Annual Report 2018 - 2019

Rich traditions. Bold ambitions. Regional Council 2 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Contents

Fast Facts about our Community 4 Mayor's Report 6 Councillors 8 Governance Structure 9 CEO’s Report 10 Executive Leadership Team 12 Council Group Performance 13 Council Goal Performance 15 Goal 1 - Culture 16 Goal 2 - Community 18 Goal 3 - Natural Environment 20 Goal 4 - Built Environment 22 Goal 5 - Infrastructure and Asset Management 24 Goal 6 - Economy 26 Goal 7 - Governance 28 Goal 8 - Innovation and Technology 30 Legislative Information 32 Community Financial Report 44 Financial Report 50

About this report Our Annual Report summarises Council’s 2018-19 activities, our many achievements, our challenges and a snapshot of the year gone by. It is also an opportunity for us to profile our organisation, the teams within it and our beautiful region.

Council measures its performance against the 2014-2019 Corporate Plan and this is the final year of reporting against this Plan.

We view our Annual Report as one of the key accountability mechanisms between Council and our community and it is developed in compliance with Section 104 of the Local Government Act 2009.

This report is also available in full on our website at: www.tr.qld.gov.au/annualreport

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 3 FAST FACTS ABOUT OUR COMMUNITY 87 roundabouts

Australia’s second Gross Domestic Product largest inland city $10.81 billion

85,369 jobs

6,591 km sealed and 716 km of footpaths unsealed roads and cycleways 2.94 million annual 13 libraries visitors to our region

Population 167,657

Land area 1,780 km of water 12,973km2 pipeline

575 Council- 2,578 development maintained parks approvals MAYOR'S REPORT The ’s transformation over the past 10 This year, Council injected $475 million into the economy, years has been remarkable and the next decade promises including operational (service delivery) expenditure of to be just as exciting. $322 million and a capital (infrastructure) program of $153 million. Our regional centre, Toowoomba, has transformed from a large country town to a cosmopolitan city, influenced Local government cannot be left to shoulder the full by our emerging laneway culture. We have a jet-capable cost of providing essential infrastructure for our growing airport, a large data centre, solar farms and the initial communities, while meeting residents’ increased approvals to commence construction on the . expectations across other activities. We will continue to advocate for our fair share of funding to achieve We have Rich Traditions and Bold Ambitions. community goals and ambitions. In 2013 we sat down with the community to set our vision Council continued building and maintaining our for the future: a roadmap to guide how we would use infrastructure network to support projected growth, resources strategically to realise current and future needs including the Toowoomba Enterprise Hub Stimulus Project and aspirations. (Nass Road Upgrade Project), Pittsworth Industrial Precinct This is the last time we report against our 2014-19 Enabling Project, including Gap Road, and Peters Road in Corporate Plan. West .

Our 2018-19 Annual Report also chronicles the Our long-term ambition of diverting heavy traffic out of achievements of our Region and provides a transparent Toowoomba edged closer to reality, with Council upgrading summary of how we spent money received via rates, Boundary Street, Mort Street and Griffiths Street to provide grants, fees and revenue. links to the Toowoomba Second Range Crossing.

Our Region has a diverse and stable economy that is able This $1.6 billion project is a game-changer for the Region to avoid the boom and bust cycles experienced by many and I welcome the completion of this landmark project. other regions. Last year the Gross Regional Product for the Toowoomba Region edged over $10.81 billion, up 4.5% Over the past decade, our Region has experienced on the previous 12 months. Our average growth over the dramatic climatic conditions, including a devastating flash past 10 years is around 3.6% per year, exceeding the state flood in 2011 and prolonged drought. average of 2.1%. We can no longer rely on ‘regular’ seasons with our dams Looking forward, there is reason to be optimistic with running low. This year Council responded to challenging strong employment growth, the highest in the state, and a drought conditions by investing in infrastructure and solid population growth rate. innovation to ensure resilient water and sewerage services.

6 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Key projects included construction of an 8.2ML reservoir New technologies, such as NBN, are changing the way at Charlton, securing water for Hodgson Vale and new we do business, find information and communicate. Our sewerage infrastructure at Highfields. Region is becoming a communications hub, with the recent construction of the only accredited Tier III data Dam pump stations and water mains projects also centre outside an Australian capital city. progressed for the Toowoomba Bulk Water Supply dams (Cooby, Perseverance and Cressbrook), along with the Council continued to strengthen and promote a ongoing staged renewal and replacement of sewage unique calendar of regional and local events, with our pump stations across the Region. support of the award-winning Toowoomba Carnival of Flowers, Regional Summer Tunes, the Millmerran Camp I was thrilled to attend the official opening of the $28 Oven Festival and hundreds of other community-led million Highfields Sport and Recreation Park in April, development programs including Day and following staged construction by Council over several High Country Festivals. years. Sporting clubs connect communities and promote healthy and active lifestyles and it’s heartening to hear Sports tourism grew across the Region and the annual that netball, cricket, football, running and rugby clubs are Hutchinson Builders Toowoomba International tennis event utilising this wonderful facility. was successfully delivered despite significant weather delays throughout the event. When people think of the Toowoomba Region, they think of fresh country air, wide open spaces, rich agricultural Ten Sports Tourism Grants, valued at $58,000 were also land and award-winning parks and gardens. awarded to support events across the Region, including the Pony Club Queensland State Championships at the I am proud of the role Council has played in contributing Millmerran Showgrounds and the Arthur Postle Gift in to our liveability, through the provision of parks, barbecues Pittsworth. and bikeways that promote healthy lifestyles, increase accessibility and enhance community connections. Attracting international students to study in our Region gained traction during this year, with the launch of Study This year, Council completed an extensive Parks Renewals Toowoomba, an education and training industry cluster program to ensure our 575 Council-maintained parks that will support the growth of the education industry. are of the highest standards for visitors and residents, with upgrades at numerous parks including Haden Park, The launch of Study Toowoomba was made possible Mountain View Park and Harlaxton Park. through a grant of $145,000 over two years from the Queensland Government under the International Transforming the city into a thriving regional centre for Education and Training Partnership Fund, with matching the remained a priority, with continued funding being provided by Council and the University of investment in the City Centre Master Plan. Southern Queensland.

The 120 year-old Heritage-listed Toowoomba Railway Sister City relationships continued with Takatsuki (Japan), Goods Shed was officially opened. Upgrades to Cathro Whanganui (New Zealand) and Paju (South Korea). I Park also progressed to create a link from the Railway enjoyed my official role of welcoming visiting students Parklands Precinct to Queens Park. from Mishima High School, Ena City High School and Haruhigaoka High School in Japan to our Region. Highfields is a thriving and growing urban hub, with population projections suggesting that an additional 7000 At Council we believe it is our responsibility to help build people will call this area their home by 2031. This year, resilient and productive communities through continued Council worked in partnership with the community to support of multicultural, disability, youth and senior progress the Highfields Library Project, with construction services, including the Council Cab service, YouthConnect expected to commence in 2020. The new facility will and the Linking Leaders project. include a library, customer service centre and a community meeting facility. At Council we actively seek to understand our community’s aspirations and needs and are committed to Council also researched options for the provision of informing, explaining and listening. Your valuable feedback library services to the western growth corridor (including will help us to continue to deliver exceptional outcomes. Wilsonton and Glenvale) and the Cambooya and Westbrook areas, as part of a wider strategic discussion on On behalf of my fellow Councillors, I thank CEO library service levels. Brian Pidgeon for his leadership during the year and acknowledge the ongoing contribution of our valued staff Council commenced a review of its Toowoomba Regional and committed volunteers. Planning Scheme this year, with community workshops in March and June. The statutory document sets out a vision, I would also like to thank my fellow Councillors for their policies and provisions for the use, development and continued passion, support and service to the community. protection of land in the Toowoomba Region. Changes to the planning scheme will decide where we zone land I am confident our combined efforts will strengthen our for urban expansion, water, waste and road infrastructure rich traditions and ensure current and future generations required to service the community. take full advantage of our bold ambitions.

With any changes to the Planning Scheme, there is always a great challenge to balance the needs of the development industry with the expectations of the community on regional growth. This is a challenge we take seriously and I invite members of the community to provide input on this important review. Paul Antonio Toowoomba Regional Council Mayor

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 7 COUNCILLORS Cr Paul Antonio MAYOR, CHAIR - ECONOMIC DEVELOPMENT COMMITTEE P 07 4688 6433 M 0429 954 109 E [email protected]

Cr Carol Taylor Cr Nancy Sommerfield DEPUTY MAYOR, CHAIR - WATER & WASTE COMMITTEE CHAIR - INFRASTRUCTURE COMMITTEE P 07 4688 6605 M 0499 774 278 P 07 4688 6615 M 0417 723 948 E [email protected] E [email protected]

Cr Geoff McDonald Cr Megan O’Hara Sullivan CHAIR - ENVIRONMENT & PORTFOLIO LEADER - FINANCE & COMMUNITY COMMITTEE BUSINESS STRATEGY P 07 4688 6784 M 0499 774 276 P 07 4688 6794 M 0477 071 824 E [email protected] E megan.o’[email protected]

Cr Mike Williams Cr James O’Shea CHAIR - FINANCE & BUSINESS PORTFOLIO LEADER - INFRASTRUCTURE STRATEGY COMMITTEE 07 4688 6406 0474 074 824 P M P 07 4688 6421 M 0428 182 976 james.o’[email protected] E E [email protected]

Cr Bill Cahill Cr Chris Tait CHAIR - PLANNING & PORTFOLIO LEADER - WATER & WASTE DEVELOPMENT COMMITTEE P 07 4688 6782 M 0419 908 083 P 07 4688 6793 M 0499 774 274 E [email protected] E [email protected]

Cr Joe Ramia Cr Anne Glasheen PORTFOLIO LEADER - ENVIRONMENT PORTFOLIO LEADER - PLANNING & COMMUNITY & DEVELOPMENT P 07 4688 6783 M 0491 490 900 P 07 4688 6800 M 0408 718 720 E [email protected] E [email protected]

8 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Governance Structure

COMMUNITY1

Elects Council and provides input

COUNCIL COMMITTEES

ADVISORY CONTROLLED 3 COMMITTEES ENTITIES3 COUNCIL2 COMMITTEES

Manage specific functions Consider strategic direction eg Empire Theatre Decision makers and provide recommendations

FEDERAL & AUDIT & RISK STATE GOVT4 COMMITTEE3

CEO5 Provides authority Oversees audit and risk management. Provides assurance. Directs Council’s operational groups

$

ENVIRONMENT FINANCE & INFRASTRUCTURE5 PLANNING & WATER & & COMMUNITY5 BUSINESS DEVELOPMENT5 WASTE5 STRATEGY5

1. The community elects the Council and provides input to determine the region's priorities. 2. Council establishes priorities and considers recommendations received from its Committees. 3. Committees* consider the strategic direction for the region, within specialised areas, and provide recommendations to Council. A few specific functions within the region are managed by controlled entities established by Council including Jondaryan Woolshed, Empire Theatre and, Toowoomba and Surat Basin Enterprise (TSBE). The Audit and Risk Committee oversees the activities of audit and provides an independent, external review of Council's governance and internal control frameworks. 4. Federal and State Government provide authority to Council through legislative instruments. 5. Through the Chief Executive OfficerCEO) ( , Council decisions are carried out. The CEO also provides Council with advice on priorities and strategic direction and oversees Council's operational groups.

*Current committees can be viewed at www.tr.qld.gov.au/committees

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 9 CEO’S REPORT Everyday our talented staff manage everything from multi- Roadshows, staff surveys and staff forums were some of million dollar road projects to learn-to-swim lessons and the ways we shared information and sought feedback interments at our local cemeteries. from staff, with various initiatives implemented across the organisation to improve accountability, safety and Our Region spans almost 13,000km2 and this year Council wellbeing, teamwork, honesty and respect. These faced the ongoing challenge of delivering value-for- identified values will guide our future planning. money services, while continuing to invest in infrastructure initiatives to secure our future. Open and transparent decision making is a hallmark of good governance and this year Council adopted a new Corporate The Annual Report tells a story of our achievements Plan (2019-24), in consultation with the community. and challenges, and an opportunity for our organisation to demonstrate the value of local government and its The roadmap considered feedback from the current contribution to the Region. Corporate Plan, a review of Council policies and plans, results of the community survey and community Our 2018-19 Annual Report also provides a comprehensive consultation to establish the direction and aspirations summary of our financial position and how we finalised for the Region. our achievement of the goals articulated in our 2014-19 Corporate Plan. I am confident the ambitious plan balances the needs of the community, while taking into consideration the Key achievements for Council this year included operational capacity and capability of Council. delivering a net operating surplus for the fifth year running and delivering 97% of activities planned against our A plan for the future often starts with a vision statement Operational Plan. and I believe we can collectively achieve our goal to ensure the Toowoomba Region is a vibrant, inclusive and Broader organisational reporting was also implemented to liveable Region where respect for tradition and diversity increase transparency, along with continual engagement is embraced. across branches to improve understanding of business requirements and expected behaviours. Our staff are our greatest asset and this year Council continued to invest in attracting and retaining empowered, Fostering an appropriate corporate culture that aligns skilled workers to provide exceptional service to our with Council’s mission, values and behaviours, was a key community. objective of Council this year, as we focused on improving communication and knowledge sharing across the Technology is changing rapidly and Council embraced organisation to drive positive cultural change. opportunities to use technology to improve efficiency

10 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Key achievements for Council this year included delivering a net operating surplus for the fifth year running and delivering 97% of activities planned against our Operational Plan.

and enhance service delivery, with staff training in Waste Services performed collection and disposal of various platforms. waste to a high standard, completing 116,903 wheelie bin collections per week. Council was named a finalist at the Queensland Training Awards, recognising our commitment to training in the Environmental Health Services enhanced community large employer category. health and wellbeing across our Region, by investigating health and noise complaints and facilitating responsible Creating professional pathways for people across our pet ownership. Specifically, Council responded to more Region continued to be a priority, with Council supervising than 5,622 requests to investigate, monitor and enforce 10 university graduates, seven cadets, eight interns, nine animal management standards and 3,927 environmental apprentices and 30 trainees this financial year. We also health complaints. hosted seven school-based trainees and two school- based apprentices and fostered inter-organisational The Toowoomba Region enjoys an envious reputation as relationships and collaboration across Council. a culturally rich, vibrant and inclusive community, with a lifestyle unmatched by larger cities. The pressure on local government to deliver key services, respond to rapid technological changes and invest in Libraries and art galleries across the Region continued asset and construction renewal has never been greater. to be local hubs for reading, learning, culture and social interaction. Meeting rooms were well-utilised and Council’s This year, Council responded to this challenge by popular library programs and activities continued to attract investing $153 million to renew, upgrade and build new people of all ages. assets for the community, including expenditure on water, wastewater, buildings, roads and bridges. I would like to thank our Mayor Paul Antonio and elected members for their vision and enthusiasm this financial Key wastewater projects included progress on the year and acknowledge the collective leadership of the Wirraglen (Highfields) Sewerage Project, replacement of Executive Management Team and all staff members. the sewage pump station in Lorrimer Street, Oakey and Kara View Estate sewerage system upgrade. Working at Toowoomba Regional Council is a great privilege and I am proud of my colleagues and their Construction and Maintenance branches delivered commitment to providing high levels of customer service exceptional levels of service, effectively managing and value-for-money services. an extensive works program for the Region, with services predominantly undertaken by a day-labour This year, together, we have achieved many workforce. accomplishments.

We delivered a $21 million road renewals program to This coming year will be busy, as we progress towards upgrade and maintain sealed and unsealed roads. Council partnering with the community to implement our 2019-24 also completed significant road infrastructure projects Corporate Plan and ensure a sustainable and bright future including the Mort Street, Boundary Street and Griffiths for our Region. Street upgrades.

Planning for the re-introduction of the Queensland Government’s waste disposal levy on 1 July 2019, was a key priority during the financial year. Preparatory works included installation of fencing, lighting and CCTV, additional site surveys and a review of data and reporting Brian Pidgeon requirements. Chief Executive Officer Toowoomba- Regional Council

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 11 EXECUTIVE LEADERSHIP TEAM

Brian Pidgeon Arun Pratap CHIEF EXECUTIVE OFFICER GENERAL MANAGER - Finance & Business Strategy P 131 872 P 131 872 E [email protected] E [email protected]

Damian Platts Mike Brady GENERAL MANAGER GENERAL MANAGER - Water & Waste Services - Infrastructure Services Group P 131 872 P 131 872 E [email protected] E [email protected]

Nick Hauser Stewart Somers GENERAL MANAGER GENERAL MANAGER - Environment & Community Services - Planning & Development P 131 872 P 131 872 E [email protected] E [email protected]

12 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Greater than or equal to 85% - is COUNCIL GROUP PERFORMANCE recognised as being on track Toowoomba Regional Council has continued our on-going mission to improve Greater than or equal to 50%, but the liveability and attraction of our region by delivering valued and relevant below 85% - is recognised as being community services. We aim to plan for a sustainable and liveable future and this in need of increased attention starts with our Executive Leadership Team setting aspirational targets for their Below 50% - is recognised as respective areas. In the following section we provide a high-level overview of how underperforming our service areas are tracking against the objectives set out in our corporate plan. 2018-19 2017-18 2016-17 Office of theCEO 95% 87% 86% Chief Executive Officer 87% 72% 81% Enterprise Project Management Office* - 35% 100% Governance 96% 95% 94% Legal Services 100% 95% 10% Water and Waste Services 100% 99% 77% General Manager Water and Waste Services 85% 37% NA Waste Services 93% 88% 51% Water Infrastructure Services 100% 99% 95% Water Operations 103% 101% 97% Water Project Services 100% 80% 75% Infrastructure Services 97% 97% 97% General Manager Infrastructure Services 97% 100% N/A Construction & Maintenance - Executive Manager 100% 98% 100% Construction & Maintenance Central 98% 100% 97% Construction & Maintenance North 100% 100% 100% Construction & Maintenance South 100% 90% 96% Plant & Fleet 92% 98% 93% Project Services 100% 100% 96% Transport & Drainage Planning 92% 98% 95% Planning and Development Services 97% 96% 96% General Manager Planning and Development 100% 100% 98% Development Engineering and Plumbing Services 100% 98% 98% Development Services 99% 97% 98% Regional Architecture & Heritage 100% 100% 100% Strategic Planning & Economic Development 93% 104% 93% Environment and Community Services 97% 99% 88% General Manager Environment and Community Services 93% 100% 94% Community Development, Facilities & Tourism 98% 94% 94% Environmental Health Services 100% 100% 96% Library & Cultural Services 97% 99% 78% Parks & Recreation Services 97% 98% 94% Property Services 93% 95% 74% Finance and Business Strategy 97% 96% 96% General Manager Finance & Business Strategy 98% 98% 98% Customer Service 99% 100% 100% Financial Services 100% 100% 100% Information Communication & Technology 98% 93% 96% People & Organisational Development 91% 89% 93% Service Improvement 94% 93% 93% Stakeholder Engagement & Communications 99% 96% 96%

*This branch now forms a part of another branch's reporting structure

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 13 14 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 COUNCIL GOAL PERFORMANCE This scorecard summarises final progress against long-term targets central to our Vision and the implementation of our corporate objectives. It also provides an overview relating to the implementation of our 2014-2019 Corporate Plan. Overall performance is determined by our achievement against established performance measures and the progress of major initiatives. Our figures are based on the following:

Greater than or equal to 85% - is recognised as being on track Greater than or equal to 50%, but below 85% - is recognised as being in need of increased attention Below 50% - is recognised as underperforming

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 15 GOAL 1 - CULTURE

A responsive Council with focus on innovation and safety through collaboration and opportunity.

At Council we understand our people are our greatest asset and, with a team of empowered, skilled workers, we can continue to provide exceptional service to our community. As one of the largest employers in the region, we seek to attract and retain an innovative and engaged workforce that collaborates and fosters pride to achieve success. Council measures our cultural performance through investment in professional development, staff satisfaction and turnover and workplace health and safety incidents.

scorecard 2018-19 2017-18 CULTURE: A responsive Council with focus on innovation and safety through GOAL 1: 92% 89% collaboration and opportunity.

1.1 Responsive and effective service delivery 92% 89%

Foster an appropriate corporate culture that aligns with Council’s Mission, Values and 1.1.1 87% 72% Behaviours1

Develop and maintain healthy and safe working conditions and regularly review 1.1.2 100% 98% workplace health and safety practices1

Adopt a coordinated and collaborative approach to celebrating and rewarding 1.1.3 100% 100% achievements

Support culture incubators and collaborative working spaces, to foster inter- 1.1.4 84% 78% organisational relationships and collaboration across Council

1.1.5 Deliver professional development opportunities and pathways for all employees 80% 91%

Support business operations with effective workforce planning including recognising 1.1.6 95% 70% emerging technologies and transitioning employment opportunities

Attract and retain a skilled workforce through implementation of contemporary human 1.1.7 93% 99% resource practices and organisational development1

1. This was a new goal commencing in the 2017-18 financial year. Items 1.1.1, 1.1.2 and 1.1.7 have moved from other pre-existing goals.

16 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Work continued to improve culture throughout the Customer Service Bravo awards were expanded this year organisation including a series of CEO Roadshows. to include all employees.

We are one of only four local governments in to Council was named as a finalist at the Queensland be certified under the WHS Accreditation Scheme. Training Awards, recognising our commitment to training in the large employer category.

Council employed 1,773 people including 1,130 males and 643 females across Council.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 17 GOAL 2 - Community

A safe, healthy and equitable community that celebrates diversity and enjoys a quality lifestyle.

The Toowoomba Region enjoys an envious reputation as a culturally rich, vibrant and inclusive community, with a lifestyle unmatched by larger cities. Council places a high priority on providing equitable access to community infrastructure and services, and developing and supporting initiatives that encourage community wellbeing. Council measures our community goals through facility visitations and the area of open space per head of the population. We also monitor environmental and health standard breaches and the diversity of the community we serve.

scorecard 2018-19 2017-18 2016-17 COMMUNITY: A safe, healthy and equitable community that GOAL 2: 99% 99% 92% celebrates diversity and enjoys a quality lifestyle.

2.1 A Creative, educated community 99% 100% 82%

Identify and promote opportunities for arts, cultural expression and the 2.1.1 100% 100% 98% development of creative industries.

Ensure cultural facilities and programming meets the needs of the 2.1.2 99% 100% 89% community and regional development.

Provide contemporary library facilities and services across the region to 2.1.3 100% 100% 58% meet the needs of the community.

Identify and promote public art opportunities that enhance the urban 2.1.4 100% 95% 100% environment.

