 8,066 (67,215) (12,245) (68,803) (84) (55,196) (13,523) 1,588 310 1,180 98
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Grants Other Grants
operations
Impairment Recurring Capital
Capital Recurring recurring recurring expenses Total Assets Assets result Net Total income Total
Net result from from result Net
Function Gross program income program Gross Gross program expenses program Gross
Year ended 30 June 2020 June 30 ended Year
2(b) Income and expenses defined between recurring and capital are attributed to the following functions: following the to attributed are capital and recurring between defined expenses and Income 2(b) 2 Analysis of Results by Function (cont'd) Function by Results of Analysis 2
2019/20 Annual Report
For the year ended 30 June 2020 June 30 ended year the For
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
Notes to the Financial Statements Financial the to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Statements Financial the to Notes Rate andutility charges time point in a at recognised Revenue Other recurrent income Fees charges and Total revenue Less: Concealed water concessions Less: Concessions andpensioner remissions Less: Discounts Total rates and utility charge revenue management Waste Sewerage consumption, rental andsundriesWater Water General rates period, they are recognised as they revenue when are received. 2019 accounting policy: Rates are recognised as revenue at the start of the rating period. If aratepayer pays their rates before the start of the rating the rating period. which is the beginning of the rating period to which they relate. Rates in are advance payments recognised made as afinancial liability until the beginning of 2020 accounting policy: Rates andannual charges are recognised as Council revenue when obtains control over the assets comprising these receipts Capital grants, subsidies, contributions anddonations Recurrent grants, subsidies, contributions anddonations Capital grants, subsidies, contributions anddonations Recurrent grants, subsidies, contributions anddonations Note 32. Interest andrental income are income not within the scope of these Standards not beenclassified andhave within this table. or recognised in the current year based onthe satisfaction of performance obligations. Further information Accounting onthe new Standards is provided in reported in this note has beenclassified according to the applicable Standard, andpresented as either being recognised at apoint in (i.e. time uponreceipt) followingThe table has beenincluded to assist with understanding the impacts of AASB 15andAASB 1058in this year revenue The of implementation. Rate and utility charges Sales revenue Sales revenue Revenue recognised over time Rate(a) and utility charges 3 Revenue analysis 2019/20 AnnualReport Note 3(d) 3(b) 3(a) 4(b) 4(a) 3(d) 4(b) 4(a) 3(e) 30 June 2020 AASB 15 AASB $'000 $'000
(12,346) 163,768 150,434 Consolidated 2020 33,536 31,804 17,973 16,067 88,172 21,187 31,271 5,493 1,295 2,957 1,634 2,265 9,752 (140) (848) Consolidated 970 - - - 30 June 2019 AASB 1058 $'000 $'000 (11,839) 173,832 150,434 159,936 169,295 147,272 31,416 16,894 15,699 86,995 8,002 2,488 4,537 4,537 8,371 8,932 (793) (32) - - - - 30 June 2020 AASB 15 AASB $'000 $'000 (12,346) 163,852 150,518 26,614 31,804 17,973 16,067 88,256 14,389 24,349 5,547 1,295 2,957 1,456 2,265 9,752 (848) (140) Council 2020 970 - - - Council 30 June 2019 AASB 1058 AASB $'000 $'000 (11,839) 150,518 174,422 160,022 147,358 169,885 31,416 16,894 15,699 87,081 8,002 2,994 4,537 8,371 4,537 8,932 (793) (32) - - - - Page 140 14 OUR FINANCES 15 Page 141 - 759 967 4,065 6,198 1,603 1,147 9,707 3,098 $'000 $'000 30 June 2019 30 June 30 June 2019 30 June
Council Council - 600 624 2,789 1,436 1,366 2,189 10,963 14,389 $'000 $'000 30 June 2020 30 June 30 June 2020 30 June 759 967 4,390 8,249 1,147 1,603 6,198 3,423 17,956 $'000 $'000 30 June 2019 30 June 30 June 2019 30 June
624 600 Consolidated Consolidated 3,017 6,798 1,436 1,366 2,417 21,187 10,963
$'000 $'000 30 June 2020 30 June 30 June 2020 30 June 2019/20 Annual Report Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon lodgement of the relevant upon lodgement relevant the of is this Generally funds. the to entitlement upon unconditional recognised are and charges Fees
(c) Interest received Interest (c)
(b) Fees and charges and Fees (b) 3 Revenue analysis (cont'd) analysis 3 Revenue Interest received Interest Fees and charges and Fees Interest received from term deposits is accrued over the term investment. the over the of accrued is from term deposits received Interest applications or documents, issuing of the infringement notice or when the service is provided. provided. is when service the or notice infringement the of documents, issuing or applications 2019 accounting policy: 2019 accounting Airport fees and charges include runway and terminal charges. Aeronautical revenue is charged on the basis of number of arriving and departing airline airline and departing number of arriving of basis on the charged is revenue Aeronautical charges. and terminal runway include charges and fees Airport on the based charged is aviation General Airport. Gladstone at aircraft airline and chartered scheduled and maximum landing of weight passengers take-off and passenger of respect in measures Government of mandated cost the of security Recovery only. on landings maximum aircraft of weight take-off revenue. aeronautical in included also is baggage screening, Licences granted by Council are all either short-term or low value and all revenue from licences is recognised at the time that the licence is granted rather rather granted is time licence the the at that recognised is fromrevenue licences value and all low or short-term either all are Council by granted Licences term licence. the the than of receives the benefit of the goods / services being provided. The performance obligation relates to the specific services which are provided to the customers customers the to provided are which services specific the to relates obligation The performance provided. being services / goods the of benefit the receives or refunds to relation in Council for obligation no material is There service. the of provision the of 30 days within terms are payment the and generally returns. Revenue arising from fees and charges is recognised when or as the performance obligation is completed and the customer customer completed and the is obligation performance the as when or recognised is and charges from fees Revenue arising policy: 2020 accounting Airport fees and charges fees Airport Fees and charges Fees and registration Licences Interest from overdue rates and utility charges and utility from rates overdue Interest Interest received from investments received Interest Building and development fees Building Waste fees management tipping - fees
For the year ended 30 June 2020 30 June ended year the For Notes to the Financial Statements
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Statements Financial the to Notes Other Rental income taxIncome equivalent - controlled entity taxIncome equivalent - entity state government Controlled entity dividend Commissions Fines andpenalties Entertainment Convention Centre income reduction in rental revenue of $197,462. In response to the COVID-19 Council pandemic, rent waived for commercial tenants for the period 1March - of 30June impact this 2020. The decision is a All other revenue is recognised uponreceipt, unless alternative is treatment specifically required under Australian Accounting Standards. Rental andother investment property revenue from is recognised as onaperiodic income straight line basis over the lease term. an after tax net loss for the preceding year, in accordance of Corporate with the Statement Intent. Dividends are recognised once they are formally declared by the directors of the controlled entity. No dividend declared was to bepaid to Council following receivables for initial recognition of statutory receivables. infringements from Revenue is recognised onissue of infringement notice after applying the expected credit loss relating model of to impairment General sales Contract andrecoverable income undisputed delivery of the goods. Sales of goods is recognised the significant when risks andrewards of ownership are transferred to the buyer, generally the customer when has taken the servicewhen is performed. to that activity. consideration Where is received for the service in it advance is included in contract liabilities andis recognised as revenue in the period the contract activity based oncosts incurred at the reporting date. is Revenue at the measured fair of value consideration received or receivable in relation hourly charge for the employees. and use of equipment Contract revenue andassociated costs are recognised by reference to the stage of completion of operation of Council facilities. owned contracts from Revenue andrecoverable works generally comprises of arecoupment material costs together with an Council generates sales of services anumber revenue from including contracts with the Queensland for State Government road earthworks, and and Other recurrent income Sales revenue (d) Sales revenue 3 Revenue analysis (cont'd) (e) Other recurrent income 2019/20 AnnualReport 30 June 2020 30 June 2020 $'000 $'000
5,628 1,506 2,223 6,788 6,417 Consolidated Consolidated 805 208 264 622 371 - -
30 June 2019 30 June 2019 $'000 $'000 11,722 4,370 3,206 6,350 1,100 4,370 - 631 219 216 - - 30 June 2020 30 June 2020 $'000 $'000 4,990 2,223 6,841 6,470 625 541 506 208 264 623 371 - Council Council
30 June 2019 30 June 2019 $'000 $'000 10,950 4,423 1,415 6,350 1,105 4,423 - 631 689 219 325 216 Page 142 16 OUR FINANCES 17 Page 143
2019/20 Annual Report
4 Grants, subsidies, contributions and donations and contributions subsidies, Grants, 4 Physical assets contributed to Council by developers in the form of road works, stormwater, water and wastewater infrastructure and parkand infrastructure wastewater and water stormwater, formroad developersworks, the of in by Council to contributed assets Physical and assets the of control obtains Council (i.e. maintenance" development the "on becomes revenue as are recognised when equipment approximate the determine to plans and formdrawings the of in data sufficient thereis and maintenance) ongoing forany liable becomes non-current as are recognised thresholds recognition the of valuea excess in with contributions Non-cash assets. valuesand such of specifications expenses. are recorded as thresholds the Those assets. below Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in which Council obtains control over control obtains Council which in revenue as year the natureare recognised in in are non-reciprocal that contributions and subsidies Grants, Where funds. of receipt on various the as revenue nature, recognised in usually are is received grants is are reciprocal that themwhich grants. reciprocal have not did any Council 2019, In agreement are fulfilled. funding under the performanceobligations significantly below fair value, the revenue is recognised when the asset is acquired and controlled by Council. by controlled and acquired is asset the when value, revenue fair the recognised is below significantly accounting2019 policy: Capital grants Capital be will which specifications identified to equipment and plant property, of item an or construct acquire to Council received grants enable to Capital For completed. is or purchase construct to obligation the revenue as when and are recognised as enforceable is which and control underCouncil’s most the be deemed to is this since incurred costs with accordance in progresses construction the as generally is this projects, construction Where margin. profit no is there as project for orconstruction are purchased the donated of assets completeness the measure of appropriate Assets arising from grants in the scope of AASB 1058 is recognised at the assets fair value when the asset is received. Council considers whether whether considers received. Council is asset the value fair when assets the at recognised is 1058 AASB of scope the in from grants arising Assets standard. relevant the accounting with accordance in are recognised which asset the with associated items or equity liability related thereare any received. is asset the that value time the at asset remaining forany recognised is income have then recognised been liabilities and assets the Once generally the input methods of either costs or time incurred are deemed to be the most appropriate methods to reflect the transfer of benefit. of transfer the reflect to methods appropriate most arethe be deemed to incurred or time costs either of methods input the generally 1058 under AASB income Grant control transfers at a point in time and others have continuous transfer of control over the life of the contract. Where contract. the overof control of life transfer the have others and time continuous over transferred in point is a at time, control transfers control Where grant income arises from an agreement which is enforceable and contains sufficiently specific performance obligations, revenue is performance obligations, specific sufficiently contains and enforceable Whereis from agreementan which arises income grant as The are varied agreement, such the on based performance obligations satisfied. is performance obligations each of control when recognised grant. the of terms the on depending vary terms Payment specified. as othermilestones and services events, contracted provision of the hosting is performance obligation Each forothers. milestones payment achievement the certain on and received of grants some for upfront is Cash For grantagreements. performance some obligations within and control of transfer the revenue reflects the that ensure to recognition considered 2020 accounting2020 policy: 15 under AASB income Grant Grants and Subsidies and Grants Non-Cash Contributions Non-Cash park and infrastructure wastewater and water stormwater, formroad developersworks, the of in by Council to contributed assets Physical becomes and assets the of control obtains Council (i.e. maintenance" development the "on becomes revenue as are recognised when equipment and specifications approximate the determine to plans and formdrawings the of in data sufficient thereis and maintenance) ongoing forany liable Those non-current assets. as are recognised thresholds, recognition the of valuea excess in with contributions Non-cash assets. valuessuch of received date the on value contribution fair the the of at are recognised contributions non-cash All expenses. are recorded as thresholds the below acquisition. of Developers pay infrastructure charges for trunk infrastructure, such as pumping stations, treatment works, mains, sewers, water and parks. These parks. and water sewers, mains, works, treatment stations, pumping as such infrastructure, fortrunk charges infrastructure Developerspay them. with associated performanceno obligation received thereis as when income as are recognised charges infrastructure Cash Contributions Cash Notesthe to Financial Statements For the ended year 30 June 2020
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year ended the For Statements Financial to the Notes (ii) Non-monetary(ii) revenue received: value in the policy) which economic and growth deliver development outcomes that align with Council's Economic and Planning Development Scheme. proposingcharges a rebate on levied developments for a introducedmaterial 2019 to provide change in of useNovember than those(other defined A discount of 50% was applied to contributions that themet conditions of Council's Infrastructure Charges Rebatescheme was Scheme. The Other contributions Less: Discounts contributionsDeveloper Commonwealth subsidies and grants subsidiesState Government and grants Monetary(i) revenue received: assets in and/or investment new assets. It also includes non-cash contributions which usually are infrastructure assets developers. from received Capital includes Revenue grants and subsidies which received tied are to specific projects for the replacement of upgrade existing or non-current subsidiesNon-government and grants Contributions Commonwealth subsidies and grants subsidiesState Government and grants General purpose grants Donated assets contributed by at fair developers (b) Capital(b) (a) Recurrent (a) 4 Grants, subsidies, contributions and donations (cont'd) 2019/20 AnnualReport 15 30 June 2020 30 June $'000
12,908 11,929 Consolidated 7,316 1,545 4,414 1,439 2,487 8,002 5,592 (13) 993 377 - 1 30 June 2019 30 June $'000 14,305 14,801 15,692 5,393 8,294 5,580 2,343 7,724 523 496 - 95 44 1 30 June 2020 30 June $'000 12,908 11,929 7,316 1,545 4,414 1,439 2,487 8,002 5,592 (13) 993 377 - Council 1 30 June 2019 30 June $'000 14,305 14,801 15,692 5,393 8,294 5,580 2,343 7,724 523 496 - 95 44 1 Page 144 18 OUR FINANCES 19 Page 145 9 4 90 39 20 55 14 - - - 254 328 973 100 302 633 5,650 7,080 59,643 59,971 56,047 45,686 (3,924) $'000 30 June30 2019 30 June30 2019 9 4 Council Council 94 89 45 26 60 36 ------310 321 988 684 6,400 7,527 66,705 67,015 64,217 51,790 (2,798) $'000 30 June30 2020 30 June30 2020 9 4 6 90 39 20 55 14 16 426 313 100 302 973 655 5,799 6,961 61,253 61,679 57,755 47,207 (3,924) $'000 30 June30 2019 30 June30 2019 9 4 6 94 89 45 26 60 36 15 - -
387 321 988 705 Consolidated Consolidated 6,558 7,554 68,444 66,033 68,831 53,344 (2,798) $'000 30 June30 2020 30 June30 2020 2019/20 Annual Report
5 Employee benefits5 Employee Other employee related expenses related employee Other Superannuation Less: Capitalised employee expenses Capitalised Less: employee date: reporting the at members and elected employees equivalent time Full membersElected Redundancy benefits Redundancy OfficeCEO of the Developments Community Events and Total staff wages and salariesand staffTotal wages leave entitlements Employee Experience Customer Riskand FinanceGovernance Operations PeopleSafetyand Culture Performance Asset Strategic Transformationand Strategy Operations Airport - ControlledEntity members Board ControlledEntity Councillors'remuneration The total cost attributable to these situations was $719,704 and is reflected within total staff wages and salariesand above. staff wages total isand within reflected $719,704 was situations these to attributable cost Thetotal duties. their out of paid carrying in respect allowances other and salary Councillorrepresents remuneration Essential operations staff have been placed on standby at times to allow Council the continued ability to respond to emergency situations. situations. emergency to respond to Council ability continued allow the times to at staff placedbeen have Essential standby on operations In response to COVID-19, Council staff are able to access up to 20 days of special, non vesting leave upon the satisfaction of criteria set out out set of satisfaction of leavecriteria the upon special, vesting non days 20 Council to up access able COVID-19, staff to are to response In 2020. July 10 to 2020 effective directive from March 18 inCEOa emergency
For ended the year June 30 2020 Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements year ended 30 June 2020 is $156,000 and this amount has been accrued accordingly. been accrued has amount and this $156,000 year 2020 is ended 30 June the for fee quoted The year 2018. ended 30 June the to relating works scope of out for $38,746 included year also 2018-19 The 2019-20. in $10,917 of in a reduction resulting $145,083 was billed amount total the however 2018-19 to accrued was amount This $156,000. year 2019 was ended 30 June the for services audit for value quoted The 1. Staff and Councillor associated expenses and Councillor Staff Water purchases Water fees and tipping disposal Waste Utility expenses and maintenance Repairs Property expenses Other and services material Motor expenses vehicle Insurance Fuel and softwareEquipment expenses and sponsorshipsDonations Contractors Consultants Audit byAudit the Auditor-General Queensland of Right of use assets of Right Intangible assets Property, plant and equipment Other adjustment value Fair Corporation costsFinance charged by the Queensland Treasury 7 Finance costs 7 Finance 6 Materials and services and 6 Materials 8 Depreciation and amortisation and 8 Depreciation
2019/20 AnnualReport 1 Note Note 19 16 21 30 June 2020 30 June 30 June 2020 30 June 30 June 2020 30 June
$'000 $'000 $'000 85,146 18,143 21,039 43,494 43,333 2,438 7,400 4,655 3,229 6,505 1,836 2,394 1,961 5,238 3,125 6,153 6,717 7,040 Consolidated Consolidated Consolidated 805 225 121 269 54 40 30 June 2019 30 June 30 June 2019 30 June 30 June 2019 30 June $'000 $'000 $'000 81,625 17,425 25,769 44,019 43,921 2,307 3,310 5,027 2,949 6,138 1,937 2,237 2,109 4,835 3,118 3,418 7,266 7,786 823 223 232 288 - 98 30 June 2020 30 June 30 June 2020 30 June 30 June 2020 30 June $'000 $'000 $'000 82,555 18,143 19,988 41,083 40,972 2,400 7,347 4,355 3,074 6,348 1,812 2,202 1,952 5,016 3,125 5,948 4,674 4,956 700 145 228 71 54 40 Council Council Council 30 June 2019 30 June 30 June 2019 30 June 30 June 2019 30 June $'000 $'000 $'000 78,418 17,425 24,198 41,470 41,372 Page 146 2,216 3,260 4,701 2,805 5,960 1,913 2,060 2,095 4,415 3,118 3,234 5,223 5,620 823 195 232 165 - 98 20 OUR FINANCES 21 4 29 24 Page 147 ------338 870 384 196 270 4,731 4,369 3,838 (1,222) $'000 30 June 2019 Council 75 46 20 39 ------332 212 200 (186) 1,278 33,226 32,848 31,210 $'000 30 June 2020 4 24 29 ------338 948 384 196 270 4,721 4,359 3,838 (1,310) $'000 30 June 2019 75 20 46 39 - - - - 332 767 212 200 (186) Consolidated 1,278 33,993 32,848 31,210 $'000
30 June 2020 15 16 Note
2019/20 Annual Report
9 Capital expenses 9 Capital 10 Impairment Furthermore, recent in the forecast years volumes adjusted have been significantly to reflect lower passenger numbers expected for the airport due to a demanddecline in for LNG and mining passengers. The impacts of the downturn upon the activities operational of the Gladstone Airport Corporation have served as an indicator of impairment. Further, the net assets of the Gladstone Airport Corporation at 30 June 2020 were less than the investment of $71.9m Council. by held The the impacted emerging airport has industry been significantly COVID-19 by situation, periods with of interstate and intrastatetravel restrictions causing passenger numbers through the Gladstone reduce market to a general decline in Airport addition in to significantly values for airport assets due to COVID- 19. consolidated Note 16) level in and Councils investment the Gladstone in Airport Corporation (Note as 14). a controlled No other entity assets were impaired. Council For ended 30 June 2020, indicators the year of impairment were observed assets for the physical of the Gladstone Airport Corporation (reported at a Where an impairment loss reverses, subsequently amount the carrying of the asset is increased to the revised estimate of its recoverable amount, but so that the increased amount carrying does not exceed amount the carrying that have would determined been had no impairment loss been recognised for the asset prior reversal in A years. of an impairment loss is recognised as income unless the asset is carried at a revalued amount, which in case the reversal of the impairment loss is treated as an asset revaluation surplus increase. An impairmentAn loss is recognised as the expense an Statement in 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 available. to the extent indicators of impairment basis. on an annual If an indicator of possible impairment exists, Council determines the asset's recoverable amount as the higher of fair value less costs to dispose which amount the asset's or value use. by in Any amount carrying exceeds the recoverable amount is recorded as an impairment loss. Physical assets,Physical and other intangibles assets financial investment including controlled in entities are assessed and grouped as appropriate for individually Revaluation decrement to relating investment property Impairment and equipment plant of property, Sewerage infrastructure Water infrastructure Investment property Parks furniture and other structures Roads, drainage and transport infrastructure Land equipment and Plant Buildings Proceeds from and equipment sale plant of property, Less Book equipment and value plant of property, disposed: Intangibles Loss on disposal of non-current assets non-current of disposal on Loss Total capital expenses Loss on write-off of non-current assets non-current of write-off on Loss
