2015/16 Annual Report by Logan City Council

STRONG FOUNDATIONS for a bright future

ANNUAL REPORT 2015/2016

The essence of the City of Logan is its people, places, heart and spirit. The city is home to almost 310,000 people from more than 215 different cultures, creating a diverse, rich and multi-faceted community. Logan is a young city, with around half its residents aged 30 or younger adding an extra sense of energy and enthusiasm to the community. Given its central geographic location and available young workforce, Logan has thriving commercial, retail and manufacturing precincts as well as healthy service and wholesale industries. Logan is ideally located between Brisbane, Ipswich and the Gold Coast, and is focused on growing a strong economy, creating jobs and providing a quality lifestyle for all.

ON THE COVER Our theme for this year’s annual report is ‘Strong Foundations for a Bright Future’. This theme echoes the hard work and dedication of the outgoing Council, Mayor and CEO as well as the renewed energy and commitment demonstrated by the new Council in continuing to progress our 2013-2018 Corporate Plan priorities. We are now three years into the implementation of our current Corporate Plan and much of the foundation work has been completed. In 2015/2016 we have finalised a number of key foundational projects including: the Logan: City of Choice: Two-Year Action Plan; the Beenleigh Town Square redevelopment; drafting of our Local Government

Infrastructure Plan and Long-Term Infrastructure Plan; delivery of Phase 1 of the Economic Development Strategy; and implementation of the City Pride Program and City Image Campaign, just to name a few. These projects and initiatives will be the building blocks for a new set of priorities which will frame future projects and initiatives in the city. They reflect our ongoing commitment to provide the community with quality facilities and services. Centre image on the front cover: An artist’s impression of the vision for the Meadowbrook Draft Master Plan.

Contents OUR ANNUAL REPORT

COMMERCIAL BUSINESS UNITS

Introduction 6

Logan Water

100

Our vision, purpose, twin goals and values

Water branches annual performance

103

plan report

Performance summary 2015/2016 in review

Logan Waste Services

105

Our city

Logan Waste Services branch annual

109

The City of Logan in profile

Mayor’s message

Acting CEO’s message

2015/2016 financial summary

Revenue Policy

114

How we engage our community

Debt Policy

114

Awards received in 2015/2016

Service charges

115

Financial sustainability

116

Tenders and expressions of interest

116

Community service obligations

117

Registers open for inspection

117

Code of Competitive Conduct

118

performance plan report

ADDITIONAL STATUTORY INFORMATION

OUR COUNCIL Organisational structure

Democratic governance

Corporate governance

Working at Logan City Council

Internal audit, risk management and business

for business activities Administrative action complaint

continuity planning

PERFORMANCE REPORTING Our framework

CEO Directorate 2015/2016 summary

Road and Water Infrastructure

stream summary 2015/2016 Community and Customer Services

121

Local Government Finance Standard disclosures

121

Quality assurance

121

FINANCIAL REPORTING 124

Community financial report

125

Annual financial statements

137

APPENDICES

stream summary 2015/2016 Strategy and Sustainability

National Competition Policy reforms

Financial performance highlights

stream summary 2015/2016 Organisational Services

119

disclosures 2015/2016

stream summary 2015/2016

Expenses Reimbursement Policy

188

Priority area: Building our major infrastructure (MI)

Legislative index

190

Priority area: Building our city’s image (CI)

Global Reporting Initiative (GRI) Content Index

194

Priority area: Building our economic base (EB)

Glossary of terms

196

Priority area: Building our environment (E)

Contact information

199

Priority area: Building our service excellence (SE)

Index

200

Priority area: Building the wellbeing of our

communities (WC) Priority area: Managing growth in our city (MG)

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

STRONG FOUNDATIONS for a bright future

Our annual report This introductory section of the Logan City Council 2015/2016 Annual Report outlines information about our organisation and the city, gives a summary of our operational and financial performance for the 2015/2016 financial year, introduces our Mayor and Acting Chief Executive Officer and highlights the awards won by our staff and the organisation.

Strong foundations for a bright future: The Logan Together collective impact initiative aims to close the gap so that by the age of eight, Logan children will be as healthy as any other group of Australian children and reach agreed health, education and social milestones.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Introduction This Annual Report details our performance during the 2015/2016 financial year in meeting the strategic priorities outlined in our Corporate Plan 2013–2018 and details our long-term financial planning. We provide more than 90 programs and services to the community, and this report details our achievements and the challenges faced over the past 12 months to ensure we remain open and accountable to our stakeholders. This information is relevant to Logan residents and ratepayers, local business owners, potential investors, community groups, government agencies, funding bodies, and current and potential staff. The objectives of the annual report include: • communicating our vision and commitments to the community • reporting on our performance in delivering the Corporate Plan priorities and other key achievements for the organisation • instilling community confidence in our ability to show strong leadership and deliver on our

Our vision, purpose, twin goals and values OUR VISION Logan City: Building our communities, our businesses and our pride.

PURPOSE To make a positive difference in people’s lives through the quality of the services we provide.

OUR TWIN GOALS To be an organisation where our staff pursue excellence in all that they do and enjoy high levels of personal job satisfaction.

promises • illustrating our commitment to accountable and transparent government • promoting the Logan area and Council to potential investors for economic development • building confidence and satisfaction in the partnerships that are being created with community groups, local authorities and industry leaders through key projects • recognising the significant achievements of our staff • marketing Council as an employer of choice for potential recruits • meeting statutory requirements under the Local

OUR VALUES At Logan City Council, we value:

Our people We respect, care about, support and develop our people. We provide a safe workplace where people can explore opportunities, enjoy their work and achieve high levels of personal job satisfaction.

Excellence We create an environment where people are clear about expectations and are accountable for achieving excellent outcomes. We foster enquiry, innovation and creativity with a focus on continuous improvement.

Government Act 2009 and Local Government Regulation 2012.

Leadership We encourage leadership aligned to our values at all levels of our organisation. We work together to best use our skills and knowledge to pursue challenges and to deliver excellent services to our customers and our community.

Integrity We are honest and open by saying what we believe, doing what we say and giving permission for others to do the same. We take responsibility, individually and as a team, for all that we do.

STRONG FOUNDATIONS for a bright future

Performance summary We are reporting against Logan City Council's 2013–2018 Corporate Plan, which is focused on seven priority areas. Our Corporate Plan identifies our councillors' long-term city vision and priority areas over a five-year period. We deliver on our priorities by implementing our annual Operational Plan, which includes key projects and key performance indicators (KPIs) that directly respond to the priority areas from the Corporate Plan (refer to our strategic planning and performance management framework on page 50 for more information). Additional projects and KPIs that do not directly align to one of the seven priority areas, but still have a strategic focus and are of community interest, were included in the 2015/2016 Operational Plan. These are listed under the relevant stream and branch. We focus on developing meaningful KPIs in all branch business plans and detailing key projects at the branch and organisational level. This will continue over the coming years as we strive to continuously improve both our internal and external reporting processes and accountability. We produce an organisational report card every three months. Our organisational leadership team uses this information to identify strengths and areas for improvement within the business, and monitor the effectiveness of new initiatives or changes made to core services. The organisational report card provides a set of 16 high-level key measures that enable the organisational leadership team to monitor key organisational sustainability indicators, such as investment returns against industry benchmarks, working capital ratio, and timely mitigation of extreme and high risks. The balanced scorecard approach enables us to apply critical perspectives to the performance areas we most want to measure: customer service delivery, finance, internal business processes, organisational culture, governance, innovation and learning.

2015/2016 SCORECARD We produce a quarterly Operational Plan performance report (available on our website), which provides a more detailed analysis of our performance and identifies the progress of projects in meeting targets and deliverables. Any projects that fall behind or do not proceed during the financial year, as well as KPIs where performance has dropped below the lowest acceptable performance limit are highlighted. In cases where projects are not on track, mitigating action is also identified. The following is a summary of our performance in delivering our 2015/2016 Operational Plan, which consisted of 97 projects and/or KPIs: • 82 projects and KPIs (85 per cent) met or exceeded acceptable performance targets. This means projects were completed before 30 June 2016 and KPI results were equal to or greater than the set performance target. • 15 (15 per cent) did not meet set performance targets. Of these: – Five KPIs were below the desired level of performance as at 30 June 2016 but exceeded the lowest acceptable performance limit. – Six projects were not completed by 30 June 2016 (these projects will be carried forward and included in the 2016/2017 Operational Plan for completion in the new financial year). – Three KPIs were below target and below the lowest acceptable performance limit. – One project did not proceed in 2015/2016, based on a Council decision. A detailed summary of our performance against the 2015/2016 Operational Plan is shown on the following pages. A more detailed analysis of performance results is provided for each priority area and stream in the Performance Reporting section (pages are noted at the end of each priority summary).

Performance against our 2015/2016 Operational Plan is measured against project milestones and targets set at the beginning of the financial year. This ensures meaningful quarterly operational performance reporting to Council and the community.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Performance scorecard definitions

OPERATIONAL PLAN PRIORITY AREAS

PROJECTS

Completion risk: The project is behind schedule and there is a risk of it not being completed in this financial year. Note: This scorecard option is specific to projects only and is only applicable to reporting in the first three quarters of the financial year. At the end of the fourth quarter, a project with a status of ‘completion risk’ would be considered ‘undeliverable’. Undeliverable: The project will not be delivered this financial year. Not proceeding: A Council decision has been made to cancel the project. Note: This scorecard option is specific to projects only.

KPIs Meeting/exceeding target: Performance for this indicator is meeting or exceeding the target level.

PRIORITY FOCUSES MI1: Increase emphasis and funding for maintenance and upgrade of local road networks MI2: Achieve high-level delivery of annual capital works program MI3: Consider and adopt a plan for the harmonisation of water rates, including assessment of trickle feed consumers See page 68 for more details.

89% PROJECTS/KPIS

Monitor: The project is behind schedule but will still be delivered this financial year.

Building our major infrastructure (MI)

11%

Building our city’s image (CI) PRIORITY FOCUSES CI1: Adopt and implement a three-year city image campaign

See page 72 for more details.

67% PROJECTS/KPIS

On track/completed: The project is meeting planned targets or all planned milestones have been achieved (project closure).

33% 0%

Building our economic base (EB)

Monitor: Performance is below the target level but is still within the acceptable performance variance.

PRIORITY FOCUSES

Below target: Performance is outside of the acceptable performance variance.

EB2: Attract new businesses

EB1: Support existing businesses

EB3: Enhance local employment opportunities and local jobs containment EB4: Enhance focus on tourism, including eco-tourism opportunities

See page 74 for more details.

PROJECTS/KPIS

EB5: Proactively market SouthWest 1 and SouthWest 2 developments

80%

10% 10%

Building our environment (E) PRIORITY FOCUSES E1: Enhance our rivers and wetlands with our community E2: Build our future wildlife corridors through vegetation, koala and water quality offsets and 89% focused community partnerships E3: Reduce Council’s energy costs and carbon footprint through innovation and new technology See page 79 for more details.

STRONG FOUNDATIONS for a bright future

PROJECTS/KPIS

11%

OPERATIONAL PLAN STREAM PROJECTS/KPIs

Building our service excellence (SE) PRIORITY FOCUSES SE1: Maintain high levels of quality customer service

Road and Water Infrastructure stream (RWI)

SE2: Enhance community communication and engagement

Projects/KPIs relating to this branch:

PROJECTS/KPIS

See page 82 for more details.

86%

PROJECTS/KPIS

• Road Infrastructure Planning

SE3: Pursue alternative sources of revenue to diversify Council’s income streams SE4: Subject to the necessary resourcing being available, Council commits to maintaining the programs and services listed in the Corporate Plan at or near current levels

100%

See page 56 for more details.

14%

Community and Customer Services stream (CCS) Projects/KPIs relating to these branches:

Building the wellbeing of our communities (WC)

• Animal and Pest Services

WC1: Consider the draft Action Plan compiled from the Logan: City of Choice Summit. Agree on an appropriate role and determine appropriate responsibilities for Council in response to that plan

• Sport, Leisure and Facilities See page 59 for more details.

Projects/KPIs relating to these branches: • City Standards

Managing growth in our city (MG) See page 65 for more details.

PRIORITY FOCUSES MG1: Adoption and implementation of a new city-wide planning scheme MG2: Development assessment to be best practice

Organisational Services stream (OS) Council’s Organisational Services stream does not have any specific projects or KPIs in the 2015/2016 Operational Plan.

73% PROJECTS/KPIS

See page 94 for more details.

100%

PROJECTS/KPIS

Strategy and Sustainability stream (SS)

• Waste Services

MG3: Proactive involvement in the review of infrastructure charging philosophies for Queensland

83%

WC2: Ongoing priority for healthy and active lifestyle initiatives

See page 85 for more details.

• Parks

PROJECTS/KPIS

• Libraries and Cultural Services

PRIORITY FOCUSES

WC3: Enhanced focus on city events

100%

• Community Services

18% 0%

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

KEY INTERNAL PERFORMANCE INDICATORS

Customer perspective

Financial perspective

Council's 2015/2016 result is the second highest result achieved for delivery of capital works projects over the past five-year period, second only to last year's exceptional result where Council delivered more capital works than had been planned.

On-time delivery of capital works projects (achievement of practical completion)

Investment returns (actual) against benchmarks (UBS Bank Bill Index) We have consistently achieved at or above the benchmark over the five-year period from June 2011 to June 2016. In 2015/2016, Councilâ&#x20AC;&#x2122;s investment returns (2.65 per cent) outperformed the UBS Bank Bill Index benchmark (2.22 per cent). This can be attributed to a combination of good returns from managed funds invested and the use of long-term term deposits. As these investments mature, the return may come closer to the benchmark as current long-term interest rates have decreased.

5.13%

4.54% 3.80% 3.32%

2011/2012

2012/2013

2013/2014

2014/2015

Benchmark = 2.22%

Benchmark = 2.58%

Benchmark = 2.63%

Benchmark = 3.19%

Benchmark = 5.13%

2.65%

We completed 99 per cent of our planned capital works projects in 2015/2016. This result includes projects by the Parks, Road Infrastructure Delivery, Water Infrastructure, Sport, Leisure and Facilities, and Waste Services branches. Capital works projects include the construction of new or upgraded community facilities and parks, roads, drainage systems, upgrades to our waste transfer stations and water and sewerage networks. The Sport, Leisure and Facilities Branch was the only branch to fall short of the 80 per cent lowest acceptable performance target due to delays in the Logan Metro Sports Park construction to accommodate re-design requests, and unusually high levels of rainfall experienced during June, which impacted on two other capital projects. This was counteracted in the overall percentage by above-planned delivery by the Road Infrastructure Delivery and Parks branches.

2015/2016 Lowest acceptable performance 86%

93%

92%

101%

99%

2011/2012

2012/2013

2013/2014

Target = 5.18%

4.80%

2014/2015

STRONG FOUNDATIONS for a bright future

4.19%

Target = 4.80%

5.18%

Target = 5.38%

5.38%

Target = 5.14%

5.14%

2015/2016

2011/2012

2012/2013

2013/2014

2014/2015

Target = 90%*

Target = 100%

The calculation used to determine rates in arrears is the total rates outstanding divided by the total value of rates issued.

Target = 100%

Our percentage of arrears figure of 4.19 per cent is an improvement of 0.61 per cent on the 2014/2015 year figure of 4.80 per cent.

Target = 100%

Rates arrears levels (actual) against end of financial year target

Target = 4.80%

2015/2016

* In 2015/2016, the target for the delivery of capital works was reduced from 100% to 90% and the lowest acceptable performance limit was reduced from 90% to 80%.

Customer calls answered within timeframes (average wait time) From 1 July 2014, we implemented a new performance measure for tracking the time taken to answer telephone enquiries through our customer service contact centre. Consideration was given to the national benchmark for calls answered within a call centre (44 seconds). As a result, we only have two years of comparable data.

During 2015/2016 the service level target of answering telephone enquiries within 45 seconds was achieved for eight of the 12 months. This result is comparable to 2014/2015 when the service level target was achieved for nine out of the 12 months. Further improvements are being made to increase the achievement of this target for the coming year. 61

Target <45 seconds 50 40

47 40

41 35

Jul 15

Aug 15

Sep 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Mar 16

Apr 16

May 16

Jun 16

Customer Satisfaction Surveys — Council’s Customer Service Centres In 2015/2016, we introduced customer satisfaction surveys to help us gauge how well we are meeting the service needs of our customers.

A five-point rating scale is used to calculate the results, with a rating of 5 indicating the customer was Very Satisfied and a rating of 1 indicating the customer was Very Dissatisfied.

Each month, 100 customer requests are randomly selected from Council’s customer request system. A customer satisfaction survey is then sent to the customers who lodged the requests.

With customer service always forefront of our minds, we set ourselves a high target to achieve a monthly satisfaction rating of 4 (satisfied) or above out of 5. We consistently achieved this target throughout 2015/2016 with an average rating of 4.5 out of 5.

4.7

4.67 4.6

4.59

4.59 4.54

4.55

4.52 4.47

4.47

4.46

Feb 16

Mar 16

Apr 16

4.27

Jul 15

Aug 15

Sep 15

Oct 15

Nov 15

Dec 15

Jan 16

LOGAN CITY COUNCIL

May 16

Jun 16

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

2015/2016 in review HIGHLIGHTS • We produced a quality 2014/2015 Annual Report — awarded a Gold Award by the Australasian Reporting Awards. • We confirmed arrangements for a Strategic Asset Management and Maintenance System and commenced preparation work for its organisation-wide implementation. • We undertook an organisation-wide Asset Custodianship Review. • We developed an Asset Design As Constructed (ADAC)

• We endorsed the Reconciliation Action Plan. • We began delivery of the First 5 Forever family literacy initiative — supporting stronger language and literacy for children from 0 to 5 years. • We worked with the community on Logan’s Queensland Music Festival event, Under this Sky, in August 2015 featuring 1,000 local performers playing to an audience of 13,000. • We celebrated as the Aqualogan Laurie Lawrence Swim

webpage, which details Council’s As Constructed data

School was awarded Best Swim School in Australia by

requirements that asset contributors must meet and

industry peak body Austswim.

made it available on Council’s website. • We dedicated $37.5 million to the maintenance of the

• We delivered the KRANK School Holiday program to more than 5,000 young participants. The Live Well Logan initiative

road network, including kerb and channel, stormwater,

provided more than 80 community activities aimed at healthy

footpaths, traffic signals and bridges.

living and wellness, with more than 50,000 participants.

• We completed a project (jointly funded with the Federal Government) to replace the Darcy Edmunds Bridge with a new arched concrete culvert catering for the predicted six

• We attracted $500,000 of grant funding for our safety camera network. • We held a successful De-Sexpo 2015 with a 14.37 per

per cent annual growth and increased road usage in the

cent increase in the number of dogs and a 55.95 per cent

Jimboomba area.

increase in the number of cats desexed compared to 2014.

• We completed the final phase of a seven-year project to

• We assisted 11 Logan clubs to secure funding of

deliver Council’s largest ever wastewater network upgrade

$1.06 million from the State Government towards

— the Alfred St pump station to Loganholme Wastewater

capital improvements of $1.748 million.

Treatment Plant pipeline duplication project. • We had another successful year in delivering key actions from our SafeRoads4Logan Road Safety Strategy, with data indicating a reduction in road trauma by 10 per cent. • We delivered a number of large capital works programs in 2015/2016, including a record $73.5 million of roads and drainage capital works and $48.1 million of water infrastructure projects. • We continued our City Pride Program activities to foster community spirit and positive word-of-mouth in partnership with more than 120 local businesses. • We launched Phase 2 of the City Image Campaign in May 2016, promoting the City of Logan as an ideal location to visit, live and invest. • We hosted the official opening of the new Beenleigh Town Square by Australian Prime Minister Malcolm Turnbull. • We ran an advocacy campaign ahead of the federal election and achieved significant media coverage of our #letsgetmoving campaign focused on the M1 and Mt Lindesay Hwy, the roll-out of the National Broadbank Network (NBN) and the Salisbury to Beaudesert railway line. • We developed a Domestic and Family Violence Community Reference Group and Action Plan. • We implemented the Logan Together initiative, to bring Logan kids up to and beyond the State averages within 10 years.

STRONG FOUNDATIONS for a bright future

• We hosted a successful City of Logan Youth Careers Expo, with approximately 70 exhibitors and 2,000 students in attendance. • We attracted $144.03 million of investment across retail, manufacturing, transport and logistics, education and training, and the food and beverage industries. • We adopted the Local Connections Strategy 2016–2021, outlining how Council will engage with local businesses and provide services to the small business community. • We negotiated the sale of SouthWest 2 and the site at 368 Wembley Rd. • We delivered the second stage of the Healthy Land Healthy River project. • We delivered stage 1 works at Riverdale Park as part of the Waterbody Asset Management Framework. • We won the 2016 Queensland Award for Excellence in Asset Management from Stormwater Queensland for our Waterbody Asset Management Framework. • We prepared the draft Local Government Infrastructure Plan. • We successfully managed a 60 per cent increase in development applications leading up to the transition to the new Logan Planning Scheme. • We launched an online infrastructure charges calculator, the first of its kind in South-East Queensland.

CHALLENGES • We continued the Safer Streets camera roll-out, with

• We were challenged with delays in starting construction

a slight delay due to variations in soil tests and

of the Logan Metro Sports Park due to a required

foundation requirements.

re-design to suit the requirements of the lessees.

• We were challenged with operating under the restrictive

• We were challenged by unusually high June rainfall,

legislation and policy framework imposed on Queensland

affecting construction of the new entrance road into

local governments.

Browns Plains Landfill.

• We were challenged by long, dry periods between

• We were unsuccessful in our aim to finalise the sale of

January and May which resulted in algal bloom

all SouthWest 1 industrial lots, selling three of the four

outbreaks and higher than usual bacterial contamination

remaining lots.

in some water bodies.

LOOKING AHEAD TO THE NEXT 12–18 MONTHS • We will start the implementation phase of the Strategic Asset Management and Maintenance System across Council. • We will establish an Asset Custodianship Working Group to oversee the development of asset transition plans and their implementation. • We will conduct our Logan Listens: Residents’ Survey and use the results to inform the review of our Corporate Plan. • We have committed $73 million to improve roads,

• We will begin delivery of Phase 2 of The Logan: City of Choice initiative. • We will support the ongoing development and delivery of Skilling Queenslanders for Work and Work for the Dole projects. • We will expand the age range for KRANK from 12 to 17 years to five to 17 years. • We will develop and implement a Cultural Heritage and Native Title Management Directive. • We will deliver an Industry Development and Investment

drainage, footpaths and bridges throughout the city,

Attraction Strategy together with an overarching

recognising the critical need for well-built and maintained

Economic Development Strategy.

road infrastructure network. • We have committed $42 million to continuing to provide a reliable water and wastewater service to our residents. • We will continue the delivery of a $3.7 million pressure management program in the southern parts of the city. • We will invest $4 million into the Integrated Local Transport Plan to improve and increase services to the city and $470,000 for installation of mobile speed warning signs to encourage safe driving on our local streets. • We will address the need to increase capital works programs for both roads and water infrastructure over the next five years to accommodate growth predicted in the city. • We will contribute to the development of a South Coast District Regional Transport Plan to ensure collective transport priorities are incorporated in an integrated transport plan for the South Coast District. • We will implement Phase 3 of the City Image Campaign.

• We have planned trade missions to South-East Asia, North America and India. • We will hold a Logan Job Expo to provide an opportunity to connect local jobseekers of all ages with local employers. • We have planned a mission to New Zealand to explore opportunities to increase tourism in the City of Logan. • We will complete the Logan River Vision and Implementation Plan. • We will undertake energy audits of our large facilities. • We will consider any required amendments to local laws as a result of amendments by the State Government to its Tobacco and Other Smoking Products (Smoke Free Places) Amendment Act 2016. • We face the challenge of a new Queensland Planning Act, which will begin 3 July 2017 and will result in the need for fundamental system and business process changes.

• We will implement our City Safety Strategy and Action Plan.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Our city

OUR HISTORY

The City of Logan is ideally located in South-East Queensland and is perfectly positioned to become a major economic destination. Key industries in the city’s economy include manufacturing and retail sectors, business and community services, the property sector, construction and agriculture. Our city covers more than 950 square kilometres and has a population of just over 300,000, or 6.4 per cent of Queensland’s population. Looking ahead to the next 20 years, our city’s future continues to shine brightly. The City of Logan is expected to continue to be one of the fastest growing cities in the state, with the population forecast to increase by up to 200,000 within the next 20 years.

n City

Noosa Heads location and available young Given its central geographic workforce, Logan is ideally placed for continued growth in the South-East Queensland region. Coolum Beach

Our city is home to people from 217 different cultural backgrounds housed in a wide-range of suburbs that offer lifestyle options from leafy suburbs to bushland acreage. LoganMooloolaba has a strong and vibrant community spirit, and residents are eager to build a bright future for themselves and their families. Caloundra

The Logan River, named by the Governor after Captain Logan, was an important transport route in the early days, with river boats bringing in provisions and taking out produce. There is little remaining evidence of this river trade because wharves and bridges were continuously washed away in floods. Once the penal settlement based in Brisbane was closed in 1841, land in Logan was quickly taken up by squatters. The first leases of land in the Logan area were issued from 1849. The declaration of the Logan and Eight Mile Plains Agricultural Reserves in 1862 led to extensive settlement of the area, initially by Irish and English settlers and then German immigrants. Cotton, dairy farming and sugar were among the city’s early industries, and today a small but viable sugar industry remains on the southside of the river centred on the Rocky Point Mill. The post-war need for housing attracted enthusiastic young families and urban development boomed in the Rochedale and Springwood areas from the late 1960s and in Browns Plains from the early 1970s.

CITY OF LOGAN

The Logan of today is a bustling modern city looking to the future but there are still many reminders of early settlers. Numerous historic cemeteries are located in Logan at Kingston, Carbrook, Waterford West, Logan Reserve and Slacks Creek. The oldest remaining buildings in the district include the slab hut in the grounds of Mayes Cottage and the Kruger house at Carbrook.

Caboolture AUSTRALIA

Strathpine

Brisbane

The most accessible sites of cultural heritage significance in Logan are Mayes Cottage, the old Carbrook School, St Mark’s Church at Daisy Hill and the Kingston Butter Factory.

Ipswich

CITY OF LOGAN

Warrill View

The Logan region was originally inhabited by Aboriginal people from two major language groups: the Yugambeh and the Jagera. Their first contact with Europeans occurred when the Commandant of the Moreton Bay Penal Settlement, Captain Patrick Logan, explored the river in 1826.

Beenleigh

Gold Coast Nerang

Boonah Beaudesert

Surfers Paradise

STRONG FOUNDATIONS for a bright future

The Logan local government area was created in 1979 and the City of Logan was declared in 1981. Today the city is seen as South-East Queensland’s economic powerhouse as Council continues building on the strong foundations laid in the past.

The City of Logan in profile 19,502 businesses

12 council divisions incorporating 110,557rateable assessments

54% of the city's area is vegetated

An economy worth

$19.298 billion with a gross regional product of $9.8 billion 125 sporting facilities

Logan City Council 2015/2016 budget:

$839.8 million

Assets worth almost

major community venues/events centres

9 libraries

18 Council-owned community centres

3 indoor sports centres 6 aquatic centres

$6 billion, including $2.6 billion worth of water and wastewater assets and $3.7 billion worth of roads and drainage assets

68 suburbs covering 957 square kilometres

95 km of unsealed roads 245 km of bikeways 238,700 tonnes of waste handled each year: 55,100 tonnes is recycled

2,087 km of wastewater mains 6 cemeteries

973 parks 1,129 km of footpaths 308,681 residents comprising 217 ethnicities 26.1% of residents were born overseas Median age: 33 2,160 km of sealed roads

2,633 ha of wetlands

2,177 km of waterways

42,372 ha of ecological corridors LOGAN CITY COUNCIL

2,162 km of water mains ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Mayor's Message Logan City Council’s hard work over the past 12 months has further positioned us as a city of the future — South-East Queensland’s next CBD.

This is another milestone in Logan’s evolution and reinforces the need for us to continue investing in new infrastructure to keep pace with the considerable growth occurring.

Council is ready to take the city to the next level and wants to inspire the whole community to work together to reach even greater heights.

Over the past year council has created a solid foundation for further development to handle the expected era of change and growth ahead.

We are focused on where we want to go as a city as we have long been building the foundations for the direction of Logan over the next decade and beyond. We are committed to forging a new and exciting future for our city’s businesses and residents.

We need a strong local economy to support the creation of another 70,000 jobs for our residents and over the past year we have put in place more projects and initiatives which will help us achieve those aims.

Continuing to build this strong foundation for our city will be of vital importance as we prepare to welcome 200,000 new residents. Logan is one of the country’s fastest growing cities with 70,000 new homes forecast to be built by 2031. Four new suburbs were added to the city during the 2015/2016 financial year to support future population growth. Flinders Lakes, Silverbark Ridge, Monarch Glen and Flagstone are located in the Greater Flagstone Priority Development Area. This area was identified by the State Government in 2010 as a key corridor for population growth in South-East Queensland and is expected to be home to 120,000 people by 2050.

Investing in programs and services to help us realise our potential means focusing on who we are, where we’re going and what our aim is. It also responsibly balances our investment in growth infrastructure while continuing to deliver more for the community. Our residents value our city for the lifestyle it offers them, for its family-friendly communities, for its schools, parks and sporting clubs. We know our businesses value our city for its prosperous local economy, rapidly growing population and its outstanding location providing access to millions of consumers across South-East Queensland. It is clear the City of Logan is well on its way to becoming the economic powerhouse of South-East Queensland and our achievements and successes during 2015/2016 have laid a strong platform for us to achieve our future goals.

