GOVERNANCE

COMMUNITY

Annual Report | 2012/13

BUILT ENVIRONMENT

NATURAL ENVIRONMENT

ECONOMY Goals, outcomes and strategic actions Our Facts

By referencing this table and following the colour coded tabs, readers are able to see at a glance Council’s outcomes throughout 2012/13 across the five key goals of Community, • Toowoomba Regional Council is the ninth largest Governance, Built Environment, Natural Environment and Economy. Local Government area (LGA) in population (157,695 Leave this tab open while browsing the Annual Report. persons) of the 74 Queensland LGAs, following COMMUNITY Brisbane, the Gold Coast, Moreton Bay, the Sunshine Coast, Logan, Townsville, Cairns and Ipswich. A safe, healthy and equitable community, enjoying a quality lifestyle. • Population projections to the year 2031 show that Opportunities for creative expression, cultural exchange the TRC area’s population is expected to increase by and life long learning are accessible community wide. 86,645 persons – or an average annual growth rate of 2.0% – to a population of approximately 244,340 A community involved in sport and recreational activities. persons. By comparison, the forecast growth for The Toowoomba region has high-quality environmental Queensland is 1.8% per annum over the same period. health standards. • TRC covers 12,973 sq km, with more than 10,000 kms A community that is safe, friendly, resilient and informed. of road infrastructure.

Our communities value and share cultural diversity • The region’s major enterprises include and intergenerational knowledge and skills. manufacturing, health and community services, retail and agriculture. The region supports the junctions of GOVERNANCE major highways from Brisbane, Sydney, Melbourne and Darwin, and is just a 90-minute drive from the A well-governed Council respecting community values. State’s capital, Brisbane.

An organisation centred on good governance and community • The wider TRC area contributes approximately 3.1% participation. to the gross state product of Queensland (or better Efficient, effective and responsive Council service delivery. than $7.8 billion) per annum.

A well-managed and efficient organisation centred around an • The most recent ABS Australian Business Register appropriate corporate culture. indicated there were 14,510 business entities registered in the TRC area (in 2012).

BUILT ENVIRONMENT • The estimated number of employed persons in the Well-managed and integrated regional growth. TRC area was 77,887.

Planning and development for regional growth and change • According to population forecasts, the average age is based on sustainability principles, cultural heritage and of residents of the TRC area is expected to increase community engagement. from 37.0 years in 2010 to 41.3 years in 2031, a rise Toowoomba region has a well-planned, safe and functional of 4.2 years. By comparison, the average age for transportation system. Queensland was 36.7 years in 2010, rising by 4.3 Toowoomba region’s infrastructure networks and assets years to 41 years by 2031. are developed and maintained in a coordinated and integrated manner. • Between 2010 and 2031, there will be an anticipated increase in the total population share NATURAL ENVIRONMENT of the TRC area in all age brackets from 55 years A highly-valued, diverse, liveable and older. The 70-74 years age group is expected and sustainable environment. to record the largest increase in proportional population share between 2009 and 2031 (up 1.7 The region has an accessible network of green spaces and its land and water assets are conserved and managed. percentage points), followed by the 75-79 years (up 1.5 percentage points) and 85 years and older The Toowoomba region has a safe and sustainable water network. age brackets (up 1.4 percentage points).

The Toowoomba region is climate change responsive.

The Toowoomba region’s environment is managed to minimise degradation.

ECONOMY A dynamic economy providing employment and opportunity.

Toowoomba region has a strong economy fostering innovation and diverse business opportunities recognising Toowoomba as the key regional service centre. Our Council

Our Report Population 157,695(June 2012) Throughout this Annual Report a number of symbols have been used to identify key service delivery areas. Each symbol will correspond with a certain area within the community Employed residents and Toowoomba Regional Council, making it easier to use this document to understand the organisations performance over the reporting period. 77,887 Our Future Gross regional product

The Toowoomba Regional Council is working to make this $7.813Billion part of Queensland an even more enjoyable place to live and work. Our long term plan for creating a better future, forged from the contributions of local residents, businesses and Customer Service Centre organisations, is based on our Vision, first articulated within the Corporate Plan approved by Council on 16 June, 2009: First call resolution:

The Toowoomba Regional Council area is a vibrant, culturally diverse, environmentally rich and economically 97.51% dynamic region that embraces the future while respecting the past. Estimated Population Growth: This is our vision for an area that boasts extraordinary potential – promising employment opportunities, affordable 2016 2021 2026 2031 housing, extensive health and community services, education facilities and countless sporting and cultural pursuits. 180,052 198,592 220,570 244,340

The Toowoomba region – the best of city and country. (Source Toowoomba Regional Council Economic Profile January 2013)

Our Mission Resident Demographic Overview: (2011 Census) AGE GROUP PERCENTAGE (In Years) OF POPULATION Working with the community, Toowoomba Regional Council will lead with good governance and sustainable practices to 0 -17 26.7% achieve the vision. 18-24 8.7% 25-34 11.8% 35-49 19.3% 50-59 12.5% 60 + 21% Mayor’s Messagee

I am proud to commend this Annual Report to the that as more and more people decide to make our region community as testament to the hard work and their home, we are well placed to manage future growth professional service delivery provided by the staff and and development. the elected representatives of the Toowoomba Regional Council throughout the 2012/2013 period. The development of a new jet-capable airport to the west of Toowoomba, together with this Council’s successful This past year has been characterised by three clear lobbying of the Federal Government for funding to objectives – opening this region to business opportunity, complete the Toowoomba ByPass are clear indications of greater and more meaningful engagement with the investor confidence and prudent planning for the region’s community living within this region, and increased infrastructure. community service in the way we go about delivering our core responsibilities. Our experiences in speaking with community members as part of our Councillor Engagement Sessions have been During this period Council has continued the recovery positive. The opportunity to hold meaningful discussions work following the 2010/2011 floods and the Australia Day on issues of local importance is a valuable one. flooding that occurred this year. These events resulted in damage to our road network of an unprecedented scale Council has underlined its commitment to community and the efforts required to fix that damage, as well as take engagement through the enhancement of our steps to make these networks more resilient to future Community Liaison Officer program – in essence providing flooding events, have been enormous. the conduit for residents to raise concerns or put forward their ideas in a recorded, manageable way that can then Council has been working with the community and be discussed in open forums in our regional centres. business owners to plan for the future of the Toowoomba CBD – with many works already begun and more to come We are well placed for the future. Together, we can in the near future. The overhaul of Clifford Street as part build on our very proud history and ensure the coming of the broader Outer Circulating Road will provide visitors generations’ success. and residents alike with the means to move into and out of the city easily and quickly for decades to come – essential works considering our estimated population growth over the coming twenty years.

The introduction of the one region-wide planning scheme, replacing the eight schemes from the previous Shires making up the amalgamated regional Council, ensures Paul Antonio

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 1 Our Region

The Toowoomba Regional Council covers an area rich in The estimated Shire population at 30 June 2006 was Australia’s pioneering spirit. From the early 1800s, when 14,650, growing at an average rate of 2.4% per annum. explorers first set their eyes upon the fertile land, it was destined to become one of Australia’s rural heartlands On the national arterial Gore Highway, the former and give birth to the vibrant city of Toowoomba and Millmerran Shire is a picturesque and scenic 80km many other towns. Over the past two centuries the drive south west of Toowoomba, boasting a diverse region has continued to attract new residents and grow range of rural primary production enterprises from to become an integral part of Queensland. traditional grazing through to fish farming, cotton to broccoli production, piggeries and egg farms and even Following amendment to the Local Government Act of Geraldton wax flowers and olives together with organic 1993 and based on the recommendation of the Local farming, cereal grains to timber. Nestled in the rich Government Review Commission Report of 2007 the agricultural area of the Condamine and Macintyre River then State Government ordered amalgamation of eight catchments, Millmerran remains a powerhouse of the local Shires into the one Toowoomba Regional Council, Darling Downs. with effect from the local government elections of 15 March, 2008. The former Pittsworth Shire is strategically located on the national Gore Highway 43 kilometres south west of The legacy of previous local governments within Toowoomba, with an area of 1,087 square kilometres our region is a commitment to service, and to local and a population of 5,000. The region enjoys agriculture connections. For newly arrived visitors, we are proud to as the dominant industry, with the famous richness of give a brief account of ourselves, through the voices of the black soil floodplains. our previous Shires. Rosalie Shire has served as the bridge between Cambooya Shire was located on the eastern Darling the Darling Downs and South Burnett regions of Downs in Queensland bordering the southern boundary Queensland for decades. Located to the west of of Toowoomba City, and also sharing borders with Toowoomba, and sharing borders with Nanango, the pre-amalgamation Shires of Clifton, Jondaryan, Crows Nest, Cambooya and Jondaryan the region Pittsworth and Gatton. covers an area of 2,303sq km.

The estimated Shire population at 30 June 2006 was The City of Toowoomba is well known for its exciting 5,935, growing at an average rate of 3.3% per annum – history as well as its parks, gardens and scenic views. the fastest growth rate of any Darling Downs Shire at This prosperous University City is set 700 metres above the time. sea level, on the edge of the Great Dividing Range, strategically located at the junction of major highways The Shire of Clifton was originally constituted a Divisional from Brisbane, Sydney, Melbourne and Darwin and just Board in 1879 and in 1903 the Clifton Shire Council was 90 minutes drive from the state’s capital, Brisbane. created. Situated half way between Toowoomba and Warwick on the wide fertile plains of the Darling Downs, Together, these eight former local authorities form Clifton is a quiet shire welcoming visitors with country the Toowoomba Regional Council as we, as a hospitality and a relaxed atmosphere. community, look to the future and imagine what we might achieve together. The former Crows Nest Shire stretches some 100kms along the New England Highway two hours northwest of Brisbane and just north of Toowoomba. The area offers striking scenery and breathtaking views with intriguing mix of natural and cultural attractions, and Toowoomba Regional takes its’ name after an indigenous man called Jimmy Council Boundary Map Crow, who lived in a hollow tree near the present police station. Timber hauling bullock teams would stop in this area overnight and Jimmy Crow used to give them directions. There is a 6ft statue of Jimmy Crow in Centenary Park, Crows Nest to honour this legend.

Jondaryan Shire was located on the eastern Darling Downs bordering the western boundary of Toowoomba City, and also sharing borders with Cambooya, Rosalie, Millmerran, Wambo and Pittsworth.

2 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Contents

Mayor’s Message 1 Infrastructure Services 37 Construction and Maintenance 37 Our Region 2 Transport and Drainage 39 Our Council 4 Project Services 40 Our Organisation 8 Plant and Fleet 40 Open for Business 11 Water and Waste Services 41 ByPass Forum – Highlighting our needs in Canberra 12 Water Operations 41 Revitalising the CBD – Preparing for the future 13 Strategy and Coordination 42 Library Facilities Strategy 2012-31 14 Water Infrastructure Services 42 Toowoomba Arts Link 15 Water Project Services 43 Toowoomba Regional Arts and Community Waste Services 43 Centre – Developing the Arts 15 Finance and Business Strategy 45 NDRRA flood recovery program 16 Financial Services 45 Councillor Engagement Sessions – Information, Communications and Technology 46 Face to face with the community 17 Customer Service 47 Community Liaison Officers – People and Organisational Development 48 Working for the community 19 Stakeholder Engagement and Communication 50 Video Calls – Bringing Council into the home or business 20 Governance 51 Greater communication – Listening to our staff 21 Legislative Information 53 Up for it – Volunteers making it happen 22 Council News – Telling our story 23 Community Financials 63

Council Business 25 Financials 69 Environment and Community Services 25 Tourism and Events 25 Library and Cultural Services 26 Community Development and Facilities 27 Parks and Recreation Services 28 Environmental Health Services 29 Property Services 31 Planning and Development Services 33 Development Assessment 33 Building and Compliance Branch 34 Strategic Land Use 35

The cover used for this report is manufactured using low environmental impact FSC accredited pulps and is EFC free (elemental chlorine free).

The inside pages used for this report are made with 100% recyclable post-consumer waste and is Carbon Neutral.

ISSN – 2203-1545

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 3 Cr Paul Antonio Cr Mike Williams Toowoomba Regional Council Mayor Paul Antonio was Deputy Mayor Cr Mike Williams is chair of the Finance and born in Toowoomba and grew up on his family farm in Business Strategy Committee. He served as a councillor the Millmerran district. and head of the Financial and Sporting Services portfolio in Council’s previous term. Paul was educated at the local one teacher school before attending the Queensland Agricultural College, Prior to Local Government amalgamations he was Deputy graduating with a Diploma of Agriculture before Mayor of the former Cambooya Shire Council. Cr Williams has lived in the Cambooya shire for over 30 years including commencing his farming career. He is a Fellow of the eight years as a councillor in that area. Australian Institute of Company Directors. He and his wife Jo-Anne have run the successful Mike Previously, Paul served as Deputy Mayor of the Williams Country Clothing business for over 20 years. He Toowoomba Regional Council in its’ first amalgamated and his family also breed and train horses at their Hodgson term, and as Mayor of Millmerran Shire Council for eight Vale farm and compete in show jumping and polocrosse. years having served continuously from 1982-2008. He was Deputy Mayor of Millmerran from 1997-2000. Councillor Antonio is a former foundation board member of the Condamine Alliance, former deputy chair of the Darling Downs Regional Organisation of Councils and former board member of the Qld Fire and Cr Sue Englart Rescue Authority. Cr Sue Englart was elected to Toowoomba Regional Paul is joint patron of the Toowoomba Rugby League, Council at the 2012 elections. She leads the Environmental patron of the Toowoomba Eisteddfod, the local Motor Health and Parks and Recreation portfolio, assisting the Neurone Association and the Darling Downs Sailing Chair of the Environment and Community Committee. Club. He is also a White Ribbon Ambassador. Cr Englart was elected to Toowoomba City Council at Councillor Antonio continues his interest in the family her first attempt in 1997 and was re-elected to Council in farming operation west of Millmerran which concentrates 2000 and 2004 during which time she took a particular on producing Angus beef and growing grain. interest in environmental matters and heritage values. Sue Englart (nee O’Connor) was born and educated in Toowoomba. She attended Holy Name School and St Saviour’s College. Her families were early settlers in Toowoomba, Cabarlah and Clifton. She grew up in Mort Estate. Cr Bill Cahill Cr Bill Cahill was elected to Toowoomba Regional Council for a second term. Cr Cahill chairs the Planning and Development Committee and led the Environment and Community Services portfolio in his previous term. Cr Anne Glasheen Cr Anne Glasheen is serving her second term on Prior to Local Government amalgamations in 2008, Toowoomba Regional Council. She heads up the Customer Cr Cahill was a councillor on the former Crows Nest Services Portfolio, assisting the Chair of the Finance and Shire Council. Business Strategy Committee. Some aspects of her role on Council includes Community Engagement , Chair of the Cr Cahill brings technical and corporate management Pest Management Advisory Committee and COMSEQ Rural skills, as well as small business experience, to his role Taskforce Committee. as councillor. Anne also sits on the Darling Downs Moreton Rabbit Board. He is actively involved in voluntary roles with She was Deputy Mayor of the Former Clifton Shire Council prior to Local Government Amalgamations in 2008. She was community organisations and has been a member of born in Allora and has more than 20 years’ experience in the Darling Downs Regional Organisation of Councils. Local Government. Bill is a former panel member on a State Ministerial Anne has served a number of terms on two government Regional Community Forum for the Darling Downs boards at a National and State level. Her contribution to one and South Western Region. Currently, he is the of these committees saw her awarded with Life Membership Federal/ State appointment as the Chair of Regional of the Australian Local Government Women’s Association. Development Australia (RDA) for the Darling Downs She serves on a number of Community Committees in and South Western Region. executive positions and has just received a 10 year long service award with the Clifton Local Ambulance Committee. Cr Cahill and his wife Kim have two children. He is also the very proud Poppy to his two little grandsons and Anne and her husband were local business operators for more than 25 years. In her spare time Anne enjoys maintains an interest in classic cars and visual arts. motorcycle riding , participating in the Red Hatters Society and dog grooming.

4 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Our Council

Cr John Gouldson Cr Geoff McDonald Cr John Gouldson was elected to Toowoomba Regional Cr Geoff McDonald was elected to Toowoomba Council in 2012. He chairs the Water and Waste Committee. Regional Council in 2012. He chairs the Environment and John served as a Toowoomba City Council Alderman from Community Committee and is Portfolio Leader for Tourism 1986 to 1993. and Events together with Property. Born in Allora, he grew up on a farm at Goomburra and Born and educated in Toowoomba, Geoff is a fifth completed high school at Warwick. He graduated from generation business owner with his parents John (Cracker) Teacher Training College / University of Queensland and and Joan McDonald and wife Lisa, operating Cracker Print taught in Brisbane and Mt Isa from 1965 to 1969. and Paper which has a trading history that traces back to John moved to Toowoomba in 1970 and taught at 1901. Geoff was awarded the Queensland Printing and Harristown State High School between 1970 and 1974, Graphic Arts Apprentice of the Year in 1992 on graduating Toowoomba State High School from 1975 to 1978 as a Pre-Press tradesman. and was Regional Physical Education Officer from 1979 An immediate past president and Life Member of the to 1989. Toowoomba Chamber of Commerce and Industry Geoff Resigning from the Department of Education in 1990, is actively involved in a diverse range of organisations John has since been a Financial Planner with Dornbusch including Chair of Safer Toowoomba Regional Partnerships, Partners. John and his wife Kathy have two sons and director for Southern Queensland Country Tourism and six grandchildren. director for Sports Darling Downs Inc.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 5 Cr Ros Scotney Cr Nancy Sommerfield Cr Ros Scotney is serving her second term on the Cr Nancy Sommerfield leads the Water and Waste Projects Toowoomba Regional Council. She leads the Facilities, portfolio, assisting the Chair of the Water and Waste Libraries and Cultural Services portfolio assisting the Chair Committee. of the Environment and Community Committee. Nancy is a former Development Coordinator at Previously, Cr Scotney served on the Pittsworth Shire Downlands College. From Cunnamulla, where she was a Council for 14 years, including 10 years as mayor. partner in a family farming and grazing entity, Nancy and A fourth generation resident of Pittsworth, Ros was her family moved to Toowoomba 20 years ago to educate elected to Toowooomba Regional Council following her children Asti and Todd. amalgamation in 2008. As part of her transition from the west she developed Cr Scotney remains a highly active member of her a marketing career in the health and education sectors community, holding executive positions on several and involved herself in many community organisations committees. Her involvement has included five years including the Toowoomba Chamber of Commerce and as President of the Pittsworth Chamber of Commerce, the YWCA. and continuing involvement in Rotary, including her appointment as a Paul Harris Fellow. In her spare time Nancy enjoys doing maintenance Ros was educated at the Ipswich Girls Grammar School around her home, gardening around her home, enjoying before becoming a dental nurse for 23 years. Her business watching her grown up children as they carve their own interests include breeding and racing thoroughbred lives and supporting the community. horses, residential and commercial property interests and producing boer goats.

6 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Cr Chris Tait Cr Carol Taylor Cr Chris Tait was elected to Toowoomba Regional Council Cr Carol Taylor was re-elected to Toowoomba Regional in 2012. He leads the Development Assessment portfolio, Council for her second term. She continues her assisting the Chair of the Planning and Development involvement with infrastructure services by chairing the Committee. Infrastructure Committee. Cr Taylor was the last Mayor of the former Cambooya Shire Council, having been a Cr Tait has extensive legal experience with 35 years as a councillor since 2000. Her previous roles have included solicitor in a large regional legal firm, the last 14 years as being vice-president of the Australian Local Government senior partner. Women’s Association, Queensland branch. He also brings previous Local Government experience to Her current roles include: Toowoomba Regional Council’s Council, having served as a Councillor with the Jondaryan representative on Council of Mayors South East Queensland Shire Council from 1989 to 1998, the last three years as Infrastructure Committee; and Chair of the Eastern Downs deputy mayor. Regional Road Group (The Roads Alliance Qld). His community involvement includes service clubs, Cr Taylor is also Chair of the Regional and Active Public including terms as President of Apex and Rotary, other Transport Advisory Committee, Chair of the Toowoomba community clubs and a school board. Chris is married to Aerodrome Advisory Committee and a member of Jane and has two adult children. Toowoomba Regional Development Committee for the Pyjama Foundation. Cr Taylor is also Patron of the Kiyua Performing Arts Group. Cr Taylor and husband Roger have a daughter and son and two grandchildren.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 7 Our Organisation

including Manager of Health and Director of Community Chief Executive Officer and Environmental Services at Toowoomba City Council Brian Pidgeon has over 30 years and subsequently General Manager Community and experience in local government, Environmental Services Group with the Toowoomba as well as extensive management Regional Council following amalgamation. experience and professional qualifications in environmental health. He has previously worked at Ipswich City Council in various He was appointed as Acting Chief Executive Officer in environmental health roles and as a manager of waste September 2012, a position he has subsequently undertaken services. Brian has three children and is an avid motor as a fulltime appointment. He has held previous roles sports enthusiast.

Arun brings to Council a background in finance, strategic General Manager business planning and stakeholder management in Finance & Business Strategy government and quasi-government sectors. Arun Pratap is charged with charting Most recently, he was Executive General Manager Corporate the future financial sustainability of and Stakeholder Management with the Queensland Bulk Council. The Finance and Business Water Authority. Prior to that, he was Chief Financial Officer Strategy Group consists of Financial with the former Caboolture Shire Council. Services, Information and Communication Technology Services, People and Organisational Development, Arun’s particular expertise is in implementing and Stakeholder Engagement and Communication and integrating asset management systems into longer-term Customer Services branches. financial planning and service delivery.

Prior to joining Toowoomba Regional Council in September General Manager 2011, Mike was employed with Brisbane City Council as Infrastructure Services Manager Civil, and Acting Manager Asphalt Operations Mike Brady brings almost 30 years of Group for Brisbane City Works. engineering, management, design and construction experience in He also acted in a number of senior roles in council’s City government and the private sector Business Division and as part of Brisbane City Council’s to Council. Most of his career has been spent in Local Water Resources team assisting in the recovery from the Government in both New South Wales and Queensland as January 2011 flood. Mikeand his wife Amanda have three well as senior roles in Queensland Main Roads. teenage children.

8 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL General Manager plans, urban master plans and feasibility studies. Planning & Development Services Stewart has also been involved in master planning projects in China, involving detailed programming, resource Stewart Somers has worked since planning, budgeting and ongoing project performance the early 1970s as an urban planner and senior manager in Local and analysis. Stewart has a Degree in Planning, a Diploma in State Government organisations, Town Planning from RMIT University and a Masters Degree and as a consultant to the private and public sectors in in Business Administration from Griffith University. Qld, Victoria, NSW, South Australia and Yanchi (China). He is married with three grown-up children who live in He has coordinated and managed multi-disciplinary Melbourne. He is responsible for Development Assessment professional teams on diverse projects such as environmental Urban, Major Regional Projects, Building and Compliance impact studies for major projects, strategy plans, structure and Land Use Planning.

Council in 1989 as Senior Engineer Water Supply and General Manager Sewerage and was promoted to Deputy City Engineer Water & Waste Services in 1990. He was appointed to the position of Director of Kevin (Kev) Flanagan has worked Engineering Services in September 1999. in the Local Government arena for Kev and his wife Libby have four adult children and five about 32 years, including stints in grandchildren. In his spare time he enjoys watching all Murweh, Charleville, Moree Plains sports and is a keen rugby follower having retired as a and Kilkivan shires. He started work at Toowoomba City first-grade referee in 2007.

He was appointed the Acting General Manager, Acting General Manager Environment and Community Services Group in Environment & Community Services September 2012. Nick Hauser has worked in local Nick was schooled in Toowoomba and was School government for the last nine years, Captain of St Joseph’s College in 1993. joining Toowoomba Regional Council in 2008 as the Manager of He is married to Katie with three young children and is Parks and Recreation Branch. He previously worked for an avid rugby league fan and long suffering supporter of the Rockhampton Regional Council, and in the field of the Penrith Panthers. In his spare time he enjoys playing sports management. touch football.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 9 TRC Organisational Structure

TRC Groups TRC Branches

People & Organisational Development Toowoomba Finance & Business Regional Council Strategy Financial Services

Customer Service

Stakeholder Engagement & Communication

TRC Information, Communications & Technology Chief Executive Officer

Construction & Maintenance North

Infrastructure Services Transport & Drainage Planning Central

Legal Project Services South Governance Services Plant & Fleet

Tourism & Events Environment & Community Services Community Development & Facilities

Library & Cultural Services

Parks & Recreation Services

Property Services

Environmental Health Services

Water Infrastructure Services

Water & Waste Services Water Operations

Strategy & Coordination (Water & Waste)

Water Project Services

Waste Services

Development Assessment Planning & Development Services Building & Compliance

Strategic Planning & Economic Development

10 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Open for Business

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 11 ByPass Forum – Highlighting our needs in Canberra

Recognising the need for critical infrastructure to be The Member for Toowoomba South, and Minister for built that will allow for the continued growth of the Agriculture, Fisheries and Forestries Dr John McVeigh region, Mayor Paul Antonio and his fellow Councillors attended the forum representing the Premier of called for a special ‘Seal the Deal’ business and Queensland, Campbell Newman. Government forum in February to release the business The key theme articulated by Mr Truss that the case for the proposed Toowoomba Bypass. Toowoomba bypass is ‘an important link in the national freight corridor and a key part of the Coalition’s plan for Held at the Picnic Point function centre on February road infrastructure’ provided Council with fresh hope 8 the ‘ByPass Forum’ attracted participants from that the decades old issue may be settled in the first Federal, State and local government, various industry term of a Coalition Government. representatives and local business identities. Council’s push for the funding for the Toowoomba Speakers included the then Shadow Minister for ByPass wasn’t limited to hosting the Forum in February, Infrastructure and Transport, Nationals leader Warren with the Mayor leading a delegation to Canberra in Truss, then Senator Barnaby Joyce, the Port of Brisbane March to discuss the matter with senior advisors in Chief Executive Officer Russell Smith and Infrastructure the office of the then Minister for Infrastructure and Australia’s national coordinator Michael Deegan. Transport, Anthony Albanese.