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financialthe Statements to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Notes to Statements the Financial The effect of a change in each key assumption is as follows: as is key in each assumption achange of effect The the asset revaluation surpluses for the relevant classes, as the assets are held at fair value. value. held fair at are assets the as classes, relevant the for surpluses revaluation asset the reduced adjustments These class. structures andother furniture parks, the against and$341,585 building the against $13,402,000 class class, infrastructure andtransport drainage applied with $30,548,415 roads, the apportioned against was obsolescence economic relating to $44,292,000 of decrement A further class. infrastructure and transport drainage applied roads, the against was $4,420,000 of A decrement tangible revaluation 16). (Note balances property, plant andequipment consolidated the impacted held Corporation by Airport Gladstone the assets airport the of valuation The entity in controlled investment of Impairment cash). surplus of (inclusive $16,657,848 of amount recoverable its 2020to 30June at investment the of carrying the value reduce to $55,196,030 of expense impairment an recorded has in Council Council to anexit event, berepatriated could that Corporation Airport in $12,467,941 of Gladstone cash surplus considering After entity in would only controlled 14). (Note beapplied impairment investment the andthat against information) further 12for Note (see impaired not was loan the that receivable determined was It recoverability. for assessed was loan the receivable application the impairment, of determining In valuation: within the used were following The be$37,905,000. anexternal key to valuation through assumptions calculated was CGU the of amount recoverable a10-year The period. covering Council of function by andapproved governance the by prepared management onfinancial budgets based flow projections cash use calculations The assumptions. of use the require which calculations onvalue-in-use based determined was CGU the of amount recoverable The impairment. recognised to 2020prior 30June at $105,569,471 of with atotal value (CGU) unit acash-generating largely inflows form to they independent cash oneanother, of combined generate donot are assets two the As 12). (Note Corporation Airport Gladstone the from entity loan in andthe receivable controlled 14) (Note investment –the Airport Gladstone relatingthe to assets two holds Council (cont'd) Council Consolidated owner. asset unit, as business Strategy the in 2under Note andTransformation beenreflected has expense impairment The Total Impairment 10 Impairment (cont'd) • • • • and 2023-24 financial years buildingbyand 2023-24 annual growth 2.5% to 2030. followed period by in upona2-year 2022-23 the recovery based growth is 0.5% rate growth The 2.5%. - 0.5% 2022-2030 rate growth (pax) Passenger year the 2019 as level ended30June same the to will Airport return Gladstone the through numbers passenger that projection onthe based is a2-year of recovery year the assumption during The 2021. Airport ending 30June Gladstone the of operations the affect to still expected are COVID-19 of by ordinary impacts operations The year the years). 2022(2 ending pre-COVID-19 to 30June Recovery Discount rate 8.0% rate Discount 2.5% rate growth Terminal recoverable growth rate amount of - Impact on terminal terminal 0.5% in $'000 (1,788) 2019/20 AnnualReport recoverable growth rate amount of Impact on +0.5% in terminal terminal $'000 2,149 in discount rate amount of -1% recoverable Impact on $'000 7,620 Note 14 in discount rate amount of +1% 30 June 2020 30 June
recoverable Impact on $'000 $'000 (5,339) Consolidated - - recovery time amount of +1 30 June 2019 30 June recoverable year post- Impact on COVID $'000 $'000 (3,170) - - 30 June 2020 30 June recoverable growth rate amount of Impact on -0.5% pax $'000 $'000 (4,553) 55,196 55,196 Council 30 June 2019 30 June recoverable growth rate amount of +0.5% pax Impact on $'000 $'000 4,719 - - Page 148 22 OUR FINANCES 23 Page 149 2,574 1,986 8,501 95,224 84,149 33,856 67,570 103,412 $'000 $'000 30 June 2019 30 June 2019 Council Council - - 4,814 6,600 94,047 74,622 20,191 99,627 100,647 $'000 $'000 30 June 2020 30 June 2020 2,574 2,955 8,501 95,224 84,149 46,218 67,570 116,743 $'000 $'000 30 June 2019 30 June 2019 - - Consolidated Consolidated 5,708 6,600 94,047 87,941 20,191 100,647 113,840 $'000 $'000
30 June 2020 30 June 2020 25 23 Note Note
2019/20 Annual Report
11 Cash and cash equivalents cash and 11 Cash 10 Impairment (cont'd) 10 Impairment Deposits at call Term deposits Balance per Statements of Cash Flows Council has adequate working capital facilities to meet its debts as and when due. Reserves Waste refund received levy advance in Total unspent restricted cash Unspent government grants and subsidies reporting the at restrictions expenditure imposed Internally date: Externally imposed expenditure restrictions at the reporting reporting the at restrictions expenditure imposed Externally date relate to the following cash assets: Council's cash and cash equivalents are subject to a number restrictions of external and internal that limit amounts for available discretionary or future use. These include: Cash at bank and on hand variable interest rates. Deposits the with QTC Cash Fund are capital guaranteed. to an insignificant risk of changes value. in Cash, deposits at call, and term deposits of Australian are Banks at a variety held and Credit Unions and the Queensland Treasury Corporation (QTC) with credit ratings ranging from or Gladstone unrated. to BBB AA+ All Airport Corporation investments the QTC are in held cash management account bearing Cash and cash equivalents the statement in of cash flows include cash cash on hand, all and cheques receipted end, but deposits not banked at the year institutions, at financial call with held other short-term, investments liquid convertible that are highly to known readily amounts of cash and which are subject All adjustmentsAll are as shown the consolidated and equipment in plant property, note (Note 16). Consolidated (cont'd) $767,000 decrementA for economic obsolescence was to assets also applied and equipment the plant in class, however this amount was recognised as an impairment Note expense 9 as in the assets are at cost. held
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financialthe Statements to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year ended the For Statements Financial to the Notes rate rate debts, Council does not impair any rate receivables. Activities) as a QTC liabilityas a QTC and controlled entity receivable. therefore, no impairment has been recognised against the loan. expected credit held cash losses.by reserves The the Gladstone Airport Corporation adequate 12 are tomonths service of repayments and had not significantly increased since initial recognition, and wouldtherefore only need to be impaired to the extent of 12 months’ worth of assessed the recoverability cashflow of the loan receivable. Through modelling, Council concluded that the credit risk associated with this loan applying the impairment implicitWhen in the of valuation the Gladstone Airport Corporation to Note (refer 10 for additional detail) Council has facility annum. The is an amortising loan with full repayment of principle due upon expiry of theon 30 June agreement 2030. Loans to the Gladstone Airport Corporation at are a fixed withrate an interest rate of 6.06%, together with an administration fee of 0.1% per accordance with the requirements of the Local Government (Beneficial Enterprises and Business Activities) Regulation 2010 (repealed). A competitive neutrality margin of 1.5% on the outstanding loan balance is also payable by the Gladstone Airport Corporation to Council, in time band. the purposesFor of completing the maturity analysis, the principal component of these loans has been included inyear than thefive more loan is secured byThe a fixed and floating the Gladstone charge over Airport Corporation's assets and undertakings. On Shareholder loan Interest Because Council is empowered the under provisions of the June 2020 is not material. Refer to Note 33 information for further about credit risk. at 30 June. in If an isamount a subsequent recovered period it is recognised Impairment of receivables thefor year as revenue. ended 30 Debts regularly are assessed for collectability and allowance is made, where appropriate, for impairment. All known bad debts were written-off usuallyare a maximum years of five with interest charged at non-commercial rates. Security is not normally obtained. deliveryservice Settlement advance. or of receivables is required within 30 days after the invoice is loansfor issued. and advances Terms Receivables, loans amounts are owed and advances to council at year end. recognised They are at the amount due at the time of sale or pandemic, on other debtors. There is no concentrationon other debtors. There of credit risk for rates and utility charges, fees and other debtors receivable. Rateable revenue and utilityRateable revenue charges Current Other debtors Less: loss allowance Interest receivable Accrued revenue Shareholder loan Gladstone - Airport Corporation Non-current Gladstone Airport Corporation 12 Receivables the 1 is July Regulation charged interest 2012 on on Gladstone 2010 overdue outstanding 2019/20 AnnualReport (repealed) rates Airport rates was . The Corporation effectively (9.83% Statement per came frozen annum of Corporate into by Local Government Act 2009 30 June 2020 30 June way from existence $'000 of 11,942 15,726 1 Intent 2,663 1,124 (132) concession Consolidated July
129 - - - under outlines 2019, the from previously
30 June 2019 30 June the Local $'000 acknowledgement 1 to sell an owner's property outstanding to recover March 11,250 17,400 Government 4,636 1,443 (246)
11% - - 317 - 2020 per to annum). 30 (Beneficial 30 June 2020 30 June of June debt $'000 In 2020. 11,942 15,265 33,716 33,716 which 2,157 1,098 (116) response Enterprises 129 55 Council Council No interest to 30 June 2019 30 June currently the and $'000 is COVID-19 Business charged 11,250 15,224 33,716 33,716 2,525 1,354 holds (150) (72) 317 Page 150 24 OUR FINANCES 25 Page 151 75 - - 255 695 1,142 1,837 2,167 71,854 71,854 $'000 $'000 30 June 2019 30 June 2019 Council Council 61 255 772 2,128 2,900 3,216 71,854 16,658 (55,196) $'000 $'000 30 June 2020 30 June 2020 75 255 695 1,837 2,167 1,142 $'000 30 June 2019
61 772 255 Consolidated
2,128 2,900 3,216 $'000 to administer the for-profitairport activities. 30 June 2020
2019/20 Annual Report
goods to be supplied at nominalno or charge;and goods to be used for the provisionof services at nominal no or charge.
• •
14Investment in controlled entity - Gladstone Airport Corporation 13 Inventories 13 Inventories held for sale distribution for held Inventories materials and road Quarry Impairment has been recognised against the investment to the extent thatthe total value of the GladstoneAirport Corporation cash-generating unit at 30 June 2020 is reduced to its recoverable amount as determined the by value in use valuation. Additionalinformation regarding the valuationimpairment and amount is provided inNote 10. Investment at cost Less: accumulated impairment Council's investment in the controlled entity, Gladstone Airport Corporation, is accounted for at cost in Council's separatefinancial statements as fair value cannotreliably be measured. This investment is eliminatedin the financial statementsof the economicentity upon consolidation. Council's consolidated financial statements incorporate theassets, liabilitiesresultand of the Gladstone Airport Corporation in accordance with AASB10 and the accounting policy described in Note 1 (1.02). Gladstone Airport Corporation is a Local GladstoneGovernment by Corporation owned wholly Regionalowned Council. Gladstone Airport Corporation became a corporatised entityJulyon 1 2012 in the State ofQueensland the under Local Government (Beneficial Enterprises and Business Activities)Regulation (repealed) 2010 Land acquired Council by the with intention of reselling it without or (with further development) is classified asinventory. This land is valued at ofthe costlower netor realisable value. As an inventory item,this land held for resale is treatedas current a asset. Proceeds from the sale of thisland will be recognisedas saleson the revenue signing of a valid unconditional contractof sale. These goods valued are at cost,adjusted, applicable, when for loss any of service potential. Inventories heldfor distribution are: Stores materials and raw held for resale valued are atof the cost lower and net realisablevalue include,and applicable, where direct material, direct labour and an appropriate portion of variable overheads. and fixed Costs assigned are on thebasis of cost.average weighted Plantand equipment stores Land purchased for development and sale and development for purchased Land Total inventories
For the year ended 30 June 2020 June 30 year Forthe ended Notes to the Financial Statements Notes Financial the to
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements No contingentNo rentals were recognised during the current or prior reporting periods. At reporting date there was no property constructed being or futurefor developed use as investment property. has been recorded 30 for June 2020. the for material investment property has been thedeemed assessmentAn of movement valuation asset and subtherefore, class a decrement dataobservable sales the historical in relevant nature market properties for and specification. similar of with a asdesktop at effective 30 Junevaluation 2020. was value Fair by determined reference to market including based evidence propertiesThese were by at value valued fair and Asset Valuers Management, APV firm, valuation an independent professionally qualified 3(e). Investment property properties which commercial of comprises are rented these out. derived propertiesfrom shown income The is at Note year at financial value Fair end of investment property of Revaluation investment property of Sale year financial of at value Fair beginning Investment property reconciliation - at independent valuation Buildings Land - at independent valuation Owned investment property the which Income in period in Comprehensive they arise. Investment property not is depreciated not and is tested impairment. for annually at the investment date. property balance of the value changes in fair Gains orfrom arising losses the in Statementsare included of acquired significantly for below investment recognition. property recorded it is value All on initial fair at value fair subsequently is revalued Investment property initially is recognised at cost transaction (including costs) investment property and subsequently at value. Where fair is service. a for currently future undetermined use. Investment property doescommunity not include or housing other property to held provide a social Investment property property is the for held primary purpose earning rentals of by and/or held land appreciation. capital includes This Council property 15 Investment 2019/20 AnnualReport Note 9 9 30 June 2020 30 June $'000 3,002 1,423 3,002 3,334 1,579 (332) Consolidated
- 30 June 2019 30 June $'000 3,334 1,423 3,334 4,056 1,911 (338) (384) 30 June 2020 30 June $'000 3,002 1,423 3,002 3,334 1,579 (332) - Council 30 June 2019 30 June $'000 3,334 1,423 3,334 4,056 1,911 (338) (384) Page 152 26 OUR FINANCES 27 Page 153 . All other non-current assets, assets, Allnon-current . other
and AASBand 13 Fair Value Measurement Waterinfrastructure Workin progress Sewerage infrastructure Sewerage Roads, drainage and transport infrastructure transport and drainage Roads, Park furniture and other structures other and furniture Park • • • • • Property, PlantEquipment and Property, 2019/20 Annual Report
Cultural assets Culturalassets Plantequipmentand Major plant and equipmentand plant Major Buildings Land and improvementsand Land
• • • • •
16 Property, Plant and Equipment and Plant Property, 16 Acquisitionof Assets Council has determined that plant which has an individual cost in excess of $350,000 is of high value to Council. Plant which meets this criteria criteria this ismeets of of individualan has $350,000 high Council. value in Plant to which excess cost which plant Councildetermined that has includes class of inprimarily of higha if danger becoming fluctuationsor plant The price degree asset is to major is it prone obsolete. specialisedequipment.earthmoving Major PlantEquipment and Major Separately identified components of assets are measured on the same basis as the assets to which they relate. relate. they which to sameassets identified measuredbasis the the on as are of components assets Separately the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on carrying in the A decrease expense. an as recognised class previously for the decrement revaluation a reverses it extent the class. asset that to relating surplus revaluation in the if balance, the any, exceeds it extent the to expense, an as is revaluation charged in change the any and asset amountof the carrying in change the the with proportionately accumulated is depreciation restated revaluation, On of estimate remaining useful life. in the index. index. inthe to except surplus, revaluation asset class of the appropriate the to is credited of revaluation asset an arisingincrement the revaluation on Any Non-current physical assets measured at fair value are revalued where required so that the carrying amount of each class of asset does not amount of not does class each of asset carrying the that so required fair where revalued valuemeasured at are assets physical Non-current five every once least at assets revaluing these comprehensively This is achieved by date. differ reporting from materially fair the its value at materiala been has variation there performed annualan on basis where being otherwise usinginterim suitablea index, valuations, with years Land and improvements, buildings, major plant and equipment and all infrastructure assets are measured on the revaluation basis, at fair at basis, revaluation measured the on are assets equipmentand buildings,improvements, and Land plant alland major infrastructure AASB 116 with in value, accordance Valuation Wage and materials expenditure incurred for the acquisition or construction of assets are treated as capital expenditure. Routine operating Routine operating capital as expenditure. treated are Wageof assets acquisitionconstruction or for the incurred materialsand expenditure while incurred, as expensed are assets non-current of the maintain capacity operational to the minorand renewals costs repair maintenance, maintainis capitalised. potential to service its of component replacementof asset major an a the to relates that expenditure received to sell the asset in an orderly transaction between market participants at the measurement date. measurement date. the at participants market between transaction in orderly an sell asset to the received Expenditure CapitalOperating and Non-monetary assets, including property, plant and equipment, received in the form of contributions are recognised as assets and revenues at at revenues and assets as recognised form inare received equipment, and the of plant contributions including property, assets, Non-monetary be would that Fair price value class. is the asset respective for the thresholds recognition the value exceeds that Council where fairvalue by Acquisition of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs plus given costs consideration fair as is value assets the Cost determined as of the cost. at recorded initially Acquisitionare of assets design fees, fees establishment costs. alland other including acquisition, survey the incidentalfreight, to cost. measuredequipment and at plant are principally basis except for those categorised as networked. Networked assets are generally components of a complex asset and individually are not not are individually and of components asset complex a generally are assets Networked networked. as categorised for those basisexcept functional. Asset thresholds are set for each class as outlined in the property, plant and equipment tables. Thresholds apply to all assets on a stand alone stand a on all to assets apply Thresholds equipmentand plant tables. classproperty, outlined for each as in the set are thresholds Asset The classes of property, plant and equipment recognised by Council are: equipment and plant by recognised Theclasses of property,
For ended the year June 30 2020 Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements the State pursuant to the statements. relevant not Therefore is thisthese legislation. recognised land in financial use underdedicated the and opened public for Land Act 1994 or the Act not Land Title 1994 and is controlled by but controlled byis Council does not control Council any GladstoneThe Regional under under land roads. land the road All network within area has been Council Land Under Roads atmeasured written down current replacement cost are these used of to assets lives estimate the at useful each reporting date. obsolescence, intentions. or management assessmentsas partcondition The performed commercial the process valuation of annual assets for reporting period and adjusted where necessary to reflect any the changes in pattern consumption, physical of wear and tear, or technical property, of values and residual lives methods,Depreciation estimated useful assets plant and equipment are reviewed at the each end of or the to unexpiredimprovements Council the period of lease, whichever the is shorter. progressively allocated tois land improvements or of on amount leasehold depreciable theThe of over thelives estimated useful as the basis assetsame to which they relate. Major spares purchased specifically particular for assets that are above the asset recognition threshold and aredepreciated capitalised on the and thethe of capitalised assetnew to life depreciated Council. is amount depreciable over useful the remaining thedistinct asset from to which they relate. Any expenditure that increases the originally assessed capacity or service an asset potential of is assets have separately components that areWhere identifiable subject to regular replacement, these lives components are useful assigned readycommissioned use. for Assets are thedepreciated or, date from acquisition respect of in internally of constructed assets, the an asset and time completed from is assets. Council all of consumption progressively to Management Council. that over life believe its estimatedthe useful straight-line appropriately basis reflects the pattern of on a calculated straight-line so as basis to write-off the net cost asset, or each depreciable revalued of amount its value, less estimated residual on other and Depreciation property, improvements life. land notLand is useful depreciated as it has an unlimited is plant and equipment Depreciation Investment property under as investment constructionproperty. classified is to Refer Note 15 furtherfor information. appropriate proportion labour overheads. of costThe property, of constructed being plant and equipment by the costincludes purchased of services, Council materials, direct labour and an Progress in Work Capital 16 Property, Plant and Equipment (cont'd) 2019/20 AnnualReport
Page 154 28
OUR FINANCES 29
Page 155
Total additions Total 47,000 42,077 - 34 - - 5 540 4,259 85 -
Other additions Other 27,568 25,590 - 34 - - 5 - 1,939 - -
Renewals 19,432 16,487 - - - - - 540 2,320 85 -
Additions comprise: Additions $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
* Disposals for WIP includes prior year projects expensed projects year prior includes WIP for Disposals *
Improvements: 7 Improvements:
Not Depreciated Not Depreciated Not 5-200 10-200 15-100 5-150 7-16 2-52 6-150 Range of estimated useful life in years in life useful estimated of Range
Land: Not depreciated Not Land:
Consolidated book value at 30 June 2020 June 30 at value book Consolidated 2,331,102 73,857 214,209 372,129 1,351,722 33,078 1,489 5,103 21,783 136,858 120,874