2.2 An active and healthy community 98% 99% 97%

2.2.1 Plan and provide an integrated and accessible network of open space. 99% 97% 95%

Plan and provide facilities and programs that enable participation in 2.2.2 96% 100% 100% sport and recreation.

Establish partnerships with stakeholders to increase opportunity for 2.2.3 100% 100% 100% participation in sport, recreation and community activity.

2.3 A safe, sustainable and resilient community 100% 100% 99%

Maintain and improve health standards including food safety, 2.3.1 103% 99% 96% immunisation and public health.

Maintain and improve environmental standards including animal and 2.3.2 pest management, site management, pollution control and waste 97% 100% 100% management and minimisation.

2.3.3 Improve community safety through design, information and programs. 100% 100% 100%

Enhance disaster management preparedness and capability in 2.3.4 100% 100% 100% collaboration with the community. Develop and implement effective community information and education 2.3.5 100% 100% 100% programs in collaboration with key community stakeholders. 2.4 A connected and inclusive community 95% 100% 100% Build social capital through provision of accessible community 2.4.1 93% 100% 100% infrastructure and programs. Provide equitable access to and advocate for a range of services, 2.4.2 100% 100% 100% programs and facilities to address disadvantage and foster inclusion.

18 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Stage two of the Highfields Sport and Recreation Park was opened in March.

122,304 young people attended Council youth programs.

Winter Wonderland was a resounding success with 5000 people participated in Learn to Swim, squad and 20,999 tickets sold. school programs.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 19 GOAL 3 NATURAL ENVIRONMENT

The region’s environmental assets including natural areas and resources, open space and agricultural lands, are conserved and enhanced for future generations.

When people think of the Toowoomba Region, they think of fresh country air, wide open spaces, rich agricultural land and our award-winning parks and gardens. As a region we have a joint responsibility to protect, restore and enhance our natural environment and work in partnership to promote sustainability. Water quality, the area of agricultural land and natural habitat are how we measure our natural environment performance, along with the number of environmental care groups in the region.

scorecard 2018-19 2017-18 2016-17 NATURAL ENVIRONMENT: The region’s environmental assets including GOAL 3: natural areas and resources, open space and agricultural lands, are 96% 95% 96% conserved and enhanced for future generations.

Green spaces, natural areas and natural resources are protected and 3.1 96% 95% 96% well managed. Develop and implement an environmental policy for the region that 3.1.1 92% 95% 95% protects and enhances natural and agricultural assets.

Build community awareness and participation in natural and agricultural 3.1.2 95% 93% 100% land conservation.

Plan and manage open space, parkland and natural areas to eradicate 3.1.3 pests and noxious weeds and promote biodiversity, water quality and 94% 88% 70% community use.

3.1.4 Protect, enhance and manage air, land and water quality. 100% 100% 100%

Implement water sensitive urban design and stormwater management 3.1.5 100% 100% 100% approaches that enhance natural systems and reduce risk of flooding.

20 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Council consulted the community on a draft Green Infrastructure Strategy which will create a plan for how we manage natural and living assets throughout the Region.

Council supplied 16,327.1ML of treated drinking water to Managing and maintaining Council’s network of 62,298 connected properties. conservation reserves and natural areas continued this year.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 21 GOAL 4 BUILT ENVIRONMENT

Well managed, integrated and connected growth, respecting community, environmental and heritage values.

Accessibility enhances liveability and Council is committed to investing in key infrastructure to ensure efficient and sustainable movement of people, freight and services across the region. Investment in roads, footpaths and carparks make it easy for us to work, live and play and maintain our enviable quality of life.

scorecard 2018-19 2017-18 2016-17 BUILT ENVIRONMENT: Well managed, integrated and connected growth, GOAL 4: 99% 100% 97% respecting community, environmental and heritage values.

4.1 Sustainable and prosperous urban and rural development 99% 100% 96%

Undertake strategic integrated land use and infrastructure planning that 4.1.1 responds to climate, is resource-wise, reinforces local character and 99% 98% 98% achieves innovation and design excellence.

Ensure planning supports economic development while protecting and 4.1.2 enhancing high quality agricultural lands, scenic amenity and community, 98% 100% 87% environmental and heritage values.

Plan centres and townships to provide a strong sense of identity, local 4.1.3 employment opportunities, community participation and access to 98% 100% 91% housing choices.

Ensure development accords with Toowoomba Regional Council’s planning 4.1.4 100% 97% 98% scheme, planning instruments, codes and legislation.

Implement improved business practices to ensure efficient and effective 4.1.5 97% 100% 100% planning and development assessment.

Develop in partnership with industry a standard for land development, design 4.1.6 100% 100% 91% and built form, to ensure continuous improvement.

Undertake catchment scale planning for natural hazards to mitigate 4.1.7 90% 90% 90% future risk.

4.2 A safe, equitable and integrated transport system 99% 99% 97%

Plan to ensure Toowoomba City is a principal regional activity centre 4.2.1 connected to a network of vibrant rural towns by an integrated transport 100% 100% 95% system.

Plan to ensure Toowoomba region is a strategic transport and logistics hub of 4.2.2 88% 98% 98% regional and national significance.

4.2.3 Improve safety, serviceability and efficiency of the region’s road network. 100% 99% 100%

Implement an integrated and accessible transport system for the region, 4.2.4 100% 100% 89% including a safe walking, cycling and public transport network.

4.2.5 Plan and regulate parking to meet the needs of community and business. 100% 100% 100%

22 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Council commenced a review of the Toowoomba Regional Planning Scheme this year.

Council purchased 20 hectares of land in central Following extensive community consultation, Council Highfields this financial year to control the future completed Flood Risk Assessment, Planning Evaluation expansion of the town centre as part of the Central and Scheme Amendments. Highfields Master Plan.

Major road infrastructure projects included the Nass Road 716km of footpaths and cycleways were inspected and Upgrade Project, Peters Road in Meringandan and Gap maintained by staff. Road in Pittsworth.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 23 GOAL 5 - INFRASTRUCTURE AND ASSET MANAGEMENT

A well planned and maintained infrastructure network that is sustainable and enhances local character and identity.

The Toowoomba Region is continuing to experience a trajectory of unprecedented growth. To support this, Council is committed to maximising utilisation of existing assets and investing in new infrastructure to enhance our liveability. Council considers whole-of-life asset costing and population growth when planning infrastructure projects. We measure our success through the provision of quality drinking water, sustainable waste management and a high quality sewerage network. The ratio of planned to reactive maintenance and investment in new infrastructure are also good indicators of how well we are managing our infrastructure and assets.

scorecard 2018-19 2017-18 2016-17 INFRASTRUCTURE AND ASSET MANAGEMENT: A well-planned and GOAL 5: maintained infrastructure network that is sustainable and enhances local 98% 93% 79% character and identity. Integrated and timely provision and management of sustainable 5.1 95% 96% 85% infrastructure and assets Develop a Strategic Infrastructure and Asset Management Plan to 5.1.1 guide the provision, maintenance, decommissioning, replacement and 97% 92% 79% enhancement of Council assets and infrastructure. Ensure the provision and management of infrastructure and assets meet 5.1.2 89% 97% 78% the needs and priorities of Council, the community and industry. Plan and implement urban improvement works which enhance local 5.1.3 character and identity, conserve and improve the region’s streetscapes 100% 100% 100% and provide iconic parkland.

5.1.4 Plan and deliver a safe, sustainable and efficient road network. 98% 99% 100% Plan and deliver safe and effectivestormwater management outcomes 5.1.5 100% 89% 89% and a flood resilient region.

5.1.6 Plan and deliver safe, sustainable and efficient airports and aerodrome services. 100% 100% 96%

5.2 A safe and sustainable water network 99% 93% 82% Plan, deliver and manage efficient and sustainable, high quality,water supply 5.2.1 99% 92% 82% systems. Advance water use efficiency andwater cycle innovation throughout 5.2.2 100% 100% 100% the region.

5.3 Sustainable waste management 96% 88% 48% Plan, deliver and manage efficient and sustainablewaste and resource 5.3.1 95% 100% 63% management services.

5.3.2 Plan and deliver an integrated waste infrastructure network. 95% 86% 42% Minimise the impacts of waste generation through modified consumer 5.3.3 behaviour, effectiverecycling infrastructure and practices, and the reduction of 100% 95% 48% emissions from landfill.

5.4 A sustainable sewerage network 106% 95% 86% Plan, deliver and manage a high quality sewerage network and treatment 5.4.1 107% 94% 85% facilities.

5.4.2 Effective and efficient use of recycledwater. 99% 100% 98%

24 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Council invested $22.6 million in water infrastructure capital projects this year to meet the current and future water needs of the growing Region.

Water Operations employed leak detectors to walk Flood Risk Management Plans for six high-priority areas through regional communities and provided mails and Urban Stormwater Management Plans for 19 priority drops and spoke with residents. catchments were completed.

Property Services managed a $5.8 million Waste Services performed collection and disposal of refurbishment of the Empire Theatre. 116,903 wheelie bin collections per week.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 25 GOAL 6 - ECONOMY

A dynamic and diverse economy creating industry development and employment opportunities.

Over its rich history, the Toowoomba Region has transformed its agricultural base into a diverse and strong economy, offering a range of business, investment and employment opportunities. Economic growth and development is important to the expansion of our region. Success is measured by our Gross Regional Product (GRP), population growth, the rate of unemployment, the number and diversity of business and other economic indicators.

scorecard 2018-19 2017-18 2016-17 ECONOMY: A dynamic and diverse economy creating industry GOAL 6: 94% 100% 93% development and employment opportunities.

6.1 A strong and diverse economy 90% 99% 95%

In partnership promote the region as ‘open for business’ by supporting 6.1.1 100% 100% 100% the growth of new and existing businesses.

In partnership implement the Toowoomba Region Economic Development 6.1.2 100% 92% 85% Strategy.

Plan to leverage the opportunities inherent in major projects across the region, including the Toowoomba Second Range Crossing, Brisbane West 6.1.3 56% 100% 100% Wellcamp Airport and surrounding Business Park and Melbourne Brisbane Inland Rail Project.

6.1.4 Ensure planning and infrastructure supports future economic growth. 87% 99% 90%

In partnership plan for and support the growth of strong, viable and diverse 6.1.5 100% 100% 100% economic clusters.

In partnership support the growth of the region’s creative industries sector 6.1.6 96% 100% 93% and the knowledge economy.

Leverage the unique character and assets of the region’s centres 6.2 96% 104% 92% and townships

6.2.1 Strengthen and promote a unique calendar of regional and local events. 97% 112% 100%

Develop a brand that positions the region as a business, tourism, lifestyle 6.2.2 96% 88% 80% and cultural destination.

Identify and plan the next generation civic projects that promote the region, 6.2.3 93% 100% 100% stimulate economic development and enhance identity.

Plan and support local economic development for regional centres and 6.2.4 100% 100% 100% townships.

26 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

The 120-year-old Heritage-listed Toowoomba Railway Goods Shed was officially opened in April.

Small Business Digital Literacy workshops were Council engaged with education and training providers to delivered to small businesses across the Region. launch Study Toowoomba.

More than 250,000 attended the Toowoomba Carnival of Flowers.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 27 GOAL 7 - GOVERNANCE

A well governed, responsive Council, providing effective leadership, management and respecting community values.

Toowoomba Regional Council is committed to effective and transparent governance including visionary leadership, facilitated community engagement, financial sustainability and responsive customer service. During the finacial year, Council implemented effective community consultation processes that enabled participation, engagement and collaboration, including the corporate website, surveys, meetings and workshops. Our operating surplus, asset sustainability and financial performance ratios were some of the measurements we used to assess financial sustainability.

scorecard 2018-19 2017-18 2016-17 GOVERNANCE: A well governed, responsive Council, providing GOAL 7: effective leadership and management, and respecting community 98% 95% 94% values.

A region governed in consultation and partnership with the 7.1 97% 94% 97% community Ensure leadership and decision making is transparent, accountable and 7.1.1 96% 91% 100% represents the current and future interests of the region’s communities.

Implement effective community consultation processes that enable 7.1.2 100% 100% 88% participation, engagement and collaboration.

Develop and maintain community participation, partnerships and volunteer 7.1.3 100% 100% 100% programs.

Implement an effective information and education program to encourage 7.1.4 94% 100% 98% community participation in decision making and build social capital.

7.2 Responsive and efficientcustomer service delivery 98% 93% 98%

Continually review and enhance service delivery to ensure Council’s 7.2.1 99% 99% 98% responsiveness to customer and community expectations.

Work collaboratively across Council to provide effective, efficient and 7.2.2 97% 92% 98% coordinated outcomes.

7.2.3 Build a culture of continuous improvement which recognises best practice 98% 35% 100%

7.3 Strategic management of Council 99% 98% 91%

Foster an appropriate corporate culture that aligns with Council’s Mission, 7.3.1 96% 100% 81% Values and Behaviours.

Develop and maintain healthy and safe working conditions and regularly 7.3.2 95% 90% 92% review workplace health and safety practices.

Develop and implement local laws, policies, standards and codes in 7.3.3 100% 100% 100% accordance with legislative requirements and ensure compliance.

28 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

Council completed 2,760 engagement activities for 115 separate projects.

An organisational Customer Experience Assurance Program commenced.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 29 GOAL 8 - INNOVATION AND TECHNOLOGY

Investing in innovation to create a dynamic future in people, process and technology which sustainably improve service delivery.

Council utilises information and communications technology to improve business functions and deliver benefits to the community. Key objectives include delivering a co-ordinated and collaborative approach to innovation and technology across Council, investment in mobile technology and using technology to improve service delivery and outcomes for our residents and visitors.

scorecard 2018-19 2017-18 2016-17

GOAL 8: INNOVATION & TECHNOLOGY: 93% 95% NA

8.1 Responsive and innovative people, process and systems 93% 95% NA

Dynamic collaborative working environments and incubators that support 8.1.1 100% 72% NA innovation and entrepreneurial approaches

Adopt a co-ordinated and collaborative approach to innovation and 8.1.2 100% 100% NA technology

Implement reliable and contemporary information, knowledge and 8.1.3 89% 95% 94% management systems1

Identify and implement process and system improvements, facilitating 8.1.4 94% 98% NA improved decision

1. Historic comparative scores have been moved from other areas of the Operational Plan.

30 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 achievements

The corporate website continues to be Council’s primary communication channel with an average 52,522 website users per month.

ICT received the Harry Haxton Shield for Excellence for achieving outstanding results in records and information management and making notable contributions to records and information management in Queensland.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 31 LEGISLATIVE INFORMATION 2018-2019

Resolutions made during the financial year under section 250 (2)Local Government Regulation 2012: No resolution was made pursuant to section 250 (2).

Resolutions made during the financial year under section 206 (2)Local Government Regulation 2012: No resolution was made pursuant to section 206 (2). The last resolution made was at the Finance and Business Strategy Committee on 9 September 2015 in adopting the 2.51 Non-Current Asset Policy.

Councillor Remuneration (Section 186 (a) Local Government Regulation 2012)

COUNCILLOR REMUNERATION Councillor Total remuneration range* Superannuation paid by Council Total Antonio, Paul Cr $175,710 $21,085 $196,795 Taylor, Carol Cr $119,801 $14,376 $134,177 Sommerfield, Nancy Cr $103,830 $12,460 $116,290 McDonald, Geoff Cr $103,830 $12,460 $116,290 O'Hara Sullivan, Megan Cr $103,830 $12,460 $116,290 O'Shea, James Cr $103,830 $12,460 $116,290 Williams, Mike Cr $103,830 $12,460 $116,290 Cahill, Bill Cr $103,830 $12,460 $116,290 Tait, Chris Cr $103,830 $12,460 $116,290 Ramia, Joe Cr $103,830 $12,460 $116,290 Glasheen, Anne Cr $103,830 $12,460 $116,290 Total $1,229,981 $147,600 $1,377,581 *Rounded to the nearest $

The facilities provided to each Councillor during the financial year in accordance with 2.53 Expenses Reimbursement (Councillors) Policy

Facilities provided to Councillors (Section 186 (b) Local Government Regulation 2012)

FACILITIES AND DEVICES

Councillor Laptop Computer Smart Phone iPad Motor Vehicle Antonio, Paul Cr Taylor, Carol Cr Sommerfield, Nancy Cr McDonald, Geoff Cr O'Hara Sullivan, Megan Cr O'Shea, James Cr Williams, Mike Cr Cahill, Bill Cr Tait, Chris Cr Ramia, Joe Cr Glasheen, Anne Cr

32 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Councillor Expenses (Section 186 (b) Local Government Regulation 2012) The expenses incurred by each Councillor during the financial year in accordance with 2.53 Expenses Reimbursement (Councillors) Policy

COUNCILLOR EXPENSES AND VEHICLES Councillor Accomm- Professional Travel & Council Vehicle Meals ($) Community Hospitality Legal ($) Total ($) odation Development Transfers ($) Engagement ($) Councillor Cost ($) ($) ($) ($) payment ($) Antonio, $5,156.45 $9,939.39 $12,477.13 -$3,342 $22,125.24 $1,118.67 $1,677.19 $2,095.24 $15,000 $66,247.31 Paul Cr Taylor, $5,712.33 $14,056.12 $10,061.08 -$3,342 $14,760.00 $2,114.24 $432.44 $109.09 $- $43,903.30 Carol Cr Sommerfield, $1,265.22 $11,823.54 $1,453.35 -$3,342 $15,608.04 $560.99 $749.99 $159.09 $- $28,278.22 Nancy Cr McDonald, $1,085.42 $7,888.89 $7,559.65 $- $- $257.88 $542.27 $- $- $17,334.11 Geoff Cr O'Hara $693.71 $8,727.34 $74.23 -$3,342 $20,676.36 $183.64 $270.98 $- $- $27,284.26 Sullivan, Megan Cr O'Shea, $- $7,111.34 $466.32 -$3,342 $10,153.92 $1,021.67 $75.59 $- $- $15,486.84 James Cr Williams, $834.00 $6,902.97 $3,117.47 -$3,342 $14,917.08 $197.11 $136.36 $- $- $22,762.99 Mike Cr Cahill, $154.55 $31,849.67 $109.78 -$3,342 $14,322.00 $142.18 $146.24 $- $- $43,382.42 Bill Cr Tait, $475.49 $7,127.33 $- -$3,342 $15,254.16 $294.02 $110.73 $- $- $19,919.73 Chris Cr Ramia, $303.81 $6,953.88 $970.57 -$3,342 $10,725.60 $151.41 $59.09 $- $- $15,822.36 Joe Cr Glasheen, $2,451.01 $9,882.02 $1,480.83 -$3,342 $20,692.20 $623.81 $193.60 $193.32 $- $32,174.79 Anne Cr Total $18,131.99 $122,262.49 $37,770.41 -$33,420.00 $159,234.60 $6,665.62 $4,394.48 $2,556.74 $15,000 $332,596.33 *Overseas travel costs are included in the Councillor’s Expenses and Vehicles summary

Number of Local Government Meetings attended (Section 186 (c) Local Government Regulation 2012)

COUNCIL MEETING ATTENDANCE Meetings Attended Absent Councillor Committee Ordinary Meetings Special Meetings Official Council Personal Reasons Meetings of Council of Council business or Unwell

Total Meetings Held 60 12 11 Antonio, Paul Cr 54 10 10 9 Taylor, Carol Cr 60 10 9 2 2 Sommerfield, Nancy Cr 54 9 8 1 11 McDonald, Geoff Cr 60 12 11 O'Hara Sullivan, Megan Cr 60 12 11 O'Shea, James Cr 57 12 11 3 Williams, Mike Cr 48 12 9 7 7 Cahill, Bill Cr 60 12 7 1 3 Tait, Chris Cr 54 11 10 8 Ramia, Joe Cr 60 12 10 1 Glasheen, Anne Cr 60 11 10 2

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 33 Administrative action complaints (Section 187 Local Government Regulation 2012) Toowoomba Regional Council is committed to dealing fairly with administrative action complaints and reviewed 60 complaints during 2018-19. Council has implemented its Complaints Management Framework to deliver a quality service which has, as its foundation, a high level of customer service. As part of this service, Council seeks to ensure an efficient and effective response to operational and administrative concerns. The number of complaints received in 2018-2019 decreased by 13% from the previous year.

ADMINISTRATIVE ACTION COMPLAINTS Unresolved Complaints (Brought Complaints Complaints Unresolved Complaints (carried forward from previous year) Received Resolved forward to next year) 2018/19 12 65 60 17

Complaints (Section 186 (f) Local Government Regulation 2012) The Local Government Act 2009 provides a framework for assessing complaints about the conduct or performance of Councillors. Council's 2.72 Investigation Policy details how complaints about the inappropriate conduct of Councillors will be dealt with as required under the Act. It is a requirement under the Local Government Regulation 2012 that the Annual Report contains details of complaints received about Councillors conduct or performance. Orders and complaints about Councillors during the financial year are shown in the tables.

