Annual Report 2017-2018 by Fraser Coast Regional Council

ANNUAL REPORT 2017-18

CONTENTS Glossary Of Terms ..................................................................................................................................................1

Section 1: INTRODUCTION ................................................................................................................. 2 Welcome ................................................................................................................................................................3 Snapshot Of Region ................................................................................................................................................4

Section 2: OUR YEAR IN REVIEW ........................................................................................................ 6 Mayor’s Message ...................................................................................................................................................7 CEO’S Message .......................................................................................................................................................8 Performance Report .............................................................................................................................................10 Our Governance .......................................................................................................................................10 Our Community ........................................................................................................................................11 Our Economy ............................................................................................................................................13 Our Environment ......................................................................................................................................15 Our Movement and Access ......................................................................................................................17 Our Places and Spaces..............................................................................................................................19

Section 3: OUR COUNCILLORS ......................................................................................................... 21 Councillor Profiles ................................................................................................................................................22 Councillor Reporting Requirements.....................................................................................................................28

Section 4: OUR PEOPLE .................................................................................................................... 33 Executive Leadership Team..................................................................................................................................34 Organisational Structure ......................................................................................................................................36 Equal Employment Opportunity Program ...........................................................................................................37 Recognising years of Service ................................................................................................................................37 Public Sector Ethics ..............................................................................................................................................38 Organisational Reporting Requirements .............................................................................................................38

Section 5: FINANCIAL REPORTS........................................................................................................ 57 Community Financial Report................................................................................................................................58 Annual Financial Statements................................................................................................................................65 Financial Sustainability Statements ...................................................................................................................116

Section 6: INDEX OF LEGISLATIVE REQUIREMENTS .........................................................................124 Attachment 1: WIDE BAY WATER OPERATIONS REPORT ................................................................127

GLOSSARY OF TERMS

Annual Budget – A statutory requirement

Full-time equivalent (FTE) – The hours worked by

Annual Report – Council’s report on its annual performance, including statements about annual performance, financial statements and disclosures required under legislation.

Governance – How decisions are made and

outlining the financial estimates to deliver the Corporate Plan.

Beneficial Enterprises – An enterprise that a local government considers is directed to benefiting, and can reasonably be expected to benefit, the whole or part of its local government area. Capital works program – Program of scheduled

infrastructure works generally encompassing capital works for road, drainage and building assets.

Community Plan – Council’s 10 year strategic document identifying community needs articulating council’s and the community’s long term vision, aspirations and priorities for the city.

Corporate Plan – A strategic document that sets out Councils plans over a five year period. It outlines the strategies to be undertaken to achieve the vision and outcomes within the Fraser Coast Community Plan. It is a legal requirement under the Local Government Act 2009 for Council to adopt a Corporate Plan.

Corporate Themes – Six strategic themes that form the basis of Council’s corporate and operational plans.

External Audit – An official inspection of an

organisation’s accounts, processes and procedures, typically by an independent body. (QAO – Queensland Audit Office)

one or more staff members that are the equivalent of a full-time employee. For example, this may involve a full-time employee working 36.25 hours per week or two part-time employees each working 18.13 hours per week.

implemented and how organisations are managed and controlled to achieve objectives. Governance also describes the ways an organisation can be held accountable.

Key performance indicator – Evidence of the

degree to which Council’s actions are achieving intended objectives, for the purposes of monitoring progress.

Local Laws – The laws adopted by Council that

prohibit, regulate and control activities, events, practices and behaviours with the Fraser Coast Region.

Operational Plan – A one year plan that sets out

activities to be undertaken in that particular year to achieve the Corporate Plan. An Operational Plan is a legal requirement for Queensland councils under the Local Government Act 2009.

Statutory Information – Information or activities that are required to be reported on under the Local Government Act 2009 and Local Government Regulation 2012. Councillors – Elected representatives of council who serve a 4 year term.

Risk Management

– The process of identifying,

evaluating and controlling risk via the method outlined in the Principles and Guidelines AS/NZS ISO 31000:2009, Standards Australia.

Fraser Coast Regional Council 2017-18 Annual Report

Section 1: INTRODUCTION

Fraser Coast Regional Council 2017-18 Annual Report

WELCOME Welcome to the 2017-18 Annual Report of Fraser Coast Regional Council. This report details our performance in meeting the strategic priorities outlined in our Corporate Plan 2014-2018, and enables Council to share with the community and interested stakeholders information about our achievements, plans and challenges during the 2017-18 financial year. The report covers six key themes which outline a desired future and set goals for the Fraser Coast Local Government Area. The Annual Report also contains statutory information required by the Local Government Act 2009 and Local Government Regulation 2012 including Council’s audited financial statements.

Our Corporate Themes The Annual Report is aligned to six key strategic themes that form the basis of Council’s corporate and operational plans. The key strategic themes are: •

Governance

•

Community

•

Environment

•

Economy

•

Movement and Access

•

Places and Spaces

Our Vision A diverse, strong and well governed region of vibrant places connected as a whole by our community spirit, respect for our natural environment and our innovative and diverse economy.

Our mission Our mission is for the Fraser Coast to offer a lifestyle for everyone. Fraser Coast Regional Council will work towards achieving this vision by sustaining our unique natural environment, building a dynamic region, maintaining a healthy community and establishing a smart customer orientated organisation.

Fraser Coast Regional Council 2017-18 Annual Report

SNAPSHOT OF REGION Population: 103,998 (2017 Est)

Area: 2,356 km2

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Maintains and manages: 293 kilometres of coastline and foreshore 2,700 kilometres of road and footpaths 7 Depots 2 Administration centres & 1 City hall 2 libraries and 3 branch libraries 6 landfills and 8 transfer stations 100 public amenity blocks 96 playgrounds 2 aquatic centres Over 500 park structures 2 airports (1 security controlled with jet capacity) More than 400 buildings and community facilities 4 caravan parks

Fraser Coast Regional Council 2017-18 Annual Report

Section 2: OUR YEAR IN REVIEW

Fraser Coast Regional Council 2017-18 Annual Report

MAYOR’S MESSAGE

The 2017/18 year was marked by a strong focus on affordable growth – the balance of providing the services and facilities a growing region requires while being conscious of our community’s financial ability. Council has a strong emphasis on equality; in the way we raise funds and allocate those funds to projects across the region. As a result we allocated $88 million to a Capital Works Budget allowing us to finish projects such as Stage One of rebuilding Walker Street in Maryborough. We have ensured Council is a modern, well-run organisation which takes advantage of the latest technology and applications. There has been a solid effort to connect with the community. It is important we take our services to the people in the outlying communities who find it difficult to access Council. Council helped publish the Little Black Book: a guide to men’s health services on the Fraser Coast to build connections across the community in a concerted effort to combat depression and suicide. Culturally there have been a number of milestones including the opening of an Aboriginal Welcoming Space at the Hervey Bay Library, created in partnership with the Butchulla Aboriginal Corporation. The Hervey Bay Space mirrors the Welcoming Space at the Maryborough Library. It features indigenous authored books and resources, items on the Butchulla People’s links to the region, K’Gari (Fraser Island) and the region’s South Sea Islander history. Economically, Council has continued to invest in the local economy ensuring the funds we raise in rates are spent through local companies and workers. Council invested $111 million into the local economy last financial year through the Local Spend Policy; equating to an investment of $2.1 million per week in the economy through local businesses. Establishment of the Fraser Coast Regional Leadership Program has helped reinvigorate our smaller communities. The program links smaller communities together to share ideas, resources and provides opportunities to develop fresh and creative ways to drive local economic renewal. Council is proud of what we have achieved in the past year and I am looking forward to the year ahead. I take this opportunity to recognise the fantastic work of our team - Councillors and staff - who work together to do their very best for this community.

Fraser Coast Regional Council 2017-18 Annual Report

CEOâ&#x20AC;&#x2122;S MESSAGE

The focus of our Council over the last twelve months has been to restore community confidence, improve community engagement, transform our organisational culture and review our operations to better suit community needs. And I am particularly proud of our progress. During the year our Council has made a concerted effort to better engage and connect with our smaller communities. Projects such as the mobile Customer Service Van, which visits our smaller communities, have been well received, and we are working more closely with these communities to help build their resilience and better meet their needs. More effort is being invested into community engagement with work having commenced on developing a Community Engagement Strategy that will embrace the principles of deliberative democracy to bring about improved decision making through greater community consultation. Changing our organisational culture has been a major focus of my management team. Internally, we have focused on becoming a values based organisation and have adopted the TRAITS values of Trust, Respect, Accountability, Initiative, Teamwork and Service. These values (or TRAITS) have now become the bedrock upon which we operate. Our internal performance is now measured against the Australian Business Excellence Framework (ABEF) to measure the elements essential to sustainable business excellence. Our TRAITS Change Management plan was rolled out in January 2018 and we are already seeing marked improvement in our ABEF results. This improvement has come about through the efforts of our staff who have embraced and leading the change process. Improved financial management within the Council has allowed us to cancel the proposed 2017/18 borrowings and develop a long term financial management plan that features a no increase in net rates revenue for the 2018/19 Budget year. Significant operational savings have also been achieved through a number of staff lead initiatives. During the year the Council undertook a major review of our general rating categories to ensure greater equity between residents and businesses in the Fraser Coast. This review was led by a community reference group and I would like to acknowledge and thank them for their considerable efforts. After my first full year as the Chief Executive Officer of the Fraser Coast regional Council I am extremely excited about the future of our Council and for our Fraser Coast community and I would like to thank the Mayor, Councillors and my staff for their support and confidence in me and my administration.

Fraser Coast Regional Council 2017-18 Annual Report

Our Governance

Our Community

We are decisive, display strong leadership, foster positive relationships and form cohesive partnerships to benefit the community.

The Fraser Coast will foster and support a healthy and engaged lifestyle. • Community Spirit & belonging • Safeguarding Community & WellBeing • Cultural Diversity • Embracing & Celebrating Creative Arts

• Engaging Communities • Accountability & Leadership • Service Provision

Our Environment Promote and protect a diverse and healthy natural environment with an abundance of native flora and fauna and rich ecosystems. • Protecting, Restoring & Enhancing the Environment • Maintain Unique Biodiversity • Accessing & Utilising the Environment • Environmentally Sustainable Choices • Managing our Natural Resources Sustainably

Our Movement and Access The Fraser Coast has effective transport and pedestrian pathway networks connecting the region. • • • • •

Air Services Road Networks Public Transport Marine Services Pedestrian & Cycle Movement

Our Economy The Fraser Coast Region creates local jobs in an innovative and diverse community to support a vibrant economy. • Growing Local Jobs • Developing Skills & Promoting Education • Supporting a Diverse & Innovative Economic Base • Supporting Tourism & Event Opportunities

Our Places and Spaces Our Communities are vibrant hubs that welcome people to meet and interact. • Create Vibrant City Centres & Civic Precincts • Spaces for Everyone • A Region of WellDesigned Cities & Townships

Fraser Coast Regional Council 2017-18 Annual Report

PERFORMANCE REPORT Our Governance Engaging Communities > >

We are currently renewing our Community Engagement Strategy, we have engaged a consultant and stakeholder consultation is underway. We attend meetings with regional organisations including Wide Bay Burnett Regional Organisation of Council Inc. and Regional Planning Advisory Committee to articulate Councilâ&#x20AC;&#x2122;s views and position on regional planning. Regular meetings are held between the Chief Executive Officer and local members of State and Federal Parliament.

Accountability and Leadership > We are developing a long term financial plan based on

> >

We are decisive, display strong leadership, foster positive relationships and form cohesive partnerships to benefit the community.

Service Provision > We monitor the delivery of all services to ensure all service level agreements are met.

> We undertook a range of promotional activities with the

Fraser Coast Regional Council 2017-18 Annual Report

sound financial principles and consistent with Asset Management Plans which forms the basis of Councilâ&#x20AC;&#x2122;s budget. We have proposed a new local Law. Local Law 7 (Waste Management) to support the State Government Waste Management Legislation. We enforce all State and Local Laws in a transparent and equitable way and all compliance complaints are dealt with within the prescribed timeframes and legal action initiated in line with enforcement protocols.

public to promote responsible pet ownership including Pet PEP in schools, RSPCA Operation Wanted and the G2Z Promotion. We integrate sustainability principles to maximise service life and minimise maintenance/operating costs of assets.

Our Community Community Spirit and Belonging > $30,000 >

> >

of Regional Arts Development Funding was granted towards 12 projects. 16 Regional Performing artists received support via the Regional Arts Development Funding Live program, receiving a professional portfolio of marketing material designed to increase their profile and support ongoing marketing opportunities. Council allocated a total of 100 grants valued at $1,248,228 in the 2017-18 year. Council provided $68,578 to support 25 projects under the Community Grants Scheme (Projects); $86,285 in cash and in-kind support to 25 projects under the Fraser Coast Regional Events Support Scheme; $31,646 was allocated to 19 projects under the Fraser Coast Celebration Event Support Scheme. 18 Local sportspersons were supported with Councilâ&#x20AC;&#x2122;s contribution of $4,700 to represent the region at state, national or international competitions. The Sport and Recreation Capital Assistance Fund supported 13 projects with contributions of $1,057,020. Hervey Bay Artist Rebecca Jane Knowles painted her first mural in 20 years on the wall of the learn-to-swim pool at the Hervey Bay Aquatic Centre. Councillor Discretionary Funds contributed towards the project.

Safeguarding Community and Well-Being

> Maryborough Toy and Special Needs Library staff celebrated the Libraryâ&#x20AC;&#x2122;s 40th Birthday with the community. > Visitors to Fraser Coast Library will have easier access to online services thanks to a State Library of Queensland grant of $25,000. > Council will use funds from the Public library Strategic Priorities Grant to buy equipment to improve Wi-Fi access at library branches in Maryborough, Hervey Bay, Howard, Burrum Heads and Tiaro; update equipment used in computer classes and increase local history data storage

The Fraser Coast will foster and support a healthy and engaged lifestyle.

Fraser Coast Regional Council 2017-18 Annual Report

> The Young Innovators Symposium held at Maryborough and Hervey Bay encouraged young innovators to generate and submit new ideas on how to increase accessibility opportunities and wellbeing on the Fraser Coast. > Fraser Coast Libraries achieved accreditation as an e-Smart Library Service and became officially recognised for their commitment to promoting the safe use of online technology. This allows the community to feel safe while becoming part of actual and virtual communities and acquiring skills needed for the 21st century. > Launch of the new Reading Star program for children that aims to encourage good reading habits for our youngest members leading to increased literacy and engagement. > Four Council delegates attended the Leshan International Travel Expo in September as part of the Sister City relationship between Leshan, a city of about 3.9 million people in central China, and the Fraser Coast. > Two new automatic rain gauges were installed on the inland edges of the Fraser Coast Region. They will constantly send information back to the Disaster Management Co-ordination Centre to predict river movements and expected flood heights. > Council continues to co-ordinate the Little Lime Book that highlights all the welfare and support services on the Fraser Coast. This year over 10,000 copies were distributed. > The Just in Case Card was created in partnership with the Fraser Coast Homelessness Alliance as a resource to highlight all of the support services available to assist people experiencing homelessness. This card has been printed over 3,000 times and is used frequently amongst all services providers on the Fraser Coast. > The community Builders’ Program is jointly funded under the We are Queensland Small Grants program. Council is working with the community to drive community change, learn new ways to build their community’s capacity and resilience and reduce the isolation in the 13 smaller communities on the Fraser Coast. > A four-year Biosecurity Surveillance Program to monitor declared pest animals and plants on the Fraser Coast was approved. We are continuously undertaking surveys of private land to establish the presence of declared pests. > A total of 1,689 animals were impounded, with 809 reclaimed by their owners, 122 were euthanised and 758 were rehomed.

Cultural Diversity

> The 2018 Fraser Coast Sports Expo was held on Sunday 4 February 2018 at the PCYC. With over 2,000 people attending it was a great opportunity for the community to meet with over 60 sporting and recreation exhibitors to get information or sign up to play or volunteer at their chosen sports and activities. > The 2017 Fraser Coast Disability Achievement Awards were held on Wednesday, 25 October 2017 at the Brolga Theatre, Maryborough. These awards showcased the achievements of local people within our community who work towards making the Fraser Coast Australia’s most inclusive region. > The Hervey Bay Library opened a new Aboriginal Welcoming Space, featuring local Butchulla artists Deirdre Gordon and Cheyenne Rashleigh works. The space features indigenous authors’ books and resources, items on the Butchulla people and their links to the region including K’Gari (Fraser Island). It is a keeping place for Butchulla language dictionaries and books. Bush tucker plants which link to the Butchulla seasonal Garden at the Fraser Coast Cultural Centre surround a statue of Buthu at the library entrance. > The ‘Every Hand Helps’ Volunteers Expo was held on Saturday 19 May with over 50 exhibitors showcasing volunteering opportunities. The event attracted hundreds of community members. Over 45,000 volunteer hours were clocked up, this is an indicator of the time Fraser Coast residents contribute to community facilities and community events. > A number of events were held to mark the 150th anniversary of the arrival of South Sea Islanders at the Port of Maryborough.

Embracing and Celebrating Creative Arts

> Council formally opened a new Creative Space at the Fraser Coast Cultural Centre. $16,500 from Councillor Discretionary Funds contributed towards the project, which provides a dedicated area for art-related activities. > Live music, movies, inflatable fun, park runs and workshops were just some of the activities held across the Fraser Coast for National Youth Week between the 6 and 15 of April.

Fraser Coast Regional Council 2017-18 Annual Report

Our Economy The Fraser Coast Region creates local jobs in an innovative and diverse community to support a vibrant economy. Growing Local Jobs

During a visit to the Fraser Coast in November 2017, Queensland Trade and Investment Commissioner – North American, David Camerlengo met with staff from Maryborough’s Branch 95 Specialty Timbers. Image courtesy of Trade and Investment Queensland.

> Council’s Economic Development team facilitated regional visits to foster growth in key business sectors in 2017-18. Familiarisation visits included: - Hosting the Queensland Government’s North American Trade Commissioner in November 2017. In partnership with Trade and Investment Queensland the visit highlighted the region’s export capabilities and was an opportunity for local businesses to showcase their specialties. - Welcoming 15 international education agents for a study tour in March 2018. The visit was delivered in partnership with Trade and Investment Queensland, local schools and the University of the Sunshine Coast. The visit raised awareness of the Fraser Coast’s study opportunities and highlighted the long-term potential for education to be a significant future economic activity. > A total of 960 plumbing approvals were granted and 568 development applications and approvals. > Council gave preliminary approval for an application to build two 20storey towers in the Urangan Harbour precinct. The Anscape Pty Ltd application covers a 1.619 hectare vacant block of land on the Esplanade. The proposed development includes 390 residential units, shops, offices, food and drink outlets, a restaurant and health care services. The plan also allows for 846 parking spaces at ground level and two basement levels.

Fraser Coast Regional Council 2017-18 Annual Report

Developing Skills & Promoting Education

> Careers Expo showcasing opportunities on the Fraser Coast was held on 24 May 2018. The 2018 Fraser Coast Careers Expo showcased the career and training opportunities in the region. The TAFE Queensland delivered event attracted more than 3,500 people bringing jobseekers, education institutions and employment providers together.

Supporting a Diverse and innovative Economic Base

> As a major user of products and services and a good corporate citizen, Council ensures local businesses participate in its procurement activity. In 2017-18, Council spent more than $100 million on locally sourced goods and services. This represented 80 per cent of Council’s discretionary operational and capital budgets. This investment is forecast to generate more than $400 million in economic activity on the Fraser Coast. > Drones and unmanned aerial vehicles have the potential to be a significant economic activity on the Fraser Coast. Council delivered a Drone Strategy in 2017-18 and endorsed the strategy on 27 June 2018 following extensive stakeholder consultation. The strategy sets out a vision for the Fraser Coast being at the forefront of drone technology and applications over the mediumterm to 2023. > Council continued to promote innovation across the Fraser Coast in 2017-18. Innovation can be a key platform for business growth and development. Council delivered a suite of innovation activities throughout the year in partnership with education providers and the business community. These included: - The regional ‘remix’ innovation workshop in December 2017. Local business leaders attended the workshop to explore ways to foster connectivity, collaboration and leadership within the region. - Sponsoring the Founderfest youth innovation initiative. Local not- forprofit Berwin Ltd. led the program which equips regional youth with the skills to build a viable, scalable and sustainable business. > Council facilitated a Sustainable Agriculture Forum in September 2017 to promote contemporary farming practices. The three day forum had over 100 attendees and focused on enhancing crop yields and soil quality. Agriculture is one of the region’s major sectors and contributes $288.4m to the local economy (ABS 2018).

Supporting Tourism and Event Opportunities

> Fraser Coast Regional Events Strategy - Events play an important role in the cultural, social and economic development of the Fraser Coast. Council continued to attract major events to the region in 2017-18, including the: - Australian Stock Horse Society Queensland championship titles; - Maryborough Music Conference; and; - Sixth annual Maryborough Open House and Gardens event. > Council contributed funds to ensure artefacts were secured during the ex HMAS Tobruk scuttling preparation to provide a dive site in the waters off Hervey Bay. The items will form a key component of the proposed museum story. Council, along with Bundaberg Regional Council, contributed $1.125 million towards the scuttling. Council contributed costs towards a feasibility study of the ex HMAS Tobruk and Regional Development Australia’s Wide Bay Burnett (in collaboration with partners), Fishing Hall of Fame Project. Council allocated up to $20,000 to securely store artefacts and significant parts of the ship removed in readiness for scuttling. > Three community events were held on the Fraser Coast to welcome the Queens Baton Relay. The Baton carried a message from the Queen around the world and made its way from Buckingham Palace London to the Gold Coast for the Commonwealth Games opening on 4 April. The Queen’s Baton visited Fraser Island, Hervey Bay and Maryborough.

Fraser Coast Regional Council 2017-18 Annual Report

Our Environment

Protecting, Restoring and Enhancing the Environment >

Council hosted a National Tree Day event using local native species propagated by volunteers from the Fraser Coast Community Nursery.

Maintaining Unique Biodiversity >

Council continues to support Community Environment Program (CEP) Groups in the delivery of ground conservation outcomes, including Arkarra Lagoons, Happy Valley and River Heads and National Tree Day Plantings.

Accessing and Utilising the Environment >

A grant for a $340,000 project to build a 2.5 metre-wide concrete pathway to link Burrum Heads with its sporting and community facilities. The Coalition Government contributed $250,000 and Councillor Rolf Light approved $90,000. The grant is part of the Improving Your Local Parks and Environment Program which aims to promote and encourage ecologically sustainable practices.

Promote and protect a diverse and healthy natural environment with an abundance of native flora and fauna and rich ecosystems.

Fraser Coast Regional Council 2017-18 Annual Report

Environmentally Sustainable Choices > >

A harvester has been trialled in an effort to inhibit growth of water lilies in the Ann Street Lagoon. The water lily is adversely affecting drainage and ecosystem health. Foreshore park areas have been developed in compliance with management plans and precinct plans. Additional facilities have been provided at numerous locations including Torquay (exercise equipment and boardwalk) and Scarness (upgraded recreational facilities) and Pialba Adventure Playground. Pialba youth precinct detailed design is underway.

Managing our Natural Resources and Infrastructure Sustainably >

Fraser Coast Regional Council 2017-18 Annual Report

Work is continuing with coastal engineering specialists on a number of Shoreline Erosion Management Plan initiatives. These plans include detailed design and investigations to support the attainment of all regulatory approvals for priority projects relating to coastal protection works and beach nourishment. We continue to conduct waste education programs and tours for schools in accordance with the 2017-18 Waste Community Education Plan. This incorporates increasing community awareness around responsibilities in relation to water and waste management. These programs reinforce the need for water conservation and waste minimisation as 3,358 tonnes of recyclables were collected and delivered to the Material Recovery Facility in 2017-18 financial year. A new 6-kilometre pipeline to improve water supply to River Heads will run from the booster pump station near the intersection of Booral Road and River Heads Road to a reservoir near Cove Boulevard and will improve efficiency of the reticulation system and act as a back up to the existing water supply system.

Our Movement and Access

Air Services >

The Fraser Coast has effective transport and pedestrian pathway networks connecting the region.

Council will call for Expressions of Interest from businesses interested in setting up at the Maryborough Airport. Development is squeezing out smaller airfields in Brisbane and the Sunshine Coast while there is room and a willing workforce locally. There is great potential to develop an aviation sector and drive economic growth. The Maryborough Airport Master Plan identifies a number of locations within the airport precinct for businesses; aviation-based and nonaviation-based.

Road Networks >

Strategic traffic monitoring program funding application for Smart Cities was successful in relation to the strategic installation of permanent loop counters. The Strategic Traffic Monitoring Program is being developed to inform priority locations for installation of the integrated loop counters.

Fraser Coast Regional Council 2017-18 Annual Report

Public Transport > A new long distance coach stop in Lennox Street is set to replace the existing stop at Maryborough’s old railway station. Beautiful trees lining Lennox Street will improve the city’s CBD. Construction of the temporary stop opposite Woolworths commenced in April. The project, jointly funded between Council and the Department of Transport and Main Roads, includes a new 4.6 x 2 metre bus shelter and concrete specially designed for heavy vehicles. Council’s Building Services Team will complete the work over four weeks, weather permitting. There will be no impact to vehicular traffic as all work is occurring on the footpath. The Department of Transport and Main Roads and Council are jointly funding a planning study for a long-term transit facility in Maryborough. Minister for Transport and Main Roads Mark Bailey said the upgrade ensured improved accessibility for all members of the community. The coach stop plays a key role connecting Maryborough residents and allowing others to visit our region. The improvement work means passengers will be able to enjoy more comfortable facilities.

Marine Services > A survey asked people to rate aspects of the current operation of marine facilities in Burrum Heads and identify potential improvements for all users in the future. Burrum Heads is growing in popularity and new businesses are emerging which want to use the facilities so Council wants to make sure an Operational Plan is developed that meets the current and future needs of the area. > A new floating pontoon is proposed to replace the existing March Street Jetty and adjacent gangway, which are closed due to damage. The $1.1 million project is being funded by the Department of Transport and Main Road’s Marine Infrastructure Capital and Maintenance Program, through the collection of recreational vessel registration fees. It is intended that the proposed facility will be predominantly used by recreational vessels and that some limited commercial uses may also be permitted, subject to approval. The scope of works also includes demolition of the existing jetty and gangway.