Accumulated depreciation as at 30 June 2020 June 30 at as depreciation Accumulated 613,253 - 73,855 111,881 348,486 6,678 - 1,812 28,232 39,737 2,572
Internal transfers between classes between transfers Internal ------70 (70) - - - -
45,059 - - - 30,548 342 - - 767 13,402 - 10 Corporation Airport Gladstone to relating Impairment
(161,454) - - - (160,911) (54) - (489) - - - 24 Revaluation adjustment to the asset revaluation surplus revaluation asset the to adjustment Revaluation
(575) ------(575) - - 9 write-offs on Depreciation
(22,273) - (2,020) (1,394) (17,924) - - - (800) (135) - 9 disposals on Depreciation
Depreciation provided in period in provided Depreciation 43,333 - 3,797 5,481 28,377 704 - 403 2,975 2,123 (527)
------4(b) assets Contributed
Found assets first recognised first assets Found ------
Opening balance adjustment balance Opening 39 ------12 27 -
Opening balance as at 1 July 2019 July 1 at as balance Opening 709,124 - 72,078 107,794 468,396 5,616 70 1,898 25,853 24,320 3,099
Accumulated depreciation Accumulated
Closing gross value as at 30 June 2020 June 30 at as value gross Closing 2,944,355 73,857 288,064 484,010 1,700,208 39,756 1,489 6,915 50,015 176,595 123,446
Internal transfers between WIP and other classes other and WIP between transfers Internal - - (29,156) 2,843 3,421 20,112 2,066 (379) - 502 1,036 (445)
29 ------29 22 provisions landfill to due adjustment Revaluation
Revaluation adjustment to the asset revaluation surplus revaluation asset the to adjustment Revaluation 151,194 - - - 151,847 (9) 11 (655) - - - 24
Write-offs (671) (50) - - - - (3) - (618) - - 9
Disposals* (55,875) (643) (2,059) (2,672) (49,134) - - - (1,012) (335) (20) 9
Contributed assets Contributed 5,592 - 549 573 4,391 - 79 - - - - 4(b)
Additions during period during Additions 47,000 42,077 - 34 - - 5 540 4,259 85 -
Found assets first recognised first assets Found 264 - - - 253 - 11 - - - -
Opening balance adjustment balance Opening (286) - - - (286) - - 40 (40) - -
Opening gross value at 1 July 2019 July 1 at value gross Opening 2,797,108 61,629 286,731 482,654 1,573,025 37,699 1,765 6,990 46,924 175,809 123,882
Asset values Asset $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Recognition threshold Recognition Networked Networked Networked $10,000 > Networked $350,000 > $5,000 > $10,000 > $1 >
Basis of measurement of Basis
Cost Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Cost Value Fair Value Fair
Note
Transport Infrastructure Transport Structures Infrastructure
Plant and Equipment and Plant Buildings Land and Improvements and Land Cultural Assets Cultural Equipment & Plant Major Total Progress in Work Infrastructure Water Consolidated - 30 June 2020 June 30 - Consolidated
Road, Drainage & & Drainage Road, Park Furniture & Other Other & Furniture Park Sewerage Sewerage 16 Property, plant and equipment (Cont'd) equipment and plant Property, 16
2019/20 Annual Report
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
Notes to the Financial Statements For the year ended 30 June 2020 Notes to the Financial Statements For the year ended 30 June 2020 2019/20 AnnualReport 16 Property, plant and equipment (Cont'd)
Park Furniture & Other Road, Drainage & Sewerage Council - 30 June 2020 Land and Improvements Buildings Plant and Equipment Major Plant & Equipment Cultural Assets Water Infrastructure Work in Progress Total Structures Transport Infrastructure Infrastructure Note Basis of measurement Fair Value Fair Value Cost Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Cost Recognition threshold > $1 > $10,000 > $5,000 > $350,000 Networked > $10,000 Networked Networked Networked Asset values $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Opening gross value at 1 July 2019 116,527 147,582 43,797 6,990 1,765 36,872 1,507,587 482,654 286,731 61,346 2,691,851 Opening balance adjustment - - (40) 40 - - (286) - - - (286) Found assets first recognised - - - - 11 - 253 - - - 264 Additions during period - 85 4,211 540 5 - - 34 - 39,700 44,575 Contributed assets 4(b) - - - - 79 - 4,391 573 549 - 5,592 Disposals* 9 (20) (335) (1,012) - - - (49,134) (2,672) (2,059) (645) (55,877) Write-offs 9 - - (618) - (3) - - - - - (621) Revaluation adjustment to the asset revaluation surplus 24 - - - (655) 11 - 145,933 - - - 145,289 Revaluation adjustment due to landfill provisions 22 29 ------29 Assets transferred to inventory ------Internal transfers between WIP and other classes (445) 1,017 272 - (379) 2,066 20,112 3,421 2,843 (28,907) - Closing gross value as at 30 June 2020 116,091 148,349 46,610 6,915 1,489 38,938 1,628,856 484,010 288,064 71,494 2,830,816
Accumulated depreciation Opening balance as at 1 July 2019 3,100 17,595 23,837 1,898 70 5,359 458,628 107,794 72,078 - 690,359 Opening balance adjustment - 27 4 ------31 Found assets first recognised ------Contributed assets 4(b) ------Depreciation provided in period (527) 1,576 2,819 403 - 621 26,802 5,481 3,797 - 40,972 Depreciation on disposals 9 - (135) (800) - - - (17,924) (1,394) (2,020) - (22,273) Depreciation on write-offs 9 - - (575) ------(575) Internal transfers between WIP and other classes - - - - (70) 70 - - - - - Revaluation adjustment to the asset revaluation surplus 24 - - - (489) - - (173,417) - - - (173,906)
Accumulated depreciation as at 30 June 2020 2,573 19,063 25,285 1,812 - 6,050 294,089 111,881 73,855 - 534,608 Consolidated book value at 30 June 2020 113,518 129,286 21,325 5,103 1,489 32,888 1,334,767 372,129 214,209 71,494 2,296,208
Land: Not depreciated Range of estimated useful life in years 6-150 2-52 7-16 Not Depreciated 5-150 15-100 10-200 5-200 Not Depreciated Improvements: 7
* Disposals for WIP includes prior year projects expensed
Additions comprise: $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Renewals - 85 2,320 540 - - - - - 16,456 19,401 Other additions - - 1,891 - 5 - - 34 - 23,244 25,174 Total additions - 85 4,211 540 5 - - 34 - 39,700 44,575 Page 156
30
OUR FINANCES 31
Page 157
Total additions Total 52,135 47,542 - - - 14 24 - 4,488 67 -
Other additions Other 31,527 31,258 - - - 14 24 - 231 - -
Renewals 20,608 16,284 ------4,257 67 -
Additions comprise: Additions $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
* Disposals for WIP includes prior year projects expensed projects year prior includes WIP for Disposals *
35
Improvements: 7 Improvements:
Not Depreciated Not Excl. Public Artwork : : Artwork Public Excl. 5-200 10-200 15-100 5-150 7-16 2-52 6-150 Range of estimated useful life in years in life useful estimated of Range
Land: Not depreciated Not Land:
Not Depreciated Not
Consolidated book value at 30 June 2019 June 30 at value book Consolidated 2,087,985 61,629 214,653 374,860 1,104,629 32,083 1,695 5,092 21,071 151,489 120,783
Accumulated depreciation as at 30 June 2019 June 30 at as depreciation Accumulated 709,124 - 72,078 107,794 468,396 5,616 70 1,898 25,853 24,320 3,099
Internal transfers between classes between transfers Internal - - - - - 26 (26) - - 6 (6) -
22,552 - - - 22,300 - - - 252 - - - 24 surplus revaluation asset the to adjustment Revaluation
(163) ------(163) - - 9 write-offs on Depreciation
(9,222) - (2,821) (229) (3,857) (32) - (569) (1,714) - - 9 disposals on Depreciation
Depreciation provided in period in provided Depreciation 43,921 - 3,768 5,471 28,353 673 12 486 3,246 2,286 (374)
Contributed assets Contributed ------
------4(b) recognised first assets Found
Opening balance as at 1 July 2018 July 1 at as balance Opening 652,036 - 71,131 102,552 421,574 5,001 58 1,729 24,478 22,040 3,473
Accumulated depreciation Accumulated
Closing gross value as at 30 June 2019 June 30 at as value gross Closing 2,797,109 61,629 286,731 482,654 1,573,025 37,699 1,765 6,990 46,924 175,809 123,882
Internal transfers between WIP and other classes other and WIP between transfers Internal - - (29,443) 1,560 1,176 23,921 1,475 - - 123 1,169 19
Assets transferred to inventory to transferred Assets (2,336) (2,336) ------
(775) ------(775) 22 provisions landfill to due adjustment Revaluation
20,887 Revaluation adjustment to the asset revaluation surplus revaluation asset the to adjustment Revaluation - - - - 20,337 - 292 812 - - (554) 24
Write-offs (174) ------(174) - - 9
Disposals* (14,533) (17) (2,826) (425) (7,695) (302) - (726) (2,513) (29) - 9
Contributed assets Contributed 496 - - - 476 - 20 - - - - 4(b)
Additions during period during Additions 52,135 47,542 - - - 14 24 - 4,488 67 -
Found assets first recognised first assets Found 3 - - - - - 3 - - - -
Opening balance adjustment balance Opening 146 145 ------1 - -
Opening gross value at 1 July 2018 July 1 at value gross Opening 2,741,259 45,738 287,997 481,903 1,535,986 36,512 1,426 6,904 44,999 174,602 125,192
Asset values Asset $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Recognition threshold Recognition Networked Networked Networked $10,000 > Networked $350,000 > $5,000 > $10,000 > $1 >
Basis of measurement of Basis
Cost Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Cost Value Fair Value Fair
Note
Structures Infrastructure Infrastructure Transport
Consolidated - 30 June 2019 June 30 - Consolidated Land and Improvements and Land Work in Progress in Work Water Infrastructure Water Assets Cultural Equipment & Plant Major Equipment and Plant Buildings Total
Sewerage Sewerage & Drainage Road, Park Furniture & Other Other & Furniture Park 16 Property, plant and equipment (Cont'd) equipment and plant Property, 16
2019/20 Annual Report
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
Notes to the Financial Statements For the year ended 30 June 2020 Notes to the Financial Statements For the year ended 30 June 2020 2019/20 AnnualReport 16 Property, plant and equipment (Cont'd)
Park Furniture & Other Road, Drainage & Sewerage Council - 30 June 2019 Land and Improvements Buildings Plant and Equipment Major Plant & Equipment Cultural Assets Water Infrastructure Work in Progress Total Structures Transport Infrastructure Infrastructure Note Basis of measurement Fair Value Fair Value Cost Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Cost Recognition threshold > $1 > $10,000 > $5,000 > $350,000 Networked > $10,000 Networked Networked Networked Asset values $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Opening gross value at 1 July 2018 117,283 146,335 41,845 6,904 1,426 35,608 1,470,626 481,903 287,997 45,689 2,635,615 Opening balance adjustment ------142 142 Found assets first recognised - - - - 3 - - - - - 3 Additions during period - 67 4,461 - 24 14 - - - 47,227 51,793 Contributed assets 4(b) - - - - 20 - 476 - - - 496 Disposals* 9 - (29) (2,335) (726) - (302) (7,695) (425) (2,826) (17) (14,355) Write-offs 9 - - (174) ------(174) Revaluation adjustment to the asset revaluation surplus 24 - - - 812 292 - 20,337 - - - 21,441 Revaluation adjustment due to landfill provisions 22 (775) ------(775) Assets transferred to inventory ------(2,336) (2,336) Internal transfers between WIP and other classes 19 1,209 - - - 1,552 23,843 1,176 1,560 (29,359) - Closing gross value as at 30 June 2019 116,527 147,582 43,797 6,990 1,765 36,872 1,507,587 482,654 286,731 61,346 2,691,851
Accumulated depreciation Opening balance as at 1 July 2018 3,474 16,024 22,551 1,729 58 4,802 413,407 102,552 71,131 - 635,728 Found assets first recognised ------Contributed assets 4(b) ------Depreciation provided in period (374) 1,570 3,071 486 12 590 26,778 5,471 3,768 - 41,372 Depreciation on disposals 9 - - (1,622) (569) - (32) (3,857) (229) (2,821) - (9,130) Depreciation on write-offs 9 - - (163) ------(163) Revaluation adjustment to the asset revaluation surplus 24 - - - 252 - - 22,300 - - - 22,552
Accumulated depreciation as at 30 June 2019 3,100 17,595 23,837 1,898 70 5,359 458,628 107,794 72,078 - 690,359 Consolidated book value at 30 June 2019 113,427 129,988 19,960 5,092 1,695 31,512 1,048,959 374,860 214,653 61,346 2,001,492 Not Depreciated Land: Not depreciated Range of estimated useful life in years 6-150 2-52 7-16 Excl. Public Artwork : 5-150 15-100 10-200 5-200 Not Depreciated Improvements: 7 35 * Disposals for WIP includes prior year projects expensed
Additions comprise: $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Renewals - 67 4,257 ------16,284 20,608 Other additions - - 204 - 24 14 - - - 30,943 31,185 Total additions - 67 4,461 - 24 14 - - - 47,227 51,793 Page 158
32 OUR FINANCES 33 of of 2. the the and final size. Page 159 2020. at range under valued level Council a desktop the prices valuation in sell a use are for June to estimates in this property available, estimated with 30 sales as impact account is as case cost assets into it included the into the is may less (such such restricted is effective approach These from is inputs where and asset taking value Management This inputs The the data, 3. and which fair attributes assets. derived valuation Asset other and key significant lives level 2) judgement in valuers. and been in identical purposes most desktop observable, observable useful has (level amount or a of are The Valuers included with special value registered use differences professional is similar different APV asset for carrying size. evidence for the fair for its an with asset of used qualified valuer, market extensive the value parts assets, property market adjusted Management land maximise lower fair as as from are data, the to active require Asset at which building well such no independent significant and as professionally is market by proximity required into supported
title Council condition) there be using measured attributes close techniques Valuers for inputs in reviewed was key buildings asset could observable which freehold APV in in was sites the on for market approach and valuation period a significant metres held land valuer, is cost all based nature using If land structures the differences not there reporting square is for consumption on the value componentising other comparable specialist using of independent to Where by a estimates. of determined inputs and by of based during used are adjusting valued 2020. are pattern prices parks sale building specific rates 2019/20 Annual Report were after for life, reviewed were June assets significant which unit Sales each entity 30 the the held for inputs of the were buildings, useful of of as rules. of assets, use cost properties buildings While effective values more the value, values value valuation zoning or 2 fair
classified fair
fair
factors. one
16 Property, plant and equipment (cont'd) infrastructure using a combination of observable and unobservable inputs. residual comparable approach were price per square metre. The most significant inputs into this valuation approach are price per square metre. Level minimise If Specialised The Buildings, parks and other structures (level 3) Land time of reclassification. The fair value of the land is determined using the sales comparison approach outlined above. An assessment of the valuation movement has deemed been immaterial and therefore, no increment/decrement has been recorded for 30 June 2020. Land and improvements (level 2) Specific valuation techniques used to value Council assets comprise: Land (ii) Valuation techniques used to derive fair values for level 2 and level 3 valuations Council's policy is to recognise transfers in and out of the fair value hierarchy levels as at the end of the reporting period. There were no transfers between levels 1 and 2 during the year, nor between levels 2 and 3. Council has assets and liabilities which are not measured at fair value, but for which fair values are disclosed in other notes. The Council does not measure liabilities any at fair value on a recurring basis. (i) Recognised fair value measurements replacement determination of fair value. Theseassets are classified using level 3 valuation inputs. valuation of current
For the year ended 30 June 2020 30 June ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended June 30 2020 Notes to the Financial Statements characteristics as well as holistic factors such as functionality, capability, utilisation andobsolescence. utilisation capability, functionality, as such factors holistic as well as characteristics lives. and Transport Standards 2005. 2005. Standards and Transport Roads Council's with consistent standard adepth to constructed are pavements replacement that considered Council separately. roads places) and streets (access order andlow andabove) (collector order high considered has assets type road of stereotyping Council's year financial This details. carriageway same the with standards design pavement current to and surfaces pavement road of replacement onthe based methodology a utilised has Council widths, carriageway similar in result andrenewals roads onexisting occur works Council's of majority the Given cost replacement Current Roads cost replacement current of calculation - (RDTI) infrastructure andtransport drainage Road, below. categories asset individual under described as class asset the to relevant methods using determined was CRC The assumptions. and"Brownfield" "Greenfield" of onamixture based were component asset or anasset of CRC the determine to applied andquantities andmaterials) (labour rates unit The horizon. planning Council's within output service of level required the achieve to assets equivalent modern of set onanefficient based benefits economic existing the replacing of cost the reflected valuation resulting the that so made was anadjustment redundant were or capacity, hadexcess designed, over were assets existing Where business. of course normal the in beobtained currently could asset the of benefits economic future gross the which at cost lowest the to byreference measured was CRC asset. the of potential service expired the of account take to amount this adjusted andthen asset the of potential service full the replacing of cost gross the determined first Council asset. the of benefits economic future expired or consumed already the reflect to cost such of basis onthe calculated depreciation accumulated less (CRC) cost replacement current asset’s the comprises valuation This cost. replacement current down written using valued were assets All 2020. 30June effective Ltd Pty Services byShepherd comprehensively valued fair were infrastructure andtransport drainage Roads, 2016. 30June effective Management andAsset Valuers byAPV valued comprehensively were assets infrastructure andsewerage Water 3) (level assets Infrastructure costs. transaction include not does but market, to plant the transport to costs transport account into takes value fair The hours. machine and condition, component mechanical major usage, of type condition, site included conditions the assessing in used assumptions key The equipment. moving earth specialised for catalogues price recent most the from costs replacement comparable using evidence and market-based audit onacondition bymanagement determined was This 2020. 30June at as value market current at measured is plant major of value fair The 2) (level andequipment plant Major 2020. 30June for beenrecorded has movement norevaluation andtherefore, immaterial beendeemed has buildings for movement valuation the of assessment An In (cont'd) 3) (level structures andother parks Buildings, (cont'd) 3valuations level 2and level for values fair derive to used techniques Valuation (ii) is 16 Property, plant and equipment (cont'd) equipment and plant Property, 16 determining considered Allowance to the has be level been no of longer 2019/20 AnnualReport made accumulated available for the typical depreciation for use asset and life the the cycle asset condition and has renewal
been of the disaggregated treatments asset. Condition of into each significant component was assessed components and residual taking which into value account exhibit at the different time both the physical useful asset Page 160 34 OUR FINANCES 35 Page 161
2019/20 Annual Report
16 Property, plant and equipment (cont'd) Consistent with roads, Council assumes that environmental factors such as soil type, climate and topography areconsistent across each segment and that a segment is designed and constructed to the same standard and uses a consistent amount of labour and materials. Construction estimates were determined on a similar basis to sewerage. Drainage infrastructure Current replacement cost financial year. The remaining useful lives of the bridge asset componentswere reviewed in the financial year ended 30 June 2020. These metrics were utilised, along with other information, to determine the accumulated consumption of the component's service potential. Through this assessment the remaining useful lives were determined and aligned with actual condition. For the comprehensive revaluation review undertaken, the amount of service potential consumed was determined based on the useful lives of components and adjusted to take account for capital expenditure in the Accumulated depreciation Current replacement cost CRC was calculated by reference to asset linear and area specifications, estimated labour and material inputs, service costs and overhead allocations. This included consideration of material type used for construction, the deck area and size. Bridges to determine the consumption of the component's service potential. For the comprehensive revaluation review undertaken, the amount of service potential consumed was determined based on the useful lives of components and adjusted to take account for capital expenditure in the financial year. In determining the level of accumulated depreciation, roads were disaggregated into significant components which exhibited different useful lives. As part of the comprehensive revaluation undertaken for the financial year ended 30 June 2020, a condition assessment was undertaken on sealed road assets and a sample of unsealed road assets including a number of metrics. These metrics were utilised, along with other information, Accumulated depreciation 'Greenfield site'. These inputs include the need to dispose existing infrastructure, work in tight conditions, ensure access requirements are met and meet additional safety and traffic control requirements. The reconstruction approach produces a valuation that better represents the current replacement cost of Council's road assets. Current replacement cost (cont'd) The reconstruction approach considers additional resources associated with constructing within constrained 'Brownfield' sites when compared to a Road, drainage and transport infrastructure (RDTI) - calculation of current replacement cost Roads (ii) Valuation techniques used to derive fair values for level 2 and level 3 valuations (cont'd)
For the year ended 30 June 2020 30 June ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended June 30 2020 Notes to the Financial Statements Policies, Changes in Accounting Estimates andErrors. Estimates Accounting in Changes Policies, 108Accounting AASB under required as error period aprior as disclosed or figures comparative against been made has noadjustment hence balances, andequipment plant andproperty, capital Council against immaterial considered is which $2500) - (2019 $264,184 of adjustment net a in resulted This account. to andbrought identified were recognised previously not assets additional improvements, data asset ongoing of part As recognised first assets Found (iii) 2020. 30June for beenrecorded has increment/decrement no andtherefore, immaterial beendeemed has movement valuation The 2020. 30June the at as performed was assessment desktop A year. financial the in expenditure capital for account take to andadjusted components of lives useful on the based determined was year financial the during consumed potential service of amount the undertaken, review revaluation comprehensive the For assets. andsampled system management asset Council's within contained oninformation calculated was score consumption the assets), andactive assets passive for (i.e. conducted not were inspections site Where benefit. economic future the of consumption of andpattern life useful value, residual as such assumptions related depreciation key of determination andthe obsolescence andcommercial legal condition, asset included potential service remaining the of estimate The value. fair the lower the rating, condition the higher The potential. service remaining the estimating in aninput as used was which 0and5, between of score aconsumption allocated were assets the conducted, were inspections site Where life. useful remaining determine to anassessment or inspection asite to subject either were assets depreciation, accumulated determining in 2016, ended30June year financial the in undertaken revaluation comprehensive the of part As depreciation Accumulated sites. Greenfield' or and'Brownfield' labour width, depth, material, length, location, including factors of arange account into and taking lives useful different with parts significant into assets the bycomponentising asset each of cost replacement the estimated approach valuation The cost replacement Current andSewerage Water cost replacement current of –calculation infrastructure andsewerage Water year. financial the in expenditure capital for account take to andadjusted components of lives useful onthe based determined was consumed potential service of amount the undertaken, review revaluation comprehensive the For assets. other all for assets sampled the with proportion bein to assumed were life useful andremaining potential service The assessments. hadcondition which assets of onasample determined were lives useful remaining and potential service expired of estimates 2020, ended30June year financial the for undertaken revaluation comprehensive the of part As lives. useful different exhibited which components significant into disaggregated were assets drainage depreciation, accumulated of level the determining In (cont'd) depreciation Accumulated infrastructure Drainage (cont'd) cost replacement current of calculation - infrastructure andtransport drainage Road, (cont'd) 3valuations level 2and level for values fair derive to used techniques Valuation (ii) 16 Property, plant and equipment (cont'd) equipment and plant Property, 16 2019/20 AnnualReport