“Our hope is to Seal the Deal on the Toowoomba Bypass. This needs to happen not only for this region’s economic future but for the future of Queensland and this nation.” Mayor Paul Antonio

12 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Revitalising the CBD – Preparing for the future

Railyards Precinct Sustainable Transport Strategy

The planned redevelopment of State Government Toowoomba Regional Council is actively working owned land between Ruthven, Russell, Bridge and towards a sustainable transport future for the region, Bellevue Streets will become the’ jewel in the crown’ of looking at how people and places in our community can the city, on the same level as Southbank and Roma St be connected, how people will travel to destinations, and Parklands in Brisbane. how the region manages external transportation needs through its transportation network. Cited as a ‘catalytic project’ for the region, Council believes the Railyards Precinct development will act as a Council has commenced a Strategy to plan for a starting point for many other beneficial developments sustainable transportation future that will study all that will enhance the amenities and the usability of the modes and nature (private, commercial, industry) of area for all residents. transport within and through the region.

Council has actively sought community feedback through a planned community consultation process to get the community’s input on the preparation of the Toowoomba Region Sustainable Transport Strategy (TRSTS).

The primary objective of the TRSTS is to plan and provide for a sustainable transportation future. A clear 20 year plan (with first 5 year implementation plan), a good understanding of planning for the longer term beyond 20 years, and a vision for a future strategic passenger and freight network consisting of road, rail and air transport and active transport networks are core Outer Circulating Road objectives of the strategy).

In 2012, Council received $45 million from the Queensland Government’s Royalties for the Regions initiative (under the Roads to Resources Program) to design and construct the Outer Circulating Road Project (OCR).

The OCR is being delivered by Council in a number of stages:

Project Definition and Preliminary Design – completed March 2013

This phase was completed on time and involved the preliminary engineering analysis of geotechnical, hydraulic, hydrology, survey, traffic modelling and service locations required for the project. The phase resulted in a defined project scope, preferred road alignment and bridge structures, and initial project costings.

Detailed Design and Early Works – March 2013 to November 2013

Engineering consultants GHD were engaged by Council in March 2013 to undertake the detailed design of the project. This work involves undertaking a range of engineering, hydrological, geotechnical, environmental and cultural heritage investigations and tasks. Engagement and communication with project stakeholders, adjacent businesses and the local community commenced during this phase.

The detailed design phase will result in finalised road and structure designs, detailed costings of the road infrastructure, early works as necessary, and Council awarding a contract for construction.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 13 Library Facilities Strategy 2012-31

The future of libraries across the region over coming Crows Nest, Yarraman, Oakey, Pittsworth and decades will be guided by the Libraries Facilities Millmerran. In the future, these growth areas will be Strategy approved by Toowoomba Regional Council in serviced by suburban libraries. November 2012. New libraries are proposed for Highfields, as well as The Strategy identified excellent library collections and a western outer suburban area and a southern outer customer service as the libraries’ main assets, however suburban area. An expansion of the mobile library service deficiencies in current library services, an inability to is also recommended to meet some of the growth in meet future demand and sub-standard programs, demand until these suburban libraries come on-line. services and technology were identified as shortfalls in the current service. Proposed Actions Approximately 500 people responded to a community • 2012 – 2014 New regional resource management survey as part of the Strategy’s extensive community centre (approx. 1,000sqm) includes regional staff, consultation. archival and bulk collection storage, courier and The Strategy aims to meet projected population mobile library base. growth, with contemporary library services in all • 2012 – 2014 New City Library (approx. 2,600sqm libraries. Spanning a 20 year timeframe with five-yearly over 1-2 floors) includes Local History Library and reviews, the Strategy provides the footprint for the learning centre, located as part of the Civic Precinct. future of library services in Toowoomba region. • 2014 – 2015 50% of regional collection relocated to A ‘hub and spoke’ model is fundamental to the Strategy. the new off-site library coordination centre freeing The hub – a central resource management facility - up more floor space at existing libraries particularly supplies library resource materials to all thirteen libraries Highfields and Oakey. across the region (the spokes). • 2015 – 2016 New northern district library (approx. Under this model the City Library becomes a branch 1,000sqm) probably located at Highfields. library and the library coordination centre (hub) • 2019 – 2021 New western district library (approx. is established to acquire, process and supply all 1,800sqm) libraries with resources while providing storage and collection management and acting as a centre for the • 2016 – 2024 Four community lounges/digital development of specialist services and programs to be hubs (approx. 300sqm each) staged leases over implemented across all libraries. an 8 year period. Typically located in the growing southern suburbs. Projected population growth is primarily in the • 2025 – 2026 JC French Library at Crows Nest outer suburban areas surrounding Toowoomba, expanded and refurbished. from Highfields in the north, Glenvale in the west, to Westbrook and Hodgson Vale in the south. Growth • 2012 – 2031 Progressive upgrades and maintenance is expected to continue in all district areas including to existing New Toowoomba City Library Council is moving forward with plans to build a new, high tech City Library and Stage One of the Civic Square on the land behind City Hall (bounded by Herries, Victoria and Little Streets). The new City Library will include the Local History Library.

With floor space of 2,600 square metres (sqm) along with 1,000 sqm of community meeting rooms and facilities, the City Library will effectively be 50% larger than the current library. The back-of-house storage and sorting facility – the library coordination centre – will be moved to a separate site.

The Civic Square design incorporates the library, under- croft parking for 54 library patrons and visitor parking as part of a plaza development with parklands and event spaces. Construction of the Library building is scheduled for completion in early 2015.

14 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Toowoomba Arts Link Council’s strategic purchase of the site at 528 Ruthven turfed area towards the sunnier eastern end of the Street in January 2013 with the intent of redevelopment space and suspended wires overhead for lighting to create a key pedestrian link to primary CBD and artwork. destinations offers greater amenity opportunities to Adjoining building walls may be softened by murals Toowoomba residents. The site has road frontage to and artworks that could showcase local artists and Ruthven Street and Annand Street and will create a change over time, and/or also with trellises to support linkage between Milne Bay Aquatic Centre, the Civic climbing plants. The design allows for retrofitting in the Precinct including proposed Library and Civic Square, future if the adjoining commercial tenancies wish to the existing Annand Street car park, Empire Theatre and provide doors/windows to open out onto the space for former TAFE precinct. al fresco cafe/dining opportunities particularly towards Ruthven Street. The design represents a formal, rectilinear design featuring planting areas at different heights along the Demolition is scheduled for late 2013 with a view to edges, feature walls with integrated seating, an open starting the redevelopment as soon as possible. Toowoomba Regional Arts and Community Centre – Developing the Arts Located in the heart of Toowoomba’s cultural precinct, • Regular film showings and festivals; the Toowoomba Regional Arts and Community • Function/meeting spaces for corporate and Centre (TRACC) will be a unique, medium-sized, private use, and; flexible venue for performing arts in the region. The venue will provide a ‘black box’ theatre with state-of- • Specialised training space for TAFE technical the-art facilities, flexible 350 seat capacity ideal for a theatre students. multitude of purposes including youth theatre, intimate The three storey building will comprise a stage area, performances, education and film. a retractable flat floor with seating for 350 patrons, With demolition on the old church hall and neighbouring a projection/control room, a lighting catwalk with office beginning in March 2013 the project is progressing elevated wire grid platform or “virtual floor” for towards its expected completion date in mid-2014. the complete safety of technical staff as well as administrative areas, dressing rooms, reception areas TRACC is expected to meet an identified community and a foyer. need for a mid-size community arts facility with the With more than 130,000 people attending venue being suitable for a number of uses including: performances at the Empire Theatre annually it is • A youth arts centre; estimated TRACC will increase audience numbers by more than 85,000 per year, with a further 55,000 visits • A home of theatre for young people; by people living outside the immediate area. • A mid-sized drama theatre for local This project has been made possible through and touring companies; Federal funding of $2M together with $1.5M raised • A Comedy Club, Open Mike and Cabaret venue; from the community.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 15 NDRRA flood recovery program

Council’s ongoing program to restore its 10,000km road The major projects completed throughout the year network following the flood events of 2010/11 came included: face-to-face with the might of Mother Nature again in early 2013. • new pedestrian bridges at Bullocky’s Rest at Crows Nest, With the end of the 2010/11 program within sight, many of the region’s residents were again deluged • replacement of Cockatoo Creek bridge, Peranga during the Australia Day weekend with ex-Tropical and Djuan bridge, Djuan, Oswald and in late February, early March of 2013. • culvert replacements on Gomoran-Bergen, Krugers- Destruction was inflicted on many of the region’s roads, Mt Darry, Maria Creek, Three Mile, Moran and Emu causing a reassessment of already completed projects Creek Roads in the north of the region and a new funding submission process. • culvert replacements on Dungannon, Willow Council’s estimates of the 2013 flood damage currently Springs, Pilton Valley and Venz Roads in the south stand at $30 to $40 million and the State’s declaration of of the region, and the two events as natural disasters means that affected • reconstruction of Gowrie-Glencoe Road, and Bain councils can once again apply for Natural Disaster Relief Court channel, South Street culverts, and Willims and Recovery Arrangements (NDRRA) funding. Road crossing, as well as Because a number of sites earmarked for repairs from • Griffiths Street sewer and Grey Gums Drive the 2010/11 floods were inundated a second time detention basin works in the central part of in 2013, a complex reassessment and reconstruction the region. program was triggered. By the end of 2012/13, the original program of repairing over 1,100 sites was reaching its conclusion with 94% of the 2010/11 projects completed on the ground. Council is now preparing to embark on the 2013/14 flood recovery program which includes repairs to 438 sites and eight major projects.

16 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Community Engagement

Councillor Engagement Sessions – Face to face with the community

Throughout 2012/13 Council has implemented a Issues that were raised at the meeting included program of community engagement forums across Yarraman Trail, a new Visitor Information Centre and the wider area that present an opportunity for more rest areas for tourists. residents to meet the Mayor and available Councillors in a semi-formal public meeting. Local Government boundaries also featured on the agenda but residents overwhelmingly agreed they Local community organisations work with Council’s were happy to be part of Toowoomba Regional Council, Community Liaison Officers to develop community priorities and visions for the future that are then with many locals thanking Council for their attendance, presented in an agenda to the Councillors for ending the meeting with a round of applause. consideration. The evenings offer residents the Other meetings were arranged for Jondaryan, opportunity to raise issues and queries from the floor of the meeting as well discussing the agenda items. Harlaxton, and Wyreema through to the end of the reporting period. Councils first “Councillor Community Engagement Session” was held in Yarraman on Wednesday, 13 The positive experiences of these meetings has seen March 2013 to provide that chance to Yarraman and the “Councillor Community Engagement Session” a Cooyar residents to engage. fixture on the official calendar for some time to come.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 17 18 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Community Liaison Officers – Working for the community

In keeping with Council’s intention to communicate Throughout 2012/13 the CLOs have been involved in a more effectively with the community it serves, the number of major projects including: introduction of an enhanced Community Liaison • assisting community organisations with Officer (CLO) capability represents a practical and registration and use of the Toowoomba Regional friendly solution for all residents. Community Directory Seven CLOs are strategically located at Millmerran (Ann • supporting Council’s small community grants D’Arcy), Pittsworth (Jason Driscoll), Greenmount/Clifton program, working with organisations to complete (Erin Ford), Oakey (David Totenhofer), Goombungee application and acquittal forms (The CLOs also (Bronwyn Holland), Crows Nest/Yarraman (Caley Quinn) provide advice to organisations seeking larger and Toowoomba/Highfields (Eddie Briffa). external funding) Their role is to be one of the first points of contact • working closely with organisations managing between customers or community groups and community halls throughout the region to Council. A background in community development implement Council’s new core funding program and facilitating community projects are prerequisites for public liability insurance for community halls for this position. • coordinating and facilitating Councilor’s Acting as the eyes and ears of Council, the CLOs are community engagement activities offering relied on to manage issues raised by organisations residents in all areas an opportunity to meet with to achieve satisfactory outcomes for both the Councillors and bring forward local community community and Council. priorities in a structured manner. In addition, they represent Council when attending The CLOs have achieved considerable success with a and participating in various community meetings and number of funding applications over the course of the forums, particularly where Council is a partner. reporting period as well as providing the fundamental interface between residents and Council.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 19 Video Calls – Bringing Council into the home or business

Communicating with Toowoomba Regional Council Communications and the Digital Economy the new is now even easier with the launch of a new video capability was trialled in late 2012 before going live in conferencing capability – residents now able to meet June 2013. face to face with Council staff without ever needing to The online video-call/booking system allows residents leave home. to access an online Council calendar, select a desired Aiming to provide a faster and more convenient date and time, and make a reservation for a video-call communication channel for members of the to be conducted at that time. community to contact and interact with Council the This provides face-to-face interaction where a initiative uses the Internet to connect Council officers conversation and the presentation and viewing of with residents around the region. documents could occur simultaneously and in real time.

New technology and the expectation that more The service also introduces a high-definition, point-to- and more homes and businesses will access to point video conferencing solution in selected Council the National Broadband Network (NBN) with its service centres across the region. unprecedented rise in speed and reliability are the key drivers for this project, together with Council’s stated The business and residential community are able to aim of being “open for business”. drop in to Council’s service centres to connect to the central Customer Service team, as well as Customer Funded by the Federal Department of Broadband, Service specialists who can assist with their enquiries.

“If we can make it easier so no one has to get in a car to come and see one of our technical staff, we will. It is about making it easier to do business with Council.”

20 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Community Service

Greater communication – Listening to our staff

Toowoomba Regional Council undertook its first • Prioritise and address variation in feedback from employee staff survey. This initiative supported planned or desired HR practices or processes Council’s move towards driving a strategic people focused environment aimed at improving employee • Plan local workplace improvement and engagement and investing in skills and capabilities maintenance strategies and processes of our staff. • Inform planned change management approaches The staff survey provided an opportunity for staff and assess progress of current strategic initiatives to provide feedback in relation to how their work and approaches, and environment can be improved. • Leverage best practice from other areas. 70 per cent of staff responded to the survey. This is an excellent response rate particularly for an organisation Following receipt of survey results, each branch conducting its first staff survey. identified key issues to address in their work areas. Over the last year, progress has been made across Council is using the survey feedback to: Council with 60 per cent of issues being addressed • Identify, explore and seek to understand workplace through a range of actions and strategies, and with and staff trends progress continuing on the outstanding points.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 21 Up for it – Volunteers making it happen

Spanning a region of more than 13,000km2 Toowoomba to help areas such as the Special Needs team and the Regional Council recognises the need for volunteer Homebound Library service,” she said. support. Each year, willing and friendly volunteers donate their time at Council’s many Visitor Information Other indicators of resident involvement include the Centres, art galleries, libraries and throughout a number Hampton Visitor Information Centre (VIC) – boasting of other events including the iconic Carnival of Flowers. a remarkably low turnover rate of just one or two volunteers per year of the 35 or so on its books. Australian Bureau of Statistics figures reveal 21.3% of the Toowoomba regional population performs some Hampton Visitor Information Officer Kerri Seccombe form of voluntary work – compared with 18.6% across attributing the low attrition rate to a “nice environment” regional Queensland. where the “volunteers are happy from talking with happy people”. The Friends of the Toowoomba City Library form an indispensable part of the daily operations within that Volunteer Susan Kenyon says the reward of giving facility, with more than 110 members operating as a back to her local community was what attracted her non-profit affiliated association. to the role.

Friends secretary Margaret Taylor says the group is “It is very satisfying and I get enjoyment out of helping only too happy to contribute funds as well as time people and promoting the area,” she said. where needed. Like most of the Hampton VIC volunteers, Susan does “The Friends contribute funds where possible on top two to three shifts (or 8 to 12 hours) at the centre of Council’s allocations and any government funding, each month.

22 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Council News – Telling our story

With the growing popularity of many forms of social communication of Council decisions and events media Council has adopted a communication model to residents across approximately 13,000 square that seeks to take advantage of established channels kilometres. such as YouTube, Facebook and Twitter. Used in concert with other communication means These free communications platforms allow Council to including the “Council Connections” segment run effectively produce regular ‘Webcast’ news segments over a three month period on the free to air Seven informing residents of the latest developments within Network, the monthly community newsletter “Your the organisation and across the region. News” delivered to residents’ letterboxes around the Throughout 2012/13 the construction of a region and the option of receiving this information dedicated studio and the accompanying training of electronically by signing up to “Council eNews”, communications staff within Council to produce these Council’s communications efforts are being syncronised news segments has seen a significant response from with the wider community engagement strategy. the community with each segment reaching more than 10,000 residents. The effect is greater clarity in articulating Council’s various positions and decisions to inform community The concept of telling Council’s story has proven discussion ahead of planned engagement sessions effective as a tool to ensure prompt and accurate between residents and Toowoomba Regional Council.

“Speaking directly to residents via Council’s news segments or other social media allows elected representatives to clearly state the organisations decisions, and the factors leading up to the making of those decisions. It is about keeping the public informed and part of the democratic process.”

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 23 24 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Council Business

Environment & Community Services

Tourism & Events Council continued to promote the Toowoomba region Sports Tourism continues to play a significant role as a great place to visit and a great place to stay in diversifying the region’s annual events calendar throughout 2012/13. Our Visitor Information Centres providing economic and social benefits to the at Toowoomba and Hampton continue to provide a community. High profile sporting events such as the wide range of services to visitors. Council also works in FKG Tour of Toowoomba, Coca-Cola Queensland PGA partnership with our Regional Tourism Organisation, Championship and Hutchinson Builders Toowoomba Southern Queensland Country Tourism to promote International Tennis tournament continue to grow. visitation from outside the region. These events continue to build the region’s reputation Toowoomba Conferences continued to promote in the growing sports tourism sector. Business Tourism in our region by assisting conference and meeting organisers with a range of services The 63rd Toowoomba Carnival of Flowers attracted designed to take the hard work out of hosting a record numbers of visitors across most of its events. successful conference. Whilst the Ergon Energy Flower, Food & Wine Festival and the Grand Central Floral Parade proved the most Throughout the year, Community Events Grants of popular attractions, there was also significant growth $140,000 and in-kind support facilitated 31 regional in the events held during the last weekend of Carnival. community events including the Hampton High Country Food & Arts Festival, the Felton Food Festival, Increased visitation from outside the Toowoomba and Easterfest. region continues to drive economic benefits in real terms. The Toowoomba Carnival of Flowers was an Further support was provided to core annual events award category finalist in the 2012 Toowoomba throughout the region including Australia Day, Anzac Chamber of Commerce & Industry Business Day and Queensland Day. Excellence Awards.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 25 Library & Cultural Services

Art Galleries During the reporting period the design of the new 2012/13 was the 76th year of operation for the Toowoomba City Library commenced. Toowoomba Regional Art Gallery. Throughout the year The opening of the Digital Hub at the Toowoomba a total of 29,759 patrons visited the facility. City Library in January 2013 (with funding under the National Broadband Network program) resulted in A total of 130 public programs were run across attendances beyond all expectations with this Digital Council’s three public galleries – Toowoomba, Rosalie Hub now being held up as the benchmark in Australia. and Crows Nest. Patronage of the Council libraries for the reporting During the year the Toowoomba Regional Art Gallery period are as follows: also received an upgrade to its Fire Suppression system. • Total of 513,994 visitors across all public libraries. Cultural Services • Total loans across the region 1,194,104 During the reporting period Council received a total of $50,000 from the State Government for the Regional • Total of 61,718 reference enquiries Australia Development Fund (RADF) for artistic (mostly on line). development in the community. • Total of 7819 enquiries to the Local History library.

Those funds were matched by Council and projects • Total of 171 clients in the Homebound undertaken include RADF assistance for the Library service. Toowoomba Arts Council for its Splashing Back public art project: a series of mosaic art pieces depicting Museums incidences from the 2011 flood which now form a trail During 2012/13 $30,000 was spent on building through the city. upgrades at the Pittsworth Pioneer Village. Works Libraries included in this upgrade include the fitting out of the Machinery shed and providing a disability ramp for Throughout 2012/13 the Toowoomba Regional access into the old post office. Council approved the Library Facilities Strategy 2012- 31 providing a 30 year direction for the development During the period the Shepard’s hut and Light Horse of public libraries. shed at the Millmerran Museum were also repainted.

26 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Community Development & Facilities

Community Development and Facilities continued Youth with the vital work of providing for the region’s This program delivers engagement and participatory residents in a number of ways throughout 2012/13. opportunities for the youth of the region with a key focus on collaborative partnerships with other youth Aquatic Facilities orientated service providers. Support to the value More than 328,000 patrons used Council’s nine of $43,264 was provided to the PCYC Traffic Training pool facilities across the region (four x 50 metre program run at Groom Park, Toowoomba with 5,083 pools and six x 25 metre pools) throughout the year. students attending this training. Complementary activities such as the Learn to Swim • Number of engagement opportunities in year program, toddlers pools, crèche facilities, gymnasiums, ‘Youth Connect’ – 144 saunas, rehabilitation programs and on-site cafes is • Number of youth who attended engagement continuing to prove popular. opportunities – 6,112 Community Development Community Support – Grants The ‘Community Development Service’ assists A total of 33 community support grants totaling in providing participatory opportunities, $56,699 were approved during the year to support community capacity building, advice and advocacy various not-for-profit groups throughout the region. in addition to providing coordination, internal In addition, 90 organisations were provided with ‘core’ guidance/support and expertise. community support funding to the value of $281,000 Key Statistics: to assist with insurance support and contributions towards various community programs and activities. Community Recovery – response to flood disaster • 91 engagement programs /projects / meetings Cemeteries / consultation undertaken through the region • Cemeteries 28 (council controlled) • Total attendance of 1,681 attendees at • There have been a total of 320 interments this engagement programs / projects financial year • Establishment of numerous Local Emergency • Estimated visitation 50,000 per annum across all Coordination (LEC) Committees. cemeteries • Visits to cemetery website 32,673 Multicultural • Languages & Cultures Festival – attendance Key Projects: 14,000 • Attended meetings and engagement • Drayton & Toowoomba Cemetery – Perimeter opportunities – 203 Fence replacement • Cultural awareness training – 226 attendees • Regional Cemetery Services – purchase of grace shoring devices Older Persons • Drayton & Toowoomba Cemetery – Restoration • 16 older person participatory / works associated with old shade structures engagement opportunities • Various Minor upgrades to regional cemeteries • 20,800 attended these engagement opportunities Cultural Facilities Highfields Cultural Centre conducted 483 events Community Housing throughout 2012/13 and the Oakey Cultural Centre • Number of community housing facilities – 13 also conducted 192 events throughout the year. • Number of community housing clients – 14 The Highfields Cultural centre again did extremely well Home and Community Care (HACC) in the prestigious Australian Bridal Industry Awards • 3 schemes – Oakey, Millmerran, Clifton (ABIA) (Qld). The Highfields Cultural centre were finalists in four categories • Number of service requests – 1,590 • Reception centre Indoor Sport & Recreation Facilities • Ceremony venue • Four Indoor Sports Facilities, all run by • In-house wedding advisor council staff (Bayview Fitness, Highfields, • Function coordinator Millmerran, Crows Nest) The Highfields Cultural Centre placed: • Sports halls, gym, crèche, reception, kiosk • 2nd in Qld – Function Coordinator • 2012/13 estimated attendance across all four facilities is 124,500 • 3rd in Qld – Reception Centre

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 27 Parks & Recreation Services

During the 2012/2013 financial year Parks and Recreation successfully delivered capital works with a total value of $5.1Millon.

Completed Sports Infrastructure Projects The purchase of 43.8 hectares of land at Charlton for the development of a multi sports precinct was completed in this period. Tenders will be called in 2013/14 financial year for the development of a master plan and business model for future development of the site.

Other major projects included:

• Installation of a new skate park facility and associated park embellishments at Crows Nest at a value of $127,000.

• Additional court upgrades at the Nell E Robinson Park netball facility at a cost of $121,000.

• Continued renewal of sports lighting facilities with new lights fitted to 11 towers at Kearney’s Spring Park at a cost of $125,000.

• Total grants of $235,000 provided to the following clubs under the TRC Community Sport and Recreation Community Grant program:

CLUBS

Pittsworth Amateur Basketball Charlton Raceway Inc. Pittsworth & Millmerran Junior Cricket Club Inc. Inc.

Crow’s Nest Pony Club Highfields Football Inc. Toowoomba Hockey Association Inc.

Millmerran & District Junior Crow’s Nest & District Pony Club Toowoomba Mountain Bike Club Rugby League Club Highfields and District Sport Pittsworth Tennis Club Toowoomba Netball and Recreation Assoc. Toowoomba Netball Pittsworth Leagues Club Association

During the financial year Master Plans were endorsed by Council for the following facilities:

PARK NAME LOCATION

Cambooya Recreation Grounds Cambooya

Clifton Recreation Grounds Clifton

Federal Sports Fields Oakey

Errol Munt Park Yarraman

Kratzke Road Highfields

Kuhls Road (East and West Fields) Highfields

28 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Parks & Open Space Nursery Services An extensive program of playground The ‘Plants to the Public’ program saw the provision refurbishment and upgrading was of 38,848 plants throughout 2012/13 with results conducted throughout the financial year. from the satisfaction survey showing residents feel the quality and range of plants provided was excellent. Works included:

• Upgrades to the playground equipment at Heller Conservation and Pest Management Street Park adjacent to Picnic Point to include new The Pest Management Plan 2010 -2014 was adopted designs of play equipment for Toowoomba with by Council in May 2013. an investment of $181,000. A range of NDRRA funding submissions were finalised • Upgrades to park facilities at Webb Park to include to progress works on projects such as: new play equipment and embellishments at a cost of $176,000. • Brisbane Valley Rail Trail

• Upgrades to park facilities at Bicentennial Park • Cooby Dam Wall road and Lake Cooby picnic area Greenmount to include new play equipment and • Bushland parks firebreaks embellishments at a cost of $137,000. • Gordon Park pathways • Development of Bunya Park to include a new design incorporating play equipment and embellishments at a cost of $120,000.