Mayor Luke Smith City of Logan

‘Investing in programs and services to help us realise our potential means focusing on who we are, where we’re going and what we aim to become.’ STRONG FOUNDATIONS for a bright future

Acting CEO’s Message During 2015/2016, Logan City’s local economy entered a new growth phase not seen since the 1980s. Our population increased by 3,981 and our rateable assessments increased by 2,339. Pleasingly, this growth looks set to continue. To meet the demands of this growth agenda during the year, we placed a strong emphasis on growth management and infrastructure delivery. In terms of growth management, we have undertaken a full asset custodian review and we are well advanced in developing a best practice strategic asset management system. In terms of infrastructure delivery, the 2015/2016 financial year has been one of the busiest in the history of the City of Logan with a record capital works program delivery of $152.4 million. The largest road project ever undertaken by the city was launched — the duplication of 2.7km of Chambers Flat Rd from Park Ridge to Crestmead. Once completed by the end of 2016, the $18 million upgrade will support current residents and businesses as well as future growth in the Park Ridge Major Development Area. The $9.75 million Beenleigh Town Square project was delivered in the latter part of 2015 and has fast become an integral part of the local community and created a magnificent public space for people to come together. Our largest wastewater infrastructure project, completed in 2015/2016, is set to pave the way for further growth and development in Logan’s northern suburbs. The $85 million Alfred Street pump station to Loganholme Wastewater Treatment Plant network upgrade project services more than 200,000 people in 31 suburbs as well as commercial

centres. Constructed in stages from 2012 to 2016, the project was worked on by 1,400 mostly local workers. Logan City Council prides itself on its workplace health and safety record. Our lost time injury frequency rate has decreased over five years and is now significantly lower than the benchmark group of 10 similar-sized Queensland councils. Financial management has been a continued focus during the year with continued improvement in Council’s financial sustainability ratios. Council, for the first time, received a green rating across all of the Queensland Audit Office (QAO) performance criteria as reported in their annual report to Parliament. In 2015/2016, the City of Choice initiative continued to deliver outcomes through its strong partnership approach with the community and all three levels of government across a wide range of projects. In-roads were made to find new ways to improve early childhood development, public transport, social cohesion and career pathways. Key initiatives included Logan Together, Logan’s Community Response to Domestic and Family Violence, the Queensland Music Festival production, ‘Under this Sky’, the Logan Jobs Pipeline, and the Community Cohesion Working Group. These improvements, projects and services were all delivered this financial year against the backdrop of Local Government elections in March 2016, with Mayor Pam Parker retiring and divisional councillor Luke Smith being elected as the new Mayor. We also farewelled our well respected Chief Executive Officer, Chris Rose, after 10 years leading Council’s operations. We thank him for laying very solid foundations and setting us up for a bright future for our organisation. Finally, I have been very proud and honoured to lead our organisation through this transition.

John Oberhardt Acting Chief Executive Officer

‘The $9.75 million Beenleigh Town Square project delivered in the latter part of 2015 has become an integral part of the local community.’ LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

2015/2016 financial summary OPERATING SURPLUS (DEFICIT) RATIO The operating surplus ratio measures the extent to which revenues raised — to cover operating expenses only — are available for capital funding and other purposes. It is calculated as net operating result (presented in the income statement) divided by operating revenue. A positive ratio indicates that surplus revenue is available. A negative ratio indicates an operating deficit, which considered not sustainable in the long-term. We have provided an operating surplus (deficit) trend over the past six years and a forecasted ratio. The operating surplus ratio of 6.8 per cent is a positive result and means that Council’s operating revenues cover all our operating expenses, including depreciation by a percentage that is within the acceptable levels. The positive result indicates a surplus and it is generally the case that the larger the surplus, the stronger the result. However, we aim to maintain a surplus below the benchmark of 10 per cent, as anything over this can disadvantage ratepayers unless it is part of strategic long-term planning. Operating surplus (deficit) ratio %

6.9

2.3

2010/2011

6.8

2.1

2012/2013 2013/2014 2014/2015 2015/2016

2011/2012

-2

Working capital ratio

4.1

4.37 3.48 3

3.15

3.34

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

NET FINANCIAL LIABILITIES (ASSETS) RATIO The net financial liabilities (assets) ratio measures the extent to which net financial liabilities can be serviced by operating revenues and is a short-term liquidity measure. The ratio determines how well-placed we are to pay our liabilities out of current operating revenue and is calculated as the value of net financial liabilities (assets) divided by operating revenue. Net financial liabilities (assets) are calculated as total liabilities minus current assets, and a negative measure means that our current assets exceed total liabilities. The ratio does not consider liability repayment periods, which include longer-term borrowings and may be misleading. A more accurate measure of short-term liquidity is provided through the working capital ratio, which compares current assets to current liabilities rather than all liabilities, and is presented above. Net financial liabilities (assets) ratio

-2.7

11.73

WORKING CAPITAL RATIO The working capital ratio provides an indication of shortterm liquidity: whether the business has enough current assets to meet current liability commitments. A ratio of better than 1:1 reflects a strong ability by an organisation to meet its commitments. We had, on average over the past six years, 3.7 times the amount required in current assets to pay our short-term liabilities. In 2015/2016, the ratio was 3.48:1, which was an increase from 3.34:1 the previous year.

STRONG FOUNDATIONS for a bright future

13.15

6.94

2010/2011 2011/2012

2015/2016 2012/2013 2013/2014 2014/2015 –1.12

–10.3 –12.5

How we engage our community LOGAN LISTENS: RESIDENTS' SURVEY Our Logan Listens: Residents' Survey has generally been run annually since 2010, with the exception of 2015. Our next scheduled survey will occur in the first half of 2016/2017. Results from this survey will be used in the development of a new vision and Corporate Plan for the city. The chart below shows the improvement in residents' satisfaction across all of Council's services every year of the five-year period the survey was run from 2010 to 2014. In 2014, eight out of 10 people (80 per cent) indicated that they were either 'satisfied' or 'very satisfied' with our services and facilities.

COMMUNITY ENGAGEMENT ACTIVITIES CONDUCTED IN 2015/2016 Residents were invited to “have a say” on key Council decisions that affected their community throughout 2015/2016. The number of large projects with community engagement substantially increased in 2014/2015. The decrease in 2015/2016 can be attributed to Logan City Council's caretaker policy provisions preventing engagement during the election period. Online engagement opportunities increased slightly on last financial year. Engagement summary and ‘Have Your Say’ Online: four-year trend

Overall satisfaction results from our Logan Listens: Residents’ Survey: five-year trend

Engagement Projects

Online Engagement 78

3.98

3.88 3.71

3.75

18 3.54 2012/2013

2010

2011

2012

2013

2013/2014

2014/2015

2015/2016

2014

Residents were asked to rate their overall satisfaction with Council's services and facilities on a scale of 1-5, where 1= not at all satisfied and 5 = very satisfied.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Some of the major engagement projects in 2015/2016 are summarised below.

Guideline for Engaging Aboriginal and Torres Strait Islander Communities in the City of Logan We are committed to increasing opportunities for engagement and participation, appropriately acknowledging Aboriginal and Torres Strait Islander custodianship of Country, and recognising the significance of Aboriginal and Torres Strait Islander cultures in the City of Logan and throughout Australia. It is acknowledged that Australia’s Aboriginal and Torres Strait Islander peoples experience ongoing challenges associated with the loss of people, lands, identity, language and culture. This loss continues to be experienced by individuals in our community and in turn impacts on participation and engagement. After many months of conversation with individuals within the local community, including Elders and other leaders as well as representative community groups in the City of Logan, the Community Engagement Guideline: Guideline for Engaging Aboriginal and Torres Strait Islander Peoples in

The smoking ceremony is an ancient custom among Indigenous Australians and is believed to ward off bad spirits.

STRONG FOUNDATIONS for a bright future

the City of Logan was endorsed by Council's Leadership Team on 8 October 2015. This guideline has been made available to Council staff members in accordance with Action 7.2 of the City of Choice Action Plan. The guideline outlines when and how to: • undertake an Acknowledgement of Country • organise a Welcome to Country • engage with Aboriginal and Torres Strait Islander peoples in the City of Logan. The guideline also addresses: • protocols, ceremonies and other cultural considerations • photography, filming and recording consent, and how this should be obtained when working with Aboriginal and Torres Strait Islander people • how and when to commission consultancy expertise from Aboriginal and Torres Strait Islander representative groups • the provisions and obligations as a Council employee under the Aboriginal Cultural Heritage Act 2003 • an explanation of the Aboriginal and Torres Strait Islander flags.

Review of open fire local law provisions

Review of environmental mapping

We asked our community to tell us how open fires to maintain property should be regulated by our local law. Prior to this conversation, our past local laws prevented open fires, unless fire permits had been obtained from Queensland Fire and Emergency Services (QFES).

In late September 2015, we called for community help to improve and refine our mapping of ecological significance throughout the City of Logan. The local community was asked to gather and provide any recorded evidence to Council to assist with the continual improvement of Council’s ecological significance mapping.

Our intention was that proposed changes to the relevant local law would ensure the safety of Logan residents. It was recognised that small fires may be necessary for maintenance, especially in large, rural properties throughout the City of Logan — without creating a nuisance issue for neighbours. Working in partnership with QFES, community feedback was used to draft the provisions of the local law. This feedback helped Council decide what was appropriate and safe for residents in the City of Logan.

The Logan: City of Choice Initiative The City of Choice Summit held in 2013, led to the development of a two-year action plan. To implement the action plan a community governance process needed to be established, known as the Logan: City of Choice Leadership Team. The leadership team includes independently selected representatives of all levels of government, the community and subject matter experts directly relevant to the themes identified through the summit. A core function of the leadership team has been to provide and build the capacity within the community, government and partner organisations. Without this, it simply would not be possible to achieve the large goals established for the city. The leadership team has continued to engage with residents, community leaders and key stakeholders across all levels of government to drive the actions and projects to progress the action plan.

In November 2015, 17 ecological experts from around South-East Queensland formed an expert panel to provide advice and recommendations to Logan City Council. Both the community submissions and the experts’ own suggestions were reviewed by the panel. The chair of the expert panel thanked the community for the breadth and detail contained in the community submissions. More than 100 decisions were made during the panel deliberations. Some of these included incorporating the nesting and roosting locations of highly mobile threatened birds and bats, and using habitat models for other highly mobile fauna such as koalas, brush-tailed rock wallabies and spotted-tailed quolls. Biodiversity hotspots or areas providing localised contribution to biodiversity were also identified in 14 areas throughout the City of Logan.

Review of reference groups The Community Engagement Program undertook a review of how Council has used reference groups to engage with our community and stakeholders. This review: • examined past reference groups • audited current reference groups • investigated how other organisations use reference groups as an engagement tool • identified models for how reference groups could be used by Logan City Council in the future.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR ANNUAL REPORT

Awards received in 2015/2016 Our organisation received the following awards during 2015/2016, recognising the excellent contributions made by staff to the community and their strong work ethic.

Information about our internal Employee Excellence Awards can be found on page 40–41.

LOGAN CITY COUNCIL Name of awards

Presented by

Award won

Comments

Parks and Leisure Australia — Queensland Regional Awards of Excellence

Parks and Leisure Australia — Queensland

Research Project Award

For the Active Logan Participation Study

Australasian Reporting Awards

Australasian Reporting Association

Gold Award

For the 2014/2015 Annual Report

Planning Institute of Australia’s 2015 Awards for Planning Excellence (Australia)

Planning Institute of Australia

Improvement in Planning Processes and Practices

For the online environmental offset estimator

Planning Institute of Australia’s 2015 Awards for Planning Excellence (Queensland)

Planning Institute of Australia — Queensland Branch

Best improvement in planning processes and practices

For the online environmental offset estimator

Sister Cities Australia National Awards

Sister Cities Australia

Best Youth Project

For our children’s art exchange with Shibukawa, Japan

Queensland Police Citizen Youth Club (PCYC) Awards

Queensland PCYC

Community Partnership Award

For the financial and in-kind contributions made to the Beenleigh, Crestmead, Logan and Tudor Park PCYCs

2015 SES Week Area Awards (Logan City, Gold Coast, Scenic Rim, Somerset and Ipswich)

Queensland Fire and Emergency Services South Eastern Region

Regional SES Unit of the Year

For the unit’s willingness to help communities across the region

International Association for Public Participation Core Values Awards

International Association for Public Participation

Planning category winner

For the 2015 Logan Planning Scheme

International Association of Public Participation Core Values Awards

International Association of Public Participation

Highly Commended — Australasian Project of the Year

For the 2015 Logan Planning Scheme

Australian Organisational Excellence Awards

Australian Organisational Excellence Foundation

Recognition in Excellence

In recognition of Council’s systems and processes for performance improvement and innovation

2015 Golden Target Awards

Public Relations Institute of Australia

Commendation

For issues and reputation management

Queensland Police Citizens Youth Club (PCYC) Southern and South Region Awards

Queensland PCYC

Community Partnership Award

For the contributions made to the Beenleigh, Crestmead, Logan and Tudor Park PCYCs

Swim Australia Awards

Swim Australia

National Austswim Recognised Swim Centre Award

For the Aqualogan Laurie Lawrence Swim School

National Trust Queensland Heritage Awards

National Trust

Silver — Agency Conservation Programs

For the Black Diggers of Logan digital stories project

STRONG FOUNDATIONS for a bright future

Name of awards

Presented by

Award won

Comments

2015 Queensland Road Safety Awards

Centre for Accident Research and Road Safety (CARRS-Q)

Commendation — Local Government Category

For the RU1m (are you one metre?) road safety initiative to promote the new minimum distance passing laws for motorists and cyclists

Australian Business Awards

Winner for Service Excellence

For our customer service ‘best value’ initiatives

Australian Business Awards

Winner for Marketing Excellence

For the City Pride initiative

Australian Business Awards

Winner for Innovation

For the Hidden Gems program

2015 State Emergency Services (SES) Week Area Awards (Logan City, Gold Coast, Scenic Rim, Somerset and Ipswich)

Queensland Fire and Emergency Services South Eastern Region

Regional Member of the Year — David Jewell

For service to Queensland Fire and Emergency Services

Logan North Aquatic and Fitness Centre.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Our council This section highlights how Logan City Council works for its community, with information and key statistics about our elected members, executive management and our staff. Also covered in this section is information about our internal audit function, standing committees, workplace safety and risk management.

STRONG FOUNDATIONS for a bright future

Strong foundations for a bright future: the picturesque Berrinba Wetlands and SouthWest 1 consist of more than 80 hectares of natural beauty and recreational facilities.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Organisational structure As an organisation, Logan City Council has two roles under the Local Government Act 2009: a law-making role and an executive role. This means we have a law-making role for local laws and an executive role for adopting and implementing policy, administering local government and enforcing local laws. By analogy with the State Government, Council is the ‘local parliament’ when making laws, and the ‘local cabinet’ when exercising executive government powers. These roles, which are partially separated at State Government level, are combined in one body at the local government level. However, it is important to note that individual councillors do not have the authority to make decisions — they are made collectively when sitting as a Council.

(Audit Committee)

The CEO also provides executive leadership to the organisation. This diagram illustrates how Council receives its authority from the community through its elected members. Council’s administration is headed up by the CEO and four Deputy CEOs as our leadership team, delivering services through the four streams. The Internal Audit Committee acts as an objective reviewer of our operations.

Council • Mayor

(Internal Audit)

The operational arm of a local government authority consists of the Chief Executive Officer (CEO) and other staff. They are charged with implementing Council’s resolutions (decisions) and reporting on the outcomes of those resolutions.

• Councillors

• Standing committees

Chief Executive Officer Strategy, Leadership and Performance Team

Office of the CEO (See page 54)

Road and Water Infrastructure (See page 56)

Community and Customer Services (See page 59)

Organisational Services (See page 63)

Strategy and Sustainability (See page 65)

Deputy CEO

• Road Infrastructure Planning

• Animal and Pest Services

• Administration

• Development Assessment

• Road Construction and Maintenance

• Marketing

• Governance

• Sport, Leisure and Facilities

• Information Services

For more information about each stream, refer to the pages mentioned after each stream name.

• Road Infrastructure Delivery

• Community Services

• Water Operations

• Customer Service

• Water Business

• Libraries and Cultural Services

• Water Infrastructure

• Finance

• People and Culture • Plant Fleet Services

• Economic Development and Strategy* • Environment and Sustainability • Waste Services • City Standards

• Parks • Media and Communication

Community outcomes

• Building our major infrastructure

• Building our economic base • Building our environment

• Building the wellbeing of our communities

• Building our city’s image

• Building our service excellence

• Managing growth in our city

* Council's Economic Development Branch merged with the Growth Management and Urban Design Branch on 28 June 2016 to form a new branch titled Economic Development and Strategy Branch.

STRONG FOUNDATIONS for a bright future

Democratic governance ELECTED MEMBERS Mayor Luke Smith Mayor Luke Smith was first elected as a Logan City Divisional Councillor in 2006 and served the community in this capacity for 10 years until his election as Mayor in 2016. Cr Smith was born and raised in the City of Logan and prior to his time in Council, he worked in the television news industry and completed an Arts degree at the University of Cincinnati in the United States. During his 10 years in Council, Cr Smith chaired a number of committees and has been a panel member of several internal and external boards including: Chair of the Governance, Finance and Economic Development

Committee; Chair of the Audit Committee; Member of the Executive Review Panel; Director of Invest Logan; Chair of the Logan Enterprises Board; and Chair of Council’s Water and Waste Committee. Cr Smith is also an active Ambassador for Kidsafe Queensland. He is committed to building upon Logan’s strong foundations and pursuing new opportunities for the city in digital technology and advanced manufacturing, public and private partnerships and driving innovation and job opportunities to create a strong economy and a prosperous future for the city’s rapidly growing population. Cr Smith is married with three daughters.

Logan City Councillors (L–R) Cr Lisa Bradley, Cr Russell Lutton, Cr Steve Swenson, Cr Laurie Koranski, Cr Jon Raven, Cr Stacey McIntosh, Mayor Luke Smith, Deputy Mayor Cherie Dalley, Cr Laurie Smith, Cr Trevina Schwarz, Cr Phil Pidgeon, Cr Jennie Breene and Cr Darren Power.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Councillor Lisa Bradley

Councillor Laurie Koranski

(DIVISION 1)

(DIVISION 4)

Councillor Lisa Bradley was elected to Logan City Council in 2008 after 19 years as a registered nurse, including 14 years as an intensive care nurse. She has a Bachelor of Applied Science (Nursing) and post-graduate qualifications in Business, Intensive Care and Psychiatric Nursing, and has been involved in quality improvement, education and research. Cr Bradley is a patron of a number of organisations and from a young age has passionately volunteered in a number of clubs, charities and organisations. She is the Chairperson of the Health, Environment and Sustainability Committee. Cr Bradley is a member of the Australian Institute of Company Directors and achieved a Company Directors Course Diploma in 2011.

Councillor Laurie Koranski was elected to Logan City Council in 2016. The long-term Logan resident resides in Buccan with her husband and two children and loves the sense of community found in the City of Logan. Cr Koranski previously owned a successful dental surgery with her husband, was president of the Logan Country Chamber of Commerce, sat on several boards and was involved with numerous community groups. She strongly supports local businesses and aims to help local youth and encourage community organisations to prosper while fostering the city’s community spirit. Cr Koranski also enjoys discovering new places, dining out and creative writing.

Councillor Russell Lutton

Councillor Jon Raven

(DIVISION 2)

(DIVISION 5)

Councillor Russell Lutton is the city’s longest-serving councillor after first being elected in 1985. Before becoming a full-time councillor, he worked for Queensland Rail and was Woodridge Station Master. Cr Lutton was Deputy Mayor from 2008 to March 2016 and has served on every standing Council committee including chairing the Town Planning and Environment Committee and the Development and Environment Committee. He is now the Chairperson of the Planning and Development Committee. Cr Lutton says the diversity of those who live in Logan and the way the community comes together in times of adversity are the city’s best attributes. Cr Lutton has lived in Woodridge since 1982 and became a councillor to help people in the community and make a difference.

Councillor Jon Raven was elected to Logan City Council in 2016. He has a background in small business as an owner operator of an asbestos removal and demolition business that employs local staff and uses local suppliers. He moved to Marsden from Brisbane in 2010 with his wife and their two children. Cr Raven believes Logan residents take care of each other and are very welcoming because the community contributes to a supportive environment. He views his role as a councillor as one that helps people and local businesses to prosper. In his spare time, Cr Raven enjoys martial arts and spending time with his children.

Councillor Steve Swenson

Councillor Stacey McIntosh

(DIVISION 3)

(DIVISION 6)

Councillor Steve Swenson was first elected to Logan City Council in 2012. Prior to this, he worked in the not-for-profit sector for more than 20 years and also served as one of Logan’s honorary ambassadors from 2010 until his election. His previous work includes time spent as a youth worker, church minister and community relations officer. He says the city’s best attractions are its enviable location, lifestyle and abundance of green space and its people. Cr Swenson’s goals are to make an effective contribution to improving the community and ensuring the concerns of residents are heard and acted upon. He is currently the Chairperson of the Sport and Community Services Committee. Cr Swenson has been married to his wife Sherry since 1994 and together they have two teenage children.

STRONG FOUNDATIONS for a bright future

Councillor Stacey McIntosh has lived in Logan all her life and attended Shailer Park State High School. She was elected to Logan City Council in 2016. Cr McIntosh previously worked as an accounts manager while also holding many community leadership roles and serving on a number of boards and committees. She is currently a member of Rotary and is the City of Logan Relay for Life Chairperson. Cr McIntosh believes managing growth is an important part of a councillor’s role, particularly as the city is set to experience unprecedented change over the next few years. She is studying a Bachelor of Commerce at Griffith University’s Logan Campus. Cr McIntosh also enjoys spending quality time with family and friends in and around Logan.

Councillor Laurie Smith

Councillor Darren Power

(DIVISION 7)

(DIVISION 10)

Councillor Laurie Smith was elected to Logan City Council in 2012 after a career in the printing industry that included senior management roles in sales and marketing, business development and operational management. Prior to this, he spent nine years in the Australian Defence Force. He was the area coordinator of the Forestdale Neighbourhood Watch for 15 years and involved with surf lifesaving since 2002 with his family, which included time in committee and official roles. In the 2012–16 term, Cr Smith was Assistant Chairperson of Council’s Roads and Water Infrastructure Committee and he is excited to now be the Chairperson of the first City Image Committee in Council’s history. Cr Smith is married with three adult children and has lived in Logan since 1983.

Councillor Darren Power was first elected to Logan City Council in 1997. He started his working career as a qualified graphic reproductionist with the Herald Sun in Melbourne. Cr Power then joined the Australian Army qualifying as a Special Forces Commando earning his Green Beret and parachute wings. He also served as a federal officer working in the consulate patrol group, close personal protection and Melbourne Airport. Before being elected as a councillor, he worked in Council’s Environmental Health department for six years. Cr Power is married and lives in Shailer Park with two of his children. He believes that living in the City of Logan and working within Council has provided him with a genuine understanding of residents’ needs and an essential knowledge of the organisation’s operations.

Councillor Cherie Dalley

Councillor Trevina Schwarz

(DIVISION 8, Deputy Mayor)

(DIVISION 11)

Councillor Cherie Dalley was elected to Logan City Council in 1997. With her husband Stewart, she operated a commercial tiling business until 1999 and is committed to helping small business people thrive in the City of Logan. Cr Dalley is president of the Queensland Consumers’ Association and heavily involved in community groups. She is a Legatee and treasurer of the Logan Beaudesert Crime Stoppers Committee. She is currently the Deputy Mayor and has previously chaired Council’s Finance Committee. A divisional community consultation committee advises Cr Dalley on the small and large issues within Division 8. Cr Dalley has three adult children and three grandchildren and has lived in Logan since 1980.

Councillor Trevina Schwarz was elected as Independent Councillor for Division 11 of Logan City Council in 2012. Cr Schwarz has lived in Division 11 for over 26 years, during which time she has operated a local business, raised two children and cemented herself as a valuable and active contributor within the community. Cr Schwarz is incredibly passionate about the unique rural residential lifestyle that Division 11 offers and she is committed to the challenge of protecting the unique landscape and lifestyle of New Logan, whilst allowing for and encouraging growth and development of infrastructure. Cr Schwarz is proud to represent the residents of Division 11 with dedication, passion and honesty to ensure the betterment of the community for all.

Councillor Phil Pidgeon

Councillor Jennie Breene

(DIVISION 9)

(DIVISION 12)

Councillor Phil Pidgeon was elected to Logan City Council in 1997. Born and bred in Queensland, he grew up in Central Queensland and Brisbane. Cr Pidgeon has previously worked as a trainee manager at Woolworths, a sheet metal worker/welder and a professional photographer. Cr Pidgeon is the founder of the Crestmead Community Garden Group and the Crestmead Community Christmas Carols. He is also the patron of many Loganbased organisations. Cr Pidgeon currently chairs Council’s Roads and Water Infrastructure Committee and has extensive experience previously chairing committees that have managed parks, health, sport, city standards and community services.

Councillor Jennie Breene was elected to Logan City Council in 2012 and is now the Chairperson of the Animals, Parks and City Standards Committee. Prior to being elected, Cr Breene worked in her parents' Brisbane-based business. Her previous work experience has been in office administration and customer service. Cr Breene is extremely passionate about the City of Logan and in particular Division 12. She enjoys working with residents and having a positive impact on services provided by Council. Cr Breene is a local resident and has lived in Beenleigh for the past 25 years. She is married to Michael and they have two adult children, Geoffrey and April.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

THE ELECTED COUNCIL'S RESPONSIBILITIES Logan City Council, comprising of the Mayor and 12 councillors, is the elected body accountable for the responsible governing of Logan. The elected body has legal obligations requiring members to represent the current and future interests of the residents of Logan. They are democratically elected and accountable to their communities for the decisions they make and the services they provide.

participating in Council meetings, developing policy and making decisions that are in the interests of the whole community. Elected members are bound by a Code of Conduct, which is their public commitment to open, accountable and ethical standards of behaviour. The community also plays a role in good democratic governance by participating in elections, being actively involved in engagement programs and providing feedback on current issues and the services provided.

Their role also includes other responsibilities such as providing high quality leadership to the community,

MAYOR — Luke Smith

DIVISION 2 — Cr Russell Lutton

Representing the whole of the City of Logan.

DIVISION 3 — Cr Steve Swenson Representing Slacks Creek and part of Underwood, Springwood, Kingston, Tanah Merah, Loganholme and Daisy Hill.

Representing Woodridge, Logan Central and part of Kingston and Underwood.

DIVISION 7 — Cr Laurie Smith

DIVISION 5 — Cr Jon Raven

Representing Forestdale, Hillcrest, Boronia Heights and part of Greenbank, Park Ridge, Park Ridge South, Munruben and North Maclean.

DIVISION 1 — Cr Lisa Bradley

Representing Berrinba, Marsden, Loganlea and part of Waterford West and Crestmead.

DIVISION 11 — Cr Trevina Schwarz

Rochedale South

DIVISION 8 — Cr Cherie Dalley

Representing Cedar Grove, Cedar Vale, Flagstone, Flinders Lakes, Lyons, Monarch Glen, New Beith, Silverbark Ridge and Woodhill and part of Greenbank, Jimboomba, Kagaru, North Maclean, South Maclean, Undullah, Veresdale, Veresdale Scrub.

Representing Browns Plains, Regents Park, Heritage Park and part of Park Ridge.

Representing Priestdale, Rochedale South and part of Daisy Hill, Underwood and Springwood.

Browns Plains

Hillcrest Regents Park

Div 7

Boronia Heights

Slacks Creek

Bethania

Waterford West

Div 8

Cornubia Tanah Merah

Loganlea

Marsden Crestmead

Shailer Park Meadowbrook

Div 5

Heritage Park

Greenbank

Daisy Hill

Div 3

Kingston

Berrinba

Representing Shailer Park, Cornubia, Carbrook and part of Daisy Hill and Loganholme.

Springwood

Woodridge Logan Central

Forestdale

Div 1

Underwood

Div 2

DIVISION 10 — Cr Darren Power

Priestdale

Park Ridge

Div 6 Waterford

Logan Reserve

Carbrook

Loganholme Eagleby

Edens Landing Holmview

Div 12 Beenleigh Mount Warren Park

Park Ridge South Bahrs Scrub

Buccan Chambers Flat

Munruben

New Beith

Windaroo Belivah Bannockburn

Div 9

North Maclean

Lyons

Logan Village

Stockleigh

South Maclean

Silverbark Ridge

Div 11

Wolffdene

DIVISION 12 — Cr Jennie Breene Representing Eagleby, Beenleigh and part of Mt Warren Park.

Div 4

Flagstone Monarch Glen Jimboomba area under review

Cedar Creek

Yarrabilba

Flinders Lakes Undullah

Div 10

Kairabah

Kagaru Jimboomba

Tamborine

Cedar Grove

DIVISION 6 — Cr Stacey Mcintosh Representing Bethania, Meadowbrook, Waterford, Holmview, Edens Landing and part of Loganholme.

Cedar Vale

DIVISION 9 — Cr Phil Pidgeon Representing Logan Reserve, Chambers Flat, Stockleigh and part of Park Ridge, Crestmead, Waterford West, Park Ridge South, Munruben, North Maclean and South Maclean.

STRONG FOUNDATIONS for a bright future

DIVISION 4 — Cr Laurie Koranski

Woodhill

Veresdale

Veresdale Scrub

Mundoolun

Representing Bahrs Scrub, Buccan, Belivah, Bannockburn, Logan Village, Windaroo, Wolffdene, Yarrabilba, Kairabah, Mundoolun and part of Cedar Creek, Jimboomba, Mt Warren Park and Tamborine.

CODE OF CONDUCT FOR COUNCILLORS AND STAFF We are committed to the ethical principles and obligations contained in the Local Government Act 2009 and Public Sector Ethics Act 1994. The following information details the action undertaken during the year relating to the various codes.

Public Sector Ethics Act implementation statement

Councillor Code of Conduct disclosures 2015/2016

During the year, we undertook the following actions to fulfil our obligations under the Public Sector Ethics Act 1994:

We are required to disclose figures relating to the Councillor Conduct complaints received and actioned in accordance with the Local Government Act 2009:

• The Code of Conduct was updated in 2014 and is reviewed every three years as required. Refresher training was conducted for all staff against the reviewed Code during the second half of 2014. In addition, electronic and online training courses in Code requirements were reviewed and updated. • The Code was made available upon request to all staff and the public online, and internally via our electronic document management system. • We provided all new permanent staff with online training and access to a copy of the Code of Conduct. • No external inspections of the Code were requested during 2015/2016.