Pedestrian and Cycle Movement > Work is set to start on the next stage of the Mary to Bay Rail Trail – a 3.5 kilometre section from Stockyard Creek to Piggford Lane. Council received $964,487 under the Queensland Government’s $200 million Works for Queensland Funding Program for the project. > The rebuilding the 2.5 metre pathway around the Ululah Lagoon in Maryborough allows for the widening and resurfacing of the pathway along Queen Street from the Queen/Neptune Streets corner to the entrance to the Maryborough Golf Club. The project was funded under the Queensland Government’s $200 million Works for Queensland Program. The cost of the completed Stages 1 and 2 was $620,000. Stages 3 and 4 are estimated to cost $1 million.

Fraser Coast Regional Council 2017-18 Annual Report

Our Places and Spaces

Create vibrant City Centres and Precincts >

A five year implementation plan for Maryborough Queen's Park Botanic Gardens was approved with $1 million in funding from the State Government for the Queen’s Park Military Trail Project. We commenced work on stage two of the Fraser Coast Military Trail ‘Gallipoli to Armistice’ in Maryborough. The project includes depictions of the cliffs of Gallipoli and events on the Western Front, a memorial commemorating the Battle of Pozieres, and the bronze statue of Duncan Chapman. It is expected to continue to draw a steady stream of visitors to the area. Maryborough is believed to be the first town in Queensland with different themed pedestrian crossing lights and the only place in the world with Mary Poppins themed lights. The lights form part of the Maryborough Story Trail – a trail of artworks and historic buildings and sites through the city. The lights have gained state, national and international media attention since being installed with the project shared by Disney through the Mary Poppins Facebook page.

Our Communities are vibrant hubs that welcome people to meet and interact.

Fraser Coast Regional Council 2017-18 Annual Report

Spaces for Everyone >

A playground overlooking the Mary River on the edge of Queens Park was fenced using Councillor Discretionary funds to install a 1.2 metre high fence and two self-locking safety gates. Construction of the Pialba Adventure Playground featuring 7.3 metre high sky towers, enclosed swing bridges and climbing nets was completed. The $900,000 playground was funded under the State Governmentâ&#x20AC;&#x2122;s Works for Queensland program. Two waterslides at the WetSide Water Park in Hervey Bay were installed. The $800,000 project was equally funded by Council and the state government, under the Local Government Grants and Subsidies Program.

A Region of Well-designed Cities and Townships >

Fraser Coast Regional Council 2017-18 Annual Report

Draft Parks Infrastructure and Enhancement plans for twelve parks and reserves were placed on public exhibition for residents to provide feedback. Once adopted they will guide the development to ensure resources are allocated in annual budgets. The parks are; Endeavour Way Park, Gilston Road Park, Traveston Park Burrum Heads, Alex Gillespie Park Torbanlea, Petersens Road Park, Woocoo Park and Memorial Park Tiaro; Hervey Bay Botanic Gardens, Anzac Park Maryborough, Urangan Precinct â&#x20AC;&#x201C; Foreshore Development, Pt Vernon Park (Sandy White Memorial Park). The Maryborough CBD Revitalisation Project was modelled on feedback and suggestions made by CBD businesses and property owners during consultation held in 2013 for the Imagine This City Project. Works undertaken as part of the completed revitalisation works included the following improvements:- New street furniture - bins, seats, artwork and bollards - Upgrading of existing traffic signals - Replacement of existing footpaths with exposed aggregate concrete; - Replacement of all kerb and channel to barrier kerb; - Full and part width asphalt overlay; - Areas of raised cobblestoned shared zones; - Pedestrian bollards and overhead lighting; and upgrading underground services.

Section 3: OUR COUNCILLORS

Fraser Coast Regional Council 2017-18 Annual Report

COUNCILLOR PROFILES Profile: I have been actively engaged in the Fraser Coast community for many years, including as the president of a charity that operates the region's youth homeless shelter. Before being elected to local government, I worked as a lawyer, a disability support worker and as a government adviser. Portfolio – Community, Heritage & Family Services Committee Membership: > Audit Committee (Observer) > Sister City Friendship City Committee Mayor – Cr George Seymour 16/5/2018 - Current Division 10 (to 14/5/2018)

Council Reference Groups: > Local Disaster Management Group > Fraser Coast Heritage Reference Group > Ted and Maud Mungomery Vine Forest Management Committee External Committees/Organisations: > Fraser Island World Heritage Community Advisory Committee > Wide Bay Regional Organisation of Councils First Elected: 2012

Profile: The major centres of Division 7 include Booral and River Heads. Over 6,000 residents are registered in this division, including those on heritage-listed Fraser Island. With a past background in retail with international business experience in the areas of small business, training and marketing in international markets, I have a strong focus on working with business and the community to deliver a whole of community benefit for the region. An active community volunteer I want the Fraser Coast to be the events capital of regional Queensland and am looking forward to partnering with the community to make this happen. Deputy Mayor – Cr Darren Everard

Committee Membership:

Division 7 Events and Recreation Portfolio

Council Reference Groups:

> Water & Waste Water Advisory Committee

External Committees/Organisations: > Wide Bay Regional Organisation of Councils Sport and Recreation Advisory Committee > Wide Bay Burnett Regional Organisation of Councils (observer) First Elected: 2012

Fraser Coast Regional Council 2017-18 Annual Report

Profile: Division 1 incorporates both coastal and rural areas of the Fraser Coast and is home to 6,343 residents. Some of those areas include Howard, Burrum Town, Torbanlea, Duckinwilla, Aldershot, Maryborough West, Oakhurst, Yengarie, Boompa, and Yerra. I own and operate a successful dairy farm at Boompa, and am married with five children. I am no stranger to local government, having served a term as Councillor on the former Woocoo Shire Council before amalgamation, and also the previous term on the Fraser Coast Regional Council during 2012 - 2016.

Cr James Hansen Division 1 Agriculture and Rural Infrastructure Portfolio

Committee Membership: > Audit Committee > Sister City Friendship City Committee (Observer) Council Reference Groups: > Community Environmental Advisory Group > Advancing Agriculture Advisory Group External Committees/Organisations: > Fraser Coast Inclusive Communities Action Team > Mary River Catchment Coordinating Committee > Rural Fire Brigades > Tiaro & District Landcare Group First Elected: 2012 Profile: More than 6,200 residents are located within the boundaries of Division 2 which is made up of 45 different suburbs and localities. This large, diverse area includes regional city living, beautiful country living and quaint unique townships. I am a longterm resident of Maryborough and former local small business owner. My previous professional career as a real property valuer required understanding and application of concepts in the areas of accounting, economics, town planning, land and compensation law and other related topics. These skills are applicable and useful in carrying out my duties as a Councillor. I also previously held the former position of State Member for Parliament and am passionate about giving a voice to our community.

Cr Anne Maddern Division 2 Small Communities Development Portfolio

Committee Membership: > Water & Waste Water Advisory Committee Council Reference Groups: > Advancing Agriculture Advisory Group > Fraser Coast Education Alliance External Committees/Organisations: > Mary River Catchment Coordinating Committee > Tiaro & District Landcare Group > Waste Technical Advisory Panel â&#x20AC;&#x201C; Dept. of Environment and Science â&#x20AC;&#x201C; established under section 173G of the Waste Reduction and Recycling Act 2011 First Elected: 2016

Fraser Coast Regional Council 2017-18 Annual Report

Profile: With more than 6,500 residents, Division 3 is the most densely populated electorate of the Fraser Coast Regional Council. The boundary stretches from the Bruce Highway in the west to the Mary River in the south and to Saltwater Creek in the north. Division 3 holds some iconic local landmarks including the Maryborough Airport, the Original Maryborough Site, ANZAC Park (Ululah) and the Maryborough Hospital. I am a fifth generation local to Maryborough and have had years of multilevel government experience as well as in private business. I am incredibly passionate about Maryborough and the Fraser Coast and the opportunities available in the region. Cr Paul Truscott Division 3 Innovation, Aviation and Communication

Committee Membership: > Fraser Coast Advancing Aviation Advisory Group > Sister City/Friendship City Committee Council Reference Groups: > Fraser Coast Heritage Committee (observer) External Committees/Organisations: > Maryborough & District Committee on the Ageing Inc. First Elected: 2016 Profile: Division 4 is home to more than 6,000 Fraser Coast residents. As well as incorporating parts of Maryborough, the boundary extends east including parts of Poona National Park and the Great Sandy Straits Conservation Area. I was born and bred in Maryborough and am an executive member of the Maryborough and Hervey Bay Chambers of Commerce. I am firmly dedicated to realising a vibrant, prosperous future for our region for all members of our community, particularly the youth.

Cr Daniel Sanderson Division 4 Education, Training and City Precinct Development Portfolio

I am committed to serving the community and making this region a great place to visit, live, work, learn and invest. Todayâ&#x20AC;&#x2122;s vision is tomorrowâ&#x20AC;&#x2122;s future and I strive to lead with a vision that will deliver a region our community is proud of. Committee Membership: Council Reference Groups: External Committees/Organisations: > Fraser Coast Education Alliance > Hervey Bay Chamber of Commerce > Maryborough Chamber of Commerce > Study Fraser Coast > Maryborough CBD Street Party Advisory Committee First Elected: 2012

Fraser Coast Regional Council 2017-18 Annual Report

Profile: Division 5 is one of Fraser Coast Regional Council's largest electorates, with a population of more than 6,500 residents. The boundary stretches from Nikenbah to Burrum Heads, incorporating a number of emerging coastal centres including Craignish, Dundowran Beach and Toogoom. As a Fraser Coast Councillor, I bring 35 years of corporate and small business experience, and over 30 years of voluntary firefighting. I am a 16 year resident of the Fraser Coast and Division 5.

Cr Rolf Light

Committee Membership: > Local Disaster Management Group (Chair) > Finance Committee

Division 5 Finance & Disaster Management Portfolio

Council Reference Groups: > Rates Reference Group External Committees/Organisations: > Rural Fire Brigades First Elected: 2012

Profile: Although it is one of the smaller divisions of the Fraser Coast Regional Council, Division 6 is one of the most densely populated with more than 6,500 residents. I have lived in Hervey Bay since 1976, and am a lawyer and was a principal of a local firm of solicitors for many years. I have also served as a Member of the Queensland Civil and Administrative Tribunal. I have a long involvement in community and cultural organisations and am a keen sailor. My wife Susan was a Councillor on the Hervey Bay City Council in the 1990s. We have two adult children."

Cr David Lewis Division 6 Culture, Arts and Environment Portfolio

Committee Membership: > Audit Committee > Sister City / Friendship City Committee > Fraser Coast Heritage Committee Council Reference Groups: > Community Environmental Advisory Group External Committees/Organisations: First Elected: 2016

Fraser Coast Regional Council 2017-18 Annual Report

Profile: Division 8 boasts large areas of prime development land with significant health, retail and education infrastructure. The boundary stretches from Susan River to Eli Waters, incorporating Bunya Creek. I have lived in the Fraser Coast all of my life. While I grew up in Bauple and have a farming background. My first job was an apprentice at Walkers Ltd. While at Walkers I studied drafting and left to establish my own building design business.

Cr Denis Chapman Division 8 Planning and Infrastructure Portfolio

In 2001 I was awarded Centenary of Federation Medal by the Governor of Queensland, in 2003 I was recipient of the Fraser Coast Citizen of the Year for service to the Community through Apex. I am a life-member of Apex and have a strong commitment to building a better community for future generations. Committee Membership: > Fraser Coast Inclusive Communities Action Team (observer) > Fraser Coast Regional Traffic Advisory Committee Council Reference Groups: External Committees/Organisations: > Wide Bay Burnett Regional Roads Group > Wide Bay Regional Planning Advisory Committee First Elected: 2016

Profile: Division 9 is located in Hervey Bay and includes Scarness and sections of Torquay, Pialba and Kawungan. It has a high representation of business premises, tourism hotspots, short-term accommodation and suburban dwellings. The division includes Seafront Oval, Scarness and Torquay Esplanade parklands, Apex Park and beach areas. My previous experience includes employment as a police officer, police prosecutor and community-based police officer. I also have experience in tourism and employment/training sectors. Committee Membership: Cr Stuart Taylor

Council Reference Groups:

Division 9 Tourism and Governance Portfolio

External Committees/Organisations: First Elected: 2012

Fraser Coast Regional Council 2017-18 Annual Report

Profile: Chris Loft served as Mayor for the period 01 July 2017 to 16 February 2018

Mayor 1/07/2017 â&#x20AC;&#x201C; 16/02/2018 Cr Chris Loft

Fraser Coast Regional Council 2017-18 Annual Report

Councillor Reporting Requirements Councillor Remuneration and Expenses

Fraser Coast Mayor and Councillors were remunerated in accordance with the maximum remuneration rates published by the Local Government Remuneration and Discipline Tribunal. Superannuation Contributions were paid at a rate of 12% of a Councillor’s Base remuneration. The table below sets out the remuneration paid to Fraser Coast Councillors for the period 1 July 2017 to 30 June 2018; Councillor Remuneration Superannuation Cr George Seymour 103,353 12,402 Cr James Hansen 78,354 9,403 Cr Anne Maddern 85,962 10,316 Cr Paul Truscott 85,962 10,316 Cr Daniel Sanderson 85,962 10,316 Cr Rolf Light 85,962 10,316 Cr David Lewis 85,962 10,316  Cr Darren Everard 86,999 10,440 Cr Denis Chapman 85,962 10,316 Cr Stuart Taylor 85,962 10,316 Cr Chris Loft 96,611 11,593 Total $967,051 $116,050  Includes Deputy Mayor Allowance  Includes time as Deputy Mayor and as Mayor  Mayor

Expense 17,449 18,856 13,315 16,131 17,511 12,796 12,354 11,872 8,693 20,958 19,191 $169,126

Total $133,204 $106,613 $109,593 $112,919 $113,789 $109,074 $108,632 $109,311 $104,971 $117,236 $127,395 $1,252,737

Councillor Expenses Reimbursement Policy Pursuant to Section 186(b) of the Local Government Regulation 2012, Councillors were provided with electronic equipment to enable them to perform their duties. Resources included a Laptop/iPad, printer, and Smart Phone. Expenses were incurred for vehicle usage, conference registrations, accommodation, meals, travel expenses and telecommunications totalling $169,126 for the financial year. The Councillor Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy was last reviewed and amended by Council at a Special Meeting held on 27 June 2018. SPEC 3.3.8

Expenses Reimbursement Policy

RESOLUTION (Seymour/Lewis) That pursuant to section 250 of the Local Government Regulation 2012, Council adopts the Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy as detailed in Attachment 1. DOCS#3580262 – 2018/19 Budget Supporting Policies.pdf (pages 60-69 inclusive). Carried Unanimously

Fraser Coast Regional Council 2017-18 Annual Report

Council Meetings

Cr James Hansen

Cr Anne Maddern

Cr Paul Truscott

Cr Daniel Sanderson

Cr Rolf Light

Cr David Lewis

Cr Darren Everard

Cr Denis Chapman

Cr Stuart Taylor

Cr Chris Loft

Total Number of Meetings Attended

Cr George Seymour

Section 186(c) requires Council to disclose the number of government meetings each Councillor attended during the financial year. Fourteen Ordinary Meetings and Seven Special Meetings were held during the period. Following is a table of Meeting Attendance by Councillors for the period 1 July 2017 to 20 June 2018;

Councillors’ Attendance at Conferences and Industry Events Councillors attended the following Conferences / Industry Events during the 2017-18 financial year: Conference/ Industry Event UQ Executive Education QTC Workshop Manager Conflict Training Diploma of Local Government QTC Regional Airports Information Workshop Safer Cities Summit 2018 Tourism Leaders Program – Drellabe Pty Ltd Communication Conference Civic Leaders Summit 2018 K’Gari Fraser Island Symposium 2018 Development Northern Australia Conference Clariden Global International Limited – 2nd ANZ Disaster Management and Emergency Management Forum 2018 Future Cities Smart Communities Summit 2018 Pharos – Tourism Leaders Program 2018 LGA Annual Conference October 2017 National General Assembly Canberra

No. of Councillors 2 1 1 1 2 1 1 2 1 1 1 2 1 2 2

Fraser Coast Regional Council 2017-18 Annual Report

Conduct and Performance of Councillors To ensure appropriate standards of conduct and performance are maintained by Councillors, a code of conduct has been adopted. The Code of Conduct for Councillors sets out the standards of behaviours expected of Councillors of Fraser Coast Regional Council. The table below provides information about complaints received regarding the performance or conduct of Councillors in accordance with the requirements of Section 186(d), (e) and (f) of the Regulation. Section of Local Government Act 2009 176C(2)

Type of order/complaint

Number

Complaints about a Councillor conduct or performance for which no action was taken.

176c(3)(a)(i)

Complaints referred to the department’s Chief Executive Officer about inappropriate conduct by the Mayor or Deputy Mayor.

176(3)(a)(ii) or (b)(i)

Complaints referred to the Mayor about inappropriate conduct by a Councillor other than the Mayor or Deputy Mayor.

176C(4)(a)

Complaints about misconduct referred to the department’s Chief Executive Officer.

176C(4)(b)

Complaints about misconduct referred to the department’s Chief Executive Officer.

Complaints about misconduct heard by the Tribunal.

176C(5)

Complaints assessed by the Chief Executive Officer as being about corrupt conduct under the Crime and Corruption Act 2001.

176C(6)

Complaints about another matter.

180(2) and (4)

Orders and recommendations made about misconduct.

181

Orders made about inappropriate conduct.

Fraser Coast Regional Council 2017-18 Annual Report

Councillors for whom an order was made under section 180 and 181 of the Local Government Act 2009 Councillor Cr Denis Chapman

Description of the Misconduct/of Inappropriate Conduct Removed a parcel addressed to another Councillor from their mailbox, photographed the contents and then sent these photographs to another Councillor.

Summary of the Order The Local Government Regional Conduct Review Panel made the following orders: Allegation 1 ‐ An order that the Councillor be counselled about the misconduct, and how not to repeat the misconduct. ‐ An order that the Councillor make an admission of error or an apology to the next council meeting. Allegation 2 ‐ An order that the Councillor make an admission of error or an apology to the next council meeting. ‐ A recommendation to the Department's chief executive officer to monitor the Councillor for compliance with the Local Government Act (particularly s 176(3) and s 4). ‐ An order that the Councillor pay to the local government an amount of 10 penalty units with 50 percent of this amount to be paid on or before 30 July 2018 and the balance to be paid on or before 31 December 2018.

Cr Chris Loft

Allegation 3 ‐ An order that the Councillor be counselled about the misconduct, and how not to repeat the misconduct. ‐ An order that the Councillor make an error of admission or an apology to the next council meeting. 1. Has received three orders The Regional Conduct Review Panel orders that Cr reprimanding him for inappropriate Loft be counselled about his misconduct and how conduct within the one year (5/12/2016, not to repeat the misconduct and that such 28/03/2017 and 8/9/2017). counselling be provided as part of the ongoing counselling currently underway with the 2. Has received three orders Department. This counselling should specifically reprimanding him for inappropriate conduct within the one year (28/03/2017, address how Cr Loft can fulfil the responsibilities of his role without breaching the Code of Conduct. 8/9/2017 and 27/09/2017). 3. Misrepresented the Director‐General's views to the Councillors. Publicly criticising the previous CEO The Director General issued two orders 1. between January and March 2016. Reprimand 2. Any repeat of the inappropriate conduct, that being public criticism of employees of the council, be referred to the Local Government Remuneration and Discipline Tribunal as misconduct. Made comments about previous CEO No further action be taken in relation to the expenditure of funds in relation to the complaint. sports precinct in April/May 2017.

Fraser Coast Regional Council 2017-18 Annual Report

Councillor Cr Chris Loft Cr Chris Loft

Cr Chris Loft

Description of the Misconduct of Inappropriate Conduct Made inappropriate and offensive comments to a Councillor in a briefing session in February 2017. Spoke on radio and criticised a number of Councillors in November 2016. Did not comply with the Public Interest Disclosure Policy in December 2016. Made provocative and offensive statements about the previous CEO. Publicly denigrating fellow Councillors in an open letter dated 28 November 2016. Statements made to local media on two occasions (3/11/2016 and 1/12/2016) critical of Council's then CEO Lisa Desmond.

Cr Chris Loft

Email to local media critical of Council report and Council staff.

Cr Chris Loft

Disclosed to external parties confidential information concerning the CEO employment contract.

Cr Chris Loft

Repeated Inappropriate conduct (3 orders made within a year) which is taken to be misconduct.

Cr Chris Loft

Release of private information relating to Councillors and CEO.

Fraser Coast Regional Council 2017-18 Annual Report

Summary of the Order No further action be taken in relation to the complaint. The Director General issued two orders: 1. Reprimand 2. Any repeat of the inappropriate conduct of this nature will be referred to the Local Government Remuneration and Discipline Tribunal as misconduct. No further action be taken in relation to the complaints as previous orders have been made. The Director General issued two orders 1. Reprimand 2. Any repeat of the inappropriate conduct of this nature will be referred to the Regional Conduct Review Panel as misconduct. The Director General issued two orders: 1. Reprimand 2. Any repeat of the inappropriate conduct of this nature will be referred to the Regional Conduct Review Panel as misconduct. The Tribunal orders: 1. That Cr Loft pay a monetary penalty of $1,000. 2. That Cr Loft make a public apology for his misconduct at the next open meeting of Council he attends. The Panel orders: 1. That Cr Loft be counselled on misconduct for a period of up to 6 Months. 2. That Cr Loft make a public apology for his misconduct at the next open meeting of Council. 3. That Cr Loft pay a monetary penalty of $1,500 to the Council within three months of date of the order (by 26 October 2017). Reprimand

Section 4: OUR PEOPLE

Fraser Coast Regional Council 2017-18 Annual Report

Executive Leadership Team Ken Diehm, Chief Executive Officer Ken has more than 31 Years of Local Government experience and commenced with Council on Monday, 19 June, 2017. Ken’s Experience includes a wide range of Management positions in both the financial management and infrastructure fields, as well as executive roles which include the CEO of the City of Greater Geraldton, CEO of Willows Sports Complex Joint Board, Managing Director of a Business National, CEO of NQ Water, and Director of Townsville Water and Waste Services. Ken has been a past Board member and Treasurer of both Regional Capitals Australia and the Western Australia Regional Capital Alliance, a former Board member of the Local Government Managers Association Australia WA, an Advisory Board member of the University of Western Australia’s Centre for Regional Development, and Deputy President of the Australian Chinese Business Council Midwest Branch WA. Ken is the current President of the Urangan State High School Council and Director of Fraser Coast Tourism and Events. Ken has a bachelor of Commerce Degree, a Master’s Degree in Business Administration, a Master’s Degree in Dispute Resolution, a Graduate Diploma from the Australian Institute of Company Directors, a Certificate IV in Real Estate Agency Practice, and is a Prince2 Certified Project Management Practitioner. Ken’s personal and career goal is to make a positive difference in the community he serves and in the lives of the people he works with.

Peter Care, Director – Wide Bay Water & Waste Services Wide Bay Water and Waste Services is responsible for providing water, sewerage and waste management services to all households and business across the Fraser Coast Region. Peter has more than 30 years of experience in the Australasian water industry and has been involved in the planning, design, construction, operation and maintenance of several innovative water and wastewater infrastructure projects. Peter is a member of the Australian Institute of Company Directors and sits on a number of water industry groups within Australia.

Fraser Coast Regional Council 2017-18 Annual Report

Toni Averay, Director – Development and Community Previously from Liverpool City Council Toni has 20 years management experience in local government in Queensland and New South Wales. Toni has a Master’s Degree in Public Administration, a Bachelor of Arts degree, a Graduate Diploma in Education, a Graduate Diploma in Industrial Relations, is a graduate of the Australian Institute of Company Directors, completed the Local Government Managers Australia Executive Management course and is a qualified justice of the Peace in Queensland

Keith Parsons, Director – Organisational Services Organisational Services is responsible for providing a smart, sustainable and customerfocused organisation, through a highly skilled and motivated workforce. Through the areas of Organisational Development & Culture, Governance & Customer Service, Information Management, Property & Commercial Services, Projects & Asset Management, Financial Services and Procurement this vision is achieved Keith Parsons has a Bachelor of Business degree and has more than 15 years’ experience in local government. In addition to Keith’s experience in Organisational Services, Keith held the position of Director Water and Waste for four years overseeing the development and operation of these commercialised business units at Townsville City council. Prior to moving to local government, Keith has extensive experience in both the Retail and Distribution aspects of the Electricity industry in Queensland.

Davendra Naidu, Director – Infrastructure Services The Infrastructure Services Directorate is responsible for the planning, design, construction and maintenance of road, drainage and other infrastructure projects to meet the requirements of a rapidly developing region. Davendra Naidu holds a Master of Engineering Management, Bachelor of Engineering (Civil), and Diploma in Civil Engineering & Construction. Davendra has 20 years’ experience in Civil/Structural engineering and has worked in local government for the last 15 years including 6 years as Deputy Director of the former Maryborough City Council's Department of Engineering.

Fraser Coast Regional Council 2017-18 Annual Report

Senior Executive Remuneration Pursuant to Section 201(1)(a) of the Local Government Act 2009, the total of all remuneration packages payable to the senior management of Council, including the Chief Executive Officer and employees whose position ordinarily would be considered to be a senior position in the local governmentâ&#x20AC;&#x2122;s corporate structure for the 2017-18 financial year was $1,622,600. Pursuant to Section 201(1)(b)(2)(3)(4) of the Local Government Act 2009, following is the number of employees in senior management who were paid each band of remuneration: Remuneration Value Range $200,001 to $300,000 $300,001 to $400,000 $400,001 to $500,000

Number of Senior Executives 3 1 1

Senior Management Remuneration Package includes salary payable, superannuation at 12% and motor vehicle provision.