Environmental Health Services Regulated Parking confidence in the accuracy of theses meters and Local Laws Officers continue to enforce parking providing a fresher street appearance. restrictions and promote positive public relations providing friendly and helpful service. Immunisation The immunisation service offered to our community Random patrols provide efficient and effective use provides a baby clinic each Wednesday from 9am of Council resources in undertaking enforcement to 1.30pm and a monthly evening clinic on the first action. Priortisation of areas of significant need for Thursday of the month from 6.30 to 7.30pm. traffic parking management, and where significant inconvenience to business operations such as loading During 2012/2013 997 babies were immunised against zones, disability access spaces and various safety risks 14 diseases using 10 different vaccine combinations. ensures resources are allocated to best possible use 2,378 doses of vaccines were administered. Diseases and outcomes. vaccinated against are:- Diphtheria, Tetanus, Pertussis Council does not operate quota practices on issuing (whooping cough), Polio, Influenzae B, Hepatitis A & infringements but concentrates on performance B, Pneumococcal, Rotavirus, Measles, Mumps, Rubella, accuracy in identifying and accurately issuing Varicella (chickenpox) & Meningococcal C. infringements. This practice continues to ensure Adults were vaccinated with Seasonal Fluvax & consistency and minimise the occurrence of review. Boostrix against influenza and diphtheria/tetanus/ Council parking meter assets operated at greater pertussis with a total of 124 vaccines administered. than 97% availability during the reporting period and Environmental Health Services continues to review The School Based Vaccination Program administered and investigate technologies to provide options for 11,093 vaccinations in 25 high schools to Year 8 payment and permitting systems. and 10 students using four vaccines – Hepatitis B, Gardasil (HPV) & Varicella for Year 8 students & Boostrix Approximately half of councils 1000 + single head (diphtheria/tetanus/pertussis) for Year 10 students, meters have been refurbished providing greater and Gardasil (HPV) for Year 10 boys (in 2013).

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 29 Licensed Premises Policy development In 2012/2013 there were 1,070 licensed premises in Toowoomba Regional Council has currently the Council region with 102 new licenses approved, developed new policies for the region, within the and two adjustments/amendments to licenses following categories in Council’s Policy Framework: made. Additionally, two transfers of licenses and 68 Temporary Food Licence Applications were processed • Strategic Policy – to be approved by Council; and issued, 103 licences cancelled and three licence surrenders processed. • Council Policy – to be approved by Council;

Between 1 July 2012 and 30 June 2013 a total of 373 • Statutory Policy – to be approved by Council; Food Store Assessment inspections were undertaken, with 50 improvement notices and written request • Organisational Policy – to be approved by the notices issued, as well as three infringement Chief Executive Officer; notices issued. • Organisational Procedures – to be approved by A total of 387 Environmentally Relevant Activity the Chief Executive Officer; assessment inspections were undertaken, with an online food safety course also provided on Council’s • Department/Branch Processes and Procedures website for food businesses to access. – to be approved by the relevant Manager or General Manager. Animal Management All Council policies, with the exception of planning Council’s companion animal management has been scheme policies, are required to be developed, held as an example of good practice in Queensland. Animal management has a close working relationship approved and reviewed in accordance with with the RSPCA which has resulted in the rehoming of this Framework. 525 unclaimed dogs and 523 unclaimed cats during 2012/2013. Received Customer Requests

A Community Consultation Plan for Dog Off-Leash Request Type Total Areas in the Toowoomba Regional Council area and Clifton was conducted during the reporting period. Parking 3,696 The findings are to be used to propose amendments to Schedule 7 Dog Off-Leash Areas of Subordinate Environmental Health 1,883 Local Law No. 2 (Animal Management) 2011. Animals 6,666

An online responsible dog ownership course is also TOTAL 12,245 provided on Council’s website for pet owners to access.

30 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Property Services The Branch undertook a range of activities throughout • In July this year, the Council Disaster the reporting period including: Management team conducted a significant operational exercise, code named ‘BLOCKIE’. • Council appointed a Fire Safety Advisor to audit all of Councils facilities and prepare a - This exercise was conducted in ‘real time’ over fire safety management plan. All facilities are five days, and was designed to provide Council being upgraded to comply with the latest Local Disaster Coordination Centre staff with an legislative standard and an ongoing training and maintenance management program opportunity to take direction from another has been implemented. Lead Agency.

• The sale of redeveloped residential land in - Benefits of this include a heightened awareness Collingwood Close, Middle Ridge is a result of the of actions to be taken by the community, Strategic Property Review conducted in 2010 that should it be impacted by a significant identified certain property surplus to Councils emergency event, and information about what requirements. The land was redeveloped into services are available before, during and after residential lots to maximise capital return. such an event.

• The sale of Council Land to the Department of • The sale of Council land at Shepherd St Drayton Community Safety to enable the construction appropriately located for a future ambulance site of a suitably located fire station at Clifton. to service the southern area of Toowoomba and • Significant cost savings have been achieved by townships such as Cambooya and Wyreema. placing the maintenance of all of Council’s air conditioning systems under one contract. • The purchase of the property at 528 Ruthven A long term maintenance and improved Street. The building will be demolished and efficiency program has also been established development to occur for a landscaped resulting in the identification and replacement pedestrian link as part of the Toowoomba City of equipment that had passed its serviceable life. Centre Masterplan. Major upgrades include the dehumidifier at Milne Bay pool and the systems at the Greenmount, • A single contractor was appointed for each of the Clifton and Goombungee Service Centres. various other building maintenance functions, such as pest control and security, resulting in • Council, in partnership with Emergency significant cost savings and improved regular Management Queensland (EMQ) supports the servicing of all facilities across the region. State Emergency Service in many areas, including administration, the provision of sheds, vehicles • The former TFD Joinery building at 156 Jellicoe and small machinery (chainsaws, generators) Street Toowoomba was demolished and the and the ongoing maintenance of these items. Its commitment to also interact with the community site reverted to creek corridor open space through the provision of vital information as part of the Gowrie Creek Catchment relating to Disastrous/Emergency events at all Management Strategy. opportunities is highlighted by staff attending all of the regional shows throughout the region as • An old Saw tooth roof building with asbestos well as other high profile events at these centres. cement wall and roof cladding known as ‘J Block’ at the old TAFE site in Hume Street was • Council is continually committed to ensuring demolished as part of a program to prepare the that all relevant groups have sufficient numbers overall site for future development. of volunteers to respond to calls for help from the community as well as Queensland Police, delivering services as outlined within their core business directives.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 31 32 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Planning & Development Services

Development Assessment Improving business processes and compressing This Plan forms part of Council’s intention to assessment time frames continues to be a major participate in the Commitment for Planning Reform focus for the development assessment team. Project endorsed by the SEQ Council of Mayors. The Action Plan addresses the key areas of management, The Branch’s e-Planning Project has commenced, interaction, process and business strategies. with a Vision and Current State Review completed, together with a Gap Analysis and Roadmap. This will Implementation of the Temporary Urban lead in 2013/2014 to the preparation of a Project Consolidation Incentives Policy 2.31 and the Implementation Plan to progress online and electronic Temporary Economic Development Incentives for services for planning and development activities. District Townships Policy 2.32 have also been a focus for the Branch. Expansion of the FastTrack initiative to additional use types is also underway with a plan to introduce two Since implementation in March 2013 (and to 30 June additional FastTrack kits in early 2014. 2013), the Development Assessment Branch has received 57 requests and approved 36 requests for The Branch has also finalised preparation of a two discount under the urban policy and has received year Action Plan which is based on the SEQ Council and approved one request under the district of Mayors Leading Practice Framework for policy, representing substantial savings to the Development Assessment. development industry.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 33 Building & Compliance

The Building and Compliance Branch provides Comparison of activity over the four year spread from plumbing approval and inspection, building 2009/10 to 2012/13 for development compliance certification and advice, and development compliance requests and notices issued is detailed below. control for the region. These areas of service delivery 1400 maintained a high level of activity for the 2012/13 financial year. Notices Issued 1200 Customer Requests Similar to the previous year, the Toowoomba Region displayed less impact from the continuing 1000 depressed development industry state than the rest of Queensland. 800

Applications dealt with by the three functional areas 600 Plumbing and Drainage, Building Certification, and

Development and Compliance – remains consistent 400 with previous years at 2275.

These applications break down as follows: 200

• Plumbing and Drainage – 1,197 0 2009/10 2010/11 2011/12 2012/13 • Sewer Sitings – 62

• Building Certification – 401 Building works undertaken within the region for 2012/13 is valued at $397.725 million. • Building Discretions – 394 Despite the weakened market, this figure compares • Miscellaneous Building/Plumbing – 221 favourably with the value of works for the 2011/12 financial year ($335.238 million) again indicating a The chart below provides a breakdown of modest growth to the previous year. applications by type.

Plumbing & Drainage 1197 Sewer Sitings 62 Building Certification 401 Applications Building Discretions 394 Misc. Building & Plumbing 221

A combined total of 10,671 inspections were undertaken relating to plumbing works, building works and customer requests associated with development compliance matters.

The chart below provides details of the inspection type split.

Building Inspections 1269 Development Compliance Inspections Looking forward Inspections 4785 Plumbing Inspections 4617 Throughout the 2013/14 financial year, Building and Compliance will: • Assess and determine building certification and Response to customer requests has increased compliance as well as plumbing applications. markedly over the 2012/13 year with totals with 1,240 • Position the Branch to take more proactive role in customer requests responded to through 4,785 related development compliance. inspections undertaken. As a result of this activity there • Undertake process and service review to identify were 1,106 Notices issued for the financial year. efficiencies and enhance service delivery.

34 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Strategic Land Use

Implementation of the new planning scheme has Council purchased the ‘Sew Handy” building and gone smoothly with a decrease in red tape and approved a draft landscaping plan to turn this a decrease in regulation level resulting in greater building into a green pedestrian link linking Ruthven engagement with the development industry street with the Annand Street carpark. and residents. Final designs are currently being prepared with the Highlights works due to be completed by 30/6/14. Highlights for 2012/13 include: Other major projects include a review of the Priority • Introduction of an Urban Design Initiative, Infrastructure plan to keep current with standards of to facilitate the quality of design as the area development and to ensure maximum benefit for the develops, which resulted in the development development industry and TRC community. of an Urban Design Strategy, 10 Urban Design Council participated heavily in the State government Priorities for the Toowoomba Region, the review of Infrastructure Charges, with the final formation of an Urban Design Place Making Panel and the future introduction of an Awards for decisions due to be announced early in 2014. Excellence Program. Council has also commenced work on a CBD • Completion of a Commercial and Retail Land car parking study due to be completed in Needs Review to provide an updated assessment December 2013. of the supply and demand for commercial and retail land. Toowoomba Regional Planning Scheme KPMG consultants undertook an independent review • Introduction of a Temporary Urban Consolidation of Council’s planning scheme and found the TRPS: Incentives Policy with a view to stimulating medium-density development in existing urban • Is consistent with the Productivity Commission’s centres; increasing residential density to provide best practice principles for planning schemes; for increased housing choice; increasing the potential for public transport to become more • Contributes over $35 million of value-add to the viable; and to expand the overall housing stock Toowoomba regional economy through reduced available to buyers throughout the urban areas of assessment levels for residential, commercial and the Toowoomba region. (Between January – June industrial developments over a period of 15 years; 2013 Council commenced an incentive policy to and promote unit and small lot with a total of 127 units approved.) • Contributes over $900 million of value-add and 1500 full time equivalent jobs to the Toowoomba • A Flood Study Scoping Plan was completed regional economy through construction activity as a first step to determine the Flood Studies associated with PIP infrastructure investment over required to enable Council to prepare a Flood the same period. Risk Management Plan and amend the Planning Scheme. Economic Development • Completed the preparation of the Highfields, The Economic Development Strategy was adopted Meringandan and Meringandan West Local Plan by Council outlining initiatives to be undertaken by Report following extensive stakeholder and Council and by the Toowoomba Surat Basin Enterprise. community engagement. International Relations • Completed all planning and design aspects to enable the construction of the Toowoomba Council adopted a new International Relations Region Arts and Cultural Centre to commence strategy which outlines the activities with our in 2013/14. international partners and the importance of these relationships to the Toowoomba Regional Community. Through 2012/13 Council undertook commercial, retail and Industrial land needs reviews to ensure we Council recruited 8 Assistant English Teachers who will are current with understanding the needs of those work in our Sister City Takatsuki Japan for 12 months industries, as well as participating in workshops and teaching English to primary school students. lodging submissions regarding the draft Darling Downs Regional Plan prepared by State government. Council representatives attended and exhibited at the Paju Chamber of Commerce and Business Expo in Strategic Land Use also prepared a Toowoomba Region September 2012. Housing Strategy (to go to council for adoption later in 2013) and commenced preparation of the Toowoomba Council also hosted delegations from Paju and Region Sustainable Transport Study. Takatsuki during Carnival of Flowers 2012.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 35 36 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Infrastructure Services

Construction & Maintenance Managing Council’s road infrastructure and With a total road network of 9,660km, there is providing the necessary upgrades to meet the recognition by Council that the upkeep of the sealed demands of a growing population continues to roads (3,215km) and unsealed roads (3,584km) will be a major challenge having regard to: require a significant injection of funds to maintain these assets in a safe operating condition. • Community needs and aspirations; There is almost 2,800 km of unconstructed roads • Industry standards; that are not maintained. • The need to provide a safe and efficient road network; and

• The ability of Council and the Community to fund such standards.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 37 Capital Works Renewals Capital Works projects to the value of $33.15 million While Council increased the allocations for this work, were undertaken during the 2012/13 financial year a large backlog of renewal work is still required to including the following : improve the serviceability of the network. This funding will ensure the condition of sealed roads in particular, • Nelder Park, Toowoomba – construction of does not deteriorate to a point where expensive Detention Basin (Bio-Filter) reconstruction is necessary. • Keding Rd, Westbrook – drainage channel construction Gravel Resheets $4.3 million $4.5 million (163km of • Helens St, Pittsworth – drainage improvements Reseals sealed roads resurfaced) • Bridies Rd, Greenmount – Reconstruction Asphalt Overlays $1.75 million • Cudmore Rd, Nobby – Reconstruction • Woodlands Rd, Greenmount – Reconstruction Maintenance Routine and scheduled maintenance activities were • Russell Ct, Palmerstone Ct, Disraeli Ct, Wyreema – carried out to ensure roads functioned efficiently in Reconstruction terms of ride comfort, pavement and wearing surface defects, notwithstanding existing features such as • Mowen St/Hinz St, Clifton – Reconstruction narrow sealed width and deficient horizontal and • Bostock Rd, Lemontree – Floodway reconstruction vertical alignment. • Antonio Rd, Millmerran – timber culvert Actual expenditure for the year was $20.1 million. replacement In addition, Council carried out routine and • Cecil Plains Moonie Rd, Dunmore – Reconstruction programmed maintenance work for the Department of Transport and Main Roads on their state controlled • Nelson St/Ramsay St, Toowoomba – Reconstruction roads (857km) in the TRC region. This was by way of a inc bike lanes Road Maintenance Performance Contract (RMPC) to an • Jondaryan Evanslea Rd/ St Ruth Rd – amount of $3.6 million. Reconstruction of intersection • Florence St, Millmerran – Reconstruction • Punchs Creek Rd – Widen and Seal • Aster St/Whittle St, Pittsworth – K&C, drainage and sealing • Maddern Rd, Pittsworth – Reconstruction • Linthorpe Rd, Pittsworth – Reconstruction • Clifton Pittsworth Rd, Felton – Reconstruction • Crown Nest Blackbutt Rd, Pierces Creek – Reconstruction • Campbell St, Toowoomba – repairs to bluestone K&C • Clifford St, Toowoomba – Reconstruction commenced • Harrow St, Drayton – timber culvert replacement • Drayton Wellcamp Rd, Toowoomba – Reconstruction • Ganzer Rd, Gowrie Junction – Reconstruction • Crows Nest Blackbutt Rd, Pierce Creek – Reconstruction • Jondaryan Nungil Rd, Jondaryan – Reconstruction • Heiligs Rd, Glencoe – Drainage, Widen and Seal Numerous concrete footpaths/bikeways, bus stop upgrades, and stormwater drainage pits were also upgraded.

38 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Transport & Drainage Asset Management Design Throughout the 2012/13 financial year a A variety of design projects were undertaken during number of activities were undertaken including: 2012/13 including:

• $170,000 of road video and data extraction for • The 2012/13 design program operating on a the sealed road network. project value was 98% complete.

• $220,000 of gravel road video and ground • The 2013/14 design program (operating on a penetrating radar surveying. project value of $17.9M) was commenced.

• $70,000 of Level 2/Level 3 bridge inspections. Road Operations • $70,000 of traffic counts on arterial and sub-arterial Highlights for 2012/13 include: roads around the region. • Parking Operations – a very high level of vending • Completed $110,000 pilot project for drainage asset machine availability was achieved throughout the data validation and condition assessment. 12 months. Designs were prepared for substantial disability compliance upgrade works on the ground • Compiled $850,000 program for further data floor of the Russell Street bus interchange. collection and condition assessment activities for 2013/14. • Traffic Signals – traffic monitoring camera system and STREAMS interface completed and operational, Transport Planning with $100,000 of ongoing renewal and upgrade of traffic signal assets. A number of key tasks were undertaken during the reporting period, including: • Road Safety – commenced a review of high risk locations on the Local Roads of Regional • The commencement of the Toowoomba Regional Significance Network, to develop proposals for Sustainable Transport Strategy: agreement with future road safety treatment projects. the Department of Transport and Main Roads to contribute $125,000 to support traffic modeling • Street Lighting – completed lighting upgrade being undertaken by Parsons Brinckerhoff. within Ergon Gateways project on Ruthven Street (Bridge Street to Jellicoe Street); LED lights being • Extensive work undertaken on O’Mara Road trialed in Neil/Annand Street Car Park. concept planning ahead of Royalties for the Regions grant application. • Application Statistics for 2012/13: 723 Land Access Certificates, 160 Works on Roads permits, 103 Wide • Initiated the Regional Active and Public Transport Load approvals. Advisory Committee (RAPTAC). • Customer Service: 3,394 Pathways received for Drainage Planning 12 months July 2012 to June 2013; 310 in progress Support was provided to a variety of extensive at end of June. programs including:

• Technical advice regarding Flood Hazard Mapping Studies.

• The Oakey Flood Study development of draft report and detailed mapping.

• As part of the Highfields Flood Study, development commenced on various models for Klein Creek and Meringandan Creek.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 39 Aerodromes Project Services Highlights for 2012/13 include: The Project Services team has been involved in the delivery of a broad range of projects during • The Toowoomba Aerodrome Master the 2012/13 financial year. These have included: Plan commenced. • National Disaster Relief and Recovery Arrangements • RPT Services: Commercial airline Skytrans (NDRRA) program – substantial completion of the commenced direct flights from Toowoomba $130M 2011 Flood Event restoration program, to Sydney on 1 July 2012. focussing predominantly on road restoration in • Capital Works: Preliminary designs for the northern districts, and completion of major projects Toowoomba Aerodrome passenger terminal including Bain Court drainage, South St culvert, disability compliance upgrade was completed Maria Creek Rd, Willow Springs Rd, Djuan Rd bridge. during 2012/13. A $70,000 project to upgrade Investigations and scoping were also carried out for security fencing around lease hangars and works for the 2013 Flood Events perimeter fencing was completed, as well as the • Gowrie Creek Catchment Flood Mitigation Strategy commencement of a $70,000 upgrade of lease – strategy concepts developed, design of West electricity supply. Creek (James-Herries) channel works commenced • Initiated the Toowoomba Aerodrome Advisory • Gowrie Creek (Toowoomba) Flood Early Warning Committee (TAAC). System – Scoping and preliminary installation works completed • Completion of upgrade to Clifton public Looking forward swimming pool For the 2013/14 financial year, Project Services will • Toowoomba Outer Circulating Link Road Project be managing the delivery of key projects such as: – concept design and preliminary on-site works including demolition complete; detailed design, • Completion of NDRRA restoration and betterment preconstruction activities and procurement of works in liaison with principal program consultant construction contractor were commenced and civil contractors, including Stage 2 of the Clewley Park detention basin • Neil St Bus Interchange – repair and upgrade works commenced. • Continuing works from the Gowrie Creek Catchment Flood Mitigation Strategy, including construction of the West Creek (James-Herries) Plant & Fleet channel works and Goggs St drainage Throughout 2012/13 Plant and Fleet Branch continued to enhance Regional fleet management • Installation and commissioning of the Gowrie practices leading to better fleet coordination and Creek (Toowoomba)and Oakey Flood Early management of expenditure by: Warning Systems • Reviewing and enhancing our tyre management • Commence construction of the Outer Circulating and purchasing; Link Road Project • Reviewing our oil procurement and use; • Completion of the Neil St Bus Interchange repair • Measuring our proactive and reactive and upgrade works maintenance statistics; • Oversee the Dent Street Railway bridge • Using Fleet utilisation reporting to highlight and replacement in conjunction with Queensland Rail dispose underutilised plant and equipment; • Construction of Newtown Park Centenary works

• Commencement of O’Maras Rd Upgrade Stage 1

40 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Water & Waste Services

Water Operations Council continues to focus on supplying the 135,000 to its water sources and the heavy reliance on connected residents with the best quality drinking groundwater for regional supplies results in the water possible. Emphasis is on getting the best need to pump all of the 12,000 megalitres supplied possible performance from Council’s existing water during 2012/13 and means that rising electricity treatment plants, ensuring consistent compliance charges continue to have a major impact on the with legislated drinking water standards. cost of producing water.

As a result drinking water quality complaints have For 2012/13 electricity charges for water supply fallen by a further 23% compared with 2011/12. totaled $2.62M, representing 34% of the total cost The quality of drinking water supplied to the of sourcing, treating and supplying drinking water. Highfields, Cabarlah and Meringandan East areas was further improved by the commissioning of the For the Toowoomba drinking water supply alone, Mt Kynoch to Highfields drinking water pipeline in $2.18M or 39% of the total cost, was spent on August 2012. electricity. Ongoing electricity price increases mean that managing electricity charges and consumption Toowoomba’s unique geographical relationship will be central to containing future water costs.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 41 Council operates 12 wastewater schemes, collecting of both systems for a further 3 years as well as the and treating almost 10,000 megalitres of wastewater continued implementation of an ISO 14001 compliant each year. Environmental Management System. As with water treatment and supply, electricity costs are significant, totaling $1.50M or 25% of the total Water Infrastructure Services operating cost for 2012/13. Council’s operations staff remain committed to achieving the best possible Contingency Plans have been developed to effluent quality from our existing wastewater treatment manage business continuity of the Waste Water plants and maximising appropriate reuse of network Infrastructure in the scenario of loss of treated effluent. service through critical assets. Similar plans are being developed for Water network assets. The commissioning of the Highfields to Wetalla wastewater and Oakey to Wetalla wastewater pipelines Water infrastructure Services has commenced a major in June 2013 and August 2013 respectively will improve project to collect and validate asset data for use in environmental performance and make more efficient a new Asset Management System. This system will use of Wetalla WRF treatment capacity. facilitate a formalised approach to asset management and methodology within Water and Waste Services Environmental compliance continues to improve with Group. It will also allow development and continuing the ongoing implementation of Council’s Trade Waste review of management and maintenance programs. Environmental Management Plan across all of our wastewater schemes. This is helping to reduce the load This will maximise the effectiveness of resourcing and on and improve the performance of our wastewater funding water assets and will enhance the way in which treatment plants, while maximising staff productivity water infrastructure is managed and maintained by reducing the time spent on clearing sewer Planning has commenced for a major study to analysis blockages and other damage caused by unauthorised trade waste discharges. the gaps in the current Water and Waste Telemetry and SADA networks to define what needs to happen now All water and wastewater operational activities are and provide strategic long term direction for where supported by Council’s National Association of Council needs to be in the longer term. Testing Authorities (NATA) accredited Laboratory Services section. A study has been progressed to examine options for the better control of electricity usage across Council’s active water and wastewater assets due to the electricity tariff Strategy & Coordination changes that are being mooted for the future. Among the achievements for the Strategy and The functional rollout for Water Infrastructure Services Coordination (Water & Waste) Branch in 2012/13 was is continuing with Goombungee and Oakey coming the continued development of network models by into the Group. Planning is now underway examining the Network Planning Section. These models assisted with detecting deficiencies in the existing water and rationalising the workloads of the areas to reflect the sewerage networks as well as future infrastructure resourcing available. requirements to service growth and development. In January and February 2013 major overflows were Planned augmentation of specific network experienced from all three of Councils bulk Water infrastructure has subsequently been included in Storages. These were the second largest on record for future capital works programs. all three storages. The Emergency Action Plans for all three storages were activated and performed well. The Branch’s water and waste educators attended 35 institutions and presented to 61 classes with Annual dam safety inspections were carried out during 1,383 students and adults. There was a substantial July/ August 2012 and annual document revision for increase in the number of requests for Waste 2011/12 will be carried out to comply with the Dam awareness and minimisation lessons. Safety Condition Schedules issued by DEWS. The document review for 2011 was completed and reports There was also a 200% increase in the number issued to DEWS as required. of community organisations requesting Waste awareness presentations. Rectification works along the Wivenhoe pipeline Another major project was the determination of Route were commenced to repair erosion and flood impacts on Council due to the carbon pricing damage that had occurred due to the flood events of mechanism component of the federal government’s 2011 and 2012. Clean Energy Futures package. This project identified Major controls valve and diversion works were carried Council’s reporting obligations and future liabilities out on the Western Trunk water supply trunk main from Council landfill operations. to allow better management of supply flows to the Coordination and management of our third party western side of Toowoomba and to the Oakey supply certified Quality and Food Safety (HACCP) Management line. This now allows the trunk main to be isolated and Systems continued with the successful recertification supply to Oakey to be maintained and vice versa.