Total number of orders and recommendations made under section 180(2) or (4) and 181 of the Act.

The name of each councillor for whom an order or recommendation was made under section 180 or 181 of the Act, a description of the conduct engaged in by each councillor and a summary of the order or recommendation made for each councillor.

No breaches or orders to report for 2015/2016.

The number of complaints about the conduct or performance of Councillors that were assessed as frivolous, vexatious or lacking substance under section 176C (2) the Act.

The number of complaints about the Mayor or Deputy Mayor referred to the Chief Executive Officer (CEO) of the Department of Local Government (DLG) in accordance with section 176C(3)(a)(i) of the Act.

The number of complaints about the conduct of another Councillor referred to the Mayor in accordance with section 176C(3)(a)(ii) or (b)(i) of the Act.

The number of complaints about the conduct of a Councillor assessed as Misconduct and referred to the CEO or the DLG in accordance with section 176C(4)(a) of the Act.

The number of complaints about the conduct of a Councillor assessed as Corrupt Conduct.

The number of complaints about the conduct of a Councillor heard by a regional conduct review panel.

The number of complaints about the conduct of a Councillor heard by the tribunal.

The number of complaints about another matter dealt with by the CEO under section 176C(6) of the Act.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

COUNCILLOR REMUNERATION In accordance with the Local Government Regulation 2012, the Local Government Remuneration and Discipline Tribunal is responsible for determining the maximum remuneration payable to the Mayor, Deputy Mayor and councillors. As determined in the 2014 Local Government Remuneration and Discipline Tribunal Report, remuneration paid to councillors between July 2015 and June 2016 is detailed below.

Standing committee chairpersons are remunerated at 10 per cent above the level of remuneration payable to a (non-chairperson) councillor for the period ending 18 March 2016 in accordance with the ruling of the Local Government and Discipline Tribunal dated 13 September 2012.

Surname

Given names

Division

Period covered*

Total

Logan City Council superannuation

Smith

Timothy Luke

Mayor

6/4/16 to 26/6/16

$41,905.73

$5,028.71

Parker

Pamela Lorraine

Mayor

29/6/15 to 5/4/16

$145,915.15

$17,509.90

Bradley

Lisa Catherine

Full year

$112,692.59

$13,523.12

Lutton

Russell Bruce

Full year

$124,365.59

$14,923.88

Swenson

Stephen Frederick

Full year

$112,692.59

$13,523.12

Petersen

Donald Christian

29/6/15 to 5/4/16

$96,303.88

$11,556.48

Koranski

Laurie Anne

6/4/16 to 26/6/16

$25,143.46

$2,388.62

Able

Graham John

29/6/15 to 5/4/16

$96,303.88

$11,556.48

Raven

Jon Smyth

6/4/16 to 26/6/16

$25,143.46

$2,388.62

Smith

Timothy Luke

29/6/15 to 5/4/16

$96,303.88

$11,556.48

McIntosh

Stacey Lee

6/4/16 to 26/6/16

$25,143.46

$2,388.62

Smith

Laurence William

Full year

$112,692.59

$13,523.12

Dalley

Cherie Marie

Full year

$124,799.74

$14,975.98

Pidgeon

Phillip Wayne

Full year

$112,692.59

$10,705.73

Power

Darren Ross

Full year

$112,692.59

$13,523.12

Schwarz

Trevina Dale

Full year

$122,047.42

$11,557.29

Breene

Jennifer Rachael

Full year

$112,692.59

$10,705.73

* Please note that the Queensland Local Government elections were held on 19 March 2016.

EXPENSES REIMBURSEMENT POLICY FOR COUNCILLORS Council has adopted an Expenses Reimbursement Policy for councillors in accordance with section 250 of the Local Government Regulation 2012. Our policy considers the ‘24/7’ nature and community expectation of a modern councillors’ role and makes arrangements for reimbursing expenses for our councillors: • conferences and seminars, including travel and accommodation

• publications and newspapers • safety equipment and uniforms

• training and professional development

• vehicles including fuel and tolls

• civic-related expenses

• insurance cover and legal costs

• daily meals and refreshments

• superannuation.

• facilities, including office accommodation, equipment, stationery and executive support See page 184 for a full copy of our Expenses Reimbursement Policy.

STRONG FOUNDATIONS for a bright future

ATTENDANCE AT COMMITTEE AND COUNCIL MEETINGS Note: Prior to the 2016 election, all councillors were members of every committee. Following the 2016 election, only certain councillors are members on specific committees. Councillors must attend at least 75 per cent of the duration of each meeting to have attendance recorded. Councillor Lutton was the Chairperson for Council's Advisory Committee meetings up until the Local Government Elections, afterwhich the Advisory Committees were discontinued.

1 July 2015 to 19 March 2016

Roads and Water Infrastructure

Parks, Health, Environment and Sustainability

Planning and Development

Animals and City Standards

Sport and Community Services

Governance, Finance and Economic Development

Ordinary Council

SCN Special Council RS

Road Safety and Bicycle Advisory Committee

Safe City Advisory Committee

Committee and Council Meetings

Advisory Committee Meetings

SCN

TOTAL

Cr Pam Parker (Mayor)*

Cr Russell Lutton (Deputy Mayor)

Cr Lisa Bradley

Cr Don Petersen

Cr Graham Able

Cr Luke Smith

Cr Laurie Smith

Cr Cherie Dalley

Cr Phil Pidgeon

Cr Darren Power

Cr Trevina Schwarz

Cr Jennie Breene

Number of Meetings

Cr Steve Swenson

* The Mayor is not required by Council to attend all committee meetings.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Members must attend at least 75 per cent of the duration of each meeting to have attendance recorded. Committee membership is indicated by the blue background. Only committee members are required to attend the committee meeting.

Roads and Water Infrastructure

Planning and Development

Health, Environment and Sustainability

Animals, Parks and City Standards

City Image

Sport and Community Services

City Treasury

Ordinary Council

SCN Special Council

Committee and Council Meetings 1 April 2016 to 30 June 2016 RW

SCN

TOTAL

Number of Meetings

Cr Luke Smith (Mayor)*

Cr Cherie Dalley (Deputy Mayor)

Cr Lisa Bradley

Cr Russell Lutton

Cr Steve Swenson

Cr Laurie Koranski

Cr Jon Raven

Cr Stacey McIntosh

Cr Laurie Smith

Cr Phil Pidgeon

Cr Darren Power

Cr Trevina Schwarz

Cr Jennie Breene

* The Mayor is not required by Council to attend all committee meetings.

STRONG FOUNDATIONS for a bright future

Corporate governance For Council, governance involves open and transparent adherence to legislation, policies, processes and practices that ensure effective direction setting, decision-making, management and control to achieve organisational objectives.

OUR GOVERNANCE PRINCIPLES PRINCIPLE 1: Culture and vision

PRINCIPLE 2: Roles and relationships

Objective A positive culture exists to promote innovation, openness and honesty, while enquiry is encouraged and accountability is clear. There is also a clear city vision and strategic plan (2013–2018 Corporate Plan) produced through a comprehensive and inclusive process, which is owned by all parts of the organisation, including elected members.

Objective Clarity exists about roles and responsibilities in the organisation. Each staff member has a role statement, which is reviewed annually as part of our annual achievement planning and review process. Effective working relationships are promoted and supported within and between the Mayor, councillors, CEO and staff.

Outcomes • We finalised changes to business processes to align with the new Logan Planning Scheme and implemented master plans and local areas plans to ensure our city’s growth is well planned, provides a range of lifestyle choices and has long-term sustainability.

Outcomes • Our strategic planning and performance framework continued to illustrate our integrated planning, our performance reporting structure, and the roles played by our elected members, executive leadership team and management.

• We held our sixth annual strategic planning and review process to build on the methodology and processes introduced over the past five years. By undertaking this exercise, we can ensure the strategic objectives and activities can be adapted in a timely manner to changes created by internal and external influences.

• We provided comprehensive induction training to all new staff and councillors.

• We continued to provide a constructive work environment for all our staff through our leadership and development programs, employee initiatives such as the annual employee innovation and excellence awards, and branch culture journey projects.

• We provided Code of Conduct training to councillors and staff. • We conducted our annual achievement planning and review process, which provides an opportunity for a meaningful two-way conversation between staff and supervisors on their role and performance over the past year.

Excellence in Local Government

PRINCIPLE 3: Decision-making and management

PRINCIPLE 4: Accountability

Objective Effective decision-making processes are in place to reflect transparency and accountability. These are publicly accessible via Council’s website. Robust and transparent financial management processes have been established and are maintained to meet accountability requirements now and into the future. Risks are effectively identified, assessed, managed and monitored.

Objective Active performance management systems are in place whereby elected members and staff are openly accountable for their performance. Independent review of processes and decision-making, and appropriate public consultation is undertaken on key projects and initiatives.

Outcomes • We continued to produce annual business plans and report on key performance indicators and projects — that directly align to our strategic objectives — on a quarterly basis in the Operational Plan performance report. • We reviewed and updated our risk management tools and templates to ensure alignment between our organisation-wide risk management framework and international standards. • We continued to focus on asset and services management by implementing priority actions from our new Asset Management Strategy.

Outcomes • We continued our requirement that all branches have business plans and develop key performance indicators to guide project delivery and track performance. • We continued to complete quarterly performance reports against our Operational Plan and branch business plans, resulting in increased transparency and accountability. • Our Organisational Report Card continued to help our senior leadership team monitor and evaluate our performance as an organisation. • We continued the internal audit review function, implementing a number of improvements to existing business processes. • We gathered feedback from the community on key initiatives through our community engagement practices and utilised this data to inform our annual budgeting and planning process.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

ORGANISATIONAL LEADERSHIP TEAM Logan City Council’s senior executive team, known as the Strategy, Leadership and Performance Team (SLPT), is made up of the CEO and four Deputy CEOs. The SLPT is responsible for overseeing the performance of the organisation and for delivering the outcomes expected by Council (as expressed in our Corporate Plan and annual Operational Plan). The SLPT meets formally once during every Council meeting cycle and on other occasions as required.

John Oberhardt DEPUTY CEO — ORGANISATIONAL SERVICES: JOINED COUNCIL IN 1984 John joined Council in 1984 after working with the Commonwealth Bank. He has worked in all areas of local government, particularly specialising in finance, governance, human resource management, and administration, as well as with many industry and community groups, and inter-governmental working parties and local communities. He is committed to the outstanding performance and reputation of Council, its staff, the local government industry and the community of Logan. John holds a Bachelor in Commerce Degree and a Master’s degree in Public Administration, is a Certified Practising Accountant (CPA) and holds a Queensland Local Government Clerk’s Certificate. He is a Fellow of Local Government Managers Australia (LGMA) and an LGMA Queensland past president and a Local Government Professionals Australia National Board Member. He is also a Fellow and Graduate Member of the Australian Institute of Company Directors and is a Justice of the Peace (Qualified). From 1 July 2015 to 7 April 2016, Mr Oberhardt was the Deputy CEO — Organisational Services. From 8 April to 30 June 2016, he acted in the role of Chief Executive Officer after Mr Chris Rose left Council.

Todd Rohl DEPUTY CEO — STRATEGY AND SUSTAINABILITY: JOINED COUNCIL IN 2009 Todd oversees development approvals, town planning policy, planning for future growth, investment and attraction, property development, environment management and health and waste management, and works with residents and customers to protect the amenity of the city. He became Deputy CEO in December 2012 and has worked in the private sector and all three tiers of government: local, state and federal. Todd has been involved in planning for more than 20 years and held senior management positions for more than 15 years. He is also involved in planner education in his role as adjunct lecturer in planning practice at James Cook University and is the current President of the Planning Institute of Australia, Queensland Division.

Synergy is a six metre solar-powered, moving sculpture that stands in the SouthWest 1 parklands. It represents a human form reaching to the sky with joy as it releases a four-metrewide representation of a sea eagle, ‘Mibunn’ — the one-time guardian of Scrubby Creek according to Indigenous Mythology.

STRONG FOUNDATIONS for a bright future

Silvio Trinca

Oliver Simon

DEPUTY CEO — ROAD AND WATER INFRASTRUCTURE: JOINED COUNCIL IN 2008

DEPUTY CEO — COMMUNITY AND CUSTOMER SERVICES: JOINED COUNCIL IN 2000

Silvio is a civil engineer with qualifications in business and company directorship. Before joining Logan City Council, he spent 23 years in local government in Western Australia, the final 10 as the Executive Engineering and Technical Services/Deputy CEO at the City of Canning. Silvio’s stream is responsible for the planning, delivery and construction of roads and water infrastructure, and Council’s disaster management capabilities. He has a strong interest in providing and managing quality public infrastructure and services. He is also committed to ensuring sustainability of assets and services throughout Council, and leads the strategic asset management functions across the organisation. Silvio holds a Bachelor in Engineering, a Graduate Diploma in Business, and a Diploma of Company Directors. He is a member of the Institution of Engineers Australia, and is a Fellow of the Institute of Public Works Engineering Australia.

Oliver had a strong focus on change management, infrastructure development and community planning. He was previously Community Services Manager at Caboolture Shire Council and a senior executive manager with the State Government. He was Logan’s Director of Community Services for six years before becoming Deputy CEO — City Services (later Deputy CEO — Community and Customer Services) in a realignment in 2006. Instrumental at driving reforms in major projects at Logan, he focused on infrastructure, establishing strong partnerships with other levels of government and developing innovative policy solutions. He has a Bachelor of Applied Science in Planning and a Graduate Diploma in Urban and Regional Planning. He is a Fellow Member of the Australian Institute of Company Directors and a member of Local Government Managers Australia and Regional Development Australia Logan and Redlands. From 18 May to 30 June 2016, CEO Office Manager Warren van Wyk acted in the role of Deputy Chief Executive Officer — Community and Customer Services after Mr Simon left Logan City Council.

SENIOR CONTRACT EMPLOYEES' REMUNERATION Remuneration levels for Council executives take many factors into account, including work value, the complexity of jobs and external independent and market-related benchmarks. This ensures remuneration levels for executives are appropriate and that Council is well-placed to retain and attract executives with the skills necessary to help deliver value-for-money services to the community. Executive staff members (the CEO and Deputy CEOs) are engaged under fixed-term, performance-based contracts. From time to time, Council engages appropriately-qualified external expertise to provide benchmarking data on the remuneration of management. This provides an objective process for aligning remuneration with established market data.

The following remuneration was paid to senior contract employees during the year: Employee

Remuneration

One senior contract employee with a total remuneration package in the range of

$405,000–$455,000

Four senior contract employees with a total remuneration package in the range of

$230,000–$280,000

The remuneration levels shown include a cash-base salary but do not include allowances, minor non-monetary benefits (e.g. professional memberships), or superannuation.

Remuneration packages for Council's executive staff may include short-term incentives subject to achieving agreed performance targets.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Working at Logan City Council OUR PEOPLE PLAN We are implementing our People Plan 2013–2016, which covers the challenges we must embrace to maintain our position as one of the leading councils in Australia. The City of Logan is ideally located between Brisbane City and the Gold Coast, offering outstanding lifestyle and business choices. We take advantage of highly regarded educational facilities, well-integrated transport networks, major shopping centres and modern cultural and sporting facilities. We pride ourselves on the natural and built environment of our city.

EQUAL OPPORTUNITY IN EMPLOYMENT Logan City Council is an equal opportunity employer. Our recruitment and selection policies and procedures are based on the principles of equity and merit. Merit-based selection is an assessment of an applicant's abilities, skills, experience, qualifications and potential against selection criteria set down in the position description — relative to those of other applicants. Our merit-based and equitable recruitment and selection process involves a range of activities designed to ensure:

While acknowledging the significant assets, attributes and opportunities in our city, we understand that it is excellent service delivery by our staff that is critical to Logan continuing to develop as a City of Choice.

• fair and open competition

The People Plan 2013–2016 helps shape our city's future by striving to create a culture of excellence, innovation, trust and respect among our staff. The plan places significant emphasis on developing a workplace where safety is front of mind and where quality applicants will seek employment, choose to stay and achieve high levels of personal job satisfaction.

• processes do not unfairly discriminate at any stage

It is a plan to:

• designed online and face-to-face training for all hiring

• ensure a safe and healthy working environment • attract and keep the right staff, who are focused on service excellence and share our values for a positive workplace culture • develop and empower staff • encourage the best outputs, with the emphasis on staff productivity and value for money • enable staff to learn and grow both professionally and personally. The key areas to be addressed over the life of this plan are: • safety, health and wellbeing • leadership and culture • workforce planning • contemporary work practices • achievement planning and review. It is a plan to create a place where our staff want to work and choose to stay.

STRONG FOUNDATIONS for a bright future

• a systematic and consistent process • selection criteria reflects the actual and realistic requirements of the position

• members of the selection panels are skilled and impartial. Over the past two years we have: • updated our recruitment webpage and have a constant link to our Equal Opportunity in Employment (EEO) webpage managers that incorporates EEO and raises awareness of unconscious bias. We work with a variety of providers to promote working with diverse groups and we have recently finalised our Reconciliation Action Plan, which has been endorsed by Reconciliation Australia.

BUILDING OUR VALUES-BASED CULTURE Having the right culture and providing strong leadership is an integral part of being an effective organisation that recognises 'people make the difference'. We began our leadership and culture journey in 2003. It is based around the internationally-recognised Human Synergistics model, where staff are involved, consulted and supported in identifying and enhancing positive styles of behaviour. Many iconic organisations such as Lion Nathan, Yarra Valley Water, Fairfield City Council, Kennards Australia and Adshel use the Human Synergistics model. We conduct an organisation-wide culture survey every three years to determine the 'actual culture' compared to the 'preferred culture'. The survey results feed back into our culture program and help us to gauge whether what we are doing on our culture journey is making a positive difference. Our most recent survey was conducted in October 2013 with results indicating an overall positive shift in the organisational culture. In response to the results, each branch led by the branch manager, developed and implemented strategies and initiatives to continuously improve their branch culture and implemented these via a branch Culture Action Plan. Organisationally, we have focused on developing and supporting our supervisors as they have the greatest immediate impact on our frontline staff who serve our community. We will complete the following culture-related work over the next couple of years: • ongoing work with our outside workforce to support productivity and engagement • a focus on effective leadership by aligning our processes with the behaviours expected under our Leadership and Performance Capability Framework • a focus on creating and culture that enables innovation and improvement • ongoing work to embed and make our organisational values meaningful across our organisation. Our next organisation-wide culture survey is scheduled for September 2016.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

EMPLOYEE EXCELLENCE AWARDS We introduced our Employee Innovation Awards in 2003 as a way of encouraging staff to find better ways of doing things in the workplace. The awards are hosted annually and have grown in popularity, with an increase in the number and quality of submissions.

As an organisation, we value excellence, and fundamental to achieving that is fostering enquiry, innovation and creativity with a focus on continuous improvement. These awards acknowledge those who have excelled in this area. Announced in March 2016, the 2015 winners were:

We marked the 11th anniversary of the awards in 2015 and changed the name of the awards. Based on staff feedback, some award categories were changed in 2015.

Outstanding Service in Council Awards (OSCA) Place

Nomination Title

Team Member/s

Winner

Team Spirit Award

Lyla Smith, Anita Huber, Michael Wellburn, Kerrie Stevenson, Kym Rudolph, Stephanie Williamson, Chamath Piyabandu, Emily Jaenke, Matthew Wesener

Winner

Charitable Causes/Community Champion Award

Suzanne Tollis

Corporation Innovation Award Place

Nomination Title

Team Member/s

Winner

Enterprise Reporting

Cliff Robertson, Shafiq Ahmed, Dwayne Parks, Mingyu He, Chris O’Rourke, Lisa Walton, Darryl Ellis

Runner-Up

The Vine Online Portal

David Adamson, Claudia Feiloivao, Ranya Hanna, Matthew Maguire, Larissa Ryan, Russel Rapisarda

Special Mention

Immunisation Consent Form — Data Scanning and Extraction

Gillian Hermosilla-Silva, Teresa Hall, Emma Pratt, Amanda Wentzel

Customer Service Innovation Award Place

Nomination Title

Team Member/s

Winner

Black Diggers of Logan

Annette Turner, Debra Cooper, Rowena Wilmott, Victoria Fraser, Robyn Daw, David Shaw, Toni Pollard, Sue Prenzler

Runner-Up

Sensory Space and Programs

Rowena Wilmott, Linda Thompson, Darshan Balasuriyar, Bryony Jensen, Jenny Hall, Megan Luhrs, Wendy Barling, Alexis Cavalchini, Julie Coates, Stacey-Lee Collins, Debra Cooper, Keith Gritty (deceased), Lipe Fanene

Special Mention

Totally Independent Management Supply — TIMS

William Hutchings, Ben Lemmon, Lester Bridgham, Mark Woods, Mark McHiggins, Steve Young, Gillan Hughes

Collaboration/Engagement Award Place

Nomination Title

Team Member/s

Winner

Eats and Beats

Nicole Davis, Kareen Duncan, Teresa Kaluci, Teena-Lee Dawkins, Alice Sherring, Katie Baillie, Fiona Fitzpatrick, Paul Massingham, Caitlin Row, Rebecca Smith, Natalie Matthews, Victoria Fraser, Nancy Wimbus, Dina Wirawan, Marielle Palmer, Gina Narayan, Ben Travaini, Cody Duschka, Karen Tattersall, Jon MacFarlane, Kate Dalton, Andrea Lomax

Runner-Up

Be Pet Smart Activity Book and Teacher’s Resource

Tamara Flynn, Kylie Brookes, Jackie Heal, Natalie Matthews

STRONG FOUNDATIONS for a bright future

Teamwork Award Place

Nomination Title

Team Member/s

Winner

Queensland Music Festival ‘Under this Sky — Logan’s Musical Celebration’

Nicole Davis, Teresa Kaluci, Tina Wittke, Amie Caune, Alice Sherring, Dina Wirawan, Michelle Griffin, Fiona Fitzpatrick, Gina Narayan, Di Ezzy, Rebecca Smith, Cody Duschka, Allan Wilson, Caitlin Row, Jon MacFarlane, Nigel Brown, Nancy Wimbus, Andrea Lomax, John Webb, Marielle Palmer, Anthony Wallis, Brent Dowden, Ben Travaini, Karen Lee, Jane Frawley, Karen Tattersall, Carla Ogle, Luke Baker, Kate Dalton, Carl Bayer, Paula Weston, Kareen Duncan, Deva Naiker, Deanna Nott, Teena-Lee Dawkins, Dennis Corry, David Shaw, Katie Baillie, Tracy Bignell, Deva Naiker, Paul Massingham, Brent Dowden, Narelle Cowan, Natalie Matthews, Justin Le Page, Oliver Simon, Victoria Fraser, Travis Black, Annette Turner, Lana Lockett

Runner-Up

Water Supply Bypass System

Mark Considine, Shafqat Gohar, Peter Hogan, James Luu, James Anderson, David Fell, Anthony Kajtar, David Parker, Denver Pollock, Mark Cygan, Sam Perera, Rajindar Singh, David Montoya

Special Mention

Tony’s Tidy Tray Organiser

Tony Allen

Sustainability Award Place

Nomination Title

Team Member/s

Winner

Innovative Water Leakage Detection

Steve Young, Lester Bridgham, Craig Kelly, John Christie, Jeremy Thomas, Mark McHiggins, David Thomas

Place

Nomination Title

Team Member/s

Winner

Design, Creation and implementation of a Community Disaster Dashboard

Margaretta Burton, Cody Duschka, Dominic Morris, Aaron Robin

Safety Award

Our popular monthly ‘Eats and Beats’ is a family-friendly event that combines live music with a variety of food trucks.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

LEADERSHIP AND STAFF DEVELOPMENT

STAFF HEALTH, SAFETY AND WELLBEING

Great leaders develop an understanding about who they are and how they lead within an organisation.

Measuring workplace safety

Leadership Development Program Our Leadership Development Program develops and refines the leadership competencies of our staff through a combination of individual coaching, group workshops and mentoring. This intense program challenges participants to increase their levels of self-awareness and to push boundaries that may be restricting their leadership potential. It was developed for and by staff, and was first offered 10 years ago. The program is highly regarded throughout the organisation and is in popular demand. Approximately 15 per cent of our workforce has completed the program. Enrolment is capped to ensure participants and mentors receive optimum support throughout the program and gain the most from the experience. Staff participation in our annual Leadership Development Program: seven-year trend*

We are part of the Local Government Workcare Scheme, whereby our lost time injury frequency rate (LTIFR) is independently calculated, tracked and benchmarked against a group comprising 10 similar-sized Queensland councils. As the number of lost-time injuries per hour worked is always a very small number, for ease of interpretation, a multiplier of one million is used. Therefore, LTIFRs are reported as the number of lost-time injuries per million hours worked. This is calculated as: (Number of lost time injuries in accounting period)

Lost time injury frequency rate compared to benchmark for similar-sized councils in Queensland: five-year rolling average Comparable data is not available for five years due to a change in methodology three years ago in the way data was reported. While we are unable to identify any definitive trends due to the minimal amount of data, it is positive to see that our lost time injury frequency rate has progressively decreased over the past five years and continues to be significantly lower in comparison to the benchmark group.

19 17.33

x 1,000,000

(Total hours worked in accounting period)

17.21

16.47

15 14.07

2011

2012

2013

2014

* The Leadership Development Program was not run in 2015 following a decision by the Strategy Leadership and Performance Team to offer the program biennially rather than annually.

Other development and training opportunities We are committed to investing in the professional and personal development of our employees and providing opportunities for staff to develop a successful career through: • formal professional and personal goal setting and action planning as part of our annual Achievement Planning and Review process • access to high-quality corporate training courses through the Corporate Development Program • financial and study leave assistance for staff obtaining recognised qualifications • branch-specific training and skill development • access to industry-leading speakers and seminars.

STRONG FOUNDATIONS for a bright future

2011/2012

2012/2013

2013/2014

2014/2015

Benchmark = 15

2010

Benchmark = 15*

2009

Benchmark = 19

2008

Benchmark = 19

Benchmark = 18

2015/2016

* The benchmark was revised down in 2014/2015 as Logan, along with a number of other similar-sized councils, were consistently achieving results below the previous benchmark of 19. Revising the benchmark helps ensure a continued focus on reducing the number of lost time injuries.

WORKPLACE STATISTICS Employee types: seven-year trend Full-time

Part-time

Temporary

Councillors

Casual

Total

2,014

1,409

1,394 1,215 1,014

94 49

1,705

1,703

1,585

2009/2010

1,273

1,255

1,237

1,002

93 44

1,274

1,711

1,682

230 13

2010/2011*

248 106 40 13

267 117 32 13

273 127 32 13

267 133 32 13

2011/2012*

2012/2013

2013/2014

2014/2015

289 130

24 13

2015/2016

* Our staffing numbers in 2010/2011 and 2011/2012 decreased because staff working in our water business were employed by the former Allconnex Water. We resumed control of managing water and wastewater services on 1 July 2012 after Allconnex Water was disestablished and staff returned to Logan City Council.

Staff age profiles: seven-year trend 15–24

25–34

35–44

414 403

55–64

65+

405 355 344 321

352 339 318

338

213

201

45–54

195 173

2009/2010

2011/2012

2012/2013

2013/2014

290

175

160

17 2010/2011

344 285

226

215

95 16

415

359

304

297 192

180

403 363

356

449

426 417

2014/2015

2015/2016

Staff gender comparisons: seven-year trend (percentage) Male 53.2

Female

52.5

51.4 49.8

48.6 46.8

2009/2010

51.6

50.2

2010/2011

2011/2012

47.5

2012/2013

2013/2014

2014/2015

LOGAN CITY COUNCIL

48.4

2015/2016

ANNUAL REPORT 2015/2016

OUR COUNCIL

Rolling average of separation: seven-year trend (percentage)

Our average staff turnover increased by 0.6 per cent in 2015/2016. We do not anticipate turnover will rise significantly in the short-term as there is currently a rise in unemployment across the region, state and country.

10.4 9.6 8.56

8.27

2009/2010

2010/2011

2011/2012

2012/2013

7.63

7.03

6.35

2013/2014

2014/2015

As an organisation, we pride ourselves on having much to offer our employees and the results for the previous two financial years are indicative of the satisfaction of employees with working at Council.

2015/2016

Years of service: five-year trend (percentage) 3 2

3 1

3 3

43 32 2011/2012

3 3

2012/2013

3 3

2013/2014

Less than one year

15–20

1–5

20–25

5–10

25–30

10–15

30+

33 2014/2015

2015/2016

OUR VOLUNTEERS Residents wanting to make a contribution to the community are able to participate in voluntary work through Council and we recognise the diversity our volunteers bring to the organisation. Voluntary positions are available in the home library service, at Logan Art Gallery, Mayes Cottage House Museum, Logan Entertainment Centre, our parks (through the Bushcare, Trailcare and honorary park ranger programs), the animal management centre (as foster carers and in-house volunteers) and the State Emergency Service. All of our volunteers receive a briefing on our expectations and of their rights and responsibilities as volunteers, including health and safety requirements and Code of Conduct training.

STRONG FOUNDATIONS for a bright future

A full copy of our Volunteers Policy is available online at www.logan.qld.gov.au/policies

Each year we recognise volunteers from across the city by hosting a breakfast. The Logan Loves Volunteers breakfast event is an opportunity to say thank you for the tireless contributions volunteers make to our community.