Organisational Structure CHIEF EXECUTIVE OFFICER

DIRECTOR DEVELOPMENT AND COMMUNITY

DIRECTOR INFRASTRUCTURE SERVICES

DIRECTOR ORGANISATIONAL SERVICES

DIRECTOR WIDE BAY WATER AND WASTE SERVICES

Planning & Growth

Infrastructure Planning

Property & Commercial Services

Operations

Regulatory Services

Operations

Financial Services

Engineering

Community & Economy

Capital Delivery

Information Services

Regulation & Waste Services

Open Space & Evironment

Engineering Services

Organisational Development & Culture

Governance & Customer Service

Corporate Project & Asset Management

Fraser Coast Regional Council 2017-18 Annual Report

Equal Employment Opportunity Program Fraser Coast Regional Council promoted equality of opportunity for all employees and potential employees by: raising commitment to and awareness of Equal Employment Opportunity (EE) principles, Developing best practice policies, procedures and guidelines; recognising that cultural diversity is an asset; utilising processes to ensure proper assessment of merit of applicants; and facilitating work/life balance. Staff are encouraged to complete the EEO form when they commence with Council and an option for anonymity is provided if they do not wish to disclose. The forms returned showed the following EEO identified groups: > Women: 298 > Men: 551 > Aboriginal & Torres Strait Islander: 22 > People with a Disability: 9 > Non English speaking background: 13

Age profile of staff Employee Age <20 21-30 31-40 41-50 51-60 61-70 71-80

Number of employees 40 116 147 259 228 57 2

Recognising years of Service In 2017-18, we recognised the following years of service: 0-9 years 508 10-19 years 211 20-29 years 73 30-39 years 22 40-50 years 5

Breakdown of Council Employment Types Apprentice ........................................... 6 Cadet ................................................... 1 Casual Employees ................................ 112 Fixed Term Period ............................... 45 Individual Flexibility Agreement .......... 18 Maximum Term Full Time ................... 14 Permanent Full Time ........................... 590 Permanent Part Time .......................... 33 Temporary Full Time ........................... 21 Temporary Part Time........................... 4 Trainee................................................. 5 Total..................................................... 849

Fraser Coast Regional Council 2017-18 Annual Report

Public Sector Ethics Pursuant to Section 23 of the Public Sector Ethics Act 1994:

Employeesâ&#x20AC;&#x2122; Code of Conduct

Fraser Coast Regional Council employees work under the principles and ethics of a Code of Conduct which outlines the four ethics values in accordance with the Public Sector Ethics Act 1994.

Education and Training

During the period of 1 July 2017 to 30 June 2018 Fraser Coast Regional Council employees were educated and trained on the Code of Conduct during induction of new employees and, for existing employee, refresher as required by oneon-one, Learning Seat eLearning program, intranet notification and intranet document portal.

Procedures and practices of public sector entities

Fraser Coast Regional Council administrative procedures and management practices have proper regard for the Public Sector Ethics Act 1994 and the Code of Conduct through the development of best practice policies, procedures and guidelines which outline and support the ethics obligations of employees in the public sector.

Organisational Reporting Requirements Beneficial enterprises

Section 41 of the Local Government Act 2009 requires that Local Governments list all beneficial enterprises conducted during the financial year. Following is a list of beneficial enterprises conducted by Council during the 2017-18 financial year: > Widelinx Pty Ltd; and > Fraser Coast Tourism and Events

Significant Business Activities

Section 45(a) and (b) requires that Local Governments list all business activities that have been conducted during the financial year and to identify its significant business activities. Pursuant to Section 45(a) of the Local Government Act 2009, following is a list of business activities conducted during the 2017-18 financial year: > Caravan Parks > Fraser Coast Airports; and > Brolga Theatre Pursuant to Section 45(b) of the Local Government Act 2009, following are business activities identified as Significant Business Activities: > Wide Bay Water; and > Fraser Coast Waste Section 45(c) requires Council to state whether the Code of Competitive Conduct was applied to business activities, and if not, the reason. Pursuant to Section 45(c) of the Local Government Act 2009, the competitive neutrality principle was applied to both Significant Business Activities: > Wide Bay Water; and > Fraser Coast Waste

Fraser Coast Regional Council 2017-18 Annual Report

Assets Recognition policy

Fraser Coast Regional Council’s Non-Current Asset Policy was reviewed and updated 23 May 2018. A Resolution was passed during the financial year at the Council meeting on the 23 May 2018 in relation to section 206(2) of the Local Government Regulation 2012 which deals with setting an amount for each different type of non-current physical asset below which the value of an asset of the same type must be treated as an expense. ORD 10.2.3

Non-Current Assets Policy Update

RESOLUTION (Maddern/Everard) 1. That Council approves the amended Non-Current Assets Policy (DOCS#3538160) attached to this report 2. That pursuant to Section 206 of the Local Government Regulation 2012, Council sets the amounts for each type of non-current physical asset below which the value of an asset of the same type must be treated as an expense as follows: Asset Class Land Held for Resale Land Biological Buildings and Other Structures Coastal Infrastructure Road & Bridge Network Infrastructure Stormwater Drainage Water Infrastructure Sewer Infrastructure Furniture and Office Equipment Intangibles Plant and Equipment Sub Asset Class (Furniture and Office Equip) Information Technology Network Taxation (WBW CBU Only Asset Class WBW Tax Only Non-Infrastructure Assets

Administrative Action Complaints

Recognition Threshold $1 (All Land) $1 (All Land) $1 $5,000 $1 $1 $1 $1 $1 $5,000 $5,000 $5,000 Recognition Threshold $500 Recognition Threshold $1,000 - $4,999 Carried Unanimously

Under section 187 of the Local Government Regulation 2012 a Local Government must include particular information relating to the complaints management process in the Local Governments annual report. This information is as follows: Council’s Complaints Management Process ensures that, to the greatest practicable extent, any complaint is dealt with fairly, promptly, professionally, in confidence (subject to any legal requirements) and in a manner respectful to the complainant. Council treats complaints seriously and has implemented a policy and procedure with Council’s endorsement. As per the policy, a complainant may lodge a complaint via written, electronic and verbal means. Pursuant to Section 187(2)(a) of the Local Government Regulation 2012: (i) 203 Administrative Action Complaints were received by Council (ii) 182 Administrative Action Complaints were resolved under the complaints management process; (iii) 21 Administrative Action Complaints were not resolved under the complaints management process. Pursuant to section 187(2)(b), 217 Administrative Action Complaints under Section 187(2)(a)(iii) were made in a previous financial year.

Fraser Coast Regional Council 2017-18 Annual Report

Overseas Travel

Section 188 of the Local Government Regulation 2012 requires Council to disclose information about the overseas travel of staff or Councillors during the financial year.

4th Sichuan International Travel Expo in Leshan

Councillor/Employee Chris Loft Denis Chapman Rolf Light Louise Knol

Position Councillor Councillor Councillor Executive Manager Economic Development

Cost to Council

Airfares: Insurance: Accommodation:

$5,218 $506 $1,454

Accommodation and in-country expenses for all delegates and one airfare will be covered by Leshan City and/or the Sichuan Organising Committee. Two interpreters accompanied Council and are included in the costs outlined above.

Expenditure on grants to Community Organisations

As stipulated by section 189(a) of the Local Government Regulation 2012, the following table outlines a summary of the funds supplied through community grants. Program Australia Day Anzac Day Community Christmas and New Year (Festive Fraser Coast) Community Grants â&#x20AC;&#x201C; Projects Community Grants - New Financial Assistance to Sportspersons Sport and Recreation Capital Infrastructure Fund TOTAL

Fraser Coast Regional Council 2017-18 Annual Report

Expenditure $9,515.00 $8,350.00 $13,781.00 $68,578.47 $86,284.80 $4,700.00 $1,057,019.48 $1,248,228.75

Councillors’ Discretionary Fund Expenditure Pursuant to Section 189(b) of the Local Government Regulation 2012, the annual report for a financial year must contain a summary of expenditure from each Councillor’s discretionary fund, including:

> The name of each community organisation to which an amount was allocated from the fund; and > The amount and purpose of the allocation Discretionary funding approved during the 2017-18 year included: > >

$1,100,000 for capital works for community purposes; and $550,000 for operational funding for community purposes

Total expenditure for capital works from discretionary funding during the reporting period was $779,223. Below is a table summarising the expenditure from each Councillors’ capital discretionary fund: Councillor Funded Cr James Hansen

Cr Anne Maddern

Cr Paul Truscott

Project Torbanlea Skate park: Concrete Path from Footpath Oakhurst Park: Skate Park Poona Community Centre: Play Equipment Shelter Total CCTV Surveillance: CCTV Glenwood Hall Footpaths Sth: Tinnanbar Boat Ramp Petrie Park: Remove Bollards/Reshape Parking Areas Tiaro Park: Play Equipment for Under 5’s Tuan Park: Slippery Slide Tiaro Park: Exercise Equipment Tinnanbar Park: Exercise Equipment Bauple Park: Exercise Equipment Total Brolga Theatre: Theatre Curtain Traffic Facility Sth: Mary Poppins Pedestrian Lights Ululah Park: Lighting & Paths Improvements MB Public Art: Ergon Power Boxes in CBD HB Airport: Eco Bins Queens Park: Fence around Playground Fay Smith Wetland Boardwalk Replacement PL Travers Story Bank MB Total

Amount Budgeted ($) $10,000 $85,000 $5,000 $9,500 $14,500 $19,500 $14,500 $11,500 $13,500 $8,500 $8,500 $12,500 $15,000 $17,500 $5,000 $5,000 $5,000 $10,000 $30,000

Amount Funded ($) $3,799 $81,752 $5,000 $90,551 $9,500 $14,500 $9,073 $10,972 $7,769 $13,500 $7,664 $8,369 $81,347 $12,500 $15,000 $6,248 $4,530 $5,000 $10,000 $30,000 $83,278

Fraser Coast Regional Council 2017-18 Annual Report

Councillors’ capital discretionary fund continued. Councillor Funded Cr Daniel Sanderson

Cr Rolf Light

Cr David Lewis

Cr Darren Everard

Cr Denis Chapman

Cr Stuart Taylor

Cr George Seymour

Cr Chris Loft

Project Brolga Theatre: Theatre Curtain Brendan Hansen Park: Solar Lights Ululah Park: Lighting around BBQ & Playground areas Brendan Hansen Park: Small Playground & BBQ Carparks Sth: Granville bus shelter Total CCTV Surveillance: CCTV Burrum Heads: Rotundas & Barbecue Infrastructure Carparks Sth: Burrum St (Burrum St/ Bushnell Road) Total Freedom Park: Tree Lighting MB Public Art: Small Communities Railway Mobility Corridor: Shelter, Table & Seats HB Regional Art Gallery: Design (Artist Workspace) HB Library: Indigenous Welcoming Space HB Aquatic Centre: Mural Car parking Nth: 36 Murphy St (Doctors) Total Seafront Oval: Parkour Style Park Oslove Park: Public Toilet HB Aquatic Centre: Solar Initiatives Total Dundathu Park: Timber Posts & Chain Wire Mesh Margaret Linn Park: Rotunda & Table & Charis Footpaths Nth: Margaret Linn Park Footbridge Mary Rail Trail – Solar Lighting (Urraween Rd to Christensen St) Total Scarness Park: Sun Lounges, Seating, Umbrella Tables Car parks Sth: Torquay Bus Stop Total Original MB Site: Interpretive Signage & Markers Lower Dayman Park: Play Equipment Bellert Park: Signage HB Aquatic Centre: Mural Water Quality Infrastructure: Dredging Anembo Lakes Total CCTV Surveillance: CCTV MB/HB Total

Fraser Coast Regional Council 2017-18 Annual Report

Amount Budgeted ($) $12,500 $10,000 $22,500

Amount Funded ($) $12,500 $9,715 -

$40,000 $15,000

$31,090 $15,000 $68,305 $19,100 $27,875 $30,000

$40,000 $30,000 $30,000

$8,000 $12,000 $10,000 $70,000

$76,975 $8,239 $10,000 $10,702 $2,568 $17,000 $48,509 $71 $65,204 $9,091 $75,367 $7,921 $12,000 $3,030 $70,000

$75,000

$92,951 $75,000

$15,000 $10,000 $10,000 $32,000 $12,000 $4,000 $17,000 $20,000 $70,000 $10,000

$25,000 $20,000 $26,000 $3,000 $4,000 $47,000 $100,000

$14,665 $89,665 $2,568 $2,568 $70,707 $70,707

Below is a table summarising the expenditure from each Councillor’s operational discretionary fund: Mayor – Cr George Seymour: 2017-18 Allocation - $50,000 Applicant Hervey Bay Men’s Shed Hervey Bay Orchid Society Inc.

Project

Conversion of ensuite toilet to disabled toilet Assist with running the Hervey bay Orchid and Garden Spectacular Unndennoo Kindergarten Purchase plaque for nurse, Hannah Williams and assist with catering costs for unveiling event Hervey Bay Neighbourhood To assist with the cost of organising the family Centre Inc. fun day in Queens Park in November 2017 to mark the 150th Anniversary of the arrival of the first South Sea Islanders brought to Maryborough and to facilitate a youth engagement project to recognise the unmarked graves of South Sea Islanders in Hervey Bay Football Queensland Wide Bay Ltd Assist with uniforms, equipment and training for Wide Bay Buccaneers to enter state level competitions in QPL and NPL Maryborough Players Inc. To assist with the costs of staging the world’s first performance of the original Mary Poppins story at the Brolga Theatre Hervey Bay Squash Incorporated Assist with running costs of Queensland Masters Squash Association sanctioned tournament on 27-28 January 2018 Queensland Country Women’s To assist with Engineers report and building Association Urangan Branch application fees to re‐roof the QCWA Urangan Progress Hall Maryborough State High School Assist funding for student exhibition entitled ‘Ignition’. Wide Bay Gymnastics Club Inc. Fund to purchase somersault belts Hervey Bay Neighbourhood Monies to assist with the Wandering Teapot Centre Zephyr Street Performance Arts Monies to assist with the purchase and Community Theatre Inc. replacement of staging curtains and tracking Wondunna Aboriginal To assist with payment for republication of the Corporation Butchulla-English Dictionary Hervey Bay Historical Village and To assist with the purchase of the shark display Museum originally part of the Vic Hislop Shark Display Queensland AIDS Council Services and provision of entertainment, lighting and security for Fraser Coast 2018 Pride Fair Day Event Funds Transfer Transfer of funds Readers and Writers festival 2017 Norma House Incorporated Funding to assist with art supplies

Amount Approved ($) $750

Amount Funded ($) $750

$500

$412

$10,000

$3,000

$20,000

$1,000

$3,000

$1,000

$997

$1,500

$2,500

$2,841

$1,000

$1,500

$2,539

$1,000 $51,000

$1,000 $53,539

Fraser Coast Regional Council 2017-18 Annual Report

Division 1 – Cr James Hansen: 2017-18 Allocation - $50,000 Applicant Friends of the Burrum River Systems Group Inc. Hervey Bay Men’s Shed Maryborough Street Machines & Rods Inc. Maryborough Creative Fabrics (sponsoring association – The Burrum and District Heritage Society Inc.) Community and Neighbourhood Support Service Inc. The Maryborough Mural project Charity Trust The Burrum and District Heritage Society Inc. Maryborough City Whistlestop Inc. Burrum District Miners Junior Rugby League Burrum District Community Men’s Shed Fraser Coast Regional Council on behalf of Maryborough CBD

Project Purchase of a defibrillator Assist with conversion of ensuite to disabled toilet Purchase a club marquee and feather flags to be used at club held community events Modernise printer, need laptop, sewing machines, cutting mats and craft accessories Contribution towards providing a transport service to assist the elderly, disabled and vulnerable residents with their medical appointments Cost to paint three murals on walls in the Maryborough CBD Assist building a full size coal Mine Poppet-Head (Pit Head) within the museum’s grounds Fitting of security system, steam engine training course for staff, transport of carriage for education and training To assist and fund the Annual Carnival at Torbanlea To assist with the purchase of a shed Voucher for raffle prize for Maryborough CBD

Fraser Coast Regional Council 2017-18 Annual Report

Amount Approved ($)

Amount Funded ($)

$2,825

$500

$5,000

$15,000

$10,000

$4,692

$1,230

$503

$250

$50,000

Division 2 – Cr Anne Maddern: 2017-18 Allocation - $50,000 Applicant Tinana State School Bauple Progress Association Inc. Burrum District Community Men’s Shed QCWA Gootchie Branch Lions Club of Tiaro & District Bauble Band Hall Inc. Bauple Progress Association Inc. Gundiah Memorial Hall Association Inc. Poona Community Progress Association Balfour Consulting Bauple Multi-section Scout Group Mount Bauple and District Historical Society Inc. Fraser Coast Regional Council on behalf of the Maryborough CBD Maaroom Ratepayers and Progress Association Inc. Rotary Club of Maryborough City Inc. QCWA Tiaro Branch Maryborough Small Schools Sports Association Hervey Bay Neighbourhood Centre Burrum District Community Men’s Shed

Project Catering for volunteers at Sustainability & STEAM Symposium on 6 September 2017 Purchase of projector with carry case and spare lamp Assist with the installation of an insulated ceiling in the kitchen/lounge area Paint the exterior of the QCWA Hall Children’s Christmas Party Assist with the replacement of chairs, the purchase of a commercial stove and upgrade of amenities. Purchase of Supplies for Bauple Community Xmas BBQ To Assist with providing an all abilities access to Gundiah Memorial Hall Assist with increasing the prize money for the Annual Christmas Lights Competition Consulting Fee for preparation of Independent report on RV opportunities in Bauple Assist with Costs of upcoming Christmas Tombola Cost of running a planning Day with Queensland Museum to include Howard and Brooweena Museums Raffle prize for Maryborough CBD Purchase of storage container Assist with the delivery of the RYDA Program to as many Year 10 an 11 Students in the region as possible Assist with funding for installation of air conditioners in the Tiaro Hall Funds to purchase new team sports shirts The Wandering Teapot – To assist with funds for the Business Plan Assist with the construction of a roof over the deck at the rear of Men’s Shed at Howard

Amount Approved ($)

Amount Funded ($)

$300

$790

$2,100

$5,182 $2,500

$5,000

$500

$2,134

$500

$6,050

$250

$1,023

$250

$4,700

$5,000

$6,585

$1,100

$5,000

$1,000

$49,964

Fraser Coast Regional Council 2017-18 Annual Report

Division 3 – Cr Paul Truscott: 2017-18 Allocation - $50,000 Applicant Maryborough Community Kindergarten West State School P & C Maryborough Special School St Helens State School P & C Sunbury State School P & C Football Queensland Wide Bay Ltd Unit Support Committee TS Maryborough Inc. Maryborough Excelsior City Band Inc. Victory Care Services Maryborough Hospital Auxiliary Maryborough Special School P & C Association Maryborough City Progress Association Inc. Maryborough & District Committee on the Ageing Fraser Coast Regional Council on behalf of the Maryborough CBD Wide Bay Swimming Association Inc. Maryborough Military Aviation Museum Association Inc. Rotary Club of Maryborough City Inc. Maryborough State High School P& C Association Maryborough City Church Maryborough Community Recreation Centre Bush Babyz Family Day Care Maryborough & District Committee of the Ageing Inc. Brothers Junior Rugby League

Project Fundraising support Art Show on 18 October 2017 Waste, recycling and composting education program St Helens State School Family Field Day (Fete) on 19 August 2017 School gala performance Assistance with uniforms, equipment and training for Wide Bay Buccaneers to enter State level competitions in QPL and NPL Assist purchase ceremonial swords for the Commanding Officer and Executive Officer of TS Maryborough ANC Assist with ongoing community activity by holding free regular monthly concerts in Queens Park, Maryborough Contribution towards concreting of area to rear of shed Purchase of fridge for storage of patient food and sanitary heritage bench seat for "Quiet Room" Assist purchase sweets to present as gifts to local nursing homes, the hospital and retirement villages Towards the costs associated with the running of "Welcome to the Burra" Purchase of dart board for use by senior citizens at the MadCota Centre Raffle prize for Maryborough CBD Pool hire for Wide Bay Championships on 9‐11 March 2018 Land surveying, land insurance and public liability insurance for aviation museum site Assist with delivery of RYDA Program to as many Year 10 and Year 11 students in the region McIndoe L ‐ Promotion for community event "FraserPop 2018" Assist with cost of organising a community event to launch Youth Week on the Fraser Coast To assist with funds towards a community mural to be painted on the recreation centre To assist with funds towards fort to be built for the children To assist with funds towards new and professional signage Assist with cost of repairing clubhouse by a qualified builder and repair of toilet facilities

Fraser Coast Regional Council 2017-18 Annual Report

Amount Approved ($)

Amount Funded ($)

$250

$250 $660

$250

$3,000

$2,500

$3,000

$11,000

$1,442

$250

$1,000

$373

$250

$2,500

$3,330

$2,000

$3,500

$3,000

$7,352

$500

$342

$3,000

$50,000

Division 4 â&#x20AC;&#x201C; Cr Daniel Sanderson: 2017-18 Allocation - $50,000 Applicant Fraser Coast Regional Council on behalf of the Maryborough CBD Rotary Club of Maryborough City Inc. Brothers Junior Rugby League Maryborough & District Committee on the Ageing Maryborough & District Committee on the Ageing Maryborough Chamber of Commerce Inc. Monies transferred from the Operational Councillor Discretionary Fund to the Capital Councillor Discretionary Fund - as resolved at Council meeting in May. Maryborough Chamber of Commerce Inc. Maryborough Community Recreation Centre

Project Raffle prize for Maryborough CBD Assist with the delivery of the RYDA Program to as many Year 10 and 11 students in the region as possible To assist with purchasing a security system To assist with monies towards the upgrade of gas installation To assist with the purchase of a new computer To assist with costs involved with the POP IN Street Party in Maryborough To assist with Small Playground equipment installed in Queen Street Rotary Park (corner of John Lane, Lennox and Queen Streets, Maryborough) To assist with the purchase of 20 water proof and held radios and a five year license security To assist with the purchase of a defibrillator

Amount Approved ($)

Amount Funded ($)

$250

$2,000

$3,000

$809

$2,500

$3,500

$20,000

$4,321

$1,995

$38,375

Fraser Coast Regional Council 2017-18 Annual Report

Division 5 â&#x20AC;&#x201C; Cr Rolf Light: 2017-18 Allocation - $50,000 Applicant Girl Guides Burrum Heads Burrum Heads Christian Community Church Burrum Heads Progress Association Burrum District Community Men's Shed Toogoom and District Community Assoc Inc. Community and Neighbourhood Support Services Inc. Burrum Heads Christian Community Church Toogoom and District Community Assoc Inc. Burrum Heads Christian Community Church Burrum Heads Progress Association Burrum District Community Menâ&#x20AC;&#x2122;s Shed Inc. Burrum Heads Progress Association Older Men Unlimited Hervey Bay Inc. Toogoom & District Community Association Inc. Hervey Bay Men's Shed Hervey Bay Men's Shed Hervey Bay Men's Shed Burrum District Community Men's Shed Inc Riding for the Disabled Association Inc Hervey Bay Toogoom and District Community Association Inc Burrum Head Christian Community Church Rotary Club of Maryborough City Inc.