Page 162 36 OUR FINANCES 37 Page 163 1,514 1,672 8,839 12,025 $'000 30 June30 2019 Council 689 915 158 2,297 1,450 2,365 1,814 3,559 2,365 8,565 4,248 2,817 2,659 12,676 $'000 $'000 Council 30 June30 2020 30 June30 2020 1,656 1,672 8,839 12,167 $'000 30 June30 2019 689 915 158 Consolidated 2,484 1,450 2,365 1,809 3,559 2,365 8,565 4,248 3,064 3,222 12,858
$'000 $'000 30 June30 2020 30 June30 2020 Consolidated 2019/20 Annual Report
Contractliabilities Significantchanges in contract balances Contract assets Contract
17 Otherassets
18 Contract balances Prepayments Non-current contract assets contract Non-current GSTrecoverable Revenue recognised that was included in the contract liability balance at the beginning of the year the of beginning the at balance liability contract the in included was that Revenuerecognised assets controlled Council construct Fundsto (c) and receipt on recognised revenue the was Previously 1058. AASB and 15 AASB of have adoption on arisen liabilities and Theassets contract position. financial of statement the on effect no thereforetherewas Deposits received advance in providedservices of Deposits It is expected that all contract liabilities will be met within 12 months. 12 metwithin be will liabilities contract all that expected is It Funds received upfront to construct Council controlled controlled Council Fundsreceived construct to upfront assets received advance in providedservices of (e.g. Deposits grants) in performanceobligations (b) The non-current portion of contract assets relates to the Gladstone City Plaza forecourt upgrade. Revenue for this project will be receivedbe during will project Revenueupgrade. forecourt forthis Plaza City Gladstone the to relates Theassets contract of non-current portion agreement. charge special per the as 2022 June 30 ended then year the (a) assets contract Current Council presents the funds which exceed revenue recognised as a contract liability. liability. revenuecontract a as recognised exceed which funds the presents Council Where the amounts billed to customers are based on the achievement of various milestones established in the contract, the amounts recognised recognised amounts the contract, the in Whereestablished achievement variousthe on of are based milestones customers to billed amounts the customer. the by or certified to billed amounts the with coincide revenue as given a necessarily not do in period or consideration pays customer beforethe orcustomer good service the promised to a transferring Whenby satisfied is performancea obligation are consideration amountof that to rights the unless asset, contract a as progress in work the presents Council due, is beforepayment receivable. a recognises Council case which in unconditional, When orcustomer, good a service the to transferring provider received fund / from Council customer is a to prior consideration of amountan Current Waterlevied yet not charges
For the ended year 30 June 2020 Notesthe to Financial Statements
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Notes to Statements the Financial Balance at 30 June 2020 30June at Balance charge Depreciation Adoption AASB of 1July 16at 2019 Consolidated assets use Right of 5years with fixed is payments. term lease The services. information passenger electronic well as as management with airline andpassenger booking associated andprinting equipment computer leases Corporation Airport Gladstone The Equipment within agreement. the determined rate indexed year are each payments by lease extend. to 5years The with options is the term leases The tower. onacommunication space allocated leases Council Infrastructure indexing year within each agreement. the by landthe andsome determined rate the of value uponthe based payments 5and75years with some andthe between range terms lease statements, in these recognised leases the For accounting. lease to subject not therefore andare value significantly are payments lease the below market or low value, considered are underlying the of assets number A infrastructure. andsewerage positioning the water of well as as centres community showgrounds as such purposes land of for parcels various leases Council Land leases of andconditions Terms recognition. liability lease associated onthe based initial at is which cost at leases concessionary the from arising asset use of right the measure to elected has Council leases Concessionary / value significantly at below market Leases term. lease the over basis onastraight-line anexpense as leases with these associated payments the recognises Council assets. value low- of andleases equal 12months) to or than less of with aterm leases (i.e. leases short-term both for accounting lease to applied exceptions the has Council accounting lease to Exceptions re-measurement. the reflect to adjusted is asset right-of-use the liability lease the re-measured, is Where CPI). (e.g. based are payments index lease the or uponwhich term lease the of in estimate change or modification, alease is there whether liability lease The method. rate re-measured is interest effective the using cost initial to liability amortised lease at the Subsequent recognition, measured is used. is security with similar term asimilar for rate borrowing incremental bereadily Council’s then cannot this determined where however in lease, the implicit rate the is rate discount The lease. the of liability lease commencement the at The payments lease remaining the of initially value is present the at recognised policy. accounting asset of impairment with the in accordance impairment for andassessed line basis onastraight- term lease the over depreciated is asset right-of-use The received. any less incentives lease andrestoration, removal of cost estimated payments, liability, lease the lease prepaid initial oninitial costs, comprises: direct recognition cost where model cost the using measured is asset right-of-use The component. asingle as payments lease for accounted andhas assets of any for class components andnon-lease lease separate not liability does andlease Council lease. the of oninception asset use of recognised aright is alease, contains anagreement that assesses Council Where leases. and short-term assets low-value of leases for applied accounting lease to exception the has Council land andinfrastructure. over in place leases has Council asalessee Council 19 Leases 2019/20 AnnualReport
$'000 Land 1,234 1,189 (45) Infrastructure $'000 (27) 239 212 Equipment $'000 (49) 143 94 Total $'000 1,616 1,495 Page 164 (121) 38 OUR FINANCES 39 Page 165 1,528 $'000 position financial Total per per Total statement of of statement 2,198 Total $'000 1 39 24 121 185 170 1,656 $'000 $'000 > 5 years 410 $'000 1–5 years
132 $'000 < 1 year 2019/20 Annual Report
19 Leases (cont'd) 19 Leases rewards to ownership incidental of the asset have been transferred to the lessee. If the risks and rewards have been transferred then the lease is classified as a finance lease, otherwise is it an operating lease. When Council is a lessor, the lease is classified as either an operating or finance lease at inception date, of the based risks all on whether substantially and Council does not believe that any of the leases in place are individually material. of the leasesCouncil does place in are not believe that any individually Council acts as lessor and subleases the Toolooa Street Neighbourhood Centre. The lease amount per the lease is agreement. reviewed annually Council is granted use Government of State reserve for land a cost market below significantly value. This use is of land not included as a right of use asset, as it the scopedoes within 16. not fall of AASB Council as a lessor specified community services which Council must provide, these services the leases. in are detailed Council acts as lessor Brown Oval and subleases for market below an amount the Marly significantly value. The leases are between and require 20 and 74 years payments between $0 and $1 per annum. The use of the right-to-use asset is restricted the lessors by to Council has market below leases at significantly value for that is land used for: sports • Multipurpose and events • Carparking • Parklands • Community markets • Community programs Interest on lease liabilities Depreciation of right to use assets Expenses to relating short-term leases Expenses to relating low-value assets Consolidated The following amountsThe following have been recognised the statement in of comprehensive income for leases where Council is the lessee Consolidated The shows based below table on contractual of the lease liabilities analysis the maturity cashflows and therefore the amounts notthe be same will as the the statement in recognised position. of financial lease liability Council as a lessee (cont'd) Lease liabilities Total cash outflows for leases Leases market below at significantly value - concessionary / peppercorn leases Amounts the Statement included in of Comprehensive Income related to leases
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financialthe Statements to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Notes to Statements the Financial Later than five years five than Later 4and5 yearsBetween 3and4 yearsBetween 2and3 yearsBetween 1and2 yearsBetween Not later than oneyear than later Not Prepaid rates andaccruals Creditors Current generally andare on30day settled unsecured terms. owing are Amounts owed. amount the at received, are services or goods when recognised are Creditors property. investment develop or construct obligations purchase, to any have not does contractual Council disposal. of andproceeds income of remittance property or realisability onthe investment of norestrictions are There follows: as are receipts lease guaranteed minimum The applicable leases. the to income as recognised rents contingent or receivable payments lease minimum uncollectible for allowance accumulated benefit the to Council, of accruing values residual unguaranteed income, nil finance is unearned There Contract obligations for future repairs and maintenance incom rental property did that generate not from expenses operating Direct income rental property generated that from expenses operating Direct Other property revenue Total revenue from investment properties onanindexdependent rate or not payments lease variable relating to property income Investment onanindexdependent rate) or payments lease variable (excluding property income Investment term. lease the over line basis straight onaperiodic income as property recognised is andother investment from financial of Rent position. property in statements the investment the to relate leases operating Council's any have not leases. does finance Council with Customers. Contracts with AASB from 15Revenue in accordance for accounted are components non-lease the then components andnon-lease lease contains lease the If (cont'd) asalessor Council Total operating expenses relating to investment properties investment to relating expenses operating Total 20 Payables 19 Leases (cont'd) 2019/20 AnnualReport
30 June 2020 30 June 30 June 2020 30 June 2020 30 June $'000 $'000 $'000 25,174 16,323 3,131 8,851 Consolidated Consolidated Consolidated 924 170 184 427 508 918 967 539 236 172 113 426 64 6 30 June 2019 30 June 30 June 2019 30 June 2019 30 June $'000 $'000 $'000 13,344 13,344 4,255 1,094 1,123 185 427 508 918 616 283 145 138 566 - (3) 15 50 30 June 2020 30 June 30 June 2020 30 June 2020 30 June $'000 $'000 $'000 24,564 15,713 1,838 8,851 848 114 111 108 173 484 539 236 172 113 426 64 6 2 Council Council Council 30 June 2019 30 June 30 June 2019 30 June 2019 30 June $'000 $'000 $'000 12,897 12,897 2,377 Page 166 962 111 108 173 484 539 616 283 145 138 566 - 15 50 3 40 OUR FINANCES 41 Page 167 net the 393 232 (607) is 4,259 9,607 5,027 4,652 10,000 the (8,797) it 119,510 109,510 105,251 123,655 114,858 As $'000 30 June30 2019 date. represent that at Council it 54 382 (605) 3,719 4,652 4,101 99,145 95,426 10,468 10,086 repayments (9,346) 109,613 114,858 105,512 repaid $'000 30 June30 2020 Principal Council if debt accounts. 393 232 the (607) 4,259 9,607 5,027 4,652 10,000 (8,797) of 119,510 109,510 105,251 123,655 114,858 these $'000 in value 30 June30 2019 the made be to 54 382 Consolidated
(605) 3,719 4,652 4,101 represents 99,145 95,426 10,468 10,086 (9,346) 109,613 114,858 105,512 required $'000 This is 30 June30 2020 provision no $131,355,375. was term, its date for debt reporting the 2019/20 Annual Report the at hold to value Council market of
loan
21Borrowings Queensland Treasury Queensland Corporation Noassets have as pledged been Council security by for liabilities, however any loansall the Queensland are guaranteed by Government. Totalborrowings Loans- Interest Free - DLGRMA Non-current Loans- Queensland Treasury Corporation Current Loans- Queensland Treasury Corporation Loans- Interest Free - DLGRMA Principalrepayments Closingbalance atas June30 2020 Department of Local Government, Racing and Multicultural Affairs Multicultural and Racing Government, Departmentof Local Openingbalance as 2019 at July 1 Fairvalue adjustment intention before payments interest administrationand costs. Closingbalance atas June30 2020 The Openingbalance as 2019 at July 1 Principalrepayments theyears.nine next Council's current borrow for is policy to only capital projects forand terma longerno than the expected life of the asset. Councilalso the aims QTC's with to comply borrowing guidelines ensureand that sustainability indicators acceptable remain within levels at all times. Principalinterestand arrears.in and repayments are quarterly made Inaccordance the Local with Government Regulation Council2012 adopts that debtsetsannual an policy out Council's borrowingsplanned for Therehave defaults no been or breaches of the agreements loan during the period. Government,Racing Multiculturaland Affairs (DLGRMA) are recognised at fair value. Allborrowings are $AUDin amountsdenominated interest with expensed as it accrues. No interest has capitalisedbeen during the current or comparativereporting period. Expected final dates repayment varyfrom September15 to2020 December 15 2032. Borrowingsrecognised are initially at fair value directly attributable plus transaction any costs. Subsequent to initial recognition, borrowings from theQueensland Treasury Corporation (QTC) are measured at amortised cost interestand free borrowings from the Department of Local
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended theFor year 30 June 2020 to the FinancialNotes Statements passing of time (the unwinding of the discount) are treated as a finance cost. a finance as are treated discount) the unwinding of (the time of passing the from resulting provision the to Changes any). (if decreases future of anexpense out andrecovered as are treated provision the in increases surplus, revaluation noavailable is there If land. for surplus revaluation asset the from or deducted are addedto time of passing the from arising not provision the in Changes dump. refuse the of life useful expected over the and amortised land the of cost the in included therefore, is, restoration for provision The assets. and improvement land as andare classified land controlled on Council are situated dumps Refuse time. the at available andcircumstances facts onthe based and updated annually reviewed least at is sites dump for recognised provision The beincurred. will that costs the is provision the estimating in uncertainty significant most the liability, the of nature long-term the of Because provided. currently amounts from expenditure differing actual future in result may uncertainties These estimates. cost and engineering technologies available dates, closure site legislation, environmental of application as such assumptions requires provision this of calculation The sites. onthese andleaching residues historical of monitoring and decontamination sites, dump the of closure with the associated costs future anticipated the of value present the represents provision The restoration. the of date anticipated the to corresponding date with a maturity securities guaranteed Government Commonwealth to attaching rates interest the using values day current to discounted work required, the of cost expected the at measured is provision The facilities. these of use of cessation on the a cost such incur to or required, be liable, will Council that probable where is it dumps refuse of respect in restoration of cost the for made is provision A Landfill remediation non-current. as classified is it Otherwise liability. a current as classified is leave service long months beyond 12 liability this defer to right have anunconditional not does andCouncil service of length prerequisite the have met employees Where value. present their to outflows cash future estimated the discount to are used date reporting the at securities guaranteed Government Commonwealth to attaching rates interest The value. present to discounted is result andthe date, earned to benefit the of proportion the allow for to made are then Adjustments liability. the meet to required being Council in would which result employment associated other or employment Council's in remaining employee the of probability the for are adjusted estimates The on-costs. employee related and includes rates those in increases future and projected pay rates current using calculated is liability the of value The date. reporting the up to by employees provided services of respect in bemade to outflows cash future estimated the of value present the represents leave service long for provision The Leave Long Service beyond 12months. liabilities these defer to right unconditional have an not does Council as liabilities current as are classified entitlements andservice lieu in off time RDO, accrued leave, sick leave, Annual Council. within employment from upondeparture payment entitlement aservice to are entitled employees Council City Gladstone former Certain upontermination. payable are not these as balances leave sick the payout to required not is Council options, payout the from Apart 2008. 10May 8 September 2006 to from accrued leave onsick payout a 25% to are entitled employees Council Shire Calliope former Some 2019. 17January onthe adopted Agreement Bargaining Enterprise Council Regional Gladstone with the accordance in accrued balances leave onsick pay 16% to an obligation has Council apayable. 20 as Note in reported expense andis anaccrued represents liability The date. that upto services employees' of respect in pay rates current as date reporting the at unpaid amount the as andmeasured recognised andwages is salaries for liability A values. present to andare discounted on-costs, employee and related wage levels and salary future projected on are calculated 12 months within be wholly settled to expected not Amoun 22 Provisions 22 2019/20 AnnualReport
Page 168 42 OUR FINANCES 43 Page 169 35 196 246 437 352 (971) 2,948 2,208 2,574 2,574 4,698 1,303 7,036 5,689 2,208 7,897 14,933 $'000 $'000 $'000 30 June 2019 30 June 2019 30 June 2019 Council Council Council 25 - - - - 129 194 558 355 (100) 2,208 2,262 5,616 1,136 7,859 6,348 2,262 8,610 16,469 $'000 $'000 $'000 30 June 2020 30 June 2020 30 June 2020 35 196 254 437 352 (971) 2,948 2,208 2,574 2,574 4,783 1,402 7,228 5,707 2,208 7,915 15,143 $'000 $'000 $'000 30 June 2019 30 June 2019 30 June 2019 25 - - - - 129 203 559 355 Consolidated Consolidated Consolidated
(100) 2,208 2,262 5,731 1,234 8,082 6,363 2,262 8,625 16,707 $'000 $'000 $'000 30 June 2020 30 June 2020 30 June 2020 2019/20 Annual Report
23 Other liabilities Other 23 22Provisions (cont'd) Increase/ decrease in provisionto due change in year will be paidyear in four quarterly instalments, the with first due in July 2020. Therefore,no liability has been recognised atJune 30 2020. Council is liable to the State Government forpayment of the Wastemost on Levy forms of commercial and household waste delivered to its disposal sites, The Stateis required tomake annual an payment to Council thatessentially refunds Council forthe portionof the that Levy relates to households. Council funds the portion of thethat Levy relates to commercialwaste through charges to commercial users of disposal sites. In June 2019, the State Government made an advancepayment to Councilfor the endingyear 30 June 2020. The refundin relation to the 2020-21 This is the present value of the estimated costof restoring therefuse disposalsite to a useable state at theend of itsuseful life. The projected cost is$2,016,000 $1,768,000 with expected to be incurred in 2021. The remaining costs willincurred be the 30 years over for next monitoring works. projectedcosts Closing balance 30 Juneat as Increase in provision finance - cost discount rate Landfill remediation Landfill Opening balance 1 July as at The impacts of COVID-19 resulted in an increase in long serviceleave annualand leave balances.The amount of leave taken staff by reduced significantly since thebeginning of the COVID-19 pandemic,due to travel restrictions within Queensland, interstateoverseas. and Increase/ decrease in provisionto due change in Movement in non-employee benefit provisions benefit Movementin non-employee Current Waste refund levy received in advance Current Annualleave Sick leave Accruedtimeand RDO offin lieu Service entitlement Long service leave Non-current Long service leave Landfill remediation Total provisions Total
For the year ended 30 June 2020 June 30 year Forthe ended Notes to the Financial Statements Notes Financial the to
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended theFor year 30 June 2020 to the FinancialNotes Statements ($550,649,582 2018/2019). The movement in reserves at an asset class level can be found in Note 16. Note in befound can level class an asset at reserves in movement The 2018/2019). ($550,649,582 Consolidated for and$819,003,747 2018/2019) ($563,806,142 Council for $882,999,976 is surplus revaluation Asset the of balance closing The surplus. retained to transferred andnot surplus revaluation asset the in retained is asset that of respect in surplus in reported amount the of, disposed is anasset When Income. Comprehensive of Statements anexpense the in as treated is excess Any class. that of respect in surplus revaluation asset the in remaining amount the against first offset is decrease that uponrevaluation, decreased is assets of a class Where assets. of aclass within are offset uponrevaluation and decreases Increases surplus. revaluation asset the in are accumulated recognition initial their since assets non-current of classes of value carrying the in changes incremental Net assets. those of use the from result donot that andequipment plant property, of value in changes to relating adjustments comprises surplus revaluation asset The 24 Asset revaluation surplus 2019/20 AnnualReport