Internal audit, risk management and business continuity planning INTERNAL AUDIT Internal audit and risk management INTERNAL AUDIT Council’s Audit Committee is an advisory committee established under our Audit Policy and Internal Audit Charter. It complements the relationship between internal audit and the wider organisation, safeguarding the independence of internal audit and further increasing the effectiveness and value to Council of the internal audit function. The committee provides a review and monitoring function over our corporate assurance, audit, risk management and corporate governance activities and arrangements. The committee reports to Council through the City Treasury Committee. Members of the Audit Committee for 2015/2016 are detailed below. The change in membership is a result of the Queensland Local Government elections. Membership: • Councillor Luke Smith (Governance, Finance and Economic Development Committee Chair) until 5 April 2016 • Councillor Steve Swenson (Governance, Finance and Economic Development Committee Assistant Chair)

The internal PriceWaterhouseCoopers (PWC) function, performed on an outsourced basis by PWC, is part of an overall strategy towards continuous improvement, benchmarking and best practice. INTERNAL AUDIT ACHIEVEMENTS In the past 12 months, internal audit has reviewed, provided assurances and recommended control and efficiency improvements across our diverse operations in areas including: Review

Objective

Lease Management

The review assessed the revised Lease Management policies and procedures and related key controls for alignment with better practice.

Infrastructure Charging and Calculation Process

The review focused on the governance arrangements and key controls in place to manage infrastructure charging processes and communication protocols.

Data Analysis Strategy

The objective of this work was to assist in developing an effective data analytics strategy, to enhance internal controls and maximise the benefits stemming from an investment in data analytics.

CCTV Review

The review focused on the processes and procedures for the monitoring room prior to the centralisation of additional CCTV processes.

Payroll

The review considered the adequacy of selected key controls over the payroll process with the work focusing on areas such as data analytics and payroll protocols.

Community Benefit Fund

The review focused on the processes associated with GST for Community Benefit Fund applications.

Fraud Risk Management

The review focused on reviewing and refreshing Council’s high-level Fraud Risk Assessment and fraud processes.

Councilwide Data Integrity

The review considered the integrity of the information held within Council’s rates system and the interface of data with other key Council systems.

until 5 April 2016 • Councillor Trevina Schwarz (proxy member in the absence of either the above elected representatives) until 6 April 2016, when Cr Schwarz as City Treasurer became Chairperson of the Audit Committee • Councillor Jon Raven (City Treasury Committee) from 6 April 2016 • Councillor Laurie Smith (proxy member in the absence of either Cr Schwarz and Cr Raven) from 6 April 2016 • John Oberhardt (Deputy Chief Executive Officer — Organisational Services) • Oliver Simon (Deputy Chief Executive Officer — Community and Customer Services) until 17 May 2016 • Len Scanlan (External Representative). Representatives from both the internal and external audit providers also attend Audit Committee meetings. A Queensland Audit Office representative has a standing invitation and regularly attends Audit Committee meetings as an observer.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

OUR COUNCIL

Overall, the reviews noted sound control procedures with only two high risk areas of concern being identified, which management has immediately enacted strategies to address. In all other cases, recommendations were made to further develop and improve the respective governance, risk management and control processes. These recommendations were accepted by management and endorsed by the Audit Committee for implementation. The implementation of actions is pursued through the audit issues monitoring process, which involves the internal auditors validating all issues through the follow-up process prior to closure. The outcome of this process is reported to the Audit Committee on an ongoing basis. In developing its annual Internal Audit Plan, Council has a forward-looking three-year plan that is revisited each year and is flexible throughout the year to the changing needs and risks as they arise within Council. RESPONSIBILITY FOR CORRECTIVE ACTION Responsibility for implementing the audit recommendations ultimately rests with management and this is reflected in our Internal Audit Policy.

Copies of the Internal Audit Policy and Audit Committee policy are available online at www.logan.qld.gov.au/policies

RISK MANAGEMENT We recognise that risks are an integral part of any organisation and understand the importance of managing risks at the appropriate level. Our Risk Management Policy promotes a standard approach to risk management throughout the organisation and ensures risks are identified assessed and treated at an acceptable level. We use the Australia/New Zealand Risk Management Standard ISO31000:2009 (or any subsequent successors) as our risk management methodology. This standard describes the main elements of the risk management process as: STEP 1 — establish the context STEP 2 — identify risks STEP 3 — analyse risks STEP 4 — evaluate risks STEP 5 — treat risks STEP 6 — monitor and review risks.

STRONG FOUNDATIONS for a bright future

The Council-Wide Risk Management Framework Version 5.0 was adopted by the Health, Safety and Risk Management Committee on 4 May 2015. The framework promotes a consistent approach to optimise opportunities and mitigates potential loss. Our framework supports Council’s Policy — Risk Management (adopted 17 May 2016) and details how risk management should be implemented across Council. Risk management tools and a suite of document templates to guide staff through the risk management process is found on our intranet. Staff have access to risk management tools such as but not limited to: • Council-Wide Risk Management Framework • Policy — Risk Management • Logan City Council Risk Matrix • Risk Report Form • Risk Report Form Guide • Risk Workshop Tool — Identifying and Categorising Risks • Checklist: Risk Management Self-Assessment.

A full copy of our Risk Management Policy is available online at www.logan.qld.gov.au/policies

Council considers that it has a mature risk management approach. Our practices are interactive whereby relevant reports are tabled at the Health Safety and Risk Management Committee (HSRMC). The role of the HSRMC is to oversee the operations of Health, Safety and Risk Management in Council with a view to ensuring that Council's staff are provided with education, training, support and appropriate tools in the health, safety and risk management aspect of our business. This includes endorsing an appropriate framework of internal control and risk management, and that Council meets its health and safety legislative obligations.

BUSINESS CONTINUITY PLANNING MA N

E AG

PR E

The driver for business continuity is supported by the recent Business Continuity Management Directive BUSINESS (approved 14 December 2015). CONTINUITY The objective of this Directive is to M E resume normal business operations O C RE after a crisis is declared by the Crisis Management Team Leader. Risks that threaten the continuation of the delivery of products and services will be identified and effective preventative and responsive recovery strategies will be developed, implemented and maintained. RE PA

‘Low Precipitation Supercell over Crestmead’, Logan Queensland. Hidden Gems photo competition. Photo: Kirsty Hellmech.

Business continuity planning involves developing a practical plan for how we prepare for and continue to operate after an incident or crisis disrupts our daily business operations. Council's six plans (Master Plan, Office of the CEO Recovery Plan and four Stream Recovery plans) assist staff: • to prepare for a disruption/crisis • manage a disruption/crisis • recover critical business functions • resume normal business operations. Council's Business Continuity Plans Version 7.0 were last updated in June 2016. As part of the process, managers review their sections of the plans and the Risk Management and Insurance Program update the documents. The master document is divided into three main sections, which correspond to key phases of a crisis. Phase

Description

Phase 1: manage the crisis

This section provides a protocol for stabilising the situation. It includes a list of immediate crisis actions, impact assessment tools, contact lists, and key roles and responsibilities.

Phase 2: recover critical business functions

This section includes a series of strategies designed to enable the recovery of critical business functions for each organisational stream immediately following a business disruption.

Phase 3: resume normal business operations

This section contains a series of actions and steps designed to return the organisation to its pre-disruption status. This includes restoration or relocation of facilities and resumption of operations. Business resumption protocols will begin as soon as possible after activation of the business recovery protocols without interfering with critical tasks or diverting key personnel from the initial recovery process.

The review and update of our business continuity plans is an integrated part of our annual strategic planning and review process. We independently test the reliability of our plans and prepare our crisis management team for a potential business disruption annually through a business continuity scenario test exercise. We also build business resilience across the organisation by offering annual business continuity training and awareness sessions to all staff.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

STRONG FOUNDATIONS for a bright future

Performance reporting This section explains how we manage our reporting within the organisation and introduces the four streams of services that we provide for the community. It outlines our performance in delivering key projects for the city and meeting our Key Performance Indicators (KPIs) as per our 2015/2016 Operational Plan.

Strong foundations for a bright future: Jazz and Shiraz is one of Loganâ&#x20AC;&#x2122;s most popular annual events.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Our framework Our strategic planning and performance management framework (‘our framework’) sets the context for our reporting requirements and comprises: • a set of linked planning and performance documents • a process explaining how these documents are developed and reviewed • an explanation of the focus for each document • an explanation of how each document influences others in the set.

It integrates the performance management process so progress against our plans is measured, tracked and reported to the right audiences and at the right times. It is an important part of delivering effective corporate governance through open and transparent practices. This ensures we exceed the standards of good governance as set in the national frameworks for financial sustainability, asset management, financial planning and reporting, as adopted by the Local Government and Planning Ministers' Council in 2007.

IMPLEMENTATION OF THE FRAMEWORK Strategic planning ensures that our city remains sustainable for current and future generations, and that all key stakeholders are aware of, and have a say in, its development. The Corporate Plan 2013–2018 came into effect from 1 July 2013. It is the city's key strategic plan as it translates the needs and expectations of our communities into a long-term city vision and priorities for the organisation to take forward. Community consultation played a key part in development of the five-year Corporate Plan. The diagram to the right represents the strategic planning framework used by Council and illustrates where the Corporate Plan fits within that framework. In 2014/2015, we reviewed our Corporate Plan 2013–2018 to ensure alignment with the Queensland Plan Act 2014. Our performance and actions taken that relate to the nine foundation areas of the Queensland Plan are detailed in this section under the relevant Corporate Plan priority areas.

Queensland Plan (State Government)

Our planning and performance process

Our planning and performance documents

Set long-term vision

City Vision

Identify priorities and service delivery commitments

Five-year Corporate Plan

Organisational Priorities Plan Determine and implement operational projects

Monitor and report on performance

STRONG FOUNDATIONS for a bright future

Annual Operational Plan and Budget (incorporated into all Branch Business Plans)

Quarterly Performance Assessments and Annual Report

THE OPERATIONAL PLAN AND BUDGET We identify our work commitments every year through an Operational Plan, which includes key projects and key performance indicators (KPIs) that respond directly to the priorities of the Corporate Plan. The annual budget is then developed based on the agreed priority areas. Once adopted, the Operational Plan becomes an accountability document that the organisation reports against throughout the financial year — on a quarterly basis — to Council and the community. It is important that we remain accountable for delivering key projects and meeting KPIs, as per our Operational Plan, and this will remain a key focus over the coming years.

BRANCH BUSINESS PLANS Although all elements of the strategic planning and performance management framework are equally important, we believe requiring each branch to have approved business plans has had a significant positive impact on our organisation. All branch business plans are reviewed annually to ensure they remain aligned with our emerging organisational priorities. These business plans are required to have meaningful projects and KPIs, which has led to an overall and ongoing improvement in the quality of planning and accountability, at the branch level, across the organisation.

These priorities were incorporated into the annual business planning cycle, which fed into the Operational Plan and budget development for 2016/2017. In addition to the Corporate Plan 2013–2018, SLPT endorsed priorities that detail our organisation's mission, twin goals and values and the initiatives that we will give particular attention to in 2016–2017. The diagram below shows how the annual planning, budgeting and reporting cycle is integrated and driven by our Corporate Plan priorities and updated each year.

MONTHLY • Branch reports • Corporate financials • Stream reports

JAN

FEB

Business plans are strongly aligned to our higher level Corporate Plan and, in turn, provide strong planning direction to the annual Operational Plan and Budget.

MAR

STRATEGIC REVIEW

APR

We held our sixth annual strategic review process in 2015/2016, building on the methodology and processes introduced over the past five years. The annual strategic review process involves managers and executive leadership (SLPT), with a goal of establishing a methodology to assess our current situation and determine a position for moving forward in line with our strategic objectives. By completing this strategic exercise on an annual basis, we are able to adapt to changes and take opportunities created by internal and external influences in a timely manner. The annual strategic review process consists of three phases: • reviewing the previous year's performance

JUN

• Quarter 2 Operational Plan, Organisational Report Card and stream reports

• Annual Corporate Plan review • Annual Organisational Priorities review

• Budget review 2 • Annual Branch Business Plan review

• Quarter 3 Operational Plan, Organisational Report Card and stream reports

• Operational Plan adoption • Budget adoption

JUL

• Quarter 4 Operational Plan, Organisational Report Card and stream reports

OCT

• Quarter 1 Operational Plan, Organisational Report Card and stream reports • Budget review 1 • Annual Report

• identifying the emerging issues, drivers and trends • setting organisational priorities.

LOGAN CITY COUNCIL

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PERFORMANCE REPORTING

ASSET MANAGEMENT Our asset management service delivery coordination team is chaired by the Deputy Chief Executive Officer — Road and Water Infrastructure and involves all relevant Council branches. The team is responsible for reviewing the Assets and Services Management Policy, Assets and Services Management Strategy, and various asset management related planning documents on an ongoing basis to help Council manage assets and deliver services in a financially sustainable manner. It also provides effective communication between elected members, staff and the executive leadership team to promote and raise awareness of asset management principles.

We continue to improve our approach to assets and services management planning for all asset classes through the development of, and on-going improvements to, Assets and Services Management Plans. Assets and Services Management Plans provide a critical link between our Assets and Services Management Policy, Assets and Services Management Strategy, Corporate Plan, Long-Term Financial Plan and Local Government Infrastructure Plan. The plans guide the management of the various assets under our control and take a whole-oflifecycle approach to ensure all assets are appropriately managed throughout their lifecycle from creation to disposal.

Why do we have Assets and Services Management Plans?

What information do we put in our Assets and Services Management Plans?

• There are legislative obligations for asset

Our Assets and Services Management Plans are structured and developed based on industry best-practice approaches and frameworks.

management planning: – Local Government Act 2009 — section 104 (5) (a) (ii) – Local Government Regulation 2012 — sections 167, 168, 202 (5). • It is good business practice because: – The plans provide a lifecycle framework for managing

• They address six key elements of asset management: – levels of service – future demand – lifecycle management

our assets, which have a current replacement value of

– financial requirements

more than $6 billion.

– asset management practices

– Our assets exist to serve the community so we need to ensure they are appropriately managed to support service delivery. – The plans help ensure financial sustainability by understanding future financial commitments and what is needed to address these in the medium to longterm. This helps the elected Council to make informed decisions during the budget and long-term financial planning process.

– improvement plan. • They provide critical asset information, including: – asset values and depreciation – asset sustainability analysis – what funding is required to manage assets – service deficiencies – what is spent on managing assets – condition information.

STRONG FOUNDATIONS for a bright future

Asset management framework This framework provides the structure, parameters and line of sight between strategic and operational asset management within Council. Internal influences on asset management

External influences on asset management International Standard ISO 55000

National Framework

Legislation, regulations, standards and State Government expectations

Growth Management and Settlement Patterns

Long-term Financial Management Strategy

Assets and Services Management Policy

Strategic

Corporate Plan

Levels of Service

Growth Management

Asset Management Strategy

Capital and Operational Major Projects Enhancements Schedule (COMPES)

Asset Management Improvement Program

Total Assets and Services Management Plan (TASMP) (Whole of Council)

Assets and Services Management Plans (ASMPs) (Developed by Asset Custodians)

Operational

Asset Management Standards, Guidelines, Systems and Data (Tools and Rules) e.g. IPWEA Practice Notes, Data Standards (ADAC), Asset Custodianship, Operational Policy

LOOKING AHEAD TO 2016/2017 • We will continue our asset management journey by

• We are looking to implement a Strategic Asset

identifying opportunities to improve our approach to

Management and Maintenance System (SAMMS), which

asset management. This will involve:

will involve reviewing resources, processes, data and

– undertaking maturity assessments of our asset

technology. Stronger asset management governance

management practices against accepted industry standards – continuing to revise our levels of service – providing a stronger risk-based approach to asset

arrangements and clarity on roles and responsibilities for asset custodians will play an integral role in this initiative. (See CEO Directorate 'Looking Forward: Key Actions for the next 12–18 months' on page 58).

management – developing a better understanding of asset lifecycle costs to deliver services to the community.

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PERFORMANCE REPORTING

CEO Directorate 2015/2016 summary The CEO Directorate takes a lead role in advancing organisational planning and performance, business improvement and strategic asset management, and providing executive support to the Chief Executive Officer, the executive leadership team, councillors and the community.

BRANCHES • Office of the CEO

CORE SERVICES • organisational strategy and business planning • performance reporting and development

• strategic asset management planning • executive administration and business support

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS/KPIs * Performance for internal services directorates/streams is measured via monthly reporting against corporate KPIs, as well as projects and KPIs captured in each branch's annual business plan.

• business improvement

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We coordinated the annual strategic planning and review process including: – production of the 2016/2017 Operational Plan – coordination of the annual branch business plan review process – coordination of the organisational priorities plan – provision of customised reporting options via our corporate performance reporting software, Reflector. • We reported to Council and the community on the delivery of our Operational Plan and Organisational Report Card through quarterly reports (available on our website). • We produced a quality 2014/2015 Annual Report, which was awarded a Gold Award by the Australasian Reporting Awards. • We finalised the Addendum to the State of the City Report. • We conducted an organisation-wide review of our corporate reporting practices and identifying opportunities for improvement. • We undertook an organisation-wide Asset Custodianship Review, which identified areas of misalignment between delegated responsibilities and asset custodianship. • We commenced testing a significant upgrade to our current corporate reporting software. • We implemented priority 1 actions from the Asset Management Improvement Plan. • We confirmed arrangements for a Strategic Asset Management and Maintenance System and commenced

STRONG FOUNDATIONS for a bright future

preparation work for its organisation-wide implementation. • We undertook preliminary research in preparation for the review of Council Corporate Plan. • We developed an Asset Design As Constructed (ADAC) webpage, which details Council's As Constructed data requirements asset contributors must meet and made it available on Council's website. • We developed and delivered a successful South-East Queensland CEO's Peer Mentoring Program for the second year running. This initiative invites CEOs of rural, remote and Indigenous Queensland councils to visit and learn from larger South-East Queensland councils. • We delivered all 2015/2016 business improvement initiatives as per the Business Improvement Plan including: – adoption of a business improvement methodology and development of an e-learning module to enable managers to deliver improvement initiatives in a planned and consistent way. – completion of business improvement pilots, which delivered many of the desired benefits for the branches involved. • We completed the preliminary work for the Logan Listens: Residents' Survey, with the survey scheduled to occur in September 2016. • We reviewed our Project Management Framework and implemented identified improvements to the framework itself and associated tools and templates.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will commence the implementation phase of the Strategic Asset Management and Maintenance System across Council. • We will establish an Asset Custodianship Working Group to oversee the development of asset transition plans and their implementation. • We will implement upgrades to our corporate reporting software to deliver improvements to system reliability and functionality. • We will conduct our Logan Listens: Residents' Survey and use the results to inform our service delivery. • We will review and update our Assets and Services Management Plans. • We will produce our 2015/2016 Annual Report. • We will undertake an investigation to identify asset management sustainability indicators that complement the asset sustainability ratio. • We will develop a Levels of Service Framework that will inform the process for identifying current levels of service across the organisation. • We will continue to implement the Asset Management Strategy through an annual Asset Management Improvement Plan. • We will conduct a performance measurement education campaign to empower staff to improve performance measurement practices across the organisation. • We will continue to inform Council and the community on the delivery of our Operational Plan through quarterly reports (available on our website). • We will facilitate our Annual Strategic Planning and Review process to embed a planning and review cycle including: – production of the 2017/2018 Operational Plan – coordination of the annual branch business plan review process – coordination of the organisational priorities plan. • We will conduct our biennial Internal Services Survey to identify opportunities to improve the provision of current internal services.

Logan Central Library.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Road and Water Infrastructure stream 2015/2016 summary The Road and Water Infrastructure stream combines the planning, design, construction and ongoing maintenance of road, drainage, water and wastewater infrastructure. Disaster management planning and response, and strategic asset management coordination also sit under this stream.

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN

ROAD AND WATER INFRASTRUCTURE DIRECTORATE

PROJECTS

• Disaster Management Program

BRANCHES • Road Infrastructure Planning • Road Construction and Maintenance • Road Infrastructure Delivery • Water Business • Water Infrastructure • Water Operations

CORE SERVICES • disaster management coordination • specialist engineering advice • road infrastructure planning, design, construction and maintenance • land surveying, mapping and aerial photography • road and drainage contract management • transport planning • road safety coordination • traffic operations • flood and stormwater planning • infrastructure renewal planning • providing a clean drinking water supply • collecting, treating and disposing of wastewater • future planning, design and construction of new water and wastewater infrastructure • management and maintenance of all water and wastewater network assets

STRONG FOUNDATIONS for a bright future

(these are not linked to a specific priority focus)

On track/completed: • Complete stormwater schedule of works for the Local Government Infrastructure Plan (LGIP) Target: July 2015 • Complete Transport Network Schedule of Works for the Local Government Infrastructure Plan (LGIP) Target: September 2015 • Implement Council’s Road Safety Strategy through the SafeRoads4Logan Road Safety Action Plan 2014–2016. Target: 2015/16 actions implemented by June 2016 Undeliverable: • Nil Not proceeding: • Nil

KPIs Meeting/exceeding target: • Nil Monitor: • Nil Below target: • Nil

(Scorecard definitions can be found on page 8).

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We continued our commitment to improving rural roads by delivering a further $1.5 million worth of upgrades as part of the Gravel Road and Shoulder Sealing Program.

improve safety for motorists entering and exiting this facility onto Browns Plains Rd. • We completed three master drainage projects to increase

• We allocated an additional $2.75 million to Pavement

stormwater immunity for surrounding properties and

Rehabilitation in the 2015/2016 budget to maintain

reduce the effects of local flood issues in Forestglen

Council's local road network. In total, $37.5 million

Crescent Catchment at Browns Plains, Schodel St

was dedicated to the maintenance of the road network

Catchment at Woodridge and Arlington Cres Catchment

including, kerb and channel, stormwater, footpaths, traffic signals and bridges. • We started an upgrade of Chambers Flat Rd, which will

at Underwood. • We completed a project (jointly funded with the Federal Government) to replace the Darcy Edmunds Bridge with a

include the construction of new traffic lanes to increase

new arched concrete culvert catering for the predicted 6

road capacity to two lanes in each direction and building

per cent annual growth and increased road usage in the

new signalised intersections including U-turn facilities.

Jimboomba area.

• We completed $4 million upgrades to Teviot Rd from

• We completed the final phase of a seven-year project

Flagstone Creek Bridge to Mountain Ridge Rd including

to deliver Council's largest ever wastewater network

widening of traffic lanes and road shoulders, resurfacing

upgrade — the Alfred Street pump station to Loganholme

and line marking, and installation of a dedicated right-turn

Wastewater Treatment Plant pipeline duplication project.

lane to Tralee Crt, which improved the road condition, road safety and road drainage. • We completed upgrades to the intersection of Browns Plains Rd and Logan Metro Indoors Sports Centre to

• We completed the first stage of a trunk wastewater pipeline to service the Bahrs Scrub Local Development Area, flagged as a key growth area expected to be home to 10,000 residents over the next 20 years.

Council contractors replace ageing water mains in Rochedale South.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

• We replaced approximately 9 km of 100 mm to 600 mm diameter pipelines during 2015/2016 as part of the water mains replacement program. Historical

• We finalised the Asset Optimisation Plan for Wastewater Treatment Plants. • We had another successful year of delivering actions

failures of the asset, visual condition assessments

from our SafeRoads4Logan Road Safety Strategy, with

and failure consequences are all considered in the

data indicating that we are achieving the key objective

prioritisation of water main replacement.

of the strategy by reducing road trauma by 10 per cent.

• We constructed 2.1 km of trunk water pipeline along New

Some of the key actions delivered throughout

Beith Rd, as well as valves and connections to optimise

2015/2016 included:

the water supply network in the Road Mountain reservoir

– Road Safety and Fatality Free Friday displays at

water supply zone and enhance water quality. • We delivered large capital works programs in 2015/2016 including:

Jimboomba Markets, Beenleigh Town Square and Logan Central McDonalds to raise awareness of the road safety message

– a record $73.5 million of roads and drainage capital

– Delivery of Black Spot projects on Browns Plains Rd

works, exceeding expectations with an outcome of

(anti-skid treatment) and West Mt Cotton Rd (vehicle

102 per cent against the original budget allocation

actuated signs).

– $48.1 million (96 per cent) of water infrastructure projects.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We have committed $73 million to improve roads, drainage, footpaths and bridges throughout the city, recognising the criticality of a well-built and maintained road infrastructure network. • We will continue to work with Griffith University researchers to develop an innovative flooded-road warning system for installation of priority flood-prone roads within the City of Logan. • We have committed $42 million to continuing to provide a reliable water and wastewater service to our residents. • We have key wastewater projects planned for 2016/2017 including:

– $3 million to replace water meters and services across the city – $2.1 million to replace and improve hydrants, values and flow meters to increase performance, reliability and safety of the water supply network. • We will continue the delivery of a $3.7 million pressure management program in the southern parts of the city. • We will invest $4 million into the Integrated Local Transport Plan to improve and increase services to the city and $470,000 for installation of mobile speed warning signs to encourage safe driving on our local streets. • We will need to address the need to increase capital

– $15 million to improve the capacity and environmental

works programs for both roads and water infrastructure

outcomes related to the Slacks Creek trunk sewer

over the next five years to accommodate the significant

– $5.9 million to improve Beenleigh's wastewater network to cater for growth – $5.3 million to upgrade the wastewater network in central Beenleigh – $4.2 million to renew wastewater mains and manholes across the city – $6 million to begin planning the Cedar Grove wastewater catchment network to service the Greater Flagstone area – $2.4 million for planning of the wastewater catchment network to serve Yarrabilba and surrounding suburbs. • We have key water projects planned for 2016/2017 including: – $7 million to replace water mains across the city as part of our Water Main Replacement Program

STRONG FOUNDATIONS for a bright future

growth predicted in the city. • We will complete the $1.5 million Van Dieman Crescent Master Drainage Project at Springwood to reduce the effects of local flooding by improving stormwater immunity for surrounding streets. • We will contribute to the development of a South Coast District Regional Transport Plan to ensure collective transport priorities are incorporated in an integrated transport plan for the South Coast District. This will set the scene for development of a Local Integrated Transport Strategy for Logan City. • We will plan and deliver the program of works associated with the Logan South Wastewater Servicing Strategy.

Community and Customer Services stream 2015/2016 summary The Community and Customer Services stream develops and delivers facilities, policies and programs that enhance the quality of life for Logan residents. This is achieved by collaborating with the State and Federal governments and community agency partners.

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN

BRANCHES

PROJECTS

(these are not linked to a specific priority focus)

• Animal and Pest Services

On track/completed:

• Marketing

• Implement the Arts, Culture and Heritage Strategy 2014–17 Target: 2015/16 actions implemented by June 2016

• Media and Communication • Sport, Leisure and Facilities • Customer Service • Community Services • Libraries and Cultural Services • Parks

CORE SERVICES • animal management, including customer requests, impounds, cat and dog sales and re-homing, and community education • health operations, including immunisation, graffiti removal, and pest and weed control • community engagement, city events, marketing, media and corporate communication for Council programs and services • social planning, including targeted community development initiatives and sport and recreation • community safety programs and initiatives including safety cameras • customer service delivery for the organisation • library and cultural services, including public art programs, history and local heritage resources, community learning and support programs • public swimming pools • facilities planning, construction, maintenance and management, including community venues, aquatic centres and sports facilities, as well as management of

• Implement and review the effectiveness of the Customer Experience Project Target: June 2016 • Update the Animal Management Strategy Target: March 2016 • Complete the Leasing Backlog Project Target: June 2016 • Complete the installation of Federal Government funded safety cameras Target: June 2016 Undeliverable: • Nil Not proceeding: • Nil

KPIs Meeting/exceeding target: • Percentage of de-sexed dogs released from the Animal Management Centre (not including sales or rehoming dogs as they are already de-sexed) Target: 60 per cent of dogs released as desexed • Complete inspections of properties with regulated dogs Target: 78 reinspections completed annually • Complete inspections of water bodies (e.g. Tygum Lagoon). Target: 216 inspections conducted annually Monitor: • Nil Below target: • Nil

Logan Entertainment Centre and Beenleigh Events Centre • parks planning, construction, management

(Scorecard definitions can be found on page 8).

and maintenance, and cemeteries management and maintenance

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ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We continued our City Pride Program activities to foster

The luncheon linked growers and producers with industry

community spirit and positive word-of-mouth through

groups and supply chain buyers. Five producers are

the Buy Local campaign in partnership with more than

now in discussions with new business leads. We also

120 local businesses to generate awareness and support

promoted local growers and producers at the Good Food

for local products and services and the “Proud to be

& Wine Show to 15,000 visitors and the 2015 Ekka,

Australian, Proud to live in the City of Logan” Australia

resulting in 8,000 stand visitors.

Day digital campaign featuring the Pride Video with an effective reach of 43,631 people. • We launched Phase 2 of the City Image Campaign in May 2016 featuring testimonials from celebrity spokespeople Brisbane Broncos Captain Corey Parker, official food ambassador Poh Ling Yeow and Brisbane Roar Coach John Aloisi about the City of Logan being an ideal location to visit, live and invest. We also hosted Poh in Logan from 30 October to 1 November 2015 as she filmed promotion pieces for the City Image Campaign. • We continued the City of Logan Growers and Producers activities to create awareness and change perceptions of the city. These activities included the Food Ambassador Program along with activations at the Ekka, Fine Foods Queensland, Good Food and Wine, the Taste of Logan Producers Lunch, Global Food Village and Regional Flavours in partnership with local growers and producers.

• We welcomed home City of Logan songstress Dami Im after her success at Eurovision, with a homecoming event held on 31 May 2016 at John Paul College’s Cec Munns Sports Centre. • We hosted the official opening of the new Beenleigh Town Square by Australian Prime Minister Malcolm Turnbull. • We worked with Channel Nine on the Love this City documentary showcasing the City of Logan’s lifestyle, tourism and business features which aired on 21 May 2016, receiving positive reviews and winning its slot in the Brisbane South market. • We proactively pitched 123 media stories to metropolitan media including the effectiveness of Logan's Safety Camera Program, the city’s continued growth with four new suburbs gazetted by the State Government, the official opening of the Beenleigh Town Square (including the visit by the Prime Minister) and the use of the koalaseeking dog to track the city’s koala populations.

Gospel singers who formed part of the City of Logan Pride Video.