For the period 1 July 2018 to 2 December 2018 Section of LGA Type of order/complaint Number 180(2) and (4) Orders and recommendations made about misconduct 0 181(2) Orders made for inappropriate conduct 0 176C(2) Complaints about Councillor conduct or performance for which no action was taken 2 176C(3)(a)(i) Complaints referred to the Chief Executive, Department of Local Government about inappropriate 1 conduct of the Mayor or Deputy Mayor 176C(3)(a)(ii) Complaints referred to the Mayor about inappropriate conduct by a Councillor other than the Mayor 0 or Deputy Mayor 176C(4)(a) Complaints about misconduct referred to the Chief Executive Officer of the Local Government 0 176C(4)(b) Complaints about misconduct referred to the regional conduct review panel or the tribunal 0 176C(5) Complaints assessed by the Chief Executive Officer as being about corrupt conduct 0 176C(6) Complaints about another matter 0

For the period 3 December 2018 to 30 June 2019 Section of LGA Type of order/complaint Number 150I(2) Orders made about unsuitable meeting conduct 0 150AH(1) Orders made for inappropriate conduct 0 150AR(1) Decisions, orders and recommendations made* 1 150P(2)(a) Complaints referred to the assessor by Council, a Councillor and the Chief Executive Officer 0 150P(3) Complaints referred to the Crime and Corruption Commission 0 150R(2) Notices issued 2 150S(2)(a) Notices issued 0 150W(a)(b)(d) Decisions made 5 150AC(3)(a) Referral notices accompanied by a recommendation from the assessor 0 150AF(4)(a) Occasions information was given 0 Chapter 5A, part Occasions the local government asked another entity to investigate the suspected inappropriate 0 3, division 5 conduct of a councillor 150AJ (1) Applications heard by the conduct tribunal about the alleged misconduct of a councillor 1

* It was alleged that on 14 November 2018 at the Economic Development Committee, Cr Geoff McDonald failed to inform the meeting of his personal interest in an agenda item concerning the Temporary Toowoomba CBD Development Incentive Policy amendments. The Tribunal orders pursuant to s150AR(1)(b)(i) of the Act, that Cr McDonald makes a public admission that the Councillor engaged in misconduct at an Ordinary Meeting of the Toowoomba Regional Council. The Tribunal notes Cr McDonald's apology to the Council at its Ordinary Meeting on 20 November 2018. In the circumstances, the Tribunal accepted the action already taken by the Councillor to be compliant with the Order (as above) that it has made. Competitive Neutrality Complaints (Section 190 Local Government Regulation 2012)

Section of LGR Type of order/complaint Number 190 (1)(i) Notices given in the financial year under section 49 for competitive neutrality complaint 0 190 (1)(j) Council response in the financial year on the QCA’s recommendations on any competitive neutrality 0 complaints under section 52(3)

34 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Overseas travel made by Councillors and Staff (Section 188 Local Government Regulations 2012) OVERSEAS TRAVEL - COUNCILLORS Name Position Destination Purpose Cost Antonio, Paul Cr Mayor China and Japan Official Delegation visit $8,630 Cahill, Bill Cr Councillor Denmark, England, International Zero Waste Study Tour $24,900 Spain and USA Taylor, Carol Cr Councillor Taiwan Attend Smart Cities Summit $1,836 Taylor, Carol Cr Councillor Finland Attend 2018 IPMA Global Achievement Awards $9,683 Williams, Mike Cr Councillor China and Japan Official Delegation visit $4,120 OVERSEAS TRAVEL - STAFF Name Position Destination Purpose Cost Davis, Lyndal Economic Development China and Japan Official Delegation visit $4,103 Officer - Research Garmany, Shamus Principal Economic China Official Delegation visit $2,339 Development Officer Holland, Stephen Manager, Project Finland Attend 2018 IPMA Global Achievement Awards $4,957 Services Krimmer, Tony Senior Economic Taiwan Attend Smart Cities Summit $2,112 Development Officer Martin, Heath Principal Land Use and South Korea Staff Exchange $4,676 Community Morey, Jane International Secretariat Japan Official Delegation visit $2,053 Pidgeon, Brian Chief Executive Officer China and Japan Official Delegation visit $9,440 Uren, Troy Manager, Waste Services Denmark, England, International Zero Waste Study Tour $24,900 Spain and USA

Executive Remuneration (Section 201 Local Government Act 2009)

EXECUTIVE REMUNERATION Number of Senior management staff 1 7 *The total remuneration includes annual salary, superannuation and non-cash benefits Total remuneration range* $300,000 - $400,000 $200,000 - $300,000 The total remuneration for senior management staff came to $2,078,644.

Registers kept (section 190 (1)(f) Local Government Regulation 2012) • Asset Register • Register of Cost Recovery Fees • Councillor Conduct Register • Register of Interests – CEO, Senior Executive Officers • Delegations Register and Related Persons • Gifts Register • Register of Interests – Councillors and Related Persons • Lobbyist Register • Register of Pre-Qualified Suppliers • Local Laws Register • Road Register

Report on the internal Audit for the financial year (Section 190 (1)(h) Local Government Regulation 2012) Council’s Internal Audit function is established through a ‘co-sourced’ service delivery arrangement with Crowe Horwath to provide an independent and objective assessment and evaluation of control measures to manage Council’s operational risks. This arrangement provides Council with access to extensive expertise and skills, seamless service delivery and an opportunity to mentor, build capacity and drive performance. Council’s corporate risk profile was used to focus the Internal Audit Plan to direct effort to those areas of higher risk. 12 audits were undertaken in 2018-19: • Aquatic Centre Management processes • Payroll, including Leave Management • Revenue - Fire levy collections and payments, refunding • Plant and Fleet Internal Hire Rates, including Utilisation of overpaid rates and charges • Asset Administration (end to end asset management • Lease Management Processes processes) • Community and Customer Engagement (including data • Risk Management integrity, customer records maintenance / database) • Stores Inventory Management and Site Security • Cash Management • Overtime and allowances management • Financial Delegations within TechnologyOne As per section 105 of the Local Government Act 2009, Council’s Audit and Risk Committee monitors and reviews the integrity of financial documents, the internal audit function and the effectiveness and objectivity of the local government’s internal auditors and makes recommendations to the local government about any matters that the audit committee considers need action or improvement. Council’s Audit and Risk Committee is an Advisory Committee and has the prime objective to assist Council to fulfil its corporate governance role and oversight responsibility relating to accounting and reporting practices.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 35 Beneficial Enterprises

Toowoomba Regional Council actively engages with entities through partnering or collaborative arrangements to achieve mutually beneficial outcomes for the Region. The table below lists the beneficial enterprises conducted during the financial year in accordance with section 41 of the Local Government Act 2009.

For the period 1 July 2018 to 2 December 2018 Beneficial Enterprises Number Nature of help provided by Council Value Adventure Way Promotions Group 1 Financial support in the form of a membership $1,500 APN Newspapers Pty Ltd 1 Financial support for the Chronicle Garden Competition. $39,163 APN Newspapers Pty Ltd 1 Financial support for Future Toowoomba Campaign $11,000 Australia's Country Way 1 Financial support in the form of a membership $13,200 Bendigo Bank, Gomaren & Doctor's 1 In-kind support in providing graphic design services for a flyer. $1,500 (est.) Creek Landcare Group Inc., Council provided graphic design services for a flyer (SEC $1,000 Queensland Water & Land Carers labour), printing and exibit setup Brisbane Valley Heritage 1 Financial support in the form of a membership $350 Eisteddfod Inc. 1 Financial support contributing towards hire fees for the use of the $13,200 Empire Theatre Cloncurry Shire Council 1 In-kind support providing use of TRC logo on videos for floods Nil Condamine-Balonne Water 1 Financial support in the form of a subscription $5,500 Committee Inc. Council of Mayors SEQ 1 Financial support in the form of a membership $92,045 Council of Mayors SEQ 1 Financial support towards Food Trails Platform $4,892 Crows Nest and District Tourist and 1 Financial support towards towards Crows Nest Day $3,000 Progress Association Inc. Department of Agriculture and 1 Financial support towards Darling Downs Moreton Rabbit Board $752,724 Fisheries and onground research Department of Agriculture and 1 Financial support towards Habitat Enhancement Program at $33,000 Fisheries Department of Employment, Small 1 Financial and in-kind (use of logo) support towards QLD Training $3,300 Business and Training Awards Department of State Development, 1 Financial support for 15th Darling Downs and South West (DDSW) $1,050 Manufacturing, Infrastructure and Planners Forum Networking Dinner Planning (DSDMIP) Drive Inland Promotions Association 1 Financial support in the form of a membership $13,200 Inc Empire Theatres Pty Ltd 1 Financial support as per the Operating Grant $1,256,044 Flexi School 1 In-kind support providing use of TRC and YouthConnect logos on Nil exterior signs Goombungee-Haden Show Society 1 Financial support towards Goombungee and Hayden Show $200 Goombungee-Haden Show Society 1 Financial support towards the Rodeo $220 Goombungee-Haden Show Society 1 Financial support under the Core Support Grant $5,000 Housing Industry Association 1 Financial support towards HIA Qld Housing Awards Partnership $5,000 Housing Industry Association 1 Financial support in the form of a membership $740 Intuyu Consulting Pty Ltd 1 Financial support for It Takes a Spark Edu Conference $1,100 JA and SJ Currie 1 Financial support in the form of membership to Downs Little $63 Lifeguard John and Val Sheppard 1 Financial support under the Heritage Incentive Grant Scheme $10,000 Jondaryan Woolshed Pty Ltd 1 Financial support as per the Operating Grant $748,558 Jondaryan Woolshed Pty Ltd 1 Financial support in the form of a Conditional Contribution/ $243,650 Donation Kontraband Studios Pty Ltd 1 Financial support towards 2019 Block Party Event $71,500 Koori Kids Pty Ltd 1 Financial support towards NAIDOC Week $450 Local Government Association of 1 Financial support in the form of a membership $336,238 QLD LGAQ

36 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Beneficial Enterprises Number Nature of help provided by Council Value Local Government Managers 1 Financial support in the form of a subscription $2,490 Australia (QLD) Inc. Lost Trades Fair 1 Financial support in the form of a membership $16,500 Master Builders Queensland 1 Financial support in the form of a membership $471 Murray Darling Association Inc. 1 Financial support in the form of a membership $6,968 Newhope Group - Acland Mine 1 In-kind support providing use of TRC logo on corflute signs Nil Office of Industrial Relations 1 Financial support towards Safe Work Month $4,950 Parks & Leisure Australia 1 In-kind support for hosting conference in the provision of $1,250 merchandise Pittsworth District Alliance 1 Financial support in the form of a membership $250 Pittsworth State Primary School 1 Financial support towards Running of the Pittsworth Function $27,500 Centre Planning Institute Australia 1 Financial support towards 2019 Rural and Regional Conference $3,300 Queensland Museum Network 1 Financial support as part of a partnership agreement with Cobb $74,946 and Co Museum Queensland Tourism Industry Council 1 Financial support in the form of a membership $750 Rotary Club of Toowoomba East Inc. 1 Financial support for Takatsuki Earthquake Relief $10,000 Royal Agricultural Society 1 Financial support under the Core Support Grant $26,000 Queensland RSPCA Qld 1 Financial support towards Operation Wanted (desexing) program $15,000 Southern QLD Country Tourism Ltd 1 Financial support towards operations $292,879 Spring Bluff Railway Station Trust 1 Financial support towards operations $88,295 Steve Waugh Foundation 1 In-kind support in the provision of operational support and $7,500 (est.) stakeholder coordination/networking in the promotion of the region as a suitable host destination and use of TRC logos in 'The Captains Ride'. Study Toowoomba Inc. 1 In-kind support towards the establishment of Study Toowoomba. $5,184 Legal costs ($5,184) plus staff time. The Downs Women in Business 1 Financial support for Aspiring Young Business Women's Award $4,950 Awards The Toowoomba Chamber of 1 Financial support for Business Excellence Awards $12,100 Commerce Incorporated The Toowoomba Chamber of 1 Financial support for Toowoomba Small Business Exchange $2,200 Commerce Incorporated Toowoomba and Surat Basin 1 Financial support as per the Operating Grant $502,425 Enterprise Toowoomba and Surat Basin 1 Financial support and in-kind support towards Advancing Regional $16,000 Enterprise Innovation Program Toowoomba Christian College 1 Financial support as recipient of the Mayor's Telstra Technology $5,000 Awards 2018 Toowoomba Conferences 1 Financial support towards operations $38,500 Toowoomba Hospital Foundation 1 Financial support as recipient of the Triple M Mayoral Carols by $7,000 Candlelight. Toowoomba International 1 Financial support towards Toowoomba Languages and Cultures $25,000 Multicultural Society Festival Toowoomba Turf Club Inc. 1 Financial support towards Toowoomba Turf Club Rose Race Series/ $11,000 Mad Hatters Racing University of Southern Queensland 1 Financial support for the maintenance of the Japanese Gardens $22,000 University of Southern Queensland 3 Financial support towards TRC Scholarships (Engineering - Civil/ $20,000 Environmental) University of Southern Queensland 1 Financial support for Chinese New Year Celebrations $3,000 Student Guild University of Southern Queensland 1 Financial support for the Bronze Sponsorship for the Darling $550 2019 Darling Downs Science and Downs Regional Science and Engineering Challenge at USQ Engineering Challenge Total 67

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 37 Community Leases Number Community Leases Number Adventurers Tennis Club Incorporated - Stenner Street 1 Department of Transport and Main Roads - Bell Street 1 (284A), Middle Ridge (26), Toowoomba City Alford Park Tennis Club Inc - Willow Street (11-13), North 1 Department of Transport and Main Roads - Poplar 1 Toowoomba Street (2), Newtown Assert Services Inc. - Hill Street (46), Toowoomba 1 Djuan Dip Committee - Bergen Road, Djuan 1 Australian Dream Astronomy Club - Pittsworth- 1 Downs Steam Tourist Railway & Museum - Brook Street 1 Tummaville Road, Pittsworth (82-84), Toowoomba Back Plains and District Community Hall Association 1 Emu Creek Public Hall Committee Inc. - Emu Creek 1 Incorporated - Clifton-Pittsworth Road (806), Back Road, Emu Creek Plains FE Logan Hall Committee - Meara Place (10), Clifton 1 Bringalily Hall - Bringalily Creek Road (309), Bringalily 1 Gowrie Junction Progress Association Incorporated - 1 Brookstead Hall Committee - Madelaine Street (10), 1 Old Homebush Road (24), Gowrie Junction Brookstead Groom Park Hall Committee Association Incorporated - 1 Broxburn Music Club of Pittsworth Inc. - Felton Road, 1 Neil Street (104C), Toowoomba South Pittsworth Guides Queensland - Heller Street (1A), Rangeville 1 Cabarlah Sports & Festival Committee Incorporated - 1 Guides Queensland - Jones Street (15), Harlaxton 1 Shostaki Road, Cabarlah Guides Queensland - Memory Street (18A), Harristown 1 Cambooya Community Kindergarten Association Inc. - 1 Harrow Street (3-5), Cambooya Haden Public Hall Committee - Boundary Street, 1 Haden Cambooya Landcare Assocation Inc - Eton Street (64), 1 Cambooya Harlaxton Hall Steering Committee Inc - Gleeson 1 Crescent (9a), Harlaxton Cambooya Public Hall Committee - Harrow Street (5), 1 Cambooya Highfields Mens Shed Inc. - Shostaki Road (32), 1 Cabarlah Cambooya Rural Fire Brigade - George Street, 1 Cambooya Hodgson Vale Community Sports Club Inc. - New 1 England Highway (12728-12752), Hodgson Vale Citizens Radio Emergency Service Team Queensland 1 Incorporated (CREST) - North Street (13), Mt Lofty Hume Street (341), South Toowoomba - Toowoomba 1 Rangers Rugby Union Club Inc Clifton & District Historical Society Inc - King Street 1 (46), Clifton Irongate Memorial School of Arts Inc. - Irongate Road 1 (938), Irongate Clifton & Districts Chamber of Commenrce & Industry 1 Inc - King Street (95), Clifton Jondaryan Public Hall Committee Inc. - Duke Street 1 (6-10), Jondaryan Clifton Benchrest Shooters Union Inc. - Leyburn- 1 Cunningham Road, Leyburn Kingsthorpe Sporting Association Incorporated - 1 Goombungee Road, Kingsthorpe Clifton Dabblers Incorporated - King Street (97), Clifton 1 Laurel Bank Croquet Club Inc. - Herries Street (209), 1 Coalbank Hall Committee - Trapp Road, Coalbank 1 Toowoomba Commonwealth of Australia through its Bureau of 1 Lifeline Darlling Downs and 1 Meteorology - Bridge Street (400-484), Toowoomba Limited - Chalk Drive (12), Toowoomba City (Lease AWS) Lions Club of Cecil Plains Incorporated - Cheetham 1 Cooyar Agricultural Society Inc - Munro Street (5), 1 Street, Cecil Plains Cooyar Lions Club of Toowoomba Inc. - 1 Creche & Kindergarten Association of Qld - Margaret 1 (12728-12752), Hodgson Vale Street (37-39), Millmerran Lions Club of West Toowoomba Incorporated - Cress 1 Crow's Nest & District Historical Society Inc. - Thallon 1 Street (8), North Toowoomba Street (46), Crows Nest Little Country Kids Club Inc. - Cheetham Street (40), 1 Crows Nest & District Pony Club Inc. - Pierces Creek 1 Cecil Plains Road (188), Crows Nest Millmerran and District Historical Society Inc. (Cecil 1 Crows Nest and District Children's Centre and 1 Plains Branch) - Taylor Street, Cecil Plains Kindergarten Association Incorporated - Lalor Street (32), Crows Nest Millmerran and District Historical Society Inc. 1 (Millmerran Branch) - Charlotte Street (22-26), Darling Downs Aero Club Limited - Bridge Street (400- 1 Millmerran 484), Toowoomba (Lease D) Millmerran Golf Club Inc - Golf Club Road, Millmerran 1 Darling Downs Aero Club Limited - Bridge Street (400- 1 484), Toowoomba (Lease F) Millmerran Mens Shed Inc - Flynn Street (6), Milllmerran 1 Darling Downs Aero Club Limited - Bridge Street (400- 1 Millmerran Mens Shed Incorporated - Saleyards Road 1 484), Toowoomba (Lease G) (15), Millmerran Darling Downs Field Archers Inc - Willims (69-117) Road, 1 Millmerran Show Society Inc. - Millmerran-Cecil Plains 1 Cranley Road (171), Millmerran Darling Downs Sailing Club Inc - Groomsville Road 1 Millwood Hall Committee - Millmerran-Inglewood Road 1 (640), (2222), Millwood

38 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Community Leases Number Community Leases Number Milne Bay Military Museum Inc - Willims Road (64), 1 Returned & Services League of Australia (Queensland 1 Cranley Branch) Toowoomba United Sub Branch Inc. - Herries Street (149), Toowoomba Mt. Tyson Tennis Club Inc. - Jondaryan-Mount Tyson 1 Road (2), Mt Tyson Rosalie Shire Historical Society Inc - George Street 1 (12-14), Goombungee North-Eastern Downs Highfields Lions Club Inc. - 1 Shostaki Road, Cabarlah RSL Pittsworth - Pioneer Way (16), Pittsworth 1 Oakey & District Pony Club Incorporated - 101 Oakey- 1 Southbrook Hall Association Incorporated - John 1 Cooyar Road, Oakey Street (15-17), Southbrook Oakey & District Race Club Inc. - 101 Oakey-Cooyar 1 Southbrook Sports Club Inc - Southbrook-Felton Road 1 Road, Oakey (71), Southbrook Oakey Agricultural Pastoral and Rodeo Society 1 Southern Qld Aero Modellers Inc (SQAM) - Boundary 1 Incorporated - 101 Oakey-Cooyar Road, Oakey Road (80), Pittsworth Oakey Art Group Incorporated - Stanley Street, Oakey 1 St Mary's College Toowoomba - Groomsville Road 1 (640), Cooby Dam Oakey Historical Museum Society Incorporated - 1 Ramsay Street, Oakey The City Golf Club Inc. - South Street (250), South 1 Toowoomba Oakey Soccer Club Inc - York Street, Oakey 1 The City Golf Club Inc. - South Street (252), South 1 Pampas Community Hall - (6179), 1 Toowoomba Pampas The City Golf Club Inc. - South Street (254), South 1 Parent to Parent Association Queensland Inc. - 1 Toowoomba Alexander Street (11-15), North Toowoomba The City Golf Club Inc. - South Street (254A), South 1 Peranga Community Association inc. - Denham Street 1 Toowoomba (1), Peranga The Corporation of the Synod of the Diocese of 1 Perseverance Aquatic Club Inc - Perseverance Dam 1 Brisbane - Geraghty Street (24), Cecil Plains (820), Crows Nest The Creche and Kindergarten Association Limited - 1 Pittsworth and District Mens Shed Inc - Pioneer Way 1 Stanley Street, Oakey (16), Pittsworth The Crow's Nest & District Bowls Club Inc - 1 Pittsworth Crafty Quilters Inc. - Yandilla (83) Street, 1 Toowoomba Road, Crows Nest Pittsworth The Crows Nest Squash Club Inc. - William Street (22A 1 Pittsworth Fitness Club - Briggs Street, Pittsworth 1 -30), Crows Nest Pittsworth Judo Club Inc. - Briggs Street, Pittsworth 1 The Friends of the State Rose Garden in Newtown 1 Pittsworth Kindergarten Association Incorporated - 1 Park Incorporated - Holberton Street (129D), Newtown Short Street (43), Pittsworth The Lions Club of Toowoomba - Wilsonton Inc. - Hill 1 Pittsworth Leagues Club Inc - Short Street, Pittsworth 1 Street (50), Toowoomba Pittsworth Senior Citizens Association Inc - Yandilla 1 The Lions Club of Toowoomba - Wilsonton Inc. - Rome 1 Street (83), Pittsworth Street (49), Newtown Pittsworth Tennis Club Incorporated - Hume Street, 1 The Scout Association of Australia Queensland Inc. - 1 Pittsworth Cecil Crescent, Highfields Pittsworth Woodcrafters Club Inc. - Pioneer Way (16), 1 The Scout Association of Australia Queensland Inc. - 1 Pittsworth Devine Street (33-41), Harristown Qld Police Service - Shuttlewood Court (1-11), Mt 1 The Scout Association of Australia Queensland Inc. - 1 Kynoch Heller Street (1B), Rangeville Qld Police Service - Wyangapinni (390) Road, 1 The Scout Association of Australia Queensland Inc. - 1 Stoneleigh Quarry Street, Pittsworth Queensland Corrective Services - Nass Road (24), 1 The Scout Association of Australia Queensland Inc. - 1 Charlton Stenner Street (512A), Drayton Queensland Police - Citizens Youth Welfare 1 The Scout Association of Australia Queensland Inc. - 1 Association - James Street (219A), Toowoomba City Tor Street (245-247), Wilsonton Heights Queensland Police - Citizens Youth Welfare 1 The Sister Kenny Memorial Project Committee 1 Association - Neil Street (104B), Toowoomba South Incorporated - Tooth Street (7), Nobby & District Progress Association Inc. - Pechey- 1 The State of Queensland (Represented by Department 1 Maclagan Road, Quinalow of Child Safety, Youth and Women) - Perseverance Dam Road, Crows Nest RBA Holdings Pty Ltd - Grapetree Road, Grapetree 1 The State of Queensland (represented by Public 1 Returned & Services League of Australia (Queensland 1 Safety Business Agency) - Beckman Street (7), Kulpi Branch) Crows Nest Sub-Branch Inc. - William Street (22A-30), Crows Nest The State of Queensland (represented by Public 1 Safety Business Agency) - Camellia Court (32), Returned & Services League of Australia (Queensland 1 Millmerran Branch) Djuan & District Sub Branch Inc. - Djuan Road, Djuan