Page 170 44 OUR FINANCES 45 Page 171 797 716 456 476 1,123 1,321 1,417 9,517 1,339 6,592 2,429 3,434 26,052 22,665 24,905 12,242 22,320 20,274 20,121 94,047 84,149 $'000 $'000 Closing Closing balance balance (5) ------(198) (180) (147) (420) (476) (273) (5,469) (2,000) (2,856) (2,000) (6,253) (4,526) (9,802) (15,001) $'000 $'000 funds funds funds funds expended expended Transfersout - Transfersout - 86 - - 556 258 381 153 260 497 456 476 6,616 2,345 4,390 2,725 1,228 2,413 9,411 2,849 1,709 24,899 11,910 $'000 $'000 earnings earnings Transfersin Transfersin fromretained fromretained - - 765 716 219 476 273
1,321 9,517 1,339 7,104 1,105 3,434 6,251 24,905 22,320 23,371 23,092 20,121 19,861 84,149 82,041 $'000 $'000 balance balance Opening Opening 2019/20 Annual Report
Council - 30 June 2019 June 30 - Council Council - 30 June 2020 June 30 - Council 25 Reserves 25 Futurecapital works reserve Emergencyservices reserve Emergencyservices reserve Summary of reserves held for held funding future recurrent expenditure: of reserves Summary Reserves held for expenditure: held funding future capital Reserves Summary of reserves held for held funding future recurrent expenditure: of reserves Summary Reserves held for expenditure: held funding future capital Reserves Movementthein reserves has summarisedbeen below: an equivalentan isamount transferred out of the relevant reserve to retained surplus. TheGladstone Airport Corporation reserve does not any maintain balances, therefore the information presented relates to Council only Fundsare transferred to reserves budgettheas upon and receipt determined by of infrastructure charges. In areas revenue where and expenditureare cyclical, surplus funds also transferredbe may to reserve. When funds are from expended reserves for approvedan purpose, Thereserves represent funds that are accumulated Council within to anticipatedmeet future needs. In each case the relatesamount to a perceivedfuture requirement which is The not currently liability. a amounts reported at balance date correspond to the ofamount cash (reportedcash within cashand equivalents) set aside for future not definedbe use which at themay reporting date. Allreserves established were via Council resolution March 15 on excluding2008 the gravel pit rehabilitation reserve which was established on 2019. July 1 Plantasset replacement reserve Futurecapital works reserve Regionalwaste reserve management Plantasset replacement reserve Parksconstrained works reserve Roadsconstrained works reserve Regionalwaste reserve management Parksconstrained works reserve Roadsconstrained works reserve Waterconstrained works reserve Sewerageconstrained works reserve Waterconstrained works reserve Gravelpit rehabilitation reserve Sewerageconstrained works reserve Recurrentgrant funding reserve Recurrentgrant funding reserve
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 Notes to the Financial Statements Waste Assets Waste Assets Sewerage obligation under contract for the Permit G37713.1 - Agnes Water Desalination Plant. The guarantee expires on 30 September 2028. on 30 September expires guarantee The Plant. Desalination Water Agnes - G37713.1 Permit the for contract under obligation an as $274,353 at Authority valued Park Marine Reef Barrier Great to guarantee a bank provided has Council Regional Gladstone The 29 February 2028. in expires guarantee The Council. Regional by being utilised Gladstone SP121498] 8 ON LOT B: LEASE AND SP129336 40 ON LOT [LEASE: land of two blocks a bond over as $15,000 at valued Ltd Rail Queensland to guarantee a bank provided has Council Regional Gladstone The Guarantees Bank $1,573,800. is guarantee (indemnity bank the maximumto amount) exposure Council's arise. circumstances above the authority should may guarantee the on any compensation of call part workers Government's Queensland Only the liabilities. outstanding cover to available funds insufficient was and there be cancelled licence insurance self the should remain may which bad debts cover to guarantee an indemnity a bank provided towards has Council scheme this Under Workcare. Government Local scheme, self-insurance compensation workers' government local Queensland the of a member is Council Regional Gladstone The Workcare Government Local any anticipated liability not is and it will arise. surplus an accumulated reported statements financial 2020 the 30 June at As arises. any to year a deficit that in respect pool contributions total the to is contribution their as proportion same in the by pool members individual the will be met deficit any that accumulated provide deed and rules trust the due, they as fall debts meet its unable to pool being wound is it up or the of event the In Queensland. LGM pool, mutual liability self-insurance government local the of a member is Council Regional Gladstone The Mutual Government Local follows: as are liabilities contingent of maximum amounts of and estimates Details period. construction delaysthe during no unforeseen are there by 2021 provided completion June practical for scheduled is project This Precinct. Communities Street Philip the towards committed $12,536,525.52 include projects Strategic Assets Environment & Parks Purchases Equipment & Fleet expenditure capital Airport Capital commitments at balance date recognised not but in the financial are as report follows: Water Assets Water Strategic Projects Strategic Assets Road Property Assets Property External Project Management & Design Management & Project External 27 Contingent liabilities expenditure for Commitments 26 2019/20 AnnualReport 30 June 2020 30 June $'000 12,536 30,179 6,374 5,107 2,993 Consolidated 497 772 405 720 723
52 30 June 2019 30 June $'000 12,344 1,340 6,068 3,019 525 265 398 707 15 6 1 30 June 2020 30 June $'000 12,536 29,774 6,374 5,107 2,993 720 497 772 723 - 52 Council 30 June 2019 30 June $'000 12,338 6,068 1,340 3,019 525 398 265 707 - 15 1 Page 172 46 OUR FINANCES 47 Page 173 466 266 3,689 5,650 3,223 5,384 $'000 $'000 30 June 2019 30 June 2019 Council Council 486 220 3,785 6,400 3,299 6,180 $'000 $'000 30 June 2020 30 June 2020 466 266 3,689 5,799 3,223 5,533 $'000 $'000 , a separate trust bank account and separate accounting 30 June 2019 30 June 2019 486 220 Consolidated Consolidated 3,785 6,558 3,299 6,338
$'000 $'000 30 June 2020 30 June 2020 5 Local Government 2012 Regulation Note and 2019/20 Annual Report Local Government Act 2009
29 funds Trust 28 Superannuation Security deposits Security Trust funds held for outside parties outside for held funds Trust collected ofMonies or other on behalf held entities yet out to orto be paid of those on behalf entities The monies are disclosed for information purposes only. records are maintained for funds of outside on behalf parties. held Funds the trust in held account include those funds from the sale for of land arrears in rates, deposits for the contracted sale security deposits of land, to guarantee lodged performance and unclaimed monies. Council performs a only custodian respect role in of these monies and because the monies cannot be used for Council purposes, are not considered they revenue nor brought to account statements the financial in since Council has no control over the assets. In accordance the with employees Defined BenefitsDefined Fund Other superannuation contributions for employees Total superannuation Council for contributions by paid Superannuation contributions made to the Regional • Investment risk - The risk that the scheme's investment returns be lower than assumed will contributions and additional are needed to fund the shortfall growth risk • Salary - The risk that wages or salaries rise will than more assumed, rapidly increasing vested benefits to funded be The next triennial actuarialThetriennial 2021. review next 1 July is not due until The most significant risks result that may LGIAsuper in increasing the contribution rate, on the advice are: of the actuary, No changes have been made to prescribed contributions employer which remain assets at 12% of employee and there are no known requirements to change the rate of contributions. the valuation date." The impacts of COVID-19 on the fund has been assessed and there is considered tono material be impact. that hasCouncil is happened since not aware of anything that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date. them. However the risk of this occurring accordance and in low is extremely the with LGIAsuper trust be deed changes to council's only will obligations made on the advice The of an actuary. last completed actuarial assessment of the scheme was undertaken 2018. The indicated as that actuary “At at 1 July 2018, the net assetsthe valuation date of 1 July of the scheme exceeded the vested benefits and the scheme was a satisfactory in position as financial at LGIAsuper is to account unable for its proportionate assets share plan obligation, benefit of the defined and costs. which amount the scheme by Any is over or under affect funded may future benefits and result a change in to the contribution rate, but has not been recognised of Council. as an asset or liability to Council the scheme canTechnically be liable for a portion of another local governments’ should obligations that local government to meet be unable The scheme however plan, is benefit a defined Council is to account not able accordance for in as plan it benefit a defined 119 because AASB with Council contributes to the LGIAsuper Benefits Defined Fund Regional (the scheme), at the rate of 12% for each permanent who is a defined employee member.benefit This rate is set accordance in the with LGIAsuper trust be varied deed and may the on advice The Defined of an actuary. Regional Benefits Fund superannuationis a complying scheme for the purpose of the Commonwealth (Supervision) Superannuation Industry and is also legislation the Localgoverned Government by Act 2009.
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financialthe Statements to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30June 2020 Statements Financial the to Notes Net cash inflow from operating activities Increase/(decrease) in other liabilities Increase/(decrease) in provisions Increase/(decrease) in contract liabilities Increase/(decrease) in payables (Increase)/decrease in inventories (Increase)/decrease in contract assets (Increase)/decrease in other assets (Increase)/decrease in receivables Changes in operating assets and liabilities: Capital in work progress write off to property,Adjustments plant & equipment Net loss onwrite-off of non-current assets Net loss ondisposal of noncurrent assets taxIncome equivalents Controlled entity dividend Capital grants andcontributions Investing and development activities: Borrowing costs Financing activities Depreciation andamortisation Fair adjustment value Finance costs Change in future rehabilitation costs adjustments Impairment Revaluation adjustments Non-cash contributions included in fixed assets Non-cash operating items: Net result 30 Reconciliation of net result for the year to net from cash inflow operating activities 2019/20 AnnualReport 9, 10 Note 3(e) 3(e) 4(b) 4(b) 16 16 22 9 9 7 7 9
30 June 2020
$'000 (23,816) (7,316) (5,592) (2,223) (1,026) (2,574) 39,090 43,494 23,726 32,848 48,962 6,760 2,546 2,728 1,980 1,509 3,202 (996) (965) (325) Consolidated 767 332 695 - 54 11 25 46 30 June 2019 $'000 (16,255) (14,305) (6,350) (4,095) (4,799) (1,220) (3,843) 44,155 44,019 51,620 20,297 7,266 3,697 4,359 2,574 (496) 338 232 ------27 35 24 17 30 June 2020 $'000 (76,870) (2,729) (7,316) (5,592) (1,431) (2,574) 91,097 41,083 23,179 32,848 55,196 43,047 4,707 2,728 2,383 1,482 (996) (926) (316) 332 269 644 935 - (1) 25 46 54 Council 30 June 2019 $'000 (14,305) (17,259) (7,039) (3,935) (3,984) (1,056) (2,704) 41,510 41,470 20,710 47,480 5,223 3,697 4,369 2,574 (325) (496) (69) 338 232 - - - - - 35 24 17 Page 174 48 OUR FINANCES 49 Page 175 7,724 6,511 1,528 1,431 (1,213) 109,613 111,141 109,613 111,044 119,510 119,510 and As at As Total $'000 $'000 30 June 2020 30 June 56 98 56 33 89 42 - 232 232 Contributions AASB 1004, Contributions 7,357 7,357 $'000 $'000 changes Non-cash Non-cash Prepaid rates Prepaid Income of NFP Entities NFP of AASB 1058, Income 689 (75) , AASB 118, Revenue (129) 3,559 4,248 (9,404) (9,953) (9,953) (9,404) (10,082) (10,028) $'000 $'000 Contract liabilities Cash Flows , AASB 117, Leases - - - - 1,615 1,615 1,473 1,473 (3,192) (5,094) (1,902) $'000 $'000 policy assets Contract Change in accounting
- - 128,682 119,510 119,510 119,510 119,510 128,682 As at As $'000 30 June 2019 30 June . 2019/20 Annual Report using the modified retrospective (cumulative catch-up) method and therefore the comparative information for the year ended 30 June 2019 ended 30 June year the for comparative information the method and therefore catch-up) (cumulative retrospective modified the using
Council has adopted the completed contract expedient and therefore has excluded revenue which was fully recognised in previous years in accordance accordance in years previous in recognised was fully which revenue excluded has and therefore expedient completed the contract adopted has Council and pronouncements standards accounting former the with Council has not retrospectively restated contracts for modifications that occurred before 1 July 2019 unless such contract modification were minor. were modification contract such 2019 unless 1 July before occurred that modifications for contracts restated retrospectively not has Council
• •
31 Reconciliation of liabilities arising from finance activities finance from arising liabilities of 31 Reconciliation 32 Changes in accounting policy accounting in 32 Changes The impacts of adopting these standards and associated transition disclosures are provided below: provided are disclosures transition and associated standards these The adopting of impacts and associated Accounting Interpretations Accounting and associated 2019. 1 July at earnings 16 have 1058 and AASB AASB been taken 15, retained AASB to of adjustments on adoption All AASB 16 Leases Contracts 111 Construction AASB with comply to and continues been restated not has Consolidated Key changes in accounting policies on the adoption of AASB 15 and AASB 1058 are disclosed in Notes 3 & 4. 3 & Notes in disclosed 1058 are 15 and AASB AASB of adoption on the policies accounting in changes Key The following options have been applied on transition to AASB 15 and AASB 1058: 15 and AASB AASB to on transition have been applied options The following Revenue from Contracts with Customers with Contracts from 15 Revenue AASB adopted has Council 2020, ended 30 June year the During 1058 AASB Under Adjustments to retained earnings on transition at 1 July 2019 1 July at on transition earnings Adjustments retained to Revenue standards - AASB 15 and AASB 1058 AASB 15 and AASB - standards Revenue 30 June 2020 30 June Under AASB 15 Under Council Loans Consolidated Loans liability Lease Council Loans liability Lease 2019 30 June Consolidated Loans
For the year ended 30 June 2020 30 June ended year the For Notes to the Financial Statements
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements these leases is recognised in thethese Income on recogniseda straight- in is Statement leases Comprehensive basis. of line has used the exceptionCouncil to accounting lease short-term for low-value of and leases leases assets, and the expense lease relating to (except position recognised on the statement financial short-termof for low-value of and leases leases assets). between no differentiation is and operating the for leases which and finance therefore are leases lessee a lease of all themeet definition whetherof risks and rewards the significant ownership of had been transferred with or remained to Council the 16, lessor. there Under AASB Under the accounting previous lease standard, assessed whether Council were leases operating leases, basedor on its assessmentfinance as a lessee Council standardLease - AASB 16 2020. 1058 has not change to caused 15 and a AASB material the AASB Statement Flows adoption Cash The of of the for year ended 30 June Statement of cash flows for the year ended 30 June 2020 recognised over rather time 1004. thanunder AASB on receipt funding of adjustmentsThe above relate to the contract recognition of assets revenue for and contract streams where liabilities the revenue is Revenue - capital Grants revenue Sales Rates and utility charges Revenue - operating Statement of comprehensive income for the year ended 30 June 2020 (consolidated) Contract assets Statement at of position 30 Junefinancial 2020 (consolidated) tocompared the previous revenue standards. following tableThe shows the by amount 1058 byas whichaffected is statement 15 and AASB item the AASB line the of financial application statements between lines financial 15 /affected of 1058 and previous revenueAASB standardsComparison Revenue standards - AASB AASB 15 and 1058 (cont'd) Retained earnings Retained Contract liabilities - currentContract liabilities 32 Changes in accounting policy (cont'd) 2019/20 AnnualReport Financial Position Carrying amount per Statement of of Statement per Comprehensive Statement of of Statement Balance Balance per Dr / (Cr) $ / (Cr) Dr Dr / (Cr) $ / (Cr) Dr Income (1,416,704) (1,414,397) 182,059 150,434
(3,222) 12,908 11,929 6,788 915 Adjustments Adjustments Dr / (Cr) Dr Dr / (Cr) Dr $ $ (1,295) (2,307) 3,225 1,795 1,232 1,493 3,222 (915) - Carrying amount if Carrying amount if standards had standards had standards had standards had been appliedbeen been appliedbeen Dr / (Cr) $ / (Cr) Dr Dr / (Cr) $ / (Cr) Dr previous previous (1,416,704) (1,416,704) 185,284 151,927 14,703 13,161 5,493 - - Page 176 50 OUR FINANCES 51 Page 177 $'000 2,254 2,254 1,545 70 1,615
2019/20 Annual Report
Excluded leases with an expiry date prior to 30 June 2020 from the Statement of Financial Position, and lease expenses for these leases of Financialfor these from 2020 Statement June 30 the leaseto and Position, expenses prior date expiry an leases with Excluded remaining the basis term. over straight-line a on recorded been have lease. the terminate or extend to options contains if lease determining contract term the the Usedhindsight when A single discount rate was applied to all leases with similar applied all characteristics. to leases with was Asingle rate discount perform than rather 2019 June 30 at relevant) lease provision onerous (where existing the by adjusted was asset Theright-of-use asset. impairmentright-of-use of the testing 16. 2019. July 1 liabilities Lease at rate using Council’s discounted been have incremental borrowing or prepaid any to consideration with lease liability the amountan equal to measuredbeen at have 2019 July 1 at assets Right-of-use lease payments. accrued Contracts which had previously been assessed as not containing leases under AASB 117 were not re-assessed on transition to AASB to transition on re-assessed not AASB containing leases under not as were 117 assessed been previously had which Contracts
• • • • • • •
32 Changes in accounting policy (cont'd) policy accounting in Changes 32 Consolidated Add: included commitments not in the note exercised be to certain reasonably options Extension 2019 July 1 at recognised Leaseliabilities Operating lease consolidated financial commitment per 2019 June 30 Operating at statements 2019 July 1 at rate incremental Discountedusing borrowing the leases previously classified as operating leases. Where a lease did not contain an implicit interest rate, the QTC borrowing rate for fixed term term for fixed rate classified Where leases. operating as leasesborrowing QTC previously the implicitan leasea contain rate, did not interest 2019. applied lease liabilities to July 1 were leaseat matching term the borrowings Impact of adopting AASB adopting July1 2019 of at 16 Impact for2019 leaseand liabilities July 1 assets Right-of-use at recognised forbeen for consolidated Councilhave of $1,615,231 $1,472,577 and AASB 16 includes a number of practical expedients which can be used on transition. Council expedients: following the used has transition. on used be can AASBwhich includes16 numbera of expedients practical Practical expedients used on transition transition on used expedients Practical Council has used the exception to lease accounting for short-term leases and leases of low-value assets, and the lease expense relating to to relating lease expense the and assets, leases leasesand of low-value for leaseshort-term accounting to Councilexception the used has line of basis. Comprehensive leases Statement is in straight- a recognised on Income these the of whether the significant risks and rewards of ownership had been transferred to Council or remained with the lessor. Under AASB 16, there AASBUnder there lessor. 16, the Council to remained or with transferred been had of ownership significant the rewards and risks ofwhether definition meetthe all of leasea lesseeleases are therefore financeand which leases for the operating and isdifferentiationno between assets). leases leasesand of low-value forof short-term financial statement the on recognised position (except Councillesseea as (cont'd) financeassessment its on or based leases, operating leases were Council whether assessed standard, lease previous accounting the Under Lease standard - AASB 16 (cont'd) 16 AASB - Leasestandard
For ended the year June 30 2020 Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements period: following tableThe represents exposure the maximum to credit risk based on the carrying assets at the financial the amounts end of of reporting as security held is collateral No assets relating to by held the financial Council. with institutions Australia, line in in thefinancial therequirements of Statutory Arrangements Financial Bodies Act 1982 instruments areInvestments required to withfinancial in be made Queensland Treasury Corporation state/commonwealth (QTC) or similar or bodies assets representsfinancial credit the exposure. maximum Exposure to throughcredit managed risk is regular analysis credit of counterparty ability to payment meet carrying obligations. The of amount customers. investments from principally and receivables Council's from a counterparty if loss Credit the risk is financial to risk of its meet instrument contractual fails arise to obligations obligations. These a financial risk measures exposure Council Gladstonea variety using Regional methods as follows: of taking into account any risk. Borrowing by regulated is by Council thethe of provisions borrows, Council it borrowsWhen the Queensland from Treasury rate, beneficial institution a more Corporation cananother offer unless financial derivativesin or other risk investments. high assetsInvestments are only financial in where made those assets are with does not a institutionbank or Australia. invest in another Council financial its exposure the risk in following ways: tominimises financial Council Council. of performance potential adverse on thethe effects markets financial volatility and seek managing to minimise financial of on focus risk policies These management. accordance in withExposure on financial managed risk is approved policies to Council financial the nature performance, including and extent and financial position risks and how these of financial manages exposures.Council's Council (both noteThis provides information and qualitative quantitative) to instruments assist on statement financial usersof evaluate the significance activities exposeCouncil's it to a interestvariety risks including rate risk, financial of credit risk, and liquidity risk. Borrowings • - at measured amortised cost (Note 21) Payables • - at measured amortised cost (Note 20) Financial liabilities - at measured amortised costReceivables • (Note 12) and cash - equivalents Cash at measured • amortised cost (Note 11) assets Financial at dateheld balance as follows: liabilities assets has categorised and financial the and measured Council financial Gladstone Regional the contractual the of provisions instrument. when, liability Position assetthe in Statements or Financial a financial recognises of a financial and onlyCouncil when, a party becomes Council to Credit risk Credit management risk Financial management risk financial and instruments 33 Financial 2019/20 AnnualReport