STRONG FOUNDATIONS for a bright future

• We ran an advocacy campaign in the lead-up to the

• We worked with the community on Logan’s Queensland

federal election and achieved significant coverage with

Music Festival event Under this Sky in August 2015 featuring

outstanding advertising space rates. The campaign

1,000 local performers and more than 13,000 attendees.

included the #letsgetmoving campaign focused on the

• We successfully advocated for changes to the Higher

M1 between Beenleigh and Underwood, the Mt Lindesay

Education Support Act 2003 to help eligible New

Hwy, the roll-out of the NBN across the city and the

Zealanders access student loans.

Salisbury to Beaudesert railway line. • We continued our monthly food truck festival Eats & Beats, which has attracted patronage of more than 57,000 residents and visitors and engaged with local businesses, while featuring unique locations around the city and promoting a safe, family-friendly environment. The Eats & Beats Christmas Festival ran on five consecutive Fridays from November 2015 and attracted 33,000 patrons. • We developed and launched the Logan Safe City Strategy and Action Plan 2016–20. • We continued the Safer Streets camera roll-out with a slight delay due to variations in soil tests and foundation requirements. • We supported the Logan Village/Yarrabilba Week of Action from 18 to 24 April 2016. • We endorsed the Reconciliation Action Plan, including installing Aboriginal and Torres Strait Islander flags at Council's Administration Centre. • We supported the City of Logan Community Safety Symposium on 29 April 2016 at Griffith University Logan Campus with more than 180 attendees. • We installed “welcome” language signage on the Logan City Council administration entrance window as part of our City of Choice initiative. • We successfully advocated for external funding contributions for the expansion of Logan's safety camera network and construction of our new safety camera monitoring room. • We installed “welcome” banners in 36 languages during July in all nine Logan City Council libraries.

• We welcomed the $600,000 National Community Hubs Program to support the Logan community from the Scanlon Foundation. • We celebrated as the Aqualogan Laurie Lawrence Swim School was awarded Best Swim School in Australia by industry peak body Austswim. • We worked with the community to deliver the KRANK School Holiday program to more than 5,000 young participants. • We delivered more than 80 community activities through the Live Well Logan initiative aimed at healthy living and wellness. • We supported the establishment of parkrun in parks throughout the city. • We delivered 115 per cent of our original schedule of parks capital projects, which equated to 175 projects delivered during 2015/2016. • We supported Jamie's Ministry of Food mobile kitchen as they ran two cycles of classes for more than 500 community members. • We launched the Sensory Space at Marsden Library in December 2015, providing an innovative community place where Logan’s children of all abilities can explore and learn through technology and sensory experiences, including touch, sight, sound and movement. • We hosted a successful Animating Spaces Logan: Arts in the Park event attracting more than 3,000 attendees and 300 performers, artists and volunteers to Logan River Parklands. • We launched Logan’s first Public art and heritage trail:

• We developed a Domestic and Family Violence

Logan Village to Beenleigh containing classic houses,

Community Reference Group and Action Plan.

old pubs, historic churches and cemeteries, inspiring

• We commenced engagement and financial planning for Logan Together, which is an initiative established in partnership with representatives from all three levels of government, non-government organisations, schools and various community groups to bring Logan children up to and beyond state averages within 10 years. • We commenced delivery of programs throughout Logan as part of the First 5 Forever family literacy initiative — supporting stronger language and literacy for children from 0 to five years (First 5 Forever is funded by the Queensland Government and Council supported by Logan Together).

sculptures and vibrant murals. • We rehomed 490 unclaimed animals through our sales and rehoming program. • We delivered our Be Pet Smart education program to 2,943 students featuring a curriculum-based activity book and teacher’s resource guide to help students learn in an interactive way about responsible pet ownership and dog attack/bite prevention. • We conducted 2,048 spray treatments to reduce declared pest plants in the City of Logan. • We held a successful De-Sexpo 2015 with a 14.37 per cent increase in the number of dogs and a 55.95 per cent increase in the number of cats desexed compared to the 2014 campaign.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

• We advocated for the acceptance of Beenleigh and North

• We had three applications (Waller Park BMX, Beenleigh

Maclean into the Campervan and Motorhome Club of

Aquatic Centre and Yarrabilba Sport and Community

Australia's Recreational Vehicle Friendly Towns program.

Hub) successfully approved under the State Government

• We were awarded silver in the prestigious National Trust Queensland Heritage Awards on 20 August 2015 for the Black Diggers of Logan digital stories project. • We launched the #theloganpledge internal and external marketing and engagement activities to unite the city against domestic and family violence, which included the organisation of a street march on 11 October 2015. • We developed an animal keeping pocket guide and

Get Playing Plus Funding Program. • We supported 61 Logan Sports Development Travel Grants, with a total of $21,500 allocated towards assisting Logan residents participating in state, national and international competitions. • We supported 19 organisations through the Logan Sport and Recreation Funding Program. • We assisted 11 Logan clubs under the Get Playing

distributed it as an insert in the November 2015 Our

Spaces and Places funding program, securing

Logan magazine to 106,000 homes across the city.

$1.06 million of State Government funding towards

• We supported Harmony Day celebrations at Beenleigh and Logan Central Libraries, the City Administration

capital improvements of $1.748 million. • We delivered more than 175 parks capital works projects,

Centre and Access Services, and also held a NAIDOC

including upgrades to Plunkett Park and Reserve Park

flag raising ceremony at Logan Art Gallery on 7 July 2015

with the construction of new playground and

attended by more than 200 people.

picnic facilities.

• We received a national award at the Sister Cities Australia

• We implemented a new park bookings and events system.

National Conference in Blacktown on 10 November 2015.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will implement Phase 3 of the City Image Campaign and continue improving perceptions of the City of Logan. • We will continue to develop and deliver the Eats & Beats

• We will enhance community perception of Council's services by raising awareness through social media platforms that promote the business.

and Growers and Producers programs, and our Regional

• We will finalise the draft Active Logan Strategy

Flavours City of Logan precinct will deliver a food tourism

recognising the City of Logan as an active and

destination presence at the Southbank event.

healthy community.

• We will implement a new delivery model for the Week of

• We will continue to deliver education campaigns to

Action initiative aligning it to the new Safe City Strategy

the community on responsible pet ownership and the

and Action Plan which is being implemented.

importance of de-sexing family pets to reduce the

• We will commence delivery of Phase 2 of the Logan: City of Choice initiative. • We will plan for community infrastructure to cater for Logan's growth areas. • We will continue to provide support and funding for community events throughout the city. • We will support the ongoing development and delivery

number of unwanted dogs and cats in the community. • We will continue to provide immunisation services to the community via our school-based and community outreach immunisation programs. • We will develop our Animal Management Strategy 2016–2020. • We will keep the community informed via ongoing

of Skilling Queenslanders for Work and Work for the

community engagement activities and distribution of our

Dole projects.

city magazine, Our Logan.

• We will expand the age range for KRANK from 12 to 17 years old to five to 17 years old.

STRONG FOUNDATIONS for a bright future

Organisational Services stream 2015/2016 summary The Organisational Services stream delivers the services necessary to support Council business units and city services, including property management, finance, legislative requirements, information technology and human resourcing.

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We established a Community Infrastructure Reserve to fund future community

BRANCHES • Administration • Finance • Governance

infrastructure projects. • We made significant progress towards the finalisation of Economic Development Queensland Financial Modelling of Priority Development Areas. • We released Skype for Business to provide our

• Information Services

staff with the ability to communicate using instant

• People and Culture

messaging and video calling.

• Plant Fleet Services

• We conducted our annual business continuity scenario test exercise and offered training to all staff

CORE SERVICES • manage and maintain Council facilities and buildings • purchasing, tendering and contracts • corporate property management, and property acquisition and disposal • corporate risk management and insurance • financial management, including corporate budgeting, estimating and reporting, financial systems, financial accounting and rates administration • internal audit, intergovernmental advocacy, and grants and subsidies administration • records management, legal services and Right to Information and Information Privacy

to ensure Council is prepared and able to manage in the event that there is a significant disruption impacting on our core services. • We implemented a cloud-based solution to host Council's external websites, ensuring that in the unlikely event of a power outage or interruption to data services to Council's City Administration Centre, the Logan City Council website will remain available and live the entire time. • We finalised the review and update of our Organisation-wide Risk Management Framework to provide the necessary tools to assist staff with identifying, assessing and mitigating risks to Council. • We undertook a land audit to identify surplus

• information and communication technology services

Council-owned land and progressed the sale of

• workforce management, including recruitment, training,

properties no longer required.

workplace health and safety and workforce planning • plant and fleet management, purchasing and repairs

• We achieved a reduction in the percentage of rates in arrears compared to the previous financial year. • We continued to expand our Enterprise Reporting

project, providing staff with the ability to access and analyse real-time data from Council's core systems. • We upgraded our internet security systems at all library sites to ensure that library staff and visitors continue to receive secure internet access. • We hosted a successful City of Logan Youth Careers Expo at the Logan Entertainment Centre, with approximately 70 exhibitors and 2,000 students in attendance.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

• We implemented an online, self-service human resources system to streamline the staff leave application and approval process. • We introduced an online self-service booking system to provide a more efficient process for scheduling fleet vehicle services. • We delivered our plant and fleet replacement program on time and on budget, ensuring quality plant and fleet vehicles were available to assist Council staff in delivering key services to our community such as the maintenance of local roads. • We held two supplier information sessions, providing information to prospective suppliers on how to quote and tender for Council goods and services. We attended and presented at industry forums “Tendering for Government Business Workshops”. • We awarded 15 2015/2016 Logan City Tertiary Educational Bursaries to local students.

• We commenced the implementation of VendorPanel “MarketPlace”, an on-line quotation system, across the organisation. This new procurement software will give local suppliers an event greater opportunity to quote for Council business. • We made more than 130 datasets available through open data, giving our community and local businesses access to public council information. • We released a number of mobile field enabled applications to improve the efficiency of providing council services. • We continued to support the organisation in improving its organisational culture. • We developed and commenced implementation of a Safety Culture Action Plan to improve our safety culture over the years ahead. • We continued to reduce our Lost Time Injury Frequency Rate due to a stronger focus on health and safety across the organisation.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will host the 2016 City of Logan Youth Careers

• We will continue to assess opportunities to deliver

Expo to connect local youth with local businesses

flexible and resilient information services utilising

and foster job opportunities in the city.

cloud technology.

• We will review and update our 10 Year Asset

• We will develop an action plan to harness the

Management Replacement Plan for all plant and

opportunity that location-based information can

fleet vehicles.

provide to both the public and Council through

• We will undertake a contract review for our insurance brokering services and renew our annual insurance policies. • We will develop and implement a Cultural Heritage and Native Title Management Directive and a Telecommunication Facilities Strategy. • We will undertake our annual review of our business continuity plans, conduct a scenario test exercise and offer business continuity training to all staff. • We will co-ordinate the use of telematics to support improved business efficiencies across our operational areas of Council. • We will continue to transition into proactive preventative maintenance. • We will continue to manage our external plant hire contracts to ensure value for money service delivery. • We will facilitate obtaining sponsorship and award of up to 15 2016/2017 Logan City Tertiary Educational Bursaries to local students.

increasing efficiency and decision making capabilities. • We will finalise the development of our next People Plan for 2016–20 and commence implementation. • We will provide an enhanced level of support to the organisation as it continues to undergo change. • We will enhance our focus on ensuring that our organisation, at all levels, reflects the community we serve. • We will negotiate and implement a new certified agreement built on the new Local Government Modern Award. • We will develop a five-year strategic workforce plan to ensure we have the workforce to meet our future needs. • We will continue to build a resilient and agile workforce that is able to respond to changing priorities, community needs, and able to operate under different service delivery models. • We will continue to implement our Safety Culture Action Plan to embed an improved safety culture at all levels across our workforce.

STRONG FOUNDATIONS for a bright future

Strategy and Sustainability stream 2015/2016 summary The Strategy and Sustainability stream delivers development assessment, planning policy, economic development, application of local laws, environment and waste services. These are key focus areas for the City of Logan, currently Australia's fifth largest local government area by population and expected to be home to more than 450,000 people by 2031.

BRANCHES • City Standards • Development Assessment • Economic Development and Strategy • Environment and Sustainability • Waste Services

CORE SERVICES

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN (these are not linked to a specific priority focus) PROJECTS On track/completed: • Undertake feasibility studies on potential future waste disposal sites for Browns Plains landfill Target: June 2016 • Commence construction of the new entry road to the Browns Plains Landfill from Bayliss Rd to provide improved facility access for our customers Target: June 2016 • Finalise the review and update of nuisance local laws Target: June 2016 Undeliverable:

• building, land use and environmental compliance

• Nil

• licensing related to local laws

Not proceeding:

• approved building and development

• Nil

information services • local law services including parking regulation • strategic land acquisition and development, as well as strategic land use planning, including planning schemes and infrastructure charges • development assessment services, including building and plumbing, development application approvals and town planning advice • economic development, including business support,

KPIs Meeting/exceeding target: • Nil Monitor: • Nil Below target: • Nil

investment attraction and city promotion • environmental health planning and licensing

(Scorecard definitions can be found on page 8).

• environmental planning and management, including vegetation, waterways, energy and climate change • waste and recycling planning and management

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We delivered 268 one-on-one business advice/mentoring sessions and nine workshops to small businesses through the Economic Development and Strategy branch. • We entered into an agreement with Australia's Biotechnology Organisation Aus-biotech as a national sponsor. • We generated 111 new business leads during the

• We developed and released Safe Community Parking Guidelines in May 2016. • We won the 2016 Queensland Award for Excellence in Asset Management from Stormwater Queensland for our Waterbody Asset Management Framework. • We were challenged by long dry periods between January

year covering a range of industries including medical,

and May, which resulted in algal bloom outbreaks and higher

manufacturing, tourism, engineering, agri-business, and

than usual bacterial contamination in some waterbodies.

transport and logistics. • We attracted $144.03 million of investment across retail,

• We developed criteria for the acquisition of land for conservation purposes and environmental offsets.

manufacturing, transport and logistics, education and

• We developed an energy data management and reporting

training, and the food and beverage industries through

system known as the Energy Management Dashboard

promotion of the city. This figure also includes Council

and will continue to refine this in 2016/2017.

and sales that will lead to additional investments in the City of Logan in the future. • We hosted 14 international delegations from countries including, China, Vanuatu, Japan, Bangladesh and the Cook Islands. • We adopted the Local Connections Strategy 2016–21, outlining how Council will engage with local businesses and provide services to the small business community. • We supported the creation or retention of a total of 568 jobs in the following industries: health and medical, manufacturing, warehousing and distribution, food and beverage, transport, and education and training. • We successfully negotiated the sale of SouthWest 2, with the process from tender through to settlement lasting eight months and resulting in the sale of the additional site at 368 Wembley Road. • We successfully sold and settled three lots of SouthWest 1 and will continue to market the remaining lots through Savills in 2016/2017. • We commenced the community engagement phase of the Logan River Vision project. • We delivered the second stage of the Healthy Land Healthy River project, which included several land management workshops, information and training at the Jimboomba Field Day, and development of a draft website. • We delivered stage 1 water body rehabilitation works at Riverdale Park as part of the Waterbody Asset Management Framework. • We completed the second stormwater treatment system

• We adopted the Loganholme Local Plan Amendment. • We prepared the draft Local Government Infrastructure Plan, which was adopted by Council and submitted to the State Government for approval. • We identified opportunities for expansion of the Urban Footprint and Rural Living Areas in the South-East Queensland Regional Plan. • We developed online tools to assist the development industry and community to make informed development decisions in the City of Logan. • Council committed to delivering Planning Reform initiatives to make the necessary business changes and align our systems to the new Planning Act. • We continued to roll out RiskSmart which has been a success with our customers, showing an increase in the total number of RiskSmart Accredited Consultants from 27 in 2014/2015 to 60 in 2015/2016. • We successfully managed 1,607 development applications and 4,255 plumbing applications, which increased from 1,318 development applications and 3,651 plumbing applications in the previous financial year. • We launched an online infrastructure charges calculator, which is the first of its kind in South-East Queensland and allows customers to calculate the approximate cost for infrastructure charges on their development applications. • We reformed a number of local laws to align to changes in State legislation and community expectations, including a new 'smoke free places' local law, amendments to the election signs local law provisions and amendments to

construction near Allgas St and the Garoona Park

off-street regulated parking areas to facilitate additional

waterbody rehabilitation as part of the Slacks Creek

shopping centres to enforce disability parking.

Catchment Recovery project. • We organised several community engagement events as

• Council reviewed its Global Connections Strategy, which has delivered nearly $153 million investment and

part of the River Recovery project, including Paddle the

520 jobs since adoption in 2012. A new strategy has

Albert and Clean Up Australia Day.

been endorsed for 2016–21.

STRONG FOUNDATIONS for a bright future

Sunset over the Logan River.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will run a program of high-quality business workshops in partnership with key industry organisations and stakeholders. • We will deliver an Industry Development and Investment Attraction Strategy together with an overarching Economic Development Strategy in the first quarter of 2016/2017. • We have planned trade missions to South East Asia,

• We will deliver Stage 2 of the Riverdale Park Waterbody Rehabilitation project. • We will complete the Logan and Albert River Catchment Action Plan as part of the South-East Queensland Resilient Rivers Initiative. • We are developing 3D computer visualisations for Springwood, Logan Central, Meadowbrook and

North America and India to ensure the City of Logan

Beenleigh to make it easier for our customers and

is a regionally and globally connected city with strong

community members to participate in planning for the

international economic and cultural relationships. This includes supporting existing business grow internationally, attracting new business into the City of Logan and enhancing local employment opportunities. • We will hold a Logan Job Expo to provide an opportunity to connect local jobseekers of all ages with local employers. • We will deliver a Tourism Investment Attraction Strategy in the first quarter of 2016/2017. • We will undertake a feasibility study for the establishment of water parks in the City of Logan. • We have planned a mission to New Zealand to explore opportunities to increase tourism in the City of Logan. • We will complete the Logan River Vision and Implementation Plan, giving consideration to community feedback on the draft vision. • We will complete and release the Localised Waterway Assessment Report. • We will deliver Stage 2 of the Slacks Creek Catchment Recovery project including construction of a fishway at Paradise Rd.

future of our city. • We will investigate the potential for large scale solar cell systems on Council-owned land and buildings. • We will undertake energy audits of Council's large facilities to identify potential energy reduction opportunities. • The State Government has put in place a new Planning Act, which is scheduled to commence on 3 July 2017. We will need to change our business systems and processes to reflect the new requirements, including updates to the Logan Planning Scheme 2015. • We will have direct connection with developers investing in the city and identify challenges that may be preventing investment through the inaugural meeting of the Logan Development Advisory Group scheduled for August 2016. • We will continue to reform our local laws inline with State Government legislation including the commencement of the Tobacco and Other Smoking Products (Smoke Free Places) Amendment Act 2016. • We will implement automated number plate recognition technology for parking regulation to improve public and traffic safety.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Priority Area: Building our major infrastructure (MI) PRIORITY FOCUS MI1: Increase emphasis and funding for maintenance and upgrade of local road networks MI2: Achieve high-level delivery of annual capital works program MI3: Consider and adopt a plan for the harmonisation of water rates, including assessment of trickle feed consumers

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS On track/completed: • Identify and prioritise a statement of works for the Pavement Rehabilitation Program Target: 2015/2016 year statement of intent by July 2015 2016/2017 year and beyond by December 2015

KPIs Meeting/exceeding target: • Deliver the annual roads and drainage maintenance program Target: 90 per cent of scheduled program delivered • Deliver the annual pavement rehabilitation program Target: 90 per cent of scheduled program delivered • Deliver Council’s annual capital works programs Target: 90 per cent of scheduled program delivered • Deliver the annual road infrastructure capital works program Target: 90 per cent of scheduled program delivered • Deliver the annual parks capital works program Target: 90 per cent of scheduled program delivered • Deliver the annual waste capital works program Target: 90 per cent of scheduled program delivered • Deliver the annual water infrastructure capital works program. Target: 90 per cent of scheduled program delivered Monitor: • Nil

Undeliverable:

Below target:

• Nil

• Deliver the annual sport, leisure and facilities capital works program on budget* Target: +/-5 per cent of adopted budget

Not proceeding: • Nil

* The expected construction work at Logan Metro Sports Park has been delayed due to required re-design to suit the lessees. Unusually high June rainfall also impacted on construction of the new entrance road into Browns Plains Landfill. As a result, expenditure for the financial year was lower than the budget.

(Scorecard definitions can be found on page 8).

STRONG FOUNDATIONS for a bright future

HIGHLIGHTS IN FOCUS: Council invests in Chambers Flat Rd The largest road project in Logan City Council’s history — the duplication of 2.7 km of Chambers Flat Rd from Park Ridge to Crestmead — is almost completed. The $18 million upgrade is delivering two lanes in each direction from Park Ridge Rd to Entrance St, two new signalised intersections and street lighting. A central median strip with street lighting is also being installed and drainage improvement works carried out. Increased capacity on Chambers Flat Rd will support future growth in the Park Ridge Major Development Area, enhance road safety for motorists and improve the operation of major intersections.

This investment in civil infrastructure will support the needs of current and future residents and businesses. Major developments underway through the Park Ridge Structure Plan in the new Logan Planning Scheme are expected to bring about 30,000 people to the area in coming years. Work is occurring in stages until late 2016, with the upgrade being delivered in stages by appointed contractor BMD Urban. The first stage of works runs from the southern end of the works zone to Bumstead Rd.

An aerial view of 2.7km of road duplication works at Chambers Flat Rd.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Darcy Edmunds Bridge open to traffic Traffic is now flowing across Darcy Edmunds Bridge following its official opening to traffic in June 2016. The bridge replacement project, which took six months to complete. The project also involved the installation of a new left-turn lane on the northern end for traffic travelling from the south and turning left into Cusack Lane. The bridge was replaced to support the ongoing economic development of Jimboomba and surrounding suburbs and ease some of the congestion experienced in the area during peak times. The $1.4 million project was jointly funded from Council’s 2015/2016 capital roadworks and drainage program and the Australian Government’s Bridges Renewal Program.

River Hills Rd upgraded in $1.2 million project Two sections of River Hills Rd at Eagleby have been reconstructed as we continue to improve the local road network. The $1.2 million project involved rebuilding almost half a kilometre of the road, digging as deep as 60cm in some parts to ensure the road was maintained to the community's expectations. Associated drainage works and rebuilding of some sections of kerb and channel was also required.

Teviot Rd works We have invested $10.8 million over two years for the full upgrade of Teviot Rd. The funding across the 2015/2016 and 2016/2017 financial years is allowing Teviot Rd at South Maclean to be upgraded over 2.7 km between Flagstone Creek Bridge and Mountain Ridge Rd (Stage 1) and then from Mountain Ridge Rd to Wharburton Bridge (Stage 2). Stage 1 was completed during 2015/2016 and Stage 2 is expected to be completed in late 2016. The works are being jointly funded by the Federal Government’s Road to Recovery Program and Council.

Darcy Edmunds Bridge Replacement Project: Before and after images.

STRONG FOUNDATIONS for a bright future

Forestglen Cres Catchment master drainage project

$2.1 million improvements carried out Muchow Rd

The effects of local flooding issues for a number of Browns Plains properties have been reduced through upgraded stormwater infrastructure provided to increase stormwater immunity through a master drainage project. The Forestglen Cres Catchment master drainage project has involved the installation of new stormwater infrastructure, gully pits and manholes in local streets and Forestglen Park, as well as road resurfacing works, minor kerb and channel replacement, and line marking. Stages 3 and 4 of the project were completed at a cost of $8 million funded by Logan City Council’s 2015/2016 Capital Roadworks and Drainage Program.

Extensive works to improve the condition of Muchow Rd at Waterford West have been completed. The project will ensure the road will be maintained in a good condition as the city's population grows. The works involved upgrading the existing road surface between Moffatt Rd and Kingston Rd, as well as through the roundabouts at Logan Reserve Rd and McGrath St. Works were carried out in four stages, starting at Moffatt Rd and continuing east towards Kingston Rd. The $2.1 million project was funded from Council’s 2015/2016 capital roadworks and drainage program.

Underwood drainage project wrapped up Work to improve the capacity of drainage systems in Underwood’s Darnick and Smallwood streets has been finalised. New stormwater pipes and drainage structures were installed to help reduce local flooding. The $1.1 million project also involved the construction of maintenance holes, road resurfacing, kerb and channel replacement and line marking.

New footpath makes Pub Lane safer for pedestrians Pedestrian safety at Greenbank has been boosted with the installation of a new footpath near the interstate rail line along Pub Lane. The $700,000 project was delivered by the developers behind Teviot Downs Estate who received an offset against future infrastructure charges as a result. Teviot Downs Estate and other landowners also dedicated land to accommodate the required road width. The new footpath extends along the northern side of Pub Lane from the estate sales office to the Greenbank Shopping Centre.

Bethania-Tanah Merah wastewater upgrade competed The installation of 2 km of new wastewater (sewerage) pipeline between Bethania and Tanah Merah has been completed. Work began in October 2014 to connect a new 500mm pipe from the Church Rd pump station in Bethania to Tansey Park in Tanah Merah. The Church Rd pump station was also upgraded and a new pipe transversed the Queensland Rail Corridor and the Logan River. The works have enhanced the local wastewater network’s capacity and will support future growth. Logan’s eastern catchment is forecast to grow by more than 55 per cent. It has also freed up some much needed capacity within the nearby Beenleigh network as flows are now being diverted to the Loganholme Wastewater Treatment Plant.

Underwood upgrades to prepare for growth Future growth in Underwood has been supported with an extensive upgrade of drainage and wastewater infrastructure in the suburb. A new $1.4 million wastewater pipeline has been laid beneath Logan Rd from Rolfe Circuit to Louise St. Work has also taken place on the $3.2 million Underwood Catchment master drainage project, with upgrades now completed in Charlane St, Tintagel St, Camelot St, Nicholas Court, Dorinda Crescent and Bambara St, Louise St, Barton St and Akers Park. These projects are critical to servicing new or expanded developments in Underwood and will ensure residents and businesses have access to clean and safe water, as well as reducing the potential and effects of local flooding.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Priority area: Building our city's image (CI) PRIORITY FOCUS

HIGHLIGHTS

CI1: Adopt and implement a three-year city image campaign

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS On track/completed: • Nil Undeliverable: • Implement the City Image Strategy through the delivery of the City Pride Program, City Image Campaign and City promotional products* Target: 2015/2016 actions implemented by June 2016 Not proceeding: • Nil * Eighteen of the 19 scheduled milestones for the financial year were met. The one milestone that was not delivered was the development of the City App.

KPIs Meeting/exceeding target: • Proactively pitch positive media stories to improve Logan’s image and reputation Target: eight proactive media stories pitched per month • Timeliness in the removal of graffiti to maintain the City’s visual appearance Target: 90 per cent of graffiti removal requests actioned within two business days Monitor: • Nil Below target: • Nil

(Scorecard definitions can be found on page 8).

STRONG FOUNDATIONS for a bright future

IN FOCUS: Poh serves up a fresh take on City of Logan producers Celebrity chef Poh Ling Yeow has been busy showcasing the best produce the City of Logan has to offer as the region's official food ambassador during 2015 and 2016. She has been delighted to discover some of the country’s freshest and tastiest produce in Logan. The host of SBS cooking show Poh and Co sourced ingredients from a range of local producers to use in cooking demonstrations at Logan City Council's stand at the 2015 Brisbane Good Food and Wine Show, the Global Food Village and other venues. Poh has also been sharing some of her favourite recipes through the Our Logan magazine in 2016. A popular figure and tastemaker on Australia's culinary scene, Poh has enjoyed discovering new delicacies in the city and sharing them with the nation's food lovers. The City of Logan produces a wide array of fresh produce including radishes, parsley, leafy greens, chillies, cucumbers, strawberries and mushrooms. Many of the city’s local producers are big names on the national food scene, supplying supermarket chains and large food companies. The City of Logan has the right ingredients to become a destination for food tourism. Having Poh on board has helped showcase the city’s growers and its strong heritage in farming and agricultural production.

Art brought to life through Animating Spaces A basic Logan toilet block has been converted into a stunning piece of artwork by a group of imaginative local artists. The mosaic, created as part of Animating Spaces Logan: Arts in the park project, aims to bring life and art to areas where there typically is none. The project culminated in a day full of art, music, food and family fun at the Logan River Parklands. Logan residents and visitors were encouraged to bring along their picnic blankets and eskies and join in the art activities while enjoying the live music and food trucks around the park. The giant billboard next to the parklands, seen by thousands of people a day who drive on the M1, has featured a new and exciting design as part of the project. Designed after public consultation, the project focused on the local environment, fauna and the Logan River. Animating Spaces Logan was part of the larger Animating Spaces program run through Artslink Queensland, which was also held in Townsville, Mackay, Ipswich and Ravenswood.

Eats & Beats — now one of Queensland’s largest food truck festivals Eats & Beats is now one of Queensland’s largest food truck festivals, attracting up to 10,000 people from throughout the South-East. The free monthly event has become a fun Friday night ritual for many families from the City of Logan and beyond. In 2016/2017, we will continue to offer a revolving cast of some of South-East Queensland’s best food trucks along with a great line-up of local musicians and entertainers.

Council stand at EKKA highlights Logan produce Logan’s vast array of fresh food growers are showcased each year at the EKKA by Logan City Council. A range of delicious produce from herbs and gourmet products to fresh vegetables and fruit, such as strawberries, mushrooms, cucumbers, are all grown in Logan, and the city has a reputation as an emerging food tourism destination. We also took part in the 2015 Good Food and Wine Show highlighting the city’s culinary credentials. Show bags full of unique and delicious local produce were available for purchase at both events and proved popular with attendees.

Mural tribute to Logan veterans A striking mural has been painted on the Logan Hyperdome Library to acknowledge Logan veterans who have served in Afghanistan. Painted by local artist Jay Christensen, the mural facing Mandew St features red-tailed black cockatoos and a motif of a partially broken wing based on a work in the Australian War Memorial in Canberra. The mural pays tribute to returned veterans living in the community who may not seek publicity or recognition for their service. It also honours the men and women and their families who have devoted their lives to supporting Australian armed forces in Afghanistan and other international conflicts.