42 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Water Project Services Waste Services Water Project Services Branch is responsible for Waste Services has worked through a period of major design, construction and commissioning of Water and change in the last 12 months. The Queensland State Wastewater capital works projects Government introduced and then removed a Waste Levy. A price on Carbon was on, off again and then on The Toowoomba Wastewater Infrastructure Project and implemented with Council triggering the threshold (TWIP) program of works continued throughout set by the Government at its Toowoomba Waste 2012/13 including the construction of gravity and Management Centre. As a result there is work underway pressure sewer mains and sewage pumping stations. with regard to the management of landfill gas at this site, as well as further progress on the expansion of The $50 million program is being delivered through the capacity of the facility, with detailed design well an Early Contractor Involvement (ECI) project delivery underway for the expansion of the facility and a landfill methodology with the following projects: gas system to be retrofitted in the facility. • Highfields to Wetalla Water Reclamation Facility Council has closed a number of smaller landfill Trunk Sewerage Network; sites as part of the implementation of its Waste • SPS 55C Glenvale Trunk Sewerage Network (sewage Management Strategic Plan, and plans are underway pumping station at McDougall and South Streets); for the conversion of some existing landfills to more environmentally friendly waste transfer stations. • Westbrook Trunk Sewerage Network Concept planning is underway for waste transfer (Westbrook to Kooringa Valley); facilities at Kleinton, Greenmount and Pittsworth.

• Mt Kynoch Water Treatment Plant Sludge Council has introduced its new generation waste Thickener; and collection contracts, which saw the introduction of a dual bin (garbage and recycling) kerbside collection • Western Trunk Sewerage Network (Oakey to Wetalla service to properties within the collection zone, and Water Reclamation Facility including sewage the optional green waste service in certain parts of pumping stations at Oakey, Kingsthorpe, Gowrie the region. Almost 56,000 properties are now serviced Junction and Kooringa Valley). every week at the kerbside, and over 19,000 have taken up the optional green waste service, diverting over Construction work on all projects is nearing completion 6,000 tonnes of green waste from landfill. with commissioning of the infrastructure scheduled to commence mid-July 2013. Following commissioning Council is working on plans for the rehabilitation of of the new infrastructure, existing sewerage networks some of the landfills which it has closed focusing on (gravity sewers, sewage pump stations, treatment higher impact locations first. plants) will be modified and/or decommissioned. The Highfields wastewater treatment plant, the Oakey wastewater treatment plant and the temporary Westbrook wastewater treatment plant will be taken out of service and decommissioned.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 43 44 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Finance & Business Strategy

Financial Services Throughout the 2012/13 financial year the Financial A detailed Standard Suite of Reports has been Services Branch has worked through a wide variety developed and is emailed to managers each of challenges to deliver professional advice and month detailing operational and capital expenditure services to Council. against budget resulting in more cohesive relationships developing between designated The 2013/2014 Budget was adopted on 28 June Management Accountants and Branch Managers. 2013 and the 2013/2014 Fees and Charges on 18 June 2013. The Fees and Charges format on the Ongoing budget training sessions were provided Council website has been enhanced to enable across Council for all Managers and budget preparers. viewing online using emerging technology. Internal Audit has been a focus during the year The Financial Services Branch received 41,701 with most functional areas of the Financial Services customer requests during the year - an increase of Branch audited. This process has resulted in the 16% over the previous year, with all rate notices identification of opportunities to implement best issued within set timeframes. The ongoing practice and also to better identify areas of risk that development and review of Financial Services have been mitigated. The overall process has had a Branch policies was a continued focus. significant value added outcome for the Branch and on the whole demonstrated that controls, systems The achievements reported last year about the and procedures were operating at an acceptable development of the Procurement Team continue level are now performing at an enhanced level. with the commencement of On Line Requisitions on 19th November 2012. The Financial Services Branch has been very much involved in the financial management of the Natural The number of invoices received without a purchase Disaster Relief and Recovery Arrangements with order reference has decreased from approximately secondment of a management accountant to 500 on hand at any one time to approximately 60. the program. Identification and in-depth training of 150 order requisitioners has provided operational units with a Claims in excess of $120 million have been made to point of contact for order creation, compliance and the Queensland Reconstruction Authority for the order receipting. 2011 event and claims are anticipated of around $35 million for the 2013 events.

Council’s Rate Arrears position throughout 2012/2013 decreased from 5.47% (as at 30 June 2012) to 4.71% (as at 30 June 2013) due to improved debt collection strategies. During the past three years the downward trend in rate arrears has been encouraging.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 45 Information, Communications & Technology

In the 2012/13 reporting year, Council continued • Implementation of a Managed Print Service to deliver expanded, contemporary information, underway to reduce organisational document communications and technology solutions that save production costs progressing with projected customers and staff time and money by providing savings of up to 30%. access to the right information, at the right time in the format and from the location of their choice. • Implementation of new automated spatial facilities management technologies to support asset Council also commenced a substantial revision of management and reporting. core systems that will provide the basis in the coming years of modern asset management and mobile field • Implementation of online Rates General Enquiries solutions. and Online payments.

Particular achievements during the year included: • Procured replacement integrated systems for Finance, Payroll, Human Resource Management, • All ICT services were delivered for over 72hrs each Supply Chain and Asset Management, with detailed week, with in excess of 99.5% availability solution design well underway.

• Enhanced customer service capabilities offered • Council continued to work very closely with the through the implementation of video conferencing NBN Co on the National Broadband Network solutions for external customers their premises and rollout with the Toowoomba region being one of Council Service Centres. the earliest and fastest rollouts across the nation. Fibre services now available to 5 areas around • Council Two Way Radio system network upgraded the city with another 5 under construction, and to improve communication quality and reliability. a substantial urban area now has access to high speed fixed wireless services. • Trial of GPS vehicle tracking systems completed with opportunities for improving plant and fleet utilisation now being targeted.

46 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Customer Service

Council continues to deliver an efficient and effective These forums, scheduled across the Toowoomba customer service experience through its customer Regional Council area, provided residents with an contact centre and eight regional service offices. opportunity to discuss local issues first hand with the Mayor, Councillors and senior staff members A number of new initiatives were launched throughout within council. the year to provide residents with even more options to contact council. These included the implementation of a program to bring senior staff members to regional Figures for the 2012/2013 Financial Year: offices, the introduction of video conferencing facilities Average talk time (talk plus hold) 263 seconds at regional hubs and the expansion of online options to include animal registrations and payment for most First Call Resolution (% of calls closed first call) 97.51% council services. Average speed of answer 20 seconds Average handling time (talk time plus We reached out to local communities and community hold plus wrap time) 455 seconds groups through our Community Liaison Officer engagement and presence, and the introduction of the Councillor/Community Engagement Forums.

2012-2013 Financial Year Looking forward

Avg Speed of Answer 20 seconds Throughout the 2013/14 financial year, Customer Service will: 82.23% answered Grade of Service (GOS) within 20 seconds • Further expand our Video Conferencing capabilities to our regional offices Calls Answered 152,840 • Continue to explore new opportunities and Calls Abandoned 3.07% initiatives to make it easier to talk to council 455 secs • Build and strengthen our involvement with the Average Handling Time (AHT) (7mins 35secs) community by further developing our Councillor Community Engagement Forums, providing 192 secs After Call Work component greater access and visibility via My Community (3mins 12secs) Directory, and the work undertaken by our Counter Transactions 74,186 Community Liaison Officers. 476 secs Counter AHT (7mins 56secs)

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 47 People & Organisational Development

The People and Organisational Branch (POD) plays a Employee Relations vital role in assisting Toowoomba Regional Council The Toowoomba Regional Council Number 2 achieve its Corporate Plan objectives and to continue Employees Certified Agreement paid the last pay to be an employer of choice. In 2012/13, POD Branch increase provided for under the Agreement on 1 August focused on: 2013. The nominal Expiry date of that Agreement is 31 July 2014 and as such negotiations for the replacement • Developing and implementing workforce Enterprise Agreement will commence in the New Year and succession planning strategies of 2014. The Toowoomba Regional Council Number 2 Salaried Officers Certified Agreement in contrast, has • Implementing Certified Agreements a nominal expiry date of 28 February 2015 and as such • Continuing to develop and implement no negotiations will be undertaken in the 2013/2014 programs that promote and enhance staff financial year. health and wellbeing Apprentices and Trainees • Gauging the engagement of staff through the During the 2012/13 financial year Council appointed 28 ‘staff survey’ and working with stakeholders to trainees and apprentices under the First Start program. implement outcomes of the survey. Our new group of trainees consisted of 11 women, Continuing to develop effective strategies which will 17 men, 1 Aboriginal and Torres Strait Islander people, assist Council in addressing challenges brought about no persons with a disability and non-English speaking by the aging workforce will continue to be a priority. background and 22 young people aged 15-24 years.

Non-English Aboriginal and People with Total number Year Men Women speaking Torres Strait Disabilities of employees background Islander Peoples

2012-13 1079 562 49 30 8 1641

2011-12 1093 569 47 29 11 1662

48 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Employee Engagement at least 3 local action plans from the survey as being Our staff engagement survey tool “Your Voice” has relevant, important and strategically applicable to the provided Council with a unique opportunity to improve ongoing future success of the Branch and Council. interactions between staff and identify strategies to Initially, 205 actions were identified and each Branch advance the longer term goals of the organisation. has progressively addressed each action plan to ensure The “Your Voice” survey is now used in all 27 Branches that each target is achieved. Currently 59% of all across Council as an improvement tool to increase action plans have been completed across Council with the Branches overall performance and contribution increasing the quality workplace communication being to Council. Each Branch was initially tasked to identify one of the more common actions being addressed.

Workplace Health and Safety

19.00 18.19 18.00 20.00 18.35 17.45

17.00 15.00

16.05 10.55 16.00 10.00 15.59 6.81 15.00 5.00 4.40

14.00 0.00 LTIFR LTIFR

LTIFR 2010-2011 LTIFR 2011-2012 LTIFR 2010-2011 LTIFR 2011-2012 LTIFR 2012-2013 Scheme Rate LTIFR 2012-2013 Scheme Rate

The Local Government Workcare (LGW) Scheme contribution Rate for 2013-2014 has risen from 1.431% to 1.50%, a rise of 4.82. Toowoomba Regional Council’s contribution rate has risen from .879% to .916%, a rise of 4.2%. Although a rise in our contribution rate is not desirable it should be noted that the rise in our contribution rate is less than the average, with the actual contribution rate still the lowest amongst similar councils.

The rise is due to industry trends and the actual increase is less than the scheme rate and reflects Council’s continued good performance in the management of Work Health and Safety and work related injuries.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 49 Stakeholder Engagement & Communication

Throughout 2012/13 Stakeholder Engagement Council’s flagship website has seen more than one and Communication Branch focused on strategic- million visits during 2012/13, while better than 1,500 communications in direct support to major projects individual posts were made on Council’s Facebook and on specific stakeholder engagement tasks page, with 23,600 “likes’ registered as a result. including the successful “Councillor Community Engagement Sessions”. Council “Tweeted” 1500 times throughout the year, attracting more than 2670 followers seeking up to The Branch also provided media liaison, advertising, date information on scheduled events as well as the graphic design, Web content, speechwriting, video unexpected such as the Australia Day flooding. and stills images production and stakeholder engagement services to the Council. Stakeholder Engagement and Communication Branch also communicated with residents via traditional Initiatives made during the year include the media, issuing more than 580 media releases, alerts or establishment of a Council Web Television studio. speeches for use by elected representatives.

Capitalising on the increasing use of social media and The Branch issued almost 500 print media Web-based communication tools Council developed advertisements, commissioned and wrote 11 “Council the in-house Web TV capability to produce a weekly Connections” episodes that ran on the Seven Network, “Council News” segment that is hosted on YouTube, produced 11 separate radio campaigns and a dozen as well as regular video segments on any number of different television campaigns through 2012/13. topics of interest to the community.

Community response has been positive with a total of 122 individual segments attracting thousands of hits and a regular audience of approximately 17,500 people.

50 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Governance

The Council is the decision-making body for Council Council has established a co-sourced model of business; however, to manage the decision making service delivery in partnership with KPMG to assist in process, five committees were established following undertaking an independent and objective internal the election to focus on: audit. This arrangement provides Council with access to extensive expertise and specialist skills, seamless • Planning and Development delivery of services and the opportunity to mentor, • Water and Waste build capacity and drive the development of new business models. • Infrastructure • Environment and Community Council’s Audit Committee is established in accordance with section 105(2) of the Local • Finance and Business Strategy Government Act 2009, section 210 of the Local Government Regulation 2012. The Committee is All Councillors are members of each of the five an advisory Committee to Toowoomba Regional committees with each committee having a chair. Council (Council) pursuant to section 264 of the Portfolio leaders have been appointed to the four Local Government Regulation 2012. The primary committees to share the workload. The committees objective of the Committee is to assist Council in reflect Council’s organisational structure. fulfilling its corporate governance role and oversight Agendas and Minutes for the meetings are published responsibilities relating to accounting and on Council’s website to demonstrate Council’s reporting practices. transparency and accountability. Council’s Audit Committee was reviewed and Council also hosts a range of civic functions, including restructured during 2011/12 to reflect ‘better practice’ the over 80’s Christmas Party, the Carnival of Flowers and the new regulations. The new Committee Garden Party, five citizenship ceremonies, the Mayor’s includes four independent and external members, Prayer Breakfast and Mayoral Medals Awards. with two Councillors.

Another function managed by Governance Branch is Council’s internal audit to assesses and evaluate Looking forward control measures to manage Council’s operational risks. This has been established in accordance with Throughout the 2013/14 financial year, section 105 (1) of the Local Government Act 2009 and Governance will: section 207 of the Local Government Regulation 2012. • Review and ensure compliance with policies, standards, codes and other legislative requirements, and;

• Integrate audit and risk management to improve assurance and value to Council.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 51 52 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Legislative Information 2012/13

CONTENTS Resolutions made by Council 53 Councillors 54 Councillor remuneration, including superannuation contribution 54 Councillor expenses, reimbursements and vehicles 54 TRC expenses reimbursement policy 55 Facility/device provided for Councillor use 58 Orders and recommendations 59 Competitive neutrality complaints 59 Executive remuneration 59 Overseas travel 60 Council meeting attendance 60 Complaints made, resolved and unresolved 61 Resolutions made by Council

1. That Council adopt the remuneration payable to Councillors as set by the Local Government Remuneration and Discipline Tribunal, as follows:

REMUNERATION RATES* Resolution made by Council Resolution made by Council on January 24, 2012 on January 22, 2013 From 1 January to 31 December 2012 From 1 January to 31 December 2013 Mayor $ 150,864 pa $154,636 pa Deputy Mayor $ 102,862 pa $105,434 pa Councillor $ 89,147 pa $91,376 pa *Set by the Local Government Remuneration Remuneration and Discipline Tribunal

Resolution made by Council November 18, 2008. 1. That Council adopt the approved amended Councillor Expenses Reimbursement Policy pursuant to section 236B and 250AR Local Government Act 1993, to authorise the payment of reasonable expenses and the provision of facilities associated with the discharge of Councillors’ duties and responsibilities.

2. That public notification about the Councillor Expenses Reimbursement Policy be made pursuant to section 186 of the Local Government Regulation 2012.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 53 Councillors Councillor remuneration, including superannuation contribution (as required by S186 (a) of the Local Government Regulation 2012)

COUNCILLOR REMUNERATION PAID

Councillor Remuneration Superannuation (Council Contribution – 12%) Antonio, Paul Cr $152,658.09 $18,319.56 Williams, Mike Cr $104,088.74 $12,490.68 Cahill, Bill Cr $90,209.92 $10,825.00 Glasheen, Anne Cr $90,209.92 $10,825.00 Scotney, Ros Cr $90,209.92 $10,825.00 Taylor, Carol Cr $90,209.92 $10,825.00 Sommerfield, Nancy Cr $90,209.92 $10,825.00 McDonald, Geoff Cr $90,209.92 $10,825.00 Gouldson, John Cr $90,209.92 $10,825.00 Tait, Chris Cr $90,209.92 $10,825.00 Englart, Sue Cr $90,209.92 $10,825.00 Total $1,068,636.11 $128,235.24

Councillor expenses, reimbursements and vehicles (as required by S186 (b) of the Local Government Regulation 2012)

COUNCILLOR EXPENSES, REIMBURSEMENTS AND VEHICLES Council Vehicle Professional Travel Councillor Accommodation Councillor Meals Hospitality Total Development & Transfers Provided Cost Payment Antonio, Paul Cr $739.74 $2,583.06 $2,325.41 Y -$3,027.22 $30,026.16 $1,123.31 $247.09 $34,017.55 Williams, Mike Cr $1,564.50 $1,033.71 $2,501.82 Y -$3,027.22 $15,768.00 $163.64 $18,004.45 Cahill, Bill Cr $197.45 $1,451.50 $121.36 Y -$3,027.22 $19,920.00 $19.93 $18,683.02 Glasheen, Anne Cr $1,140.10 $3,478.71 $1,435.83 Y -$3,027.22 $23,856.00 $266.17 $27,149.59 Scotney, Ros Cr $255.79 $15,458.66 N $15,714.45 Taylor, Carol Cr $1,980.55 $4,735.47 $2,336.67 Y -$3,027.22 $13,944.00 $684.11 $20,653.58 Sommerfield, Nancy Cr $1,181.15 $4,853.80 $3,242.09 Part -$2,960.85 $18,968.88 $537.55 $25,822.62 McDonald, Geoff Cr $1,958.15 $877.36 N $2,835.51 Gouldson, John Cr $336.53 $4,461.15 $790.12 Part -$2,562.62 $11,056.80 $14,081.98 Tait, Chris Cr $615.51 Part -$2,902.77 $12,556.80 $84.94 $10,354.48 Englart, Sue Cr $396.69 $2,404.50 Part -$1,168.82 $4,316.41 $5,948.78 Total $7,140.02 $25,823.54 $31,493.82 -$24,731.16 $150,413.05 $2,879.65 $247.09 $193,266.01

54 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL • Attending conferences of local government TRC Expenses Reimbursement Policy industry associations or professional bodies (i.e. LGAQ, UDIA AIOP, etc) 1. Policy title • Attending civic ceremonies and community events such as representing Council at Anzac Day Expenses Reimbursement Policy (Adopted by Council ceremonies or opening a school fete, where they 19 November 2008 - Committee of the Council - 11 and have been formally invited in their capacity as 12 November 2008 - Clause 21) Councillor to undertake the official duty

• Attending public meetings, annual meetings 2. Purpose or presentation dinners where invited as The purpose of this policy is to set the parameters a Councillor to authorise the payment of reasonable expenses • Attending meetings of community groups incurred, or to be incurred, by councillors; and provide (Scout Associations, Progress Associations, etc) facilities, including, administrative support staff, to assist where invited to speak about Council programs or councillors to discharge their duties and responsibilities, initiatives having regard to local circumstances. • Private meetings with constituents (residents, ratepayers, community groups, developers, etc), 3. Organisational scope where arranged through official Council channels This policy applies to the Mayor, Deputy Mayor and and details of discussions are documented in Councillors and is made pursuant to Section 236B official records or diaries. and 250AR of the Local Government Act 1993 and the principles approved by the Minister. Attending or participating in a community event, community group, or being a representative on a board as a community member is not regarded as ‘Official 4. Policy statement Council Business’. This policy, when approved by the chief executive Councillors: includes the Mayor, Deputy Mayor and of the Department and adopted by Council, other Councillors, unless specifically identified. authorises the: Expense: Expenses are payments reasonably incurred, • Payment of reasonable expenses incurred, or or to be incurred, in connection with Councillors to be incurred, by Councillors; and Provision of discharging their duties. The expenses may be either facilities, including, administrative support staff, to reimbursed to Councillors or paid direct by Council for assist Councillors in discharging their duties and something that is deemed a necessary cost or charge. responsibilities. Expenses are not included as remuneration. • Where Councillors have special needs or suffer from some form of impairment, the Facility: Facilities provided to Councillors that are the ‘tools of trade’ and required to enable them to • special access and equity needs of the Councillor perform their duties with relative ease and at a standard may result in the provision of modified furniture, appropriate to fulfil the community expectation for voice-activated software, larger computer monitors, their role. or other changes to this policy as required. Private vehicle use: Use of a vehicle for other than official Council business is private use. 5. Definitions Professional development: encompasses all types Approved: means approved by Council resolution. of facilitated learning opportunities, for example, Chief Executive of the department: the Director training provided by a Government Department (e.g. General of the Department of Local Government, Sport Department of Local Government), or Industry Body and Recreation. (e.g. Local Government Association of Queensland).

Council business: Activities conducted on behalf of Purchase of limited private use rights: In lieu Council where a Councillor is required to undertake of keeping a vehicle log and paying Council for any certain tasks to satisfy legislative requirements, perform private use, based on actual kilometres, Councillors ceremonial activities, or achieve business objectives of may purchase the rights to the limited private use of the Council. Council business should result in a benefit the Council vehicle at a cost of $2,800 pa (indexed to being achieved either for the local government and/or the CPI). This cost has been determined by estimating the local community. a fair value for private use, based on the variable costs in operating a vehicle (fuel, general and routine This includes: maintenance and tyres) plus increased depreciation.

• Preparing for, attending and participating in Reasonable: Councils must make sound judgements Council meetings, committee meetings and consider what is prudent, responsible and acceptable to the community when determining • workshops, deputations and inspections reasonable levels of facilities and expenditure.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 55 6. Principles Vehicles: Councillors may elect to either (but not both): This policy has been written to be compliant with the four underpinning principles set by the Minister, i.e. • Use their personal vehicle for Council business and claim an allowance for the kilometres • Use of Public Money in the public interest by travelled. Such allowance will be the rate set by responsible budgeting and accounting the Australian Taxation Office for vehicle usage and based on a log book kept by the Councillor • Fair and reasonable allocation of Council resources that records the purpose of each trip for business (allowances, facilities and other benefits) purposes; or • Transparent decision making by public disclosure • Use a Council-provided vehicle (see section 7.5.5 of policy and resolutions; and and the definition of ’Purchase of Limited Private • Accountability for expenditure and use of facilities Use Rights’ in section 5). through full justification and acquittal. Travel bookings: All Councillor travel approved by this policy or Council will be booked and paid for by 7. Policy content Council. Economy class is to be used where possible although business class may be approved in certain 7.1 Commencement circumstances (e.g. where the duration of the flight exceeds 2 hours). Airline tickets will not be transferable The Toowoomba Regional Council Expenses and will only be procured for the Councillor’s travel Reimbursement Policy will take effect immediately it on Council business. They will not be used to offset is adopted by Council (following the endorsement of other unapproved expenses. (e.g. cost of partner or the Chief Executive of the Department). The previous spouse accompanying the Councillor.) Travel Insurance Expenses Reimbursement Policy will cease to have is payable to cover Councillors travelling for official effect at this date. Council businesses.

7.2 Limitation Notes: This policy deals with reimbursement of expenses • Requests for travel should be made in sufficient or provision of a facility to Councillors, but does not time to take advantage of discounts and gain apply to: access to the widest range of flights • The conduct of Civic Functions; or • Councillors are to travel via the most direct route, • The remuneration of Councillors. using the most economical and efficient mode 7.3 General entitlement of transport

Councillors are entitled to be reimbursed for expenses • All fines incurred while travelling in either Council incurred in representing Council and provided with or privately owned vehicles when attending to facilities to assist them in undertaking their duties, as Council business, will be the responsibility of the described below. Councillor incurring the fine. This does not include toll fees 7.4 Expenses • Councillors will be responsible for all private costs 7.4.1 Professional development (e.g. applying for or renewing their passports).

Entitlement: Council encourages Councillors 7.4.3 Accommodation to undertake relevant professional development Entitlement: Councillors will be entitled to stay at and will pay for / reimburse Councillors for all motel / hotel accommodation (3 or 4 star) when it is associated reasonable costs (including registration, considered necessary to attend to Council business, travel, accommodation, meals, etc) without further or where it is not practical for the Councillor to return authorisation, where the activity is: home for the night. When attending conferences or • associated with the Councillor’s portfolio; or workshops, accommodation will be booked and paid • organised by a Government Agency or an Industry for by Council and will, where practical, take advantage body (e.g. LGAQ, ALGWA, COMSEQ). of the package provided by conference organisers Where Professional Development opportunities arise unless Council has granted prior approval. that are outside of these parameters, Council approval Where accommodation is provided outside of the will be required. Note: Registrations should be made region, Council may pay an additional Incidental in sufficient time to take advantage of any ‘early bird’ Daily Allowance of $20.00 per day to cover additional discounts. incidental costs (phone calls, newspapers, laundry / dry cleaning, etc) incurred while Councillors are travelling 7.4.2 Travel costs and staying away from home overnight.

Entitlement: Councillors are entitled to be reimbursed Note: Requests for accommodation should be for all travel costs (including local, regional, intrastate made in sufficient time to take advantage of discounts and overseas travel) when representing Council on and gain access to the widest range Council business. of accommodation options.