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 39 Community Leases Number Community Leases Number The State of Queensland (represented by Public 1 TPI Association - Little Street, Toowoomba City 1 Safety Business Agency) - Cooke Street (31), Treasure Island - Clifton Community Child Care Assoc 1 Goombungee Inc - Tooth Street (26), Clifton The State of Queensland (represented by Public 1 Unit Support Group - T.S. Toowoomba Inc. - Memory 1 Safety Business Agency) - Denham Street (32), Street (18B), Harristown Peranga Unit Support Group - T.S. Toowoomba Inc. - 1 The State of Queensland (represented by Public 1 Sebastapool Road, Cressbrook Safety Business Agency) - New England Highway (9918), Cabarlah University of Southern Queensland (USQ) - 20 Regent 1 Street, Darling Heights The State of Queensland (represented by Public 1 Safety Business Agency) - Rosella Avenue (5), The Wattles Senior Rugby League Football Club Inc - 1 Pines (Millmerran) Morton Street (12), Clifton The State of Queensland (represented by Public 1 West Toowoomba Croquet Club Incorporated - Taylor 1 Safety Business Agency) - School Road (2), Street, (147A) Newtown Southbrook Westbrook Hall Committee Incorporated - Main Street 1 The State of Queensland (represented by Public 1 (114), Westbrook Safety Business Agency) - Timber Street, Crows Nest Wylahra Grove Progress Association Inc - Camellia 1 The State of Queensland (represented by Public 1 Court (32), Millmerran Safety Business Agency) - Tip Road (7), Pittsworth Yarraman Memorial Hall Society Inc - Browne Street 1 The State of Queensland (represented by Public 1 (11-13), Yarraman Safety Business Agency) - Yalangar-Lilyvale (581) Road, Yarraman Over 50's Club Incorporated - Emmert 1 Lilyvale Street, Yarraman The State of Queensland (represented by the 1 TOTAL 158 Department of Education, Training and Employment) - Hume Street (141), Toowoomba City Monies paid to assist Toowoomba Carnival of Value The Toowoomba Tennis Association Inc. - Water Street 1 Flowers Parade Entrants (41-55), South Toowoomba CatholicCare Services / Whaddup $500 Toowoomba & Darling Downs Family History Society 1 Inc. - South Street (452), Harristown Cedar Centre $500 Toowoomba and District Old Machinery Society Inc - 1 Centenary Heights $300 Oakey-Cooyar Road, Oakey Cosplayers $300 Toowoomba Bridge Club Incorporated - Stuart Street 1 DISCO $400 (53), Harlaxton Falun Dafa Association of Australia, Qld Branch Inc $500 Toowoomba Buddhist Centre Inc. - Cress Street (4-6), 1 North Toowoomba Girl Guides $400 Toowoomba City Bowls Club Inc. - Victoria Street (41), 1 Girls & Boys Brigade $400 Toowoomba City Gowrie Little Plain Rural Fire Brigade $500 Toowoomba Clay Target Club Inc. - Warrego (10648) 1 Hand Heart Pocket- Freemasons $200 Highway, Charlton Klub VW $400 Toowoomba Dog Obedience Club Inc - Hursley Road 1 (16A), Newtown Newtown P & C $300 Toowoomba Historical Society Inc. - Lindsay Street (43- 1 Phillipine Australia Cultural Society $500 73), East Toowoomba Rotary Edge Club $56 Toowoomba Horse Riding for the Disabled Association 1 RSPCA Toowoomba $300 Inc. - Goombungee Road (123 - 185), Cranley Scouts Assn Aust QLD $400 Toowoomba Hospice Association Inc - O'Quinn Street 1 (57B), Harristown Scouts Assoc of Australia QLD Darling Downs Region $400 Toowoomba Live Steamers Inc - Lemway Avenue (22- 1 Toowoomba Hospital Foundation $500 52), Kearney Springs Toowoomba Trail Ride Club $400 Toowoomba Mothercraft Association Incorporated - 1 TWB African Women Alliance $500 Little Street (6), Toowoomba City TWB Clubhouse $700 Toowoomba Polocrosse Club Inc. - 101 Oakey-Cooyar 1 Road, Oakey TWB North State School $300 Toowoomba Rugby Football League Ltd - Cress Street 1 TWB West Anglican Parish $300 (10), North Toowoomba Victory Life $500 Toowoomba Senior Citizens Welfare Association 1 Yellow Bridge QLD Ltd $300 Incorporated - Victoria (39) Street, Toowoomba City YWCA $500 Toowoomba Table Tennis Association Incorporated - 1 Herries Street (82A), East Toowoomba TOTAL 26

40 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Monies paid as token of appreciation to Toowoomba Value Monies paid as token of appreciation to Toowoomba Value Carnival of Flowers Chronicle Garden Competition Carnival of Flowers Chronicle Garden Competition entrants entrants Annette Armitage $230 Robyn Rolfe & Timo Shivola $230 Kenneth Barclay $230 David Stanfield $230 Christine Bartkowski $230 Kevin & Lola Steinmuller $230 Ruby Brunner $230 Leslie & Margaret Stephson $230 Mervyn Buckley $230 Ted & Joyce Taylor $230 Leonie Chapman $230 Maria & Ian Weatherby $230 Keven & Amanda Corbett $230 Alma Williams $230 Shirley Cronk $230 Charmaine & Peter Williamson $230 Matthew Dolley $230 Noel Zischke $230 Kevin Drew $230 Anthony Zorzi $230 John & Lenore Ferris $230 Marjorie Martin $230 Robert Ford $230 Mark & Anne O'Brien $230 Mervyn Fowler $230 Valerie Peachey $230 Cheryl & John Ganzer $230 Adrian & Gail Wockner $230 Ann Heffernan $230 Trudy Griffin $110 Des & Val Hohn $230 Ken & Jacelle Hansen $110 Anthony Hurle $230 Alan & Auriel Hirning $110 David & Gaye Kearey $230 Kathryn Jowett $110 Keith & Patricia Kelly $230 Roslyn Morley $110 Allan Kenna $230 Beryl Osborne $110 Rob Kennedy $230 Pauline Palmer $110 Carl & Judy Kuhn $230 Leslie & Susan Smith $110 Linda Lane $230 Betty Sullivan $110 Jeffrey Latham $230 Bill Van Mourik $110 Russell Lavender $230 Thelma Wilson $110 Vicki Layton $230 TOTAL 70 John & Lynette McGuinn $230 Neville & Heather McNalty $230 Peter & Carol Mullen $230 Shirley Mundt $230 Tim & Kylie Munn $230 Anne Newsham $230 Peter Ferris & Thuy Nguyen $230 Rodney & Jill Osborne $230 Robert Pearce $230 Ray & Glenda Postle $230 Ronald Power $230 John Prasser $230 Gordon & Maria Reynolds $230 Joe & Judy Rockemer $230 Warwick & Ellen Rostad $230 Paul & Noela Rubb $230 Mark & Cindy-Jane Ryan $230 Geoffrey Robert Sams $230 Wayne & Narelle Schick $230

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 41 Expenditure on grants to community organisations (Section 189 - Local Government Regulation 2012)

Community Economic Development Grants Association Inc.: $3,000 • St Luke's Anglican Church: $1,500 Round one: • Millmerran Commerce and Progress Inc.: $2,992 • Toowoomba Chamber of Commerce: $4,900 • Millmerran District Historical Society Inc.: $2,680 • Clifton & District Chamber of Commerce & Industry Inc.: $5,000 Round two: • Empire Theatre Projects Company Pty Ltd.: $3,000 • Canvas Coworking Inc.: $3,100 • Pittsworth Art Group Inc.: $1,000 • Oakey Agricultural, Pastoral and Rodeo Society Inc.: $4,000 • Toowoomba Concert Band Inc.: $2,590 • Story Artist Run Collective Inc.: $2,400 • Tourism Darling Downs Ltd.: $4,600 Environment Grants • Crow's Nest and District Tourist and Progress Association Inc.: $4,700 Round one: Round two: • Royal Agricultural Society of Queensland Inc.: $5,000 • Crows Nest Agricultural, Horticultural and Industrial Society • Friends of the Escarpment Parks Toowoomba Inc.: $5,000 Inc.: $3,500 • North East Downs Landcare Inc.: $2,354 • Downs Industry Schools Co-op (DISCO) Inc.: $4,131.68 • South Myall Catchment Landcare Group Inc.: $3,582 • Oakey Community & Tourist Information Centre - Sub Round two: Committee of Oakey Chamber of Commerce Inc.: $963.20 • Clifton Landcare Group Inc.: $5,000 • Crows Nest Community Solutions Ltd.: $5,000 Community support grant programs • Householders Options to Protect the Environment Inc.: Round one: $4,947.50 • Crows Nest District Mens Shed Inc.: $1,671 • Ravensbourne and District Landcare Inc.: $2,200 • The Toowoomba Caledonian Society and Pipe Band Inc.: • Ravensbourne and District Landcare Inc.: $2,200 $1,200 • Royal Agricultural Society of QLD Inc.: $5,000 • Lions Club of Crows Nest Inc.: $1,100 • The Scout Association of Australia Qld Branch Inc. • Toowoomba Turners and Woodworkers Club Inc.: $1,000 (auspicing the Darling Downs Region): $2,724.55 • Queensland State Rose Garden in Newtown Park Inc.: Events support grant program $1,000 • Cecil Plains Progress, Tourism & Recreation Association Inc.: Round one: $1,399 • AEIOU Foundation (Australian charities and no-for-profit • Toowoomba Older Mens Network (TOMNET) Inc.: $2,000 organisation): $250 • Toowoomba Amateur Radio Model Aero Club Inc.: $2,000 • Boodau Public Hall Association Inc.(Boodau Christmas • AEIOU Foundation Inc.: $1,500 Party): $1,000 • Crows Nest QCWA Inc.: $1,000 • Boodau Public Hall Association Inc.(The Boodau Bash): • Metro Care Toowoomba Inc.: $1,849 $1,500 • Toowoomba Mountain Bike Club Inc.: $1,200 • Boodau Public Hall Association Inc. (auspicing Haden Hall • Groom Park Hall Association Inc.: $2,000 Committee): $1,500 • Toowoomba Community Organic Gardens Association Inc.: • Curious Arts Inc.: $10,000 $500 • Darling Downs Rose Society Inc.: $400 Round two: • Downs Polo Association Inc.: $10,000 • Cecil Plains Crier Inc.: $1,665 • High Altitude Harmony Inc.: $1,100 • Crows Nest District Mens Shed Inc.: $800 • High Country Festivals Inc.: $7,500 • Days for Girls Toowoomba Inc.: $1,250 • High Country Festivals Inc.: $1,500 • Epilepsy Queensland Inc.: $420.69 • Highfields Pioneer Village, Museum & Park Inc.: $5,000 • Eva's Place Pregnancy & Early Parenting Support Inc.: $1,586 • Klub VW Darling Downs Inc.: $1,400 • Gowrie Little Plain Community Centre Inc.: $636.36 • Pittsworth Art Group Inc.: $750 • Oakey Historical Museum Society Inc.: $500 • Pittsworth District Alliance Inc.: $3,000 • Quota International of Toowoomba Inc.: $2,000 • The Scout Association of Australia Qld Branch Inc. • Safer Toowoomba Regional Partnerships Inc.: $1,200 (auspicing the Darling Downs Region): $5,000 • Sailability Darling Downs Inc.: $1,800 • Southbrook Sports Club Inc.: $1,000 • The Pyjama Foundation Ltd. (NPO): $1,650 • Toowoomba & District Old Machinery Society Inc.: $2,500 • Toowoomba Basketball Assoc. Inc. & Toowoomba • Toowoomba & District Woodcrafters Inc.: $1,100 Mountaineers Ltd.: $1,550 • Toowoomba City Care Inc.: $10,000 • Toowoomba Together Inc.: $2,00 • Toowoomba Clivia Society Inc.: $550 • Toowoomba Ukulele Group Inc.: $2,000 • Toowoomba Hospital Foundation (Australian charities and • Weight Reduction Club Toowoomba Inc.: $438 no-for-profit organisation): $250 • Yarraman & District Historical Society Inc.: $1,200 • Toowoomba Orchid Society Inc.: $750 • Yarraman Memorial Hall Society Inc.: $1,068 • Youth With A Mission Toowoomba Inc.: $3,000 • Anglican Parish of St Andrew Pittsworth: $250 The Cultural and Arts Support program (CAS) • Pittsworth Art Group Inc. (auspicing the Gidgee Coal Bush Ballad Awards): $1,100 Round one: • Pittsworth Rugby League Football Club Inc.: $1,500 • Shoebox Theatre auspiced by Arts Council Toowoomba Inc.: $3,000 Round two: • •Boodua Public Hall Association Inc.: $1,500 • Toowoomba Municipal Band and Drayton Memorial Hall Association Inc.: $3,000 • Crows Nest Agricultural, Horticultural and Industrial Society Inc.: $1,500 • First Coat Studios auspiced by Backbone Youth Arts • Crows Nest and District Tourism and Progress Association

42 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Inc. (Sub ctee HCH or High Country Hamlets): $1,500 • Highfields & District Branch Little Athletics Centre Inc.: $5,190 • Darling Downs Rose Society Inc.: $742 • Highfields F.C. Inc.: $16,958.87 • Darling Downs Samoan Cultural Community Inc.: $1,330 Round two: • Felton Hall Association Inc.: $600 • Brothers Toowoomba Rugby League Football Club Inc.: • Garden City Country Music Association Inc.: $1,095 $3018.64 • Highfields North Eastern Downs Lions Club Inc.: $1,200 • Darling Downs Aero Club Ltd.: $925.31 • Islamic Interfaith and Multicultural Organisation Inc. • Fillipino Australian Community in Oakey (FACO) Inc.: $6,125 (auspicing Thai Community of Toowoomba): $1,193 • Highfields and Districts Netball Association Inc.: $4,170.45 • Leafmore Garden Society Inc. Toowoomba: $1,300 • Highfields and Districts Railway Criket Club Inc.: $15,179.09 • Lions Club of Toowoomba West Inc.(auspicing Mother's Day • Highfields FC Inc.: $30,082.68 Classic Toowoomba Committee): $250 • Highfields Junior Rugby Club Inc.: $16,872.73 • Queensland Cake Decorators Association Darling Downs • Kearneys Spring Sports Reserve Management Association Branch Inc.: $850 Inc.: $15,725 • Queensland Program of Assistance to Survivors of Torture • Millmerran Memorial Bowls Club Inc. $8,090.50 and Trauma (QPASTT)(Association Inc.): $300 • Oakey and District Tennis Association Inc.: $33,255 • Scout Association of Australia Qld Branch Inc. - Darling • Toowoomba Cricket Inc.: $20,724.96 Downs Region: $6,000 • Toowoomba Junior Rugby League Inc.: $4,162.50 • Tenpin Bowling Association of Qld Inc.: $10,000 • Toowoomba Motocross Club Ltd.: $59,080.38 • Toowoomba Bonsai Group Inc.: $850 • Toowoomba Motorcycle Club Inc.: $7,369.76 • Toowoomba Choral Society Inc.: $750 • Toowoomba Mountain Bike Club Inc.: $31,500 • Toowoomba Hospice Association Inc.: $9,366 • Clifton Golf Club Inc.: $10,000 • Toowoomba Hot Rodders Inc.: $3,066 • Glenholme Sports and Community Hub Inc.: $13,612.50 • Toowoomba International Multicultural Society (TIMS) Inc.: $1,500 Sports tourism grants • Toowoomba Lapidary Club Inc.: $1,000 • South West Indigenous Network Inc.: $5,000 Sport and recreation grants • Toowoomba Tennis Association Inc.: $12,500 • City Golf Club Inc.: $15,000 Round one: • Toowoomba Motocross Club: $1,000 • Clifton Bowls Club Inc.: $36,675.15 • National Cutting Horse Association: $5,000 • Pittsworth Amateur BasketBall Association Inc.: $6,945 • Toowoomba Mountain Bike Club Inc.: $1,500 • Darling Downs and Districts EightBall Association Inc.: • Bowls Queensland: $3,000 $2,045.45 • Millmerran Pony Club Inc.: $5,000 • Southbrook Sports Club Inc.: $2,291.03 • Downs Rugby Ltd: $5,000 • Toowoomba BMX Club Inc.: $2,692 • Pittsworth Leagues Club Inc.: $5,000

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 43 44 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 2018-19 SNAPSHOT

Net operating surplus for the fifth year running

No new loans

COMMUNITY FINANCIAL REPORT 2018-2019 The purpose of the Community Financial Report is to • Statement of Cash Flows give community members an understandable, easy • Measures of Financial Sustainability. to follow summary of Council’s Financial Statements in accordance with Section 179 of Local Government Statement of Comprehensive Income Regulation 2012. The Statement of Comprehensive Income is often Council’s Financial Statements are prepared on an accrual referred to as the Profit and Loss statement. This basis, meaning that most transactions are recognised statement shows what Council has earned (revenue) and when the event, or performance obligation, occurs rather what costs Council has incurred (expenses) throughout than when cash is physically received or paid. the year. Council’s Financial Statements must be certified by both the Mayor and the Chief Executive Officer as In summary, Council’s result for the reporting period was: “presenting fairly” Council’s financial results for the $’000’s year. They are also required to be adopted by Council What we have earned (Revenue) – ensuring both responsibility for and ownership of the Financial Statements by management and elected Recurrent Revenue 326,899 representatives. Capital Revenue 61,105 In addition, Council’s financial statements are audited Total Revenue 388,004 by the Queensland Audit Office. The auditor provides an audit report which gives an opinion on whether the financial statements are fairly presenting Council’s What we have spent (Expenses) financial performance and position. Recurrent Expenses 323,818 This report focuses on: Capital Expenses 35,729 • Statement of Comprehensive Income Total Expenses 359,547 • Statement of Financial Position • Statement of Changes in Equity Net Result 28,457

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 45 The Net Result does not necessarily represent surplus cash Expenses are monitored constantly throughout the year. funds available for general use as certain income items Detailed estimates are prepared at the beginning of each are restricted to specific use. For example, capital grants financial year and performance against these estimates is are generally allocated to maintain or expand Council’s measured through regular budget reviews to ensure the infrastructure. most efficient use of Council’s funds.

Some revenue and expenses are of a non-cash nature – for Depreciation and amortisation expense make up nearly one- example, contributed infrastructure assets (such as roads, third of Council’s operating expenses. This item represents sewerage and water mains) constructed by a developer on an allocation of the use or deterioration of the community behalf of Council in conjunction with land sub-divisions or assets over the assets expected life. How Council’s property developments are considered non-cash revenue. performance in managing its assets is explained in the Likewise, depreciation expense on assets is considered a non- Statement of Financial Position and Measures of Financial cash expense. Sustainability sections of this report.

What we have earned Community services 21% There are two main categories of revenue for the financial year Planning and development 4% – recurrent revenue and capital revenue. Finance and business Rates & levies 78% strategy 19% Where the Waste management Fees & charges 12% money is 8% spent Infrastructure services 21% What Contract works 3% we have Grants, subsidies & Water services 17% earned contributions 6% Wastewater services 7% Interest revenue 1% Corporate governance 3%

Statement of Financial Position The Statement of Financial Position is often referred to as the Recurrent Revenue Balance Sheet and is a snapshot of the financial position of Council’s recurrent revenue is money raised which is used to Council at 30 June. The statement measures what Council fund the day-to-day operations of Council. Recurrent revenue owns (Assets) and what Council owes (Liabilities). The is the major source of revenue for Council and primarily earned difference between these two components is the net wealth from sources such as Rates and Fees and Charges. (Equity) of Council and our community. Council also aims to maximise its revenue from other sources The notes that support this statement explain how Council’s by actively pursuing grants and subsidies from the State and assets and liabilities are valued and how various values are Federal Government and investing surplus funds to earn interest. determined. In summary, Council’s position at 30 June 2019 was: Capital Revenue $’000’s Council’s capital revenue is used to construct Council’s assets Assets (what we own) 4,729,101 now and in the future. Council’s capital revenue consists of Liabilities (what we owe) 341,967 grants, contributions and subsidies, developer contributions as Equity (Community Wealth) 4,387,134 well as profits on the disposal of fixed assets. $61.1 million was received in grants and contributions to fund capital projects What do we own? this year. Council’s major asset class is Property, Plant and Equipment. These assets make up 96% of Council’s assets. Road, What we have spent drainage, water and wastewater infrastructure assets make up Council incurs both recurrent expenses and capital expenses. the bulk of the property, plant and equipment which provide Capital expenditure is used to renew and expand our asset direct benefit to the community. infrastructure and is therefore added to the carrying value of the assets.

Recurrent expenses are the main expense of Council and represent Receivables 1% the day-to-day cost of providing services, operating facilities and Property, plant and maintaining assets. These include employee costs, materials and What are equipment services, finance costs and depreciation. our assets 96% Cash assets and cash equivalents 3%

Employee costs 37%

Recurrent Materials and services 30% What did we spend on assets? expenses Finance costs 3% What we spend to build or enhance our assets is reflected in the Statement of Financial Position as it increases the value of Depreciation and our assets. amortisation 30% A significant amount of Council’s activities is focussed on the maintenance, upgrade and construction of fixed assets

46 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Where the money is spent

Community services 21%

Planning and development 4%

Finance and business strategy 19%

Waste management 8%

Infrastructure services 21%

Water services 17%

Wastewater services 7%

Corporate governance 3%

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 47 to ensure there are adequate infrastructure services services to the community. With good planning, surpluses can be used for community use. These activities are undertaken in to place less reliance on loans and withstand any unforeseen financial accordance with Council’s long-term asset management shocks or adverse changes to our business. A portion of our retained plan which covers a period of ten years. surplus is cash-backed by an appropriate level of internally imposed restrictions to limit amounts available for future use. This year Council spent $153 million to renew, upgrade and build new assets for the community. The graph below shows the how the money was spent in different asset classes.

Road & bridge network 38% Equity Investment in capital assets 60% Site improvements 9% (net wealth) Asset revaluation surplus 40% Capital Water 14% expenditure by asset Waste 3% class Wastewater 4% Buildings 20% Statement of Cash Flows Plant & equipment 12% The Statement of Cash Flows shows where Council’s cash came from and how it was spent throughout the year. This differs from the earlier What do we owe? reports as ‘non-cash items’, such as depreciation and donated assets, are Liabilities are the amounts Council owes to suppliers, excluded. employees and lenders both now and in the future. This The Statement of Cash Flows categorises all cash payments made and also includes provisions for future entitlements which received throughout the year into three groups: comprise of money which will pay our employees in the future (e.g. long service leave); and amounts set aside to • Operating activities – represent day-to-day cash flows fund the future rehabilitation of our refuse and quarry sites. • Investing activities – represent cash payments from movements in assets and liabilities, such as purchase and sales of assets and any Long-term loans are taken out to undertake the capital income (grants, contributions) received construction and purchase of community assets. Council • Financing activities – represent cash flows relating to how Council is reviews its loan requirements on an annual basis. No loans financed, including new loans and loan repayments. were drawn down during the year. Total liabilities as at 30 June 2019 were $342 million. $’000’s Opening Balance 139,190 Plus Cash Received 381,671 Trade & other payables 13% Less Cash Spent (379,132) Cash Available at End of Year 141,729 What do Provisions 40% Cash available is used to invest and utilise for future outlays. Much of this we owe Borrowings 44% is restricted for specific purposes, such as future infrastructure. Council’s Other 3% cash is wisely invested in accordance with our investment policy, so the interest earned contributes to the funding of operational expenses.