Project Part installation costs of hot water system Purchase of television and laptop Replace data projector and screen with TV monitor Assist with the installation of an insulated ceiling in the kitchen/lounge area Tag & Test fee for 36 appliances @ $7 each Assist with purchase of equipment and furniture for hub Supply of kitchen benchtops and items for children's Mainly Music program Assist with purchase of craft and games activities for the Christmas Fair Purchase of filing cabinet, stationery and sound equipment Assist with purchase of Epson Projector, Ipad and AV Adaptor for the Ukulele Group To assist with the purchase of tools and improvements to the shed at Steley Street Howard To assist with applications for road closures for the Anzac Day Commemoration and March Assist with purchase of kitchen facilities and supplies Assist with replacement of existing fans for the hall, additional lighting and upgrade of emergency lighting exit signs To assist with the purchase of measuring equipment and various tools To assist with cost of having 3 phase power connected To assist with monies towards the payment of equipment in relation to water pump To assist with the purchase of materials and equipment for improvements to the shed To assist with monies towards rail trail, sponsoring a horse for a year and shelter shed To assist with funds towards the replacement of the amplifier and module for the speakers of the PA System To assist with funds towards the supply and install of an Accordion Door Assist with the delivery of the RYDA Program to as many Year 10 and Year 11 students in the region

Fraser Coast Regional Council 2017-18 Annual Report

Amount Approved ($) $1,295

Amount Funded ($) $1,295

$3,029

$1,498

$2,100

$252

$2,215

$2,295

$500

$1,765

$1,332

$2,000

$732

$659

$3,025

$500

$1,000

$2,143

$5,000

$2,000

$1,860

$1,500

$1,000

$37,699

Division 6 – Cr David Lewis: 2017-18 Allocation - $50,000 Applicant

Project

Gundiah Memorial Hall Association Inc. Hervey Bay State High School P& C Association Z‐Pac Theatre Inc. Fraser Coast Tourism and Events

Lighting and sound expenses for Gundiah's 4th annual Carols in the Country event Pay for hire of 20x 240lt bins from Council for the Annual Swap Meet Contribution towards installation of air‐conditioning Contribution towards Guy McLean Spectacular event on 27 January 2018 To assist with funds towards the Science and Engineering Challenge 2018 To assist with payment for republication for the Butchulla-English Dictionary To assist with the purchase of studio equipment To assist with funds to line the truck bay of the station so it can be used as a training/briefing room To assist with payment to replace existing signage on the outside building Assist with purchase of sand to finish sandpit at school

Rotary Club of Hervey Bay Wondunna Aboriginal Corporation Fraser Coast Community Radio Inc Brooweena District Rural Fire Brigade PCYC Hervey Bay Tiaro State School P & C Association Funds Transfer

Transfer of funds Readers and Writers Festival including Lines in the sand 2017

Division 7: Cr Darren Everard: 2017-18 Allocation - $50,000 Applicant Hervey Bay Archers Inc. Hervey Bay Woodcrafts Club Inc. Torquay Progress Association Inc. Hervey Bay Swimming Club Hervey Bay Rugby League Football Club Inc. Butchulla Aboriginal Corporation Rock Off Indoor Sports and Recreation Inc. Hervey Bay Triathlon Club Inc. Hervey Bay Motocross Club Hervey Bay Historical Village & Museum Maryborough Excelsior City Band Rotary Club of Hervey Bay City Inc Hervey Bay Girl Guides Hervey Bay Orchid Society Inc Hervey Bay Special School

Project Works to covered outdoor shooting area Part payment towards completion of Stage 1 of proposed club workshop extensions Feasibility study for proposed lagoon style pool at Bill Fraser Park and other associated works Hervey Bay Aquatic Centre hire fees for 6‐7 October 2017 Repair road entry to football grounds To help with the running of the Butchulla Native Title Determination Day Celebration Support to host a round of the Australian Skateboarding Community initiative Purchase a defibrillator to reduce the risk associated with running triathlon events Purchase of a new tank for club's water truck To assist with the purchase of the Shark display originally part of the Vic Hislop Shark Display To assist with the purchase of new uniforms To assist with monies toward the Science and Engineering Challenge To assist with monies towards the Jamboree To assist with costs for "Hervey Bay Spring Orchid and Garden Spectacular" Assist with cost of education program for waste, recycling and composting

Amount Approved ($)

Amount Funded ($)

$2,750

$590

$5,500

$10,000

$1,000

$2,109

$10,000

$8,000

$5,390

$990

$18,810

$46,328

$65,138

Amount Approved ($) $5,000

Amount Funded ($) $5,000

$5,000

$6,000

$1,502

$5,000

$500

$2,805

$2,995

$5,000

$1,000

$4,200

$500

$1,500

$500

$900

$42,402

Fraser Coast Regional Council 2017-18 Annual Report

Division 8 – Cr Denis Chapman: 2017-18 Allocation - $50,000 Applicant Marcus Legacy Legends of League The Maryborough Mural Charitable Trust Rotary Club Of Maryborough City Inc. Mount Bauple and District Historical Society Inc Mungar and District Equine Enthusiasts Xavier Catholic College Yarrilee State School TS Krait Australian Navy Cadets Hervey Bay State Emergency Service St James Lutheran College Cancer Council Queensland

Project Purchase of birthing bath at the Hervey Bay Hospital's Birthing Unit Assist with the cost of conducting the Legends of League charity event in November 2017 To pay for artist design and art work for a mural of the brumbies in the state forest Assistance for 2018 RYDA Program at Schools To assist with the purchase of a printer-photocopier To assist with the purchase of equipment To pay for the purchase of marquees To assist with the purchase of safety mats To assist with monies towards new lighting To assist with the purchase of equipment To assist with the purchase of galvanized steel soccer goals and accessories Wide bay Burnett - Australia’s biggest morning tea

Amount Approved ($)

Amount Funded ($)

$2,000

$3,500

$6,000

$5,000

$3,870

$5,000 $5,000 $4,147

$908

$5,000

$5,000 $49,296

Amount Approved ($)

Amount Funded ($)

$1,500

1,500

$6,000

$20,000

$6,818

$1,000

$4,585

$7,191

$2,907

$50,000

Division 9 – Cr Stuart Taylor: 2017-18 Allocation -$50,000 Applicant Church of Christ Hervey Bay Torquay Progress Association Inc. Fraser Coast Tourism and Events Hervey Bay Netball Association Hervey Bay Neighbourhood Centre Wide Bay Gymnastics Club Inc. Rally for A Cause Hervey Bay Australian Football & Cricket Club Inc.

Project To assist with advertising and promotion of WATOTO Children's Choir from Uganda Feasibility study for proposed lagoon style pool at Bill Fraser Park and other associated works Contribution towards Guy McLean Spectacular event on 27 January 2018 Assist with funding for the purchase of Portable LCD electronic scoreboard with stand To assist with purchasing materials for Community Rocks To fund the purchase of a balance beam 'soft touch' To assist with the purchase of UHF Radios and antennas, PA system, First Aid Kits and 2 x marquee Assist with purchase of team wear and travel expenses

Fraser Coast Regional Council 2017-18 Annual Report

Cr Chris Loft: 2017-18 Allocation - $50,000 Applicant Hervey Bay Men’s Shed Inc. Legends of League The Maryborough Mural Charitable Trust Bayside Transformations Rotary Club of Maryborough City Inc.

Project Conversion of ensuite toilet to disabled toilet Assist with the cos of conducting the Legends of League charity event in November 2017 Painting of four (4) Murals in Maryborough CBD Support for Christmas Festivities for residents and families Assis with the delivery of the RYDA Program to as many Year 10 and 11 students in the region

Amount Approved ($) $1,000

Amount Funded ($) $1,000

$3,500

$20,000

$300

$5,000

$29,800

Changes to Council Tenders Section 190(e) of the Local Government Regulation 2012 requires Council to advise the number of invitations to change tenders under section 228(7). The table below provides details of the changes that occurred in 2017-18. Contract No C00238

Contract Title Tiaro Elevated Tower Reservoir: Roof Replacement

Date Issued 4 May 2018

Details of Change Only one tender was received and post tender Vickers were asked to price a change in specification being the complete removal and replacement of the reservoir and this revised specification/price was what was accepted.

List of Council Registers Section 190(f) requires Council to provide a list of all the registers kept by the local government. • Register of Beneficial Enterprises • Register of Business Activities to which Competitive Neutrality Principles Apply • Register of Contracts • Register of Cost-Recovery Fees on Council • Register of Councillors’ Interests • Register of Delegations by CEO • Register of Local Laws • Register of Roads • Register of Assets • Testable Backflow Prevention Devices Register • Infrastructure Charges Register

Fraser Coast Regional Council 2017-18 Annual Report

Details of Special Rates and Charges

Pursuant to Section 190(1)(d)(i) of the Local Government Regulation 2012, there was no action taken for, and expenditure on, a service, facility or activity supplied by another Local Government under an agreement for conducting a joint government activity. Pursuant to Section 190 (1)(d)(ii) of the Local Government Regulation 2012, details of any action taken for, and expenditure on, a service, facility or activity for which Council levied special rates of charges for the 2017-18 financial year are as follows:

> Council Rural Fire Levy on rateable land not included in the Urban Fire Brigade area to raise funds for the purchase and maintenance of buildings, land and/or equipment for the rural brigades. The levy was based on the requirements of the brigades as set out in their budget and agreed to annually by Council.

Sanitary Conversion Charge on all rateable land in the town of Howard that had an existing nightsoil service as at 30 June 2003, to fund the cost of an alternative sewerage treatment system to those properties.

A special charge for the purposes of funding the costs to Council for a Kingfisher Parade, Toogoom revetment seawall aimed at protecting private properties and 20 metres of Esplanade on properties within the defined benefited area, charged at different levels according to the degree of benefit to which the owner of the land is deemed to derive.

Summary of Concessions for Rates and Charges Section 190(g) requires Council to provide a summary of all concessions for rates and charges grated during the financial year. In considering the application of concession under Section 190(1)(g) of the Local Government Regulation 2012, Fraser Coast Regional Council was guided by the principles of:

> Equity – ensuring the fair and consistent application of lawful granting of concessions, without bias, taking > > > > > > > >

account of all relevant considerations; Transparency – openness in the processes involved; Simplicity – making processes which are simple and cost effective to administer; Consistency – by treating ratepayers with similar circumstances in the same manner; Fiscal Responsibility – ensuring Council meets in budgetary responsibilities; Clarity – by providing meaningful information to enable ratepayers to clearly understand their responsibilities; Flexibility – responding where possible to unforeseen changes in the local economy and providing a range of payment options; Sustainability – revenue decisions support the financial strategies for the delivery of infrastructure and services identified in Council’s long term plan and corporate plan; and Compassion – having regard to individual’s circumstances, particularly if experiencing hardship.

In accordance with the above principles, Council developed policies in respect of the following: (a) Council recognises that certain classes of pensioners have contributed rates over a period of time and/or are restricted by a fixed income and should be afforded a concession in respect of rates and charges. The purpose of the concession is to support pensioners’ ability to reside in the Fraser Coast and provide some cost of living relief. Total expense was $2,218,252 for the period 1 July 2017 to 30 June 2018.

Fraser Coast Regional Council 2017-18 Annual Report

(b) Other concessions including assistance to recreation, sporting and community groups – Council recognises that there were organisations which operate for the general benefit of the community with limited financial resources including schools, churches, welfare, youth organisations, emergency services, aged care and sporting organisations. Such organisations may have received a concession on their rates and charges. Conservation areas rates rebate, Council provides a concession to responsible land owners who are responding to the growing impacts of climate change by preserving, restoring and protecting the natural environment. Council has also committed to providing assistance for the preservation, restoration and maintenance of properties of local heritage significance. These properties receive a Local Heritage Register Rebate. Total expense on other concessions was $995,976 for the period 1 July 2017 to 30 June 2018. (c) To encourage the prompt payment of rates and charges a 10% discount was allowed if all annual rates and charges were paid in 45 clear days after the issue of a rate notice and 7.5% discount was allowed if all water and sewerage charges were paid in 30 clear days after the issue of a water and sewerage notice. Total discount allowed was $12,513,658 for the period 1 July 2017 to 30 June 2018

Competitive Neutrality Complaints Section 190(i) and (j) of the Local Government Regulation 2012 requires Council to provide a summary of investigation notices for competitive neutrality complaints during the financial year. No Complaints in relation to competitive neutrality were received during the reporting period.

Audit Committee and Internal Audit Function As a large Local Government, The Fraser Coast Regional Council is required by section 105(2) of the Local Government Act 2009 to establish an Audit Committee. It is also require by section 105(1) to establish an effective internal audit function.

Audit Committee The Audit Committee operates independently of management and plays a key role in assisting Council to discharge its responsibilities for the efficient, effective, economical, and ethical use of ratepayers’ resources. The Committee does this by providing independent oversight of the Council’s Governance and internal control frameworks, financial reporting and compliance with relevant legislation. It is required by Local Government Regulation 211(1)(b) to examine: (i) The internal audit plan for each financial year; (ii) Reports of internal audit activity including any recommendations in the report and the actions to which the recommendations relate; (iii) A draft of the local government’s financial statements before the statements are certified and given to the auditor-general. (iv) The auditor-general’s audit report and auditor-general’s observation report about the local government’s financial statements for the preceding financial year.

Fraser Coast Regional Council 2017-18 Annual Report

Meetings In the period 1 July 2017 to 30 June 2018, the Audit Committee formally met on four occasions. Member attendance at meetings was as follows:

Cr Rolf Light Cr George Seymour Mr Michael Parkinson Mr Ron Richards Mr David Wardley2 Ms Alison D’Costa Cr Anne Maddern3

Meetings Attended 3 3 4 4 1 2 1

Possible Meetings 3 4 4 4 2 2 1

The meetings are open to interested Councillors and are attended by a range of staff In accordance with good practice, the Committee also meets in camera and privately with each of internal and external audit from time to time.

Governance The committee routinely assesses its own performance as part of a process of continual improvement. During the year the Committee examined its Charter and, as a consequence, made a number of recommendations to Council. The committee also considered and adjusted the Internal Audit Charter. 1

Cr Light resigned from the Audit Committee on 30 May

Mr Wardley’s term of appointment finished during the year and he was replaced by Ms D’Costa.

Cr Maddern Attended as proxy for Cr Seymour at the May 2017 Meeting

Work program The committee follows a formal work program to ensure that over the period of a year, all aspects of its responsibilities are addressed.

Financial Reporting The committee considered a range of accounting and reporting policies and reviewed the financial statements for 2016-17 before their submission to the Auditor-General. It also considered the financial statements the auditor’s report at the conclusion of the review by the Auditor-General and before their publication.

External Audit

Council is audited externally each year by the Queensland Audit Office (or their appointed contractors). For the 201718 financial year the annual external audit of Council’s financial statements was conducted by Deloitte Touche Tohmatsu.

Fraser Coast Regional Council 2017-18 Annual Report

Internal Audit Function

The Fraser Coast Regional Council continues to maintain an efficient and effective internal audit function, delivered by professional staff from the Internal Audit Unit within the Audit and Risk team. The Internal Audit Unit operates in accordance with the Internal Audit Policy and Charter, which is endorsed by the Audit Committee each year. The charter sets out the mandate, roles and responsibilities of the internal audit function. The role of the Internal Audit Unit function is to assist Council, the Audit Committee, the Chief Executive Officer and other levels of Management, to properly discharge their responsibilities and achieve sound managerial control over all Council activities. Audits provide independent advice and assurance to Council and management that policies, operations, systems and procedures meet appropriate standards of accountability, regulatory compliance, effectiveness, efficiency and propriety. The Internal Audit Unit applies a risk based approach to its planning and audit activities. Audit projects have been identified to assist with the management of risk, the improvement of processes and achievement of Councilâ&#x20AC;&#x2122;s corporate objectives and vision. Councilâ&#x20AC;&#x2122;s Audit Committee reviews, approves and then monitors performance against this plan at quarterly meetings. For the year ended 30 Jun 2018, reviews were undertaken across various departments of Council in accordance with the Internal Audit Plan. These reviews included activities in the following areas: > > > > > > > >

Labour Hire Agreements/Contractor Agreements; Master Vendor File; Tender Process Review; Coastal Asset Management; Waste Contractor Review; Super User Security Review; Financial Delegations; and Management of Playgrounds

Right to Information and Information Privacy

FCRC has a total of 51 applications for the financial year 2017-18. There were 28 Right to Information applications submitted under the Right to Information Act (2009) in the reporting period. Additionally there were 22 Information Privacy applications and on request to Amend Personal information under the Information Privacy Act 2009 during the same period. Three reviews were undertaken, one internal review that was upheld, two external reviews with one upheld and the results of the other pending.

Fraser Coast Regional Council 2017-18 Annual Report

Mayor’s Community Benefit Fund

The Mayor’s Community benefit fund is available to provide assistance or relief to people in the Community. The objects and purpose for which the fund is established are to:

> Respond to needs beneficial to the community; > Assist community organisations and groups in order to pursue charitable purposes and/or other activities > >

beneficial to the community; Emergency support situations, including essential food items, emergency accommodation and/or repairs for life threatening situations; and Do anything incidental or helpful to either of the above

Council is required to report on the total donations received and funds distributed, which is outlined below: for the 2017-18 year: Value of in Date Organisation Event Name Type kind support Maryborough West Scout Maryborough West Scout Group – 04/07/2017 Sponsorship $200.00 Group Soapbox Derby 26/07 Maryborough Masters Costs for Pool – Masters Games 23 17/07/2017 Sponsorship $591.00 Swimming Club Inc. September 2017 Maryborough Ministers Fundraiser ‘Chappies in Schools’ – 08/08/2017 Sponsorship $500.00 Fellowship (replacing Chaplaincy Dinner) Annual Awards Night – Caltex Best 17/08/2017 Urangan State High School Sponsorship $250.00 All Rounder Award Annual Awards Night – FCRC 17/08/2017 Aldridge State High School Sponsorship $100.00 Humanities Award Independent Fraser Coast Toy Run 26/10/2017 Independent Riders Pty Ltd Sponsorship $200.00 2017 Towards to Tiaro State School 21/11/2017 Tiaro State School Sponsorship $100.00 Awards Night – 29 Nov 2017 Towards to Apex Santa Fair 21/11/2017 Fraser Coast Apex Club Sponsorship $300.00 Maryborough 2017 05/12/2017 Bayside Transformations Towards Christmas Festivities 2017 Sponsorship $300.00 Burrum Heads Amateur Towards Annual Easter Fishing 25/01/2018 Sponsorship $500.00 Fishing Club Inc. Classic 2018 Towards performing at Australia Day 06/02/2018 Mansong QLD Sponsorship $400.00 Citizenship Ceremony 2018 Bega Valley Shire Council – Donation towards the Tathra Fire 22/03/2018 Donation $300.00 Mayoral Fund Victims School fundraising fete 31 August 16/03/2018 Howard State School Sponsorship $200.00 2018 Teebar Show & Sports Ass 11/06/2018 100 Years Celebration Cake Sponsorship $100.00 Inc. The Country Ramblers – Towards performing at Regular 11/06/2018 Sponsorship $250.00 Pohlmann B & Grover B Senior City Locations Towards Regional Galleries Annual 11/06/2018 Hervey Bay Art Society Sponsorship $300.00 Art Exhibition Hervey Bay Orchid Society Towards Annual Orchid and Garden 25/06/2018 Sponsorship $250.00 Inc. Spectacular 2018 Towards members attending the Bauple Scouts Jamboree 25/06/2018 twenty-fifth Australian Jamboree in Sponsorship $200.00 Fundraiser South Australia 2019 Maryborough BMX Club Towards 2018 Maryborough Classic 26/06/2018 Sponsorship $200.00 Inc. 9/10 June 2018 Donations Received - $0.00 Donations Granted - $5,241.00

Fraser Coast Regional Council 2017-18 Annual Report

Section 5: FINANCIAL REPORTS

Fraser Coast Regional Council 2017-18 Annual Report

Community Financial Report The Community Financial Report is a plain English summary of Council’s financial statements prepared in accordance with Section 179 of the Local Government Regulation 2012.

About Council’s end of year financial statements What you will find in the financial statement; The audited financial statements of Council set out the financial performance, financial positions, cash flows and the net wealth of Council for the financial year ended 30 June 2018.

About the management certificate The financial statements must be certified by both the Mayor and the Chief Executive Officer as presenting fairly Council’s financial results for the year, and are required to be adopted by Council, ensuring both responsibility for and ownership of the financial statements by management and elected representatives.

About the financial statements The financial statements incorporate four primary financial statements and accompanying notes. The statements assist in providing a high level picture of Council finances for the 2017-18 year. In addition, there are three ratios which must be reported by all local governments, for both the current year and a forecast for the next ten financial years. These ratios are measures of financial sustainability and the calculations are required to be audited.

> A Statement of Comprehensive Income A summary of Council’s financial performance for the year, listing both regular income and expenses and other comprehensive income which records items such as changes in the fair values of Council’s assets and investments.

> A Statement of Financial Position This is a snapshot of Council’s financial positions as at 30 June 2018 which includes its assets and liabilities.

> A Statement of Changes in Equity The overall change for the year (in dollars) of Council’s net worth.

> A Statement of Cash Flows Indicates where Council’s cash came from and where it was spent.

> Notes to the Financial Statements Provides greater detail to the four primary financial statements which is referenced by line numbers.

> Financial Sustainability Statements Special purpose statements reporting three financial sustainability measures: operating surplus ratio, asset sustainability ratio and net financial liabilities ratio as required by the Local Government Regulation 2012 and the Financial Management Sustainability Guideline 2013.

Fraser Coast Regional Council 2017-18 Annual Report

The purpose and relationship between the four key financial statements is set out in the diagram below.

Fraser Coast Regional Council 2017-18 Annual Report

About the auditor’s report Council’s financial statements are required to be audited by the Queensland Audit Office. The audits of many Queensland Councils are contracted to audit firms that specialise in Local Government. The auditor provides an audit report which gives an opinion on whether the financial statements present fairly Council’s financial performance and position.

An Overview of this year’s financial result and financial position Council’s Statement of Comprehensive Income (Profit and Loss) Revenue (in) less expenses (out) = Net result for the year The statement of comprehensive income includes ordinary revenues and expenses from the operating activities of Council and capital income and expenditure. Capital income and expenditure is money received or spent on assets and infrastructure items such as parks, roads, drains, coastal walls, water and sewerage infrastructure, land, buildings and plant and equipment. Capital income is usually sourced from grants, subsidies and developers contributions.

Council’s operating position reflects its ability to meet its day to day running costs from operating revenue. This includes the ability to fully fund the depreciation of assets. Council’s operating position is a surplus for the period ended 30 June 2018 of $8.91 million, compared to the 30 June 2017 surplus of $26.62 million.

Revenue Fraser Coast Regional Council aims to raise money in order to maintain the delivery of services during the current and future years. Council’s main source of revenue is rates and charges, which totalled $164.15 million or 79% of Council operating revenue for the financial year. The major sources of rates income include general rates, water access charges, water consumption charges and waste and sewerage disposal charges.

Where did the money come from? Council operating revenue

Operating expenditures are those required to run the day to day operations of Council, such as wages, maintenance costs, materials, depreciation and finance costs. The statement of comprehensive income also shows other comprehensive income which includes increases to Council’s asset revaluation surplus. Councils Result at a glance

Operating revenue Operating expenditure Net result before capital revenue Capital revenue Capital expenses Net Result

2018 $’000 208,298 199,388 8,910

2017 $’000 209,756 183,135 26,621

62,041 34,403 36,548

56,362 20,163 62,820

Rates, levies and charges

Interest revenue

Fees and charges

Other

Grants and subsidies

Fraser Coast Regional Council 2017-18 Annual Report

Council’s operating revenue at a glance

Rates, levies and charges Fees and charges Interest revenue Operating grants and subsidies Other income Total operating revenue

2018 $’000 164,148 19,877 7,607 8,358 8,308 208,298

Council’s operating expenditure at a glance 2017 $’000 163,990 20,157 7,439 11,366 6,804 209,756

2017 $’000 49,839 65,900 8,735 58,661 183,135

Council’s net worth

Expenses What expenses did Council have to meet – How was the money spent Council provides a wide range of services to the community covering development services, economic development, airports, tourism, recreation and sport, community and culture, infrastructure, health and environment, waste disposal and water and sewerage services.

How was the money spent? Council operating expenses

Employee Benefits

Finance costs

Materials and Services

Depreciation and amortisation

Employee benefits Materials and services Finance costs Depreciation and amortisation Total Operating Expenses

2018 $’000 54,751 77,958 7,916 58,763 199,388

The Statement of Financial Position shows what we own (assets), what we owe others (liabilities) and our net community worth (equity). Council’s net worth

Assets Less Liabilities Equity Represented by: Asset revaluation surplus Retained surplus Net community equity

2018 2017 $’000 $’000 2,680,578 2,569,227 154,594 166,427 2,525,984 2,402,800 635,725 549,089 1,890,259 1,853,711 2,525,984 2,402,800

Fraser Coast Regional Council 2017-18 Annual Report

Assets New infrastructure is acquired through Council investment and contributions by developers. Council takes ownership and responsibility for replacement of community assets built by the developers on completion of the development. These include roads, drainage, water and sewerage infrastructure and parklands. The values of community assets (property, plant and equipment) has increased by about $114.25 million due to the construction of Council’s infrastructure assets (Roads, Drainage, Water and Sewerage) and an increase in the assessed value of its assets following a review of the valuation of Council infrastructure assets.

Capital Works (investment in community infrastructure) Total gross capital additions to Council’s non-current assets during the period totalled $105.06 million (2017 $90.4 million). The majority of these were a result of the construction of new assets, funded from surplus funds, grants and subsidies, loans and cash reserves.

In addition, Council holds other short term assets including cash assets held in bank accounts and investments of $214.54 million (2017 $217.28 million). During the 2017/18 financial year, in order to maximise investment returns, Council had invested over $193 million in term deposits greater than 3 months (previously most of Council’s term deposits were over terms of less than 3 months). The cash held include funds Council is required to put aside for future projects such as replacement of roads, stormwater drainage, water and sewerage systems, in addition to funds raised for specific purposes (environment and disaster management).

Liabilities Council’s largest liability is its interest bearing loans with Queensland Treasury Corporation (QTC), which at 30 June 2018 was $107.18 million (2017 $123.51 million).

Road and drainage network

Land

Water infrastructure

Buildings and site improvements

Council undertakes a loan borrowing program to fund new major facilities that are constructed to service community needs. In the current financial year, Council did not borrow any money, but repaid $16.33 million. Affordability indicators show that Council continues to be able to service its debt position.

Other

Sewerage infrastructure

Plant and equipment

Equity This represents the net value of total community assets, i.e. what our community owns. Part of equity includes the cash held by Council, of which there are both external and internal restrictions on some of the cash it holds (e.g. developer contributions and for future capital works).

Fraser Coast Regional Council 2017-18 Annual Report

Financial sustainability measures

The three financial sustainability indicatior ratios can be explained as follows.

The financial sustainability of councils is now a cornerstone of the Local Government Act and across responsibility of individual Councils across Queensland.

> Operating surplus ratio

– indicates the extent to which revenues raised by Council (rates, fees and charges) cover operational expenses (employee, materials and services costs, depreciation and loan interest payments), which is then available for capital funding or other purposes.

Financial sustainability is defined as when a “Local Government is able to maintain its financial capital and infrastructure capital over the long term”. [source: Financial Management (Sustainability) Guideline 2013].

> Asset sustainability ratio

– is an approximation of the extent to which the infrastructure assets managed by a Local Government (roads, drainage, water and sewerage assets) are being replaced as they reach the end of their useful lives, so as not to create a burden on future ratepayers to have to replace assets in poor condition.

There are three financial sustainability indicators (in accordance with the Local Government Regulation 2012 and the Financial Management Sustainability Guideline 2013) that Council must prepare (calculations of which are required to be audited along with the financial statements), the results are shown below.

> Net financial liabilities ratio

– indicates the extent to which the net financial liabilities (mostly loan borrowings) of Council can be covered by its operating revenues (rates, fees and charges).