56 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 7.4.4 Meals 7.5.2 Maintenance costs of any Council-owned equipment. Entitlement: Councillors are entitled to be reimbursed for the cost of a meal when travelling or attending to Responsibility: Council will be responsible for the Council business outside the region. Provided: ongoing maintenance and reasonable wear and tear costs of Council-owned equipment that is supplied to • The Councillor incurs the cost personally; and Councillors for official business use. This includes the • The meal was not provided: replacement of any facilities that fall under Council’s asset replacement program. • As part of the registration costs of the activity/ event; or 7.5.3 Personal Protective Equipment (PPE)

• During a funded flight. Entitlement: Councillors will be provided with all 7.4.5 Hospitality expenses necessary safety equipment (to the standard supplied to employees). Councillors are expected to observe Entitlement: Councillors are entitled for the appropriate Workplace Health and Safety measures reimbursement of reasonable costs to entertain when at any workplace. dignitaries. Hospitality expenses may include meals, appropriate gifts and reasonable alcohol. 7.5.4 Identification, uniform, etc.

7.4.6 Transfer expenses Councillors will be provided with all necessary identity cards, access cards, name badges and be eligible to Entitlement: Councillors are entitled to be reimbursed participate in the same Corporate Wardrobe scheme and for transfer costs (e.g. taxi fares or reimbursement of under the same conditions that applies to employees. public transport tickets (rail, ferry, bus) associated with travelling for Council business. 7.5.5 Vehicle 7.5 Provision of facilities Entitlement: Councillors may elect to: 7.5.1 Administrative tools and access to Council office amenities • Use their own vehicle for Council business (see section 7.1.2); or Entitlement: Councillors are entitled to use the following facilities: • Purchase the limited private usage of a Council- provided vehicle and execute a Private Use of • Desk, shared office space and meeting rooms in the Motor Vehicle Agreement with Council as attached City Hall, together with ‘hot desk’ facilities at each as Schedule A. service centre (bookings need to be made through the Manager of the Service Centre) The maximum value of the vehicle provided by Council will be: • Shared access to office equipment, including a multi-purpose photocopier/scanner/printer • For Councillors – to the value equivalent to the value set for Council Managers; and • Home office facilities including multi-function device (photocopier/scanner/printer) • For the Mayor – to the value equivalent to the value • Secretarial support; and set for Council Executive officers.

• A choice of: Note:

• a mobile phone or Blackberry (with or without a • Councillors are to travel via the most direct route, hands-free kit); and using the most economical and efficient mode of transport although incidental deviations are • Laptop computer or desktop computer, both with allowed where the internet access. • distance travelled is not material; and Notes: • All fines incurred while travelling in either Council • Provision of a Council-provided computer is or privately owned vehicles when attending to primarily for Council business, however, incidental Council business, will be the responsibility of the private use is allowed where usage complies with Councillor incurring the fine. This does not include Council’s policies; toll fees. • Private phone calls, text messages, etc shall be reimbursed by the Councillor at the rates charged 7.5.6 Operating (including fuel costs) to Council; and Entitlement: Council will meet all operating costs and • Council facilities (including stationery) are not to be provide fuel cards for Councillors driving a Council- used for personal or political purposes. owned vehicle.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 57 7.5.7 Car parking amenities 8 . Claims for reimbursement Entitlement: Councillors will be provided with car All claims for reimbursement of expenses will be made parking at the rear of the City Hall, Toowoomba. on the approved form and submitted with original Where parking outside the region on Council business, receipts to the Manager, Governance Councillors will be entitled to be reimbursed for and Administration. the cost of parking upon making a claim on the Where claims are certified by a Councillor as complying approved form. with this policy, no other authorisation for payment will be necessary. Claims must be presented within 7.5.8 Insurance cover 3 months of incurring the expense and claims will be paid on a monthly basis. Responsibility: The Council has included Councillors in its Workers’ Compensation coverage (Local Government Self Insurance Scheme – LGW) that 9. Councillors accept full responsibility provides for a level of benefits substantially the same for the accuracy of each claim as for an employee of Council with the exception Failure to comply with this policy, falsifying claims or that elected members can not bring a common law logbooks or the misuse of facilities may breach the damages action against Council under the Worker’s Councillors Code of Conduct and / or represent an Compensation & Rehabilitation Act 2003. offence under the Criminal Code and may be referred to the Crime and Misconduct Commission. This covers Councillors while they are engaged in official Council business. Activities would include, but are not limited to, such things as attending a 10 . Cancellation of travel and accommodation Council meeting or workshop, representing Council If a Councillor, without reasonable excuse, cancels travel at an official function, or attending activities at or accommodation previously planned and booked another Council or location that is relevant to by the Council, then the Councillor will be required their elected position. to reimburse to the Council, all costs that are not recoverable through travel insurance. Benefits under this scheme would consider the employment circumstances of any injured person. Should the Councillor be self-employed or undertake 11. Reporting other work for an employer other than a Council and The Manager, Governance and Administration shall was incapacitated for one or both occupations then submit quarterly reports to Councillors on all categories regard would also be had for the actual income loss of expenses reimbursed to Councillors. A report and a rate of pay calculated in terms of the Act. summarising all expenditure in relation to this policy shall be included in the Council’s Annual Report. The Council has included Councillors under its Professional Indemnity policy (Local Government Mutual – LGM).

Facility/device provided for Councillor use (as required by S186 (b) of the Local Government Regulation 2012)

FACILITY/DEVICE PROVIDED FOR COUNCILLOR USE

Councillor Laptop Computer SmartPhone iPad Printer

Antonio, Paul Cr Yes Yes Yes Williams, Mike Cr Yes Yes Yes Cahill, Bill Cr Yes Yes Yes Yes Glasheen, Anne Cr Yes Yes Yes Yes Scotney, Ros Cr Yes Yes Yes Taylor, Carol Cr Yes Yes Yes Sommerfield, Nancy Cr Yes Yes Yes McDonald, Geoff Cr Yes Yes Yes Gouldson, John Cr Yes Yes Yes Tait, Chris Cr Yes Yes Yes Englart, Sue Cr Yes Yes Yes

58 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Orders and recommendations Made under s180 or 181 of the Act (Inappropriate Conduct of a Councillor and Disciplinary action taken): Nil

ORDERS AND RECOMMENDATIONS

Complaints about the conduct or performance of Councillors Number (as required by S186 of the Local Government Regulation 2012).

Orders and recommendations made under section 180(2) or (4) of the Act, 0 and orders made under section 181 of the Act. the name of each councillor for whom an order or recommendation was made under N/A section 180 of the Act or an order was made under section 181 of the Act. Description of the misconduct or inappropriate conduct engaged in by N/A each of the councillors. Summary of the order or recommendation made for each councillor. N/A Complaints about the conduct or performance of councillors for which no further action 0 was taken under section 176C(2) of the Act. Complaints referred to the Chief Executive Officer. 0 Executive under section 176C(3)(a)(i) of the Act. 0 Complaints referred to the mayor under section 176C(3)(a)(ii) or (b)(i) of the Act. 0 Complaints referred to the department’s Chief Executive under section 176C(4)(a) of the Act 0 Complaints assessed by the Chief Executive officer as being about official misconduct. 0 Complaints heard by a regional conduct review panel. 0 Complaints heard by the tribunal. 0 Complaints to which section 176C(6) of the Act applied. 0

Competitive neutrality complaints

COMPETITIVE NEUTRALITY COMPLAINTS

Investigation References Referee QCA Business Activities Notices Given to QCA Recommendations Recommentdations Accredited

Nil Nil Nil Nil Type 2 Water & Wastewater Roads Private Works Type 3 Fleet & Plant Services Building Certification Aquatic Facilities Quarries Cemeteries Refuse Collection Waste Management Areodromes Laboratory Services

EXECUTIVE REMUNERATION Number of Senior contracted staff Total remuneration range* 1 $300,000 - $350,000 5 $200,000 - $250,000 1 $100,000 - $150,000 1 (Part year remuneration) $50,000 - $100,000 *The total remuneration includes annual salary, superannuation and non-cash benefits.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 59 Overseas travel (as required by S188 of the Local Government Regulation 2012) OVERSEAS TRAVEL Name Position Destination Purpose Cost Antonio, Paul Cr Mayor Wanganui (New Zealand) Promote Sister City Relationships $1,803.51

Williams, Mike Cr Deputy Mayor Guangzhou (China) Economic Development $3,357.60

Wanganui (New Zealand) Promote Sister City Relationships $2,403.91

Glasheen, Anne Cr Councillor Paju Chamber of Commerce Paju (Korea) $2,308.63 & Industry Business Expo

Taylor, Carol Cr Councillor Wanganui (New Zealand) Promote Sister City Relationships $1,957.72

Sommerfield, Nancy Cr Councillor Wanganui (New Zealand) Promote Sister City Relationships $1,764.03 Principal Economic Garmany, Shamus Guangzhou (China) Economic Development $3,456.78 Development Officer International Morey, Jane Wanganui (New Zealand) Promote Sister City Relationships Secretariat $4,309.79 Sports Tourism Allpass, Andrew Wanganui (New Zealand) Promote Sister City Relationships Officer

General Manager Paju Chamber of Commerce Somers, Stewart Paju (Korea) $2,325.35 Planning & & Industry Business Expo Development Total Cost $23,687.32

Council meeting attendance

COUNCIL MEETING ATTENDANCE

MEETINGS ATTENDED ABSENT

PARTIAL OFFICIAL ILL OR ATTENDANCE ORDINARY/ COMMITTEE COUNCIL PERSONAL – COMMITTEE SPECIAL BUSINESS REASONS MEEETING Cr. R.P. Antonio 51 0 17 5 0

Cr. W.W. Cahill 48 0 16 3 6

Cr. S.M. Englart 48 0 16 0 9

Cr. A.C. Glasheen 49 1 17 1 5

Cr. J.J. Gouldson 48 0 18 2 5

Cr. G.C. McDonald 55 0 17 0 1

Cr. R.S. Scotney 53 2 17 0 1

Cr. N.M. Sommerfield 53 0 17 30

Cr. C.R. Tait 55 0 18 0 0

Cr. C.E. Taylor 51 0 15 5 2

Cr. M.A. Williams 55 0 16 1 1 Total Meetings 55 18

60 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Complaints made, resolved and unresolved

Administrative Action Complaints Processed 2011/12 & 2012/13 Unresolved 2011/12 Made 2012/13 Resolved 2012/13 Unresolved 2012/13 147 420 557 10

Toowoomba Regional Council’s commitment to dealing with administrative action complaints Council is committed to providing the highest quality and level of service to the community and welcomes feedback. Administrative action complaints encompass all complaints made to Council about its administrative actions. Council is committed to dealing fairly with all complaints in a timely manner and at the local level where possible. Internal reviews of Administrative Actions are undertaken at 2 levels, with the initial review undertaken by the operational area (predominantly undertaken by the Environmental Health Branch (involving Regulated Parking and Animal Management) with the Governance Branch undertaking subsequent reviews and reviews of Information Privacy, Right to Information applications and other matters. The Branch ensures fair outcomes are delivered without the need for complainants to resort to the court system.

Implementation of the complaints management process and an assessment of performance Council’s performance in resolving administrative action complaints has been significant. A total of 227,026 contacts were made to Council in 2012-13, of these, 0.25% were administrative action complaints. Of the 560 administrative action complaints processed in the 2012/13 year, 98% were resolved with 43% substantiated. The substantial reduction in the number of unresolved (carry-over complaints) from 147 to just 7 has been particularly pleasing. The investigation of administrative action complaints contribute to the improvement of Council services through the identification of systemic issues and recommendations to the relevant areas of Council to remedy the shortcomings. The statistics demonstrate Toowoomba Regional Council’s commitment to undertaking reviews of administrative actions in an objective and independent manner. Where complaints are substantiated, Council endeavours to learn from its mistakes.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 61 62 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Community Financial Report 2012/13

CONTENTS Purpose of the Community Financial Report 63 Highlights from 2012/13 63 Statement of Comprehensive Income 63 What we earned 64 What we have spent 64 Statement of Financial Position 64 What do we own? 64 What did we spend on assets? 65 What do we owe? 65 Statement of Changes of Equity 65 Statement of Cash Flows 65 Financial Sustainability Measures 66 Summary 67

Purpose of the Community Financial Report The purpose of the Community Financial Report is to give community members a plain English summary of Council’s Financial Statements. In accordance with Section 179 of Local Government Regulation 2012 the Statement of Comprehensive Income report focuses on: The Statement of Comprehensive Income is often • Statement of Comprehensive Income referred to as the Profit and Loss statement. This • Statement of Financial Position statement shows what Council has earned (revenue) and • Statement of Changes in Equity what Council has spent (expenses) throughout the year. • Statement of Cash Flows In summary, Council’s result for the reporting period was: • Measures of Financial Sustainability What we have earned (Revenue) $’000’s Council’s Financial Statements must be certified by Recurrent Revenue 260,099 both the Mayor and the Chief Executive Officer as Capital Revenue 104,523 “presenting fairly” the Council’s financial results for the year. They are also required to be adopted by Council – Total Revenue 364,622 ensuring both responsibility for and ownership of the Financial Statements by management and What we have spent (Expenses) $’000’s elected representatives. Recurrent Expenses 260,279 Capital Expenses 2,075 Highlights from 2012/13 Total Expenses 262,354 Toowoomba Regional Council continued to deliver sound financial results for the 2012/13 year. Some Net Result 102,268 highlights of our results were: The Net Result represents the money that is available • Increase in capital funding for flood repair works for council to upgrade or build new community assets, • Completion of several major flood recovery projects. either now or in the future.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 63 What we have earned Statement of Financial Position There are two main categories of revenue for the The Statement of Financial Position is often referred financial year – recurrent revenue and capital revenue. to as the Balance Sheet and is a snapshot of the financial position of Council at 30 June. The statement Rate and levies 52% measures what Council owns (Assets) and what Council Fees and charges 9% owes (Liabilities). The difference between these two Contract works 3% components is the net wealth (Equity) of Council. What we have earned Grant, subsidies Assets and Liabilities are divided between Current and and contributions 5% Non-Current. Generally, an item is classified as current Interest revenue 2% if it is expected to be realised or settled within twelve Capital revenue 29% months. Other items are classified as Non-Current. Recurrent Revenue In summary, Council’s position at 30 June 2013 was: Council’s recurrent revenue is money raised that is used $’000’s to fund the operations of council. Recurrent revenue is Current Assets 199,979 the major source of revenue for Council and primarily Non-Current Assets 3,844,757 earned from sources such as, Rates and Levies, and Fees and Charges. Total Assets (What We Own) 4,044,736

Council also aims to maximise its revenue from other Current Liabilities 52,869 sources by actively pursuing grants and subsidies from the state and federal government and investing surplus Non-Current Liabilities 247,369 funds to earn interest. Total Liabilities (What We Owe) 300,238

Capital Revenue Total Community Equity 3,744,498 Council’s capital revenue is used to construct council’s assets now and in the future. Council’s capital revenue consists of grants, contributions and subsidies, developer contributions as well as gain on the disposal of fixed assets.

Total revenue for the year increased by $47m from the previous year. The main reason for this increase is the increase in Capital Grants received to fund major flood repairs from the 2011 flood event, and 2013 extreme weather and flood events.

What we have spent What do we own? Council incurs both recurrent expenses and capital Most of Council’s current assets are cash and other expenses. receivables.

Recurrent expenses are the main expense of Council Council’s major asset class is Property, Plant & and represent the cost of providing services, operating Equipment. These assets make up 95% of Council’s facilities and maintaining assets. These include assets. Infrastructure assets such as roads, drainage, employee costs, materials and services, finance costs water and wastewater make up the bulk of the and depreciation. property, plant and equipment and provide benefit direct to the community.

Employee costs 38% Cash assets and cash Recurrent Materials and services 31% equivalents 4% expenses Finance costs 4% What are our Trade and other Depreciation assets receivables 1% and amortisation 27% Property, plant and equipment 95%

Depreciation and Amortisation Expense makes up approximately one quarter of Council’s operating expenses. This item represents an allocation of the use or deterioration of the community assets over the expected life of the assets. How Council performs in managing its assets is explained in the Statement of Financial Position and Measures of Financial Sustainability sections of this report.

64 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL What did we spend on assets? Statement of Changes in Equity What we spend to build or enhance our assets is The difference between assets and liabilities is the total reflected in the Statement of Financial Position as it community equity or the net wealth of the Council. increases the value of our assets. The Statement of Changes in Equity shows the overall change in Council’s “net wealth” over the year. At 30 A significant amount of council’s activities are focussed June 2013 this was an amount of $3.744m (that is on the maintenance, upgrade and construction of Assets of $4.044m less Liabilities of $0.3m) fixed assets to ensure there are adequate infrastructure services for community use. These activities are This community equity consists of an asset revaluation undertaken in accordance with Council’s long-term asset reserve and retained surpluses. management plan which covers a period of ten years. The asset revaluation surplus comprises amounts This year council spent $193.3m to renew, upgrade and representing the change in the value of Council’s assets build new assets for the community. The graph below over time. shows the how the money was spent on different types of assets. Council’s retained surplus represents amounts available to be invested into assets (now or in the future) to Land 1% provide services to the community. The net result from Buildings 2% the statement of comprehensive income changes the balance of the retained surplus. Plant & equipment 7% Capital Road & bridge network 62% Expenditure by Asset Class Water 3% Wastewater 20% Drainage 2% Other assets 3% Equity Investment in capital assets 60% (Net Wealth) Asset revaluation surplus 40%

In accordance with Australian Accounting Standards, Council records assets at their fair value. Re-valuations of each asset class are undertaken on a regular basis to ensure the accurate recording of fair value. In 2013 this resulted in a revaluation surplus of $94.8m which was included as Other Comprehensive Income on the Statement of Comprehensive Income. This is a non-cash adjustment to reflect the increase in asset values.

What do we owe? Statement of Cash Flows Liabilities are the amounts councils owes to suppliers, The Statement of Cash Flows shows where Council’s employees and lenders both now and in the future. This cash came from and how it was spent throughout the also includes provisions for future entitlements which year. This differs from the earlier reports as “non-cash comprise of money which we will pay our employees items”, such as depreciation and donated assets, are in the future (e.g. Long Service Leave) and money set excluded. aside to fund the future rehabilitation of our refuse sites and quarry pits. $’000’s The majority of council’s liabilities are non-current and Opening Balance 171,292 represent long-term loans taken out to undertake Plus Cash Received 410,420 the construction and purchase of community assets. Less Cash Spent 417,727 Council reviews its loan requirements on an annual basis. Total liabilities as at 30 June 2013 were $0.3m. Cash Available at End of Year 163,985

Cash available is used to invest and utilise for future outlays. Council’s cash is wisely invested so the interest Trade & other payables 10% earned contributes to the funding of operational What do Provisions 37% expenses. we owe Borrowings 52% Other 1%

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 65 Financial Sustainability Measures Financial sustainability is achieved by Council being able to maintain its infrastructure and remain financially viable over the long-term. Section 169 (5) of Local Government Regulation 2012 outlines the three measures of financial sustainability that Council must publish. In addition, the Department of Local Government, Community Recovery and Resilience sets target ranges for each of these measures.

1. Asset Sustainability Ratio

Indicates if Council is renewing or replacing existing infrastructure assets at the same rate that the assets are wearing out. The target for 2013 is a ratio of greater than 90%. If the target ratio is not reached over the medium to long term, Council may face a reduction in the asset’s service levels and/or useful lives which would create a burden on future ratepayers.

Asset Sustainability Ratio Target Range Asset Sustainability Ratio 225.00% 214.90% 200.00% 194.60% 175.00%

150.00%

125.00%

100.00%

75.00% 85.20% 50.00% 67.30% 63.00% 64.20% 66.40% 65.20% 55.80% 54.60% 25.00%

0.00% 2012/3 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Council’s result of 194.6% indicates Council is investing in large infrastructure projects – such as the major wastewater pipe lines from Cambooya and Oakey to Toowoomba; other capital projects delayed since amalgamation; and the major flood reconstruction program. This is a deliberate strategy to replace essential assets and the performance consequences are understood.

2. Net Financial Liabilities Ratio

Indicates the extent to which operating revenue raised by Council can cover what it owes (i.e net liabilities). The target ratio over the long-term is less than 60%. A ratio above the target level over a long-term is indicative of a Council that is undertaking or has undertaken significant infrastructure projects. Ratios over the target levels for a long period can be maintained in Council’s with sound financial management systems and the ability to service current and projected debt levels.

Net Financial Liabilities Target Range is less than 60% Net Financial Liabilities Ratio 100.00% 91.60% 87.10% 82.60% 80.00% 77.60% 76.70% 72.30%

60.00% 63.60% 61.60% 48.90% 40.00% 38.60%

20.00%

0.00% 2012/3 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Council’s result of 38.6% is within the target range and indicates that available operating revenues are available to meet liabilities.

66 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 3. Operating Surplus Ratio

Indicates the extent to which revenue raised by Council (excludes capital grants and contributions) covers it’s operational expenses. The target range for this ratio is between 0% and 10%. Should the target ratio not be maintained over the medium to long-term, Council may be unable to withstand unexpected financial events without needing to significantly increase rates, borrow money or reduce capital expenditure programs.

Operating Surplus Ratio Target Range = 0% to 10% Operating Surplus Ratio

7.00%

6.00%

5.00%

4.00%

3.00%

2.00% 2.90%2.90% 2.90% 2.60% 1.80% 1.50% 1.00% 1.20% 1.60% 0.00% 0.20% -0.07% -1.00% 2012/3 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Council’s negative result of 0.07% for the current year shows that Council’s operating revenue was slightly less than the amount required to cover operating expenses in the current year.

Summary The financial statements indicate that Council has finished the 2012/13 financial year in a financial position which was a slight improvement on the budgeted position. Toowoomba Regional Council will continue a commitment to sound financial management through long-term financial planning to ensure the success and stability of the region.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 67 68 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Legislative Information 2012/13

CONTENTS Statement of Comprehensive Income 70 Statement of Financial Position 71 Statement of Changes in Equity 72 Statement of Cash Flows 73 Notes to the financial statements 74 1 Significant accounting policies 74 2 (a) Components of council functions 86 2 (b) Analysis of results by function 87 3 Revenue analysis 88 4 Grants, subsidies, contributions and donations 88 5 Capital income 89 6 Gain (loss) on the disposal of capital assets 89 7 Employee benefits 89 8 Materials and services 90 9 Finance costs 90 10 Depreciation and amortisation 90 11 Capital expenses 91 12 Loss on write-off of capital assets 91 13 Cash assets and cash equivalents 91 14 Trade and other receivables 92 15 Inventories 92 16 Non-current assets classified as held for sale 92 17 Equity investments 92 18 Property, plant and equipment 93 19 Intangible assets 101 20 Trade and other payables 101 21 Provisions 101 22 Borrowings 102 23 Other liabilities 103 24 Asset revaluation surplus 103 25 Retained surplus 104 26 Commitments for expenditure 104 27 Events after balance date 104 28 Contingent liabilities 105 29 Superannuation 105 30 Trust funds 106 31 Reconciliation of net result for the year to net cash 106 inflow (outflow) from operating activities 32 Controlled entities 107 33 Financial Instruments 108 34 National competition policy 112 Management Certificate 115 Independent Audit Report 116 Sustainability Statements 118

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 69 Statement of Comprehensive Income For the year ended 30 June 2013

2013 2012 Note $’000 $’000 Income Revenue Recurrent revenue Rates and levies 3 (a) 190,940 178,535 Fees and charges 3 (b) 32,928 32,830 Interest received 3 (c) 8,270 10,393 Sales of contract and recoverable works 3 (d) 9,263 20,801 Other recurrent income 3 (e) 487 2,445 Grants, subsidies, contributions and donations 4 (i) 18,211 26,822 Total operating revenue 260,099 271,826

Capital revenue Grants, subsidies, contributions and donations 4 (ii) 104,104 45,543 104,104 45,543 Total revenue 364,203 317,369

Capital income 5 419 4 Total income 2 364,622 317,374

Expenses Recurrent expenses Employee benefits 7 (99,292) (97,270) Materials and services 8 (80,396) (82,683) Finance costs 9 (9,358) (9,458) Depreciation and amortisation 10 (71,233) (68,712)

Total operating expenses (260,279) (258,123) Capital expenses

Other capital expenses 11 (2,075) (2,839) Total expenses (262,354) (260,962)

Net result 102,268 56,412 Other comprehensive income Increase in asset revaluation surplus 59,810 318,696 Total other comprehensive income 59,810 318,696

Total comprehensive income for the period 162,078 375,108

The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.

70 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Statement of Financial Position As at 30 June 2013

2013 2012 Note $’000 $’000 Current Assets Cash assets and cash equivalents 13 163,985 171,292 Trade and other receivables 14 29,159 38,175 Inventories 15 6,691 3,885 199,835 213,352 Non-current assets classified as held for sale 16 144 1,173 199,979 214,525 Non-current Assets Equity investments 17 20 20 Property, plant and equipment 18 (a) 3,839,825 3,570,498 Intangible assets 19 4,912 3,084 3,844,757 3,573,602 TOTAL ASSETS 4,044,736 3,788,127

Current Liabilities Trade and other payables 20 27,845 27,512 Provisions 21 13,042 10,163 Borrowings 22 9,320 8,305 Other 23 2,662 2,355 52,869 48,335 Non-current Liabilities Trade and other payables 20 1,458 1,437 Provisions 21 99,891 12,507 Borrowings 22 146,020 143,429 247,369 157,373 TOTAL LIABILITIES 300,239 205,708

NET COMMUNITY ASSETS 3,744,498 3,582,419

Community Equity Council Capital: Asset revaluation surplus 24 1,485,974 1,426,164 Retained surplus 25 2,258,524 2,156,255

TOTAL COMMUNITY EQUITY 3,744,498 3,582,419

The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 71 Statement of Changes in Equity For the year ended 30 June 2013

Asset revaluation Retained surplus Total surplus Note Note 25 Note 24 2013 2012 2012 2011 2012 2011 $’000 $’000 $’000 $’000 $’000 $’000 Balance at beginning of period 3,582,420 3,207,311 2,156,256 2,099,843 1,426,164 1,107,467 Corrections to opening balances - - - - - Restated opening balances 3,582,420 3,207,311 2,156,256 2,099,843 1,426,164 1,107,467 Net result 102,268 56,412 102,268 56,412 Other comprehensive income for the period Revaluations: Property, plant & equipment 18 59,810 318,697 59,810 318,697

Total comprehensive income for period 162,078 375,108 102,268 56,412 59,810 318,697

Balance at end of period 3,744,498 3,582,419 2,258,524 2,156,255 1,485,974 1,426,164

The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.