Celebrity chef, Poh Ling Yeow has been showcasing City of Logan producers as the region’s official food ambassador.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Priority area: Building our economic base (EB) PRIORITY FOCUS

KPIs

EB1: Support existing businesses

Meeting/exceeding target: • Provide one-on-one mentoring/business advice sessions to support small to medium-sized local businesses Target: 200 sessions annually

EB2: Attract new businesses EB3: Enhance local employment opportunities and local jobs containment EB4: Enhance the focus on tourism, including eco-tourism opportunities

• Regular circulation of e-newsletter to the local business community to inform them of emerging industry trends, training and education opportunities Target: 10 e-newsletters circulated annually

EB5: Proactively market SouthWest 1 and SouthWest 2 developments

• Complete an audit of business facilities and services available within the City of Logan Target: March 2016 • Represent Council at relevant networks/associations, including corporate membership of three Chambers of Commerce Target: Attend 35 network/association meetings annually

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN

• Attend industry trade shows and events to promote Logan City and attract new businesses Target: Attend six events annually

PROJECTS

• Generate business or investment leads for Logan City Target: Generate 75 business/investment leads annually

On track/completed: • Develop and implement a plan to increase Council’s use of local suppliers to support local industry Target: June 2016

• Generate investment ($) through promotion of Logan City as a business location of choice at meetings, tradeshows and events Target: $70 million investment annually

• Develop an Investment Attraction Strategy focussed on tourism and new major development fronts Target: March 2016

• Host international delegations to promote Logan’s existing business and investment opportunities Target: 10 international delegations hosted annually

• Host the 2015 City of Logan Youth Careers Expo Target: July 2015

• Increase local employment through promotion of the City of Logan as an ideal business location Target: 500 new or retained jobs annually

• Complete Phase 1 of the new Economic Development Strategy Target: March 2016

Monitor:

• Develop and implement an Engagement Plan for Logan’s top and emerging companies Target: March 2016

• Partner with national industry bodies (e.g. sponsorships) to leverage decision makers, help build capacity and attract investment Target: Partner with four industry bodies annually

• Implement Logan’s Tourism Strategy, including improvements to the City’s online and offline products and building relationships with key partners Target: 2015/2016 actions implemented by June 2016

Below target: • Percentage of Council expenditure spent on the use of local suppliers+ Target: Increase from 25 per cent to 30 per cent

• Implement the Loganholme Tourism Precinct Master Plan Target: June 2016 • Develop a Strategy for the Village at SouthWest 1 Target: October 2015 Undeliverable: • Finalise the sale of all remaining SouthWest 1 industrial lots* Target: June 2016 Not proceeding: • Nil * Three industrial lots were sold in 2015/2016; however, there is one lot remaining. This is being marketed by Savills.

STRONG FOUNDATIONS for a bright future

26.82 per cent of Council supplier expenditure was spent on the use of local suppliers. Whilst this is an improvement on last year’s figures, it fell short of the financial year target.

(Scorecard definitions can be found on page 8).

HIGHLIGHTS IN FOCUS: Sigma’s move just the tonic for Logan business Pharmacy wholesaler Sigma Pharmaceuticals is preparing to construct a new environmentally efficient distribution centre at the SouthWest 1 business park. The new facility is expected to employ 50 people during construction. Sustainable design will feature prominently in the company’s new premises.

solar system will generate 20 per cent of its annual power usage and save up to 340 tonnes of greenhouse gas emissions per year. Founded in 1912, Sigma is Australia’s leading pharmacy wholesale and distribution business with a network in Australia of over 1,200 branded and independent stores.

A stormwater collection of up to 40,000 litres will reduce water consumption while a 250 kW rooftop

(from left) FKG Group Managing Director Nick Gardner, CEO Sigma Pharmaceuticals Mark Hooper and Mayor of the City of Logan Cr Luke Smith at the official sod turning to mark the beginning of construction of Sigma Pharmaceuticals $65 million distribution centre in Berrinba, Logan City.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

APT shift to Logan

Making the right connections in Logan

The City of Logan’s reputation as South-East Queensland’s freight and logistics hub has been bolstered with the arrival of All Purpose Transport (APT) at Berrinba. The privately-owned Queensland road freight and warehousing company has constructed a new office and warehouses for its 280 staff and owner-drivers.

The Logan Office of Economic Development (LOED) has been working to open up new markets and opportunities for local businesses.

APT’s decision to consolidate its multiple sites in Brisbane into one purpose-built facility in Berrinba demonstrates the opportunities in Logan for businesses planning for growth. The need to construct the kind of facility that could accommodate their growth requirements for the next decade was behind their decision to move to the City of Logan. As a provider of freight and transport services, APT needs to be close to the main inter/intrastate transport routes and their Berrinba site meets that specification. The move to Berrinba has been a homecoming for the company in more ways than one. APT first started operations in 1975 as a small business run out of the spare bedroom of the family home in Daisy Hill, not far from the new Berrinba headquarters. Construction work at the Gilmore Rd headquarters took place over three stages with work on Stage 1 — 1000m2 of office space and 7500m2 of warehousing space — officially opened in February 2016.

In early 2015 LOED undertook a survey of Logan businesses to get a clearer picture of the types of companies operating within the city. Focused on manufacturing, supply chain and professional services associated with manufacturing, the survey looked at the capabilities and capacity of those businesses. Identifying opportunities to increase the performance of local businesses through collaboration and resource sharing, and to identify business development opportunities for Logan businesses is the aim of LOED. Some of the key findings included: • More than 75 per cent of Logan’s businesses have been operating for five or more years. • Nearly 70 per cent of the current and intended export markets are in Asia Pacific and Asian countries. • 67 per cent of respondents are planning to expand operations in the City of Logan across areas such as facilities and employment. • 43 per cent of respondents were registered with the Capability Network. The increased understanding of Logan’s business community also allowed the LOED to strategically review and implement programs specific to the needs of Logan businesses, as well as enhancing the business case for companies looking to invest or reinvest in the City of Logan.

Artist’s impression of the new tower development near Beenleigh Town Square.

STRONG FOUNDATIONS for a bright future

Logan’s fresh food and produce has world-wide appeal As Logan City Council’s campaign to promote the city as a centre for fresh food and produce gathers momentum, one local food processor has been producing millions of healthy prepared meals to be consumed all over the world on domestic and international flights, and in the healthcare industry, producing 18 million meals a year. With capacity to ramp up to 30 million meals. Snap Fresh is a major processor of fresh food from which it creates more than 2,000 different types of fully prepared meals, snap frozen as either individual or catering portions. A delegation from Logan City Council visited the Snap Fresh plant in Crestmead in early 2016 to talk to management about the opportunity to collaborate more closely with local growers and producers. Logan is fast becoming known for its diverse food and quality produce, and Snap Fresh is helping build the city’s reputation as a world class producer of quality fresh food. Prepared in batches of no less than 5,000 meals at a time, Snap Fresh, wholly owned by the Qantas Group, is one of the major processors of fresh produce in South-East Queensland.

Workshops organised for Small Business Week in Logan Small businesses and would-be owners had the opportunity to learn from some of Queensland’s most successful operators at a networking function held in Logan in May 2016. The Get Fit For Change Breakfast, at the Logan Entertainment Centre, was one of several organised for Small Business Week. Small businesses — those with fewer than 20 employees — account for 97 per cent of all businesses in Australia and are often the engine room of innovation. Yet figures from the Australian Bureau of Statistics show that two-thirds close within the first three years of starting, usually because they need more planning, capital and training. Small Business Week also saw the return of the Queensland Migrant Small Business Expo at the Logan Entertainment Centre. Presented by Access Community Services, the expo provided information to help current and future migrant business owners navigate the requirements and obligations of running a small business in Australia.

Beenleigh Town Square inspires towering investment

MyWork comes to work Start-up companies have taken advantage of the City of Logan’s commuter-friendly location between Brisbane and the Gold Coast. MyWork began as a home business building website for tradies before moving to commercial premises in Springwood. Founder Matt Holme came up with the idea of creating websites for tradies when having his house landscaped. Responding to the burgeoning market of small businesses that needed a web presence but didn’t have the time or money to build and maintain an expensive website, MyWork offers a cost-effective alternative. The business took an additional lease at its Springwood location to accommodate its growing workforce which increased from eight to 20 staff in two years. In June 2015, MyWork celebrated building its 5,000th website.

Expo excites Logan youth about career opportunities Positive life choices and real support for Logan's next generation were provided at the 2015 Youth Careers Expo. More than 2,000 students from 20 schools took a step towards achieving their career goals and explored options for a successful future by attending the annual expo at the Logan Metro Indoor Sports Centre. The enthusiastic students enjoyed more than 50 displays and a range of inspiring guest speakers and presentations. The popular expo allows youth aged from 15 to 24 years of age to make comparisons between careers, further study options and potential employers with the aim of finding something that appeals to them. It also opens the door to new opportunities and is well supported by schools, sponsors and exhibitors.

Jobs to flow from SouthWest 2 sale Council’s long-term strategy to drive jobs growth in Logan received a vote of confidence from the private sector with the GPT Group purchasing the 21 hectare SouthWest 2 site at Berrinba from council for $23.2 million. Future development of the land has the potential to create 10,000 new jobs in the City of Logan and will complement the master-planned urban village and business park at the nearby SouthWest 1. The industrial site has been a strong addition to the group’s $440 million logistics development pipeline and has helped replenish the development land bank. The GPT Group holds interest in a number of industrial properties across Australia including the nearby Toll Transport facility on Forest Way, Berrinba.

A $300 million proposal for an integrated living and aged care village, comprising three 12 to 15-storey towers and two four-storey buildings, has been approved by Logan City Council for Beenleigh. The development will become a landmark due to its size and scale. The multiple tower development will be more than twice the height of anything else in the area and the precinct will add to the residential and commercial centre with the vacant block of land close to the new Beenleigh Town Square.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

New business investment attracted to Logan ($m) 446.9

2011/2012

2012/2013

154.79

144.03

2014/2015

2015/2016

59.7

2013/2014

The figures for 2011/2012 are based on announcements and projections, including the $300 million Jeta Gardens expansion, which will develop over a number of years. This year's data includes a $60 million investment by Sigma Pharmaceuticals, which commenced construction of their new facility at Berrinba and the new Woolworths shopping centre at Loganholme. Other investments included the purchase of a headquarters building, distribution centres and upgrade of the Beenleigh Rum Distillery.

Growing a strong economy

2011/2012

2012/2013

191

2013/2014

270

2014/2015

519 111

2015/2016

It is difficult to compare a five-year trend for new business leads generated due to a change in methodology. The numbers for investment and new jobs is also difficult to trend because of the nature of business and investments. Some companies may not make a decision for several years, while others may work with us to be established within six to 12 months.

STRONG FOUNDATIONS for a bright future

Hand brakes on at new RV locations Travellers on the self-contained recreational vehicle circuit have given the big tick of approval to new dedicated facilities in Logan, filling them to capacity over many weekends and holiday periods since their establishment in late 2015. Located at Hugh Muntz Gardens in Beenleigh and Tully Memorial Park in North Maclean, the stops are ideally located for travellers looking for an overnight rest stop. Council worked hard, in partnership with the Campervan and Motorhome Club of Australia, to find the right locations with a mix of existing facilities and locations which capture passing recreational vehicle traffic.

Project grows employment prospects The future prospects of eight young men are looking as good as the gardens theyâ&#x20AC;&#x2122;ve been revitalising in Logan as part of the Skilling Queenslanders for Work program. The men graduated in early 2016 with a Certificate Traineeship in Conservation and Landcare Management following 16 weeks completing more than 20 landscaping projects for Logan City Council. The eight local men, who are now employed or seeking employment, teamed with council, YourTown and the Queensland Government for the project. Skilling Queenslanders for Work is a Queensland Government program helping people get back into the workforce through targeted skills and training programs.

New alliance creates opportunities for local businesses (plus 49 retained)

(plus 421 retained)

(plus 106 retained) 662

New jobs created

(plus 118 retained)

New business leads generated 1,420

(plus 320 retained)

Logan and South-East Queensland businesses are set to secure more than $100 million in goods and services contracts over the next three years from our new Logan Water Infrastructure Alliance, launched in July 2015. The alliance will partner with local businesses to deliver new infrastructure and asset renewal projects, as well as some day-to-day services needed to run the organisation. The alliance will procure catering, signage, safety gear, pipes and fittings, construction services and landscaping to name just a few. This alliance follows six years of the Logan Water Alliance where the same partners (Council, Downer, Cardno and Parsons Brinckerhoff) awarded 95 per cent of all construction contracts to South-East Queensland companies. The alliance partners have a strong track record of providing opportunities for local businesses and continued this trend in 2015/2016 with 95 per cent of delivery contracts awarded to South-East Queensland businesses.

Priority area: Building our environment (E) PRIORITY FOCUS E1: Enhance our rivers and wetlands with our community E2: Build our future wildlife corridors through vegetation, koala and water quality offsets and focused community partnerships E3: Reduce our energy costs and carbon footprint through innovation and new technology

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS

* An Energy Management Framework has been developed and a Draft Energy Monitoring Dashboard developed. Historical data has been uploaded into the dashboard and an operations manual written. Some aspects of the dashboard required customisation work which was unable to be finalised by 30 June 2016. It is anticipated that this project will be finalised in the first half of 2016/2017.

KPIs Meeting/exceeding target: • Participant satisfaction with environmental events and workshops Target: 90 per cent Monitor: • Nil Below target: • Nil

On track/completed: • Implement 2015/2016 actions form the Logan Rivers and Wetlands Recovery Plan 2014–2024: –– Develop a draft Logan River Corridor Vision for community engagement to inform the future final Logan River Corridor Vision and Implementation Plan to create environmental, social and economic benefits for the City Target: June 2016

(Scorecard definitions can be found on page 8).

• Implement 2015/2016 actions from the Logan Rivers and Wetlands Recovery Plan 2014–2024: –– Develop and implement Phase 2 of the Rural Landholder Engagement Project Target: June 2016 • Implement 2015/2016 actions from the Slacks Creek Restoration Project Target: June 2016 • Review Council’s Environmental Land Acquisition Policy Target: March 2016 • Deliver Logan’s environmental offset and revegetation projects, including planting in parks and along Logan’s rivers Target: June 2016 • Implement the Logan Koala Conservation Plan, including koala observation surveys, community education and conservation actions Target: June 2016 • Prepare a business case for cost and energy efficiencies in the management of public lighting assets Target: June 2016 Undeliverable: • Develop an Energy Management Framework and Tools* Target: June 2016 Not proceeding: • Nil

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

HIGHLIGHTS IN FOCUS: Logan alive with koalas A second koala scat survey has confirmed the presence of koalas across wide — and sometimes unexpected — parts of the City of Logan. The 2015 survey focused on private land, which owners volunteered for survey. The results appear to confirm anecdotal evidence and community reports of widespread koala distribution in the city. In 2015, Council recruited a number of private landholders with large sections of bush who volunteered their property for survey. The presence of koalas was detected in wide ranges of the city’s west — from Greenbank through to Undullah and Lyons — demonstrating that koalas range right across the length and breadth of the city. Logan residents are urged to be extra vigilant driving at dusk and night as the warmer months mean breeding season for koalas.

Koala survey sightings 30

21 18

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

In 2015, the Logan koala count was run in conjunction with the National Koala Count.

Daisy Hill Koala Centre is located within Daisy Hill Conservation Park and was built by the Queensland Government as a dedicated koala education facility.

STRONG FOUNDATIONS for a bright future

Council greens Slacks Creek Logan City Council planted up to 50,000 native plants across a number of project sites in the Slacks Creek area over two years under the Slacks Creek Catchment Recovery Project. Two of the main project sites are Riverdale Park and Griffith University. This project aims to recover lost spaces or places where people once swam or fished. The project is affiliated with several major regional projects aimed at restoring the health of the creek and its tributaries. Weeds and rubbish are being removed and native vegetation planted to produce habitat for wildlife such as koalas, sugar gliders and a variety of birds. The catchment restoration works carried out today will have far ranging effects by improving the health of Slacks Creek, which flows into the Logan River and then into Moreton Bay. Riparian rehabilitation works already carried out have naturalised a drain in Timothy Park and rehabilitated degraded sections of the Slacks Creek between Reserve Park and Timothy Park. Approximately 1.4 km or 2 ha of creek bank rehabilitation works has improved park amenity, bank stability, riparian habitat and water quality.

Children give plastic bottles a new leaf on life Sustainability will be a way of life for future generations and the children at Groves Christian College Early Learning Centre in Kingston are already leading a hand to help the environment. As part of a recycling and gardening project, the children collected 1,500 plastic bottles and transformed them into a garden hot house for growing vegetables. Timber for the project was sourced from the Logan Recycling Market, providing a fun way for the children to learn about reusing everyday items.

Environmental upgrade for Meadowbrook’s Riverdale Park A major project to rehabilitate and enhance part of a waterbody in one of Logan City’s most picturesque parks is helping ensure the quality of habitat for the area’s native wildlife. The first stage of planned major works in Meadowbrook’s Riverdale Park has been completed. Council carried out stage one of a bank stabilisation and rehabilitation project on the northern bank of the waterbody opposite the main playground near the dog off-leash area. The eroded edges of the north bank were stabilised, and planting and revegetation of the banks will enhance the local habitat for the turtles and fish and improve water quality. Riverdale Park has Australia’s first public freestyle parkour circuit, as well as pontoons, gazebos playgrounds and exercise equipment. The 30-hectare park was once grazing land and is now being managed to improve water quality in Logan River.

Rehabilitation work underway at Edens Parkland creek The creek at Edens Parkland has reaped the benefits of a major rehabilitation project. The $85,000 first stage of the project significantly improved the creek’s edges and helped control the invasive and exotic species of grass and groundcovers by cutting and spraying. Special geotechnical fabric was also put down to restrict weed regrowth while the newly-planted native species became established. The $150,000 second stage included weed management and planting of native species.

Logan volunteers help clean up for Australia Rubbish weighing the equivalent of two family cars was removed from parks, waterways and nature reserves during the 2016 annual Clean Up Australia Day activities across the city by volunteers. A total of 48 sites were cleaned by volunteers during the 6 March 2016 event which also included businesses, schools and community groups. Logan residents contributed to the 16,657 tonnes of rubbish collected across Australia from 7,117 registered sites. Clean Up Australia Day (including events for schools and business) was held on and around Sunday 6 March 2016.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Priority area: Building our service excellence (SE) PRIORITY FOCUS SE1: Maintain high levels of quality customer service SE2: Enhance community communication and engagement SE3: Pursue alternative sources of revenue to diversify Council's income streams

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS On track/completed: • Undertake an audit of environmental health customer requests Target: April 2016 • Investigate and prepare a report on the feasibility and functionality of standing community reference groups for Council business Target: June 2016 • Investigate the sale or development of surplus Council-owned land Target: June 2016

KPIs Meeting/exceeding target: • Customer satisfaction with Council’s customer service centres (Survey rating scale is 1–5, where 1 is the lowest and 5 is the highest) Target: Maintain an average satisfaction score of 4 or above • Timeliness in answering telephone enquiries within Council’s contact centre Target: Maintain an average wait time of under 45 seconds • Develop and distribute the Our Logan City Magazine to inform residents of Council news and events Target: 10 editions distributed annually Monitor: • Nil Below target: • Timeliness in responding to development assessment customer requests* Target: Customer contacted within 24 hours (100 per cent) * A total of 3,177 (87.88 per cent) of customer requests were responded to within the 24 hour timeframe; however, this result fell short of the 100 per cent target. The causes associated with response delays were identified and addressed in a timely manner.

Undeliverable: • Nil Not proceeding: • Nil

STRONG FOUNDATIONS for a bright future

(Scorecard definitions can be found on page 8).

HIGHLIGHTS IN FOCUS: River visioning starts with field work A major community engagement project to visualise how the Logan community want to use the Logan River over the next 50 years was launched in June 2016 at the Jimboomba Field Days. Council canvassed the community – from anglers, boaties, walkers and kayakers, to families, farmers, occasional visitors and everyone in between – looking for the biggest and boldest ideas for the river which is one of the region’s best assets. Logan River Vision is being developed as a long-term action plan to harness the river’s economic potential. After the community outlined its vision for waterways across the greater Logan region at the 2011 Waterways Summit, the Logan Rivers and Wetlands Recovery Plan was produced recommending the Logan River Vision as a key action. Council staff have already worked on a number of activities including the Slacks Creek Recovery Strategy, pioneered new water treatment options such as the Blackwell St Wetlands project and undertaken extensive education programs with rural landholders.

The Logan River is one of the city’s best assets.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Right to Information access applications processed 52

49 47 45

2011/2012

2012/2013

2013/2014

2014/2015

Our Logan Magazine This full-colour magazine is distributed to all households within the City of Logan and copies are available at major outlets around the city. It is issued monthly between March and December and includes an annual edition focused on that year’s Council budget. Each edition contains information about Council services and news, upcoming local events and divisional projects including park and road projects. Many residents have identified Our Logan Magazine as their preferred way to receive Council information and news (source: Our Logan Residents’ Survey 2014).

2015/2016

For further information on community engagement activities undertaken in 2015/2016, see page 20. Information Privacy access applications processed 35

52 Volume 6 ber 201 Septem

15 11

arker Coreayy inPSeptember

one d

l Schoo holiday es activiti up KRANK

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

Volume of calls taken by our customer service contact centre

n Austria hit for ad e Crestm author

ITIES, COMMUN E PRID ING OUR BUILD NESSES AND BUSI

On the EKKA tra il

Brave Ella’s story

240,040*

229,983

Volume 51 August 2016

228,578

Rio 2016

226,524

Gold med al glory 213,409 BUILDING OUR BUSINESSESCOMMUNITIE AND PRIDE S,

Volume 50 Budget Edition July 2016/2017

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

* Responsibility for water and wastewater services returned to Council on 1 July 2012, and this accounts for the spike in increased call volume for that year.

$4 million

public transport plan

Eats and Beats funded for another year

Parks funding $10.7 million BUILDING OUR COMMUNITIES, BUSINESSES AND PRIDE

STRONG FOUNDATIONS for a bright future

Priority area: Building the wellbeing of our communities (WC) PRIORITY FOCUS

• Complete the Mt Warren Oval and Noyer Park development Target: December 2015

WC1: Consider the draft Action Plan compiled from the Logan: City of Choice Summit. Agree on an appropriate role and determine appropriate responsibilities for Council in response to that plan

• Develop a Sport and Recreation Infrastructure Discussion Paper Target: June 2016 • Deliver a 2015/2016 calendar of events as per the Logan Events Strategy Target: June 2016

WC2: Ongoing priority for healthy and active lifestyle initiatives

Undeliverable:

WC3: Enhanced focus on city events

• Commence construction of the Logan Metro Sports Park, including redevelopment of sports fields and completion of new clubhouse facilities* Target: June 2016

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN

Not proceeding: • Implement the Logan City Environmental Health Plan 2014–2017+ Target: June 2016

PROJECTS On track/completed: • Deliver the Logan: City of Choice Action Plan: –– Education Portfolio –– Housing Portfolio (including the Logan Renewal Initiative) –– Social Infrastructure Portfolio –– Safety Portfolio –– Employment Portfolio –– Transport Portfolio –– Community Involvement Portfolio –– Cultures Portfolio Target: 2015/2016 actions completed by June 2016 • Deliver the Reconciliation Action Plan 2015–2017 Target: 2015/2016 actions completed by June 2016

* Timeframes for delivery of the Logan Metro Sports Park were impacted by design changes required to accommodate the lessee’s needs. It is anticipated that construction will have commenced by December 2016. +

Implementation of the Environmental Health Plan 20142017 continued throughout the financial year; however, Council resolved that managers would continue to report on achievements through existing reporting frameworks, rather than as a stand-alone project in the Operational Plan.

KPIs Meeting/exceeding target:

• Deliver the KRANK School Holiday Program Target: June 2016

• Provide free food safety training workshops for community events and not-for-profit organisations Target: 12 food safety workshops delivered annually

• Deliver the Live Well Logan Program Target: June 2016

Monitor:

• Redevelop sporting facilities at Jimboomba Park including design finalisation and commencement of construction Target: June 2016

• Sport, recreation and community organisations, leasing Council facilities, have commenced the Organisational Development Planning process Target: 100 per cent of organisations have commenced the Organisational Development Planning process

• Complete inspections of all Council leased community facilities that prepare food Target: June 2016 • Finalise the upgrade of Plunkett Park Target: December 2015 • Complete construction at Reserve Park Target: December 2015

• Event feedback surveys: percentage of attendees who rate Council-run events as ‘good’ or better Target: 100 per cent Below target: • Nil

(Scorecard definitions can be found on page 8).

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Visitors to our community spaces

Logan Art Gallery

Animals desexed at our Combined Vets of Logan City clinic

Mayes Cottage Dogs

19,478 17,345 15,264

16,931

1,035

14,600

Cats

1,091 988

965

685 3,755

2011/2012

4,030

3,620

2012/2013

1,871* 2013/2014

2014/2015

1,827*

388

355

346

303

189

2015/2016

Mayes Cottage experienced significantly lower patronage during 2014/2015 and 2015/2016 due to The Time Before festival (Mayes in May) not being held.

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

This includes animals brought to the clinic by the public, as well as animals desexed before being sold or released from our animal management centre.

Our libraries

Visitors

Animals microchipped at our Combined Vets of Logan City clinic

Loans

Dogs

Cats

2011/2012

2012/2013

2013/2014

2014/2015

622

1,984,876

1,663,296

1,998,174

1,673,952

2,101,048

1,840,245

2,180,365

1,420,900

2,289,199

940

1,239,844

2015/2016

535

505 414

307 233

2011/2012

2012/2013

175

2013/2014

212

2014/2015

194

2015/2016

This includes animals brought to the clinic by the public, as well as animals microchipped before being sold or released from our animal management centre.

STRONG FOUNDATIONS for a bright future

HIGHLIGHTS IN FOCUS: Logan Together — Every Child, Every Opportunity The Logan community was galvanised into action in 2015 after the release of a report detailing how some Logan children are falling behind state averages in key areas such as reading, social development and health. In response to the State of Logan’s Children and Young Peoples Report, the community developed a plan to tackle the problems raised head-on.

Over the next decade, Logan Together aims to change the life trajectory of an entire generation of local children. It is operating across government and community groups using a model known as collective impact to achieve shared goals. The initiative is based on supporting every child, the whole way, from birth through to age eight.

Representatives from all three levels of government, non-government organisations, schools and various community groups have banded together to form Logan Together to bring Logan children up to and beyond state averages within 10 years.

Logan Together arose as a response to the community aspirations identified in the Logan City of Choice Summit and is a key action of the Logan: City of Choice TwoYear Action Plan 2013–2015.

This initiative is throwing a spotlight on the challenges faced by some children and families and ensuring good support mechanisms are in place to help them.

It has taken two years to develop Logan Together and to bring more than 36 partners and every level of government on board.

Around 40,000 children in Logan are under eight years of age, and the report highlighted that about 30 per cent of them needed extra focus and support to help them reach their potential.

Logan Together is hosted by Griffith University, Logan Campus, and receives funding and in-kind support from the Australian Government, Queensland Government, Logan City Council and a host of non-government agencies and philanthropic supporters.

The Logan Together initiative is building a strong foundation for the city’s future generations.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Logan Together Project Action Groups making progress Projects to reduce the smoking rate of parents, increase emotional learning and resilience in primary school children and develop community child and maternal support centres for young families are among the initiatives which are being explored by Logan Together’s Project Action Groups. Logan Together’s Foundation Roadmap identified 28 priority projects for 2016 and these ideas are being turned into action by the 28 corresponding Project Action Groups which have been formed. The groups are working with families and service providers to clearly understand the needs of birth to eight-year-olds in the City of Logan to progress projects in a way that best meets families’ needs. The groups are also working together to understand gaps in the community and the activities which need to be delivered to improve life stage outcomes for Logan children. A major part of this work will be further community engagement and citizen participation in the design and production of these solutions.

STRONG FOUNDATIONS for a bright future

Program improving children’s lives The last half of 2015 was a whirlwind of activity for the Logan Together project. More than 1,000 people are already actively helping create the best life opportunities for Logan children thanks to community members, funding bodies, industry and government partners. During 2015, Logan Together partners launched some fantastic initiatives that will make a big difference for local children including a partnership between Communities for Children and Kingston State School to foster social and emotional wellbeing and Education Queensland’s Teacher Education Centre of Excellence.

Live Well Logan hits milestone with 50,000 attendees Residents have embraced the opportunity to improve their health through Logan City Council’s Live Well Logan program with more than 50,000 attendances recorded in 2015. The free and low-cost healthy living activities included in the program are almost always fully booked they are so popular. Participants have provided positive feedback that the program helped them improve their eating habits and increase their general physical activity.

95.7

88.85

87.81

86 83.76

2011

2012

2013

2014

2015

Attendance at our aquatic centres Total for Beenleigh, Bethania, Eagleby and Logan North aquatic centres (managed by Council) Gould Adams Park Aquatic Centre (facility is owned, but not managed, by Council. Also includes spectators from the learn to swim program.)

214,965 103,530 54,742

117,420 0

106,476 0

2011/2012

2012/2013

2013/2014

2014/2015

123,217 121,225

213,916

218,490

Logan West Aquatic Centre (facility is owned, but not managed, by Council.)

152,059 100,418

Support from Council and the Logan: City of Choice Leadership Team provided 25 Aboriginal and Torres Strait Islander students from five Logan high schools with the opportunity to participate in this year’s Creative Generations — Bangarra Dance Program. The Leadership Team helped fund the first rehearsals at the Logan Entertainment Centre, making the program more accessible for local students. Logan City Council also provided support through subsidised venue hire. Students then performed together as part of the 50-strong SouthEast Region entry at the Creative Generations Showcase at the Brisbane Entertainment Centre. The Creative Generations — Bangarra Dance Program is an annual initiative for Aboriginal and Torres Strait Islander secondary school students. It encourages cultural connections between students and elders from local areas in the South-East Area. The program is supported by Education Queensland.