Statutory Arrangements Financial Bodies Act 1982 . . Page 178 52 OUR FINANCES 53 289 Page 179 7,160 1,553 20,089 132,503 103,412 delivering $'000 by 30 June30 2019 settled are Council 289 that 7,434 1,574 20,507 99,627 129,431 $'000 liabilities 30 June30 2020 financial with 289 9,478 1,553 20,089 148,152 116,743 $'000 associated 30 June30 2019 obligations 289 Consolidated 8,077 1,574 20,507
144,287 113,840 $'000 meeting in 30 June30 2020 11 12 12 27 27 Note difficulty encounter will Council 2019/20 Annual Report that risk the is risk
Liquidity risk Liquidity Credit risk (cont'd) 33 Financial instruments and financial risk management (cont'd) Local Government Workcare LocalGovernment Cashequivalents cash and Guarantees assets Totalfinancial Receivablesother - Council manages its exposure to liquidity risk by maintaining sufficient cash deposits to cater for unexpected volatility in flows. cash volatility maintaining for unexpected cater sufficient to deposits by cash risk liquidity to Councilmanages exposure its Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation Corporation Treasury from Queensland the normalof in business borrowings the course and trading its through risk liquidity Councilto is exposed for capital works. Government Queensland the and cash or another financial another or asset. cash due, are they labilities meet its to sufficient have when will it liquidity possible, farthat as as ensure, is managing to Council'sto liquidity approach risking damageCouncil's losses or unacceptable incurring reputation. to without conditions, normal stressed both and under Liquidity Council has assessed the credit risk relating to the loan receivable from the Gladstone Airport Corporation and has determined that there is no there determined that has and Corporation Airport loan receivable fromthe Gladstone to the relating risk Councilcredit the assessed has Additional periods. previous information significantto relative is risk in provided in12. Note increase credit Council does not require collateral in respect of trade and other receivables. Council does not have trade receivables for which no loss allowance is lossno allowance receivables for which Council trade have receivables. not does other and of trade collateralCouncil in require respect not does of because recognised collateral. By the nature of Council's operations, there is a geographical concentration of risk in Council's area. As the area is largely commercial, there iscommercial, also there is largely area of As in the risk Council's is geographicala area. concentration there of Council's nature operations, the By commercial in the sector. concentration a In the case of rate receivables, Council has the power to sell the property to recover any defaulted amounts and therefore generally for rates debtors debtors for rates generally defaulted therefore and amounts any recover to sell property to the Council power receivables, ofthe has case rate the In is risk low. credit the to procedures applies and services before providing normal risk protection or goods businessCouncil credit credit the cases, assesses other In minimise risk. the Other investments are held with financial institutions, which are rated from AA+ to BBB or unrated are based on rating agency Standards and Poor Poor and Standards agency rating on based are from BBB AA+ unrated rated to or are financial which held institutions, with are investments Other likelihood the failure of credit low. a capital as isguaranteed, assessed not whilst and ratings, management portfolio that invests with a wide range of high credit rated counterparties. Deposits with the QTC Cash Fund are capital guaranteed. capitalCash QTC guaranteed. Fund are the Deposits with counterparties. of rated range high credit wide a with invests managementportfolio that minimuma have the to Workingallrequired and therefore of are "A-", investments rating credit of day one duration a have deposits Capital Facility financial meet its to commitments is strong. having capacity likelihoodcounterparty of the Council is exposed to credit risk through its investments in the QTC CashQTC in Fund WorkingQTC and investments the its through risk credit The CashQTC CouncilFundto is asset an isCapital exposed Facility. Receivables - rates Receivablesrates - Trade and other receivables other and Trade Other financial Other assets Financial assets Financial Cashequivalents cash and
For ended the year June 30 2020 Notes to the Financial Statements Financial the to Notes
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Notes totheFinancialStatements For the year ended 30 June 2020 30June year the ended For Notes to the Financial Statements Loans - other Loans - QTC Loans - other Loans - QTC Loans - other Loans - QTC Loans - other Loans - QTC instruments. Market the risk is risk that suchmarket aschanges interest in indicies, financial rates, of or its the holdings of income value will Council's affect the in indicated table. outflowsThe the in above table are not expected to occur significantly earlier and are not expected to be significantlyfor amounts than different agreements: at contractual the theremaining end of reportingcashflows liabilities and interest) period, (principal excluding netting thefinancial of of impact 2020) for by held (excluding following table The It setsliabilities lease Council. out represents liabilities the liquidity the financial risk of Trade and other payables 2019 30 June Trade and other payables 2019 30 June Trade and other payables 2020 30 June Trade and other payables 2020 30 June Market risk Market Council Consolidated Liquidity risk (cont'd) (cont'd) management risk financial and instruments 33 Financial 2019/20 AnnualReport Note 21 20 21 21 21 21 20 21 20 21 21 20 0 to 1 year 0 to 1 year $'000 $'000 16,063 12,897 15,985 15,713 16,063 13,344 15,985 16,323 29,566 32,304 30,013 32,914 606 606 606 606 1 to 5 years 1 to 5 years $'000 $'000
60,591 59,060 60,591 59,060 63,015 61,484 63,015 61,484 2,424 2,424 2,424 2,424 - - - - Over 5 years Over 5 years $'000 $'000 78,360 63,906 78,360 63,906 81,087 66,028 81,087 66,028 2,727 2,122 2,727 2,122 - - - - contractual contractual cash flowscash cash flowscash Total Total Total Total $'000 $'000 155,014 138,951 155,014 138,951 173,668 159,816 174,115 160,426 12,897 15,713 13,344 16,323 5,757 5,152 5,757 5,152 Carrying Carrying Carrying Carrying amount amount $'000 $'000 114,858 105,512 114,858 105,512 132,408 125,325 132,855 125,936 12,897 15,713 13,344 16,323 4,653 4,101 4,653 4,101 Page 180 54 OUR FINANCES 55 Page 181
2019/20 Annual Report goods and services to itself to goods and services The submission of a competitive tender in the local government's own tendering process in competition with others for the provision of provision the for others with competition in process tendering own government's local the in tender of a competitive submission The Submission of a competitive tender for construction of road maintenance on the local government's roads which the local government government local the which roads government's local on the maintenance of road construction for tender of a competitive Submission government local another by for called or tender, to out has put The construction or maintenance of State controlled roads for which the local government submits an offer to carry out work in in work out carry to an offer submits government local the which for roads controlled of State maintenance or construction The arrangement supplier a sole through than other invitation, a tender to response Library services Library legislation by prescribed thereof part or activity An Trading in goods and services to clients in competition with the private sector, or sector, private the with competition in clients to goods and services in Trading
• • • • • •
(a) Activities to which the code of competitive conduct is applied is conduct competitive of code which to the Activities (a) 34 National Competition Policy Competition National 34 Market (cont'd) risk 33 Financial instruments and financial risk management (cont'd) management risk financial and instruments Financial 33 (ii) Other business activities business Other (ii) The CSO value is determined by Council, and represents any activities' cost(s) which would not be incurred if the activities' primary objective objective primary activities' the if be incurred not would which cost(s) activities' any and represents Council, by determined is value CSO The non-commercial of providing cost the cover to activity business the to revenue general from funding provides Council profit. a make to was Council. by be CSO's to deemed of costs services application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages and disadvantages advantages the and eliminating (CSO) obligations service of community cost the identifying pricing, cost of full application compulsory. is activity business roads the to CCC of the application The activity. that within ownership of public Local government may elect to apply a Code of Competitive Conduct (CCC) to their identified business activities. This requires the the requires This activities. business identified their to (CCC) Conduct of a Code Competitive apply to elect may government Local Excluded activities are; activities Excluded (i) Roads business activity business Roads (i) A "business activity" of a local government is divided into two categories: two into divided is government of a local activity" "business A Due to the risk minimisation, there is no reasonable possible movement that would case a material impact to profit and loss or equity. equity. or and loss profit to impact case a material would that movement possible no reasonable is there minimisation, risk the to Due Council does not undertake any hedging of interest rate risk. risk. rate of interest hedging any undertake does not Council The risk in borrowing is effectively managed by borrowing mainly from the QTC and having access to a mix of floating and fixed funding funding and fixed of floating a mix access to and having QTC the from mainly borrowing by managed effectively is borrowing in risk The minimal. is areas other in risk rate Interest can be minimised. exposure risk rate interest the so that sources Interest rate risk of Local Department the (QTC), Corporation Treasury Queensland the from borrowings its through risk rate interest to exposed is Council institutions. financial with held and investments Affairs and Multicultural Racing Government,
For ended the year 30 June 2020 Notes to theFinancial Statements
For the year ended 30 June 2020 ended 30 June For the year Notes to the Financial Statements the Financial to Notes Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
Notes to the Financial Statements NotesFor the to yearthe Financial ended 30 Statements June 2020 For the year ended 30 June 2020 2019/20 AnnualReport
34 National Competition Policy (cont'd) (a) Activities to which the code of competitive conduct is applied (cont'd)
Council applies full cost pricing to its business activities which involves the recognition of both community service obligations and competitive neutrality adjustments.
Gladstone Regional Council has identified business activities in the following areas:
• Roads • Other business activities • Gladstone Entertainment Convention Centre • Building certification • Waste management • Water • Sewerage
(b) The following activity statements are for activities subject to the competitive code of conduct
Gladstone Roads Entertainment & Building Certification Waste Management Water Sewerage Convention Centre 30 June 2020 30 June 2020 30 June 2020 30 June 2020 30 June 2020 30 June 2020 $'000 $'000 $'000 $'000 $'000 $'000 Revenue Revenue for services provided to Council 48,639 - - 6,339 1,882 254 CSO activities funded by Council* - 200 - - - - Revenue for services provided to external clients 4,469 624 896 15,135 33,302 30,543 53,108 824 896 21,474 35,184 30,797 Expenditure Operating expenditure 52,144 5,912 766 20,688 36,519 21,488 Competitive neutrality adjustments applied 363 36 44 436 (73) 2,520 52,507 5,948 810 21,124 36,446 24,008
Return/(deficit) for the financial year 601 (5,124) 86 350 (1,262) 6,789
* CSO funded activities for the Gladstone Entertainment and Convention Centre included booking fees, venue hire and plant and equipment hire.
Council applied an alternative calculation methodology for the year ended 30 June 2020 and therefore these results cannot be accurately compared to those from the year ended 30 June 2019. Page 182
56
OUR FINANCES 57
Page 183
Total 3,900 3,541
Termination benefits Termination 535 -
Long-term benefits Long-term 18 36
Post-employment benefits Post-employment 342 339
Short-term employee benefits employee Short-term 3,005 3,166
$'000 $'000
30 June 2019 June 30 2020 June 30
KMP include the Mayor, Councillors, Council's Chief Executive Officer and some executive management. The compensation paid to KMP comprises: comprises: KMP to paid compensation The management. executive some and Officer Executive Chief Council's Councillors, Mayor, the include KMP
(c) Transactions with key management personnel (KMP) personnel management key with Transactions (c)
This joint venture was disbanded on 31 December 2018 with Council's share of the remaining funds returned. funds remaining the of share Council's with 2018 December 31 on disbanded was venture joint This
(89) -
Group
(89) -
Gladstone Economic Futures Futures Economic Gladstone
$'000 $'000
30 June 2019 June 30 2020 June 30
(b) Transactions with joint ventures joint with Transactions (b)
The Gladstone Airport Corporation reported a net after tax loss for the financial year ended 30 June 2019 and therefore no dividend was declared. was dividend no therefore and 2019 June 30 ended year financial the for loss tax after net a reported Corporation Airport Gladstone The
Gladstone Airport Corporation Airport Gladstone 86 89 71 53 39 39 2,043 2,043 689 506 325 -
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
30 June 2019 June 30 2020 June 30 2019 June 30 2020 June 30 2019 June 30 2020 June 30 2019 June 30 2020 June 30 2019 June 30 2020 June 30 2019 June 30 2020 June 30
Neutrality Margin Neutrality
Subsidiary
Dividends Interest Received Interest Administration Fees Administration IT and Phone Charges Phone and IT Rates and Water and Rates
Income Tax Equivalent / Competitive Competitive / Equivalent Tax Income
Controlled Entity Receipts Entity Controlled Goods and services supplied by Council, on normal terms and conditions and terms normal on Council, by supplied services and Goods
The following transactions occurred with subsidiaries: with occurred transactions following The
The group consists of Gladstone Regional Council and one subsidiary. The subsidiary, Gladstone Airport Corporation, is consolidated (Note 14). 14). (Note consolidated is Corporation, Airport Gladstone subsidiary, The subsidiary. one and Council Regional Gladstone of consists group The
(a) Subsidiaries (a) 35 Transactions with related parties related with Transactions 35
2019/20 Annual Report
For the year ended 30 June 2020 June 30 ended year the For
For the year ended 30 June 2020 June 30 ended year the For
Notes to the Financial Statements Financial the to Notes
Notes to the Financial Statements Financial the to Notes
Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
Notes to the Financial Statements NotesFor the to yearthe Financial ended 30 Statements June 2020 For the year ended 30 June 2020
2019/20 AnnualReport 35 Transactions with related parties (cont'd)
(d) Transactions with other related parties
Other related parties include the close family members of KMP and any entities controlled or jointly controlled by KMP or their close family members. Close family members include a spouse, child and dependent of a KMP or their spouse.
Details of transactions between Council and other related parties are disclosed below:
Additional 30 June 2020 30 June 2019 Details of Transaction information $'000 $'000 Fees and charges charged to entities controlled by key management 35(d)(i) 86 59 personnel
Employee expenses for close family members of key management personnel 35(d)(ii) 517 285
Purchase of materials and services from entities controlled by key 35(d)(iii) 98 33 management personnel
(i) The fees and charges charged to entities controlled by key management personnel were on an arm's length basis in accordance with the schedule of fees and charges adopted by Council. The total disclosed includes the following:
Fees and charges charged to entities controlled by key management 30 June 2020 30 June 2019 Details of related party transactions personnel $'000 $'000 Search fees Fees relating to enquiries for outstanding rates & water charges 29 49
Application fees & charges Building, development, infrastructure fees 51 10
Other fees and charges Various other fees & charges 6 -
Total 86 59
Page 184 58
OUR FINANCES 59
Page 185
33 98 Total
1 - Provision of other services other of Provision
- - 18 Professional development Professional
21 29 Construction/ improvements to assets to improvements Construction/
4 42 Provision of services for community events community for services of Provision
7 9 Funding awarded - Regional Arts Development Fund Development Arts Regional - awarded Funding
$'000 $'000
Materials and services purchased from entities controlled by key management personnel management key by controlled entities from purchased services and Materials
30 June 2019 June 30 2020 June 30
Council operations: Council
(iii) The consolidated entity purchased the following material and services from entities that are controlled by members of key management personnel. All purchases were at arm’s length and were in the normal course of of course normal the in were and length arm’s at were purchases All personnel. management key of members by controlled are that entities from services and material following the purchased entity consolidated The (iii)
Total 285 517
Long-term benefits Long-term 5 9
Post-employment benefits Post-employment 29 50
Short-term employee benefits employee Short-term 251 458
$'000 $'000
30 June 2019 June 30 2020 June 30
Council employs 684 staff of which only 5 are close family members of key management personnel (3 in 2018/2019). The total employee expenses disclosed includes the following: the includes disclosed expenses employee total The 2018/2019). in (3 personnel management key of members family close are 5 only which of staff 684 employs Council
(ii) All close family members of key management personnel were employed through an arm’s length process. They are paid in accordance with the Award for the job they perform. perform. they job the for Award the with accordance in paid are They process. length arm’s an through employed were personnel management key of members family close All (ii)
(d) Transactions with other related parties (cont'd) parties related other with Transactions (d) 35 Transactions with related parties (cont'd) parties related with Transactions 35
2019/20 Annual Report
For the year ended 30 June 2020 June 30 ended year the For
For the year ended 30 June 2020 June 30 ended year the For Notes to the Financial Statements Financial the to Notes
Notes to the Financial Statements Financial the to Notes
Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
Notes to the Financial Statements NotesFor the to yearthe Financial ended 30 Statements June 2020 For the year ended 30 June 2020
2019/20 AnnualReport 35 Transactions with related parties (cont'd)
(e) Outstanding balances
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:
Receivables Payables Amounts owed by entities Amounts owed by Controlled Amounts owed to entities controlled controlled by key management Amounts owed to Controlled Entities Entities by key management personnel personnel $'000 $'000 $'000 $'000 Current (less than 30 days) 6 - - -
No expense has been recognised in the current year or prior year for bad or doubtful debts in respect of amounts owed by related parties.
The following balances for Controlled Entity transactions are reported separately in Note 12:
30 June 2020 30 June 2019 Note $'000 $'000 Trade receivables - current 12 55 (72) Trade receivables - non-current 12 33,716 33,716
(f) Loans and guarantees to/ from related parties
Council has a loan arrangement with the Gladstone Airport Corporation, as detailed in Note 12.
Council does not make loans to or receive loans from any other related parties. No guarantees have been provided.
(g) Transactions with related parties that have not been disclosed
Most of the entities and people that are related parties of council live and operate within the Gladstone region. Therefore, on a regular basis ordinary citizen transactions occur between Council and its related parties. Some examples include: - Payment of rates - Use of the swimming pool - Dog registration - Borrowing books from a Council library Council has not included these types of transaction in its disclosure, where they are made on the same terms and conditions available to the general public.
Page 186 60 OUR FINANCES 61 Page 187 for the establishment and for the Local Government Regulation 2012 the 2020 11 sections 176 and 177 of to 13 _____/_____/_____
Local Government Regulation 2012 and Local Government Acting Chief Executive Officer Executive Chief Acting Date: MarkHolmes Management Certificate For the year ended June 30 2020 year the For Local Government Act 2009 Act LocalGovernment 2019/20 Annual Report 2020 11 13 _____/_____/_____
Accounting Standards, of Council's and the consolidated entity's transactions for the financial year and financialand end financial the forposition the at year transactions of consolidated entity's Council's the and Standards, Accounting year. ofthe keeping of accounts have been compiled with in all material respects; and in all compiledbeen have keepingof material accounts respects; with
Date: Mayor MatthewBurnett (ii)Australian with in accordance fairand view, true a present 60, to 2 pages on out set as financial purpose general the statements, (i) of requirements the prescribed the In accordance with section 212(5) of the Regulation we certify that: certify Regulation of the we 212(5) section with accordance In The general purpose financial statements have been prepared pursuant (the Regulation) and other prescribed requirements. requirements. prescribed Regulation) other and (the
For the year ended 30 June 2020 ended 30 June For the year Certificate Management Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil Independent AuditReport-Financial Council I am independentI of the councilandthe group in withaccordance ethical the requirements of my report. a) gives a true and fair view of the c the of view fair and true a gives a) report: financial the my opinion, In controlled(theits andentity group). I have audited the accompanying financial report of Gladstone Regional Council (the council) Opinion report financial the of audit the on Report Council Regional Gladstone of Councillors the To The councillors are responsible thefor other information. sustainability statement, long-term financial sustainabilitystatement, and the annual report. Other informationOther comprisesnon-financialandinformation financial audited (other thanthe Other information opinion.basis my for believeI thataudit the evidence have I obtained andis appropriate sufficient to providea Auditor-General the Standards Auditingand Australia.havealso I fulfilledmy other ethical responsibilities accordancein with Code the Professional Accountants further described in the incorporate theAustralianStandards. Auditing My responsibilities thoseunder standards are the with complies b) I conductedI my audit in accordance with the opinionBasis for and theactingChiefExecutive Officer. accounting policies and other explanatoryandthe information, certificate givenby Mayor the cash yearflows for the then ended, notes to the financial statements includingsignificant statements of comprehensive statementsincome, of changes in equity and statements of comprisesThereport2020,statements financial30 Juneofposition the financial the as at ended ended then year the for flows and cash performance financial their of and 2020, June 30 and Australian Accounting Standards. Standards. Accounting Australian and 2019/20 AnnualReport Local Government Act 2009 Act Government Local (the Code) arethat relevant to my auditof the financial in report responsibilities for the audit of the financial report .