72 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Statement of Cash Flows For the year ended 30 June 2013

2013 2012 Note $’000 $’000 Cash flows from operating activities: Receipts Receipts from customers 286,000 269,906 Interest received 9,995 9,385

Payments Payments to suppliers (206,014) (187,632) Interest expense (9,079) (8,637) Net cash inflow (outflow) from operating activities 31 80,902 83,022

Cash flows from investing activities: Grants, subsidies and contributions for capital acquisitions: Commonwealth government grants 4 3,357 3,169 State Government subsidies & grants 4 87,521 37,176 Capital contributions 4 6,241 3,472 Payments for property, plant and equipment (190,978) (268,617) Payments for intangible assets (2,341) (1,461) Net transfer (to) from cash investments - 112,200 Proceeds from sale of property plant and equipment 6 4,384 3,255 Net cash inflow (outflow) from investing activities (91,816) (110,806)

Cash flows from financing activities: Proceeds from borrowings 22 12,922 65,705 Repayment of borrowings 22 (9,315) (5,321) Net cash inflow (outflow) from financing activities 3,607 60,384

Net increase (decrease) in cash and cash equivalents held (7,307) 32,600 Cash and cash equivalents at beginning of the financial year 171,292 138,692 Cash and cash equivalents at end of the financial year 13 163,985 171,292

The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 73 Notes to the Financial Statements For the year ended 30 June 2013

1 Significant accounting policies

1. 1 Basis of preparation These general purpose financial statements are for the period 1 July 2012 to 30 June 2013 and have been prepared in compliance with the requirements of the Local Government Act 2009 and the Local Government Regulation 2012. Consequently, these financial statements have been prepared in accordance with all relevant Australian Accounting Standards, Australian Accounting Interpretations and other authoritative pronouncements issued by the Australian Accounting Standards Board. These financial statements have been prepared under the historical cost convention except for the revaluation of certain non-current assets. 1. 2 Statement of compliance These general purpose financial statements comply with all accounting standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to Council’s operations and effective for the current reporting period. Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied, these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation and impairment gains and losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue. 1. 3 Constitution The Toowoomba Regional Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia. 1. 4 Date of authorisation The financial statements are authorised for issue on the date it was submitted to the Auditors for final signature. This is the date the management certificate is signed. 1. 5 Currency The Council uses the Australian dollar as its functional currency and its presentation currency. 1. 6 Adoption of new and revised Accounting Standards In the current year, Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council’s accounting policies. In the current year, Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised Standards and Interpretations has resulted in the following changes to Council’s accounting policies: At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. Effective for annual report periods beginning on are after: AASB 9 Financial Instruments (December 2009) 1 January 2015 AASB 10 Consolidated Financial Statements 1 January 2013 AASB 12 Disclosure of interests in other entities 1 January 2013 AASB 13 Fair Value Measurement 1 January 2013 AASB 119 Employee benefits (completely replaces existing standard) 1 January 2013 AASB 127 Separate Financial Statements (replaces the existing standard together with AASB 10) 1 January 2013 AASB 128 Investments in Associates and Joint Ventures (replaces the existing standard) 1 January 2013 AASB 1053 Application of Tiers of Australian Accounting Standards 1 July 2013 AASB 1055 Budgetary Reporting 1 July 2014 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December 2009) 1 January 2015

74 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements 1 July 2013 AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) 1 January 2015 AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters 1 January 2013 AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements 1 July 2013 AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements 1 July 2013 AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements 1 July 2013 AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards 1 January 2013 AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 1 January 2013 AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) 1 January 2013 AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements 1 July 2013 AASB 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements [AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141] 1 July 2013 AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities 1 January 2013 AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132] 1 January 2014 AASB 2012-4 Amendments to Australian Accounting Standards – Government Loans [AASB 1] 1 January 2013 AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle [AASB 1, AASB 101, AASB 116, AASB 132 & AASB 134 and Interpretation 2] 1 January 2013 AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures [AASB 9, AASB 2009-11, AASB 2010-7, AASB 2011-7 & AASB 2011-8] 1 January 2013 AASB 2012-7 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 7, AASB 12, AASB 101 & AASB 127] 1 July 2013 AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039 1 January 2013 AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments 1 January 2013 [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Interpretation 12] AASB 2012-11 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements and Other Amendments 1 July 2013 [AASB 1, AASB 2, AASB 8, AASB 10, AASB 107, AASB 128, AASB 133, AASB 134 & AASB 2011-4] AASB 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements 1 July 2014 AASB 9 Financial Instruments (effective from 1 January 2013) AASB 9, which replaces AASB 139 Financial Instruments: Recognition and Measurement, is effective for reporting periods beginning on or after 1 January 2015 and must be applied retrospectively. The main impact of AASB 9 is to change the requirements for the classification, measurement and

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 75 Notes to the Financial Statements For the year ended 30 June 2013

disclosures associated with financial assets. Under the new requirements the four current categories of financial assets stipulated in AASB 139 will be replaced with two measurement categories: fair value and amortised cost and financial assets will only be able to be measured at amortised cost where very specific conditions are met. As a result, Council will be required to measure its financial assets at fair value. Consolidation Standards The following accounting standards apply to Toowoomba Regional Council as from reporting periods beginning on or after 1 January 2014: · AASB 10 Consolidated Financial Statements · AASB 12 Disclosure of Interests in Other Entities · AASB 127 Separate Financial Statements · AASB 128 Investments in Associates and Joint Ventures · AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards These standards aim to improve the accounting requirements for consolidated financial statements, joint arrangements and off balance sheet vehicles. The AASB is planning to amend AASB 10. The amendments are expected to clarify how the IASB’s principles about control of entities should be applied by not-for-profit entities in an Australian context. Hence, the Toowoomba Regional Council is not yet in a position to reliably determine the future implications of these new and revised standards for the Council’s financial statements. AASB10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into another entity’s financial statements. Once the AASB finalises its not-for-profit amendments to AASB 10, Toowoomba Regional Council will reassess the nature of its relationships with other entities, including entities that aren’t currently consolidated. AASB 11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. Subject to any not-for-profit amendments to be made to AASB 11, the Council will need to assess the nature of any arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. AASB 13 Fair Value Measurement (AASB 13) AASB 13 applies to reporting periods beginning on or after 1 January 2013 and will therefore be applied by Council in the 2013-14 reporting period. This standard is not required to be applied retrospectively, therefore there is no impact from the application of AASB 13 to values or other disclosures in the 2012-13 financial statements. The standard sets out a new definition of “fair value”, as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements will apply to all of the Council’s assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The key changes will relate to the level of disclosures required. The Toowoomba Regional Council has commenced reviewing its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13. To the extent that the methodologies don’t comply, the necessary changes will be implemented. While the Council is yet to complete this review, no significant changes are anticipated, based on the fair value methodologies presently used. Therefore, and at this stage, no consequential material impacts are expected for the Toowoomba Regional Council’s property, plant and equipment as from 2013-14. AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. The recognised fair values will be classified according to the following fair value hierarchy that reflects the significance of the inputs used in making these measurements: Level 1 – Fair values that reflect the unadjusted quoted prices in active markets for identical assets or liabilities Level 2 – Fair values that are based on inputs other than quoted prices that are directly or indirectly observable for the asset or liability

76 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

Level 3 – Fair values that are derived from data not observable in a market. To the extent that any fair value measurement for an asset or liability uses data that is not “observable” outside the Council, the amount of information to be disclosed will be relatively greater. Amendments to AASB 119 Employee Benefits A revised version of AASB 119 Employee Benefits applies from reporting periods beginning on or after 1 January 2013. The revised AASB 119 is generally to be applied retrospectively. The revised standard includes changed criteria for accounting for employee benefits as “short-term employee benefits”. Had the Toowoomba Regional Council applied the revised standard this year annual leave currently classified as a ‘short-term benefit’ would have been reclassified as a ‘long-term benefit’. However, no reported amounts would have been amended as the Council already discounts the annual leave liability to present value in respect of amounts not expected to be settled within 12 months (refer Note 1.22). The concept of “termination benefits” is clarified and the recognition criteria for liabilities for termination benefits will be different. If termination benefits meet the time frame criterion for “short-term employee benefits”, they will be measured according to the AASB 119 requirements for “short-term employee benefits”. Otherwise, termination benefits will need to be measured according to the AASB 119 requirements for “other long-term employee benefits”. Under the revised standard, the recognition and measurement of employer obligations for “other long-term employee benefits” will need to be accounted for according to most of the requirements for defined benefit plans. The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets. Toowoomba Regional Council contributes to the Local Government Superannuation Scheme (Qld) as disclosed in note 29. The revised standard will require Toowoomba Regional Council to make additional disclosures regarding the Defined Benefits Fund element of the scheme. The reported results and position of the council will not change on adoption of the other pronouncements as they do not result in any changes to the Council’s existing accounting policies. Adoption will, however, result in changes to information currently disclosed in the financial statements. The council does not intend to adopt any of these pronouncements before their effective dates. 1. 7 Critical accounting judgements and key sources of estimation uncertainty In the application of Council’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and ongoing assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant. Judgements, estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes: Valuation and depreciation of property, plant and equipment – note 1.16 and note 18 Impairment of property, plant and equipment – note 1.19 and note 18 Provisions – note 1.24 and note 21 Valuation of finance leases – note 1.20 Contingencies - note 28 1. 8 Revenue Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier upon unconditional entitlement to the funds. 1. 8 (a) Rates and levies Where rate monies are received prior to the commencement of the rating/levying period, the amount is recognised as revenue in the period in which they are received, otherwise rates are recognised at the commencement of rating period. 1. 8 (b) Grants and subsidies Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in which Council obtains control over them. In the financial year ended 30 June 2012, and previous years, an equivalent amount was transferred from retained earnings to the relevant reserve until the funds were expended. Unspent non-reciprocal capital grants were placed in the Unspent

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 77 Notes to the Financial Statements For the year ended 30 June 2013

capital grants reserve. On 10 May 2013, council passed a resolution to close all existing reserves and account for these restrictions using an internal management accounting system. Internal restrictions that have been placed on council’s cash and cash equivalents are now disclosed in Note 13. Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled. Council does not currently have any reciprocal grants. 1. 8 (c) Non-cash contributions Non-cash contributions with a value in excess of the recognition thresholds, are recognised as revenue and as non-current assets. Non-cash contributions below the thresholds are recorded as revenue and expenses. Physical assets contributed to Council by developers in the form of road works, stormwater, water and wastewater infrastructure and park equipment are recognised as revenue when the development becomes “on maintenance” (i.e. the Council obtains control of the assets and becomes liable for any ongoing maintenance) and there is sufficient data in the form of drawings and plans to determine the approximate specifications and values of such assets. All non-cash contributions are recognised at the fair value of the contribution received on the date of acquisition. 1. 8 (d) Cash contributions Developers also pay infrastructure charges for trunk infrastructure, such as pumping stations, treatment works, mains, sewers and water pollution control works. These infrastructure charges are not within the scope of AASB Interpretation 18 because there is no performance obligation associated with them. Consequently, the infrastructure charges are recognised as income when received. 1. 8 (e) Rental income Rental revenue from investment and other property is recognised as income on a periodic straight line basis over the lease term. 1. 8 (f) Interest and dividends Interest received from term deposits is accrued over the term of the investment. Dividends are recognised once they are formally declared by the directors of the controlled entity. 1. 8 (g) Sales revenue Sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer, generally when the customer has taken undisputed delivery of the goods. The Council generates revenues from a number of services including child care, motor vehicle repairs and contracts for road and earthworks. Revenue from contracts and recoverable works generally comprises a recoupment of material costs together with an hourly charge for use of equipment and employees. Contract revenue and associated costs are recognised by reference to the stage of completion of the contract activity at the reporting date. Revenue is measured at the fair value of consideration received or receivable in relation to that activity. Where consideration is received for the service in advance it is included in other liabilities and is recognised as revenue in the period when the service is performed. 1. 8 (h) Fees and Charges Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon lodgement of the relevant applications or documents, issuing of the infringement notice or when the service is provided. 1. 9 Financial assets and liabilities Council recognises a financial asset or a financial liability in its Statement of Financial Position when, and only when, Council becomes a party to the contractual provisions of the instrument. Toowoomba Regional Council has categorised and measured the financial assets and financial liabilities held at balance date as follows: Financial assets Cash and cash equivalents (note 1.10) Receivables – measured at amortised cost less any impairment (note 1.11)

Financial liabilities Payables – measured at amortised cost (note 1.21) Borrowings – measured at amortised cost (note 1.23)

78 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied. The fair value of financial instruments is determined as follows: The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately. The fair value of borrowings, as disclosed in note 22 to the financial statements, is determined by reference to published price quotations in an active market and/or by reference to pricing models and valuation techniques. It reflects the value of the debt if the Council repaid it in full at balance date. As it is the intention of the Council to hold its borrowings for their full term, no adjustment provision is made in these financial statements. The fair value of trade receivables approximates the amortised cost less any impairment. The fair value of payables approximates the amortised cost. Toowoomba Regional Council does not recognise financial assets or financial liabilities at fair value in the Statement of Financial Position. All other disclosures relating to the measurement and financial risk management of financial instruments are included in note 33. 1. 10 Cash and cash equivalents Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the year end, deposits held at call with financial institutions, other short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. 1. 11 Receivables Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase price / contract price. Settlement of these amounts is required within 30 days from invoice date. The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance costs. The amount of the impairment is the difference between the asset’s carrying amount and the present value of the estimated cash flows discounted at the effective interest rate. All known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously written off in the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is recovered in a subsequent period it is recognised as revenue. Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner’s property to recover outstanding rate debts, Council does not impair any rate receivables. 1. 12 Inventories Stores and raw materials held for resale are valued at the lower of cost and net realisable value and include, where applicable, direct material, direct labour and an appropriate portion of variable and fixed overheads. Costs are assigned on the basis of weighted average cost. Inventories held for distribution (internal consumption) are: • goods to be supplied at no, or nominal, charge, and • goods to be used for the provision of services at no, or nominal, charge. Inventory for distribution is valued at cost, adjusted when applicable for any loss of service potential. Land acquired by Council with the intention of reselling it (with or without further development) is classified as inventory. This land is valued at the lower of cost or net realisable value. As an inventory item, this land held for resale is treated as a current asset. Proceeds from the sale of this land will be recognised as sales revenue on the signing of a valid unconditional contract of sale. 1. 13 Other financial assets Other financial assets are recognised at cost. At present Council does not have any other financial assets. 1. 14 Non-current assets held for sale Items of property, plant and equipment are reclassified as non-current assets as held for sale when the carrying amount of these assets will be recovered principally through a sales transaction rather than continuing use. Non-current assets classified as held for sale are available for immediate sale in their present condition and management believe the sale is highly probable. Non-current assets held

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 79 Notes to the Financial Statements For the year ended 30 June 2013

for sale are measured at the lower of their carrying amount and fair value less cost to sell and are not depreciated. On the eventual sale of these assets a gain or loss is recognised. 1. 15 Investments a. All deposits are reported as cash or cash equivalents. b. Details of Council’s controlled entities, Empire Theatres Pty Ltd, Jondaryan Woolshed Pty Ltd and Toowoomba and Surat Basin Enterprises Pty Ltd are disclosed in Note 32. c. Council’s investment in Yarraman Financial Services is at cost. 1. 16 Property, plant and equipment Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss. Items of plant and equipment with a total value of less than $5,000, and infrastructure assets and buildings with a total value of less than $10,000 are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised. The classes of property plant and equipment recognised by the Council are reported in note 18. (a) Acquisition of assets Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight in, architect’s fees and engineering design fees and all other establishment costs. Property, plant and equipment received in the form of physical contributions, are recognised as assets and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. (b) Capital and operating expenditure Wage and materials expenditure incurred for the acquisition or construction of assets are treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised. (c) Valuation Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB 116 Property, Plant & Equipment. Other plant and equipment and work in progress are measured at cost. Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally qualified valuers to determine the fair value for each class of property, plant and equipment assets at least once every 3 years. This process involves the valuer physically sighting a representative sample of Council assets across all asset classes and making their own assessments of the condition of the assets at the date of inspection. Council uses internal engineers to assess the condition and cost assumptions associated with all infrastructure assets, where appropriate. These assessments are used to form the basis of a management valuation for infrastructure asset classes. With respect to the valuation of the land and improvements and buildings asset classes, management may engage independent, professionally qualified valuers to perform a “desktop” valuation. A desktop valuation involves management providing updated information to the valuer regarding additions, deletions and changes in assumptions such as useful life, residual value and condition rating. The valuer then determines suitable indices which are applied to each of these asset classes. An analysis performed by management has indicated that, on average, the variance between an indexed asset value and the valuation by an independent valuer when performed is not significant and the indices used by Council are sound. Any revaluation increment arising on the revaluation of an asset is credited to the appropriate class of the asset revaluation surplus, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense to the extent it exceeds the balance, if any, in the revaluation surplus of that asset class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.

80 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

Separately identified components of assets are measured on the same basis as the assets to which they relate. Further details in relation to valuers, the methods of valuation and the key assumptions used are disclosed in note 18. (d) Capital work in progress The cost of property, plant and equipment being constructed by the Council includes the cost of purchased services, materials, direct labour and an appropriate proportion of labour overheads. (e) Depreciation Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets. Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and commissioned ready for use. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Council. Major spares purchased specifically for particular assets that are above the asset recognition threshold are capitalised and depreciated on the same basis as the asset to which they relate. The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter. Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The condition assessments performed as part of the annual valuation process for assets measured at depreciated current replacement cost are used to estimate the useful lives of these assets at each reporting date. Details of the range of estimated useful lives for each class of asset are shown in note 18 (a). (f) Land under roads Land under roads acquired before 30 June 2008 is recognised as a non-current asset where the Council holds title or a financial lease over the asset. The Toowoomba Regional Council currently does not have any such land holdings. Land under the road network within the Council area that has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994 is not controlled by council but is controlled by the state pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements. 1. 17 Intangible Assets Intangible assets with a cost or other value exceeding $5,000 are recognised as intangible assets in the financial statements, items with a lesser value being expensed. Expenditure on research activities relating to internally-generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software are capitalised and are amortised on a straight-line basis over the period of expected benefit to Council. Amortisation methods, estimated useful lives and residual values are reviewed at the end of each reporting period and adjusted where appropriate. Details of the estimated useful lives assigned to each class of intangible assets are shown in note 19. 1. 18 Biological assets The Council operates a nursery to produce bedding plants and trees for its own use. In view of the immaterial nature of this operation the accounting procedures related to biological assets have not been applied. The costs incurred in this operation are included in Council’s general operations as they are incurred.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 81 Notes to the Financial Statements For the year ended 30 June 2013

1. 19 Impairment of non current assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation surplus increase. 1. 20 Leases Leases of plant and equipment under which the Council as lessee/lessor assumes/transfers substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are classified as finance leases. Other leases, where substantially all the risks and benefits remain with the lessor, are classified as operating leases. The Council has no finance leases. Operating leases Payments made under operating leases are expensed in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. 1. 21 Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are generally settled on 30 day terms. 1. 22 Liabilities – employee benefits Liabilities are recognised for employee benefits such as wages and salaries, annual leave and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current. (a) Salaries and wages A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees’ services up to that date. This liability represents an accrued expense and is included in note 20 as a payable. (b) Annual leave A liability for annual leave is recognised. Amounts expected to be settled within 12 months (the current portion) are calculated on current wage and salary levels and includes related employee on- costs. Amounts not expected to be settled within 12 months (the non-current portion) are calculated on projected future wage and salary levels and related employee on-costs, and are discounted to present values. (c) Superannuation The superannuation expense for the reporting period is the amount of the contribution the local government makes to the superannuation plan which provides benefits to its employees. Details of those arrangements are set out in note 29.

82 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

(d) Long service leave A liability for long service leave is measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the employee remaining in the Council’s employment or other associated employment which would result in the Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date are used to discount the estimated future cash outflows to their present value. This liability is reported in note 21 as a provision. 1. 23 Borrowings Borrowings are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these liabilities are measured at amortised cost. In accordance with the Local Government Regulation 2012 council adopts an annual debt policy that sets out council’s planned borrowings for the next nine years. Council’s current policy is to only borrow for capital projects and for a term no longer than the expected life of the asset. Council also aims to comply with the Queensland Treasury Corporation’s borrowing guidelines and ensure that sustainability indicators remain within acceptable levels at all times. All borrowing costs are expensed in the period in which they are incurred. No borrowing costs are capitalised on qualifying assets. 1. 24 Restoration provision A provision is made for the cost of restoration in respect of refuse dumps and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required, discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Within each restoration provision there may be many site locations some of which can be on council controlled land and some which are not. The following accounting treatments apply depending on the site location: Restoration on land not controlled by Council Where the restoration site is on State reserves and other private land which the Council does not control, the cost of the provisions for restoration of these sites has to be treated as an expense in the year the provision is first recognised. Changes in the provision due to either time, discount rate or expected future cost are treated as an expense or income in the reporting in which they arise. Restoration on land controlled by Council Restoration sites that are situated on Council controlled land and are classified as land and improvement assets. The provision for restoration is, therefore, included in the cost of the improvement assets and amortised over the expected useful life. Changes in the provision not arising from the passing of time are added to or deducted from the asset revaluation surplus for improvement assets. If there is no available revaluation surplus, increases in the provision are treated as a capital expense and recovered out of future decreases (if any). Changes to the provision resulting from the passing of time (the unwinding of the discount) are treated as a finance cost. During the 2013 financial year an increase in the provision for refuse sites and quarry and gravel pit sites of $95,302,112 was recognised largely due to more detailed engineering based cost inputs, inclusion of all identified refuse sites and quarry and gravel pit sites requiring rehabilitation and the inclusion of ongoing monitoring and maintenance costs post closure. The Council has the following restoration provisions: (a) Refuse sites Restoration The provision represents the present value of the anticipated future costs associated with the closure of the refuse sites, decontamination and monitoring of historical residues and leaching on these sites. The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 83 Notes to the Financial Statements For the year ended 30 June 2013

The provision recognised for refuse sites is reviewed at least annually and updated based on the facts and circumstances available at the time. (b) Quarry and Gravel Pit Restoration The provision represents the present value of the anticipated future costs associated with the closure of the quarries, refilling the basin, and reclamation and rehabilitation of these sites. The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred. The provision recognised for quarry rehabilitation is reviewed at least annually and updated based on the facts and circumstances available at the time. 1. 25 Asset revaluation surplus The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in the asset revaluation surplus. Increases and decreases on revaluation are offset within a class of assets. Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense. When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the asset revaluation surplus and not transferred to retained surplus. 1. 26 Retained surplus (deficit) In reference to the comparative figures for the year ended 30 June 2012, this represents the amount of Council’s net funds not set aside in reserves to meet specific future needs. 1. 27 Reserves held for funding future capital expenditure Council’s cash and cash equivalents are subject to a number of internal restrictions that limit the amount that is available for discretionary or future use. In prior years council accounted for these restrictions using a system of reserves. For the 2012/13 financial year and future years, council will account for these restrictions using an internal management accounting system. Internal restrictions that have been placed on Council’s cash and cash equivalents are now disclosed in Note 13. 1. 28 National competition policy The Council has reviewed its activities to identify its business activities. Details of these activities are disclosed in Note 34. 1. 29 Rounding and comparatives The financial statements have been rounded to the nearest $1,000. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. 1. 30 Trust funds held for outside parties Funds held in the trust account on behalf of outside parties include those funds from the sale of land for arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages) paid into the trust account by the Council. The Council performs only a custodian role in respect of these monies and because the monies cannot be used for Council purposes, they are not considered revenue nor brought to account in the financial statements. The monies disclosed in the notes to the financial statements are for information purposes only in Note 30. 1. 31 Taxation Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax and Goods and Services Tax (‘GST’). The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively. The Council pays payroll tax to the Queensland Government on certain activities.