Financial sustainability indicator Operating surplus ratio

Asset sustainability ratio

Net financial liabilities ratio

How the measure is calculated Net result (excluding capital items) divided by total operating revenue (excluding capital items) Capital expenditure on the replacement of assets (renewals) divided by depreciation expense Total liabilities less current assets divided by total operating revenue (excluding capital items)

Target

2018

2017

0%-10%

4.28%

12.69%

Greater than 90%

71.86%

73.68%

Less than +60%

(50.35%)

(44.88%)

Fraser Coast Regional Council 2017-18 Annual Report

Financial management strategy Fraser Coast Regional Council is continuing its commitment to advance its forward financial planning processes. Council has developed a strategic Long Term Financial Plan (LTFP) which defines the high level financial policies, commitments and parameters that guide the development of service levels, rating and other income, expenditure and treasury management decisions. The strategic Long Term Financial Plan is a ten year rolling plan adopted each year with the annual budget. The key objective of the Strategic Long Term Financial Plan is:

To ensure the robustness of the Long Term Financial Plan, Council is focussed on addressing the following strategic issues:

Asset Management and infrastructure investment > Refine a fully integrated LTFP that incorporates > >

“To ensure that Council is financially sustainable in the short, medium and long term”

> Council is focused on delivering a Strategic Long Term Financial Plan that focuses on the long term financial sustainability of the region, as well as consideration of the needs of the community with regards to the delivery of services and facilities. All financial decisions are made in the context of long term financial sustainability, ensuring that the region remains prosperous into the future. They are guided by corporate polices, strategies and principles of effective financial management. Funding decisions are made having regard to intergenerational equity, so that those enjoying the benefit of assets and services provided by Council contribute to the funding of those assets and services. Assets and services that are consumed in the short term should also not place a financial burden on future generations. Further enhancement and integration of the Long Term Financial Plan and Asset Management Plans, will assist Council in meeting its strategic objectives through the delivery of efficient and effective essential community services and the provision of key infrastructure that meets community expectations.

> >

Funding strategy > Review level of service provision to the community in line with funding strategies;

> Deliver balanced or surplus operating position with affordable rate rises;

> Meet Council’s strategic objectives through delivery

> > > > >

Fraser Coast Regional Council 2017-18 Annual Report

the elements of financial sustainability and integrates with Asset Management Plans; Commit to a forward funding strategy that underpins the LTFP; Prioritising and a focus on asset renewal and replacement rather than new assets, taking into consideration future life cycle costs before investing in new infrastructure; Fund all capital renewals and replacements from operating cash flows and borrow only for new or upgrade capital projects with priority on assets that will provide a return whilst keeping borrowings within reasonable debt limits; Surplus funds directed to infrastructure investment or loan repayments; Undertake review of desired levels of services to ensure balance between community expectations and the region’s capacity to pay.

of efficient and effective essential community services and provision of key infrastructure to meet community expectations; Ensure LTFP remains financially sustainable in the delivery of core functions and services; Commit to reviewing and setting fees and charges based on underlying cost of providing services and on principle of full cost recovery; Investigate alternative revenue stream opportunities; Commit to intensive continuous improvement program and service level review to identify efficiency and productivity gains; Regularly review the organisational structure to align resources with service delivery priorities.

Fraser Coast Regional Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2018

Fraser Coast Regional Council 2017-18 Annual Report

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Fraser Coast Regional Council General purpose financial statements for the year ended 30 June 2018

Contents

Page

1. Primary financial statements: - Statement of Comprehensive Income - Statement of Financial Position - Statement of Changes in Equity - Statement of Cash Flows

67 68 69 70

2. Notes to the financial statements

3. Management Certificate

112

4. Independent Auditor's report

113

Overview (i)

These financial statements are general purpose financial statements and cover the operations for Fraser Coast Regional Council.

(ii) All figures presented in these financial statements are presented in Australian currency. (iii) These financial statements were authorised for issue by Council on 05/10/18.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Statement of Comprehensive Income for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Income Revenue Recurrent revenue Rates, levies and charges Fees and charges Rental income Interest revenue Sales revenue Other income Grants, subsidies, contributions and donations

3(a) 3(b)

164,148 19,877 1,035 7,607 4,029 3,244 8,358 208,298

163,990 20,157 968 7,439 2,774 3,062 11,366 209,756

45,681 16,360

48,675 7,687

62,041

56,362

270,339

266,118

6 7 8 9

54,751 77,958 7,916 58,763 199,388

49,839 65,900 8,735 58,661 183,135

34,403

20,163

233,791

203,298

36,548

62,820

86,636 86,636

4,324 4,324

123,184

67,144

3(c) 3(d) 4(a)

Total recurrent revenue Capital revenue Grants, subsidies, contributions and donations Other capital income

4(b) 5

Total capital revenue Total income

Expenses Recurrent expenses Employee benefits Materials and services Finance costs Depreciation and amortisation

Total recurrent expenses Capital expenses

Total expenses

Net result Other comprehensive income for the year Items that will not be reclassified subsequently to net result

Increase in asset revaluation surplus

Total other comprehensive income for the year

Total comprehensive income for the year

The above statement should be read in conjunction with the accompanying notes and significant accounting policies.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Statement of Financial Position as at 30 June 2018 Notes

2018 $'000

2017 $'000

Assets Current assets Cash and cash equivalents Investments Trade and other receivables Inventories Total current assets Non-current assets Land held for development and resale Investment in controlled entities Property, plant and equipment Intangible assets Biological assets Total non-current assets Total assets

11(a) 11(b) 12

21,533 193,006 43,561 1,382 259,482

217,281 42,093 1,191 260,565

13 14 15

5,518 2,414,068 770 740 2,421,096 2,680,578

6,102 1,356 2,299,810 696 698 2,308,662 2,569,227

16 17 18

23,604 17,382 5,307 1,193 47,486

20,338 16,585 5,825 945 43,693

17 18

89,798 17,310 107,108

106,928 15,806 122,734

154,594

166,427

2,525,984

2,402,800

635,725 1,890,259 2,525,984

549,089 1,853,711 2,402,800

Liabilities Current liabilities Trade and other payables Borrowings Provisions Other liabilities Total current liabilities Non-current liabilities Borrowings Provisions Total non-current liabilities Total liabilities

Net community assets Community equity Asset revaluation surplus Retained surplus

Total community equity

The above statement should be read in conjunction with the accompanying notes and significant accounting policies.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Statement of Changes in Equity for the year ended 30 June 2018

Note

Asset revaluation surplus $'000

Retained surplus $'000

Total equity $'000

2018

Balance as at 1 July 2017 Net result Other comprehensive income - increase in asset revaluation surplus

Total comprehensive income Balance as at 30 June 2018

549,089 -

1,853,711 36,548

2,402,800 36,548

86,636 86,636

36,548

86,636 123,184

635,725

1,890,259

2,525,984

544,765 -

1,780,837 62,820

2,325,602 62,820

4,324 4,324

10,054 72,874

4,324 10,054 77,198

549,089

1,853,711

2,402,800

2017

Balance as at 1 July 2016 Net result Other comprehensive income Increase in asset revaluation surplus Gain on Wide Bay Water Corporation transition

Total comprehensive income Balance as at 30 June 2017

19 30

The above statement should be read in conjunction with the accompanying notes and significant accounting policies.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Statement of Cash Flows for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Cash flows from operating activities Receipts from customers Payments to suppliers and employees

188,082 (133,882) 54,200

183,165 (112,016) 71,149

4,860 1,101 8,389 8,625 (7,633)

7,288 427 11,427 7,160 (7,732)

69,542

89,719

11(b)

525 1,659 33,152 (193,006) (92,553) 1,418 (152)

1,285 35,446 (88,643) (467)

(248,957)

(52,379)

(16,333)

(15,567)

(16,333)

(15,567)

(195,748)

21,773

217,281

195,508

21,533

217,281

Investment and interest revenue received Rental income Non-capital grants and contributions Other income Borrowing costs

Net cash inflows from operating activities Cash flows from investing activities Proceeds from sale of land held for resale Proceeds from sale of property, plant and equipment Capital grants, subsidies, contributions and donations Payments to acquire cash investments Payments for property, plant and equipment Proceeds from wind-up of controlled entity Payments for intangible assets

Net cash outflows from investing activities Cash flows from financing activities Repayment of borrowings

Net cash outflows from financing activities Net increase (decrease) for the year Cash and cash equivalents at the beginning of the financial year

Total cash and cash equivalents at the end of the financial year

11(a)

The above statement should be read in conjunction with the accompanying notes and significant accounting policies.

Fraser Coast Regional Council 2017-18 Annual Report

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Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Contents of the notes accompanying the financial statements Note Details 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page

Summary of significant accounting policies Analysis of results by function Revenue analysis Grants, subsidies, contributions and donations Capital income Employee benefits Materials and services Finance costs Depreciation and amortisation Capital expenses Cash, cash equivalents and investments Trade and other receivables Land held for development and resale Investment in controlled entities Property, plant and equipment Trade and other payables Borrowings Provisions Asset revaluation surplus Commitments for expenditure Contingent liabilities Superannuation - Regional Defined Benefit Fund Controlled entities that have not been consolidated Reconciliation of net result for the year to net cash inflows from operating activities Reconciliation of liabilities arising from finance activities Correction of errors Events after the reporting period Financial instruments and financial risk management National competition policy Wide Bay Water Corporation transition Transactions with related parties

72 74 76 77 78 79 79 80 80 81 82 83 84 84 85 93 93 94 95 95 96 97 98 100 100 101 101 102 107 108 109

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 1. Summary of significant accounting policies (a) Basis of preparation These general purpose financial statements are for the period 1 July 2017 to 30 June 2018. They have been prepared in accordance with the requirements of 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 and impairment gains and losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue. These financial statements have been prepared under the historical cost convention except where stated. (b) Basis of consolidation Council forms the economic entity which is referred to in these financial statements as the Council. The financial statements of other controlled entities, Widelinx Pty Ltd and Fraser Coast Tourism and Events Ltd are included in Note 23 but are not consolidated as they do not have a material effect on the results. The financial statements of controlled entities are included in the consolidated financial statements only where material by size or nature, from the date when control commences until the date when control ceases. Council entered into a joint venture agreement on 14 April 2015 for a development being conducted by Fraser Coast Residential Airpark Pty Ltd. This development is currently on hold at the request of Fraser Coast Residential Airpark Pty Ltd. As the impact of this joint venture is not expected to be material to Council’s overall operations, no separate disclosures have been made in relation to this joint venture.

Fraser Coast Regional Council 2017-18 Annual Report

(c) Constitution Fraser Coast Regional Council is constituted under the Local Government Act 2009 and is domiciled in Australia. (d) Adoption of new and revised Accounting Standards In the current year, Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council's accounting policies. This year Council has applied AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 for the first time. As a result, Council has disclosed more information to explain changes in liabilities arising from financing activities (‘debt reconciliation’). This information is presented in Note 25. Fraser Coast Regional Council has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective. AASB 9 Financial Instruments, which replaces AASB 139 Financial Instruments: Recognition and Measurement is effective for reporting periods beginning on or after 1 January 2018, and addresses the classification, measurement and disclosure of financial assets and liabilities. The standard introduces a new impairment model that requires impairment provisions to be based on expected credit losses, rather than incurred credit losses. Based on assessments to date, Council is not expecting AASB 9 to have a material impact on Council’s financial statements. AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and AASB 2016-8 Amendments to Australian Accounting

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 1. Summary of significant accounting policies continued Standards - Australian Implementation Guidance for Not-for-Profit Entities AASB 15 will replace AASB 118 Revenue, AASB 111 Construction Contracts and a number of Interpretations. AASB 2016-8 provides Australian requirements and guidance for not-for-profit entities in applying AASB 9 and AASB 15, and AASB 1058 will replace AASB 1004 Contributions. Together they contain a comprehensive and robust framework for the recognition, measurement and disclosure of income including revenue from contracts with customers. AASB 1058 is effective for reporting periods beginning on or after 1 January 2019. Council is reviewing each revenue stream to determine whether there will be any material impact arising from these standards. AASB 16 Leases is effective for periods beginning on or after 1 January 2019. Council holds some leases that are not in the Statement of Financial Position. These may need to be included when this standard comes into effect. A lease liability will initially be measured at the present value of the lease payments to be made over the lease term. A corresponding right-of-use asset will also be recognised over the lease term. Council has undertaken a preliminary analysis to identify and quantify the impacts of introducing AASB 16.

(e) Critical accounting judgements and key sources of estimation uncertainty Where necessary, judgements, estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes: • • • •

Valuation and depreciation of property, plant and equipment - Note 15b and 15c Impairment of property, plant and equipment - Note 15d Employee benefits and provisions - Note 18 Contingent liabilities - Note 21.

(f) Rounding and comparatives Amounts included in the financial statements have been rounded to the nearest $1,000, or where that amount is $500 or less, to zero. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. (g) Taxation Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax and 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.

If this requirement had been adopted at 30 June 2018 management estimate that the change in net assets would be immaterial. This estimate is based on Council's current obligations (4 commercial leases of which 1 has an end date beyond 30 June 2019) and various market and other assumptions. Other amended Australian Accounting Standards and Interpretations which were issued at the date of authorisation of the financial statements, but have future commencement dates are not likely to have a material impact on the financial statements.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 2. Analysis of results by function (a) Components of Council functions

Details relating to Council's functions as reported in Note 2(b) are as follows: Governance and administration The provision of information and advice to Council members, public relations, corporate development and covers the areas of financial services, human resources, administration, asset management, information systems, right to information, legal services and land development.

Economic development To increase business activity and employment by promoting opportunities for the region and attributes to attract investment.

Roads infrastructure and operations The construction and maintenance of roads, footpaths, parking facilities, traffic signals and bus shelters, including the provision of street cleaning services.

Stormwater drainage The maintenance and provision of stormwater drainage.

Commercial activities Covering the areas of airports and caravan park management.

Community and recreation Covering a variety of community related areas including community development, community housing, parks and recreation facilities management, tourism, museums, art galleries, libraries and coastal management.

Development services Development control processes including town planning, building and plumbing services.

Environment and health Areas covered include public health, cemeteries, pest control, swimming pools and environmental protection.

Solid waste management The provision of rubbish collection, recycling and operation of refuse sites.

Water management Operations and maintenance of water infrastructure throughout the region - controlled by Council's commercial business unit - Wide Bay Water.

Sewerage management Operations and maintenance of sewerage infrastructure throughout the region - controlled by Council's commercial business unit - Wide Bay Water.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 2. Analysis of results by function continued (b) Income and expenses defined between recurring and capital are attributed to the following functions: Gross income

2018 Functions

Recurring Grants Other $'000 $'000

Governance and administration Economic development Roads infrastructure and operations Stormwater drainage Commercial activities Community and recreation Development services Environment and health Solid waste management Water management Sewerage management

5,051 2,778 435 31 63 8,358

Total

3,060 1,337 13,901 3,082 326 1,614 23,320

180 11,770 15,935 1,304 3,465 6,067 38,721

Gross program income

2017 Functions

102,589 32 1,852 8 7,076 593 3,543 3,362 19,938 32,109 28,838 199,940

Capital Grants Other $'000 $'000

Recurring Grants Other $'000 $'000

6,407 3,776 1,075 13 13 13 44 25 11,366

Total

101,457 6 1,870 1 7,144 639 3,444 4,094 19,172 33,425 27,138 198,390

Capital Grants Other $'000 $'000 3,594 971 16,581 1,681 40 290 111 23,268

17,687 3,462 1,489 4,720 5,736 33,094

Gross expenses

Total income

Recurring

Capital

Total expenses

$'000

110,880 1,369 30,301 15,943 7,076 5,414 3,574 3,362 19,938 35,963 36,519 270,339

(37,391) (986) (36,068) (8,469) (5,465) (25,518) (4,253) (8,686) (15,361) (34,168) (23,023) (199,388)

(2,321) (14,614) (9,965) (1,522) (687) (2,179) (3,115) (34,403)

Gross program expenses

(39,712) (986) (50,682) (18,434) (5,465) (27,040) (4,253) (8,686) (16,048) (36,347) (26,138) (233,791)

Total income

Recurring

Capital

Total expenses

$'000

111,458 977 39,914 3,463 7,144 4,884 3,497 4,107 19,185 38,479 33,010 266,118

(31,071) (490) (38,215) (9,284) (5,217) (20,869) (3,004) (7,272) (14,972) (29,894) (22,847) (183,135)

(1,967) (10,984) (3,308) (517) (421) (1,116) (1,850) (20,163)

(33,038) (490) (49,199) (12,592) (5,217) (21,386) (3,004) (7,272) (15,393) (31,010) (24,697) (203,298)

Net result from recurring operations $'000 70,249 (954) (31,438) (8,461) 1,611 (24,490) (679) (5,324) 4,577 (1,996) 5,815 8,910

Net result from recurring operations $'000 76,793 (484) (32,569) (9,283) 1,927 (19,155) 453 (3,165) 4,213 3,575 4,316 26,621

Net result

$'000 71,168 383 (20,381) (2,491) 1,611 (21,626) (679) (5,324) 3,890 (384) 10,381 36,548

Net result

$'000 78,420 487 (9,285) (9,129) 1,927 (16,502) 493 (3,165) 3,792 7,469 8,313 62,820

Fraser Coast Regional Council 2017-18 Annual Report

Total assets

$'000 385,149 883,254 395,423 32,781 110,446 15,014 19,030 469,405 370,076 2,680,578

Total assets

$'000 392,885 837,488 361,476 36,812 89,131 4 14,604 16,228 454,668 365,931 2,569,227

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 3. Revenue analysis Revenue is recognised at the fair value of the consideration received or receivable, at the time indicated below.

(a) Rates, levies and charges Rates, levies and charges are recognised as revenue when levied. If a ratepayer pays their rates before they are levied, they are recognised as revenue when they are received.

General rates Rural fire levy Disaster levy Toogoom seawall revetment levy Infrastructure levy Water charges Water consumption charges Sewerage charges Sewerage trade waste charges Waste charges

79,673 325 552 85 3,814 24,393 13,203 37,299 538 19,985 179,867

79,327 325 548 207 3,785 23,791 14,899 36,126 525 19,500 179,033

Less: discounts Less: pensioner remissions and concessions

(12,514) (3,205)

(12,160) (2,883)

164,148

163,990

(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.

Change of ownership fees Building and development fees Caravan park fees Licences and registrations Pool fees Airport landing fees Refuse tip fees Plumbing and drainage fees Search fees Interment fees Lodgement fees Passenger head taxes Planning fees Security screening revenue Special water meter reading fees Water allocation fees Trade waste compliance fees Other fees and charges

Fraser Coast Regional Council 2017-18 Annual Report

313 161 3,297 812 1,152 131 4,526 1,048 879 617 554 1,411 1,749 1,369 214 157 229 1,258 19,877

315 194 3,440 1,410 1,245 132 4,031 1,125 720 512 573 1,563 1,514 1,265 205 206 239 1,468 20,157

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 3. Revenue analysis continued (c) Interest revenue Interest received from term deposits is accrued over the term of the investment.

Interest received on investments and term deposits Interest received on State Government fire levy Interest from overdue rates and utility charges

5,865 80 1,662 7,607

5,998 65 1,376 7,439

480 564 177 205 207 359 105 1,147 3,244

419 591 173 234 45 492 172 936 3,062

(d) Other income Airport income Brolga theatre performance income Commission income Fuel tax credits Insurance receipts Expense reimbursements Vector control income Other income

Note 4. Grants, subsidies, contributions and donations Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in which Council obtains control over them, which is usually upon receipt of funds. Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled. Council does not currently have any reciprocal grants. Physical assets contributed to Council by developers in the form of roadworks, stormwater, water and wastewater infrastructure and park equipment are recognised as revenue when the development becomes "on maintenance" (i.e. Council obtains control of the assets and becomes liable for any ongoing maintenance) and there is sufficient data in the form of drawings and plans to determine the approximate specifications and values of such assets. All non-cash contributions are recognised at the fair value of the contribution received on the date of acquisition.

(a) Recurrent General purpose grants Government grants and subsidies

7,196 1,162 8,358

10,050 1,316 11,366

(b) Capital 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.

(i) Monetary revenue designated for capital funding: Government grants and subsidies Contributions (ii) Non-monetary revenue: Developer contributed assets

23,320 9,832 33,152

23,268 12,178 35,446

12,529 12,529 45,681

13,229 13,229 48,675

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 4. Grants, subsidies, contributions and donations continued (c) Conditions over contributions Contributions recognised as income during the reporting period and which were obtained on the condition that they be expended in a manner specified by the contributor but had not been expended at the reporting date:

Non-reciprocal grants Non-reciprocal contributions

6,963 3,432 10,395

7,781 9,165 16,946

Contributions recognised as income during a previous reporting period that were obtained in respect of work performed in the current reporting period:

Non-reciprocal grants Non-reciprocal contributions

5,842 135 5,977

46 11 57

Note 5. Capital income (a) Gain/(loss) on disposal of non-current assets Proceeds from the sale of property, plant and equipment Less: carrying value of property, plant and equipment disposed

1,659 (1,613) 46

1,285 (1,489) (204)

(b) Revaluations Biological assets

42 42

37 37

525 (584) (59)

(d) Other Previously unrecorded building and site improvement assets # Previously unrecorded road and bridge network assets # Previously unrecorded water infrastructure assets # Previously unrecorded sewerage infrastructure assets # Previously unrecorded stormwater drainage assets # Reversal of prior year revaluation decrement (Coastal Infrastructure)

Total capital income

26 26 26 26 26

1,939 709 1,114 11,919 650 16,331 16,360

141 6,470 153 541 549 7,854 7,687

The previously unrecorded assets includes the written down value of recording the initial recognition of discovered assets relating to prior periods for building assets, buildings and site improvements, stormwater drainage, road and bridge network assets, water and sewerage assets. Management have not presented a restated prior period position as the net impact of the errors identified in note 26 is not considered material in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors .

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 6. Employee benefits Wages and salaries Annual, sick and long service leave entitlements Superannuation Councillors' remuneration

48,262 5,951 5,444 970 60,627

44,443 6,068 5,091 1,006 56,608

Other employee related expenses

949 61,576

660 57,268

Less: capitalised employee expenses

(6,825) 54,751

(7,429) 49,839

Councillors' remuneration represents salary and other allowances paid in respect of carrying out their duties. Total Council employees at the reporting date: Elected members Administration staff Depot and outdoors staff Total full time equivalent employees

Note 7. Materials and services Advertising and marketing Audit fees * Chemicals Cleaning Communication expenses Consultants and contractors Computer licences and maintenance Contributions - Fraser Coast Tourism and Events Donations, sponsorships and contributions Electricity and gas charges Fuel and oil Insurance Government charges and licences Memberships and subscriptions Legal fees Plant hire Refuse charges Repairs and maintenance Services Materials Management fees Capital work in progress expensed Compulsory land acquisition compensation Workshop expenditure Other materials and services

No.

No. 10 429 331 770

$'000 362 283 2,485 757 1,283 15,068 2,350 1,983 1,984 7,513 1,886 2,048 1,307 507 1,149 2,102 4,362 3,891 5,581 4,337 1,477 4,729 1,570 1,458 7,486 77,958

11 376 323 710

$'000 337 277 2,078 602 1,254 8,516 1,988 1,511 1,026 7,389 1,495 1,987 1,086 400 365 2,556 3,850 2,936 5,821 4,014 1,684 7,160 1,376 6,192 65,900

*Queensland Audit Office fees in respect of the audit of the 2018 year are $236,500 (2017: $230,500).

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 8. Finance costs Finance costs - Queensland Treasury Corporation Bank charges Impairment of receivables Refuse restoration

6,640 235 758 283 7,916

7,405 316 11 1,003 8,735

4,354 7,051 19,363 11,671 10,307 4,656 518 765 58,685

4,216 7,393 18,803 11,333 10,336 5,304 461 650 58,496

78 78 58,763

165 165 58,661

Note 9. Depreciation and amortisation (a) Depreciation of non-current assets Buildings and site improvements Plant and equipment Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage Coastal infrastructure Other assets 15

(b) Amortisation of intangible assets Computer software

Total depreciation and amortisation

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 10. Capital expenses (a) Provision for restoration of land Discount rate adjustment - refuse restoration

687 687

359 359

(b) Other capital expenses Loss on write-off of assets Loss/(gain) on write-down on investment in associate Aggregated asset adjustments in respect of prior years (assets derecognised)

14 26

Total capital expenses

18,012 (62) 15,766 33,716 34,403

15,506 635 3,663 19,804 20,163

752 692 27 12,086 1,469 2,001 956 29 18,012

123 172 120 10,716 1,116 1,850 1,394 15 15,506

3,106 29 2,529 678 950 8,474 15,766

744 540 466 1,913 3,663

Loss on write-off of assets Land Buildings and site improvements Plant and equipment Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage Coastal infrastructure

Aggregated asset adjustments in respect of prior years* Land Buildings and site improvements Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage

26 26 26 26 26 26

* The previously unrecorded write-offs includes the written down value of recording assets written off relating to periods prior to the year ended 30 June 2018 for buildings and site improvements, land, drainage, road and bridge network assets, water and sewerage assets carried out in previous financial periods. Management had not presented a restated prior period position for that period, as the net impact of the errors identified in note 26 is not considered material in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors .

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 11. Cash, cash equivalents and investments Cash and cash equivalents include cash on hand, all cash and cheques receipted but not banked at year end, deposits held at call with financial institutions, and other short-term and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(a) Cash and cash equivalents Cash in operating bank account Cash on hand Investments with Queensland Treasury Corporation (QTC) Term deposits less than 3 months

Balance per Statement of Cash Flows

1,644 35 19,854 21,533

2,401 35 78,345 136,500 217,281

(b) Investments Term deposits with a term in excess of three months are reported as investments, with deposits of less than three months being reported as cash equivalents.

Term deposits greater than 3 months

193,006 193,006 Cash in operating bank account is held at the Commonwealth Bank of Australia in a normal business cheque account. Investments with QTC are on call. Term deposits are held with various institutions. Term deposits earn fixed interest over varying terms at interest rates of between 2.50% and 2.93% (2017: 2.23% and 2.65%).

(c) Restricted cash, cash equivalents and investments Council's cash and cash equivalents are subject to a number of external restrictions that limit amounts available for discretionary or future use. These include: Externally imposed expenditure restrictions at the reporting date relate to the following cash assets: Unspent government grants and subsidies Unspent developer contributions Funds restricted for aged housing Funds restricted for Environmental Levy Funds restricted for Disaster management levy Total unspent restricted cash

7,901 29,162 348 1,115 409 38,935

9,254 28,525 857 1,115 400 40,151

(d) Trust funds held for outside parties 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.