Financial Sustainability Measures The financial sustainability statement and the associated measures (ratios) Statement of Changes in Equity provide evidence of Council’s ability to continue operating and provide The difference between assets and liabilities is the total an acceptable level of service and infrastructure to the community both community equity or the net wealth of the Council. The now and into the future. Section 168 (5) of Local Government Regulation Statement of Changes in Equity shows the overall change 2012 outlines the three relevant measures of financial sustainability in Council’s “net wealth” over the year. At 30 June 2019 on which Council must report. In addition, the Department of Local this was an amount of $4,387 million (that is, assets of Government, Racing and Multicultural Affairs sets target ranges for each $4,729 million less liabilities of $342 million). of these measures.

This community equity consists of an asset revaluation As part of Council’s 2014-2019 Corporate Plan we aim to implement reserve and retained surpluses. The asset revaluation sustainable financial management. Council’s performance in these three reserve increased this year by $275 million and the key measures is an indication of whether we are delivering on this goal. retained surplus increased by $28 million.

The asset revaluation surplus comprises amounts 1. Asset Sustainability Ratio representing the change in the value of Council’s assets This indicates if Council is renewing or replacing existing infrastructure over time. Asset revaluations are completed on a cyclical assets at the same rate that the assets are wearing out. The target for basis per asset class. 2019 was 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 Council’s retained surplus represents amounts available service levels and/or useful lives which would create a burden on future to be invested into assets (now or in the future) to provide ratepayers.

48 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Asset Sustainability Ra�o Target Range => 90% Asset Sustainability Ra�o 120.00%

100.00%

80.00% 83.40% 60.00% 70.70% 68.60% 66.60% 67.50% 65.50% 65.50% 64.60% 62.83% 61.10% 40.00% 47.70%

20.00%

0.00% 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

The current year results of 62.83% are lower than the target previously estimated. Integration of Council’s current focus on asset management planning and continued long-term financial planning will improve Council’s ability to make informed decisions regarding asset management into the future.

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 investment. Ratios over the target levels for a long period can be maintained with Council’s sound financial management systems and the ability to service current and projected debt levels.

Net Financial Liabili�es

Target Range is less than 60% Net Financial Liabili�es Ra�o

120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00% 2018/192019/202020/212021/222022/232023/242024/252025/262026/272027/282028/29

3. Operating Surplus Ratio Indicates the extent to which revenue raised by Council (excluding capital grants and contributions) covers its 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. Summary Opera�ng Surplus Ra�o Target Range = 0% to 10% 5.00% Council delivered an operating 4.00% result above the original budgeted 3.00% surplus. Toowoomba Regional 2.00% Council is in a sound financial 1.00% 0.94% position to deliver its budgeted 0.70% 0.60% 0.60% 0.00% 0.50% 0.50% 0.60% 0.50% 0.60% 0.60% projects and services for the -1.00% 2019/20 financial year and beyond. -2.00% -2.10% -3.00%

-4.00%

-5.00% 2018/192019/202020/212021/222022/232023/242024/252025/262026/272027/282028/29

Council’s result this year was 0.94% which is higher than the original budget of 0.2%, mainly due to employee costs being lower than budgeted. 49 50 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 FINANCIAL REPORT For the year ended 30 June 2019 Contents

Primary Financial Statements ...... 52 Statement of Comprehensive Income ...... 52 Statement of Financial Position ...... 53 Statement of Changes in Equity ...... 54 Statement of Cash Flows ...... 55 Notes to the Financial Statements ...... 56 1. Significant Accounting Policies ...... 56 2. Analysis of Results by Function ...... 59 3. Revenue...... 61 4. Grants, Subsidies, Contributions and Donations ..... 62 5. Employee Benefits ...... 63 6. Materials and Services...... 64 7. Finance Costs ...... 64 8. Capital Income and Expenses ...... 65 9. Cash, Cash Equivalents and Investments...... 66 10. Receivables ...... 67 11. Property, Plant and Equipment ...... 68 12. Fair Value Measurements ...... 72 13. Intangible Assets ...... 76 14. Payables ...... 77 15. Borrowings ...... 78 16. Provisions ...... 79 17. Asset Revaluation Reserve ...... 81 18. Commitments for Expenditure ...... 82 19. Contingent Liabilities ...... 83 20. Superannuation ...... 84 21. Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities...... 85 22. Reconciliation of Liabilities Arising from Finance Activities ...... 86 23. Correction of Error/s relating to a Previous Reporting Period ...... 87 24. Financial Instruments and Financial Risk Management ...... 88 25. National Competition Policy ...... 92 26. Controlled Entities that have not been Consolidated ...... 93 27. Transactions with Related Parties ...... 94 Management Certificate...... 97 Independent Auditor's Report ...... 98 Current-year Financial Sustainability Statement ...... 101 Certificate of Accuracy - Current Year Financial Sustainability Statement...... 102 Independent Auditor's Report ...... 103 Unaudited Long-term Financial Sustainability Statement ...... 106 Certificate of Accuracy - Long-term Sustainability Statement...... 107

51

Toowoomba Regional Council

Statement of Comprehensive Income For the year ended 30 June 2019

Restated

2019 2018 Notes $'000 $'000

INCOME

Revenue

Recurrent Revenue

Rates, Levies and Charges 3a 256,158 242,741

Fees and Charges 3b 36,770 35,866

Interest and Investment Revenue 3c 4,546 4,661

Sales Revenue 3d 10,077 10,589

Other Income 1,189 2,225

Grants, Subsidies, Contributions and Donations 4a 18,159 17,158

Total Recurrent Revenue 326,899 313,240

Capital Revenue

Grants, Subsidies, Contributions and Donations 4b 61,105 80,837

Total Income 388,004 394,077

EXPENSES

Recurrent Expenses

Employee Benefits 5 118,872 109,222

Materials and Services 6 97,672 87,943

Depreciation and Amortisation Charges 11, 13 98,459 94,511

Finance Costs 7 8,815 9,418

Total Recurrent Expenses 323,818 301,094

Capital Expenses 8 35,729 5,393

Total Expenses 359,547 306,487

Net Result 28,457 87,590

OTHER COMPREHENSIVE INCOME

Amounts which will not be reclassified to Net Result

Increase/(Decrease) in Asset Revaluation Reserve 17 274,961 (320,287)

Total Other Comprehensive Income 274,961 (320,287)

Total Comprehensive Income 303,418 (232,697)

The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 1

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

52 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Toowoomba Regional Council

Statement of Financial Position As at 30 June 2019

Restated

2019 2018 Notes $'000 $'000

ASSETS

Current Assets

Cash, Cash Equivalents and Investments 9 141,729 139,190

Receivables 10 40,231 47,237

Inventories 3,317 4,088

Total Current Assets 185,277 190,515

Non-Current Assets

Property, Plant and Equipment 11 4,530,444 4,206,354

Intangible Assets 13 13,360 13,787

Other Financial Assets 20 20

Total Non-Current Assets 4,543,824 4,220,161

Total Assets 4,729,101 4,410,676

LIABILITIES

Current Liabilities

Payables 14 43,134 38,980

Borrowings 15 11,045 10,485

Provisions 16 17,978 13,554

Other Liabilities 3,930 3,819

Waste Levy Refund Received in Advance 4,832 -

Total Current Liabilities 80,919 66,838

Non-Current Liabilities

Borrowings 15 140,995 151,715

Provisions 16 120,053 108,407

Total Non-Current Liabilities 261,048 260,122

Total Liabilities 341,967 326,960

Net Community Assets 4,387,134 4,083,716

COMMUNITY EQUITY

Asset Revaluation Reserve 17 1,742,100 1,467,139

Retained Surplus/(Deficiency) 2,645,034 2,616,577

Total Community Equity 4,387,134 4,083,716

The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 2

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

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 53 Toowoomba Regional Council

Statement of Changes in Equity For the year ended 30 June 2019

Asset Revaluation Retained Surplus Total Equity

Reserve

$'000 $'000 $'000 Notes

2019

OPENING BALANCE 1,467,139 2,616,577 4,083,716

Net Result for the Year - 28,457 28,457

Increase/(Decrease) in Asset Revaluation Reserve 17 274,961 - 274,961

Total Comprehensive Income for the Year 274,961 28,457 303,418

BALANCE AS AT 30 JUNE 2019 1,742,100 2,645,034 4,387,134

2018

OPENING BALANCE 1,787,426 2,528,987 4,316,413

Net Result for the Year (Restated) - 87,590 87,590

Increase/(Decrease) in Asset Revaluation Reserve 17 (320,287) - (320,287)

Total Comprehensive Income for the Year (320,287) 87,590 (232,696)

BALANCE AS AT 30 JUNE 2018 1,467,139 2,616,577 4,083,716

The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 3

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

54 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Toowoomba Regional Council

Statement of Cash Flows For the year ended 30 June 2019

2019 2018

Notes $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers 315,366 267,624

Payments to Suppliers and Employees (207,007) (195,950)

108,359 71,674

Interest and Investment Revenue Received 5,321 4,359

Recurrent Grants, Subsidies, Contributions and Donations 4a 18,159 17,158

Net Cash Inflow from Operating Activities 21 131,839 93,191

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Disposal of Property, Plant and Equipment 8 4,994 4,318

Commonwealth Government Subsidies and Grants 4b 7,714 10,734

State Government Subsidies and Grants 4b 19,150 13,099

Contributions 4b 27 18,317

Infrastructure Charges 4b 10,940 16,790

Purchase of Property, Plant and Equipment 11 (152,010) (157,130)

Payments for Intangible Assets 13 (1,139) (4,394)

Net Cash Outflow from Investing Activities (110,324) (98,266)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of Borrowings and Advances 15 (10,488) (10,995)

Borrowing Costs (8,488) (9,067)

Net Cash Outflow from Financing Activities (18,976) (20,062)

Net Increase/(Decrease) in Cash and Cash Equivalents Held 2,539 (25,137)

Plus: Cash and Cash Equivalents at the Beginning of the Financial Year 139,190 164,327

Cash and Cash Equivalents at the End of Financial Year 9 141,729 139,190

The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 4

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

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 55

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 1. Significant Accounting Policies

(a) Basis of Preparation

The Toowoomba Regional Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia.

These general purpose financial statements are for the period 1 July 2018 to 30 June 2019. They are prepared in accordance with the Local Government Act 2009 and the Local Government Regulation 2012.

They comply with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB). 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). Therefore, in some instances these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation gains and losses within a class of assets and the timing of recognition of non-reciprocal grant revenue.

These financial statements have been prepared under the historical cost convention except for financial assets and liabilities and certain classes of property, plant and equipment, which are measured at fair value.

(b) 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 y Australian Accounting Standards and Interpretations that have been issued but are not yet effective.

This year Council has applied AASB 9 Financial Instruments for the first time. AASB 9 replaces AASB 139 and relates to the recognition, classification and measurement of financial assets and financial liabilities. Implementing AASB 9 has resulted in a change to the way Council calculates impairment provisions, which are now based on expected credit losses instead of incurred credit losses.

Council has not restated comparative figures. This means the new impairment rules are reflected in the receivables balance as at 30 June 2019, but not 30 June 2018.

On 1 July 2018 (the date of initial application), Council re-assessed the classification, measurement category and carrying amount of each financial instrument (listed below) in accordance with AASB 9. There were some changes to classification, but this did not result in changes to measurement categories (listed below).

Financial Asset/Liability Measurement Category (unchanged) Cash and Cash Equivalents Amortised Cost Receivables Amortised Cost Borrowings Amortised Cost

Some Australian Accounting Standards and Interpretations have been issued but are not yet effective. Those standards have not been applied in these financial statements. Council will implement them when they are effective. The standards that are expected to have a material impact upon Council's future financial statements are:

Standard and Impact Date Council will Apply the Standard

AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and 1 July 2019 AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

AASB 1058 clarifies and simplifies the income recognition requirements that apply to not-to-profit (NFP) entities, in conjunction with AASB 15, and AASB 2016-8. These Standards supersede the majority of income recognition requirements relating to public sector NFP entities, previously in AASB 1004 Contributions.

Identifiable impacts at the date of this report are:

Some grants received by the Council will be recognised as a liability, and subsequently recognised progressively as revenue as the Council satisfies its performance obligations under the grant. At present, such grants are recognised as revenue upfront.

Grants that are not enforceable and/or not sufficiently specific will not qualify for deferral, and continue to be recognised as revenue as soon as they are controlled. Council receives several grants from the Federal Government and State Government for which there are no sufficiently specific performance obligations. These are expected to continue being recognised as revenue upfront assuming there is no change to the current grant arrangements.

Page 5

56 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 1. Significant Accounting Policies (continued)

Depending on the respective contractual terms, the new requirements of AASB 15 may potentially result in a change to the timing of revenue from sales of Council's goods and services such that some revenue may need to be deferred to a later reporting period to the extent that the Council has received payment but has not met its associated performance obligations (such amounts would be reported as a liability in the meantime).

Prepaid rates will not be recognised as revenue until the relevant rating period starts. Until that time, these receipts will be recognised as a liability (unearned revenue). There will be no impact upon the recognition of other fees and charges.

inancial year it would have had the following impacts: Revenue decrease of $7.624 million due to deferral of grant funding and prepaid rates (based on the facts available to Council at the date of assessment). There would be an equal reduction in the reported equity as the reduced revenue will require an increase in recognition of contract liabilities, and statutory receivables. Net result would be lower on initial application as a result of decreased revenue.

A range of new disclosures will also be requir

Transition Method

The Council intends to apply AASB 15, AASB 1058 and AASB 2016-8 initially on 1 July 2019, using the modified retrospective approach. The recognition and measurement principles of the standards will be retrospectively applied for the current year and prior year comparatives as though the standards had always applied, consistent with AASB108 Accounting Policies, Changes in Accounting Estimates and Errors.

Standard and Impact Date Council will Apply the Standard

AASB 16 Leases, AASB 2018-4 Australian Implementation Guide for Not For Profit Public Sector 1 July 2019 Licensors; AASB 2018-8 Right of Use Assets for Not For Profit Entities

The Council has assessed the impacts of the new standard that initial application of AASB16 will have on its financial statements, however, the actual impacts may differ as the new accounting policies are subject to change until the Council presents its first financial statements that include the date of initial application.

AASB16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard i.e. lessors continue to classify leases as finance or operating leases.

Leases in which the Council is a Lessee

The Council will recognise new assets and liabilities for its operating leases of buildings (see Note 18b). The nature of expenses related to those leases will now change because the Council will recognise a depreciation charge for right-of-use assets and interest expense on lease liabilities.

Previously, the Council has recognised an operating lease expense on a straight-line basis over the term of the lease, and recognised assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognised.

-time adoption of AASB 16 for the year ending 30 June 2020 will have the following impacts:

Lease assets and financial liabilities on the balance sheet will increase by $3.346 million respectively (based on the facts available to Council at the date of assessment). There will be a reduction in the reported equity as the carrying amount of lease assets will reduce more quickly than the carrying amount of lease liabilities. Net result will be lower on initial application as depreciation and the lease liability interest will be initially higher than operating lease expenses previously recorded.

Peppercorn Leases

Council is the leasee of a number of Deed of Grant in Trust leases, for which no or little lease payments are made. These have been identified as peppercorn leases which are currently not recognised in Council's financial statements. Council intends to elect to apply the fair value measurement requirements to these leases until such time as this requirement is mandated.

Page 6

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 57

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 1. Significant Accounting Policies (continued)

Transition Method

The Council intends to apply AASB 16 initially on 1 July 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 July 2019, with no restatement of comparative information.

(c) Estimates and Judgements

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:

Receivables impairment/credit losses Note 10 Valuation and depreciation of property, plant and equipment Notes 11 and 12 Provisions Note 16 Contingent liabilities Note 19 Amortisation of intangibles Note 13

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.

Council has categorised and measured the financial assets and financial liabilities held at balance date as follows:

Financial Assets

Cash and cash equivalents Note 9 Receivables measured at amortised cost less any impairment Note 10 Investments

Financial Liabilities

Payables measured at amortised cost Note 14 Borrowings measured at amortised cost Note 15

Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied.

(d) Rounding and Comparatives

The financial statements are in Australian dollars that 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.

(e) Taxation

The income of local government and public authorities is exempt from Income Tax. However, Council is subject to Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and Payroll Tax on certain activities. The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively.

(f) Waste Levy Received in Advance

The State Government made an advance payment to Council in June 2019 to mitigate the impacts on households for 2019-20 of the State Waste Levy, which takes effect from 1 July 2019. The Council will be liable to the State for payment of the Levy on most forms of commercial and household waste delivered to its disposal sites from 1 July 2019. The State is required to make an annual payment to the Council that essentially refunds the Council for the portion of the Levy that relates to households. Council will fund the portion of the Levy that relates to commercial waste through charges to commercial users of disposal sites from 1 July 2019. As the receipt from the State in June 2019 is for a

Page 7

58 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 2. Analysis of Results by Function

(a) Components of Council Functions

Details relating to Council's functions/activities as reported in part (b) are as follows:

Corporate Governance The objective of Corporate Governance is to be a well governed, responsive Council, providing effective leadership and management, and respecting community values. This function includes strategic planning, risk management, legal and administrative support. The Mayor, Councillors and Chief Executive Officer are included in corporate governance.

Finance and Business Strategy Finance and Business Strategy provides quality and dependable corporate and financial services across Council. This function includes customer service, human resources, information technology, stakeholder engagement and communication and finance. Its goals are to provide service delivery in line with customer and community expectations, attract and retain a skilled workforce, implement reliable and contemporary information, knowledge and management systems, engage in continuous improvement and implement sustainable financial management and effective procurement practices.

Environment and Community Services The goal of Environment and Community Services is to provide a safe, healthy and equitable community that celebrates diversity and enjoys a quality lifestyle. This function provides community, cultural and sporting facilities, as well as ensuring the effective delivery of health and environmental standards, community safety and disaster management capability.

Planning and Development The goal of Planning and Development is to ensure regional growth and change is well managed, integrated and connected which respects community, environmental and heritage values as well as ensuring the region's environmental assets (including natural areas and resources, open space and agricultural land) are conserved and enhanced for future generations. This function includes strategic planning and economic development, regional planning scheme, priority infrastructure plan, development applications and certification and compliance for building, plumbing, drainage and development.

Infrastructure Services Infrastructure Services are responsible for the integrated and timely provision and management of sustainable infrastructure for the region that facilitates the development of the region and maximises the utilisation of existing assets. Its goals include ensuring infrastructure meets the needs and priorities of Council, the community and industry; provide a safe, sustainable and efficient road network; plan and deliver stormwater management and flood resilience plans and implement urban improvement works that enhance local character and conserve and improve the region's streetscapes and parkland.

Waste Management Waste Management incorporates the operation and management of Council's waste transfer and disposal facilities together with the management of Council's waste collection and recycling contracts. Its objective is to provide efficient and sustainable waste management infrastructure and services, as well as to minimise the impacts of waste generation and landfill emissions.

Water Services Water Services delivers and manages efficient and sustainable, high quality, water supply systems throughout the region. It is responsible for the planning, co-ordination and maintenance of the water network, water treatment and dams as well as the provision of drinking water.

Wastewater Services Wastewater Services is responsible for the planning, co-ordination and maintenance of the wastewater trunk and reticulation networks and related fixed plant and equipment and SCADA systems for wastewater infrastructure. Its aim is to deliver and manage a high quality sewerage network and treatment facilities and effective and efficient use of recycled water.

Page 8

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 59

- - - - 1 1

742 531 395 $'000 $'000 57,596 53,658

578,756 578,756 206,841 545,146 784,122 448,042 372,867 202, 947, 527, 4,410,675

2,415,08 2, 4,729,10 Total Assets

) ) ) 3 7 0 010 956 $'000 $'000 9,404 9,404

(9,004) (5,200 (4,457) (8,557) (4,184) 27,595 26,664 13,558

85,52 16, 28,45 22, 87,59 (52,850 (29,160 (51,746) (20,505) 1 Net Net Result Total Assets Result Net

) 960 $'000 $'000 4,610 4,610 3,081 5,068 8,373

(9,004) (5,200) (8,557) (4,184) 13,955 21,213 97,450 19,552 12,146

93, (60,551 (55,902) (57,988) (47,568) Financial Statements 2019

from from Recurring Recurring Net Result Result Net Result Net Operations Operations

) ) ) ) $'000 $'000 (9,111) (8,675) 14,647)

(68,538 (76,116 (12,837) (76,680) (30,378) (60,791) (25,096 (48,859) (72,435) (12,329) (66,640) ( (58,085) (24,817) (359,547 (306,487) Total Total Expenses Expenses

) ) ) - - - - -

295 153

Page 9 (129) (369) (406) (296) $'000 $'000 4,336 4,336

(9,067) (3,190 (9,475) (5,393)

(22,974 (35,729

) ) ) $'000 $'000 (9,111) (8,675)

(45,564 (76,116 (12,837) (76,551) (21,311) (57,601) (24,727) (39,384) (72,730) (12,329) (66,793) (18,983) (57,679) (24,521) (323,818 (301,094) Gross Program Expenses Gross Program Expenses

7 107 061 118 522 644 774

,520 $'000 $'000 7,637 8,145

23,266 25,921 76,801 52,691 20,688 46,135 24,051

47 71, 47, 388,004 388,004 154, 175, 394,07 Total Income Total Income

------1 6

537 817 108 116 $'000 $'000 1,837 1,837 6,166 3,390 7,885 2,387 4, 6,75 2,76 38,688

14, 34, 55,

------6

Capital Capital 428 997 556 934 721

$'000 $'000 5,864 5,864 3,205 2, 20,705

26, 19,02 25,

7 107 116

$'000 $'000 7,320 7,320 7,883

13,816 13,321 25,418 71,480 45,940 12,782 12,755 23,864 66,052 44,073

131,338 131,338 308,740 296,082 128,55

Gross Program Income Gross Program Income

- - - - 6 2

76

317 503 262 187

Recurring Recurring $'000 $'000 1,749 1,749 7,328 8,277 1,960 6,470 7,158 8,18 18,159

1 Grants Other Grants Other Other Recurring Capital Capital Recurring Other Grants Other Grants Other Capital Recurring Other Grants Other Grants Other

(Restated) (b)Income Expenses and defined between Recurring and Capital attributedare to the following: For the year June year the For 2019ended 30 Toowoomba Regional Council Notes toFinancial the Statements

* Councilhas madea retrospective restatementasconsequence a of a correctionof prior period errors and therefore, in accordance with AASB101has re-statedthe valuesfor thecomparative year(30 June2018).