84 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

1. 32 Carbon Pricing In 2011, the Australian Government introduced a Clean Energy Legislation package. One aspect of this package which has, and will continue to, impact Council directly and indirectly is the introduction of a pricing mechanism for greenhouse gas emissions in the Australian economy. The pricing mechanism commenced on 1 July 2012 and set a fixed price path for the first three years ($23 per tonne of CO2-equivalent emissions adjusted in real terms by 2.5% per annum) before moving to a flexible price mechanism from 1 July 2015. It provides a framework for setting a cap on greenhouse gas emissions by capping the number of carbon units available once the flexible price period commences, which can be adjusted over time to ensure that the government’s reduction targets are met. It is likely that the way this mechanism is priced and/or applies will change, depending upon the outcome of the Australian Federal election on 7 September 2013. Council operates landfills that produce emissions that exceed the current relevant liability threshold. Council projections indicate that each of these facilities will continue to exceed the relevant emissions thresholds into the foreseeable future. In addition council also operates a number of small landfills that have annual emissions of carbon dioxide equivalent that are below the individual site threshold of 25,000 tonnes. Council projections indicate that each of these facilities are unlikely to exceed the relevant emissions thresholds into the foreseeable future, therefore no direct liability has arisen, or is likely to arise as a result of this legislation. Council recognises a liability under the carbon pricing mechanism as the emissions from these facilities occur. Organic material within waste deposited at landfills takes time to begin decomposing. Waste deposited in 2012/13 will only begin to break down and generate emissions at the start of 2013/14; therefore Council has not recognised a liability for the purchase of carbon permits for these facilities at 30 June 2013. Although the waste deposited in landfills takes over twelve months to begin emitting carbon dioxide, it also continues to generate emissions for the following 40 years. Council estimates that the liability under the carbon pricing scheme for emissions during the 2013/14 financial year will be $58,346. This estimate is based on the quantity and types of refuse received, estimated future CO2e type gas emissions (using the latest national Greenhouse Accounts Factors), estimates of likely timing of such emissions and the potential offsets by collection of emitted gases and other methods. The calculation has been based on the fixed price per tonne CO2e currently set for the 2013/14 financial year. The liability that has been estimated is unlikely to be the same as council’s actual liability for 2013/14 due to the nature of estimates and, in particular, the likelihood that the pricing mechanism will change following the federal election. Council has been, and will continue to be indirectly impacted through increased costs arising from the carbon pricing mechanism. The most significant of these will be electricity and fuel. Commonwealth Treasury modelling published in July 2011 in the document “Strong growth, low pollution modelling a carbon price” indicates that the carbon pricing is expected to increase electricity prices by 10% within 5 years from 1 July 2012 and increase other costs by 0.7% on inflation. In addition fuel tax credits will be progressively reduced over the initial fixed price period. Council’s latest modelling indicates that electricity and fuel is likely to increase as follows:

Year Electricity ($) Fuel ($) 2014 1,240,160 50,000 2015 1,403,744 50,000

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 85 Notes to the Financial Statements For the year ended 30 June 2013

2 (a) Components of council functions

The activities relating to the Council’s components reported on in Note 2 (a) are as follows :

Corporate Governance Provide a well governed Council respecting community values.

Finance and Business Strategy Provide quality, dependable and innovative information, knowledge and management systems focusing on sound financial management and procurement practices.

Community Services Provide a safe, healthy and equitable community, enjoying a quality lifestyle.

Planning and Development Ensuring that planning and development for regional growth and change is based on sustainability principles cultural heritage and community engagement.

Transport and Other Infrastructure To provide the Toowoomba region with a well planned, safe and functional transportation system as a component of coordinated and integrated infrastructure networks and assets.

Waste Management Provide efficient and compliant waste management infrastructure and services.

Water Services Provide safe and efficient systems for the supply of water by managing business operations in an efficient manner, developing programs for the supply of water infrastructure, maintaining awareness of water use and maintaining service standards.

Wastewater Services Provide safe and efficient systems for the disposal of wastewater by managing business operations in an efficient manner, developing programs for the supply of wastewater infrastructure, providing for appropriate end-uses of wastewater and maintaining service standards.

86 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2 Analysis of results by function

(b) Income and expenses defined between recurring and capital are attributed to the following functions:

2013 2012 $’000 $’000 Assets Assets Net Net 2013 2012 $’000 $’000 Result Result from from from 2013 2012 $’000 $’000 recurrent recurrent Net result Net result operations operations 2013 2012 $’000 $’000 expenses expenses 2013 2012 $’000 $’000 2013 2012 $’000 $’000 Recurrent Capital Recurrent Capital Gross program expenses program Gross Total expenses program Gross Total 2013 2012 $’000 $’000 income income 2013 2012 $’000 $’000 2013 2012 $’000 $’000 2013 2012 $’000 $’000 Recurrent Capital Recurrent Capital 8,375 22,179 38,684 - 69,238 32,689 1,011 33,700 (2,135) 35,538 1,686,867 6,029 8,672 91,790 195 106,686 (25,660) (814) (26,474) (10,959) 133,160 1,863,016 2013 2012 $’000 $’000 Grants Other Grants Other Grants Other Grants Other 26,822 245,005 45,544 4 317,374 258,123 2,839 260,962 13,703 56,412 3,788,126 18,211 241,888 104,105 418 364,622 (260,279) (2,075) (262,354) (180) 626,976 4,079,736 Year ended 30 June 2013 Year Functions income program Gross Total ended 30 June 2012 Year Functions income program Gross Total Corporate Corporate governance - 27 - - 27 (5,689) Corporate governance - (5,689) - (5,662) 45 5,716 84,617 - - 45 4,248 - 4,248 (4,203) (4,203) 348,591 Finance and business strategyFinance 15,616 107,033 303 - 122,952 68,204 2 68,206 54,445 54,746 120,923 Finance and business strategyFinance 10,027 106,547 94 - 116,668 (60,901) - (60,901) 55,673 177,569 221,806 Community services 2,151 8,485 3,301 4 13,941 52,458 129 52,587 (41,822) (38,646) 137,996 Community services 2,007 14,582 2,650 223 19,462 (56,694) (46) (56,740) (40,105) 76,202 336,891 Planning & development & development Planning 227 5,824 - - 6,051 13,460 (21) 13,439 (7,409) (7,388) 249,493 Planning Planning & development 17 5,754 - - 5,771 (14,498) - (14,498) (8,727) 20,269 246,024 Transport and other Transport infrastructure Waste management Waste 119 14,991 136 - 15,246 15,607 198 15,805 (497) (559) 15,604 Transport and other Transport infrastructure Water ServicesWater 334 53,367 2,156 - 55,857 46,140 859 46,999 7,561 8,858 660,470 Waste management Waste 130 17,855 - - 17,985 (16,174) (25) (16,199) 1,811 34,184 97,927 Waste Water ServicesWater Waste - 33,081 964 - 34,045 25,317 661 25,978 7,764 8,067 568,182 Water ServicesWater 1 54,185 4,801 - 58,987 (52,266) (325) (52,591) 1,920 111,578 604,688 Total Waste Water ServicesWater Waste - 34,266 4,770 - 39,036 (28,397) (865) (29,262) 5,869 68,298 624,767 Total

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 87 Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 3 Revenue analysis

(a) Rates and levies 1.8(a) General rates 108,218 102,668 Separate rates 4,693 3,995 Water 36,308 36,099 Water consumption, rental and sundries 21,407 18,322 Sewerage 24,864 23,445 Sewerage trade waste 1,401 1,435 Garbage charges 13,005 11,464 Rates and utility charge revenue 209,896 197,428 Less: Discounts (17,611) (17,570) Less: Pensioner remissions (1,345) (1,323) Net rates and utility charges 190,940 178,535

(b) Statutory fees and charges User fees and charges 32,928 32,830 32,928 32,830 (c) Interest received Investments 7,859 9,910 Over due rates and utility charges 411 483 8,270 10,393 (d) Sales of contract and recoverable works Revenue 9,263 20,801 9,263 20,801 The amount recognised as revenue from contract works during the period is the amount receivable in respect of invoices issued during the period. There are no contracts in progress at the period end. The contract work carried out is not subject to retentions.

(e) Other recurrent income Other income 487 2,445 487 2,445 4 Grants, subsidies, contributions and donations 1.8(b)

(i) Recurrent – grants, subsidies, contributions and donations are analysed as follows: General purpose grants 16,352 14,319 State Government subsidies & grants 1,457 11,360 Donations 400 356 Contributions 2 787 Total recurrent revenue 18,211 26,822

(ii) Capital – grants, subsidies, contributions and donations are analysed as follows: (a) Monetary revenue designated for capital funding purposes: Commonwealth government grants 3,357 3,169 State Government subsidies & grants 87,521 37,176 Contributions 6,241 3,472 97,119 43,817 (b) Non-monetary revenue received is analysed as follows: 1.8(c) Donations from third parties at fair value 6,985 1,726 6,985 1,726 Total capital revenue 104,104 45,543

88 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 5 Capital income Gain on the sale of capital assets 6 419 - Recovery of revaluation down of property, plant and equipment 18 - 4 419 4 6 Gain (loss) on the disposal of capital assets (a) Non-current assets classified as held for sale 1,283 - Less: Carrying value of asset sold (1,059) - 224 -

(b) Proceeds from the sale of plant and equipment 3,101 2,917 Less: Book value of plant and equipment sold (2,906) (2,721) 195 196

(c) Proceeds from the sale of land and buildings - 338 Less: Book value of land and buildings sold - (663) - (325) Total gain (loss) on the disposal of capital assets 5 & 11 419 (129)

7 Employee benefits Total staff wages and salaries 86,369 82,535 Councillors’ remuneration 1,068 1,064 Annual, sick and long service leave entitlements 9,460 8,926 Superannuation 29 11,511 11,570 108,408 104,095 Other employee related expenses 2,605 2,371 111,013 106,466 Less: Capitalised employee expenses (11,721) (9,196) 99,292 97,270 Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties.

Total Council employees at 30 June: 2013 2012 No. No. Elected members 11 11 Administration staff 776 776 Depot and outdoors staff 657 651 Total full time equivalent employees 1,444 1,438

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 89 Notes to the Financial Statements For the year ended 30 June 2013

8 Materials and services 2013 2012 $’000 $’000 Audit of annual financial statements by the Auditor-General of Queensland 297 276 Administration supplies & consumables 1,553 1,371 Advertising 1,321 1,174 Bulk road & other bulk materials 4,388 8,160 Communications & IT 3,390 2,953 Conferences and seminars 2,000 863 Consultancy services 6,844 6,984 Contract services 6,583 10,227 Donations paid 2,984 3,059 Electricity 8,561 7,802 Entertainment and hospitality 16 15 Equipment hire 2,812 4,011 Fuel and chemicals 6,804 6,536 Garbage collection services 9,666 8,890 Insurance 1,403 2,047 Minor equipment & other materials 3,509 2,458 Professional Services 2,567 2,551 Rentals – Operating leases 569 420 Repairs & maintenance materials 8,021 7,970 Other material and services 7,107 4,915 80,396 82,683

9 Finance costs Finance costs charged by the Queensland Treasury Corporation 8,655 8,637 Bank charges 424 385 Refuse sites – change in PV over time 277 436 Quarry sites – change in PV over time 2 - 9,358 9,458 10 Depreciation and amortisation 1.16(e) (a) Depreciation of non-current assets Site improvements 1,549 192 Buildings 4,163 4,141 Plant and equipment 10,587 10,465 Road and bridge network 24,124 25,374 Water 14,648 12,818 Sewerage 9,182 8,281 Drainage 4,539 4,415 Other Infrastructure 758 606 Other assets 1,169 1,974 70,719 68,266

(b) Amortisation of other intangible assets Computer software 514 446 514 446 Total depreciation and amortisation 71,233 68,712

90 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 11 Capital expenses Loss on the sale of capital assets 6 - 129 Loss on write-off of capital assets 12 2,050 2,510 Increase in rehabilitation provision, due to increase in the estimated future cost on council controlled land, that exceeds the land revaluation reserve 21(i) 25 200 Total capital expenses 2,075 2,839

12 Loss on write-off of capital assets are as follows: Site improvements 20 - Buildings 466 (21) Plant and equipment 13 326 Road and bridge network 319 685 Water 324 859 Sewerage 866 661 Drainage 9 - Other assets 33 - 11 2,050 2,510

13 Cash assets and cash equivalents 1.10 Cash at bank and on hand 887 850 Deposits at call 88,098 170,442 Term deposits 75,000 - Balance per statement of cash flows 163,985 171,292

Councils cash and cash equivalents are subject to a number of internal and external restrictions that limit amounts available for discretionary or future use. These include: Externally imposed expenditure restrictions at the reporting date relate to the following assets: Unspent government grants and subsidies 10,415 17,957 Internally imposed expenditure restrictions at the reporting date relate to the following assets: Funds set aside by Council and held in reserves for future projects 120,280 146,478 Total unspent restricted cash held in reserves 25 130,695 164,435

Cash at bank is held in normal business accounts at the Commonwealth Bank. Deposits at call are held at the Commonwealth Bank and Queensland Treasury Corporation. Term deposits are held at National Australia Bank, Westpac Banking Corporation, St George Bank, ING Bank (Aust) Limited, Suncorp Bank, Bendigo Bank, Bank of Queensland and Heritage Bank. Short term credit ratings of the above financial institutions range from A3 to A1+.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 91 Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 14 Trade and other receivables 1.11

Current Rateable revenue and utility charges 8,801 9,789 Fees and charges 17,034 24,087 Accrued interest 926 2,651 GST recoverable 1,953 1,519 Other debtors 127 465 Less: Impairment provision (377) (336) 28,464 38,175 Prepayments 695 - 29,159 38,175

Interest is charged on outstanding rates at a rate of 11% per annum. No interest is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtors receivable.

Movement in accumulated impairment losses (trade and other receivables) is as follows: Opening balance 336 216 Impairment adjustment in period 41 120 Closing balance 377 336

15 Inventories 1.12 Current Inventories for internal use: Stores and materials 6,691 3,885 6,691 3,885 Valued at cost, adjusted when applicable for any loss of service potential.

16 Non-current assets classified as held for sale Opening balance at valuation 1,173 3,743 Transfer from other non current asset category **Note 18 (a) 30 (2,570) Disposal –value of asset sold (1,059) - 144 1,173 Council has decided to sell this land as it is no longer required. This land is expected to be sold within 2 years. The land is valued at the lower of cost and selling price less cost to sell.

17 Equity investments Shares in South Burnett Community Enterprises Limited 20 20 (formerly known as Yarraman Financial Services) 20 20 Reconciliation of the carrying amount at the beginning and end of the current and previous period is set out below:

Shares in South Burnett Community Enterprises Limited Carrying amount at beginning of period 20 20 Fair value at the period end 20 20

The shares in South Burnett Community Enterprises are not traded on an active market and their fair value cannot be ascertained reliably. Accordingly they are shown at cost.

92 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013 * ** Total 185,278 185,278 Works in Works progress Other assets

ucture Infrastr- Water Sewerage Drainage Other 5 - 100 10 - 70 50 - 60 5 - 100 10 - 100 held for resale” which is reported 16 in Note resale” held for 10 - angible assets are reported 19 in Note assets are angible bridge network Road and unlimited equipment Buildings and Plant 7,785 65,491 20,688 607,258 79,262 294,704 180 1,075,368 10 10 - 100 2 - 15 87,258 ------87,258 ments improve------(22) - - - 22,664 (8,541) (609) 41 - - - (88) 269 - (7,388) - - (29,423) 2,856 (910) 2,369 - 18,333 3,510 (1,773) 33,946 - - (1,387) (1,380) - 29,635 309 (25) 501,469 - (21) - 329,463 - - 250,191 - - - - 98,676 - (252) - (75) 5,251 - - 15,188 - - - - 6,986 (4,878) - 1,394 - 1,266,188 193,319 - 193,319 (25) (7,388) - - 1,549 - - - 4,163 - (2) - 10,587 - 13,203 1,448 - 24,124 (143) - (3,841) 9,148 14,648 18,567 - (75) - 5,441 9,182 (4,482) 43,273 - (591) 4,539 (66) 41,106 - (1,449) (9,898) - (4,476) 515,038 758 (27,299) (516) 310,887 (5,801) 1,169 (18,730) - 234,301 - (12) 103,203 - (25) - (1,239) 4,770 - (16,210) - 70,719 - (42) - 9 - (96) - - - - (2,830) 1,271,154 - (58,416) (25) (4,482) (30) 41,900 17,548 11,197 (883) (10,266) (11,296) - (3,155) (45,045) (30) 1,957 1,794 2,085 15,999 58,368 7,329 1,150 1,129 1,274 584 (94,010) (2,342) 176,856 162,252 307,174 95,645 2,162,792 863,025 794,224 349,228 18,679176,856 143,685 12,305 263,901 168,799 54,539 5,110,979 1,647,754 552,138 559,923 246,025 13,909 12,296 168,799 3,839,825 174,929 8,658 296,691 75,884 2,135,371 846,546 803,652 347,811 20,560 57,093 69,490 4,836,685 Land Site $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Fair ValueFair Value Fair Value Fair Cost Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Cost depreciated

as at 30 June 2013 and equipment Opening balance Opening gross value Opening gross Minor correction opening balance to at cost Additions assets at valuation Contributed work in progress Internal from transfers Disposals Write-offs the ARS Revaluation adjustment to Internal between asset classes transfers of future Recognition/changes costs rehabilitation value Closing gross Minor correction opening balance to in period provided Depreciation on disposals Depreciation on write-offsDepreciation the ARS Revaluation adjustment to other asset classes Internal to transfers depreciation Closing accumulated and impairment balance Net value at 30 June 2013 Addition of other assetsAddition additions in periodTotal 1,933 1,933 714 714 1,130 1,130 714 714 1,358 1,358 121 121 2,071 187,349 193,319 8,041 18(a) Property, plant plant Property, 18(a) Basis of measurement Asset Values and impairment depreciation Accumulated Residual value Int assets. “Intangible” to “Work in Progress” from transferred - $2,342 (‘000’s)was work in progress * Internal from transfers “Land the asset class to “Land” the asset class from was transferred ** Internal between asset classes - $30 (‘000’s) transfers Addition of renewal assets of renewal Addition Range of estimated useful life in yearsRange useful life of estimated Not

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 93 Notes to the Financial Statements For the year ended 30 June 2013 780 1,726 2,570 (5,854) 403,490 Total 1,118,193 Works in Works progress Other assets

ucture Infrastr- Water Sewerage Drainage Other 5 - 175 10 - 70 50 - 60 5 - 100 10 - 100 10 - bridge network Road and unlimited equipment Buildings and Plant ------(21) 59 (3) (2,471) (204) - - (1,356) - 97,399 (818) 3,891 - 24,239 - (252) (40,366) - - - - - (366) ------84,794 - (2,650) 59 (2,471) (4) ------(4) 181 65,811 23,082 598,962 288,055 180 976,271 780 192 4,141 10,465 25,374 679 12,818 5,099 8,281 4,415 - 606 1,974 - (5,302) (473) 68,266 - - (4) - 2,368 33,946 29,635 501,469 329,463 250,191 98,676 5,251 15,188 1,266,187 10 10 - 100 2 - 15 ments improve- - - - - 4,987 - - 16,220 - 13,159 - - 33,346 59 167,224 4,337 - - - 5,559 (530) - 9,559 - (2,040) 5,808 755 (1,677) (264,584) - (913) 450 (1,461) - 521 ------(5,160) 59 (539) - (123) (5,192) - - - - - 2,924 - - 2,570 1,196 - 12,912 - - (139) (12,313) - (1,635) - - - - (21) - - 270,078 270,078 13,377 - 97 - 193,867 34,347 184,033 (22,313) - 83 174,929 6,290 262,745 46,249 1,633,902 517,084 553,461 249,135 15,309 41,905 69,490 3,570,498 174,929 8,658 296,692 75,884 2,135,371 846,546 803,652 347,811 20,560 57,093 69,490 4,836,685 156,597 1,695 267,585 68,388 1,910,337 658,211 617,380 364,044 11,001 51,223 63,996 4,170,457 Land Site $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Fair ValueFair Value Fair Value Fair Cost Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Cost depreciated

equipment – prior year equipment as at 30 June 2012 Opening gross value Opening gross Minor correction opening balance to at cost Additions assets at valuation Contributed work in progress Internal from transfers Disposals Write-offs the ARS* Revaluation adjustment to Internal between asset classes transfers of future Recognition/changes costs rehabilitation value Closing gross Opening balance opening balance Correction to Minor correction opening balance to in period provided Depreciation on disposals Depreciation on write-offsDepreciation the ARS* Revaluation adjustment to the IncomeRevaluation adjustment to Internal transfers depreciation Closing accumulated and impairment balance 1,502Net value at 30 June 2012 24,729 21,785 380,050 318,875 218,395 134,627 4,645 13,585 Correction to opening balance ------* ARS denotes - Asset Revaluation Surplus - Asset * ARS denotes Residual value 18(a) Property, plant and plant Property, 18(a) Basis of measurement Asset Values and impairment depreciation Accumulated Range of estimated useful life in yearsRange useful life of estimated Not

94 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

18 (b) Property, plant and equipment valuations were determined by reference to the following:

Land The fair value of land is measured at current market value as at 30 June 2012 as independently determined by AssetVal Pty Ltd. Fair value was derived by reference to market based evidence including observable historical sales data for properties of similar nature and specification within the Toowoomba Regional Council and surrounding areas. The fair value as at 30 June 2013 has been determined using the same evidence and assumptions used in determining the fair value as at 30 June 2012. There was considered to be no material change during the financial year which would affect these assumptions. Reserve land does not have a value for the purpose of a Local Government’s financial statements.

Site improvements The fair value of site improvements is measured at current market value as at 30 June 2013 as independently determined by Australia Pacific Valuers (APV) and AssetVal Pty Ltd. Fair value was derived by reference to market based evidence including observable historical sales data for properties of similar nature and specification within the Toowoomba Regional Council and surrounding areas.

Buildings There is no market for Council’s buildings as these are held to provide essential services to the community. Accordingly, the fair value of all building assets is measured at written down current replacement cost. All buildings will be revalued during the 2013-14 financial year, however the Water & Wastewater buildings were revalued as at 30 June 2013 by AssetVal in conjunction with the water and sewerage active infrastructure assets. These buildings represent an immaterial portion of the written down value of the asset class.

Plant and equipment Other plant and equipment is measured at original cost less accumulated depreciation.

Infrastructure There is no market for Council’s infrastructure assets as these are held to provide essential services to the community. Accordingly, the fair value of all infrastructure assets is measured at written down current replacement cost.

Road network The fair value of road and bridge network infrastructure as at 30 June 2013 was determined by management based on the following key assumptions (this value remains unchanged from the valuation as at 30 June 2012):

(a) Average $/m2 for each of the key components were: Sealed Unsealed roads roads $ $ Formation 25.87 13.03 Pavement 24.96 n/a Surface 11.75 11.33

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 95 Notes to the Financial Statements For the year ended 30 June 2013

Road network (cont.….) (b) Condition was assessed using the following table: Condition Remaining rating useful life New 100% 0.50 98% 1.00 95% 1.50 85% 2.00 75% 2.50 63% 3.00 50% 3.50 38% 4.00 25% 4.50 13% 5.00 5% 5.50 0%

The valuation of the roads network was performed by combining the expertise of internal asset managers, Lemmah Pty Ltd and Fugro PMS Pty Ltd.

Bridges The fair value of bridge infrastructure is measured at written down current replacement cost. The valuation of bridge infrastructure as at 30 June 2013 was independently determined by APV Valuers.

Water and Sewerage The fair value of water and sewerage passive infrastructure as at 30 June 2013 was determined by management based on the following key assumptions (this value remains unchanged from the valuation as at 30 June 2012):

(a) The average cost per meter was $232.17 for water pipes and $566.29 for sewerage pipes.

(b) Condition was assessed using the same table as that identified for the road network.

The last independent valuation of water and sewerage active infrastructure assets was performed by AssetVal Pty Ltd as at 30 June 2013.

Drainage The fair value of drainage infrastructure as at 30 June 2013 was determined by management based on the following key assumptions (this value remains unchanged from the valuation as at 30 June 2012):

(a) The average cost per square meter was $565.91 for drainage pipes.

(b) Condition was assessed using the same table as that identified for the road network.

The last independent valuation of drainage infrastructure assets was performed by AssetVal Pty Ltd as at 30 June 2012.

96 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

18 (c) Other asset related information:

Dam Wall Assets – Revaluation In conducting an external revaluation for dam wall assets in 2012/2013, there were a number of changes in the valuation methodology and asset breakdown compared to previous financial years. These changes will have an impact on the future depreciation expense for these assets commencing 2013/2014. The estimated depreciation for the 2013/2014 year is $439,000 compared to $666,000, 2012/2013.

With this process both Toowoomba Regional Council and AssetVal Valuers collaborated to redesign the asset breakdowns to gain synergies with asset management and engineering services staff. This has also resulted in additional asset componentisation, enabled better measurement of replacement costs and reduced duplication.

Revised Useful Lives Residual Values Historically Council had not utilised residuals extensively and so with the opportunity to completely review the assets, the outcome was that the analysis supported the residual criteria for the earth fill dam walls.

The dams are zoned earth fill dams and are componentised to only include the dam wall itself, excluding spillways outlet works and catchment assets. The previous useful lives on these assets were between 165 to 175 years, and following the revaluation these estimated useful lives are now 100 years with residual values between 30% and 70%.

Residuals were applied, firstly, as there are no examples of major embankment dams being removed, demolished or failing in Australia and secondly, the bulk water supply for Toowoomba is primarily supplied from catchments and stored in the dams. This is not likely to change in the foreseeable future due to tighter regulations on groundwater extraction and the option of switching to primary downrange supplies is expensive and therefore not preferred as illustrated by the costs relating to the new Wivenhoe pipeline.

The need for the dams in Toowoomba will not change for the foreseeable future. Having no evidence that a removal and reinstatement type renewal is likely to happen, AssetVal Pty Ltd have applied a residual that represents that the majority of the dam will stand in perpetuity.

The reason for not applying a 100% residual is due to illustratable occurrences of major damage and upgrades being required over the life of the dam. An example of this is the recent embankment slippage at Cressbrook Dam and recent safety upgrades. This then follows onto the life of 100 years applied as opposed to 175 years. The life is reduced due to the change in failure/renewal mode, where previously life was set at 175 years as it was assumed the whole dam had been consumed and would be removed, destroyed or decommissioned. This has changed to a perpetuity model and so the life represents an average suggesting that after 100 years 30% of the dam will be consumed though either erosion, seepage issues, settling or obsolescence. The 100 year time frame is based on experience with other older dams having upgrades or renewal/repair works completed after this approximate time frame. It is difficult to predict the future in such long life assets. Evidence from older, equivalent asset types has had to be related, but due to better construction techniques any derived conclusions used would inherently be conservative.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 97 Notes to the Financial Statements For the year ended 30 June 2013

Bridges – Revaluation Overview of Methodology The approach used for the revaluation of Council’s bridge assets for 2012/2013 uses a condition assessment that enables a determination of each component’s level of remaining service potential. This also involves consideration of obsolescence and other external factors.