Monies collected or held on behalf of other entities yet to be paid out to or on behalf of those entities Security deposits

Fraser Coast Regional Council 2017-18 Annual Report

1,143 3,352 4,495

1,154 3,488 4,642

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 12. Trade and other receivables Receivables are amounts owed to council at year end. They are recognised at the amount due at the time of sale or service delivery. Settlement is required within 30 days after the invoice is issued. Debts are regularly assessed for collectability and allowance is made, where appropriate, for impairment. All known bad debts were written-off at 30 June. If an amount is recovered in a subsequent period it is recognised as revenue. Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate debts. Council undertakes an annual assessment of rates receivables to ascertain if the recoverable amount is likely to be less than the debt which would result in an impairment. Rateable revenue 27,287 28,388 Fees and charges 1,687 1,152 Deferred infrastructure charges 4,282 4,924 GST recoverable 2,072 1,402 Accrued interest 4,719 1,972 Prepayments 382 1,760 Other debtors 3,057 3,348 44,329 42,103 (768) (10) Impairment 43,561 42,093

Movement in accumulated impairment losses Balance as at 1 July Impairment movements during the year Balance as at 30 June

10 758 768

5 5 10

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

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 13. Land held for development and resale Land classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less cost to sell at the time of reclassification. The fair value of the land was determined using the sales comparison approach. The land is categorised as a level 2 valuation.

Non-current Land held for development and sale Movement in assets during the reporting period Balance as at 1 July Carrying value of land disposed Transfers from other asset categories Balance as at 30 June

5,518 5,518

6,102 6,102

6,102 (584) 5,518

4,943 1,159 6,102

Note 14. Investment in controlled entities Investment in Widelinx Pty Limited Investment in Widelinx Pty Ltd Balance as at 1 July Accumulated profit/(loss) on investment Proceeds from wind-up of controlled entity Balance as at 30 June

10(b) 23

1,356 62 (1,418) -

1,356 1,356

1,991 (635) 1,356

The shares in Widelinx Pty Ltd are not traded on an active market and are shown at cost. During the previous reporting period, Council recognised the accumulated losses of Widelinx Pty Ltd and wrote down the value of its investment. The activities of Widelinx Pty Ltd were ended during the 2017/18 financial year. The majority of the remaining cash held by the entity was transferred to Council in 2017/18. Final deregistration of Widelinx is expected during 2018/19.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment 30 June 2018 Measurement basis

Opening gross balance - at cost Opening gross balance - at fair value Opening gross balance Work in progress transfers to property, plant and equipment Contributed assets at valuation Disposals Write-offs Write-offs (prior period adjustment)** Reversal of prior period revaluation decrements to income Revaluation increments to other comprehensive income (asset revaluation surplus) Work in progress additions * Transfers between classes Initial recognition of discovered assets ** Total gross value of property, plant and equipment - at cost

Land

Buildings and site improvements

Plant and equipment

Road and bridge network

Fair Value $'000

Cost $'000

Fair Value $'000

92,344 92,344 752 (20) (752) (3,106) -

247,624 247,624 4,855 (344) (961) (36) 13,904 (72) -

Total gross value of property, plant and equipment - at fair value

89,218

264,970

Total gross value of property, plant and equipment

89,218

264,970

Opening accumulated depreciation Depreciation provided in the period Depreciation on disposals Depreciation on write-offs Depreciation on write-offs (prior period adjustment)** Reversal of prior period revaluation decrements to income Revaluation increments to other comprehensive income (asset revaluation surplus) Transfers between classes Adjustments and transfers (change in landfill assets - note 18) Initial recognition of discovered assets **

43,672 4,354 (212) (269) (7) 3,998 (30) (285) -

Total accumulated depreciation of property, plant and equipment

Total impairment of property, plant and equipment

Total accumulated depreciation of property, plant and equipment Total net book value of property, plant and equipment Range of estimated useful life in years *Asset additions comprise Asset renewals Other additions Total asset additions

66,998 66,998 9,544 (4,281) (121) 72 -

Water Sewerage infrastructure infrastructure

Fair Value $'000

1,131,548 1,131,548 44,643 4,961 (19,472) (2,907) 39,678 2,028

652,169 652,169 14,266 1,421 (5,183) (1,656) 27,739 1,395

Fair Value $'000

570,220 570,220 3,404 3,332 (4,108) (1,511) 9,675 1,732

Coastal Other assets infrastructure

Fair Value $'000

530,792 530,792 8,054 2,815 (1,371) (13,577) 37,887 15,391

Cost $'000

22,948 22,948 5,854 (207) 1,138 -

Works in progress

Total

Cost/FV $'000

$'000

7,169 7,169 1,011 -

34,889 34,889 (92,383) 92,553 -

109,056 3,247,645 3,356,701 12,529 (4,645) (32,175) (22,793) 1,138 128,883 92,553 20,546

8,180

35,059

115,451

1,200,479

690,151

582,744

579,991

29,733

3,437,286

72,212

1,200,479

690,151

582,744

579,991

29,733

8,180

35,059

3,552,737

40,087 7,051 (2,820) (94) 30 -

311,097 19,363 (7,386) (378) 11,494 89

253,340 11,671 (3,714) (978) 10,835 686

218,082 10,307 (2,107) (561) 3,219 618

176,340 4,656 (415) (5,103) 12,701 3,472

9,479 518 (178) 488 -

4,794 765 -

1,056,891 58,685 (3,032) (14,163) (7,027) 488 42,247 (285) 4,865

51,221

44,254

334,279

271,840

229,558

191,651

10,307

5,559

1,138,669

51,221

44,254

334,279

271,840

229,558

191,651

10,307

5,559

1,138,669

2,621

35,059

2,414,068

39,498 52,885 92,383

89,218 Land - not depreciated 752 752

213,749 30-100

2,284 2,571 4,855

72,212

Fair Value $'000

Stormwater drainage

27,958 3-5

2,667 6,877 9,544

866,200 15-150

19,205 25,438 44,643

418,311 20-80

6,655 7,611 14,266

353,186 12-100

1,924 1,480 3,404

388,340 60-140

2,460 5,594 8,054

19,426 30-90

7-100

4,028 1,826 5,854

275 736 1,011

** The above table includes the net impact of recording the initial recognition of discovered assets, and assets written off relating to prior periods. Management have not presented a restated prior period position as the net impact of the errors identified is not considered material in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued

30 June 2017

Land

Buildings and site improvements

Plant and equipment

Road and bridge network

Measurement basis

Fair Value $'000

Cost $'000

Fair Value $'000

Opening gross balance - at cost Opening gross balance - at fair value Opening gross balance Work in progress transfers to property, plant and equipment Contributed assets at valuation Disposals Write-offs Write-offs (prior period adjustment)** Disposal of reinstated impaired assets (WBW transition - note 30) Revaluation increments to other comprehensive income (asset revaluation surplus) Work in progress additions * Transfers between classes Transfers from/(to) land held for development and resale (note 13) Initial recognition of discovered assets ** Total gross value of property, plant and equipment - at cost

89,643 89,643 467 (64) (123) (744) 4,324 (1,159) -

243,829 243,829 4,413 30 (249) (657) 120 138

Total gross value of property, plant and equipment - at fair value

92,344

247,624

Total gross value of property, plant and equipment

92,344

247,624

Opening accumulated depreciation Opening accumulated impairment Opening accumulated depreciation & impairment Depreciation provided in the period Depreciation on disposals Depreciation on write-offs Depreciation on write-offs (prior period adjustment)** Disposal of reinstated impaired assets (WBW transition - note 30) Depreciation on reinstated impaired assets (13/14 to 15/16) - WBW Transition - note 30 Impairment reversal on WBW transition - note 30 Transfers between classes Initial recognition of discovered assets **

39,156 39,156 4,216 (77) (117) 497 (3)

Total accumulated depreciation of property, plant and equipment

43,672

Total net book value of property, plant and equipment Range of estimated useful life in years *Asset additions comprise Asset renewals Other additions Total asset additions

92,344 Land - not depreciated 467 467

203,952 20-150

1,405 3,008 4,413

64,063 64,063 7,462 (4,084) (323) (120) -

Water Sewerage infrastructure infrastructure

Fair Value $'000

1,105,779 1,105,779 35,466 5,857 (21,438) (669) 6,553

66,998

Fair Value $'000

638,540 638,540 15,809 2,221 (4,230) (356) 12 173

Stormwater drainage

Fair Value $'000

567,252 567,252 3,795 3,035 (4,608) (12) 758

Coastal Other assets infrastructure

Fair Value $'000

525,847 525,847 8,789 2,086 (2,066) (4,416) 552

Cost $'000

22,641 22,641 323 (16) -

Works in progress

Total

Cost/FV $'000

$'000

7,034 7,034 147 (12) -

22,917 22,917 (76,671) 88,643 -

94,014 3,193,531 3,287,545 13,229 (4,148) (33,065) (6,486) (356) 4,324 88,643 (1,159) 8,174

7,169

34,889

109,056

1,131,548

652,169

570,220

530,792

22,948

3,247,645

66,998

1,131,548

652,169

570,220

530,792

22,948

7,169

34,889

3,356,701

35,564 35,564 7,393 (2,659) (203) (8) -

303,136 303,136 18,803 (10,722) (203) 83

243,933 11,521 255,454 11,333 (3,114) (94) 1,250 (11,521) 12 20

210,299 210,299 10,336 (2,758) (12) 217

174,208 174,208 5,304 (672) (2,503) 3

9,019 9,019 461 (1) -

4,156 4,156 650 (12) -

1,019,471 11,521 1,030,992 58,496 (2,659) (17,559) (2,823) (94) 1,250 (11,521) 489 320

40,087

311,097

253,340

218,082

176,340

9,479

4,794

1,056,891

2,375

34,889

2,299,810

43,159 33,512 76,671

26,911 3-5

5,918 1,544 7,462

820,451 15-150

20,017 15,449 35,466

398,829 5-100

10,098 5,711 15,809

352,138 5-100

2,098 1,697 3,795

354,452 60-140

3,552 5,237 8,789

13,469 30-90

7-100

4 319 323

67 80 147

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued 15 (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 $5,000 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.

15 (b) Measurement Property, plant and equipment assets are initially recorded at 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. 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, materials and direct overheads incurred in the acquisition or construction of assets are also included in their cost. Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair value.

15 (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 is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets. 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. 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.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued 15 (d) Impairment Property, plant and equipment is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. An impairment loss is recognised as an expense in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation surplus increase.

15 (e) Valuation (i) Valuation processes An annual assessment is undertaken to determine whether the carrying amount of property, plant and equipment is materially different from the fair value. Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally qualified valuers to determine the fair value for each class of property, plant and equipment assets at least once every five years. In the intervening years, Council will either engage independent, professionally qualified valuers to assess the movement in valuation indices or perform a “desktop” valuation or use internal engineers and asset managers to assess the condition and cost assumptions in respect of Council’s infrastructure asset classes. The valuer’s methodologies in determining indexation percentages for the construction costs of infrastructure assets are derived using appropriate assumptions, professional experience and tools available to them. When a desktop valuation is performed, management provides updated information to the valuer regarding additions, deletions, impairments and changes in assumptions such as useful life, residual value and remaining useful life. The valuer then determines suitable indices which are applied to each of these asset classes. Together these are used to form the basis of a valuation for infrastructure asset classes in each of the intervening years. With respect to the valuation of other asset classes in the intervening years, management use relevant price indices or other reliable measures that can be used to estimate the current values of these classes. 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. In accordance with AASB 13 Fair Value Measurement assets or liabilities 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 for the asset or liability (level 2) - Fair value based on unobservable inputs for the asset and liability (level 3)

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued There were no transfers between levels 1 and 2 during the year, nor between levels 2 and 3. Council's policy is to recognise transfers in and out of the fair value hierarchy levels as at the end of the reporting period. The following table categorises fair value measurements as either level 2 or level 3 in accordance with AASB 13. Council does not have any assets or liabilities measured at fair value which meet the criteria for categorisation as level 1. The fair values of the assets are determined using valuation techniques which maximise the use of observable data, where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an asset are observable, the asset is included in level 2. If one or more of the significant inputs is not based on observable market data, the asset is included in level 3. This is the case for Council infrastructure assets, which are of a specialist nature for which there is no active market for similar or identical assets. These assets are valued using a combination of observable and unobservable inputs. The table below presents Council's assets measured and recognised at fair value at 30 June 2018. Level 2 Level 3 2018 $'000 $'000

Total $'000

Recurring fair value measurements Land Buildings and site improvements Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage Coastal infrastructure Biological assets

15 15 15 15 15 15 15

89,218 425 89,643

213,324 866,200 418,311 353,186 388,340 19,426 740 2,259,527

89,218 213,749 866,200 418,311 353,186 388,340 19,426 740 2,349,170

5,518

Total Non-recurring fair value measurements Land held for development and resale

Level 2 $'000

2017

Total $'000

Level 3 $'000

15 15 15 15 15 15 15

92,344 440 92,784

206,248 820,451 398,829 352,138 354,452 13,469 698 2,146,285

92,344 206,688 820,451 398,829 352,138 354,452 13,469 698 2,239,069

6,102

Total Non-recurring fair value measurements Land held for development and resale

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued (ii) Valuation techniques used to derive fair values for level 2 and level 3 valuations Specific valuation techniques used to value Council assets comprise: Land (level 2) Land fair values of Council were determined by independent valuer, AssetVal Pty Ltd effective 30 June 2014. In addition, land fair values of the former Wide Bay Water Corporation (WBWC) were determined by independent valuer APV effective June 2015. The land fair values have been measured by the market approach by direct comparison, an accepted valuation methodology under AASB 13. Level 2 valuation inputs were utilised, being sales transactions of other properties within the region, and adjusted for differences between key attributes of the properties. The main input is the price per square metre or price per hectare of land area. The market approach is deemed a level 2 input. Revaluation indices for land provided by independent valuer, APV for the periods 1 July 2014 to 30 June 2017 for Council and 1 July 2015 to 30 June 2017 for WBWC suggested there had been a material change in the fair value of land assets, and were applied at 30 June 2017. For the reporting period, independent valuer, APV provided indices for land assets which indicated a zero percent change in value for the period 1 July 2017 to 30 June 2018. As Council's threshold for the impact of revaluation is 5%, it was determined that there had been no change in the fair value of land assets for the reporting period. Land classified as held for sale during the reporting period (Council) was measured at the lower of its carrying amount and fair value less cost to sell at the time of reclassification. The fair value of the land was determined using the sales comparison approach.

Buildings and site improvements (level 2 and 3) The fair value of buildings and site improvements of Council were determined by independent valuer, APV effective 30 June 2016, with fair value of buildings of the former WBWC also being determined by APV effective 30 June 2015. Indices were supplied by APV for the period 1 July 2016 to 30 June 2018 for Council and 1 July 2015 to 30 June 2018 for the former WBWC building assets. The indices suggested that there was a 6.0% change in building assets for the 2 year period for Council and 9.0% for the 3 year period for the former WBWC. The cumulative change in the overall fair value of buildings for the period mentioned above was 6.0%. As this is above Council's threshold for accounting for the impact of revaluation of 5%, it has been determined that there had been a material change in the fair value of building assets at 30 June 2018. Where there is an active and liquid market as evidenced by sales transactions of similar property types, the Market Approach by direct comparison, Income or Summation methods can be utilised, and is an accepted valuation methodology under AASB 13. If a Market Approach is adopted, the building valuation is deemed to be a level 2 input. The estimates of residual value, useful life, pattern of consumption and asset condition that are used to calculated accumulated depreciation comprise unobservable inputs (level 3). Where these other inputs are significant to the valuation, the overall valuation has been classified as level 3. Level 2 valuation inputs - Market (direct comparison) was used to determine the fair value of a range of properties. This included residential properties where the relevant inputs were able to be observed from current market evidence. The residential properties fair value was derived from sales prices of comparable properties after adjusting for differences in key attributes such as property size.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued Level 3 valuation inputs - Due to the predominantly specialised nature of local government buildings, as well as some residential properties that were located in isolated locations where there was no evidence to support a market approach, the valuations have been undertaken on a cost approach (current replacement cost), an accepted valuation methodology under AASB 13. Various sources were utilised by APV in calculating replacement cost including actual construction or purchase prices for projects paid by Council, Rawlinson's Construction Guide or similar guides (such as Cordells), development of costs using first principles. APV have also developed a number of models for specific asset types, and benchmarking against other valuations as well as a database built up from research of building and site improvement costs. All assets valued using only level 2 valuation inputs were physically inspected to assess the physical condition and how they may impact the assets highest and best use to potential market participants and ultimately its market value. For assets valued using the cost approach, all were physically inspected at the time of the comprehensive valuations in 2015 (WBWC) and 2016 (Council), which included validation of physical dimensions and characteristics.

Road, and bridge network and stormwater drainage infrastructure assets (level 3) All road and bridge network and stormwater drainage network infrastructure assets were valued by independent valuer APV as at 30 June 2016 using level 3 valuation inputs under the cost approach. Indices were supplied by independent valuer, APV, for the period 1 July 2016 to 30 June 2018 for these asset classes. Those indices suggested that there were changes in the components of this class of assets of between 2.6% and 7.1%. As Council's threshold for accounting for the impact of revaluation is 5%, it was determined that there had been a material change in the fair value of road, bridge and stormwater drainage network infrastructure assets at 30 June 2018. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on square metres or similar capacity could be supported from market evidence (level 2) other inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs. The main level 3 inputs used were derived and evaluated as follows: Asset condition - The nature of road network and stormwater network infrastructure is that there is a very large number of assets which makes up the networks and as a result it is not physically possible to inspect every asset for the purposes of completing a valuation. As a consequence reliance is placed on the accuracy of data held in the asset management system and its associated internal controls. This includes regular planned inspections and updates to the system following maintenance activities and renewal treatments. Likewise, especially for stormwater network infrastructure, a large portion of the portfolio is located underground and may only be inspected on an irregular basis.

Coastal infrastructure assets A desktop valuation of coastal infrastructure assets was undertaken by independent valuers, APV, effective 30 June 2016. Each asset is assessed individually, with the valuation varying according to the material type used for construction, condition and size. Indices were supplied by independent valuer, APV for the period 1 July 2016 to 30 June 2018 for this asset class. The indices suggested that there were changes in the components of this class of assets of 5.0%. As Council's threshold for accounting for the impact of revaluation is 5%, it was determined that there had been a material change in the fair value of coastal infrastructure assets at 30 June 2018. The coastal infrastructure asset class is wholly comprised of specialised assets. These specialised assets were valued using the cost approach using professionally qualified registered valuers. The approach estimated the replacement cost for each asset by componentising the asset into significant parts with different useful lives and taking into account a range of factors. These include the average cost of construction and consumption score for each component. As these are supported by observable market evidence they have been classified as level 2 inputs. The unobservable inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition and its relationship to the assessed level of remaining service potential of the depreciable amount) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 15. Property, plant and equipment continued Water and sewerage infrastructure assets (level 3) Water and sewerage infrastructure fair values were determined by an independent valuer, APV as at 30 June 2016. All water network infrastructure assets were valued using level 3 valuation inputs using the cost approach. Indices were supplied by independent valuer, APV for the period 1 July 2016 to 30 June 2018 for these asset classes. The indices suggested that there were changes in the components of this class of assets of between 2.2% and 5.9%. As Council's threshold for accounting for the impact of revaluation is 5%, it was determined that there had been a material change in the fair value of water and sewerage infrastructure assets at 30 June 2018. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on square metres or similar capacity could be supported from market evidence (level 2) other inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs. The Fraser Coast region is split into 4 distinct areas based on geographic (rural/urban/high density urban/CBD) and environmental factors (sand/acid/sulphate, soil/soft, rock/hard rock). Council assumes that these factors are consistent across each of the 4 regions and that costs of labour are consistent within each of these regions, depending on the materials used. APV cost models were derived from the following sources: • APV database • Development of costs models by APV • Benchmarking against other valuations • Rawlinson's rates for building and construction, and • Suppliers' quotations and actual prices paid by Council Factors taken into account in determining replacement costs included: • Development factors - The area in which development takes place (e.g. rural areas would have little or no restoration requirements, whereas a high density area would have large amounts of high quality footpaths, road pavements and associated infrastructure that would require reinstatement, and would also require traffic control). • Soil factors - The types of soil or other surface material (e.g. areas where soil is sandy are difficult to excavate and would require shoring while areas where the soil is generally free of rock would not present any great difficulty for excavation). • Depth factors - The depth of the trench (e.g. trenching above 1.5m requires shoring/trench cage which increases costs and slows production). Valuation unit rates (replacement costs) allow for factoring in project overheads including survey, environmental and investigation costs, engineering design, engineering supervision and project management. Accumulated depreciation In determining accumulated depreciation, assets were either subject to a site inspection or an assessment to determine remaining useful life. Where site inspections were not conducted (i.e. for passive assets and active assets for which no site inspections were undertaken), the remaining useful life was calculated on an age basis after taking into consideration current and planned maintenance records. For sewer gravity mains, the assumption that the pipes will be relined was adopted. The fair value for sewer gravity mains was determined as follows. • For all pipes, replacement cost was determined based on replacement value by trench excavation, useful life was determined as the pipe useful life plus the reline useful life, and the pipe fair value was based on age. • Where pipes have been relined, the total pipe useful life was determined as the pipe age when the reline occurred plus the reline life. • The relining of pipes was valued at reline unit rates and depreciated over the reline life (50 years). The reline fair value was based on age.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018 $'000

2017 $'000

Note 16. Trade and other 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, annual and long service 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 the annual leave beyond twelve months after the reporting date, annual leave is classified as a current liability.

Creditors and accruals Annual leave Other employee entitlements Employee related accruals

17,831 5,059 266 448 23,604

14,662 4,702 248 726 20,338

Note 17. Borrowings Borrowings are initially recognised at fair value plus any directly attributable transaction costs. Thereafter, they are measured at amortised cost. Principal and interest repayments are made quarterly in arrears. All borrowings are denominated in Australian dollars 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 September 2019 to 15 December 2030. 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.

Current Loans - QTC

17,382 17,382

16,585 16,585

89,798 89,798

106,928 106,928

123,513 (16,333) 107,180

139,080 (15,567) 123,513

Non-current Loans - QTC

Reconciliation of loan movements for the year Balance as at 1 July Principal repayments Balance as at 30 June

The QTC loan market value at the reporting date was $119,072,643 (2017: $138,366,780). 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 the term, no provision is required to be made in these statements. No assets have been pledged as security by Council for any liabilities, however all loans are guaranteed by the Queensland Government.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note

2018 $'000

2017 $'000

Note 18. Provisions 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. Restoration provision A provision is made for the cost of restoration in respect of landfill sites where it is probable 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 average interest rate of Councilâ&#x20AC;&#x2122;s term investments at 30 June 2018. The provision represents the present value of the anticipated future costs associated with the closure of the landfill 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 landfill sites is reviewed at least annually and updated based on the facts and circumstances available at the time. Changes in the provision are recognised as an expense.

Current Long service leave Refuse restoration

5,168 139 5,307

5,213 612 5,825

642 16,668 17,310

866 14,940 15,806

6,079 779 (1,048) 5,810

6,295 953 (1,169) 6,079

15,552 283 687 285 16,807

14,681 1,001 359 (489) 15,552

Non-current Long service leave Refuse restoration Details of movements in long service leave provision:

Balance as at 1 July Amount provided for in the period Amount paid in the period Balance as at 30 June Details of movements in refuse restoration provision:

Balance as at 1 July Increase in provision due to unwinding of discount Increase/(decrease) in provision due to change in discount rate Change in the value of landfill assets Balance as at 30 June

8 10(a)

Refuse restoration This is the present value of the estimated cost of restoring Council's landfill sites to a useable state at the end of their useful lives. The projected cost is the present value of the estimated cost of restoring the landfill sites after closure and allowing a period for settlement. Expected closure dates to the public of the sites range from 1991 to 2033 and expenditure is expected from 2019 to 2063.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 19. Asset revaluation surplus The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in the asset revaluation surplus. Increases and decreases on revaluation are offset within a class of assets. Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense. When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the asset revaluation surplus and not transferred to retained surplus.

Movements in the asset revaluation surplus: Balance as at 1 July

549,089

544,765

9,906 28,184 16,904 6,456 25,186 86,636 635,725

4,324 4,324 549,089

The closing balance of the asset revaluation surplus comprises the following asset categories: Land Buildings and site improvements Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage

15,426 69,049 201,117 135,433 114,598 100,102

15,426 59,143 172,933 118,529 108,142 74,916

Balance as at 30 June

635,725

549,089

Net adjustment to non-current assets at end of period to reflect a change in current fair value: Land Buildings and site improvements Road and bridge network Water infrastructure Sewerage infrastructure Stormwater drainage 15

Balance as at 30 June Asset revaluation surplus analysis

Note 20. Commitments for expenditure (a) Contractual commitments (exclusive of GST) Contractual expenditure committed for as at 30 June but not recognised in the financial statements as liabilities:

Infrastructure contracts Pest control Garbage collection contract Security services Cleaning, landscaping and ranger services Security screening These expenditures are payable as follows: Within the next year Later than one year and not later than 5 years Total payable

18,102 25 18,186 846 1,474 38,633

11,991 48 22,126 72 647 2,558 37,442

24,012 14,621 38,633

18,027 19,415 37,442

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note

2018 $'000

2017 $'000

Note 20. Commitments for expenditure continued (b) Operating leases (non-cancellable) Payments made under operating leases are expensed in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

Minimum lease payments in relation to non-cancellable operating leases are as follows:

Within one year One to five years

279 410 689

55 131 186

Council has three 1-year commercial building leases ending between 14 January 2019 and 30 April 2019 with renewal options for 1 year at Council's discretion. Council holds a further 20-year commercial building lease ending 30 September 2020.

Note 21. Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows:

Legal claims Council is subject to a number of claims that arise as a result of its operations relating to ownership of public assets, past and present employees and compensation with regards to the compulsory acquisition of land. Management is currently considering claims made by a Councillor and a former employee. Council has not provided for any amounts to date in relation to these claims on the basis that it has either assessed that no material outflow of economic benefit is probable, or that such outflows cannot be reliably estimated at this stage. Further information in respect of individual claims has not been disclosed in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets on the basis that Council considers such disclosures would seriously prejudice the outcome of the claims.

Local Government Mutual 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 2017 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise.