Percentage of customer feedback on our aquatic centre venue services that is ‘good’ or better (%)

197,761

Logan students shine in Creative Generations — Bangarra Dance Project

2015/2016

Our Aqualogan Laurie Lawrence Swim School started in 2011/2012.

Graffiti customer requests received 10,738

6,117 5,363

5,169

2,605

2011/2012

Live Well Logan provides a variety of free and low cost physical activities and healthy living programs for everyone to enjoy.

2012/2013

2013/2014

2014/2015

2015/2016

The data for 2012/2013 onwards also includes instances of graffiti that were proactively identified and removed by our team without a request from an external customer. The cumulative result for 2015/2016 shows that 92 per cent of graffiti requests (2,396) were actioned within two business days. This result is above the annual target of 90 per cent. We removed 30,986 square metres of graffiti in 2014/2015.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Immunisations provided to the community (vaccines) Community

School

Staff influenza

Outreach

At risk influenza

Total 38,310 27,310

26,566 20,899 17,952 11,611 5,872

16,331

15,753

5,361

11,561 7,338

9,974 418

2011

388

2012

7,133 1,608 519

1,479

469 0

9,466

692

2,577 577

151

133

2013

2014

2015

Immunisations provided to the community (clients) Community

School

Staff influenza

Outreach

At risk influenza

Total

27,705 19,225

24,741 18,262

14,123 11,468

8,276

13,202

8,665 6,806

6,182

4,800

3,848

2,774

1,498

1,089 418

388 0

2011

493

2012

519

307

133

3,862 1,009

2013

692

1265 577

151

2014

2015

Indoor sports centres: number of hours occupied Logan Metro Sports Centre (three courts)

Cornubia Park Sports Centre (four courts)

Mt Warren Sports Centre (four courts)

Total 21,075

21,019 18,717

17,676 8,961

7,864 5,477

19,083

4,335

2011/2012

5,277

8,746

8,352 4,479

2012/2013

STRONG FOUNDATIONS for a bright future

5,164

5,567

2013/2014

5,479

8,362 6,794

2014/2015

7,125

5,588

2015/2016

Respect the message

How Logan celebrated Under This Sky

A campaign to promote respectful relationships and antiviolence messages to 12 to 24-year-olds was launched in late 2015 in the City of Logan. What makes this campaign different is it is being shaped and delivered by young people who live in the city. Nine youth ambassadors received scholarships to help create the R4Respect strategy so that its key messages will reach its intended audience. With support from Youth and Family Services, the group has looked at using social media, online games and other innovative approaches to share the respect and anti-violence message and apply them in their own lives.

The Queensland Music Festival’s Under This Sky performance was met with critical and audience acclaim in August 2015. More than 15,000 people attended the events precinct at Logan Brothers for the much-anticipated stage performance. The spectacular community event performed over two nights by more than 700 people — ranging from school children to seniors — told the story of a day in the life of Logan City. The production showcased Logan’s huge, diverse and artistically vibrant community, and involved a cast of dedicated local residents who spent hours rehearsing to produce a seamless performance. Under This Sky was overseen by Queensland Music Festival Artistic Director James Morrison and sponsored by Logan City Council and the Queensland Government via Arts Queensland.

Strengthening ties through reconciliation In another step towards creating a strong and inclusive community, Logan City Council has adopted a Reconciliation Action Plan (RAP) for its staff as a key initiative of the Logan: City of Choice Two Year Action Plan (2013–2015). Through RAP, Council is working to build stronger relationships and partnerships between the organisation and the city’s Aboriginal and Torres Strait Islander communities. By increasing awareness and understanding, RAP is also building community pride, decreasing prejudice and supporting an equitable workforce within Council. The RAP process is a nationally recognised framework with more than 600 organisations having adopted the approach across Australia. Logan City Council is one of only 38 local government authorities across Australia to develop a RAP. Council’s RAP is also supported by a Guideline for Engaging Aboriginal and Torres Strait Islander Peoples in the City of Logan.

Partnership approach to solving Logan’s transport issues Logan City Council and the Queensland Government have joined forces to co-develop a new Integrated Transport Plan for the City of Logan. The plan will address all facets of transport for the city and provide priorities for future planning across public transport, road, rail, bike ways and pedestrian paths. It will help identify and prioritise needs, which in turn will drive budget deliberations and funding investment by both levels of government. This agreement will play a significant role in how transport access across all modes is planned, funded and provided across the city. Council and the State Government are co-funding development of the plan, and a draft is expected to be delivered in 2017. Through the working group formed, a joint Queensland Government, Council and Queensland Community Alliance (QCA) statement was developed requesting funding for the M1/Pacific Motorway, and the Queensland Government committed to trialling a demand response transport scheme in key Logan areas.

City of Logan signs memorandum of understanding to support jobseekers An agreement that forms part of Council’s Skills for Industry pilot program was established as part of the City of Choice: Two-Year Action Plan 2013–2015. The new MoU has brought current job active service providers on board following the Australian-first signing of a similar agreement in 2013. Working closely with the job active organisations operating in the city helps ensure training and recruitment activities closely align with the skills required by local industry and businesses and helps job seekers find work in their local area by ensuring they have the skills Logan businesses need for future growth. As part of the agreement, the Logan Office of Economic Development (LOED) has been working closely with local businesses and all agencies involved. The program has also delivered on-the-job training opportunities resulting in eight of the 13 young hospitality training participants securing work.

Tudor Park reopened with a fresh new look A new skate park and children’s playground became the centrepieces of the new-look Tudor Park in Loganholme in late 2015. Council spent $550,000 upgrading the park and installing shade sails, picnic shelters and an electric barbecue. Consultation with the community took place before work began on the park which has now been turned into a welcoming and well-designed space which the whole family can enjoy.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Logan roars as home of football The City of Logan has become the home of football in Queensland with the state’s only A-League team, three-time premiership winning Brisbane Roar and the state’s largest football zone, Football Brisbane, now calling the city home. Both groups are moving to facilities at Logan Metro Sports Park, in Heritage Park. Brisbane Roar is moving its administration and operations divisions to the city, becoming its first permanent home and base of operations with the club and Council coming to an agreement for a long-term lease. In addition, Australia’s largest football zone, Football Brisbane, which controls and administers community players and competition across five local government areas, is basing its operations and developing new facilities at Logan Metro. The City of Logan has a real passion for sport — the city has produced countless sports stars across all codes and is home to a number of the region’s most prolific and historic football clubs.

Social Enterprise Expo a hit More than 50 Logan City-based socially-minded businesses took part in the hugely successful first Logan Social Enterprise Expo Centre in November 2015 at the Logan Entertainment Centre. Products showcased included spices, baked food, beauty products and recycled goods, along with services ranging from gardening, maintenance and cleaning to community-based finance, self-development courses and job placement agencies. Crowds taste-tested products, heard key speakers and learned about the wide range of high quality social enterprises strengthening the fabric of the Logan City community. Social enterprises not only contribute to the local economy, but also exist to support and train people who face challenges entering the workforce including people with disabilities, people from culturally and linguistically diverse backgrounds and long-term unemployed. They also deliver products and services with a strong social and/or environmental focus.

Brisbane Roar, Joshua Morton Photography.

STRONG FOUNDATIONS for a bright future

Logan City Council wins Heart Foundation Award A project which led to Logan’s six named cycle routes becoming easier to navigate has won a healthy living award. In September 2015, Logan City Council was named as the Queensland winner of the 2015 Heart Foundation Local Government Awards for populations greater than 25,000. Council won the award thanks to its development and installation of customised direction signs designed to encourage people to leave their cars at home and cycle and walk around the city instead. Council won $2,000 as the State winner to spend on a healthy communities initiative and was in the running to win the National Healthy Community Award.

Arts lovers drawn to park Art lovers of all ages were drawn to Logan River Parklands last September to celebrate Animating Spaces Logan: Arts in the Park as part of the state-wide Animating Spaces event. More than 3,000 attendees enjoyed a day of art, sun, creativity and live music beside the river, the culmination of a year’s planning, preparation and arts development. A number of art events were held and a new public artwork unveiled — the ARTS letters. The event was jointly funded by Logan City Council and the State Government through Artslink Queensland, with the support of the Australian Government through the Regional Arts Fund (Regional Arts Australia), Australian Council for the Arts Creative Communities Partnership.

Participants get into the Animating Spaces Logan: Arts in the Park spirit.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

Priority area: Managing growth in our city (MG) PRIORITY FOCUS MG1: Adoption and implementation of a new city-wide planning scheme

* The finalisation of the Beenleigh Town Centre Implementation Plan was slightly delayed but is expected to be finalised in the first half of the 2016/2017 financial year. +

MG2: Development assessment to be best practice

The finalisation of the Springwood Implementation Plan was slightly delayed but is expected to be finalised in the first half of the 2016/2017 financial year.

MG3: Proactive involvement in the review of infrastructure charging philosophies for Queensland

KPIs Meeting/exceeding target:

SIGNIFICANT KEY PERFORMANCE INDICATORS/ PROJECTS AS INCLUDED IN THE 2015/2016 OPERATIONAL PLAN PROJECTS On track/completed: • Implement the new Logan Planning Scheme specific to development assessment processes Target: June 2016 • Finalise new external mapping for Logan Planning Scheme Target: October 2015 • Complete the Beenleigh Town Square development Target: October 2015 • Investigate and present to Council’s Strategy, Leadership and Performance Team on opportunities for amendments to the Logan Planning Scheme Target: September 2015 • Finalise the draft Local Government Infrastructure Plan detailing essential infrastructure that Council plans to provide over the next 10 years to meet the needs of our growing City Target: June 2016 • Develop an in-house growth model to more accurately project and plan for future growth Target: June 2016 • Implement the Digital Planning and Development Action Plan — Stage 1 Target: June 2016 • Develop and implement RiskSMART accreditation for infrastructure charging Target: June 2016 Undeliverable: • Complete the Beenleigh Town Centre Implementation Plan* Target: June 2016 • Complete the Springwood Implementation Plan+ Target: June 2016 Not proceeding: • Nil

STRONG FOUNDATIONS for a bright future

• Nil Monitor: • Achieve statutory timeframes for processing development applications Target: 100 per cent processed within timeframes Below target: • Nil

(Scorecard definitions can be found on page 8).

HIGHLIGHTS IN FOCUS: New community heart opens in Beenleigh A new foundation for Beenleighâ&#x20AC;&#x2122;s future was unveiled in late 2015 with the opening of the Beenleigh Town Square. Australian Prime Minister Malcolm Turnbull joined Council and community representatives for the official opening in early November 2015. Work on the new $9.75 million public space in the heart of Beenleigh involved replacing a six-way roundabout in the centre of the CBD with traffic lights to make the area a more pedestrian-friendly public space for residents and businesses. The transformation of the area will bring many benefits to the area, both economically and socially, and create a place for people to come together.

Council believes the Beenleigh Town Square will stimulate investment in the region and deliver direct economic benefits of $23 million. Beenleigh is one of Loganâ&#x20AC;&#x2122;s pioneering towns with a rural past and an urban future. The community has embraced the new square with a steady stream of local events and activities held there since it opened. Beenleigh Town Square was delivered with the support of the Federal and State Governments which contributed $3 million and $250,000, respectively, towards the project. The State Government injected a further $1.5 million into the redevelopment of the adjacent Southern Districts Courthouse as a direct result of the Town Square project.

The Eats and Beats Festival at the new Beenleigh Town Square.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

PERFORMANCE REPORTING

City of Logan adds four new suburbs

Online tool puts planning in your hands

Four new suburbs have been added to the City of Logan to support projected population growth. Flinders Lakes, Silverbark Ridge, Monarch Glen and Flagstone, all located in the Greater Flagstone Priority Development Area, were granted official suburb status in June 2016. Identified by the State Government in 2010 as a key corridor for population growth in South-East Queensland, Greater Flagstone is expected to be home to 120,000 people by 2050. The Flagstone satellite city will also incorporate a 126 hectare commercial centre and help to create local jobs for the future.

Developers in the City of Logan now have a convenient online tool to estimate costs associated with infrastructure contributions to support new developments. This new function is available in the Logan Interactive Mapping Tool and allows developers to obtain an on-screen estimate of any applicable infrastructure charges for a proposed development before they commit to a project. Infrastructure charges contribute towards the provision of public infrastructure such as water, sewerage, stormwater and community facilities. Believed to be the first online infrastructure charges estimator designed for public use in Australia, the tool provides convenience and flexibility through an instant online estimate, saving a phone call or visit to Council during business hours.

STRONG FOUNDATIONS for a bright future

Logan’s environmental values more visible with new online mapping The value of protected vegetation in the City of Logan is now much more visible to the community thanks to an online estimator introduced in 2015 as part of the new Logan Planning Scheme. The estimator — the first of its kind in Australia — will help property owners estimate the financial cost of clearing vegetation upfront, leading to better environmental outcomes. Property owners can take action to compensate for the environmental costs of their development, such as planting trees elsewhere on

their property or another property, or by making a financial contribution, which will be used to support the environment through Council initiatives. Landowners can draw a shape within the online mapping tool to determine the environmental values of their land, which will allow them to assess the likely cost and environmental impact on a tract of land before a development application is even lodged. After using the online tool, customers will receive an automated report with an estimate of any offset charges. The reports are designed to be an information tool and are not formal quotations or invoices.

An aerial view of the Greater Flagstone Priority Development Area, which will be a region of significant growth for the City of Logan over the next 20 years.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

COMMERCIAL BUSINESS UNITS

Strong foundations for a bright future: construction work to complete the Alfred Street Pump Station to Loganholme Waste Water Treatment Plant.

STRONG FOUNDATIONS for a bright future

Commercial business units This section summarises the performance of our two commercial business units — Logan Water and Logan Waste. It includes each unit’s Annual Performance Plan and is a requirement under the Local Government Regulation 2012. This section also highlights the branches’ key achievements for the financial year and provides a summary of projects planned for the year ahead.

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COMMERCIAL BUSINESS UNITS

Logan Water We own, operate and maintain water and sewerage assets to an approximate value of $1.4 billion. It is critical that we plan for the future to ensure we continue to provide a safe and secure water supply for our growing city.

OUR SERVICES We are responsible for providing safe, reliable and efficient water and wastewater (sewerage) services — including drinking water supply, recycled water supply and trade waste management — to consumers in Logan. We provide community service obligations in accordance with our Community Organisations and Community Service Obligations Policy which ensures our business unit, Logan Water, will be paid in full for all water and sewerage charges.

The Logan Water Infrastructure Alliance is a public and private sector enterprise involving Logan City Council, Downer, Cardno and WSP Parsons Brinckerhoff. Established on 1 July 2015, the alliance supports Council’s water business in the areas of asset management, planning, design, project delivery and organisational development. The alliance’s activities benefit the local economy, environment and community by: • enhancing the value and minimising the cost of infrastructure for the Council and it’s customers • providing infrastructure for Logan’s growing population and economy • installing infrastructure and technologies which reduce environmental and social impacts • providing local employment and training opportunities for staff and local businesses.

We provide water free-of-charge to the Queensland Fire and Emergency Services for firefighting as a public safety contribution. The value of this service cannot be measured because fire hydrants are not metered.

KEY PERFORMANCE INDICATORS Target

Result

Budget variation

Earnings Before Interest and Taxes

within +/– 5% of budget

$53.39 million

$3.98 million (8.06%) over budget target of $49.41 million

Operating expenditure

within +/– 10% of budget

$113.9 million

$30,000 (0.03%) under budget target of $113.93 million

Water purchases

Within +/– 5% of estimated consumption

20,477 megalitres

603 megalitres (2.86%) under consumption target of 21,080 megalitres * There was a reduction in water purchases due to a reduction in unaccounted for water.

STRONG FOUNDATIONS for a bright future

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HIGHLIGHTS Innovative water-saving project reaches final stages An innovative, award-winning water-saving program that started 10 years ago in the City of Logan — saving the equivalent of an Olympic swimming pool full of water every day — has reached its final stages. The pressure and leakage management program started in 2006 at the peak of the 'Millennium Drought' to reduce the potential for breaks in Logan's extensive water pipeline network while also improving the way Council manages the network day-to-day. The city's large water pipeline network, covering more than 2,000 kilometres, was broken down into smaller 'district metered areas' to help Council manage the large network and pressure and leakage issues. The program has saved Council and ratepayers almost $15 million since 2006, simply by detecting and repairing leaks in pipes and using technology to control the pressure to a more consistent level. The number of pipe bursts has also dropped by 38 per cent as a direct result. The program has also been rolled out in the city's southern parts with a further 10 projects completed by the end of June 2016.

$30 million wastewater network upgrade prepares for growing population The City of Logan is better equipped to deal with population growth after a $30 million upgrade to wastewater infrastructure was completed in September 2015. A 21-tonne lid was installed on the new Chambers Flat Rd pump station finalising the major wastewater (sewerage) network upgrade from Logan Reserve to Marsden. Work on the project, which included construction of the pump station and the installation of 3.4 kilometres of wastewater pipeline, began in late 2014. Logan is one of the country’s fastest growing cities, with 70,000 new homes to be built by 2031, and the final stage of this project will ensure that Logan’s wastewater network can better cope with rapid population growth in and around the Park Ridge master planned area.

A 21-tonne lid installed at the Chambers Flat Rd pump station has finalised a major wastewater network upgrade from Logan Reserve to Marsden.

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COMMERCIAL BUSINESS UNITS

Council pumps new life into Logan's largest wastewater pump station Logan City Council’s largest wastewater infrastructure project is paving the way for growth and development in the city’s northern suburbs. Council initiated the $85 million Alfred St pump station to Loganholme Wastewater Treatment Plant (WWTP) wastewater network upgrade project to address serious capacity constraints in the Loganholme catchment. The catchment services more than 200,000 people in 31 suburbs and features commercial centres which contribute most of Logan’s economic output and employment. The project immediately delivered $77 million in capital cost savings, reduced operational costs and provided infrastructure that was more flexible and safer to operate. The alignment was also re-routed around high density residential areas. Under the project, three new 8.4 tonne pumps were lowered into a 20m-deep concrete dry well at the city's largest wastewater pump station after a 16,000 km journey between Germany and the City of Logan. The 25 tonnes of infrastructure, valued at approximately $450,000, was installed at Alfred St pump station, replacing three older models at the end of their useful life. The new pumps are state-of-the-art and each can move around 1,300 litres of wastewater per second, lifting it 33 metres. They are an impressive 3 m high and 1.5 m in diameter. Other upgrades of the pump station, valued at $6.8 million, included replacement of switchboards, refurbishment of wet and dry wells and improvement of staff access for maintenance. The project was constructed in stages from 2012 to 2016 and was completed over 210,000 working hours by 1,400 mostly local workers. Around 93 per cent of construction contracts were undertaken by South-East Queensland companies.

STRONG FOUNDATIONS for a bright future

LOOKING AHEAD TO 2016/2017: • We will continue to manage the water supply and wastewater services for our city in a socially, environmentally and financially sustainable manner in accordance with our Water Netserv Plan 2013–17. • We will dedicate $42 million to continue to provide a reliable water and wastewater service to Logan residents. • We will allocate $15 million to improve the capacity and environmental outcomes related to the Slacks Creek trunk sewer. • We will improve Beenleigh's wastewater network to cater for the planned growth in this area. • We will renew $4.2 million of wastewater mains and manholes across the city. • We will undertake significant planning for the Cedar Grove wastewater catchment network to service the Greater Flagstone area. • We will continue our water main replacement program, replacing $7 million of ageing water mains, $3 million of water meters and $2.1 million worth of water hydrants, valves and flow meters. • We will continue to deliver our pressure management program in the southern parts of the city with $3.7 million set aside for necessary works.

103

Water branches annual performance plan report This is a summary of performance against the 2015/2016 key performance indicators for our three water and wastewater services branches. Netserv focus area

Performance area

2015/2016 target

2015/2016 actual

Safety focused

Safety management

Lost Time Injury Frequency Rate (LTIFR)

<10

Customer service excellence

Drinking water quality management

Number of water quality complaints per 1,000 properties

2.35

Compliance with drinking water quality aesthetic parameters (based on National Health and Medical Research Council guidelines)

≥90%

100%

Compliance with drinking water quality health related parameters (based on NHMRC guidelines)

≥98%

100%

Compliance with NHMRC microbiological guidelines

≥98%

100%

Number of connections experiencing unplanned water interruptions per 1,000 properties

<75

Average duration of water supply unplanned interruptions (time for restoration)

≥3.5 hours

2.38

Average duration of wastewater service unplanned interruptions (time for restoration)

≥3.5 hours

2.68

Earnings Before Interest and Tax (EBIT) (excluding capital adjustments)

Greater than or equal to –5% of estimated budget of $49,410,000

8.06%

Variance against budgeted water purchases

Greater than or equal to –5% of annual target of 21,080 ML

–2.86%

Demand and leakage management

System water loss

<95 litres/day/ connection

Environmental management

Compliance with Dual Encoding Hierarchical Pipelining licenses (number of infringement notices received)

No infringement notices received

Notifiable wastewater overflows reported to DEHP per 100km of main

0.24

Percentage of major incidents reported to DEHP within 24 hours

100%

Number of wastewater odour complaints per 1,000 properties

0.95

Long-term effluent standards

100%

89%

Network operations management

Financial and business efficiency

Environmentally responsible

Financial management

Odour and emissions management

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COMMERCIAL BUSINESS UNITS

Netserv focus area Deliver and maintain our assets

Network maintenance management

Infrastructure delivery

Performance area

2015/2016 target

2015/2016 actual

Number of waste water reticulation main breaks and chokes per 100 km of main

<15

12.85

Number of water main breaks per 100 km of main

<15

4.88

Number of property connection sewer breaks and chokes per 1,000 properties

2.02

Number of dry weather wastewater overflows per 1,000 properties

3.82

Percentage of capital program delivered to budget

â&#x2030;Ľ90%

96%

Logan Water Infrastructure Alliance members laying a section of water pipeline at Tanah Merah.

STRONG FOUNDATIONS for a bright future

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Logan Waste Services We provide essential waste management services to our community, while striving to achieve positive environmental, social and economic outcomes in our day-to-day operations of collecting, transferring, recycling, reusing and disposing of the city's waste.

KEY PERFORMANCE INDICATORS Result

Budget variation

Revenue

$34.651 million

$322,876 (1%) under budget target of $34.974m

OUR SERVICES

Operating Expenditure

$28.847 million

$655,440 (2%) over budget target of $28.191m

We provided the following services and facilities during 2015/2016:

Net profit after tax

$4.088 million

$659,168 (14%) under budget target of $4.748m

• household waste and recyclables collection • Browns Plains Landfill

* See page 109 for the complete Logan Waste Services 2015/2016 Performance Plan Report.

• Logan Recycling Market • transfer stations at Carbrook, Greenbank, Logan Village and Beenleigh • kerbside clean up services • maintenance of closed landfills • street and park litter bin servicing • community service obligations (household paint and chemical drop-off days, dead animal collection and co-ordination of Clean Up Australia Day)

Household waste and recycling in Logan Household waste per week (kg) Household recyclables per week (kg) 14.05

13.95

13.81

14.34

14.2

2.58

2.85

2.69

2.53

2.67

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

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COMMERCIAL BUSINESS UNITS

HIGHLIGHTS Extension of waste collection and recycling contracts The waste collection contract held by JJ Richards & Sons Pty Ltd commenced on 4 July 2011 and has a duration of eight years. It also contains an option to extend the duration by a further two years at Council's discretion. In December 2015 Council resolved to extend the expiry date from 3 July 2019 to 3 July 2021.

Logan Recycling Market rebranding The Waste Services branch collaborated with Council’s Marketing branch to improve promotion of the Logan Recycling Market.

Waste education Highlights of the 2015/16 Waste Education Program were as follows: • Twenty worm farms and eight compost bins were provided to schools as part of the 'Nature's Recyclers' presentations. 100 per cent of respondents to a follow-up survey indicated the systems were in use some time later. • In-class Watch Out Waste lessons were provided to 4,205 students in 186 classes. • Browns Plains Landfill tours were provided to 833 students in 31 classes. • In terms of community engagement, there were five weekend workshops, four library workshops, two

The new marketing initiatives implemented included:

presentations to community groups and one community

• rebranding including signage and staff uniforms

landfill tour, reaching a combined total of 281 residents.

• provision of a coffee cart at the market • establishment of a stand-alone Facebook page. The initiatives reinvigorated staff and gave the market a more prominent social media presence.

Development Assessment Advice on waste services was provided to the Development Assessment branch in relation to 49 applications during 2015/2016.

Logan Recycling Market offers a variety of one-off items for sale at bargain prices, with a share of the profits going to local charities.

STRONG FOUNDATIONS for a bright future

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LOOKING AHEAD TO 2016/2017: • We will complete construction of the new

Community service obligations

entry road into the Browns Plains Landfill from

Community service obligations are provided in accordance with our Remissions to Community Organisations and Community Service Obligations Policy.

• We will prepare the Waste Reduction and

The following community service obligations, their cost and the functional area of Council responsible for specifying the level of service required and paying for the service were as follows:

• We will continue to work towards securing future

Bayliss Rd. Recycling Plan 2017–21 to ensure compliance with the Waste Reduction and

waste disposal arrangements following the closure of the Browns Plains Landfill. • We will implement new weighbridge software

Community Service Obligation

Responsible Branch

Free tipping for community organisations (includes Clean Up Australia Day and disposal of motor vehicles)

Community Services/City Standards

Pensioner discounts for rated garbage and recyclables collection services

Corporate Finance

Cleansing remissions to eligible community organisations

Corporate Finance

Dead animal collection

Environment and Sustainability

$119,788

Household hazardous waste drop-off service

Environment and Sustainability

$53,179

Natural disasters/ emergency situations

Community Services

Total

Recycling Act 2011.

Actual $

to ensure accurate capture of waste data and financial transactions.

$32,336

• We will investigate options to improve traffic safety in and around the Browns Plains Waste and Recycling Facility. • We will undertake a customer satisfaction survey of Logan Recycling Market and transfer

$229,406

station customers. • We will conduct workshops for English as a Second Language (ESL) and multicultural groups

$17,863

to promote correct recycling behaviours. • We will carry out a campaign, which is targeted education, based on visual inspections of recycling bins in suburbs known to have high recycling bin contamination in a bid to reduce the contamination rates.

$0 $452,572

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COMMERCIAL BUSINESS UNITS

Proportional composition of kerbside recyclables by weight (Tonnes) Paper & cardboard

Glass

PET*

Mixed plastic

HDPE*

Aluminium

Steel

Waste

16.2 29

1.3 0.5 1.1 1.3 1.1

37.3

42.3

1.4 1 1.4 2 2.5

30.5

2010/2011

3.7

3.4

2011/2012

33.7

4 2012/2013

31.9

36.6

44.9

47.2

2.1 1.3 2.5 2.8 2.7

2.3 1 2.7 1.3

1.9 1.4 0.8 3.1 3.4

12.7

4.8

2013/2014

52.9

1.8 2.6 2.6

12.1

2014/2015

2015/2016

* PET = Polyethylene (i.e. soft drink bottles) * HDPE = High Density Poly Ethylene (i.e. milk bottles)

Tonnes of waste material diverted from landfill at Logan waste and recycling facilities by type (Tonnes) Material sold at the Recycling Market

Waste vegetation

Net quantity kerbside recyclables

Comix (kerbside recyclables) collected at transfer stations

Cardboard collected for recycling at transfer stations

Metal collected for recycling at transfer stations

2010/2011

2011/2012

STRONG FOUNDATIONS for a bright future

2012/2013

2013/2014

2014/2015

58,712.21 48.73 529.15

3,972.91

38,343.91 14,628.56 1,188.95

3,648.99 93.89 618.41

1,054.38

30,242.77 13,570.79

49,229.23

54,419.67 107.34 613.24 3,362.15

1,045.30

35,031.05 14,260.59

56,846.86 110.65 662.4 3,026.96

924.38

37,067.36 15,055.21

42,013.08 127.81 635.41 3,519.46

23,132.02 13,432.80 1,165.58

105.05 751.24

4,378.69

32,893.47 4,810.49

45,295.39

Total quantity of material diverted from landfill

1,356.45

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2015/2016

109

Logan Waste Services branch annual performance plan report KEY PERFORMANCE INDICATORS KPI

Annual Target

Year to Date Target

Year to Date Actual

% branch sick leave — 12 Month Rolling Average

Achieved 1.94%

Staff with annual leave balance over 40 and 80 days

Not achieved 8

Number of bi-monthly hazard inspections completed on schedule

Branch Specific

N/A

Not achieved All achieved except for the 12 audits carried out in July 2015 which were submitted two days late.

Staff Overtime ($)

$170,458

Not achieved $189,898 due to a higher than expected requirement to backfill for staff absences.

Delivery of waste capital works program on time

90%

Achieved 95% — A number of capital projects were deferred until 2016/2017.

Delivery of waste capital works program on budget

90%

Not achieved 22% — A couple of the relatively high budget capital projects were deferred until 2016/2017.

Return on assets

> budget estimate of 6.82%

8.55%

Not achieved 9.26% — Due to the YTD Net Income being below budget.

EBIT

> budget estimate of $7.951M

$7.951m

Not achieved $7.256m — Due to higher than expected operational expenses and lower than expected revenue.

Gross margins

> budget estimate of $20.075M

$20.075m

Not achieved $19.498m — Due to higher than anticipated expenditure.

Cost of delivering waste services — operating contribution margin met (operating revenue less expenses)

Favourable variance of less than 10%

Achieved 9%

Reports on outstanding reports register

Achieved 0

Overdue audit issues

Achieved 0

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COMMERCIAL BUSINESS UNITS

KPI

Annual Target

Year to Date Target

Year to Date Actual

Extreme and high risks not managed on time

Achieved 0

Proportion of missed bin services

Proportion of missed services is to be less than 0.05%

Achieved The actual number of services carried out in 2015/2016 was 11,304,703. There have been 745 reported missed services due to contractor error during the period. This represents a missed rate of 0.006% which is below the threshold of 0.05%.