This assessment indicates which phase of the asset life cycle the component is currently in. The asset is then depreciated using a straight-line from the assessed value at the start of that phase to the assessed value at the end of that phase.

Segmentation and Componentisation Segmentation and componentisation is based on standard industry practice and via consultation between Council and Australian Pacific Valuers. Bridge assets were categorised into five main groups:

- Multi- span bridges with intermediate pier support (PB) - Single span girder bridges (GB) - Box culvert type bridges (CB) - Pipe culvert type bridges (CP) - Arch type bridges (ARCH)

Different material types were observed within the main groups listed above, such as in-situ reinforced concrete, pre stressed concrete, pre-cast concrete box and pipes, steel, steel helical pipes and timber. A modern equivalent replacement strategy has been adopted in the determination of the obsolete bridge construction types. As an example, timber bridges have been replaced with equivalent concrete bridges. Evidence throughout Council supports the strategy. The five main groups were then componentised and valued as four sub-categories:

- Super structure - Sub Structure - Bridge Railing - Bridge Surface

Gross Replacement Cost The gross replacement cost for bridges was determined by Australian Pacific Valuers from a range of sources. They noted in their detailed report:

“The Gross Replacement Value of these assets have been assessed on the basis of replacement with a new asset having similar service potential and includes allowances for installation and professional fees. The Gross Replacement Value costing have been derived from reference to costing guides issued by the Rawlinson’s (Australian Construction Handbook), Toowoomba Regional Council and Australian Pacific Valuers internal database of costs, recently completed projects in the region and surrounding areas”.

Depreciable Amount Calculation of the depreciable amount involves determination of the Residual Value which in turn is required to be assessed at the end of its useful life.

For cyclical maintenance assets (such as bridges) the end of the useful life is typically assessed as being at the point of major intervention. For example for a road seal it would be at the point of the re-seal.

98 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

Bridges – Revaluation (cont.…) Depreciable Amount (cont.…) This approach was used to determine the Residual Value. Consideration was given to Council’s expectation of the what issues would typically drive the need to undertake a major renewal, how long it would be for the asset to reach that point and what the likely cost would be (as a percentage of the full replacement cost).

As a consequence of this analysis the assumptions applied recognised that for some components the cost of renewal was less than the cost of as new construction and therefore it was appropriate to adopt some residual values.

As a consequence of this approach the “value lost through consumption” is depreciated over the useful life.

These changes will have an impact on the future depreciation expense for these assets commencing 2013/2014. The estimated depreciation for the 2013/2014 year is $389,000 compared to $519,000, 2012/2013.

Pattern of Consumption A depreciation method was used in order to match the pattern of consumption. In the case of bridges, due to increasing traffic loads and volumes and changes in technology and safety standards, the pattern of consumption of future economic benefit is not constant but increases over time.

Based on this determination a straight-line pattern was adopted for components with a useful life of less than 40 years and a moderate pattern for components with an expected useful life of greater than 70 years.

Accumulated Depreciation The level of Accumulated Depreciation was based on an assessment of the proportion of depreciable amount consumed to date. It is based on a Consumption Score referenced to the appropriate pattern of consumption.

The scoring mechanism incorporated both physical condition as well as consideration of obsolescence and external factors.

After inspection the score was used to determine the percentage of remaining depreciable amount. This was then added to the Residual Value to determine the written down value and as a result the Accumulated Depreciation.

The end results were then compared to Council’s understanding of their assets from their asset management framework to ensure consistency with engineering data.

Quality Assurance There was a range of Quality Assurance processes involved to ensure the outputs were an accurate reflection of the actual asset observations.

These included –

· Review and confirmation of underlying assumptions · Review of draft report to ensure consistency with asset management understanding.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 99 Notes to the Financial Statements For the year ended 30 June 2013

National Disaster Relief and Recovery Arrangements (NDRRA) Council has been subject to two flood events that are included in these Financial Statements. They are the January 2011 event and the January 2013 event, referred to as Tropical Cyclone Oswald and the associated rainfall and flooding, 21-29 January 2013.

The January 2011 Event As of August 2013, the Queensland Reconstruction Authority (QRA) has a total cost of $125 million attributed to this event. Subject to final close out, the QRA has paid 90% of this estimate, $113 million. The Council estimated cost is currently at $131 million (as at August 2013). This would indicate an at risk amount for Council of $6 million, however, as the projects move closer to finalisation and official close out by QRA, the margin or risk amount is reducing. Council final estimates are reducing and the QRA final payment is subject to final actual costs. Empirical evidence would suggest a final at risk amount of $3.5 to $5.0 million. This amount is available in the 2013/2014 budget and the worst case scenario of an amount approaching $6 million will require some re-prioritisation, however, not to the extent of a financial shock to the Council’s sustainability position. A planned series of close-outs is being undertaken, by submission in claim areas. Restoration works are at the practical completion stage.

The 2013 Tropical Cyclone Oswald Event 24 projects, out of a total of 1,121 from the 2011 event, where restoration had not commenced at the time of the 2013 Oswald event, and had additional damage greater than 10%, have been transferred to the 2013 Oswald event.

As stated above, the road network was re-valued in 2011/12 and the valuation included the effect of the 2011 event. The 2013 event has incurred a write-down of $35m in the carrying value of the road network. Therefore the current valuation recorded in these accounts includes the effect of the 2011 & 2013 flood events

Work in Progress – Summary Total WIP shown in Note 18(a) of $168.8 million is detailed as follows: · NDRRA component of $74.5 million, · Major project carryovers of $70.15 million, which included two projects totalling $42.2 million, · Previous years WIP and current accruals of $11.95 million and · Ordinary WIP of $12.2 million.

100 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 19 Intangible assets Net carrying value at period end: Computer software 4,912 3,084 4,912 3,084 Computer software Opening gross carrying value 6,143 4,682 Acquired at cost *Note 18 (a) 2,342 1,461 8,485 6,143 Accumulated amortisation Opening balance 3,059 2,613 Amortisation in the period 514 446 3,573 3,059

Net carrying value at end of the financial year 4,912 3,084

Software has a finite life estimated at ten years. Straight line amortisation has been used with no residual value.

20 Trade and other payables Current Accruals 19,426 19,447 Annual leave 8,419 8,065 27,845 27,512 Non Current Annual leave 1,458 1,437 1,458 1,437 Employee benefit expenses are calculated at current pay levels and adjusted for inflation and likely future changes in salary level. The non-current portion of annual leave and long service leave is then discounted to the present value. Further details on employee entitlements are reported in Note 1.22

21 Provisions Current Long service leave 12,160 10,163 Property restoration: (i) Refuse sites 21 - (ii) Quarry sites 861 - 13,042 10,163 Non-Current Long service leave 1.22(e) 3,864 3,161 Property restoration: (i) Refuse sites 92,369 9,255 (ii) Quarry sites 3,658 91 99,891 12,507 Details of movements in provisions: Long service leave Balance at the beginning of financial year 13,324 13,864 Amount provided for in the period 3,975 1,785 Amount paid in the period (1,275) (2,325) Balance at end of the financial year 16,024 13,324

Current portion 12,160 10,163 Non-current portion 3,864 3,161 16,024 13,324

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 101 Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 (i) Refuse sites Balance at the beginning of financial year 9,255 7,853 Increase in provision - due to change in time 276 432 Increase in provision - change in discount rate 25 198 Amount expended in year - - Increase (decrease) in estimate of future cost 82,834 772 Balance at end of the financial year 92,390 9,255

Current portion 21 - Non-current portion 92,369 9,255 92,389 9,255

(ii) Quarry sites Balance at the beginning of financial year 91 77 Increase in provision - due to change in time 3 4 Increase (decrease) in provision - change in discount rate - 2 Amount expended in year - - Increase (decrease) in estimate of future cost 4,425 8 Balance at end of the financial year 4,519 91

Current portion 861 - Non-current portion 3,658 91 4,519 91

22 Borrowings

(a) Bank overdraft The council does not have a bank overdraft facility.

(b) Unsecured borrowings Unsecured borrowings are provided by the Queensland Treasury Corporation.

All borrowings are in $A denominated amounts and carried at amortised cost, interest being expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Expected final repayment dates vary, the latest being 26 June 2032.

There have been no defaults or breaches of the loan agreement during the period.

Principal and interest repayments are made quarterly in arrears.

Details of borrowings at balance date are:

Current Queensland Treasury Corporation 9,320 8,305 9,320 8,305

Non Current Queensland Treasury Corporation 146,020 143,429 146,020 143,429

102 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 Details of movements in borrowings: Queensland Treasury Corporation Balance at the beginning of financial year 151,733 91,349 Loans raised 12,922 65,705 Principal repayments (9,315) (5,321) Balance at end of the financial year 155,340 151,733 Classified as : Current 9,320 8,305 Non-current 146,020 143,429 155,340 151,733

The loan market value at the reporting date was $165,199,145. This represents the value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no provision is required to be made in these accounts. No assets have been pledged as security by the council for any liabilities. Borrowings are all in $A and are underwritten by the Queensland State Government.

23 Other liabilities Current Unearned revenue 2,662 2,356 2,662 2,356

24 (i) Asset revaluation surplus

Movements in the asset revaluation surplus were as follows: Balance at the beginning of financial year 1,426,164 1,107,467

(a) Adjustments to property, plant and equipment through revaluations: 18 Land - 13,377 Site improvements 21,216 - Buildings (4,699) 99 Road and bridge network (19,525) 96,468 Water 45,632 30,456 Sewerage 17,342 159,794 Drainage - 18,053 Other assets (155) 449 Balance at end of the financial year 1,485,974 1,426,164

(ii) Asset revaluation surplus analysis The closing balance of the asset revaluation surplus is comprised of the following asset categories:

Land 13,377 13,377 Site improvements 21,216 - Buildings 112,056 116,755 Road and bridge network 717,622 737,147 Water 128,102 82,470 Sewerage 379,630 362,288 Drainage 104,389 104,389 Other assets 9,582 9,738 1,485,974 1,426,164

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 103 Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 25 Retained surplus

Balance at the beginning of financial year 2,156,256 2,099,843 Net result 102,268 56,412 Balance at end of the financial year 2,258,524 2,156,255

Council’s cash and cash equivalents are subject to a number of internal restrictions that limit the amount that is available for discretionary or future use. In prior years council accounted for these restrictions using a system of reserves. At the beginning of this reporting year these reserves were closed to the retained surplus and are now reported using an internal management system. Internal restrictions that have been placed on Council’s cash and cash equivalents are now disclosed in Note 13.

26 Commitments for expenditure Operating leases Minimum lease payments in relation to non-cancellable operating leases are as follows: Within one year 812 789 Later than 1 year but not later than 5 years 5,019 4,548 Later than 5 years 2,636 3,919 8,467 9,256 Lease payments are generally fixed, but with inflation clauses on which future rentals are determined.

Capital Commitments Commitment for the construction of the following assets contracted for at the reporting date but not recognised as liabilities are as follows: Buildings 137 94 Infrastructure 21,728 13,400 Other infrastructure 11 1,507 Other 290 47 22,166 15,048 These expenditures are payable : Within one year 22,166 15,048 Later than 1 year but not later than 5 years - - Later than 5 years - - 22,166 15,048

27 Events after balance date There were no material financial adjusting events after balance date.

104 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 28 Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: Various claims are pending against the Council. In the opinion of the Council’s solicitors the potential loss on all claims should not exceed: 2,521 4,000 The Council has disclaimed liability and no provision has been made in the financial statements pertaining to these claims.

Local Government Workcare The Toowoomba Regional Councils a member of the Queensland local government workers compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities. Only the Queensland Government’s workers compensation authority may call on any part of the guarantee should the above circumstances arise. The Council’s maximum exposure to the bank guarantee is: 1,939 1,614

Local Government Mutual The Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises. As at 30 June 2011 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise.

29 Superannuation The Council contributes to the Local Government Superannuation Scheme (Qld) (the scheme). The scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits. The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation. The scheme has three elements referred to as: The City Defined Benefits Fund (CDBF) which covers former members of the City Super Defined Benefits Fund. The Regional Defined Benefits Fund (Regional DBF) which covers defined benefit fund members working for regional local governments; and The Accumulation Benefits Fund (ABF) The ABF is a defined contribution scheme as defined in AASB 119. Council has no liability to or interest in the ABF other than the payment of the statutory contributions as required by the Local Government Act 2009. The Regional DBF is a defined benefit plan as defined in AASB119. The Council is not able to account for the Regional DBF as a defined benefit plan in accordance with AASB119 because the scheme is unable to account to the Council for its proportionate share of the defined benefit obligation, plan assets and costs. Any amount by which either fund is over or under funded would only affect future benefits and contributions to the Regional DBF, and is not an asset or liability of the Council. Accordingly there is no recognition in the financial statements of any over or under funding of the scheme. The audited general purpose financial report of the scheme as at 30 June 2012 (the most recent available) which was not subject to any audit qualification, indicates that the assets of the scheme are sufficient to meet the vested benefits. The most recent actuarial assessment of the scheme was undertaken as at 1 July 2012. The actuary indicated that “the Regional DBF is currently in a satisfactory but modest financial position and remains vulnerable to adverse short and medium term experience”.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 105 Notes to the Financial Statements For the year ended 30 June 2013

2013 2012 Note $’000 $’000 Following the previous actuarial assessment in 2009, councils were advised by the trustee of the scheme, following advice from the scheme’s actuary, that additional contributions may be imposed in the future at a level necessary to protect the entitlements of Regional DBF members. In the 2012 actuarial report the actuary has recommended no change to the employer contribution levels at this time.

Under the Local Government Act 2009 the trustee of the scheme has the power to levy additional contributions on councils which have employees in the Regional DBF when the actuary advises such additional contributions are payable - normally when the assets of the DBF are insufficient to meet members’ benefits.

The next actuarial investigation will be conducted as at 1 July 2015.

The amount of superannuation contributions paid by Toowoomba Regional Council to the scheme in this period for the benefit of employees was: 11,511 11,570

30 Trust funds 1.30 Trust funds held for outside parties: Monies collected or held on behalf of other entities yet to be paid out to or on behalf of those entities 3,768 4,068 Security deposits 110 117 3,878 4,185

The Toowoomba Regional Council performs only a custodial role in respect of these monies, and because the monies cannot be used for Council purposes, they are not brought to account in these financial statements.

31 Reconciliation of net result for the year to net cash inflow (outflow) from operating activities

Net result 102,268 56,412

Non-cash operating items: Depreciation and amortisation 10 71,233 68,712 Change in restoration provisions expensed to finance costs 279 436 71,512 69,148 Investing and development activities: Capital grants, subsidies and contributions 4 (104,104) (45,543) Capital income 5 (419) (4) Capital expenses 11 2,075 2,839 (102,448) (42,708)

Changes in operating assets and liabilities: (Increase) decrease in receivables 9,711 (8,286) (Increase) decrease in inventories (excluding land) (2,806) (1,169) Increase (decrease) in payables (341) 10,525 Increase (decrease) in provisions 2,700 (540) Increase (decrease) in other liabilities 306 (360) 9,570 171

Net cash inflow from operating activities 80,902 83,022

106 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

32 Controlled Entities Empire Theatres Pty Ltd The incorporated entity, Empire Theatres Pty Ltd (ACN 086 482 288) is wholly owned by Council. The financial statements of Empire Theatres Pty Ltd, incorporating Empire Theatre Projects Pty Ltd (ACN 135 705 878), are subject to separate audit certification by the Queensland Auditor-General or his delegate.

The audited financial statements of Empire Theatres Pty Ltd, incorporating Empire Theatre Projects Pty Ltd, as at 30 June 2013, disclosed net assets of $611,667.

Empire Theatres Foundation is an entity controlled by Empire Theatres Pty Ltd. The financial statements of the Empire Theatres Foundation are subject to separate audit certification by the Queensland Auditor-General or his delegate.

The audited financial statements of Empire Theatres Foundation as at 30 June 2013, disclosed net assets of $583,495.

Jondaryan Woolshed Pty Ltd The incorporated entity, Jondaryan Woolshed Pty Ltd (ACN 128 419 983) is wholly owned by Council. The financial statements of Jondaryan Woolshed Pty Ltd are subject to separate audit certification by the Queensland Auditor-General or his delegate.

The audited financial statements of Jondaryan Woolshed Pty Ltd as at 30 June 2013, disclosed net liabilities of $189,350.

Toowoomba and Surat Basin Enterprises Pty Ltd The incorporated entity, Toowoomba and Surat Basin Enterprises Pty Ltd (ACN 128 419 983) is wholly owned by Council. The financial statements of Toowoomba and Surat Basin Enterprises Pty Ltd are subject to separate audit certification by the Queensland Auditor-General or his delegate.

The audited financial statements of Toowoomba and Surat Basin Enterprises Pty Ltd as at 30 June 2013, disclosed net assets of $350,093.

The Toowoomba Regional Council has committed necessary funding support in its 2013/2014 Annual Budget and forward budgets for 2014/2015 and 2015/2016 which provides ‘going concern’ assurance for the Empire Theatres Pty Ltd and Jondaryan Woolshed Pty Ltd.

The Toowoomba and Surat Basin Enterprises Pty Ltd is the recipient of Council funding of a fixed amount to supplement membership revenue.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 107 Notes to the Financial Statements For the year ended 30 June 2013

33 Financial Instruments Toowoomba Regional Council has exposure to the following risks arising from financial instruments: - credit risk - liquidity risk - market risk

This note provides information (both qualitative and quantitative) to assist statement users evaluate the significance of financial instruments on the Council’s financial position and financial performance, including the nature and extent of risks and how the Council manages these exposures.

Financial risk management Toowoomba Regional Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk management policies. Council’s management approves policies for overall risk management, as well as specifically for managing credit, liquidity and market risk. The Council’s risk management policies are established to identify and analyse the risks faced, to set appropriate limits and controls and to monitor these risks and adherence against limits. The Council aims to manage volatility to minimise potential adverse effects on the financial performance of the Council. Toowoomba Regional Council does not enter into derivatives.

Credit Risk Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These obligations arise principally from the Council’s investments and receivables from customers. Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment obligations. The carrying amount of financial assets represents the maximum credit exposure. Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or similar state/ commonwealth bodies or financial institutions in Australia, in line with the requirements of the Statutory Bodies Financial Arrangements Act 1982. No collateral is held as security relating to the financial assets held by Toowoomba Regional Council. The following table represents the maximum exposure to credit risk based on the carrying amounts of financial assets at the end of the reporting period:

2013 2012 Note $’000 $’000 Financial Assets Cash and cash equivalents 13 163,985 171,292 Equity investments 17 20 20 Receivables – rates 14 8,801 9,789 Receivables – other 14 19,663 28,386 Other credit exposure Guarantee 28 1,939 1,614 Total 194,408 211,101

Cash and cash equivalents The Council may be exposed to credit risk through its investments in the QTC Cash Fund and QTC Working Capital Facility. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties. Deposits with the QTC Cash Fund are capital guaranteed. Working Capital Facility deposits have a duration of one day and all investments are required to have a minimum credit rating of “A-”, therefore the likelihood of the counterparty having capacity to meet its financial commitments is strong.

108 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

33 Financial instruments – continued Trade and other receivables In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts. In effect this power protects the Council against credit risk in the case of defaults. In other cases, the Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk. By the nature of the Councils operations, there is a geographical concentration of risk in the Council’s area. Because the area is largely (e.g. agricultural/mining), there is also a concentration in the (e.g. agricultural/ mining) sector. Ageing of past due receivables and the amount of any impairment is disclosed in the following table:

Liquidity risk Past due Fully Less Less than 30 31 to 60 61 to 90 Over 90 Total Performing Impaired days days days days $’000 $’000 $’000 $’000 $’000 $’000 $’000 Receivables: 2013 23,942 4,061 30 - 808 (377) 28,464

2012 30,964 1,323 2,389 152 3,683 (336) 38,175

Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Toowoomba Regional Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC and other financial institutions. The Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities, both short and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in note 22. The following table sets out the liquidity risk in relation to financial liabilities held by the Council. It represents the remaining contractual cashflows (principal and interest) of financial liabilities at the end of the reporting period, excluding the impact of netting agreements:

0 to 1 year 1 to 5 years Over 5 years Total contractual Carrying cash flows amount 2013 $’000 $’000 $’000 $’000 $’000 Trade and other payables 19,426 - - 19,426 19,426 Loans QTC 18,008 67,521 148,066 233,595 155,340 37,434 67,521 148,066 253,021 174,767 2012 Trade and other payables 19,447 - - 19,447 19,447 Loans QTC 16,958 66,530 146,885 230,373 151,733 36,405 66,530 146,885 249,820 171,180 The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 109 Notes to the Financial Statements For the year ended 30 June 2013

33 Financial instruments – continued Market risk Market risk is the risk that changes in market prices, such as interest rates, will affect the Council’s income or the value of its holdings of financial instruments.

Interest rate risk Toowoomba Regional Council is exposed to interest rate risk through investments and borrowings with QTC and other financial institutions (if applicable). The Council has access to a mix of variable and fixed rate funding options through QTC so that interest rate risk exposure can be minimised.

Sensitivity Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying amount at reporting date. The following interest rate sensitivity analysis depicts what effect a reasonably possible change in interest rates (assumed to be 1%) would have on the profit and equity, based on the carrying values at the end of the reporting period. The calculation assumes that the change in interest rates would be held constant over the period.

Change in profit & (loss) from Change in equity from 2013 Net carrying amount 1% increase 1% decrease 1% increase 1% decrease Financial assets and liabilities that are held at variable interest rates total: $’000 $’000 $’000 $’000 $’000 QTC cash funds 80,649 806 (806) 806 (806) Other investments 7,449 74 (74) 74 (74) Loans – QTC (155,340) (1,553) 1,553 (1,553) 1,553 Net total (67,242) (673) 673 (673) 673

2012 QTC cash funds 9,105 91 (91) 91 (91) Other investments 1,328 13 (13) 13 (13) Loans – QTC (151,733) (1,517) 1,517 (1,517) 1,517 Net total (141,300) (1,413) 1,413 (1,413) 1,413

In relation to the QTC loans held by the Council, the following has been applied: QTC Fixed Rate Loan – financial instruments with fixed interest rates which are carried at amortised cost are not subject to interest rate sensitivity. QTC Generic Debt Pool - the generic debt pool products approximate a fixed rate loan. There is a negligible impact on interest sensitivity from changes in interest rates for generic debt pool borrowings. QTC Client Specific Pool - client specific pool products are often rebalanced to a target benchmark duration. This partially exposes clients to the level of interest rates at the time of rebalancing. Sensitivity on these products is provided by QTC through calculating the interest effect over the period. The sensitivity analysis provided by QTC is currently based on a 1% change but this is subject to change.

Fair Value The fair value of trade and other receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.

110 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

The fair value of borrowings with QTC is based on the market value of debt outstanding. The market value of a debt obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount required to be repaid if this was to occur at balance date. The market value of debt is provided by QTC and is discussed below and disclosed in note 22. QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market value movements to clients’ cost of funding. The book value represents the carrying value based on amortised cost using the effective interest method.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 111 Notes to the Financial Statements For the year ended 30 June 2013

34 National Competition Policy Activities to which the code of competitive conduct is applied

The Toowoomba Regional Council applies the competitive code of conduct to the following activities: Water & Wastewater Other Roads Private Works Fleet & Plant Building Certification Aquatic Facilities Quarry Operations Cemetery Operations Refuse Collection Waste Management Aerodromes Laboratory Services

This requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity. The CSO value is determined by Council, and represents an activities cost(s) which would not be incurred if the primary objective of the activities was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO’s by the Council.

The following activity statements are for activities subject to the competitive code of conduct:

Water & Private Fleet & Plant Building Aquatic Other Roads Wastewater Works Services Certification Facilities 2013 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 $’000 Revenue for services provided to 2,314 28,639 7,245 31,648 25 2 the Council Revenue for services provided to 85,302 5,605 360 162 323 1,874 external clients Community service obligations 293 - - - 400 1,464 87,909 34,244 7,605 31,810 748 3,340 Less : Expenditure 75,111 33,491 5,655 26,215 866 3,330 Surplus (deficiency) 12,798 754 1,950 5,595 (117) 11

Quarry Cemetery Refuse Waste Laboratory Aerodromes Operations Operations Collection Management Services 2013 2013 2013 2013 2013 2013 $’000 $’000 $’000 $’000 $’000 $’000 Revenue for services provided to - 3,254 - 1,195 the Council Revenue for services provided to - 393 13,108 3,289 435 317 external clients Community service obligations 423 1,589 2,000 - - 816 13,108 8,133 2,435 1,512 Less : Expenditure 50 1,140 9,091 8,195 1,368 1,208 Surplus (deficiency) (50) (324) 4,017 (62) 1,067 304

112 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2013

34 National Competition Policy – continued CSO’s were paid during the reporting period to the following activities.

Activities CSO description Actual $,000

Water & Wastewater To provide pensioner rebates on water and wastewater activities. 293

Waste Management To provide public dumping facilities. 1,589

To provide a standard of building compliance and general Building Certification 400 development.

Provide recreational facilities to as wide as possible cross section Aquatic Facilities 1,464 of the community.

To maintain historical headstone sections and to provide cemetery Cemetery Operations 423 facilities to rural areas.

To provide an economic benefit to the region and to provide airport Aerodromes 2,000 facilities to rural areas.

Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 113 114 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 115 116 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 117 118 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL 119 120 Annual Report 2012/13 • TOOWOOMBA REGIONAL COUNCIL PO Box 3021, Toowoomba Village Fair Qld 4350 P 131 TRC (131 872) F 1800 448 882 E [email protected] W www.toowoombaRC.qld.gov.au