Local Government Workcare Council is a member of the Queensland local government worker's compensation self-insurance scheme, Local Government Workcare. Under this scheme 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. Only the Queensland Governmentâ&#x20AC;&#x2122;s Workers Compensation Authority may call on any part of the guarantee should the above circumstances arise. Council's maximum exposure to the bank guarantee is $1,058,192.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 22. Superannuation - Regional Defined Benefit Fund Council contributes to the LGIAsuper 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 LGIAsuper 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 LGIAsuper 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. Technically Fraser Coast Regional Council can be liable to the scheme for a portion of another local governmentsâ&#x20AC;&#x2122; obligations should that local government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIAsuper 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 2015. The actuary indicated that â&#x20AC;&#x153;At the valuation date of 1 July 2015, 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. Another actuarial investigation is being conducted as at 1 July 2018. At the time of signing these financial statements this investigation is still in progress. The most significant risks that may result in LGIAsuper 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 63 entities contributing to the scheme and any changes in contribution rates would apply equally to all 63 entities. Fraser Coast Regional Council made less than 4% of the total contributions to the plan in the 2017-18 financial year.

Note

Superannuation contributions made to the Regional Defined Benefits Fund Other superannuation contributions for employees Total superannuation contributions paid by Council for employees

2018 $'000 855 4,588 5,444

2017 $'000 904 4,187 5,091 2019 $'000

Contributions Council expects to make to the Regional Defined Benefits Fund for 2018-19

870

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 23. Controlled entities that have not been consolidated Joint ventures At the ordinary Council meeting held 25 March 2015, Council delegated to the CEO the authority to enter into a Joint Venture Agreement and Deed of Consent to Security for the development of a residential airpark at the Maryborough Airport. The joint venture agreement details that the relationship of the parties is that of a joint venture and is limited to carrying out of the development. The development is being conducted by the development entity Fraser Coast Residential Airpark Pty Ltd. The agreement is dated 14 April 2015. Works were initially scheduled to commence in November 2015 and sales were not anticipated until the 2015/16 year. However this was delayed due to the discovery of a boundary discrepancy which required minor zoning amendments to be made to the town planning scheme. An operational works application has been lodged, with works currently on hold. Council is responsible for providing the land on which the joint venture is going to be developed. The agreement states that land remains an asset of Council until sold. As the contractual arrangement dictates each parties share in the profit or loss relating to the activities, and that each party is liable to the arrangement only to the extent of their investments in the arrangement or their respective obligations to contribute to the arrangement, this is an indication of a joint venture rather than a joint operation. A maximum upper limit of Council's liability under the agreement is set at $4,859,235 which represents the forfeiting of Council fees and nominal land value of the project. As the impact of this joint venture is not expected to be material to Council's overall operations, and as there have only been minor set-up transactions and development application fees incurred to the reporting date ($154,217 to 30 June 2017, nil in the current reporting period), no separate disclosures are intended to be made in the 2017/18 financial statements in relation to this joint venture. Due to a number of ongoing issues with the development application, this joint venture project is currently on hold.

Unconsolidated controlled entities Fraser Coast Regional Council has two controlled entities that are not consolidated, because their size and nature means that they are not material to Council operations.

Widelinx Pty Ltd Widelinx Pty Ltd was established by the then Hervey Bay City Council in January 2005 to oversee the operations of a local communications venture and continues to actively trade. Fraser Coast Regional Council resolved at its ordinary meeting held on 3 December 2008, that it would continue to support Widelinx financially. Hervey Bay City Council formed a business relationship (the business venture to trade under the name Widelinx) with a broadband internet provider (IP Systems) in February 2005 to address opportunities for network solutions in Hervey Bay and Wide Bay to provide householders and businesses with voice, data and other information and communications technology (ICT) services. Following a number of changes to the ownership and corporate structure of IP systems between 2010 and 2016, which saw that entity taken over and merged to initially become part of Amcom Telecommunications followed by a takeover by Vocus Communications in addition to the expiry of a number of contracts that were entered into by Widelinx, Vocus Communications ceased its business relationship with Widelinx during the 2017/18 financial year. Following a recommendation from the Board, Widelinx is in the process of being deregistered which is expected to be completed during 2018/19.

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 23. Controlled entities that have not been consolidated continued Unconsolidated controlled entities continued Fraser Coast Tourism and Events Ltd Fraser Coast and Events Ltd (FCTE) - formally Fraser Coast Opportunities Ltd (FCO) is a controlled entity of Council initially formed to undertake the functions of Investment Attraction, Marketing, Events and Tourism Services on behalf of Council for the direct benefit of the Fraser Coast Region. FCTE is a not-for-profit company limited by guarantee constituted under the Corporations Act 2001. The entity commenced operations on 1 July 2013 with transfer of Tourism Fraser Coast to the entity on 1 September 2013. An interim board was appointed, with the permanent board appointed in February 2014. Amendments were made to the Constitution on 8 July 2015, and the board now consists of five independent board members. Subsequent to the local government election on 19 March 2016, a report was tabled at the first ordinary meeting of the newly elected Council on 4 May 2016 regarding the direction of FCO as an independent entity, where it was resolved that Council retain FCO as a Registered Tourism Organisation for Tourism, Events and Marketing to maximise visitation and align with Tourism Events Queensland structure and funding (currently Fraser Coast Tourism and Events Ltd). Investment attraction has transferred back to Council and been integrated with Council's economic development activity. A new 3 year agreement commencing 1 July 2016 was entered into with FCTE by Council in support of its activities. The assets, liabilities and net results of operations for the year ended 30 June 2018 (unaudited) for the above unconsolidated controlled entities are summarised below:

Income and expenses Operating revenue Operating expenses Proceeds from wind-up of Controlled entity to Parent entity Net result Assets Current assets Non-current assets Liabilities Current liabilities Non-current liabilities Net assets

Fraser Coast Tourism and Events Ltd

Widelinx Pty Ltd

2018 $'000

3,017 (3,000) 17

89 (26) (1,418) (1,355)

1,099 90 1,189

1 1

853 37 890 299

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 Note

2018 $'000

2017 $'000

Note 24. Reconciliation of net result for the year to net cash inflows from operating activities Net result Adjust for non-cash and investing activities: Capital grants and contributions Net (gains)/losses on disposal of assets Revaluations (biological assets) Gain on transition of Wide Bay Water Other capital items Depreciation and amortisation Capital expenses Increase/(decrease) in provision for doubtful debts Change in the value of landfill assets

36,548

62,820

4(b) 5(a)&(c) 5(b) 30 5(d) 9 10(b) 12 18

(45,681) 13 (42) (16,331) 58,763 33,716 758 (285) 30,911

(48,675) 204 (37) 45 (7,854) 58,661 19,804 5 489 22,642

(2,226) (191) 3,266 (269) 1,255 248 2,083

(2,671) (212) 6,322 (216) 871 163 4,257

69,542

89,719

Changes in operating assets and liabilities: (Increase)/decrease in trade and other receivables (Increase)/decrease in inventories Increase/(decrease) in trade and other payables Increase/(decrease) in leave provisions Increase/(decrease) in restoration provision Increase/(decrease) in other liabilities

16 18 18

Net cash inflows from operating activities

Note 25. Reconciliation of liabilities arising from finance activities As at 30 June 2017 $'000

Loans

Fraser Coast Regional Council 2017-18 Annual Report

123,513 123,513

Non-Cash Changes Cashflows $'000 (16,333) (16,333)

(New Leases)

$'000 -

As at 30 June 2018 $'000 107,180 107,180

100

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

2017

Note 26. Correction of errors Correction of errors relating to a previous reporting period (a) Initial recognition and derecognition of non-current assets The initial recognition and derecognition of non-current assets relates to assets that should have been included or excluded in previous years' financial statements but have only been identified and placed into (or removed from) the financial asset register during the current reporting period. Where the net written down value impact of these errors is not considered material in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, management have not presented a restated prior period position. Details of errors identified in the current year are set out below: • During the year a review was conducted on freehold land that was held on the register and a number of land assets were found that are not owned by Council; • A review was conducted on the Open Drainage assets which resulted in a number of building and site improvement assets being discovered; • Certain road, bridge and drainage infrastructure assets were identified that related to prior periods. Some of which was due to the ongoing verification of the existence of items that had been spatially recognised in the mapping systems, but not contained in asset registers. Assets that had been recognised in prior periods were found to be either duplicate entries or assets that were controlled by entities other than Council, and as such were derecognised during the financial year; • In conjunction with the verification process in relation to roads and stormwater assets, certain adjustments relating to changes in stormwater pipe lengths and construction materials as well as lengths and widths of some road segments had been processed; • As part of the Wide Bay Water commercial business unit ongoing review of infrastructure assets, asset systems staff periodically identifies assets not previously appropriately accounted for or recognised. These items predominantly relate to the records of historic underground network assets. Asset record corrections are confirmed through acquirement of new information during excavation and maintenance work or subsurface visual inspections via CCTV pipe survey. 2018 2017 Note $'000 $'000 Initial recognition of previously unrecorded non-current assets Building and site improvement assets Road and bridge network assets Water infrastructure assets Sewerage infrastructure assets Stormwater drainage assets Total

5(d) 5(d) 5(d) 5(d) 5(d)

1,939 709 1,114 11,919 15,681

141 6,470 153 541 549 7,854

Initial derecognition of non-current assets Land assets Building and site improvement assets Road and bridge network assets Water infrastructure assets Sewerage infrastructure assets Stormwater drainage assets Total

10(b) 10(b) 10(b) 10(b) 10(b) 10(b)

3,106 29 2,529 678 950 8,474 15,766

744 540 466 1,913 3,663

Net prior period correction

(85)

4,191

Note 27. Events after the reporting period There were no material adjusting events after the reporting date.

101

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

2017

Note 28. Financial instruments and financial risk management Fraser Coast Regional Council has exposure to the following risks arising from financial instruments: Credit risk Liquidity risk Market risk This note provides information (both qualitative and quantitative) to assist financial statement users evaluate the significance of financial instruments on Council's financial position and financial performance, including the nature and extent of risks and how Council manages these exposures.

Financial risk management Fraser Coast Regional Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk management policies. Council approves policies for overall risk management, as well as specifically for managing credit, liquidity and market risk. Fraser Coast Regional Council's risk management policies are established to identify and analyse the risks faced, to set appropriate limits and controls and to monitor these risks and adherence against limits. Council aims to manage volatility to minimise potential adverse effects on the financial performance of Council.

Council does not enter into derivative contracts.

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

2018 $'000

2017 $'000

11(a) 11(b) 12 12

21,533 193,006 27,287 14,514 256,340

217,281 28,388 13,323 258,992

1,058 1,058 257,398

1,029 1,029 260,021

Note

Financial assets Cash and cash equivalents Term deposits greater than 3 months Receivables - rates Receivables - other

Other credit exposures Guarantee

Total

Fraser Coast Regional Council 2017-18 Annual Report

102

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

2017

Note 28. Financial instruments and financial risk management continued Cash and cash equivalents and term deposits Council may be exposed to credit risk through its investments in term deposits and the QTC Cash Fund. Term deposits are held with financial institutions, which are rated A1+ to A2 based on rating agency Standard and Poor's and Moody ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed as remote. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties. Deposits with the QTC Cash Fund are capital guaranteed.

Trade and other 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 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. By the nature of Council's operations, there is a geographical concentration of risk in the Council's area. Because the main activity of the region is tourism, there is also a concentration of risk in the tourism sector. Ageing of past due receivables and the amount of any impairment is disclosed in the following table: Note

2018 $'000

2017 $'000

21,077

22,228

2,736 151 2,092 16,513 (768) 41,801

2,106 525 2,238 14,624 (10) 41,711

Receivables Fully performing Past due: - Less than 30 days overdue - 30 to 60 days overdue - 61 to 90 days overdue - Over 90 days overdue - Impaired 12

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. Fraser Coast Regional Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC and other financial institutions. 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.

103

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

2017

Note 28. Financial instruments and financial risk management continued The following table sets out the liquidity risk of financial liabilities held by Council. It represents the remaining contractual cashflows (principal and interest) of financial liabilities at the end of the reporting period, excluding the impact of netting agreements:

Note

0 to 1 year $'000

1 to 5 years Over 5 years $'000 $'000

Total contractual cash flows

Carrying amount

2018 Trade and other payables Loans - QTC

16 17

18,279 22,973 41,252

71,321 71,321

38,559 38,559

18,279 132,853 151,132

18,279 107,180 125,459

2017 Trade and other payables Loans - QTC

16 17

15,388 22,973 38,361

79,093 79,093

53,761 53,761

15,388 155,827 171,215

15,388 123,513 138,901

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

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

Interest rate risk Council is exposed to interest rate risk through its 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 exposure can be minimised.

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

Fraser Coast Regional Council 2017-18 Annual Report

104

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

Note 28. Financial instruments and financial risk management continued

Note

2018 Investments with QTC Other cash Loans - QTC* Net

11(a) 11(a) 17

Effect on net result

Net carrying amount $'000

1% increase $'000

19,854 1,644 (107,180) (85,682)

199 16 215

Effect on equity 1% increase $'000

1% decrease $'000

(199) (16) (215)

199 16 215

(199) (16) (215)

(783) (24) (807)

783 24 807

(783) (24) (807)

1% decrease $'000

2017 78,345 783 Investments with QTC 11(a) 2,401 24 Other cash 11(a) (123,513) 17 Loans - QTC* (42,767) 807 Net In relation to the QTC loans held by Council, the following has been applied:

2017

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

Fair value The fair value of trade and other receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment. The fair value of borrowings with QTC is based on the market value of debt outstanding. The market value of a debt obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount required to be repaid if this was to occur at the reporting date. The market value of debt is provided by QTC and is discussed below. QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market value movements to clients' cost of funding. The book value represents the carrying value based on amortised cost using the effective interest method.

105

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018 2018

2017

Note 28. Financial instruments and financial risk management continued Fair value hierarchy

The recognised fair values of financial assets and liabilities are classified based on the lowest level of input significant to the overall fair value:

Level 1 - quoted prices (unadjusted) in active markets for identical instruments. Level 2 - inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 - valuation techniques for which any significant input is not based on observable market data. According to the above hierarchy, the fair values of each class of asset recognised at fair value are as follows:

Note

Level 1 $'000

Level 2 $'000

Level 3 $'000

Total $'000

2018 Financial assets Cash and cash equivalents Investments with QTC Term deposits greater than 3 months

11(a) 11(a) 11(b)

1,679 19,854 193,006 214,539

17 16

107,180 23,604 130,784

11(a) 11(a)

138,936 78,345 217,281

17 16

123,123 20,338 143,461

Total financial assets Financial liabilities Loans - QTC Trade and other payables

Total financial liabilities 2017 Financial assets Cash and cash equivalents Investments with QTC

Total financial assets Financial liabilities Loans - QTC Trade and other payables

Total financial liabilities

Fraser Coast Regional Council 2017-18 Annual Report

106

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 29. National competition policy Business activities to which the code of competitive conduct is applied Fraser Coast Regional Council applies the competitive code of conduct to the following activities:

Wide Bay Water Caravan parks Fraser Coast Waste Fraser Coast Airport Brolga Theatre 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 activity's cost(s) which would not be incurred if the primary objective of the activities was to make a profit. 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 Council.

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

Brolga Theatre

Caravan parks

$'000

Fraser Coast Waste $'000

Fraser Coast Airport $'000

2018 Revenue for services provided to external clients Revenue for services provided to internal clients Community service obligations Less : expenditure Less: Net competitive neutrality adjustments Surplus/(deficit)

107

76,350 60 728 77,138 (61,429) (918) 14,791

880 508 1,388 (2,364) (33) (1,009)

3,405 3,405 (1,933) (61) 1,411

23,336 247 23,583 (16,820) (95) 6,668

3,567 1,172 4,739 (3,605) (55) 1,079

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 29. National competition policy continued Description of CSO's provided to business activities: Revenue $'000

Activities

CSO description

Wide Bay Water

Council provides discounted water and sewerage services to community and sporting bodies which is identified as a Community Service Obligation (CSO). In addition, the State Government sets the maximum regulated infrastructure charges able to be collected from developers, to which Council has provided certain discounts and incentives to developers, this has also been identifed by Council as a CSO for the Wide Bay Water commercial business unit.

Council has identified that a CSO should be implemented in regard to airport operations. The objective of this is to foster tourism and economic development in the local authority area. This objective is consistent with the Fraser Coast Airport adopted Corporate Plan. The pricing structure for airport landing fees is not currently based on commercial rates, but rather kept comparable to other Queensland regional airports with the objective of promoting tourism and economic development within the region. Council has identified a number of CSO's in relation to the provision of waste services throughout the region. Council provides and services street litter bins throughout the region. Public recycling services are also provided in high Fraser Coast Waste profile, high use areas. These services are recognised as a CSO. In addition, Council provides vouchers to charitable organisations and schools allowing those organisations to dispose of a certain amount of waste for free. This service is also recognised as a CSO.

728

1,172

247

Brolga Theatre

Council has identified a CSO in relation to the Brolga Theatre. Council requires the Brolga Theatre to operate first class facilities and to provide a range of high quality cultural performances to residents in the region at a cost equivalent to prices in major cities. Council requires all trading areas, other than live theatre performances to operate on a commercial basis and produce profitable results. Council recognises a CSO to cover the Theatre's net operating loss excluding asset depreciation.

508

Caravan Parks

As Council caravan parks are managed by third parties on a commercial basis, no CSOs are recognised.

Note 30. Wide Bay Water Corporation transition On 1 July 2016 Wide Bay Water Corporation (WBWC) transitioned to being a commercial business unit of Council. The vesting of WBWC's assets to Council from WBWC was considered a distribution to owners. In the consolidated financial statements for the comparative period, Council accounted for the transfer by recognising the assets and liabilities of WBWC at their "adjusted current value", with any difference to be recorded as an adjustment to equity. The details of the difference in the "adjusted carrying value" are listed below and was recognised as a gain in the statement of changes in equity. 2017 $'000 $'000 Gain on WBWC transition Reversal of impaired assets (30-6-13) Depreciation on impaired assets (2014 to 2016) Assets disposed (1-7-13 to 30-6-16) Miscellaneous transition corrections Total gain on WBWC transition

Fraser Coast Regional Council 2017-18 Annual Report

11,521 (1,250) (262)

10,009 45 10,054

108

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 31. Transactions with related parties (a) Subsidiaries The group consists of Council and two subsidiaries (Widelinx Pty Ltd and Fraser Coast Tourism and Events Ltd). Neither of these subsidiaries are consolidated, details are disclosed in Note 23. The following transactions occurred with subsidiaries:

Subsidiary

Goods and services supplied to Council on normal terms and conditions

Widelinx Pty Ltd Telecommunication services supplied to Council Widelinx Pty Ltd Proceeds from deregistration and wind-up of subsidiary * Fraser Coast Tourism & Events Ltd Tourism and events services supplied to Council Total goods and services supplied to Council

2018

2017

$'000

87 1,418 2,253 3,758

122 1,815 1,937

* The operations of Council's wholly owned subsidiary, Widelinx Pty Ltd ceased during the reporting period. The majority of cash held by the subsidiary was transferred to Council after outstanding debts of the company at the end of the reporting period had been paid. Deregistration of Widelinx Pty Ltd is expected during 2018/19.

In accordance with its Deed of Agreement for Funding, Fraser Coast Tourism & Events (FCTE) utilises Council facilities, buildings and services. Under that Deed, FCTE are required to reimburse Council for outgoings such as electricity, repairs and maintenance, rates and charges, security services, advertising, recruitment costs and cleaning. Other reimbursements include the payment of fees collected from and the hire of certain venues and events and merchandise sales. In addition, FCTE utilises fleet items from Council. They are hired to FCTE on the same basis as Council's internal plant and fleet hire rates. Further, FCTE pay nominal rental costs for use of the Hervey Bay Cultural Centre for $5,500 annually. The total of these transactions are listed below:

2018 $'000

Payments by FCTE to FCRC Reimbursements for outgoings Other reimbursements Motor vehicle hire Rent of premises TOTAL

111 9 21 6 147

2017 $'000 59 21 20 6 106

(b) Transactions with joint ventures Council established a joint venture agreement with Fraser Coast Residential Airpark Pty Ltd in 2015. Details of this arrangement are disclosed in Note 23. There have been no transactions with Fraser Coast Residential Airpark Pty Ltd in the reporting period.

(c) Transactions with key management personnel (KMP) KMP include the Mayor, Councillors, Council's Chief Executive Officer and Council's Executive Management team. The compensation paid to KMP comprises:

2018 $'000 Short-term employee benefits Post-employment benefits Long-term benefits Termination benefits TOTAL

109

2,769 259 42 736 3,806

2017 $'000 2,495 291 46 444 3,276

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 31. Transactions with related parties continued (d) Transactions with other related parties Other related parties include the close family members of KMP and any entities controlled or jointly controlled by KMP or their close family members. Close family members include a spouse, child and dependent of a KMP or their spouse. Details of Transaction

Employee expenses for close family members of KMP Purchase of materials and services from entities controlled by KMP or close family members 2 of KMP 3 Sale of Council property to KMP 4 Key management personnel services provided by an external entity 1

2018

2017

$'000

105

102

198 330 130 763

137 80 319

1. During the reporting period there were 3 employees that are close family members of key management personnel employed by Council (one resigned during the reporting period). All close family members of key management personnel were employed through an arm's length process, two on a casual basis, one on a full time basis. They are paid in accordance with the Award for the work they perform. 2.(a) Hotlight Marketing Pty Ltd, a company controlled by Councillor Rolf Light purchased the Torquay Post Office franchise in May 2016. The post office provides services in relation to Council’s outgoing mail for which Council pays Australia Post directly (to which the franchise is entitled to a commission). Commission is also payable by Australia Post to the franchise on payments made in person at the post office on eligible Post BillPay branded Council invoices (e.g. rates and animal registration notices). In addition, postal services provided by the franchise to Council’s Commercial Business Unit – Wide Bay Water are paid direct to Hotlight Marketing. The total for these services were $5,121 (2017: $3,491). These services were all pre-existing arrangements that had been provided by the Torquay post office branch prior to Hotlight Marketing’s purchase of the franchise. All services were at arm’s length, on normal terms and conditions and were in the normal course of Council operations. As at 30 June 2018 there was $506 owed by Council to the company. 2.(b) Impression Business Coaching, a company controlled by a close family member of Councillor Daniel Sanderson was engaged by Council to write for a council publication during the previous reporting period. The total of these services for the reporting period was nil (2017: $2,800). All services were at arm's length, on normal terms and conditions and were in the normal course of Council operations. As at 30 June 2018 there were no amounts owed by Council to the company. 2.(c) Mr Sydney Shang, Council's Executive Manager Governance & Customer Service relieved in the position of Director Organisational Services (a member of Council's Executive Management team) for approximately three and a half weeks during the reporting period (2017: five weeks). A close family member of Mr Shang controls The Workers Wardrobe, a small business that provides uniforms, industrial and high visibility workwear and safety footwear to Council. All services were at arm’s length, on normal terms and conditions and were in the normal course of Council operations. 3. Mr Davendra Naidu, Council's Director of Infrastructure Services purchased a property owned by the Council during the reporting period. The property had been listed for sale along with other Council properties with a local real estate agent. The sale was carried out at arm's length under normal terms and conditions for such a transaction.

Fraser Coast Regional Council 2017-18 Annual Report

110

Fraser Coast Regional Council Notes to the financial statements for the year ended 30 June 2018

Note 31. Transactions with related parties continued (d) Transactions with other related parties continued 4. Payments were made to The Sustainable Advantage Pty Ltd for the services of Mr Keith Parsons who acted in the position of Director of Organisational Services for the period 25 July 2017 until he was permanently appointed to the position on 8 January 2018 (2017: Payments to the Local Government Association of Queensland were made for the services of Mr Ray Burton who acted in the position of Chief Executive Officer for the period 13 March 2017 to 18 June 2017). These amounts have been excluded from the KMP compensation disclosures in (c) above.

(e) Outstanding balances There are no balances outstanding at the end of the reporting period in relation to transactions with related parties.

(f) Loans and guarantees to/from related parties Council does not make loans to or receive loans from related parties. No guarantees have been provided.

(g) Commitments to/from other related parties There are no commitments outstanding at the end of the reporting period to/from related parties.

(h) Transactions with related parties that have not been disclosed The majority of the entities and people that are related parties of Council live and operate within the Fraser Coast Region. Therefore, on a regular basis ordinary citizen transactions occur between Council and its related parties. Some examples include: - Payment of rates and utility charges - Use of Council's aquatic centres - Borrowing books from Council libraries - Attending events or performances at Council venues such as the Brolga Theatre or Showgrounds Council has not included these types of transaction in its disclosure, where they are made on the same terms and conditions available to the general public.

111

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council General purpose financial statements

for the year ended 30 June 2018

Management certificate for the year ended 30 June 2018 These general purpose financial statements have been prepared pursuant to sections 176 and 177 of the Local Government Regulation 2012 (the Regulation) and other prescribed requirements. In accordance with Section 212(5) of the Regulation, we certify that: (i) the prescribed requirements of the Local Government Act 2009 and Local Government Regulation 2012 for the establishment and keeping of accounts have been complied with in all material respects; and (ii) the general purpose financial statements, as set out in the pages 1 to 45, present a true and fair view in accordance with Australian Accounting Standards of Council's transactions for the financial year and financial position at the end of the year.

George Seymour

Ken Diehm

MAYOR

CHIEF EXECUTIVE OFFICER

05/10/2018

Fraser Coast Regional Council 2017-18 Annual Report

112

Queensland â&#x20AC;˘ â&#x20AC;˘ Aud it Office â&#x20AC;˘

Better public services

INDEPENDENT AUDITOR'S REPORT To the Councillors of Fraser Coast Regional Council

Report on the audit of the financial report Opinion I have audited the accompanying financial report of Fraser Coast Regional Council (the Council). In my opinion, the financial report: a)

gives a true and fair view of the Council's financial position as at 30 June 2018, and of the financial performance and cash flows for the year then ended

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 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the management certificate given by the Mayor and the 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 Auditor's 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 Accounting Professional and Ethical Standards Board's APES 110 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 the Fraser Coast Regional Council annual report for the year ended 30 June 2018, but does not include the financial report and my auditor's report thereon. At the date of this auditor's report, the other information was the current year financial sustainability statement and the long-term financial sustainability statement. 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.