2019 2018 Note2. Analysis of Results by Function (continued) Corporate Governance Governance Corporate Strategy Business and Finance Environment and Community Services Development and Planning Infrastructure Services Waste Management Services Water Services Wastewater Governance Corporate Strategy Business and Finance Environment and Community Services Development and Planning Infrastructure Services Waste Management Services Water Wastewater Services Functions Functions

60 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 3. Revenue

Revenue is recognised at the fair value of the consideration received or receivable, at the time indicated below.

2019 2018

$'000 $'000 Notes

(a) Rates, Levies and Charges Rates are recognised as revenue at the start of the rating period. If a ratepayer pays their rates before the start of the rating period, they are recognised as revenue when they are received.

General Rates 139,470 134,780

Separate Rates 7,138 6,750

Water 42,935 40,896

Water Consumption, Rental and Sundries 34,284 29,937

Sewerage 36,128 34,072

Sewerage Trade Waste 1,830 1,828

Garbage Charges 19,066 18,126

Total Rates and Utility Charge Revenue 280,851 266,389

Less: Rate Discounts (22,517) (21,558)

Less: Rate Concessions (2,176) (2,090)

Total Rates, Levies and Charges 256,158 242,741

(b) Fees and Charges Fees and charges are recognised when Council is unconditionally entitled to those funds. Generally this is upon lodgement of the relevant applications or documents, issuing of the infringement notice or when the service is provided.

Fees and Charges 36,770 35,866

Total Fees and Charges 36,770 35,866

(c) Interest and Investment Revenue Interest received from term deposits is accrued over the term of the investment. Dividends are recognised upon receipt. Interest is charged on outstanding rates at a rate of 10% per annum, calculated and charged half yearly. No interest is charged on other debtors.

Interest Received from Investments 4,026 4,221

Interest from Overdue Rates and Utility Charges 520 440

Total Interest and Investment Revenue 4,546 4,661

(d) Sales Revenue

The sale of goods is recognised when the customer has taken delivery of the goods. Revenue from services is recognised when the service is rendered. Revenue from contracts and recoverable works generally comprises a recoupment of material costs together with an hourly charge for use of equipment and employees. This revenue and the associated costs are recognised by reference to the stage of completion of the contract activity at the reporting date. 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. There are no contracts in progress at the year end. The contract work carried out is not subject to retentions.

Contract and Recoverable Works 10,077 10,589

Total Sales Revenue 10,077 10,589

Page 10

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 61

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 4. Grants, Subsidies, Contributions and Donations

Grants, subsidies, donations and contributions that are non-reciprocal in nature are recognised as revenue when Council obtains control over them, which is usually upon receipt of funds.

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. Non-cash contributions with a value in excess of the recognition thresholds are recognised as non- current assets. Those below the thresholds are recorded as expenses.

Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled.

Capital Revenue includes grants and subsidies received which are tied to specific projects for the replacement or upgrade of existing non- current assets and/or investment in new assets. It also includes non-cash contributions which are usually infrastructure assets received from developers.

2019 2018

Notes $'000 $'000

(a) Recurrent

General Purpose Grants 13,605 13,826

State Government Subsidies and Grants 2,629 2,138

Commonwealth Government Subsidies and Grants 977 574

Donations 10 -

Contributions 938 620

Total Recurrent Grants, Subsidies, Contributions and Donations 18,159 17,158

(b) Capital

State Government Subsidies and Grants 19,150 13,099

Commonwealth Government Subsidies and Grants 7,714 10,734

Contributions 133 1,888

Infrastructure Charges 10,834 33,218

Non-Monetary Revenue received is analysed as follows:

Donations from Third Parties at Fair Value 23,274 21,898

Total Capital Grants, Subsidies, Contributions and Donations 61,105 80,837

Page 11

62 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 5. Employee Benefits

2019 2018

Notes $'000 $'000

Wages and Salaries 92,587 90,987 Annual, Sick and Long Service Leave Entitlements 25,921 24,743 Superannuation 20 16,756 12,590 Councillor's Remuneration 1,378 1,347

136,642 129,667

Other Employee Related Expenses 1,846 1,777

138,488 131,444

Less: Capitalised Employee Expenses (19,616) (22,222)

Total Employee Benefits 118,872 109,222

Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties.

Page 12

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 63

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 6. Materials and Services

2019 2018

Notes $'000 $,000

Advertising 777 845

Administration Supplies and Consumables 1,316 1,553 Audit of Annual Financial Statements by the Auditor-General of

Queensland* 244 195

Bulk Road and Other Materials 2,962 3,957

Communications and IT 5,353 4,552

Conferences and Seminars 833 1,020

Consultants 6,113 6,488

Contractual Expenses 15,720 10,242

Donations Paid 4,286 4,217

Electricity 13,908 12,458

Equipment Hire 4,460 4,749

Fuel and Chemicals 6,379 5,986

Garbage Collection Services 10,799 9,908

Minor Equipment and Other Materials 1,368 993

Professional Services 6,346 5,502

Repairs and Maintenance 3,323 3,336

Operating Leases - Rentals 1,500 1,542

Other Utilities 6,659 5,568

Other Materials and Services 5,326 4,832

Total Materials and Services 97,672 87,943

* The agreed audit fee for 2018-19 as per client strategy is $207,000

Note 7. Finance Costs

Borrowing costs are expensed as they fall due for payment in line with their agreed loan repayment schedules.

2019 2018

Notes $'000 $'000

Finance Costs - Queensland Treasury Corporation 8,298 8,884

Bank Charges 517 534

Total Finance Costs 8,815 9,418

Page 13

64 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 8. Capital Income and Expenses

2019 2018

$'000 $'000 Notes

(a) (Profit)/Loss on Disposal of Non-Current Assets

Proceeds from the Disposal of Property, Plant and Equipment 4,994 4,318 11 Less: Book Value of Property, Plant and Equipment Disposed (4,779) (4,268)

(Profit)/Loss on Disposal of Non-Current Assets (215) (50)

(b) Provision for Restoration of Land

16 Discount Rate Adjustment - Refuse Restoration 8,923 (3,846) 16 Discount Rate Adjustment - Quarry Rehabilitation 735 (30) 16 Increase/(Decrease) in Rehabilitation Provision - Refuse Restoration 144 (502) 16 Increase/(Decrease) in Rehabilitation Provision - Quarry Rehabilitation 3,458 134

13,260 (4,244)

(c) Other Capital Expenses

Loss on Write-off of Assets

Land 420 1,111

Buildings 6,232 213

Plant and Equipment 176 85

Road and Bridge Network 10,549 7,514

Water Infrastructure 3,191 386

Wastewater Infrastructure 219 296

Drainage 81 6

Heritage Assets 143 75

Site Improvements 1,655 1

Aerodromes Infrastructure 18 -

22,684 9,687

Total Capital Expenses 35,729 5,393

Page 14

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 65

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 9. Cash, Cash Equivalents and Investments

Cash and cash equivalents include cash on hand, all cash and cheques receipted but not banked at the year end, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to cash and which are subject to an insignificant risk of changes in value.

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 the Commonwealth Bank, National Australia Bank, Bendigo Bank, Bank of Queensland, Suncorp Bank and Heritage Bank.

Cash at bank and on hand at 30 June 2019 includes $4,832,442 received from the State Government to mitigate the direct impacts on households of the State Waste Levy, which comes into effect from 1 July 2019. This money has been set aside to help fund the Council 2019-20 Levy expense.

In accordance with the Local Government Act 2009 and Local Government Regulation 2012, a separate trust bank account and separate accounting records are maintained for funds held on behalf of outside parties. Funds held in the trust account 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). 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.

2019 2018

Notes $'000 $'000

Cash and Cash Equivalents

Cash at Bank and on Hand 1,064 490

Deposits on Call 90,240 43,285

Term Deposits 50,425 95,415

Total Cash, Cash Equivalents and Investments 141,729 139,190

Restricted Cash, Cash Equivalents and Investments

Council's Cash and Cash Equivalents are subject to a number of Internal and External Restrictions that limit amounts available for discretionary or future use. These Internal Restrictions were previously allocated to Reserves. These include:

Internally imposed Expenditure Restrictions at the reporting date:

Funds Set Aside by Council and held in Reserves for Future Projects 120,820 112,023

Externally imposed Expenditure Restrictions at the reporting date:

Waste Levy Refund Received in Advance 4,832 -

Total Unspent Restricted Cash, Cash Equivalents and Investments 125,652 112,023

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 5,129 5,913

Security Deposits 15,137 18,656

Total Trust Funds Held for Outside Parties 20,265 24,569

Page 15

66 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 10. Receivables

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 statement date.

Council applied AASB 9 for the first time this year. As a result, Council has calculated the impairment of receivables in a different way for 2019, using a lifetime expected loss allowance. There has not been an adjustment because the impact has been assessed to not be material as a result of introducing the new standard.

2019 2018

Notes $'000 $'000

Current

Rateable Revenue and Utility Charges 12,233 10,200

Other Debtors 12,231 1,652

Accrued Revenues

- Interest on Investments 499 1,274

Fees and Charges 15,377 34,256

Total 40,340 47,382

Less: Provision for Impairment

Adjustment to Opening Balance upon Application of AASB 9 - -

Other Debtors (109) (145)

Total Provision for Impairment - Receivables (109) (145)

Total Current Receivables 40,231 47,237

The fair value of receivables is assumed to approximate the value of the original transaction, less any allowance for impairment.

Page 16

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 67

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 11. Property, Plant and Equipment

(a) Recognition

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.

Replacement of a major component of an asset, in order to maintain its service potential, is treated as the acquisition of a new asset. However, routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life of the non- current asset is expensed as incurred.

Expenditure incurred in accordance with Natural Disaster Relief and Recovery Arrangements on road assets is analysed to determine whether the expenditure is capital in nature. The analysis of the expenditure requires Council engineers to review the nature and extent of expenditure on a given asset. For example, expenditure that patches a road is generally maintenance in nature, whereas a kerb to kerb rebuild is treated as capital. Material expenditure that extends the useful life or renews the service potential of the asset is capitalised.

Land under Roads

Land under the roads and reserve land which falls under the Land Act 1994 or the Land Title Act 1994 is controlled by the Queensland Government pursuant to the relevant legislation. This land is not recognised in these financial statements.

(b) Measurement

Property, plant and equipment 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. Direct labour and materials and an appropriate proportion of overheads incurred in the acquisition or construction of assets are also included in their cost. Subsequently, each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss.

Property, plant and equipment received in the form of 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.

(c) Depreciation

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, at which time they are reclassified from work in progress to the appropriate property, plant and equipment class.

Land and Heritage Assets are not depreciated as they have unlimited useful lives. 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.

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 written down current replacement cost are used to estimate the useful lives of these assets at each reporting date.

(d) Impairment

Property, plant and equipment is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines as an impairment loss.

Page 17

68 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019 Note 11. Property, Plant and Equipment (continued)

(e) Valuation

Land and Site Improvements, Buildings, and all Infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value Measurement. Other Plant and Equipment, Heritage Assets and Work in Progress are measured at cost.

Non-current physical assets measured at fair value are re-valued, 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 non-current assets at least once every three years. This process involves the valuer physically sighting a representative sample of Council assets across all asset classes and making their own assessments on the condition of the assets at the date of inspection.

In the intervening years, Council uses internal engineers and asset managers to assess the condition and cost assumptions associated with all infrastructure assets, the results of which are considered in combination with an appropriate cost index for the region. Together these are used to form the basis of a management valuation for infrastructure asset classes in each of the intervening years. With respect to the valuation of the land and site improvements, buildings and major plant asset classes in the intervening years, management engages independent, professionally qualified valuers to perform a "desktop" valuation. A desktop valuation involves management providing updated information to the valuer regarding additions, disposals 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. Further details in relation to valuers, the methods of valuation and the key assumptions used are disclosed in Note 12.

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.

Separately identified components of assets are measured on the same basis as the assets to which they relate.

Page 18

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 69 70

Financial Statements 2019

TOOWOOMBA REGIONALCOUNCIL Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 11. Property, Plant and Equipment (continued)

Road and Bridge Wastewater Aerodrome Capital Work in Land Site Improvements Buildings Plant and Equipment Water Infrastructure Drainage Heritage Assets Total 30 June 2019 Network Infrastructure Infrastructure Progress

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Measurement Basis Note Fair Value Fair Value Fair Value Cost Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Cost

Opening Gross Balance - at Cost - - - 128,736 ------178,510 307,246

Opening Gross Balance - at Fair Value 264,747 191,889 358,742 - 2,441,504 1,433,103 664,040 383,754 20,468 15,994 - 5,774,241

Opening Gross Balance 264,747 191,889 358,742 128,736 2,441,504 1,433,103 664,040 383,754 20,468 15,994 178,510 6,081,487

Additions ------153,149 153,149

Contributed Assets 1,770 - - - 7,330 3,269 4,681 6,223 - - - 23,273

I Disposals 8 (908) (2,715) (9,445) (12,061) (17,387) (8,716) (902) (84) (25) (143) - (52,386)

Annual Report 2018 -2019 Revaluation Increments/(Decrements) to Equity (ARR) 17 - 8,613 9,067 - 32,668 (115,420) 34,420 14,814 310 670 - (14,858)

Work In Progress Transfers 605 35,914 27,751 15,421 72,824 18,706 6,367 19,443 38 422 (199,323) (1,832)

Internal Transfers between Asset Classes - 2,727 119 758 (2,073) (90) - 1,527 - (2,734) - 234

Expensed Capital Works - Prior Financial Years ------(1,799) (1,799)

Total Gross Value of Property, Plant and Equipment - at Cost - - - 132,854 ------130,537 263,391 Total Gross Value of Property, Plant and Equipment - at Fair Value

266,214 236,428 386,234 - 2,534,866 1,330,852 708,606 425,677 20,791 14,209 - 5,923,877 Total Gross Value of Property, Plant and Equipment 266,214 236,428 386,234 132,854 2,534,866 1,330,852 708,606 425,677 20,791 14,209 130,537 6,187,268

Opening Accumulated Depreciation - 114,760 129,557 62,197 528,583 672,340 250,229 112,977 4,490 - - 1,875,133

Depreciation Expense - 4,442 8,369 11,791 34,696 20,415 11,570 4,662 419 - - 96,364

Disposals 8 - (1,060) (3,085) (7,723) (6,839) (5,525) (682) (4) (7) - - (24,925)

Revaluation Increments/(Decrements) to Equity (ARR) 17 - 4,488 3,370 - 16,243 (279,762) (38,708) 4,466 85 - - (289,818)

Internal Transfers between Asset Classes - - 39 70 (38) (39) - 38 - - - 70 Total Accumulated Depreciation of - 122,630 138,250 66,335 572,645 407,429 222,409 122,139 4,987 - - 1,656,824 Property, Plant and Equipment

Total Net Book Value of 266,214 113,798 247,984 66,519 1,962,221 923,423 486,197 303,538 15,804 14,209 130,537 4,530,444 Property, Plant and Equipment

Other Information -

Range of Estimated Useful Life (years) Not depreciated 10 - unlimited 15 - 200 2 - 15 12 - unlimited 10 - unlimited 10 - unlimited 10 - unlimited 12 - 150 10 - 100 -

*Asset Additions Comprise

Asset Renewals - 3,686 10,182 11,725 25,666 9,283 4,174 144 - - - 64,860

Other Additions 170 9,470 20,584 7,159 31,755 12,331 6,584 173 - 63 - 88,289

Total Additions 170 13,156 30,766 18,884 57,421 21,614 10,758 317 - 63 - 153,149

Page 19

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 11. Property, Plant and Equipment (continued) Road and Bridge Wastewater Aerodrome Capital Work in Land Site Improvements Buildings Plant and Equipment Water Infrastructure Drainage Heritage Assets Total 30 June 2018 Network Infrastructure Infrastructure Progress $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Measurement Basis Note Fair Value Fair Value Fair Value Cost Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Cost Annual Report 2018 -2019

Opening Gross Balance - at Cost - - - 123,282 ------133,950 257,232

Opening Gross Balance - at Fair Value 240,619 180,603 341,348 - 2,705,502 1,425,571 651,432 362,406 16,015 15,480 - 5,938,976

Opening Gross Balance 240,619 180,603 341,348 123,282 2,705,502 1,425,571 651,432 362,406 16,015 15,480 133,950 6,196,208

Additions ------161,524 161,524

Contributed Assets (Restated) 1,318 - - - 3,419 5,111 7,180 4,870 - - - 21,898

Disposals 8 (1,511) (204) (1,146) (11,188) (13,743) (2,892) (3,911) (7) - (75) - (34,677)

Revaluation Increments/(Decrements) to Equity (ARR) 17 14,023 7,219 8,836 - (304,181) - - 14,289 2,075 293 - (257,446)

Work in Progress Transfers 10,298 4,271 12,358 16,642 50,739 4,922 9,092 2,196 130 296 (115,339) (4,395)

Internal Transfers between Asset Classes - - (2,654) - (232) 391 247 - 2,248 - - -

Expensed Capital Works - Prior Financial Years ------(1,625) (1,625) Total Gross Value of Property, Plant and Equipment - at Cost - - - 128,736 ------178,510 307,246

Total Gross Value of Property,

I 264,747 191,889 358,742 - 2,441,504 1,433,103 664,040 383,754 20,468 15,994 - 5,774,241 Plant and Equipment - at Fair Value Total Gross Value of Property, 264,747 191,889 358,742 128,736 2,441,504 1,433,103 664,040 383,754 20,468 15,994 178,510 6,081,487 TOOWOOMBA REGIONALCOUNCIL Plant and Equipment

-

Opening Accumulated Depreciation - 106,801 120,763 58,326 453,373 651,245 242,230 104,352 3,113 - - 1,740,203

Depreciation Expense - 3,756 7,718 11,105 30,502 23,539 11,552 4,281 359 - - 92,812

Disposals 8 - (203) (932) (7,234) (6,230) (2,507) (3,614) (1) - - - (20,721) Revaluation Increments/(Decrements) to Equity (ARR) 17 - 4,406 3,248 - 50,971 - - 4,345 (131) - - 62,839

Internal Transfers between Asset Classes - - (1,240) - (33) 63 61 - 1,149 - - -

Total Accumulated Depreciation of - 114,760 129,557 62,197 528,583 672,340 250,229 112,977 4,490 - - 1,875,133 Property, Plant and Equipment

Total Net Book Value of 264,747 77,129 229,185 66,539 1,912,921 760,763 413,811 270,777 15,978 15,994 178,510 4,206,354 Property, Plant and Equipment

-

Other Information -

Range of Estimated Useful Life (years) Not Depreciated 10 - unlimited 15 - 200 2 - 15 12 - unlimited 10 - unlimited 10 - unlimited 10 - unlimited 12 - 150 10 - 100 -

71

Page 20

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 12. Fair Value Measurements

Council measures and recognises the following assets at fair value on a recurring basis:

Equity Investments Land Buildings Road and Bridge Network Water and Wastewater Infrastructure Drainage Site Improvements Aerodrome Infrastructure

The fair value of borrowings disclosed in Note 15 is provided by the Queensland Treasury Corporation and represents the contractual undiscounted cash flows at balance date (Level 2).

The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature (Level 2).

In accordance with AASB 13 fair value measurements are categorised on the following basis:

Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) Fair value based on inputs that are directly or indirectly observable, such as prices for similar assets, for assets or liabilities (Level 2) Fair value based on unobservable inputs for assets and liabilities (Level 3)

There were no transfers between levels 1 and 2 during the year, nor between levels 2 and 3.

out of the fair value hierarchy levels as at the end of the reporting period.

Valuation Techniques used to Derive Fair Values

Where Council is unable to derive fair valuations using quoted market prices of identical assets (i.e. Level 1 inputs), Council instead utilises a spread of both observable inputs (Level 2 inputs) and unobservable inputs (Level 3 inputs).

When applying Level 2 inputs, the fair value is derived by reference to Level 2 market based evidence including observable historical sales data for assets of a similar nature and specification within the Toowoomba Regional Council and surrounding areas. The most significant input into this valuation approach is price per square metre.

When applying Level 3 inputs, the fair value is determined Replacement Cost of the modern equivalent (or cost of reproduction where relevant) and then adjusting for the level of consumed future economic benefit and impairment.

Equity Investment South Burnett Community Enterprises Limited (formerly known as Yarraman Financial Services) - fair value was derived by reference to Level 2 market based evidence. The share price as at 30 June 2019 published by the National Stock Exchange of Australia was used. These shares are not actively traded.

Land 8. Fair value was derived by reference to Level 2 market based evidence. A review of market movements since the last valuation was undertaken by the same valuers and it was determined that no indexation was required as at 30 June 2019.

year.

Buildings A comprehensive valuation of Buildings fair values was determined by independent, external registered valuers as at 30 June 2017. Fair value was derived by reference to both Level 2 and Level 3 inputs where relevant.

Level 2 inputs were used to determine the 2016/17 fair value of a range of properties including residential properties using the market approach or direct comparison approach. Due to their saleable value, residential properties fair value have been derived from sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant input into this valuation approach is price per square metre.

Page 21

72 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 12. Fair Value Measurements (continued)

Level 3 inputs were used to determine the 2016/17 replacement cost of specialised buildings. While rates based on square metre were considered for these properties, other factors including residual value, useful life, pattern of consumption and asset condition were utilised by professional valuers to determine fair value under the cost approach. Replacement cost is determined by actual construction or purchase nst other valuations, land and devel

The following table shows the breakdown between Level 2 and Level 3 for Buildings as at 30 June 2019.

Buildings $'000

Level 2 - Residential 1,767

Level 3 Specialised 246,216

Total 247,983

Council applied an indexation rate of 3.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further 2.5% as at 30 June 2019. The valuers report for the 30 June 2019 indexation advised that the building assets were assessed by analysing tralian Bureau of Statistics 2019. The indexation assessment was based on inputs from the producer price data, construction indices and recent construction cost guides and was cross-referenced with comparable local government areas that reflect similar characteristics to Toowoomba Regional Council.

A comprehensive valuation of Council's Building assets is scheduled for the 2019/20 financial year.

Road and Bridge Network as at 31 March 2018 using Level 3 inputs under the cost approach.