Auditor-General Auditing Standards and g and 2020 wasthecurrent year financial , the Local Government Regulation 2012 2012 Regulation Government Local the , financial position as at at as position financial
Gladstone Regional Code ofEthics for , which section of Page 188 OUR FINANCES Page 189 or to council council l of assurance, l of assurance, ability to ability , the, Local Government internal control. control. internal inancial inancial report
Local Government Act 2009 Act Government Local
2019/20 Annual Report
accounting estimates and related disclosures made by the council. the by made council. disclosures related and estimates accounting procedures that are appropriate in the circumstances, but not for expressing an opinion opinion an for expressing not but circumstances, the in appropriate are that procedures g the or council's of the effectiveness on the due to fraud or error, design and perform audit procedures responsive to those risks, risks, thoseto responsive procedures audit perform and design fraudor error, to due my for a basis provide to appropriate and sufficient that is evidence obtain and audit is higher fraud from resulting misstatement material a detecting not of risk The opinion. forgery, collusion, involve intentional as may from fraud than for error, resulting one internal of control. override the or misrepresentations, omissions, of reasonableness the used and policies of accounting the appropriateness Evaluate design audit to order audit inthe to relevant control of internal understanding Obtain an whether report, financial the of misstatement material of the risks assess Identify and continue as a going concern, disclosing, as applicable, matters relating to going concern concern going and to relating matters applicable, as disclosing, concern, going a continue as the abolish to is intended unless it accounting of basis concern going the using but is not a guarantee that an audit conducted in accordance with the Australian Auditing with Auditing accordance the Australian in conducted audit an that guarantee a but is not can arise Misstatements it exists. when misstatement material detect a always will Standards could they or in aggregate, if, individually material considered are and error fraud or from of the basis on taken decisions users of economic the to influence be expected reasonably this financial report. exercise I Standards, Auditing the Australian with accordance in audit of an As part I also: the audit. throughout scepticism professional maintain and judgement professional I accordingly do and information other the not cover does report financial on the opinion My the by as required Local However, thereon. conclusion assurance form of any not express year current the on opinion separate a expressed I have 2012, Regulation Government statement. financial sustainability is toother read the responsibility my report, financial of mythe audit with In connection inconsistent materially is information the other whether consider so, in doing and, information be to appears or otherwise in the audit obtained knowledge my and report financial the with misstated. materially misstatement of material there is a that I conclude performed, I have work the on If, based regard. this in report to nothing I have fact. that report to required I am this information, report financial the for councillors the of Responsibilities a true gives that report financial the of for preparation the responsible are councillors The the with in accordance fair view and My objectives are to obtain reasonable assurance about whether the financial report as report as a financial the whether about assurance reasonable obtain to objectives are My issue to an error, and fraud or to due whether misstatement, material from free is whole otherwise cease operations of the group. the of operations cease otherwise Regulation 2012 and Australian Accounting Standards, and for such internal control as the the as control internal for such Standards, and Accounting Australian and 2012 Regulation that is report financial the of preparation the enable to necessary determine is councillors or error. fraud to due whether misstatement, from material free g the and council's for assessing responsible also are councillors The Independent Audit Report - Financial Report - Financial Report Audit Independent Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil Independent AuditReport-Financial internal control Ithat identify during my audit. timing ofaudit the and significant audit findings, including anysignificant deficiencies in communicateI with council the regarding, among matters,other the plannedscope and ) In myopinion, the prescribed requirements in relation to theestablishment and keeping b) I receivedallinformationthe andexplanations I required. a) accordanceIn with of s.40 the requirements regulatory and legal other on Report
Obtain sufficient appropriate audit evidence regarding the financial informationthe of Evaluate overall the presentation, structure and content of the financialincluding report, Conclude ontheappropriateness of thec MelissaRead as delegate of the Auditor-General Auditor-General the of delegate as the group. Iremain solely responsibleopinion. for my audit direction,responsibleIam report. the audit for of performancethe supervision of and entities business or activities withingroup the toexpress an opinion onthe financial andin events a manner achievesthat presentation.fair the disclosures,whether and the financial report represents thetransactions underlying of accountsof were complied withinall material respects. doubt on the council's or the g material uncertainty exists relatedtoevents or conditions that may cast significant concern basisofaccounting and, based on the audit evidence obtained,whether a are inadequate, to modify my opinion. I baseinadequate,audit are myto modify conclusionsonI theevidence opinion. my maycouncil cause the or the group to ceaseto continue as a goingconcern. concludethat amaterial uncertainty exists,am I requiredtodraw attention in my 2019/20 AnnualReport Auditor-General 2009 Act , forthe year ended 30June 2020: abilitygoingto continuea as concern.If I andthe g Queensland Audit Office use of the going going the of use 16 November 2020 Brisbane
Page 190 OUR FINANCES Page 191 62 10% 60% Target Not greater than than greater Not Between 0% and 0% Between Greater than 90% than Greater 43% 12% (0.71%)
Actual - Council - Actual 5% 41% (1.37%) Actual - - Actual Consolidated calculated How Measure the is Total liabilities less less liabilities Total divided assets current operating total by (excluding revenue capitalitems) Net result (excluding (excluding result Net capitaldivideditems) operating total by (excluding revenue capitalitems) on Capitalexpenditure ofreplacement the (renewals) assets depreciation dividedby expense. 2019/20 Annual Report Sustainability
Measures of Financial MeasuresFinancial of
Measures of Financial Sustainability Net Financial Liabilities Ratio Liabilities Financial Net Operating Surplus Ratio Operating the year ended 30 June 2020. June 30 ended year the The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of the of requirements the the with in accordance prepared is speciala statement purpose statement financial sustainability year Thecurrent calculate the Guidelineto The used amounts 2013. (Sustainability) Financial Regulation the and 2012 LocalGovernment Management from financial Council's for purpose general audited statements drawn basis are accrual and an on prepared measures are reported three Council's performance at 30 June 2020 against key financial targets: and ratios key against Council's2020 June 30 performance at Asset Sustainability Ratio Sustainability Asset Preparation of Basis Note- 1
For the year ended 30 June 2020 ended 30 June For the year Current-Year Financial Sustainability Statement Sustainability Financial Current-Year
Gladstone Regional Council
For ended the year 30 June 2020 Current-Year Financial Sustainability Statement Sustainability Financial Current-Year OUR FINANCES Gladstone RegionalCouncil For theyearended30June2020 Certificate ofAccuracy Date: ______/______/______Matthew Burnett Matthew Mayor accurately calculated. accurately been has statement sustainability financial current-year this that we certify Regulation the of 212(5) Section with accordance In 2012 Regulation Government Local the 178 of Section to pursuant beenprepared has statement sustainability financial current-year This 13 11 (the regulation). (the 2020 2019/20 AnnualReport
For For the year 2020 30 June ended Certificate of Accuracy Acting Chief Executive Officer Mark HolmesMark Date: ______/______/______13 11 2020 Page 192 63 OUR FINANCES Page 193 , which which , Gladstone Regional Regional Gladstone
Code of Ethics forEthics of Code 2020 was the general purpose financial financial general purpose 2020 was the Auditor-General Auditing Standards Auditing Auditor-General
. responsibilities for the audit of the current year financial financial year current the of audit the for responsibilities
(the Code) that are relevant to my audit of the the in of audit my statement to relevant that are (the Code) section of my report. report. my of section basis of accounting accounting of basis 2019/20 Annual Report
statements, long-term financial sustainability statement, and the annual report. report. statement, annual the and sustainability financial long-term statements, information. other for the responsible are councillors The responsibilities under the Local Government Regulation 2012. As a result, the statement statement the result, a 2012. As Regulation Government Local the under responsibilities matter.this of respect in modified opinion is not purpose. My for another not suitable may be Information Other the than (other audited financial information and non-financial comprises Other information To the Councillors of Gladstone Regional Council statement sustainability financial year the current on Report Opinion Gladstone of statement sustainability financial year current accompanying the audited I have the statement, June comprising 30 2020 thefor ended year council) (the Council Regional and the the Mayor acting by given of accuracy certificate notes, the and explanatory Officer. Executive Chief in opinion, my in 2012, Regulation Government Local the of 212 section with In accordance of statement Gladstone sustainability financial year current the respects, material all calculated. accurately 30 has been 2020 June ended year the for Council Regional of opinion Basis the with in accordance audit my I conducted
I am independent of the council in accordance with the ethical requirements of the the of requirements the ethical with accordance in the council of I independent am 110 APES Board Standards Ethical and Professional Accounting sustainability statement statement sustainability Accountants Professional the Code in with accordance responsibilities other ethical my fulfilled I also have Australia. and Auditing Standards the Auditor-General I believe that the audit evidence I have obtained is sufficient and appropriate to provide a provide to appropriate sufficient and is Iobtained have evidence the audit that I believe for basis my opinion. matter of Emphasis Council I draw attention to Note 1 which describes the basis of accounting. The current year financial financial year accounting.The current of basis describes the 1 which Note to attention I draw Management the with Financial accordance in prepared has been statement sustainability c the fulfilling of purpose the for 2013 Guideline (Sustainability) incorporate the Australian Auditing Standards. My responsibilities under those standards are are standards those under responsibilities My Standards. Auditing Australian the incorporate the in described further
Independent Audit Report Audit Independent - Current Year Financial Sustainability Statement Sustainability Year Financial - Current Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil - CurrentYearFinancialSustainabilityStatement Independent AuditReport accurately calculated andfromaccuratelycalculatedis material free misstatement,error. towhetherdue or fraud is necessary toenable the preparation and presentationfair of the statement that is professional judgement and maintain professional scepticism throughoutalso:I theaudit. partAsan of audit in accordance with theAustralianAuditing I Standards, exercise of the reported ratios, northe thereportedon c of ratios, My responsibilitydoesextend not to formingan opinion ontheappropriatenessor relevance statement.basis this takenon the users of the aggregate, they could reasonably be expectedto influence economicthe decisionsof Misstatements canarise from orfraud error and material considered are individually if, in or the AustralianAuditing Standards willalways a material detect misstatement whenit exists. higha levelassurance, of notbutis a guaranteean that audit conducted inaccordance with The councillors financial sustainabilitystatement inaccordanceLocal withGovernment the Regulation 2012. councillorsThe arepresentation responsiblepreparationcurrent the the year of fair and for statement Responsibilities ofthe councillors for the current yearfinancialsustainability this information, amI required to report that fact.have Inothing to report in this regard. basedIf, on the work Ihave performed, Iconclude that isathere material misstatement of materially misstated. with the financial report andobtained my knowledge intheaudit orotherwise appears to be informationand, indoingso,consider whether the other information is materially inconsistent connectionIn with auditthemy of financial report, my responsibilitythe readother isto separate opinionon the general purpose financial report. However, as required by the Local Government Regulation 2012, I have expressed a informationand accordingly donot I express anyof assuranceconclusionform thereon. My opinion current year onthe financial sustainability does statement cover notother the sustainability statement aas whole is fromfree materialmisstatement, whether due to fraud My objectives are to obtain reasonable assurance about whether the current year financial statement Evaluate appropriateness the accounting of policies usedand the reasonablenessof Obtainan understandinginternal of control relevant audit theto inorder to auditdesign and Identify assessrisks the of materialmisstatementstatement, ofwhether the due to accounting estimates and related disclosuresthe council. made by opinionanonexpressingtheeffectiveness thecouncil of proceduresinthatareappropriate the circumstances,purposebutof the not for omissions,misrepresentations, or the override control. of internal one resultingerror,than for fraudfrom mayas intentional involve collusion,forgery, opinion.Therisk of notdetectinga material misstatement resulting from fraud ishigher obtain audit evidence thatis sufficientand appropriate provideto a basis my for fraud orerror, design and perform audit procedures responsiveto those risks, and 2019/20 AnnualReport responsibilityalso includes control suchinternal asthe councillors determine
udit of currentthe year financial sustainability my opinion.Reasonable assuranceis
Page 194 OUR FINANCES Page 195
Brisbane 16 November 2020 2020 November 16 Queensland Audit Office Audit Queensland
2019/20 Annual Report disclosures, and whether the statement represents the underlying transactions and transactions the underlying represents statement the and whether disclosures, fair presentation. achieves that manner in a events
as delegate of the Auditor-General Melissa Read Melissa the the of including content and statement, structure presentation, the overall Evaluate
I communicate with the council regarding, among other matters, the planned scope and scope and the planned other matters, among regarding, council the with I communicate in deficiencies significant any including findings, audit significant and the of audit timing my audit. during identify that I control internal
Independent Audit Report Audit Independent - Current Year Financial Sustainability Statement Sustainability Year Financial - Current Gladstone Regional Council OUR FINANCES Gladstone RegionalCouncil
UnauditedUnaudited Long-Term Long-Term Financial Financial Sustainability Sustainability Statement Statement PreparedPrepared as as at 30at June 30 June 2020 2020
Projected for the years ended Actuals at Measures of Financial Sustainability Measure Target 30 June 2021 30 June 2022 30 June 2023 30 June 2024 30 June 2025 30 June 2026 30 June 2027 30 June 2028 30 June 2029 30 June 2020 2019/20 AnnualReport Consolidated Net result divided by total operating Between 0% Operating surplus ratio (1.37%) (3.23%) 0.94% 0.76% 0.46% 0.66% 0.75% 1.10% 2.92% 4.00% revenue and 10% Capital expenditure on the replacement Greater than Asset sustainability ratio of assets (renewals) divided by 41% 47% 123% 92% 72% 58% 40% 39% 66% 54% 90% depreciation expense.
Total liabilities less current assets Not greater Net financial liabilities ratio 5% (4%) 5% 6% 11% 9% 0% (13%) (15%) (24%) divided by total operating revenue than 60%
Council Net result divided by total operating Between 0% Operating surplus ratio (0.71%) (2.29%) 0.68% 0.51% 0.28% 0.48% 0.60% 0.95% 2.85% 3.96% revenue and 10% Capital expenditure on the replacement Greater than Asset sustainability ratio of assets (renewals) divided by 43% 49% 126% 86% 76% 59% 43% 41% 70% 52% 90% depreciation expense. Total liabilities less current assets Not greater Net financial liabilities ratio 12% 3% 14% 16% 23% 22% 14% 1% 1% (9%) divided by total operating revenue than 60%
Gladstone Regional Council's Financial Management Strategy
Council aims to operate within a set of conservative guide-posts to ensure we are financially sustainable in the short, medium and long term. As part of our financial strategy, we have adopted six key financial performance indicators to guide our financial health. The above three sustainability indicators that have been set by the Department of Local Government, Community Recovery and Resilience to help monitor the long-term sustainability of all councils across Queensland. Throughout the financial year, these financial and sustainability indicators are calculated and reported on monthly at Council meetings, as part of a full suite of financial reports. Should there be any deviation outside these parameters, the executive management and Council will be fully informed and may take corrective action as required.
Certificate of Accuracy For the long-term financial sustainability statement prepared as at 30 June 2020
This long-term financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the regulation).
In accordance with Section 212(5) of the Regulation we certify that this long-term financial sustainability statement has been accurately calculated.
______Mayor Acting Chief Executive Officer Matthew Burnett Mark Holmes
Date: ______/______/______13 11 2020 Date: ______/______/______13 11 2020
64 Page 196 OUR FINANCES Page 197 2019/20 Annual Report We’re committed to providing the community with access to inviting infrastructure, facilities and parklands. Gladstone Regional Council
INFORMATION ADDITIONAL STATUTORY
Gladstone Regional Council 2019/20 Annual Report Page 199 This section includes information that is important to our organisation and required by the Local Government Act 2009. You will find items about our business activities, right to information and a list of registers.
Gladstone Regional Council 2019/20 Annual Report Page 200 ADDITIONAL STATUTORY INFORMATION Page 201 as a business unit that Local Government Act 2009 2019/20 Annual Report Supplied by another local government under an agreement for conducting a joint government Supplied by another local government under an agreement for conducting activity; and financial year. For which the local government levied special rates or charges for the Water Sewerage Waste Management Plant Operations meets the threshold prescribed under a regulation. meets the threshold prescribed under is conducted in competition or potential competition with the private sector (excluding a is conducted in competition or potential Gladstone Area Promotion and Development Limited Gladstone Area Promotion conducts business in accordance with the key principles of commercialisation including clarity of conducts business in accordance with the key principles of commercialisation and competitive objectives, management autonomy and authority, accountability for performance neutrality. No Commercial Business Units were undertaken by Council in 2019/20. Council is required to disclose details of any joint local government activities, that is, action taken Council is required to disclose details of any joint local government activities, for, and expenditure on a service, facility or activity: • • Council did not undertake any joint local government activities in 2019/20. Joint Government Activity – s 190(1)(d) Commercial Business Unit – s 190(1)(c) A Commercial Business Unit is defined in the Public Benefit – s 46(1) Business Activities, Council did not undertake any public benefit As there were no new Significant assessments during 2019/20. LOCAL GOVERNMENT REGULATION 2012 A Significant Business Activity (SBA) is a business activity of a local government that: A Significant Business Activity (SBA) (a) or an activity related to the provision of library services); building certifying activity, a roads activity and (b) the following SBAs to which the Code of Competitive Conduct During 2019/20, Council undertook was applied: • • • • No new SBAs were undertaken in 2019/20. Significant Business Activities – s 45 Business Activities – Significant Beneficial Enterprises – s41 Beneficial directed to Council that Council considers is is an enterprise conducted by A beneficial enterprise government the whole or part of the local reasonably be expected to benefit benefitting and can area. in 2019/20: the following beneficial enterprises Council conducted - LOCAL GOVERNMENT ACT 2009 ACT LOCAL GOVERNMENT Gladstone Regional Council ADDITIONAL STATUTORY
Gladstone RegionalCouncil INFORMATION • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Council maintainsthefollowingregisters: List ofRegisters–s190(1)(f) • • • • • • • section 228(7).In2019/20,therewereseveninvitationtochangeatender: Section 190(1)(e)requiresCounciltoadvisethenumberofinvitationschangetendersunder Invitation toChangeTenders–s190(1)(e)- Register ofLocalLawProactive Patrols Register ofParkingPermit Register ofOvergrownand Unsightly Register ofImpoundedAnimals Register ofAbandonedVehicleImpoundment Register ofCats&Dogs Register ofAnimalImpoundment Register ofBiosecurityInvasivePlants Services) Act2003 Register ofLicencesUnderthePublicHealth(Infection ControlandPersonalAppearance Register ofLicencesUndertheFoodAct2006 Register ofStockimpoundment Register ofLicensing Register ofTradeWaste Register ofOnsiteSewerage Register ofBackflowPreventionDevices Register ofLegalDocuments Register ofInfrastructureCharges Council’s website) Register ofDevelopmentAssessmentApplications,ApprovalsandPermits(availableon Register ofLeases Register ofCouncilOwned/ManagedLand Register ofCouncillorComplaints(availableonCouncil’swebsite) Register ofCouncillorsrelatedpersons Register ofInterestsforCouncillors(availableonCouncil’swebsite) Register ofInterestsforCEOandSeniorExecutiveEmployees Register ofFinancialDelegations Register ofAuthorisedPersons Register ofDelegationsAuthority–CounciltoCEOandofficersand/orcontractors Register ofContactwithlobbyists Register ofLocalLaws(availableonCouncil’swebsite) Register ofCostRecoveryFees Register ofContractVariations Register ofNon-conformance Register ofOffers(Medium&largesizeprocurementsandsuccessfulawards) and sole/specialisedsuppliers; Register ofPreferredSupplierArrangements,Pre-QualifiedSuppliers,LongTermContracts Register ofAssets Register ofRoads Tender 78-20SewerandStormWaterRelining Tender 61-20AssetGrowthStrategies Tender 60-20VegetationClearing Tender 31-20TrafficControlServices Tender 30-20ProvisionofTrainingServices Tender 06-20ConsultantforInvestigationServices Tender 03-20/103-20GrindingofGreenWaste,PalletWasteandMattresses 2019/20 AnnualReport Page 202 ADDITIONAL STATUTORY INFORMATION Page 203 2019/2020 847,782.78 608,119.06 32,467.67 12,346,170.46 108,022.45 2019/20 Annual Report Category Pensioner Remissions Concessions Water and Sewerage Leak Concessions (under policy) Concealed Water General Rates Discounts Out of Policy Concessions Competitive Neutrality refers to the process of identifying and, where appropriate, removing any Competitive Neutrality refers to the may accrue to a local government business by virtue of its advantages (and disadvantages) that the business competes on the same basis as its competitors. Local Government ownership so that were received in 2019/20. No competitive neutrality complaints Competitive Neutrality Complaints – s190(1)(i)&(j) Competitive Neutrality Concessions for Rates and Charges – s190 (1)(g) – s190 Rates and Charges for Concessions categories: granted concessions in the following In 2019/20, Council Gladstone Regional Council Right to Information/ Information Privacy Applications Council is committed to providing the community with open and transparent access to information about Council services, activities and business operations.
In 2019/20, Council received the following requests for information under the Right to Information Act 2009 (RTI Act) and the Information Privacy Act 2009 (IP Act):
Application Type Received Withdrawn Finalised Access under the RTI Act 14 5 15 Access under the IP Act 1 0 1
Council works closely with the Office of the Information Commissioner Queensland and adhered to all statutory timeframes with respect to the above applications.
We are proud to connect, innovate and diversify our region. INFORMATION ADDITIONAL STATUTORY
Gladstone Regional Council 2019/20 Annual Report Page 204 ADDITIONAL STATUTORY INFORMATION Page 205 2019/20 Annual Report Gladstone Regional Council
APPENDICES
Gladstone Regional Council 2019/20 Annual Report Page 207 This section includes lists that provide easy access to specific information within the report. The glossary helps you to understand commonly used terms within the report. The Appendices also outlines how to contact Council and provide feedback to us.
Gladstone Regional Council 2019/20 Annual Report Page 208 Glossary of Terms Advocacy The act of supporting or arguing in favour of something, such as a cause, project or initiative. Annual Report Council’s detailed report on its performance over the fiscal year 01 July to 30 June as compared against our Corporate and Operational Plan. It includes statements about the council and staff, performance, finances, and disclosures required by legislation. Assessment Evaluation activities undertaken to determine level of performance. Asset A resource owned by Council which is used to deliver services to the Community. This includes things you can touch and feel like roads as well as those you can not like software programs. Audit This is a business improvement function established by Council to provide independent, objective assurance and consulting services designed to add value and improve the organisation's operations. It helps the organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness ofrisk management, control and governance processes. Best practice A method or procedure of accomplishing a business function process or outcome/result that is considered as being correct or most effective to all other known methods. Budget An estimate of costs, revenues and resources over a specific period, reflecting a reading of future financial conditions and goals for the organisation. Business Unit A division of Council’s organisation that holds particular responsibility for a range of services. Capital works A program of scheduled work including roads, wastewater, bridges. Chief Executive Officer The CEO is Council's highest ranking executive. Ci Anywhere A software platform that provides functionality, security and consistent operation on any device. Data being accessed is instantly available, live and accurate. Community The people living in and visiting the Gladstone Region including residents, ratepayers, business investors and visitors. Community The process of connecting council, citizens and communities on a wide engagement range of policy, program and service issues. It can be formal or informal and operates on the premise that the best decisions are made if those involved in the outcomes are considered. Community financial A report that is produced annually that offers commentary on Council's report financial results. Corporate Plan A document that sets out the goals and strategies over the medium term (five years). TheCorporate Plan will define how Council will meet its responsibilities to the Community and is a legislative requirement. APPENDICES
Our focus on diversification helps grow our region and expand opportunities.