113

Fraser Coast Regional Council 2017-18 Annual Report

•

Queensland

• • Aud it Office Better public services

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 of the Council. Auditor's responsibilities for the audit of the financial report 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 auditor's report that includes 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 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.

Fraser Coast Regional Council 2017-18 Annual Report

114

• Queensland • • Aud it Office Better public services

•

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 am required to draw attention in my auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor's report. 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 2018: a)

I received all the information and explanations I required.

In my opinion, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.

16 October 2018 Patrick Flemming as delegate of the Auditor-General

115

Queensland Audit Office Brisbane

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Sustainability statements for the year ended 30 June 2018

Contents

Page

Sustainability statements 1. Current-year financial sustainability statement

117

2. Auditor's report on the current-year sustainability statement

119

3. Long-term financial sustainability statement (unaudited)

122

Fraser Coast Regional Council 2017-18 Annual Report

116

Fraser Coast Regional Council Current year financial sustainability statement for the year ended 30 June 2018

Measures of financial sustainability Council's performance at 30 June 2018 against key financial ratios and targets 2018

Target

4.28%

0 - 10%

Performance indicators 1. Operating surplus ratio Net result (excluding capital items) Total operating revenue (excluding capital items)

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) Depreciation expense

71.86%

more than 90%

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 Total operating revenue (excluding capital items)

(50.35%)

less than 60%

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 Council's audited general purpose financial statements for the year ended 30 June 2018.

117

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Current year financial sustainability statement for the year ended 30 June 2018

Certificate of accuracy

This current year financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the Regulation). In accordance with Section 212(5) of the Regulation we certify that this current year financial sustainability statement has been accurately calculated.

George Seymour

Ken Diehm

MAYOR

CHIEF EXECUTIVE OFFICER

05/10/2018

Fraser Coast Regional Council 2017-18 Annual Report

118

â&#x20AC;˘ Queensland â&#x20AC;˘ â&#x20AC;˘ Audit Office Better public services

INDEPENDENT AUDITOR'S REPORT To the Councillors of Fraser Coast Regional Council Report on the Current Year Financial Sustainability Statement Opinion I have audited the accompanying current year statement of financial sustainability of Fraser Coast Regional Council for the year ended 30 June 2018 comprising the statement, explanatory notes, and the certificate of accuracy given by the Mayor and the 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 Fraser Coast Regional Council for the year ended 30 June 2018 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 Auditor's 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 council's reporting 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 Fraser Coast Regional Council's annual report for the year ended 30 June 2018, but does not include the current year financial sustainability statement and my auditor's report thereon. At the date of this auditor's report, the other information was the general purpose financial statements and the long-term financial sustainability statement. 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.

119

Fraser Coast Regional Council 2017-18 Annual Report

Queensland • • Audit Office •

Better public services

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. Auditor's responsibilities for the audit 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 or error, and to issue an auditor's report that includes 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 council's future sustainability. 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's internal control.

•

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.

Fraser Coast Regional Council 2017-18 Annual Report

120

• Queensland • • Audit Office Better public services

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. 16 October 2018 Patrick Flemming as delegate of the Auditor-General

121

Queensland Audit Office Brisbane

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council Long-term financial sustainability statement (unaudited) prepared as at 30 June 2018

Measures of financial sustainability Council's performance at 30 June 2018 against key financial ratios and targets and projected forecast performance. Target

Actual 2018

2019

2020

2021

2022

Forecast 2023 2024

2025

2026

2027

2028

0 - 10%

4.28%

1.43%

1.68%

1.16%

1.17%

1.97%

2.55%

2.86%

2.29%

2.64%

77.42%

77.27%

94.24%

Performance indicators 1. Operating surplus ratio Net result (excluding capital items) Total operating revenue (excluding capital items)

2.65%

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 Depreciation expense (infrastructure assets)

more than 90%

71.86%

127.91% 123.30% 113.27% 104.06%

93.18%

86.01%

84.07%

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 Total operating revenue (excluding capital items)

less than 60% (50.35%)

(39.07%) (26.28%) (17.55%)

(8.15%)

(11.78%) (19.26%) (29.10%) (41.84%) (51.11%) (60.77%)

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

Fraser Coast Regional Council 2017-18 Annual Report

122

Fraser Coast Regional Council Long-term financial sustainability statement Certificate of accuracy for the long-term financial sustainability statement prepared as at 30 June 2018 This long-term financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the Regulation). In accordance with Section 212(5) of the Regulation we certify that this long-term financial sustainability statement has been accurately calculated.

123

George Seymour

Ken Diehm

MAYOR

CHIEF EXECUTIVE OFFICER

05/10/2018

Fraser Coast Regional Council 2017-18 Annual Report

Section 6: INDEX OF LEGISLATIVE REQUIREMENTS

Fraser Coast Regional Council 2017-18 Annual Report

124

State Government Legislation requires Council to include specific information in its Annual Report. The table below provides and index for ease reference to the location of the legislative requirements disclosed within this Annual Report Local Government Act 2009 Requirement Section 41 Section 45(a)(b)(c)(d) Section 201(1)(a)(b)(2)(3)(4) Local Government Regulation 2012 Section 183(a) Section 183(b) Section 183(c) Section 183(d) Section 184 Section 185(a)(b) Section 186 (a)(b)(c)(d)(i)(ii)(e)(i)(ii)(iii) (f)(i)(ii)(iii)(iv)(v)(vi)(vii)(viii) Section 187(a)(a)(b)(2)(a)(i)(ii)(iii)(b) Section 188(1)(a)(b)(c)(d)(e)(2) Section 189(a)(b)(i)(ii) Section 190(1)(a)(b) Section 190(1)(c) Section 190(1)(d)(i)(ii) Section 190(1)(e) Section 190(1)(f) Section 190(1)(g) Section 190(1)(h) Section 190(1)(i) Section190(1)(j) Section 190(2)(a)(b)(c)(d)

125

Title Identifying beneficial enterprises Identifying significant business activities Senior management remuneration

Page/s information can be found 38 38 36

General purpose financial statement audited by the Auditor-General Current-year financial sustainability statement audited by the Auditor-General Long-term financial sustainability statement (refer Section 178) Auditor-General’s Audit reports about the general purpose financial statement and the current-year financial sustainability statement Community Financial Report Particular resolutions made under s.250(1) and s.206(2) Councillors

Administrative Action Complaints Overseas Travel Expenditure on grants to community organisations Assessment of 5-year corporate plan and annual operational plan Annual operations report for each commercial business unit Service, facility or activity Tenders Registers Concessions Internal Audit Investigation notices – competitive neutrality complaints Responses on CQA’s recommendations on competitive neutrality complaints under s.52(3) Annual operations report for commercial business unit

39 40 40 10-20

119 122 113 58-64 28 & 39 28-32

128 51 51 51 52 53-55 52 52 128

Fraser Coast Regional Council 2017-18 Annual Report

Fraser Coast Regional Council 77 Tavistock Street, Hervey Bay 211-213 Adelaide Street, Maryborough Forgan Terrace, Tiaro PO Box 1943, Hervey Bay QLD 4655 www.frasercoast.qld.gov.au Phone: 1300 79 49 29 Fax: (07) 4197 4455 Email: enquiry@frasercoast.qld.gov.au

Fraser Coast Regional Council 2017-18 Annual Report

126

Attachment 1: WIDE BAY WATER OPERATIONS REPORT 127

Fraser Coast Regional Council 2017-18 Annual Report

2017/18

ANNUAL OPER ATIONS REP ORT

A LOOK BACK

CONTENTS OVERVIEW About us...........................................................................................................................................4 Annual Performance Plan..................................................................................................................5 Local Government Directions...........................................................................................................56 OBJECTIVES Vision................................................................................................................................................6 Business Objectives...........................................................................................................................6 GOVERNANCE STRUCTURE & COMMITTEE Committee Profiles............................................................................................................................8 Members attendance at meetings......................................................................................................9 Meeting dates...................................................................................................................................9 EXECUTIVE TEAM Profiles............................................................................................................................................10 PERFOMANCE SUMMARY Key Financial Performance.............................................................................................................. 12 Key Non-Financial Performance...................................................................................................... 13 OPERATIONAL SUMMARY Water.............................................................................................................................................. 14 Sewerage........................................................................................................................................15 Engineering..................................................................................................................................... 16 Environment....................................................................................................................................18 Reuse.............................................................................................................................................20 Quality............................................................................................................................................22

WBW 2017/18 ANNUAL OPERATIONS REPORT

WBWâ&#x20AC;&#x2122;s major operating assets include one dam and three weirs, four water treatment plants (WTP), eight sewerage treatment plants (STP) and two integrated reuse schemes. Nikenbah STP

A LOOK BACK

OVERVIEW Wide Bay Water (WBW) is a Commercial Business Unit of the Fraser Coast Regional Council providing water and sewerage services to the Fraser Coast. This Annual Operations Report has been prepared in accordance with s190 of the Local Government Regulation 2012. The report provides a summary of WBWs major activities over the 2017/18 reporting year, including an assessment of our performance against the financial and non-financial targets agreed in our Annual Performance Plan.

ABOUT US WBW’s major operating assets include one dam and three weirs, four water treatment plants (WTP), eight sewerage treatment plants (STP) and two integrated reuse schemes. At the end of the 2017/18 year, the reticulation network comprised 1120km of water mains, 791km of sewerage mains and 72km of effluent reuse mains. Services provided include management of WBW’s raw water supply schemes and its customers, water treatment and distribution, sewerage collection and treatment and effluent reuse. WBW remains a proactive member of the National Water Industry, contributing to research and innovation, improvements in service delivery, and partnership services with other water utilities. WBW is governed by an Executive Management team, and NonExecutive Advisory Committee that consists of external members and Councillors and is appointed under s264 of the Local Government Regulation 2012. The Organisation continues to adopt best-practice standards in service and performance delivery that support its operations and their compliance with the broad regulatory environment in which it operates. WBW hold third party accreditations in Quality (ISO 9001) and Food Safety (ISO 22001). WBW’s Scientific Services Laboratory is accredited by the National Association of Testing Authorities (NATA) to standard ISO 17025. The Laboratory continues to provide an extensive range of testing services for internal and external customers under the business name WaterOne Laboratory Services. WBW’s Engineering unit provides services to internal and external customers in the form of strategic planning, development services, design of pump stations and treatment plants, network modelling, delivery of capital development projects and operational technical support.

WBW 2017/18 ANNUAL OPERATIONS REPORT

WBW provides services for sewerage collection and treatment and effluent reuse.

Hebblewhite Plantation

ANNUAL PERFORM ANCE PL AN The WBW Annual Performance Plan 2017/18 was resolved by Council at its Special Meeting No. 4 held on Wednesday 19 July 2017. The Annual Performance Plan (the Plan) was established in accordance with the requirements of section 175 (2) of the Local Government Regulation 2012. The plan outlines, among other things, the nature and extent of WBWâ&#x20AC;&#x2122;s operations, its vision and objectives, and the financial and non-financial performance targets that will guide its operations of the 2017/18 year. No changes were made to the Performance Plan in 2017/18.

LOCAL GOVERNMENT DIRECTIONS There were no local government directions issued to WBW during 2017/18.

A LOOK BACK

OBJECTIVES VISION Our vision is to be an efficient customerfocused business developing and delivering sustainable water services for the benefit of the Fraser Coast Community.

BUSINESS OBJECTIVES Invest in our people We are committed to developing our people and maintaining a healthy (physically and psychologically) and safe (zero harm) workplace.

Deliver potable and re-use water We will treat and deliver water and treat sewage and provide associated services in an efficient, effective and prudent manner to agreed levels of service.

Manage our assets We will optimally maintain and invest in our asset base and work with our stakeholders to develop best-fit solutions.

Enhance corporate sustainability We will manage our revenues, costs and risks, and new profitable revenue streams to underpin our financial performance targets.

Improve the environment We will minimise our adverse impacts and improve our environment for future generations.

Engage customers and stakeholders We will strengthen relationships with customers and stakeholders to meet current foreseeable challenges.

WBW 2017/18 ANNUAL OPERATIONS REPORT

WBWâ&#x20AC;&#x2122;s leading effluent reuse network continued to deliver environmental benefits to the Fraser Coast Community. Four Mile Effluent Reuse Area

A LOOK BACK

GOVERNANCE STRUCTURE & COMMIT TEE COMMIT TEE PROFILES Cliff Searle

Lance Stone

Anne Maddern

Chairman

Deputy Chair

Committee

Cliff was admitted as a Member of The Association of Hydraulic Services Consultants Australia (Qld) Inc. (AHSCA) in 1993 and in 2015 was awarded life membership of the AHSCA. In 1985, Cliff was elected as an Alderman for the Hervey Bay City Council and reelected in 1989. During his six year period in Council his major focus was water and sewerage. Cliff operated his own hydraulic design business, Water Wise Design Pty Ltd up until January 2015 at which time he decided to take on retirement and spends many a day enjoying his favourite pastime, golfing.

Lance is a graduate of the Australian Institute of Company Directors. He is Managing Director of a group of Community Based Organisations, private companies and social enterprises. Lance is currently the:

• President – Maryborough Chamber of Commerce • Deputy Chair – Wide Bay Water • Treasurer – Maryborough Neighbourhood Centre • MD – Fraser Coast Training Employment Support Service Inc. (TESS) RTO # 1826 • MD – Maisie Kaufmann Learning Centre Inc. RTO #5205 • MD – Coral Sea Training RTO #32221 • MD – Fraser Coast Palliative Care and Active Plus Life-Style Options • Board Member Horizon Housing Limited • Board Member – St Marys College Maryborough QLD • Board Member – Maryborough State High School • Member – Jobs Australia • Member – Jobs Fraser Coast

Lance’s other community interests include; Family, Sport, Youth Mental Health, Life Long Learning, Homelessness, Social Justice and Social Inclusion.

Anne is a long-term resident of Maryborough and former local small business owner. Anne’s many years working in the real estate industry as a property valuer has given her a broad understanding of accounting, economics, land law, building construction, surveying and town planning as well as skills in operating a business. Anne also previously held the former position of the Member for Maryborough in the State Parliament. Her focus is on working collaboratively to build a better community.

WBW 2017/18 ANNUAL OPERATIONS REPORT

Bruce Christopher

Committee

Bruce is a chartered professional Mechanical Engineer and Member of the Australian Institute of Company Directors (GAICD). He is the Managing Director of Brisbane based ARC Freelance Management, which provides advisory services for boards, business owners and managers, focused on operational diligence, turnaround, productivity, growth and merger integrations.

Randal McLellan

Committee

Dr McLellan has held and still holds a number of Board positions in various capacities and has a particular interest in good corporate governance while maintaining an efficiency and outcome focus. Randal served two terms as a Councillor for the Hervey Bay City Council from 1997 to 2004. Randal is also a Member of the Australian Institute of Company Directors (GAICD).

Members attendance at Committee meetings Cliff Searle

Lance Stone

Randal McLellan

Bruce Christopher

Anne Maddern

Stuart Taylor*

Darren Everard*

*23 May 2018 Stuart Taylor resigned, Darren Everard appointed

Committee meeting dates 01/07/2017 â&#x20AC;&#x201C; 30/06/2018 8 August 26 September 27 October 5 December 23 January 20 March 27 April 26 June

Stuart Taylor

Darren Everard

Committee

Stuart was elected to the Fraser Coast Regional Council in April 2012. He held a position on the WBWWS Advisory Committee from August 2017 to May 2018.

Darren was elected to the Fraser Coast Regional Council in April 2012 and joined the WBWWS Advisory Committee in May 2018. 9

A LOOK BACK

EXECUTIVE TEA M PROFILES Peter Care

Mark Vanner

Director

Executive Manager Regulation & Waste Services

With more than 30 years’ experience in the Australasian water industry, Peter has been involved in the planning, design, construction, operation and maintenance of several innovative water and sewerage infrastructure projects in both Australia and New Zealand. These have been at the forefront of technology and have gained national recognition in maximising the potential of new infrastructure and minimising the operational and environmental impacts to the community. Peter is a member of the Australian Institute of Company Directors and sits on a number of water industry groups within Australia. His industry experience incorporates the planning, development, operation and management of water infrastructure activities in Australia, New Zealand, China, Hong Kong and the Pacific Islands.

Mark joined WBW in 2006 in the area of catchment and bulk water management. In 2018/19 he held the position of Executive Manager Regulation and Waste Services and spent time backfilling as A/Director WBW and A/Executive Manager Regulatory Services FCRC. Mark’s background in compliance and regulation includes quality systems and regulatory affairs positions within the medical device and biotechnology field. Mark holds a Bachelor’s Degree in Aquatic Resource Management, Master of Environmental Management and Post Graduate Certificate in Professional Legal Studies. Mark is a graduate of the Australian Institute of Company Directors (GAICD).

WBW 2017/18 ANNUAL OPERATIONS REPORT

Trevor Dean

Denis Heron

Executive Manager Engineering

Executive Manager Operations

Trevor has worked for Council and its predecessors since 1995 and directly managed the delivery of the majority of WBW’s key infrastructure projects from 1999 to 2010 including key trunk pipelines, pumping stations, treatment plants, and dams. A number of these projects were recognised by industry bodies winning project awards at state levels with Engineers Australia, AWA, and IPWEAQ. He was awarded an Associate Degree in Civil Engineering in 2001 and a Bachelor of Engineering (Civil) in 2006, both from the University of Southern Queensland. He is both a Registered Professional Engineer Queensland (RPEQ) and a Registered Professional Engineer (RPEng), a member of the Australian Institute of Company Directors, Chairman of Queensland’s Water Directorate Technical Reference Group, and a member of the WBBROC Urban Water Technical Committee.

Denis started his career with WBW in 1993 as the architect of Hervey Bay’s award winning water recycling scheme. During his 25 year career with Council and WBW, Denis has undertaken a number of roles from project concept through to the planning, design, construction, operation and maintenance. As part of a team, he has made major contributions to developing and delivering improved services through water demand management, sewer rehabilitation and water recycling on the Fraser Coast. As Executive Manager Operations, Denis is responsible for the efficient delivery of water and sewerage services to the Fraser Coast community. Denis is also a Member of the Australian Institute of Company Directors.

As Executive Manager of Engineering, Trevor is responsible for managing an interdisciplinary team that facilitate WBW’s interaction with private developers, undertake short and long term planning, deliver infrastructure projects, provide technical support to Operations, and administer the Asset Investment Systems.

A LOOK BACK

PERFORM ANCE SUMM ARY KEY FINANCIAL PERFORM ANCE Financial Performance Indicators and Targets Indicator

Frequency

Unit

Target

Actual

Net profit before tax payable

Annual

6.6

20.7

Net profit as a % of total revenue

Annual

10.6

26.9

Net profit after tax payable

Annual

5.0

14.96

Total distribution to FCRC

Annual

9.7

11.2

Dividend ratio

Annual

28.3

Debt servicing ratio (I&R / revenue)

Annual

16.5

15.8

Interest cover (EBITDA / interest expense)

Annual

Times

13.3

10.5

WBW 2017/18 ANNUAL OPERATIONS REPORT

KEY NON-FINANCIAL PERFORM ANCE 2017/18 Annual non-financial performance indicators and targets Hervey Bay and Maryborough

Unit

Target

Actual

Time for restoration of service within five hours – percentage of unplanned incidents

95%

99%

Minimum water pressure at the property boundary for 99% of connected properties

kPa

200

>200

L/min

>20

ILI

1.5

1.48

Water at the point of delivery will meet National Health and Medical Research Council Health Guidelines for Australian Drinking Water

100%

99.6% #1

Water quality at point of delivery (physical and chemical parameters) will meet National Health and Medical Research Council Aesthetic Drinking Water Guidelines

>95%

99.8%

Working days

Water Continuity and reliability of water supply

Minimum flow at the property boundary for 90% of connected properties System water loss Water quality

New service connections – water Installation of all 20mm and 25mm diameter service connections (average time from receipt of application and payment fee) Service connections greater than 25mm diameter: (a)

Design and notification of construction price (average time from completed application)

Working days

(b)

Construction time (average time from payment of fees) subject to building and development regulations being met

Working days

Total sewage overflows per 100km main

Number

<10

1.3

Sewage overflows on to customer property per 1,000 connections

Number

0.3

Sewer odour complaints per 1,000 connections

Number

<10

1.4

Effluent complies to Environmental Licence

100%

99% #2

Sewerage reuse on land for 90% of the year

100%

Sewerage Effective transport of waste effluent

New service connections – sewer Completion of new sewer connections: (a)

Design and notification of construction price (average time from completed application)

Working days

Construction time (average time from payment of fees) subject to building and development regulations being met

Working days

Queensland Government – Reportable Indicators QG 4.5

Total water main breaks per 100km of water main

Number

<20

3.9

QG 4.6

Total sewerage main breaks and chokes per 100km sewerage main

Number

<60

7.1

QG 4.7

Incidence of unplanned interruptions to supply per 1000 connected properties

Number

<100

QG 4.8

Average response time for incidents causing an interruption to supply

Minutes

<60

QG 4.9

Average response time for incidents causing an interruption to sewerage collection

Minutes

<60

QG 4.10

Drinking water quality complaints per 1000 connected properties

Number

QG 4.11

Total water and sewerage complaints per 1000 connected properties

Number

<40

16.2

#1 Multiple THM guideline value exceedances, one E.coli exceedance and one Total Chlorine exceedance. #2 17 parameter exceedances at Aubinville, Pulgul Creek and Toogoom STPs. Total of 1,313 samples analysed.

A LOOK BACK

OPER ATIONAL SUMM ARY WATER Lake Lenthall supplies water to Hervey Bay, Torbanlea, Howard, Burrum Heads and surrounds.

9,458ML potable water treated & delivered to customers

Lake Lenthall

13,300m of new distribution network water mains constructed

Reservoir levels

4,319

558

water meters replaced

new service connections completed

Lenthall 2017/18 Teddington 2017/18 Lenthall 2016/17 Teddington 2016/7 160 150 140 130 120

Percentage %

110 100 90 80 70 60 50 40 30 20 10 0

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

WBW 2017/18 ANNUAL OPERATIONS REPORT

OPER ATIONAL SUMM ARY SEWER AGE

6,467ML sewage collected from customers across FCRC

278 new properties connected

Pulgul STP Intermittent Decanted Extended Aeration Lagoon with new decanters in place

5,378m

6,148m

of gravity sewer mains relined

new gravity collection sewers constructed by developers

82,140m sewer network cleaned & CCTV inspected 15

A LOOK BACK

OPER ATIONAL SUMM ARY ENGINEERING

$21.8m capital investment into the Fraser Coast’s water and sewerage infrastructure

Completed Nikenbah water & sewage infrastructure project

2018 WetSide waterslide completed

WetSide Water Slides

M A JOR GROW TH PROJECTS

M A JOR RENEWAL PROJECTS

• The Nikenbah water and sewage infrastructure project (completed).

• Bazaar Street, Maryborough water main replacement (underway).

• The River Heads water main (completed).

• North Street, Maryborough water main (completed).

• Howard sewerage scheme (continuing).

• Significant sewer relining programme (ongoing).

• Increase of sewage treatment capacity – Hervey Bay (continuing).

• Maryborough reticulation water main replacements (ongoing).

WBW 2017/18 ANNUAL OPERATIONS REPORT

WBW has delivered over $21.8m of capital investment into the Fraser Coast’s water and sewerage infrastructure. Nikenbah Structure Pump Station 95

M A JOR IMPROVEMENT PROJECTS • Boys Avenue reservoir reconfiguration (continuing). • Aubinville STP augmentation (continuing). • WetSide Waterslide (completed). • Urraween reservoir pumping station upgrade.

Nikenbah Structure Rising Main 17

A LOOK BACK

OPER ATIONAL SUMM ARY ENVIRONMENT

Nil outstanding matters from eight compliance inspections

WBW is commited to community education and provides water cycle education tours to the public.

18,004 community members educated on the importance of waste minimisation & water conservation

Water Cycle education tour

10th annual

school water & waste wise competition was hosted

statutory environmental reports prepared and submitted within statutory timeframes to the Department of Environment and Science.

statutory environmental reports prepared and submitted within statutory timeframes to the Department of Natural Resources and Mines.

WBW 2017/18 ANNUAL OPERATIONS REPORT

Fish stocking at Lake Lenthall

22 land management and sustainable practice programs conducted in the drinking water catchments and on WBWWS land, including fence maintenance, vegetation monitoring, weed management and fire prevention and reduction activities.

A LOOK BACK

OPER ATIONAL SUMM ARY REUSE

4,739ML of recycled water was reused on land for the 2017/18 financial year.

100% achieved combined reuse percentage on the Fraser Coast of 100% of Average Dry Weather Flow received at the regions STPs

$ 49% effluent reuse continues to support the local economy with third party customers reusing 49% of the total volume reused in the financial year

Hebblewhite Plantation

Pulgul A Spotted Gum SP5 (Mean Diameter CM)

5,868m3 of biosolids were beneficially reused and applied to WBW Plantations and approved Third Party Land

0 20

6 2011

7 2012

8 2013

9 2014

10 2015

11 2016

12 2017

13 2018

WBW 2017/18 ANNUAL OPERATIONS REPORT

62,279ML of recycled water has been beneficially reused on land in the past 25 years.

Dreamtime Plantation

Dreamtime Spotted Gum SP173 (Mean Diameter CM)

n/a 2011

n/a 2012

3 2013

4 2014

5 2015

6 2016

7 2017

8 2018

A LOOK BACK

OPER ATIONAL SUMM ARY QUALIT Y

ISO 9001 Quality Management certification

ISO 22000 Food Safety Management certification

ISO 17025 Laboratory Management certification

Flow Injection Analyser (FIA) in foreground for testing Nutrient analysis and Soluble Aluminium. Background shows Atomic Absorption Spectrophotometer (AAS) for analysing metals such as copper, iron, manganese & zinc.

Wide Bay Water 29-31 Ellengowan St Urangan, Hervey Bay Qld 4655 1300 79 49 29 07 4197 4455

http://www.frasercoast.qld.gov.au/wide-bay-water