The Cost Approach requires a number of inputs in order to determine Fair Value. There are also various techniques recommended (such as componentisation) that provide a more accurate assessment. Each of these inputs are discussed briefly below.

The first step in estimating a modern equivalent asset (MEA) is to determine the price that a market participant would have access to in order to create an alternative that could provide the same utility.

The replacement cost is required to reflect all incidental costs that would be incurred by a market participant (such as professional fees and preliminaries). It is sometimes the case that an asset may include features that are redundant, or no longer provide economic benefit, therefore a hypothetical buyer would not pay for these features deemed obsolete. Likewise, the modern replacement asset could include features not included in the subject asset (termed betterment).

These features would therefore need to be removed to come to the net MEA. This shows how a prudent buyer would seek to establish a price that replaced the service potential offered by the asset at the least cost (cost minimisation approach).

A reproduction cost is the estimated cost to construct an exact replica of the asset as much as possible to the same specifications and using lculated using a trending factor and ignores functional and economic obsolescence.

In determining the most appropriate replacement cost of an asset, the nature of the asset, the nature of available comparative cost data and the purpose of the valuation will be taken into consideration along with the application of Greenfield unit rates and project cost assumptions.

In order to ascertain appropriate rate inputs for tangible and non-tangible assets, the valuer will utilise observable and unobservable sources such as construction guide and handbook data, actual construction cost information for similar asset types, discussions with local and active construction companies and suppliers, as well as an internal database of construction cost data.

The Greenfields approach to calculate unit rate inputs, models how Council (or hypothetical market participant) would actually replace/upgrade or build individual, groups or networks of assets in a Greenfield setting. We call this model the Incremental Greenfields Approach, because in the case of networks, we do not assume the whole network is replaced at once (full Greenfields) but rather analyse historical projects to estimate the likely project size and apply unit rate assumptions based on these quantities. This method is important because in a supply constrained remote market, prices can fluctuate widely based on demand.

The basic Greenfields approach differs from a Brownfields approach in the unit rates through rework/repairs, low quantity construction activities and traffic management being excluded.

The useful life (UL) for asset components under the cost approach was varied based on the asset type (i.e. sealed road or kerbing), and component type (i.e. concrete, steel and/or asphalt).

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 73

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 12. Fair Value Measurements (continued)

laboration with Council representatives as well as observing the pattern of service potential exhibited for equivalent assets within the geographical area (climate, usage, public expectations etc.). Inputs were reviewed by Council for appropriateness, some lives were altered where instructed by Council officers.

In order to determine the remaining service potential (remaining life input) of a comprehensively valued asset, the valuer will undertake a condition assessment process taking into account physical deterioration, functional obsolescence, and economic obsolescence. For the comprehensive valuation approach, Council have collated inspection report data, visual condition scoring and photographic evidence to arrive at a condition rating.

The prospect of applying either an indexation percentage or a desktop valuation was considered prior to the end of the 2018/19 financial year. to 30 June 2019. To ensure consistency with the comprehensive valuation undertaken as at 31 March 2018 using the Greenfields approach to unit rates, professional valuers were engaged to perform a desktop valuation on these projects as at 30 June 2019. For desktop assessments, movements in construction markets are calculated through the analysis of a number of sources including; discussions with cost estimators within the industry or in-house Council representatives that manage procurement and project constructions; analysis of industry or sector indices (such as produce price, local government, construction, wage, engineering design and management indices) as well as price guides and quotes from market participants; and analysis of historical and current construction costs for new assets (where available).

Indexation rates, as supplied and justified by the same professional valuers who provided the desktop valuation, were applied to all other assets within the Road and Bridge Network asset Class. For transport type infrastructure assets, an indexation rate is assigned to each asset ectrical. The civil structures index is a combination of the engineering construction index and the road and bridge index and is 3.03% for the 2018/19 financial year. The mechanical index is a combination of the producer price index mix and currency index and is 2.67% for the 2018/19 financial year. The electrical index is based on the producer price index mix and is 1.87% for the 2018/19 financial year.

A comprehensive valuation of Council's Road and Bridge Network assets is scheduled for the 2020/21 financial year.

Water and Wastewater Infrastructure The fair value of Council's Water and Wastewater active and passive assets was determined by independent, external registered valuers as at 31 December 2018 using Level 3 inputs under the cost approach.

Replacement cost (including indices) where cost approach was used, utilised a range of sources including; actual construction or purchase prices from recent projects paid by Council which included contacting suppliers for any recent price movements and for larger complex projects involved disaggregating the overall cost into greater detail; accessing the valuers database where records of actual cost from recent imilar (eg

The valuers identified that allowances were made to adjust for condition and comparability as per AASB 13.

The physical inspection of the assets during a comprehensive valuation is a critical aspect of the process involving the validation of key attributes such as material type and dimensions. Assets valued using the cost approach were physically inspected where a building structure was present. Assets not inspected (such as underground structures, pipes and pits) were unable to be inspected due to their nature and the cost involved in undertaking extensive engineering assessments, therefore reliance was placed on age, condition assessment and attribute

The valuation applied as at 31 December 2018 remained unchanged due to no material movement in current replacement costs to 30 June 2019 as advised by professional valuers.

A comprehensive valuation of Council's Water and Wastewater asset class is scheduled for the 2021/22 financial year.

Drainage A comprehensive valuation of the Drainage assets was undertaken by independent external registered valuers using Level 3 inputs under the cost approach, effective 30 June 2017.

Council applied an indexation rate of 4.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further 3.8% as at 30 June 201 composite civil index combining the Road and Bridge Index, the Engineering Design and Management Index and the Concrete Product Manufacturing Index. The weighting of each index is based on an estimated project costs breakdown of 40%, 30% and 30% respectively.

Due to the specialised nature of Council's drainage assets, valuations have been undertaken on a cost approach, an accepted valuation methodology under AASB 13. While the replacement cost of the assets could be supported by market supplied evidence (Level 2), the other unobservable inputs (such as estimates of useful life, and asset condition) were also utilised (Level 3).

A comprehensive valuation of Council's Drainage assets is scheduled for the 2020/21 financial year.

Page 23

74 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 12. Fair Value Measurements (continued)

Site Improvement Assets A comprehensive valuation of Site Improvement assets was undertaken by independent, external, registered valuers, using Level 3 inputs under the cost approach, effective 30 June 2017.

Council applied an indexation rate of 3.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further ssessed by applying a composite civil index combining the Road and Bridge Index, the Engineering Design and Management Index and the Concrete Product Manufacturing Index. The weighting of each index is based on an estimated project costs breakdown of 40%, 30% and 30% respectively. These indices were then compared to Queensland T

Due to the specialised nature of Council's site improvement assets, valuations have been undertaken on a cost approach, an accepted valuation methodology under AASB 13. While the replacement cost of the assets could be supported by market supplied evidence (Level 2), the other unobservable inputs (such as estimates of useful life, and asset condition) were also utilised (Level 3).

A comprehensive valuation of Council's Site Improvement assets is scheduled for the 2019/20 financial year.

Aerodrome Infrastructure A comprehensive valuation of Aerodrome Infrastructure assets was undertaken by independent, external, registered valuers, using Level 3 inputs under the cost approach, effective 31 March 2018.

Due to this asset class consisting of a variety of asset types, Council applied varying indices as recommended by the independent, external, registered valuers to the 31 March 2018 determined fair value to ascertain fair value as at 30 June 2019. The indexation percentages for the construction of Aerodrome Asset classes have been derived from reference to costing guides issued by the Australian Institute of Quantity internal market research and costings. Assets that are infrastructure in nature were indexed with a percentage ranging from 0.9 3.2% depending on their type (signage, stormwater pits, footpaths etc.), electrical assets were indexed at 1.2%, buildings at 2.0% and civil assets at 2.2%.

A comprehensive valuation of Council's Aerodrome Infrastructure assets is scheduled for the 2020/21 financial year.

Heritage Assets A comprehensive valuation of Heritage assets was undertaken by independent, external, registered valuers, effective 31 December 2018.

Due to the specialised nature of Council's Heritage assets, an audit of the asset class was undertaken to validate the significance and nature of the assets. Following advice from the valuers, it was agreed to value assets which met the criteria of requiring considerable capital works and therefore activating depreciation. These assets were valued using Level 3 inputs under the cost approach. A range of sources were utilised including; actual construction or purchase prices from recent projects paid by Council which included contacting suppliers for any recent price movements and for larger complex projects involved disaggregating the overall cost into greater detail; and accessing the ocations.

After the valuation process of Heritage Assets was complete, these identified assets (valuing $2.734M) were transferred to the Site Improvements asset class for depreciation as at 1 January 2019 and will be included in the comprehensive valuation scheduled for the 2019/20 financial year.

The Heritage Assets class will no longer be included in the revaluation schedule.

Page 24

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 75

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 13. 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.

Costs associated with the development of computer software are capitalised and 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.

2019 2018

Notes $'000 $'000

Intangible Assets represent identifiable non-monetary asset without physical substance.

Intangible Assets are as Follows:

Opening Gross Carrying Value 23,515 19,121

Acquired at Cost 1,832 4,394

Transfers (233) -

Disposals (460) -

Closing Gross Carrying Value 24,654 23,515

Opening Accumulated Amortisation and Impairment (9,728) (8,029)

Amortisation Charges (2,096) (1,699)

Transfers 70 -

Disposals 460 -

Closing Accumulated Amortisation and Impairment (11,294) (9,728)

Total Intangible Assets - Net Book Value 13,360 13,787

The majority of Council's intangible assets are software assets which have a finite useful life estimated at 10 years.

Straight line amortisation, with no residual value, has been used for these assets.

The remaining intangible assets are land easements which have indefinite useful lives. For that reason these assets are not amortised.

Page 25

76 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 14. Payables

Creditors are recognised when goods or services are received, at the amount owed. Amounts owing are unsecured and are generally settled on 30 day terms.

Liabilities are recognised for employee benefits such as wages and salaries and annual leave in respect of services provided by the employees up to the reporting date. The liability is calculated using the present value of remuneration rates that will be paid when the liability is expected to be settled and includes related on-costs.

As Council does not have an unconditional right to defer settlement of annual leave beyond twelve months after the reporting date, annual leave is classified as a current liability.

2019 2018

Notes $'000 $'000

Current

Creditors 32,029 27,880

Annual Leave 11,105 11,100

Total Current Payables 43,134 38,980

The fair value of payables is assumed to approximate the value of the original transaction.

Page 26

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 77

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 15. 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. Borrowing costs are expensed as they fall due for payment in line with their agreed loan repayment schedules. Principal and interest repayments are made quarterly on or around 15 September, 15 December, 15 March and 15 June.

All borrowings are in $AUD denominated amounts and interest is expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Expected final repayment dates vary from 15 March 2021 to 15 March 2036. There have been no defaults or breaches of the loan agreement during the period.

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.

2019 2018

Notes $'000 $'000

Current

Loans - Queensland Treasury Corporation 11,045 10,485

Total Current Borrowings 11,045 10,485

Non-Current

Loans - Queensland Treasury Corporation 140,995 151,715

Total Non-Current Borrowings 140,995 151,715

Reconciliation of Loan Movements for the Year

Loans - Queensland Treasury Corporation

Opening Balance at Beginning of Financial Year 162,200 172,844

Principal Repayments (10,161) (10,644)

Book Value at End of Financial Year 152,040 162,200

The Queensland Treasury Corporation (QTC) loan market value at the reporting date was $180,336,095.82 (2018: $180,522,117.45). 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, however, all loans are guaranteed by the Queensland Government.

Page 27

78 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 16. Provisions

(a) Long Service Leave

The provision for long service leave represents 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 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.

Where employees have met the prerequisite length of service and Council does not have an unconditional right to defer this liability beyond 12 months, long service leave is classified as a current liability. Otherwise it is classified as non-current.

(b) Restoration Provisions

A provision is made for the cost of restoration in respect of refuse dumps and quarries where it is probable that 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 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 are classified as site improvement assets. The provision for restoration is, therefore, included as a site improvement asset. Changes in the provision not arising from the passing of time are added to or deducted from the asset revaluation surplus. If there is no available revaluation surplus, increases in the provision are treated as an expense and recovered out of future decreases (if any).

The Council has the following restoration provisions:

Refuse Sites 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.

The provision recognised for refuse sites is reviewed at least annually and updated based on the facts and circumstances available at the time.

Quarry Sites The provision represents the present value of the anticipated future costs associated with the closure of the quarry sites, 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 sites rehabilitation is reviewed at least annually and updated based on the facts and circumstances available at the time.

Page 28

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 79

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 16. Provisions (continued)

2019 2018

Notes $'000 $'000

Current

Long Service Leave 14,277 13,514

Quarry Rehabilitation 158 40

Superannuation 20 3,543 -

Total Current Provisions 17,978 13,554

Non-Current

Long Service Leave 1,087 2,583

Quarry Rehabilitation 8,616 4,541

Refuse Restoration 110,350 101,283

Total Non-Current Provisions 120,053 108,407

Details of Movements in Provisions

Quarry Rehabilitation

Balance at Beginning of Financial Year 4,581 4,365

Remeasurement Due to Discounting 735 (172)

Additional Provision/(Excess Provision) 3,458 388

Balance at End of Financial Year 8,774 4,581

Refuse Rehabilitation

Balance at Beginning of Financial Year 101,283 105,631

Remeasurement Due to Discounting 8,923 (3,845)

Additional Provision/(Excess Provision) 144 (503)

Balance at End of Financial Year 110,350 101,283

Long Service Leave

Balance at Beginning of Financial Year 16,097 16,735

Long Service Leave Entitlement Arising 2,106 1,698

Long Service Entitlement Paid (2,838) (2,336)

Balance at End of Financial Year 15,365 16,097

Page 29

80 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 17. Asset Revaluation Reserve

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.

2019 2018

Notes $'000 $'000

Movements in the Asset Revaluation Reserve

Balance at Beginning of Financial Year 1,467,139 1,787,426

Net adjustment to non-current assets at end of period to reflect a change in

current fair value:

Land - 14,023

Site Improvements 6,223 2,813

Buildings 5,697 5,587

Road and Bridge Network 16,425 (355,152)

Water Infrastructure 164,343 -

Wastewater Infrastructure 73,128 -

Drainage 10,348 9,943

Aerodrome Infrastructure 225 2,206

Heritage Assets (1,428) 293 11 274,961 (320,287)

Balance at End of Financial Year 1,742,100 1,467,139

Asset Revaluation Reserve Analysis

The closing balance of the Asset Revaluation Reserve comprises the following asset categories:

Land 67,845 67,845

Site Improvements 9,036 2,813

Buildings 74,210 68,512

Road and Bridge Network 742,475 726,050

Water Infrastructure 524,736 360,394

Wastewater Infrastructure 214,481 141,353

Drainage 94,940 84,592

Aerodrome Infrastructure 2,807 2,582

Heritage Assets 11,570 12,998

Balance at End of Financial Year 1,742,100 1,467,139

Page 30

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 81

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 18. Commitments for Expenditure

Payments made under operating leases are expensed in 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.

2019 2018

Notes $'000 $'000

(a) Capital Commitments

Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Property, Plant and Equipment

Buildings 55,191 10,163

Infrastructure 903 10,278

Other 5,436 1,769

Total Commitments 61,530 22,210

These Expenditures are Payable as Follows:

Within the Next Year 60,687 20,018

Later than 1 Year and Not Later than 5 Years 843 2,192

Later than 5 Years - -

Total Payable 61,530 22,210

(b) Operating Leases (Non Cancellable) Payments made under operating leases are expensed in 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.

Minimum Lease Payments in Relation to Non-Cancellable Operating Leases as Follows:

Within the Next Year 1,811 1,514

Later than 1 Year and Not Later than 5 Years 1,688 3,066

Later than 5 Years 698 767

4,197 5,347 The Council has entered into operating leases on some buildings with lease terms between 3 and 10 years. The Council has the option, under some of its leases, to lease the assets for additional terms of 3 to 10 years.

During the year, an amount of $1.49 million (2018: $1.54 million) was recognised as an expense in the Statement of Comprehensive Income in respect of operating leases.

(c) Contractual Commitments Contractual commitments at the end of the financial year but not recognised in the financial statements are as

follows:

Road and Bridge Network 3,833 15,030

Buildings 2,952 5,711

Waste 2,430 2,045

Water 31,750 28,151

Other 32,619 56,156

73,584 107,093

These Expenditures are Payable as Follows:

Within the Next Year 40,859 56,547

Later than 1 Year and Not Later than 5 Years 31,993 49,822

Later than 5 Years 732 724

Total Payable 73,584 107,093

Page 31

82 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 19. Contingent Liabilities

Details and estimates of maximum amounts of contingent liabilities are as follows:

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 2019 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise.

Local Government Workcare

The Council is a member of the Queensland Local Government worker's compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards 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. 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 $1,946,689.20.

Other Contingent Liabilities

2019 2018

Notes $'000 $'000

Details and estimates of maximum amounts of contingent liabilities are as follows:

Various claims are pending against Council. In the opinion of the Council's solicitors

the potential loss on all claims should not exceed: 744 682

Page 32

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 83

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 20. Superannuation

Council contributes to the LGIA Super Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent employee who is a defined benefit member. This rate is set in accordance with the LGIA Super trust deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009.

The scheme is a defined benefit plan, however Council is not able to account for it as a defined benefit plan in accordance with AASB119 because LGIA Super is unable to account for its proportionate share of the defined benefit obligation, plan assets and costs. Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the contribution rate, but has not been recognised as an asset or liability of the Council.

ld that local government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIA Super trust deed changes to council's obligations will only be made on the advice of an actuary.

The last completed actuarial assessment of the scheme was undertaken as at 1 July 2018 ate of 1 July 2018, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory financial position as at the valuation date." The Council is not aware of anything that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date.

No changes have been made to prescribed employer contributions which remain at 12% of employee assets and there are no known requirements to change the rate of contributions.

The next triennial actuarial review is not due until 1 July 2021.

The most significant risks that may result in LGIA Super increasing the contribution rate, on the advice of the actuary, are:

Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional contributions are needed to fund the shortfall.

Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded.

There are currently 62 entities contributing to the scheme and any changes in contribution rates would apply equally to all 62 entities. Toowoomba Regional Council made 5.24% of the total contributions to the plan in the 2018/19 financial year.

2019 2018

Notes $'000 $'000

Superannuation contributions made to the Regional Defined Benefits Fund (RDBF) 886 928

Other superannuation contributions for employees 12,327 11,662

The amount of Superannuation Contributions paid by Council to the 5

Scheme in this period for the benefit of employees was: 13,213 12,590

Superannuation unpaid as at 30 June 2019 5, 16 3,543

2020

$'000

Contributions Council expects to make to the RDBF for 2019/20 832

Page 33

84 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 21. Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities

2019 2018

Notes $'000 $'000

Net Result from Income Statement 28,457 87,590

Non-Cash Items

Depreciation and Amortisation 11,13 98,460 94,511

Accrued Interest Expense 22 328 351

Prior Year Capital Expenditure Expensed in Current Year 11 1,799 1,625

Non Cash Capital Contributions 4 (23,274) (21,898)

77,313 74,589

Investing and Development Activities

Net Losses/(Gains) on Disposal of Assets 8 (215) (50)

Loss on Write-off of Assets 8 22,683 9,687

Capital Grants and Contributions 4 (37,831) (58,940)

Borrowing Costs 8,488 9,067

(6,875) (40,236)

Changes in Operating Assets and Liabilities

(Increase)/Decrease in Receivables 7,039 (24,095)

Increase/(Decrease) in Provision for Doubtful Debts (35) (5)

(Increase)/Decrease in Inventories 770 (95)

Increase/(Decrease) in Payables and Accruals 4,154 81

Increase/(Decrease) in Employee Leave Entitlements (732) (638)

Increase/(Decrease) in Other Liabilities 4,945 132

Increase/(Decrease) in Other Provisions 16,803 (4,132)

32,944 (28,752)

Net Cash provided from/(used in) Operating Activities from the

Statement of Cash Flows 131,839 93,191

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 85 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 22. Reconciliation of Liabilities Arising from Finance Activities

As at 30 June Non-Cash As at 30 June Cash flows 2018 Changes 2019

Notes $'000 $'000 $'000 $'000

Loans 162,200 (10,488) 328 152,040 15 162,200 (10,488) 328 152,040

As at 30 June Non-Cash As at 30 June Cash flows 2017 Changes 2018

Notes $'000 $'000 $'000 $'000

Loans 172,844 (10,995) 351 162,200 15 172,844 (10,995) 351 162,200

Page 35

86 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 23. Correction of Error/s relating to a Previous Reporting Period

year Financial Statements had been overstated by $1,044,883.48. This was due to charges relating to Council owned properties being recorded in the

There was an additional prior year correction relating to the timing of recognition of Contributed Assets (Donations by Third Parties), resulting in the Financial Statements being understated by $12,409,302.35.

The discovery of these errors resulted in Council reviewing the transactions relating to Capital Revenue, Receivables and Property, Plant and Equipment for the year ended 30 June 2018.

These errors have been corrected by adjusting the comparative amounts for 2017/18 in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

The adjustments are as follows:

Reconciliation of Restated Comparatives as at 30 June 2018 Financial Report Line Item/Balance Affected:

Previous Restated

2018 Correction 2018 Notes $'000 $'000 $'000

STATEMENT OF COMPREHENSIVE INCOME

Revenue

Capital Revenue

Increase Grants, Subsidies, Contributions and Donations 69,473 11,364 80,837

Total Income 382,713 11,364 394,077

Net Result 76,226 11,364 87,590

Total Comprehensive Income (244,061) 11,364 (232,697)

STATEMENT OF FINANCIAL POSITION

ASSETS

Current Assets

Receivables 48,282 (1,045) 47,237

Total Current Assets 191,560 (1,045) 190,515

Non-Current Assets

Property, Plant and Equipment 4,193,944 12,409 4,206,354

Total Non-Current Assets 4,207,751 12,409 4,220,161

Total Assets 4,399,311 11,364 4,410,676

Net Community Assets 4,072,352 11,364 4,083,716

COMMUNITY EQUITY

Increase Retained Surplus/(Deficiency) 2,605,213 11,364 2,616,577

Total Community Equity 4,072,352 11,364 4,083,716

STATEMENT OF CHANGES IN EQUITY

OPENING BALANCE 2,528,987 - 2,528,987

Net Result for the Year 76,226 11,364 87,590

Total Comprehensive Income for the year 76,226 11,364 87,590

BALANCE AS AT 30 JUNE 2018 2,605,213 11,364 2,616,577

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 87 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 24. Financial Instruments and Financial Risk Management

(a) Financial Assets and Financial Liabilities

bed in Note 1b. Comparative information has not been restated to reflect the requirements.