Page 209 APPENDICES Gladstone RegionalCouncil Vision Strategic Planning Statutory Service Plan Reconciliation Action Project Policy scorecard Performance Outcomes Operational Plan Mission Mayor Regulation 2012 Local Government 2009 Local GovernmentAct Legislation Indicators Key Performance Initiatives Governance Framework Financial year Team Executive Leadership Culture Councillor 2019/20 AnnualReport working towards. An aspirationalstatement that describeswhattheorganisationis according tothevisionoutlined intheCorporatePlan.Itspansoneyear. A processthathelpsCouncil andthecommunityplanforfuture Required underlaworlegislation. A groupofrelatedactivitiescontributingtoacommon outcome. the GladstoneRegion. measures thatwillpositivelyinfluencereconciliation outcomeswithin Council’s strategicdocumentthatincludesarangeof practical forth toaccomplishit. resources. Ithasasingulargoalandspecificsetof operationsareput A temporaryendeavourthathasadefinedstartand end,scopeand of long-termgoals. the highestlevel,todirectandlimitanorganisation's actionsinpursuit A set of principles and associated guidelines formulated and enforced at information. An at-a-glancevisualdisplayofthemostimportantperformance results. or programandtheircomparisonwiththeintendedprojected Determination andevaluationoftheresultsanactivity,plan,process outcomes setoutinthe A 12-monthdocumentthatsetsouthowtoachievethedesired A declarationofanorganisation'scorepurpose. out ceremonialduties. on Councilbusiness,beingthespokespersonforandcarrying duties includerunningtheCouncilmeetings,workingalongsideCEO The headofCouncilelectedatlocalgovernmentelections.Mayoral Legislation describingtheboundariesforlocalgovernment. accountable, effective,efficientandsustainable. Queensland’s localgovernment.Itensuresgovernmentsare The principallegislationthatprovidesthelegalframeworkfor regulation 2012. Referring totheLocalGovernmentAct2009or measure progresstowardsorganisationalgoals/outcomes. Quantifiable measurementsthathelpanorganisationdefineand measurable timeframe. Specific projectsorprogramsundertakentoachieveobjectiveswithina accountable. is managedandcontrolled.ItencompasseshowCouncilheld How decisionsaremadeandimplementedaswellhowthebusiness to achieveanoutcome. A structurethatshowsthelinkagesbetweenvariousprocessesinorder July 2018to30June2019. The financialyearwearereportingoninthisreportistheperiodfrom1 Comprised oftheCEOandGeneralManagers. behaviours andourroutines. Defines whoweareasanorganisation,ourethics,institutions, Elected memberofCouncil Corporate Planandisalegislativerequirement. Page 210 APPENDICES Page 211 interim Safety Incident interim Safety System Management Indicators Key Performance Association Local Government of Queensland rate Lost time injury frequency Million Institute of Member, Australia Building and Islanders Native Aborigines Day Observance Committee Club Police Citizens Youth Queensland Gas Company Queensland Queensland Rail Road asset condition assessment system Reconciliation Action Plan Recreational vehicle Strategic Information, Communications and Technology Social Return on Investment Tondoon Botanic Gardens Workplace Health and Safety United Kingdom iSIMS KPIs LGAQ LTIFR M MAIB NAIDOC PCYC QGC QLD QR RACAS RAP RV SICT SROI TBG WHS UK Administrative Action Complaint Administrative Billion Beach Arts Music Business Boyne Tannum Arts and Community Association Incorporated Boyne Tannum Aquatic Recreation Centre District Central Business Chief Executive Officer Coastal Hazard Adaptation Strategy Connected Intelligence Anywhere Novel Coronavirus Central Queensland Conversation with Council Gladstone Area Promotion and Development Limited Gladstone Entertainment Convention Centre Global positioning system Gladstone Regional Council Hazard operations study Human Resources Institute of Internal Auditors 2019/20 Annual Report AAC B BAM BTABC BTARC CBD CEO CHAS Ci Anywhere COVID-19 CQ CwC GAPDL GECC GPS GRC HAZOP HR IIA List of Acronyms and Abbreviations Acronyms List of Gladstone Regional Council APPENDICES Gladstone RegionalCouncil List ofFiguresandTables Strategic Goal7 Strategic Goal7 Strategic Goal6 Strategic Goal6 Strategic Goal5 Strategic Goal5 Strategic Goal5 Strategic Goal4 Strategic Goal4 Strategic Goal3 Strategic Goal3 Strategic Goal2 Strategic Goal2 Strategic Goal1 Strategic Goal1 Strategic Planning Our Performance Our People Stat Info Our Leadership Stat Info Our Leadership Report Internal Audit Our Governance Our People Stat Info Our Councillors Our Team Overview Performance Our Report Section ofReport 2019/20 AnnualReport Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Table Figure Figure Figure Figure Figure Figure Table Table Table Table Figure Table Table Table Table Table Table Table Table Table Table Table Figure Figure Figure Figure Figure Figure Figure, Table Overall Progress–KPIs Overall Progress–Projects Overall Progress–KPIs Overall Progress–Projects Customer Insight Overall Progress–KPIs Overall Progress–Projects Overall Progress–KPIs Overall Progress–Projects Overall Progress–KPIs Overall Progress–Projects Overall Progress–KPIs Overall Progress–Projects Top VisitedEngagementProjects Overall Progress–Projects Strategic PlanningFramework Average DaysLostperInjury LTIFR andTRIFRComparison Workforce byGender Total Employees Overseas Travel Senior ManagementRemuneration Internal AuditReport Goals Our OrganisationalStructure Administrative ActionComplaints Councillor Meetings Community EducationFund Community CelebrationFund Regional EnhancementFund Connected CommunitiesFund Donations Mayor’s DiscretionaryFund Facilities Councillor ExpensesandProvisionof Overseas travel Councillor Remuneration Operational PlanProjects 5-year SummaryofCompleted Overall Progress-Diversify Overall Progress-Innovate Overall Progress-Connect Overall Progress-KPIs Overall Progress-Projects Name 94 94 88 88 85 82 82 76 76 70 70 64 64 60 58 55 50 50 50 50 49 49 46 44 43 42 41 40 40 40 40 40 38 38 37 37 12 12 12 12 12 12 Page Number Page 212 APPENDICES Page 213 98 98 104 104 106 114 116 117 117 118 120 120 121 121 121 121 122 122 122 122 123 123 137 138 Overall Progress – Projects Overall Progress – KPIs Overall Progress – Projects Overall Progress KPIs Overall Progress – Waste Strategy Priorities does the money come Revenue – where from? Expenses – where does the money go? Expenses – where What Council owns - Assets What Council owns What Council owns – Assets Property, What Council owns plant & equipment What Council Owes - Liabilities What Council Owes Operating Surplus Ratio Operating Surplus Operating Surplus Ratio Asset Sustainability Ratio Asset Sustainability Ratio Net Financial Liabilities Ratio Net Financial Liabilities Ratio Working Capital Ratio Working Capital Ratio Net Interest Coverage Ratio Net Interest Coverage Ratio Debt Service Coverage Ratio Debt Service Coverage Ratio Concessions for rates and charges Right to information/Information privacy Right to information/Information privacy applications Figure Figure Figure Figure Table Figure Figure Figure Figure Figure Table Figure Table Figure Table Figure Table Figure Table Figure Table Figure Table Table 2019/20 Annual Report Strategic Goal 8 Strategic Goal 8 Strategic Goal 9 Strategic Strategic Goal 9 Strategic Goal 9 Community Financial Report Other Stat Info Gladstone Regional Council APPENDICES Gladstone RegionalCouncil Legislative Index The annualreportforafinancialyearmustcontain— Particular resolutions financial reportfortheyear. The annualreportforafinancialyearmustcontainthecommunity Community financialreport The annualreportforafinancialyearmustcontain— Financial statements Requirement Local GovernmentRegulation2012 (1) Councillors (f) (b) (a) (d) (c) (b) (a) (e) (d) (c) (b) (a) The annualreportforafinancialyearmustcontainparticularsof— the numberofeach followingduringthefinancialyear— section 206(2). a listofanyresolutionsmadeduringthefinancialyearunder section 250(1);and a copyoftheresolutionsmadeduringfinancialyearunder statement. financial statementandthecurrent-yearsustainability the auditor-general’sauditreportsaboutgeneralpurpose year; and the long-termfinancialsustainabilitystatementfor financial year,auditedbytheauditor-general;and the current-yearfinancialsustainabilitystatementfor audited bytheauditor-general;and the generalpurposefinancialstatementforyear, each ofthefollowingduringfinancialyear— the totalnumberoffollowingduringfinancialyear— attended duringthefinancialyear;and the numberoflocalgovernmentmeetingsthateachcouncillor expenses reimbursementpolicy;and councillor duringthefinancialyearunderlocalgovernment’s the expensesincurredby,andfacilitiesprovidedto,each financial year;and superannuation contributions,paidtothecouncillorduring for eachcouncillor,thetotalremuneration,including (iii) (ii) (i) (iii) (ii) (i) 2019/20 AnnualReport for eachcouncillor;and a summaryofthedecision,orderorrecommendation made the councillors; inappropriate conductormisconductengagedinby eachof a descriptionoftheunsuitablemeetingconduct, recommendation mentionedinparagraph(d)wasmade; the nameofeachcouncillorforwhomadecision,order or section 150AR(1)oftheAct;and decisions, ordersandrecommendationsmadeunder orders madeundersection150AH(1)oftheAct; orders madeundersection150I(2)oftheAct; 185 184 183 Section 186 110 188, 193 Page 41 41 41 38 38 196 191 127 41 41 41 41 38 37 Page 214 APPENDICES Page 215 41-42 41-42 41-42 41-42 41-42 37 49 41-42 41-42 41-42 41-42 41-42 41-42 41-42 41-42 41-42 41-42 187 188 includes a person mentioned in section 150M of the Act. includes a person mentioned in section administrative action complaints made to the local government; administrative action complaints resolved by the local government under the complaints management process; administrative action complaints not resolved by the local government under the complaints management process; and matters, mentioned in section 150P(3) of the Act, notified to 150P(3) of the mentioned in section matters, Commission; the Crime and Corruption section 150R(2) of the Act; notices given under section 150S(2)(a) of the Act; notices given under the section 150W(a), (b) and (d) of decisions made under Act; by a recommendation referral notices accompanied 150AC(3)(a) of the Act; mentioned in section was given under section 150AF(4)(a) occasions information of the Act; another entity to occasions the local government asked 3, division 5 of the Act investigate, under chapter 5A, part inappropriate for the local government, the suspected conduct of a councillor; tribunal about the applications heard by the conduct alleged misconduct of a councillor. complaints referred to the assessor under section 150P(2) assessor under section referred to the complaints the local entities for Act by local government (a) of the government; 2019/20 Annual Report (i) (ii) (iii) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (i) the number of the following during the financial year— a statement about how the local government has implemented a statement about how the local government including an assessment its complaints management process, of the local government’s performance in resolving complaints under the process. the number of administrative action complaints under paragraph (a)(iii) that were made in a previous financial year. for a local government employee—the name of, and position held by, the local government employee; a statement about the local government’s commitment to a statement about the local government’s complaints; and dealing fairly with administrative action for a councillor—the name of the councillor; a councillor of the local government; government. the chief executive officer of the local the local government; The annual report must also contain particulars of— The annual report for a financial year must contain— The annual report for a financial year about any The annual report for a financial year must contain the following information an official capacity overseas travel made by a councillor or local government employee in during the financial year— In this section— councillor following— local government entity, for a local government, means the (a) (b) (b) (b) (a) (a) (b) (c) (a) (2) (1) Overseas travel (1) Administrative action complaints (2) Gladstone Regional Council APPENDICES Gladstone RegionalCouncil (2) (1) Other contents The annualreportforafinancialyearmustcontainsummaryof— Expenditure ongrantstocommunityorganisations (2) (j) (i) (h) (g) (f) (e) (e) (d) (c) (c) (b) (a) (d) (c) (b) (a) (b) (a) contains thefollowinginformationforpreviousfinancial year— annual operationsreport In thissection information— The annualreportforafinancialyearmustcontainthefollowing the overseastravellocalgovernmentconsidersrelevant. The annualreportmayalsocontainanyotherinformationabout complaints undersection52(3). the QCA’srecommendationsonanycompetitiveneutrality the localgovernment’sresponsesinfinancialyear on under section49forcompetitiveneutralitycomplaints; a summaryofinvestigationnoticesgiveninthefinancialyear the reportoninternalauditforfinancialyear; the localgovernment; a summaryofallconcessionsforratesandchargesgrantedby a listoftheregisterskeptbylocalgovernment; 228(7) duringthefinancialyear; the numberofinvitationstochangetendersundersection the costofoverseastravel. the purposeofoverseastravel; the destinationofoverseastravel; particulars oftheimpact changeshadontheunit’s— performance planfortheprevious financialyear; particulars ofanychanges madetotheunit’sannual performance plan; operations, includingacomparisonwiththeunit’sannual information thatallowsaninformedassessmentofthe unit’s details ofanyactiontakenfor,andexpenditureon,aservice,facilityoractivity— an annualoperationsreportforeachcommercialbusinessunit; performance inthefinancialyear; assessment ofthelocalgovernment’soperationsand particulars ofotherissuesrelevanttomakinganinformed corporate planandannualoperationalplan; government’s progresstowardsimplementingits5-year the chiefexecutiveofficer’sassessmentoflocal including— expenditure fromeachcouncillor’sdiscretionaryfund, grants tocommunityorganisations;and the localgovernment’sexpenditureforfinancialyearon (ii) (i) (i) (ii) (i) 2019/20 AnnualReport charges forthefinancialyear; for whichthelocalgovernmentleviedspecialratesor for conductingajointgovernmentactivity;and supplied byanotherlocalgovernmentunderanagreement financial position;and the amountandpurposeofallocation. amount wasallocatedfromthefund;and the nameofeachcommunityorganisationtowhichan , foracommercialbusinessunit,meansdocument that 190 189
203 203 203 202 202 201 201 37, 49 37, 49 37, 49 37, 49 N/A N/A N/A N/A 201 11-12 9 38 38 38 38-40 Page 216 APPENDICES Page 217 N/A N/A 201 201 201 201 201 204 N/A 201 46 41 45 operating surplus or deficit; and surplus or deficit; operating 2019/20 Annual Report (iii) prospects; (ii) particulars of any directions the local government gave the unit. the local government of any directions particulars the business activities that the local contain a list of all during the financial year; government conducted activities that are significant business identify the business activities; and was the competitive neutrality principle state whether or not activities, and if the principle applied to the significant business was not applied; and was not applied, the reason why it business activities were not state whether any of the significant year, i.e. whether there are conducted in the preceding financial any new significant business activities. (d) (a) (b) (c) (d) The local government must conduct a public benefit assessment of the The local government must conduct new significant business activity. the Information Privacy Act Right to Information Act 2009 and 2009 Right to Information Local Government Act 2009 Local Government year must annual report for each financial A local government’s local government the beneficial enterprises that the contain a list of all the financial year. conducted during year must— annual report for each financial A local government’s Gladstone Regional Council APPENDICES Gladstone RegionalCouncil 2pm to5pm Open MondaytoFriday-9am to1pmand Ph: (07)49751205 47 RaglanStreet,MountLarcom Mount LarcomRuralTransactionCentre (cashiers closeat4.45pmdaily) Open MondaytoFriday–8.30am5pm Ph: (07)49700700 41 BlomfieldStreet,MiriamValeQld4677 Miriam ValeOffice (cashiers closeat4.45pmdaily) Open MondaytoFriday-8:30am5pm Ph: (07)49700700 101 GoondoonStreet,GladstoneQld4680 Gladstone Office (cashiers closeat4.45pmdaily) Open MondaytoFriday-8:30am5pm Ph: (07)49758105 3 DonCameronDrive,CalliopeQld4680 Calliope LibraryandTransactionCentre (cashiers closeat4.45pmdaily) Open MondaytoFriday-9am5.30pm Ph: (07)49719700 Cnr Wyndham&HayesAvenues,BoyneIsland Boyne TannumCommunityCentre (cashiers closeat4.30pmdaily) Open MondaytoFriday-9am4.30pm Ph: (07)49021515 71 SpringsRoad,AgnesWater Agnes WaterRuralTransactionCentre Visit Us Get inTouch 2019/20 AnnualReport www.relayservice.com.au Internet relayusers: Type andListen:133677 Speak andListen:1300555727 Relay Service: contact CouncilthroughtheNational For hearingandspeechdifficulties Phone us: www.gladstone.qld.gov.au/contact-us Check outourWebsite Email us:
[email protected] 0749700700
3. 2. 1. different ways: You canforwardyourfeedbackinthree the feedbackforminsidebackcover. You canwritetousinyourownstyleoruse like toseeit?Letusknowwhatyouthink. the informationyou’dliketoseeinawayyou reflects yourregion?Doesthereportgiveyou report. Haveweproducedareportthat We wanttohearyourthoughtsaboutthis Annual ReportFeedback request. above orvisitthewebsiteandmakeanemail Please callCouncilonthenumberlisted of theAnnualReport? Would youlikeacopy Gladstone DCQLD4680 PO Box29 Gladstone RegionalCouncil The ChiefExecutiveOffice Send mailto: left Drop offtoCouncilcentreslistedthe Report, or information abovewithsubject:Annual Email totheaddresslistedingeneral
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Page 218 APPENDICES Page 219 student contractor/supplier local business investorbusiness other difficult to follow? member of a community group member of a sporting group member of an environmental group developer local resident acceptable?
2019/20 Annual Report Email to the address listed in general information above with subject: Annual Report, or subject: Annual Report, above with in general information address listed Email to the 152 listed on page to Council centres Drop off Send mail to: The Chief Executive Office The Chief Executive Gladstone Regional Council Gladstone Regional PO Box 29 4680 Gladstone DC QLD government body (State) government body (Federal) easy follow? to government body (Local) government member of a financial group customer
Feedback Form Feedback 1. 2. 3. My main interest in the report is as a: My main interest Do you have any other comments or suggested improvements for the report? Do you have any other comments or suggested improvements Was there anything else you would have liked included in the report? Was the report structure: the report? What did you enjoy most about Gladstone Regional Council APPENDICES Gladstone RegionalCouncil Index ISO55001 Investment decision framework Internal Audit Corporate Plan Code ofConduct Strategy (CHAS) Coastal HazardAdaption CEOs message Cassey LilyLivesSkatePark Incident reporting Injury Managementand History ...... Handwashing 105, 113,115,128,133,140,143,144 Grants Council Committees Councillors Capital Works Calliope ...... Budget Recreation Centre Boyne TannumAquatic Boyne Tannum Bonsai exhibition Biodiversity . Awards ...... Committee (ARIC) Audit, RiskandIntegrity Asset sustainabilityratio 172, 174,176,178,179,202 14, 92,113,117,129,133,153,155-163,170, Assets Agnes Water Administrative ActionComplaint Footpath and Risk Finance Governance Executive Leadershipteam Employee engagement Community engagement and Events Community Development Employee Customer Service 43, 48,84,138,139,145 Customer Experience 136, 142,145,148,150,169 80, 81,86,92,96,103,108,120,123,134- 8, 9,17,20,21,59,60,62,68,71,72,74,77, COVID-19 . Community events Economic Recovery Strategy Economic Development Ecofest Debt servicecoverage ...... 2019/20 AnnualReport ...... 43,48,77,78,138,139,145 ......
...... 31-35,37,38,41,43,59 ......
......
43,48,138,139,145 ......
......
...... 25,50,75,81 46,78,80,81 16,63,66,89 8,25,99,103 ...... 13,121,191 9,25,71,75 36,80,81 17,25,69 17,68,69 43,45,46 38,59,60 111,112 25,109 63,64 25,92 41,42 21,60 24,55 43,47 59,60 17,68 15,82 31-35 122 14 26 66 89 15 13 50 62 25 9 8
Youth Council Working capitalratio Water meters Wastewater Waste Management Virtual NeighbourhoodCentre Vaccinations Tondoon BotanicGardens Trainees Statutory Information Statement ofcashflow community equity Statement ofchangesin Statement offinancialposition 110, 114,133,136,176 Statement ofcomprehensiveincome 43, 47,138,139,145 Strategy andTransformation Strategic Planning and Technology(SICT) Strategic InformationCommunication Strategic AssetPlanning 43, 47,89,138,139,145 Strategic AssetPerformance Cassey LilyLivesSkatePark Skate Park,seealso RV Strategy Rise Up...... Risk Management Reconciliation Actionplan Rates 43, 48,75,138,139,145 People CultureandSafety Families Precinct Philip StreetCommunitiesand Operations ...... Operational Plan Operating surplusratio Net interestcoverageratio 14, 113,121,188 Net financialliabilitiesratio National Reconciliationweek NAIDOC ...... Mount Larcom Miriam Vale Measures ofsustainability Mayors Message Luminous 36, 37-41,49,120,133,191 Local GovernmentRegulation2012 36, 37,41,49,57,111,133,137,201 Local GovernmentAct2009 11, 12,56,57,64,70,76,82,88,94,98,104 Key performanceindicators(KPIs) ...... 113,115,128,140,176,179 ......
...... 106,141,182,201,202 ...... 8,9,17,25,60,61,63 ......
. 43,47,138,139,145 ...... 8,9,16,22,23,68 ......
...... 113,120,191 11,24,55,72 9,18,19,61 ...... 46,67,93 16,50,73 ...... 110,119 110,119 ......
13,65 37,49 20,80 63,64 15,21 17,61 122 110 122 110 89 17 21 15 55 43 17 44 16 59 13 8
Page 220 Acknowledgements
Council thanks those who supported the development of this year’s Annual Report. It is so important to us that we produce a high quality report and your help makes that possible.
Gladstone Regional Council 2019/20 Annual Report Page 221 PO Box 29, Gladstone Qld 4680 Phone: 4970 0700 Email: [email protected] www.gladstone.qld.gov.au