Council has exposure to the following risks arising from financial instruments: Credit risk Liquidity risk Market risk

Risk Management Framework Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk credit, liq propriate limits and controls and to monitor these risks and adherence against limits. Council aims to manage volatility to minimise potential adverse effects on the financial performance of Council.

Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and Risk Committee. 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 lysis of 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 financial institutions in Australia, in line with the requirements for the Statutory Bodies Financial Arrangements Act 1982 investment policy. No collateral is held as security relating to the financial assets held by Council.

The carrying amounts of financial assets at the end of the reporting period represent the maximum exposure to credit risk for the Council.

Cash and Cash Equivalents Council may be exposed to credit risk through its investments in the QTC Cash Fund. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties. Deposits in the QTC Cash Fund are capital guaranteed.

Other Financial Assets Other investments are held with financial institutions, which are rated A1+ and long term rating of BBB+ based on Standard an ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed as remote.

Receivables In the case of rate receivables, Council has the power to sell the property to recover any defaulted amounts. In effect, this power protects Council against credit risk in the case of all defaults.

In other cases, Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk. In the case of Infrastructure Charge Receivables, Council registers a charge over the subject land once the receivable is considered overdue (generally over 90 days). This protects Council against credit risk in the case of defaults.

Council does not require collateral in respect of receivables. Council does not have trade receivables for which no loss allowance is recognised because of collateral.

As at 30 June, the exposure to credit risk for trade receivables by type of receivable was as follows:

2019 2018

$'000 $'000 Notes

Property Charges 12,232 10,200

GST Recoverable 2,705 1,652

Infrastructure Charges 12,154 16,790

Other 13,140 18,595

Total 10 40,231 47,237 Refer to Note 10 for further details.

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88 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 24. Financial Instruments and Financial Risk Management (continued)

A summary of Council's exposure to credit risk for trade receivables is as follows:

2019 2018

Not Credit Credit Impaired Impaired

$'000 $'000 $'000

Subject to Impairment

Not Past Due 12,675 - 18,262

Past due 31-60 days 266 - 209

Past due 61-90 days 49 - 29

More than 90 days 259 - 240

Total Gross Carrying Amount 13,249 - 18,740

Loss Allowance (109) - (145)

13,140 - 18,595

Not Subject to Impairment

Property Charges 12,232 - 10,200

GST Recoverable 2,705 - 1,652

Infrastructure Charges 12,154 - 16,790

Total Gross Carrying Amount 27,091 - 28,642

40,231 - 47,237

Expected Credit Loss Assessment as at 1 July 2018 and 30 June 2019 Council has power to sell land to cover rates arrears and some Infrastructure Charges debtors, therefore these debts are not expected to

stages of delinquency to write-off.

A summary of Council's exposure to credit risk for trade receivables is as follows:

2019

Gross

Average Loss Loss Credit Carrying Rate Allowance Impaired

Amount

$'000 $'000

Not Past Due 0.21% 12,675 27 No

Past due 31-60 days 5.42% 266 14 No

Past due 61-90 days 49.50% 49 24 No

More than 90 days 5.77% 259 15 Yes

Total 13,249 80

Loss rates are based on actual credit loss experience over the last four years. Council believes these rates to be an accurate depiction of the write off rates for future years due to the stable economy of the region. At end of period Council determined that there had been no change to Lifetime Expected Credit Loss.

The movement in the allowance for impairment in respect of trade receivables during the year was $35,300.61. All debtors that were written

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 89 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 24. Financial Instruments and Financial Risk Management (continued)

Accounting Policies Receivables Receivables are measured at amortised cost which approximates fair value at reporting date. Receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date.

Accounting Policies Grouping When Council has no reasonable expectation of recovering an amount owed by a debtor, and has ceased enforcement activity, the debt is written-off by directly reducing the receivable against the loss allowance. If the amount of debt written off exceeds the loss allowance, the excess is recognised as an impairment loss.

Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment. The loss allowance for grouped receivables reflects lifetime expected credit losses and incorporates reasonable and supportable forwardlooking information. Economic changes impacting debtors, and relevant industry data form part of the impairment assessment.

Council has identified 4 distinctive groupings of its receivables: Rates and Charges (Property Charges), GST Recoverable, Infrastructure Charges and Other Debtors.

Rates and Charges and Infrastructure Charges: these groups of receivables to possess a credit enhancement, Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate and/or infrastrcuture charges debts. This results in immaterial Expected Credit Losses. Tropical Council does not impair Rates Charges or Infrastructure Charges. Impairment will exist only if arrears are deemed to be greater than the proceeds Council would receive from the sale of the respective property.

Other Debtors: Council identifies other debtors as receivables which are not rates and charges; GST recoverable; or Infrastructure Charges.

Liquidity Risk Liquidity risk is the risk that Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. liabilities when they are on.

Exposure to Liquidity Risk Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC. Council manages its exposure to liquidity risk by maintaining sufficient cash deposits, both short and long term, to cater for unexpected volatility in cash flows.

The following table sets out the liquidity risk in relation to financial liabilities held by Council. It represents the remaining contractual cash flows (principal and interest) of financial liabilities at the end of the reporting period, excluding the impact of netting agreements:

Total

Carrying 0 - 1 Year 1 - 5 Years Over 5 Years Contractual Amount Cash Flows

Notes $'000 $'000 $'000 $'000 $'000

2019

Payables 14 43,134 - - 43,134 43,134

Loans - QTC 15 18,459 69,814 115,575 203,848 152,040

61,593 69,814 115,575 246,982 195,174

2018

Payables 14 38,980 - - 38,980 38,980

Loans - QTC 15 18,459 71,425 132,423 222,307 162,200

57,439 71,425 132,423 261,287 201,180

The outflows in the above table are not expected to occur significantly earlier or for significantly different amounts than indicated in the table.

Market Risk Market ings of financial instruments.

Interest Rate Risk Council is exposed to interest rate risk through investments and borrowings with QTC and other financial institutions. Council has access to a mix of variable and fixed rate funding options through QTC so that interest rate risk exposure can be minimised.

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90 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 24. Financial Instruments and Financial Risk Management (continued)

Sensitivity Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying amount at reporting date. Council does not account for any fixed-rate financial assets or financial liabilities at Fair Value through Profit and Loss, therefore a change in interest rates at the reporting date would not affect profit or loss.

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 date. The calculation assumes the change in interest rates would be held constant over the period.

Effect on Net Result Effect on Equity Net Carrying Amount 1% Increase 1% Decrease 1% Increase 1% Decrease

Notes $'000 $'000 $'000 $'000 $'000

2019

At Call Funds 9 90,240 902 (902) 902 (902)

902 (902) 902 (902)

2018

At Call Funds 9 43,285 433 (433) 433 (433)

433 (433) 433 (433)

QTC Fixed Rate Loan financial instruments with fixed interest rates which are carried at amortised cost are not subject to interest rate sensitivity.

(b) Fair Value

The fair value of trade and other receivables and payments is assumed to approximate the value of the original transaction, less any allowance for impairment. The fair value of borrowings with QTC is based on the market value of the 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 disclosed in Note 15. QTC applies a book rate funding. The book value represents the carrying value based on amortised cost using the effective interest method.

Page 40

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 91

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements For the year ended 30 June 2019

Note 25. National Competition Policy

Business Activities to which the Code of Competitive Conduct is Applied

Toowoomba Regional Council applies the competitive code of conduct to the following activities:

Water and Wastewater Fleet and Plant Services Quarry Operations Waste Management Other Roads Building Certification Cemetery Operations Aerodromes Private Works Aquatics and Indoor Sports Highfields Cultural Centre 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 and Cemetery Fleet and Plant Other Roads Wastewater Operations Services

$'000 $'000 $'000 $'000

Revenue for Services Provided to the Council 1,433 35,298 - 34,036 Revenue for Services Provided to External Clients 117,813 3,570 798 928

Community Service Obligations 19,641 - 467 -

138,887 38,868 1,265 34,964

Less: Expenditure (83,753) (38,271) (1,169) (26,631)

Surplus/(Deficit) 55,134 597 96 8,333

Building Aquatics and Laboratory Private Works Certification Indoor Sports Services

$'000 $'000 $'000 $'000

Revenue for Services Provided to the Council 3 41 1,812 - Revenue for Services Provided to External Clients 724 2,376 427 8,699

Community Service Obligations - 3,637 - -

727 6,054 2,239 8,699

Less: Expenditure (714) (5,399) (2,028) (6,100)

Surplus/(Deficit) 13 655 211 2,599

Highfields Waste Aerodromes Cultural Centre Management

$'000 $'000 $'000

Revenue for Services Provided to the Council 438 4,322 - Revenue for Services Provided to External Clients 483 25,872 485

Community Service Obligations 79 2,668 1,220

1,000 32,862 1,705

Less: Expenditure (1,156) (26,779) (1,785)

Surplus/(Deficit) (156) 6,083 (80)

Page 41

92 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements for the year ended 30 June 2019

Note 25. National Competition Policy (continued)

Actual

Activities CSO Description $'000

Water and To provide pensioner rebates on water and wastewater activities. 1,138 Wastewater

Water and Uneconomical service supply. 18,503

Wastewater

Waste To provide public dumping facilities. 2,668 Management

Highfields Provide recreational facilities to as wide as possible cross section of the community. 79 Cultural Centre

Aquatics and Provide recreational facilities to as wide as possible cross section of the community. 3,637 Indoor Sports

Cemeteries To maintain historical headstone sections and to provide cemetery facilities to rural areas. 467

Aerodromes To provide an economic benefit to the region and to provide airport facilities to rural areas. 1,220

Note 26. Controlled Entities that have not been Consolidated

Toowoomba Regional Council has a number of controlled entities that are not consolidated because their size and nature means that they are not material to Council's operations. The financial statements for each of these entities are subject to separate audit certification by the Queensland Auditor-General or his delegate.

A summary of those entities, their net assets and results for the year ended 30 June 2019 follows:

Controlled Entities - Financial Results:

Interest in Revenue Expenses Profit Assets Liabilities Ownership

Details % $'000 $'000 $'000 $'000 $'000

2019

Empire Theatres Pty Ltd 1 100 3,962 3,915 47 2,477 1,602

Empire Theatre Projects Pty Ltd 2 100 739 716 23 241 506

Empire Theatres Foundation 3 100 83 140 (57) 809 26

Jondaryan Woolshed Pty Ltd 4 100 1,776 1,766 10 1,424 265

Toowoomba and Surat Basin Enterprise Pty Ltd 5 100 3,136 3,124 12 1,409 696

TSBE Export and Investment Development Ltd 6 100 11 - 11 12 -

Interest in Revenue Expenses Profit Assets Liabilities Ownership

Details % $'000 $'000 $'000 $'000 $'000

2018

Empire Theatres Pty Ltd 1 100 4,437 4,363 74 2,040 1,213

Empire Theatre Projects Pty Ltd 2 100 373 485 (112) 94 383

Empire Theatres Foundation (restated) 3 100 137 66 71 856 19

Jondaryan Woolshed Pty Ltd 4 100 1,930 1,812 118 1,541 392

Toowoomba and Surat Basin Enterprise Pty Ltd 5 100 3,128 2,684 444 1,348 647

TSBE Export and Investment Development Ltd 6 100 - - - 1 1

Page 42

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 93

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements for the year ended 30 June 2019

Note 26. Controlled Entities that have not been Consolidated (continued)

1. Empire Theatres Pty Ltd (ACN 086 482 288) is a Heritage Listed, purpose built performing arts theatre. It stages a wide variety of theatre, music and entertainment performances and is also a venue for hire.

2. Empire Theatre Projects Pty Ltd (ACN 135 705 878) is a wholly owned subsidiary of Empire Theatres Pty Ltd and undertakes projects to provide training and performance opportunities to the local community.

3. Empire Theatres Foundation was established to provide performing arts opportunities to young people in the Toowoomba region, to promote the performing arts for the benefit of the local community and preserve the cultural heritage associated with the Empire Theatre.

4. Jondaryan Woolshed Pty Ltd (ACN 128 419 983) is a historical museum and tourist attraction which also hosts annual events and corporate and private functions.

5. Toowoomba and Surat Basin Enterprise Pty Ltd (ACN 128 419 983) was established in 2011 to focus on growing investment and business activity in the region.

6. TSBE Export and Investment Development Ltd (ACN 608 575 104) was established in 2015 to promote industry in the Toowoomba and Surat Basin regional areas, both domestically and internationally.

Note 27. Transactions with Related Parties

(a) Transactions with Controlled Entities

Toowoomba Regional Council has a number of controlled entities that are not consolidated because their size and nature means that they are not material to Council's operations. The group consists of Toowoomba Regional Council and six controlled entities. The controlled entities are not consolidated with Council and details are disclosed in Note 26.

The following transactions occurred with subsidiaries:

Goods and Services Goods and Services Grants and Subsidies provided by Council, on provided to Council, on provided by Council normal terms and normal terms and (Note 1) Subsidiary conditions (Note 2) conditions (Note 3)

2019 2018 2019 2018 2019 2018 $'000 $'000 $'000 $'000 $'000 $'000 Empire Theatre Projects Pty Ltd 33 3 - - 7 4 Empire Theatres Pty Ltd 1,180 1,123 501 502 45 70 Empire Theatres Foundation ------Jondaryan Woolshed Pty Ltd 902 920 80 1 26 - Toowoomba and Surat Basin Enterprise 457 450 - 2 - - TSBE Export and Investment Development Limited ------

Total 2,572 2,496 581 505 78 74

Note 1 - Operating Grants and Sponsorship paid by Council to the controlled entity (GST exclusive) Note 2 - Rental of Buildings, Plant and Equipment provided by Council to the controlled entity (GST exclusive) Note 3 - Goods and Services provided by the controlled entity to Council (GST exclusive)

(b) Transactions with Key Management Personnel (KMP)

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of Council, directly or indirectly. Key management personnel include the Mayor, Councillors, Council's Chief Executive Officer and some Executive and General Managers.

Page 43

94 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements for the year ended 30 June 2019

Note 27. Transactions with Related Parties (continued)

The compensation paid to key management personnel comprises:

2019 2018 Compensation Paid to Key Management Personnel $'000 $'000

Short-Term Employee Benefits 2,677 2,817

Post-Employment Benefits 482 505

Long-Term Benefits 43 37

Termination Benefits - 200

Total 3,202 3,559

(c) Outstanding Balances

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

2019 2018 Receivables (owing from Controlled Entity or Related Party to Council) $'000 $'000

Current (within 30 days) 50 -

Past due 31-60 days - -

Past due 61-90 days - -

More than 90 days overdue - -

Total 50 -

2019 2018 Payables (owing from Council to Controlled Entity or Related Party) $'000 $'000

Current (within 30 days) 13 6

Past due 31-60 days - -

Past due 61-90 days - -

More than 90 days overdue - -

Total 13 6 All amounts owing from or owing to controlled entities and related parties are within normal terms and conditions.

(d) Transactions with Other Related Parties

Other related parties include the close family members of KMP or their close family members. Close family members include a spouse, child or dependent of a KMP or their spouse.

Details of transactions between Council and other related parties are disclosed below:

Additional 2019 2018 Details of Transactions Information $'000 $'000

Purchase of materials and services from entities controlled by key management personnel Note 1 86 94

Total 86 94

Note 1 - Toowoomba Regional Council purchased materials and services from other related parties. All purchases were at arm's length and on normal terms and conditions in the normal course of Council operations.

Page 44

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 95

Financial Statements 2019

Toowoomba Regional Council

Notes to the Financial Statements for the year ended 30 June 2019

Note 27. Transactions with Related Parties (continued)

(e) Loans to/from Related Parties

Council does not make loans to or receive loans from related parties.

(f) Transactions with Related Parties that have not been disclosed

Most of the entities and people that are related parties of Council live and operate within the Toowoomba Region. Therefore, on a regular basis ordinary citizen transactions occur between Council and its related parties. Examples include:

alties included in Council's Register of Local Laws and Subordinate Local Laws

is deemed immaterial

Council has not included these types of transactions in its disclosure, where they are made on the same terms and conditions available to the general public.

Page 45

96 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019 Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 97

To the Councillors of Toowoomba Regional Council

Report on the Audit of the Financial Report Opinion I have audited the financial report of Toowoomba Regional Council. In my opinion, the financial report: a) gives a true and fair view of the as at 30 June 2019, and of its financial performance and cash flows for the year then ended b) complies with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards. The financial report comprises the statement of financial position as at 30 June 2019, the statement of comprehensive income, statement of changes in equity and statement of cash flows the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the certificate given by the Mayor and Acting Chief Executive Officer. Basis for opinion I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the responsibilities for the audit of the financial report section of my report. I am independent of the council in accordance with the ethical requirements of the Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Other information Other information comprises the information included in Toowoomba Regional Council annual report for the year ended 30 June 2019, but does not include the financial report and port the the current year financial sustainability statement and long-term financial sustainability statement and the annual report. My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the current year financial sustainability statement.

98 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of the council for the financial report The council is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards, and for such internal control as the council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. The council is also responsible for assessing the council's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the council or to otherwise cease operations. eport My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an l of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the council's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council.

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 99

Conclude on the appropriateness of the council's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the council's ability to continue as a going concern. If I conclude that a material uncertainty exists, I

financial report or, if such disclosures are inadequate, to modify my opinion. I base my

However, future events or conditions may cause the council to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. I communicate with the council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2019: a) I received all the information and explanations I required. b) In my opinion, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.

30 September 2019

Sri Narasimhan Queensland Audit Office as delegate of the Auditor-General Brisbane

100 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Financial Statements 2019

Toowoomba Regional Council

Current Year Financial Sustainability Statement For the year ended 30 June 2019

Actual Target

2019 2019

Measures of Financial Sustainability

Council's performance at 30 June 2019 against key financial ratios and

targets.

PERFORMANCE INDICATORS

1. Operating Surplus Ratio

Net Result (excluding capital items) 0.94% 0 - 10%

Total Operating Revenue (excluding capital items)

An indicator of which the extent to which revenues raised cover operational expenses only or are available for capital funding purposes or

other purposes.

2. Asset Sustainability Ratio

Capital Expenditure on the Replacement of Assets (renewals) 62.83% more than 90%

Depreciation Expense

An approximation of the extent to which the infrastructure assets managed

are being replaced as these reach the end of their useful lives.

3. Net Financial Liabilities Ratio

Total Liabilities less Current Assets 47.93% less than 60%

Total Operating Revenue (excluding capital items)

An indicator of the extent to which the net financial liabilities can be

serviced by its operating revenue.

Note 1 - Basis of Preparation

The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2013. The amounts used to calculate the three reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose financial statements for the year ended 30 June 2019.

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 101 102 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

To the Councillors of Toowoomba Regional Council

Report on the current year financial sustainability statement Opinion I have audited the accompanying current year financial sustainability statement of Toowoomba Regional Council (the council) for the year ended 30 June 2019 comprising the statement, explanatory notes, and the certificate of accuracy given by the Mayor and the Acting Chief Executive Officer. In accordance with section 212 of the Local Government Regulation 2012, in my opinion, in all material respects, the current year financial sustainability statement of Toowoomba Regional Council for the year ended 30 June 2019 has been accurately calculated. Basis of opinion I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the responsibilities for the audit of the current year financial sustainability statement section of my report. I am independent of the council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the statement in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Emphasis of matter basis of accounting I draw attention to Note 1 which describes the basis of accounting. The current year financial sustainability statement has been prepared in accordance with the Financial Management (Sustainability) Guideline 2013 for the purpose of fulfilling the c responsibilities under the Local Government Regulation 2012. As a result, the statement may not be suitable for another purpose. My opinion is not modified in respect of this matter. Other Information Other information comprises the information included in Toowoomba Regional Council annual report for the year ended 30 June 2019, but does not include the current year financial sustainability statement report report, the other information was the general purpose financial statements, the long-term financial sustainability statement and the annual report. My opinion on the current year financial sustainability statement does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the general purpose financial report.

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In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of the council for the current year financial sustainability statement The council is responsible for the preparation and fair presentation of the current year financial sustainability statement in accordance with the Local Government Regulation 2012. The council s responsibility also includes such internal control as the council determines is necessary to enable the preparation and fair presentation of the statement that is accurately calculated and is free from material misstatement, whether due to fraud or error. udit of the current year financial sustainability statement My objectives are to obtain reasonable assurance about whether the current year financial sustainability statement as a whole is free from material misstatement, whether due to fraud my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this statement. My responsibility does not extend to forming an opinion on the appropriateness or relevance of the reported ratios, nor on the c As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: Identify and assess the risks of material misstatement of the statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the council Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council. Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represents the underlying transactions and events in a manner that achieves fair presentation.

104 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

I communicate with the council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

30 September 2019

Sri Narasimhan Queensland Audit Office as delegate of the Auditor-General Brisbane

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Financial Statements 2019 TOOWOOMBA REGIONALCOUNCIL Toowoomba Regional Council

Unaudited Long-Term Financial Sustainability Statement Prepared as at 30 June 2019

Target Actual Forecast

2019 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Measures of Financial Sustainability

Performance Indicators

1. Operating Surplus Ratio Net Result (excluding capital items) 0 - 10% 0.94% (2.10)% 0.50% 0.50% 0.60% 0.50% 0.60% 0.70% 0.60% 0.60% 0.60%

I Total Operating Revenue (excluding capital items)

Annual Report 2018 -2019 An indicator of the extent to which revenues raised cover operational expenses only or are available for capital funding purposes or other purposes.

2. Asset Sustainability Ratio

Capital Expenditure on the Replacement of Assets (renewals) more than 90% 62.83% 83.40% 70.70% 66.60% 61.10% 67.50% 65.50% 68.60% 65.50% 64.60% 47.70%

Depreciation Expense

An approximation of the extent to which the infrastructure assets managed are being replaced as these reach the end of their useful lives.

3. Net Financial Liabilities Ratio Total Liabilities less Current Assets less than 60% 47.93% 66.90% 69.60% 67.00% 63.00% 58.50% 56.10% 53.10% 49.40% 45.40% 40.70%

Total Operating Revenue (excluding capital items)

An indicator of the extent to which the net financial liabilities can be serviced by its operating revenue.

Toowoomba Regional Council Financial Management Strategy Council measures revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient allocation of resources to ensure the most effective provision of services. Council ensures that its financial management strategy is prudent and that its long-term financial forecast shows a sound financial positi current and future needs.

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Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 107 131 872 I [email protected] I www.tr.qld.gov.au/annualreport PO Box 3021 Toowoomba QLD 4350 I Toowoomba Regional Council

Inners are printed on Australian made 100% recycled paper stock. Cover is not Australian made.