Timeliness of returning to collect missed bin services

98% by close of business of the next working day

Achieved 2,677 requests have been received for missed bins during 2015/2016. A total of 2677 (100%) requests were actioned within the timeframe.

Timeliness of repair of damaged wheelie bins

98% repaired or replaced within 2 working days

Achieved 3,184 requests have been received for damaged bins during 2015/2016. A total of 3,180 (99.8%) requests were actioned within 2 working days.

Timeliness of replacement of stolen wheelie bins

98% of replacements provided within 1 working day

Achieved 1,250 requests have been received in total for stolen bins during 2015/2016. A total of 1,237 (98.9%) requests were actioned within 1 working day.

Timeliness of completion of Kerbside Clean Up (KCU) services

Completion of suburb areas in accordance with schedule (within 12 days)

Not achieved All but one of the 18 KCU services conducted throughout 2015/2016 were completed on time.

Level of customer satisfaction with wheelie bin collection service

80%

Achieved 84.8% â&#x20AC;&#x201D; Combined garbage and recycling result * Note: The most recent Logan Listensâ&#x20AC;&#x2122; Residents Survey was conducted in November 2014.

Quality of kerbside recycling

25%

Not achieved Average rate for the April 2016 quarter was 31.34 %.

Number of odour complaints

No standard

10 (from a total of 13) confirmed for 2015/2016 compared to 30 for 2014/2015.

Level of compliance with environmental licence conditions

No formal enforcement action received

Achieved

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PROJECTS Project Name

Annual Target

Year to Date Target

Year to Date Actual

Implement and monitor the Branch culture action plan

All actions completed and/or scheduled to June 2016

Achieved All Culture Plan projects have been completed or are on track to be completed by the scheduled date.

Maintain ISO 9001 and ISO 14001 accreditation

Ongoing

Achieved The last external certification audit was in July 2014.

Tender for the provision of weighbridge software

30 November 2015

On track Target of 2015 was changed after the Waste Services Performance Plan was finalised. The new deadline for the system to be operational is 30 November 2016. Tenders were called in March 2016.

Progress agreed options outlined in the waste disposal report to formalise future waste disposal arrangements following the closure of the Browns Plains Landfill

30 June 2016

On track Negotiations are underway.

Construct the new entry road into the Browns Plains Landfill from Bayliss Rd

30 June 2016

Not achieved Construction commenced in May 2016 and should be completed by 30 December 2016.

Rebadge the Logan Recycling Market using the updated city image style and undertake 20 year anniversary promotion

30 September 2015

Achieved New signage erected and new uniforms issued to staff.

Commence the installation of a trial area phytocap on the former Jimboomba landfill

30 June 2016

Achieved The deposit of acceptable inert materials continues at the site with materials deposited in accordance with an agreed tipping and filling plan. A range of potential restoration and final end-use outcomes have been explored, each incorporating a trial phytocap area that will be designed and constructed when the appropriate fill height has been reached.

Investigate the integrity of the existing leachate management infrastructure at the former Carbrook landfill

30 June 2016

Achieved Inspection of the landfill cap has not identified any major areas of failure that would result in significant infiltration of rain water. Modifications to the site surface water management system and in particular the discharge pathway resulted in reductions inÂ leachate generation.

20 year anniversary was held on 4 July 2015.

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ADDITIONAL STATUTORY INFORMATION

Strong foundations for a bright future: the City of Logan has many natural areas and wetlands including Underwood Park Lagoon.

STRONG FOUNDATIONS for a bright future

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Additional statutory information This section contains a range of information important to Council as an organisation, including statutory information and public interest disclosures required under the Local Government Act 2009, information on our key governance and financial policies, and an overview of our financial sustainability.

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ADDITIONAL STATUTORY INFORMATION

Revenue Policy Our Revenue Policy provides a framework for Council to structure an income portfolio and derive strategies to provide for the financial resource needs of our functional programs.

• multi-residential dwellings • not allocated land • offices • oil depots and offensive industries

Revenue derived from rates must be sufficient to meet the difference between outlays for our functional programs (net of any ordinary business or trading income, grants, subsidies or contributions received) and any internal financial accommodation arranged with our financial entities. This policy applies wherever Council considers the levy or imposition of rates and service charges, fees and other revenue raising strategies. A full copy of our Revenue Policy is available on request. Rates are levied on rateable land values in accordance with our Revenue Statement and Policy, the Local Government Act 2009 and the Local Government Regulation 2012. In 2015/2016, Council had the following differential general rates categories: • commercial • drive-in shopping centres and car parks • commercial mushroom farming • poultry — less than 1,000,000 birds • poultry — greater than 1,000,000 birds • farming • hotels and licensed clubs • industrial

• outdoor sales • residential 1 • residential 2 • miscellaneous • residential institutions — up to 50 sites • residential institutions — 51 to 100 sites • residential institutions — 101 to 210 sites • residential institutions — 211 to 275 sites • residential institutions — greater than 275 sites • retail warehouses • service stations • transformers. Rateable values of properties are based on averaged valuations over the past three years. This is in recognition of the varying impact of property revaluations on rates, especially variances that occur when valuations of some properties reduce and others significantly increase through state government valuations. Council also resolved to make a special charge for the Rural Fire Service for the purpose of funding rural fire brigades to assist them in providing this service.

Debt Policy Our Debt Policy aims to ensure that all borrowing decisions are financially sustainable.

Regulation 2012 and applies to all forms of borrowings undertaken by Council.

The policy has been developed in accordance with section 192 (Debt policy) of the Local Government

A full copy of our Debt Policy is available on request.

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Service charges INTEREST ON RATES AND CHARGES

Service charges apply in situations where Council has ongoing contact with the public as part of our responsibilities and functions in revenue collection, administration and supply. Some of the revenue raised is devoted to administration costs and overheads financed from general revenue. Other income from service charges is used for appropriations to relevant reserves. Ordinary or trading income, grants, subsidies or contributions received in respect of the service programs and any internal financial accommodation arranged within our own financial entities are regarded as service charges. Service

Number of assessments

Value ($m)

Garbage

107,689

29.545

SEPARATE CHARGES In levying separate charges, such as the environmental levy and community infrastructure charge, it is Council’s policy that certain appropriately-identified groups of costs or outlays are to be recovered via a uniform charge on each rateable property within the city. This policy ensures that the impact of those costs is equal across the city’s rate base on the grounds that the function or service is available and for the benefit of all residents. Charge Environmental charge Community infrastructure charge

Net value ($m) 7.679 37.757

CONSUMER CHARGES There are certain other Council services where consumers are expected to meet all, or the majority of, the cost of provision. Those charges relate to property searches and processing applications and licensing registrations. Service Application fees

Value ($m) 14.395

Permit, licence and registration fees

1.535

Property searches

1.984

Total

We continued to impose the maximum rate of interest permissible by statute on outstanding rates and charges in an effort to discourage any avoidance of rates and charges debts. In this respect, we continued to comply with statutory requirements and guidelines regarding the imposition of fines and penalties.

COLLECTION OF OUTSTANDING RATES AND CHARGES At the close of the financial year, the balance of outstanding rates and charges was $18.387 million, or 4.19 per cent of the gross rates and charges levied for the year (compared to $20.577 million and 4.80 per cent in 2014/2015). While we continued our policy of assisting ratepayers to budget payments, we also continued to pursue debtors.

PRECEPTS AND GOVERNMENT LEVIES We complied with appropriate legislation in the levying collection and remittance of precepts and charges payable to the State Government.

DISCOUNTS AND CONCESSIONS It remained Council’s policy to encourage the prompt payment of rates and charges by offering discounts for payment by a designated due date and to further encourage early payment incentives according to guidelines and within limits provided by statute.

Discounts Discounts offered included five per cent of current rates and charges (excluding the State Government’s emergency levy, sewerage and water service charges and water consumption charges), where full payment of rates, including all outstanding arrears, was made by 30 days after the date of issue of the rates notice.

Concessions Council’s policy in 2015/2016 was to provide assistance by way of rate concession to property owners in receipt of a pension from the Federal Government and to offer concessions to achieve specific objectives such as the conservation of environmentally sensitive land.

17.914

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ADDITIONAL STATUTORY INFORMATION

Pensioner concessions Remissions are available on general rates of $321 per annum for maximum-rate pensioners and $160.50 per annum for part-rate pensioners, upon application to Council. Council also offers eligible pensioners on a maximum rate pension, a remission of up to 10 per cent per year and non-maximum rate pensioners a remission of up to five per cent per year on garbage charges. The State Government provides a subsidy of 20 per cent on current rates and charges as levied (to a maximum of

$200 per annum) and a 20 per cent pensioner subsidy on the fire levy charge. The State Government also provides an additional subsidy on water charges for approved pensioners to a maximum of $120 per year. Concession

Number of properties

Value ($m)

State Government

14,068

4.236

Council

14,068

4.073

Total

14,068

8.309

Financial sustainability FINANCIAL MANAGEMENT STRATEGY Council measures actual revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient allocation of resources to ensure the most effective provision of services.

Council ensures that its financial management strategy is prudent and that its long-term financial forecast shows a sound financial position while also being able to meet the community's current and future needs.

Financial sustainability ratios Actual 2015/ 2016

Budget 2016/ 2017

Budget 2017/ 2018

Budget 2018/ 2019

Budget 2019/ 2020

Budget 2020/ 2021

Budget 2021/ 2022

Budget 2022/ 2023

Budget 2023/ 2024

Budget 2024/ 2025

Operating surplus ratio

6.65%

1.5%

2.9%

1.9%

2.3%

2.1%

2.4%

3.1%

4.2%

5.1%

Asset sustainability ratio

86.4%

89.0%

73.1%

67.5%

72.2%

71.9%

63.3%

68.6%

69.3%

69.5%

Net financial liabilities

â&#x20AC;&#x201C;1.34%

20.4%

21.2%

23.8%

29.9%

32.7%

30.2%

26.1%

21.9%

16.9%

Ratio

Tenders and expressions of interest There were no invitations to change tenders under section 228(7) of the Local Government Finance, Plans and Reporting Regulation 2012 during the financial year.

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117

Community service obligations Community service obligations are ‘top-up’ or subsidy payments to our business units for activities undertaken where it is not in the business unit’s commercial interests (i.e. making a profit) to perform the activity/service but we wish to provide the service to the community on public interest grounds (as per section 24 of the Local Government Regulation 2012) . The following information highlights the categories for which Council believes assistance is required on public interest grounds.

Actual value 2015/2016 ($)

Community service obligations Cleansing remissions to eligible pensioners

229,406

Water, sewerage and cleansing remissions to eligible community organisations

997,094

Household hazardous waste

53,179

Free tipping for community organisations (includes Clean Up Australia Day and disposal of motor vehicles)

32,336

Animal removal

119,788

Natural disasters/emergencies

Total

1,431,803

Registers open for inspection To allow people to inspect decisions and disclosures made by Council and Councillors, the following registers are open for inspection:

• disclosure of election gifts

• animal impounds

• environmental reports

• annual budget

• fees and charges — regulatory fees and schedule of

• business activities

• environmental management programs • environmental protection orders

commercial and other charges

• certificate classification under the Building Act 1975

• health licences

• council minutes (on Council’s website)

• impounded animals

• councillor’s register of interests (on Council’s website)

• infrastructure charges

• council policies (on Council’s website)

• licences and approvals under the Environmental

• complaints about councillor conduct or performance • delegations of authority • development assessment applications • development approvals • development permits

Protection Act 1994 • local laws and subordinate local laws • monitoring program results • notices issued under the Building Act 1975 • notifiable diseases.

• disclosure log under the Right to Information Act 2009 (on Council’s website)

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ADDITIONAL STATUTORY INFORMATION

Code of Competitive Conduct for business activities In accordance with sections 45 and 47 of the Local Government Act 2009, Council resolved that the Code of Competitive Conduct (the code) be applied to Plant Fleet Services (workshop, fleet external, fleet internal). Council resolved not to apply the Code to community venues, sport centres, aquatic centres, the Logan Entertainment Centre and development assessment building services. Council’s reasons for not applying the code to the above are below: • One argument often advanced for applying the Code to business units is that the commercial culture will drive efficiencies in both the business unit and the Council administration as a whole. In Logan's case, the internal support service providers work on an ongoing basis in conjunction with the business units and other streams within Council to drive efficiencies for the business units and Council as a whole. The application of the code to these activities would not increase this pressure for change. • It has been the view of Council that the Code not be applied until such time as the business activities can demonstrate that they are efficient and competitive and the Council has accurate financial information on which to base its assessment. The financial information for these activities highlights that Council's purpose is not profit driven but more about increasing community access to services and social benefits.

Logan Metro Sports Centre, Browns Plains.

STRONG FOUNDATIONS for a bright future

• Development assessment building services ceased marketing external private certification services on 30 June 2010 and is primarily focused on providing a customer services obligation in the finalisation of the historical backlog of building approvals from the transferred Local Government areas as part of boundary reforms. If any future requests are made under section 51 of the Building Act 1975 for Council to provide a mandatory certification service, Council can carry out this function. For general certification requests, Council provides a register of external providers and will also refer the requester to the Yellow Pages and the Internet.

SUMMARY OF INVESTIGATION NOTICES FOR COMPLAINTS AND REFERENCE There were no complaints received in regard to competitive neutrality. Currently, no business activities are accredited. Significant business activity undertaken by Council in 2015/2016 related to Logan Waste Services and Logan Water.

119

Administrative action complaint disclosures 2015/2016 We aim to ensure excellent standards of service and have a policy in place to efficiently and effectively investigate, and, where appropriate, take corrective action and/or revise a decision made when a customer is dissatisfied.

We are required under section 187 of the Local Government Regulation 2012 to disclose the number of complaints made and resolved through our administrative action complaints process.

We are committed to dealing fairly with administrative action complaints. To demonstrate this commitment we have:

Please note, the below figures are estimations due to the document management system available to collect the information:

â&#x20AC;˘ provided good decision training (including online training) to relevant officers and customer service training â&#x20AC;˘ implemented a system where administrative action complaints are dealt with by the relevant manager and (where required) internally reviewed by the relevant Deputy CEO. If the complaint still remains unresolved, the complainant is advised of their appeal option to the Queensland Ombudsman.

Outcome of administrative action complaints

Number

Number of complaints made under the Administrative Action Complaints (AAC) process

Number of AAC resolved under the complaints management process

Number of on-hand (or unresolved complaints) under the AAC process during 2015/2016

Number of unresolved complaints under the AAC process from 2014/2015 (previous financial year)

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ADDITIONAL STATUTORY INFORMATION

Logan Water Infrastructure Alliance members finalising the installation of equipment as part of the Pressure and Leakage Management Program.

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National Competition Policy reforms In the late 1990s, the Local Government Act was amended as a result of an Australian Government study, titled The Hilmer Report. This report aimed to increase competition and efficiency of trade and commerce. These principles were then translated across to Council business activities. Significant business activities of Council during 2015/2016 were:

• Logan Water (commercialised significant business activity) • Logan Waste Services (commercialised significant business activity) • Plant Fleet Services — Workshop (code of competitive conduct business) • Plant Fleet Services — Fleet External (code of competitive conduct business) • Plant Fleet Services — Fleet Internal (code of competitive conduct business).

Local Government Finance Standard disclosures The Local Government Regulation 2012 requires certain matters to be disclosed to improve awareness about how we use money for the following: Expenditure 2015/2016 ($’000)

Category Grants to community organisations

For more information about the Mayor and Councillors’ Community Benefit Fund, including a breakdown of funding (recipients, amount and purpose) given by each councillor, visit www.logan.qld.gov.au/communitysupport/grants/mayor-and-councillors-communitybenefit-fund

$1,891

Overseas travel and accommodation costs are detailed below: Name

Position

Destination

Purpose

Cost ($)

Todd Rohl

Deputy Chief Executive Officer — Strategy & Sustainability

North America

$22,307

Garnett Radford

Business Development Executive

2015 International Economic Development Council Annual Conference and associated trade and investment mission

Michael Wardell

Art Gallery Coordinator

New Zealand

Museums Australasia Conference

$1,738

Quality assurance Logan Water maintained certification to quality standard ISO 9001:2008 and environmental management ISO14001:2004.

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FINANCIAL REPORTING

Financial reporting This section outlines our financial performance and standing during 2015/2016, including a summary in plain language, as well as the financial statements that have been prepared in accordance with relevant legislation and accounting standards.

Strong foundations for a bright future: the Woodlands Estate is home to more than 3,500 residents, who are proud to call Logan home.

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FINANCIAL REPORTING

Financial performance highlights • Council has reported an operating surplus of $30.6 million (last year $31.1 million) and an operating surplus ratio of 6.7 per cent (last year 6.9 per cent) against an industry standard of between 0 and 10 per cent for the 2015/2016 financial year. • Council’s total assets have grown by $172 million over the past 12 months to $5.6 billion at 30 June 2016. • Council remains in a sound financial position at 30 June 2016 in terms of both short term liquidity and long term sustainability: – Council has a 3.48:1 (last year 3.34:1) working capital ratio (ratio of current assets to current liabilities) meaning that Council has more than three times the amount of current assets available to meet current liability obligations. – Council’s low debt levels resulted in a favourable debt to equity percentage of 4.8 per cent (last year 5.2 per cent) and – A negative net financial liabilities ratio (total liabilities less current assets as a percentage of operating revenue) of –1.34 per cent (last year +6.94 per cent) indicating that Council has a large capacity to borrow if need be. • Most information presented in this report is over a five-year period to allow readers to judge trends in Council’s performance. Our interest-bearing debt has increased by $142.5 million over the past five years; while capital expenditure over the same period amounted to $695.5 million.

The Democracy Sphere was constructed from steel ballot boxes, epoxy paint and bitumen. The artwork installation by Barry Fitzpatrick, is located outside the City Administration Centre for public viewing.

STRONG FOUNDATIONS for a bright future

FINANCIAL STATEMENTS EXPLAINED Our financial statements consist of six key elements: • The income statement displays the revenues recognised for a period and the cost and expenses charged against those revenues to give a net result. • The statement of comprehensive income summarises changes to the value of a business other than those in the income statement. • The statement of financial position is a snapshot of financial standing at the end of a period by subtracting the value of liabilities from the assets value to show equity. • The statement of changes in equity summarises activities in equity accounts for a period. • The statement of cash flows shows changes to the balance of cash due to business operations. • Notes to the financial statements provide additional information to key financial statements.

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Community financial report WHAT IS A COMMUNITY FINANCIAL REPORT?

WHAT IS FINANCIAL SUSTAINABILITY? The Local Government Regulation 2012 (the Regulation) requires that local governments prepare both current year and long-term financial sustainability statements and publish these in their annual report. The current year financial sustainability statement is also included in the community financial report.

The community financial report provides a plain English explanation of our financial statements so that these can be easily understood by readers who have no financial background.

The purpose of a financial sustainability statement and the associated measures (ratios) is to provide evidence of the local government’s ability to continue operating and to provide an acceptable standard of service to the community both currently and in the longer term.

Interpreting formally presented financial statements prepared in accordance with accounting standards can often be a difficult process for stakeholders. The community financial report highlights key areas of performance and financial sustainability by focusing on the six key elements to the financial statements. The links between the six key elements and brief explanations of each element are provided below.

The Local Government Act 2009 s102 (2) states that “a local government is financially sustainable if the local government is able to maintain its financial capital and infrastructure capital over the long term.” The Regulation requires local governments to report on three financial sustainability measures being an asset sustainability ratio, a net financial liabilities ratio and an operating surplus ratio each of which are presented below.

WHAT ARE THE FINANCIAL STATEMENTS? Financial statements are formal records of the financial performance and financial standing of an organisation. They consist of the six key elements presented graphically below.

These ratios are reported in addition to the annual financial statements and are designed to provide an indication of Council’s financial sustainability.

Income statement Revenue – expenses = net result We have to collect sufficient revenue to fund current and future expenditure

Statement of cash flows Opening cash balance + cash received – cash spent = closing cash balance We must maintain sufficient cash funds to meet short-term obligations

Statement of comprehensive income Notes to the financial statements

Net result + or – other equity changes = comprehensive income We disclose other changes to the value of our business

Additional information to support key financial statements

Statement of changes in equity Opening equity + comprehensive income = closing equity Our corporate governance is crucial to sustainable funds management

Statement of financial position Assets – liabilities = equity We ensure that our business is financially sustainable

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FINANCIAL REPORTING

INCOME STATEMENT The income statement displays the revenues recognised for a period and the costs and expenses charged against those revenues, and measures Council's financial performance during the financial year. Council's net result is measured as the net of total revenues and expenses (revenues â&#x20AC;&#x201C; expenses).

Comparative trend analysis: Revenue and expenses

Net result 608.1

567.8 516.8 458.4 409

427.3

417.3

451.9

339.5 293.8 140.5

99.5 45.7 2011/2012

156.2

49.4 2012/2013

2013/2014

2014/2015

2015/2016

The above chart excludes any gain or loss incurred on the transfer of assets and liabilities in and out of Allconnex Water (AW), as these amounts are not due to normal council operations.

2010/2011

Loss on transfer to AW

Council also receives grants and subsidies from State and Federal Governments, which are used to fund identified operational and asset (capital) projects. Council actively seeks out additional funding to reduce the burden on ratepayers. Amounts transferred to reserve are disclosed in the statement of changes in equity.

Sourcing our revenue: where our money came from We receive revenue from several sources: 2015/2016 revenue sources (%)

Gains/(losses) on transfers to and from AW ($m) Item

Council has been able to continually provide increasing services to the community while maintaining a surplus of funds from its yearly operations, in order to ensure our long term financial stability is maintained. The net result includes developer and other contributions that are disclosed as revenue but then set aside to fund current and future infrastructure costs. Each development approved by Council is required to contribute either completed assets (called donated assets) or cash towards the building of current and future infrastructure necessary to support increased population levels. Council carefully monitors city expansion and plans for priority infrastructure needs.

Expenses against revenue: five-year trend ($m)

Expenses

The net result reported includes funding provided for future operational and capital expenditure, which Council transfers to reserve until spending is incurred. These funds are essential for the maintenance and development of Council assets as the city grows.

Interpreting the figures

The presentation of a single set of data can be misleading and is considerably enhanced through trend analysis. All key measures in this report provide a five year trend and relevant explanations to enhance stakeholders' understanding of Council's financial performance and position.

Revenue

Logan's population has increased from 287,474 in 2011 to 308,681 in 2015, which represents a 7.4 per cent increase over the five-year period.

Amount $ (186.5)

2011/2012

Loss on transfer to AW

(8.7)

2012/2013

Gain on transfer from AW

42.5

Rates ($381.3m)

Fees and charges ($30.3m)

Grants and subsidies ($66.7m)

Asset donations ($91.7m)

Recoverable works and sales ($20.6m)

Interest and Other ($17.5m)

3 3 15

The transfer of Council's water and wastewater businesses to AW on 1 July 2010 meant that Council did not earn revenue from these businesses over the two years 2010/2011 and 2011/2012 although Council has earned both interest and tax revenue from AW totalling $39.1 million and $8.4 million respectively in 2011/2012 ($31.6 million and $8.3 million in 2010/2011). Council's water and wastewater businesses were reincorporated into Council effective 1 July 2012 and were the major reasons for increases in both revenues and expenses during both 2012/2013 and 2013/2014.

STRONG FOUNDATIONS for a bright future

Total revenue $608.1m

63 5

Interest and other includes $4.1 million on the sale of developed land.

127

The revenue graph show the various sources of Council's revenue during the 2015/2016 financial year. Council's revenues are used to fund both operational and asset development expenditure and are based strictly on the recovery of costs incurred to provide the levels of service expected by the Logan community. Many of Council's revenues have a base charge used to partly recover infrastructure costs and a usage element linked to consumption. In this way, Council ensures a fair distribution of costs across the community.

Other costs below include asset reworks of $21.8 million that occur when Council upgrades or adds to existing infrastructure resulting in old assets having to be discarded. Council incurs both operational and capital expenditure. The expenditure table and graph are of operational spending only. Capital spending is added to the carrying value of assets when incurred. Key expenditure statistics include: • Council’s total operating costs amounted to $451.9 million (last year $427.3 million), an increase of $24.6 million (5.7 per cent) over last year. A large portion

Key revenue statistics include: • Council’s recurrent revenue increased by $10.5 million (2.3 per cent) over the year. Council made a gain on disposal of land developments of $4 million during the year and rates revenues increased by $12 million. • Grants and subsidies and developer contributions represented 26 per cent of Council’s total revenue. $13.7 million (last year $14.4 million) of total grants and subsidies were used for operational purposes while $53 million (last year $46 million) was used for capital programs such as the correction of road black spots and other safety initiatives. • Developers provided $91.7 million (last year $71.3 million) in completed assets as part of approved development applications. This represents an increase of 28 per cent on last year.

of the increase was due to the discarding of old assets during capital reworks. • Council spent $152 million (last year $151 million) on expanding and replacing city assets. Such expenditure is accumulated in capital projects and then recognised as Council assets on commissioning of the work. • 38 per cent of Council’s operating cost was incurred for the purchasing of materials and services. Materials and services expenditure is necessary to maintain asset service levels and for the achievement of community objectives portrayed in Council’s corporate plan. • The value of assets administered by Council of $5.6 billion (last year $5.4 billion), means that Council has had to set aside $98.3 million (last year $93.6 million) in depreciation for the year. These funds are used for the improvement and replacement of Council’s infrastructure

Total expenses: where the money was spent The expense graph show the various classifications of Council’s expenditure incurred during the 2015/2016 financial year.

Employee costs ($129.5m)

Depreciation ($98.3m)

Materials and services ($169.6m)

Borrowing costs ($14.1m)

Plant costs ($15.8m)

Other costs ($24.6m)

STATEMENT OF COMPREHENSIVE INCOME The statement of comprehensive income summarises changes to the value of a business other than those in the income statement. During 2015/2016, Council increased the

2015/2016 expenditure (%)

and other assets.

5 29

Total expenses $451.9m

carrying value of its assets by $24 million (last year $562 million) through revaluation. As part of Council sustainability management, Council undertakes regular review of the condition and carrying value of assets. Deterioration in asset condition is managed through planned maintenance programs, while changes in the replacement costs of assets are provided for through revaluation.

STATEMENT OF FINANCIAL POSITION

38 22

The statement of financial position measures what Council owns and owes to relevant stakeholders at the end of the financial year. The result of these two components determines the net wealth of Council, which is the net wealth of the community. Council assets have increased by $172 million (last year $729 million) over the year. The main change is in property, plant and equipment assets due to the $152 million new and

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

FINANCIAL REPORTING

replacement assets and $24 million revaluations reported

What do our liabilities consist of?

above, as well as $91.7 million (last year $71.3 million) in donated assets received from developers and a

The bulk of Council's liabilities are in the form of loans, which represent 72 per cent of Council's total liabilities. Certain projects are financed through loan borrowing in order to ensure inter-generational equity in the allocation of cost.

$98.3 million (last year $93.6 million) reduction in asset values due to depreciation and asset reworks incurred during the year. Council’s cash balance has increased by $30 million (last year $78 million) over the year due to an excess in cash from operations over capital expenditure and loan repayments. Council did not drawdown any new loans during the year.

2015/2016 net worth

Asset (what the community owns)

Provisions include the setting aside of funds to rehabilitate landfill and quarry sites administered by Council, as well as for employee entitlements. 2015/2016 liability types (%)

Loans ($248m)

Provisions ($29m)

Creditors ($68m)

Other ($1m)

5,551

Less liabilities (what the community owes)

(346)

Community equity

5,204

What do our assets consist of?

Total liabilities $346m

The bulk of Council’s assets are in the form of infrastructure assets such as roads and drainage, and water and wastewater, which collectively represent 75 per cent of Council’s total asset base. Total assets are made up as follows:

2015/2016 asset types (%)

Roads & drainage ($2,743m)

Water & wastewater ($1,426m)

Property, plant & equipment ($1,023m)

Cash ($280m)

Inventory ($9m)

Debtors ($60m)

Other assets ($10m)

$58.6 million in borrowings transferred from AW. Due to these changing circumstances, Council's debt per capita has increased from $417 to $804 over the five-year period. 50

Assets and liabilities: five-year trend ($m)

Assets

Liabilities

354.4

346.3

4321.5

4649 327.5

4062.1

4355 292.9

Council undertakes ongoing preventative maintenance processes to maintain high asset service levels for community use.

4099.7

4282.1

A significant part of Council's activities are focused on the maintenance and upgrade of infrastructure assets including the provision of roads, drainage, water, wastewater, and waste services.

Equity 5378.3

5204.4

Total assets $5.6b

5550.7

1 0

In 2011/2012, Council had to borrow to fund certain capital projects due to a reduction in development activity in the city and in 2012/2013 Council received an additional

5023.9

Council's has increased borrowings by $143 million over the five-year period 2012 to 2016 in order to meet capital commitments and due to State water reform.

182.4

128

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

Council’s net assets grew by 3.6 per cent during the 2015/2016 financial period due to the changes in asset carrying values described above.

STRONG FOUNDATIONS for a bright future

129

What is Council’s debt strategy?

Debt per capita: five-year trend ($)

Logan City Council, similar to other councils, undertakes a loan borrowing program to fund new major facilities that are constructed to service community needs.

853 759

Important measures of debt management are presented below.

804

668

DEBT AND CAPITAL EXPENDITURE TRENDS

417

The debt and capital expenditure graph reflects Council’s total outstanding debt and capital works expenditure program over the past five years. In the period 2012 to 2016 our debt increased from

2012

2013

2014

2015

2016

$120 million to $248.1 million, an increase of $128.1 million, including $58.6 million in additional debt in the 2012/2013 year transferred from AW. During the 2012 to 2016 period Council spent $645 million ($696 million less $51 million transferred from AW) on building new community facilities and/or increasing our infrastructure services such as roads, water, sewerage and reticulation. Outstanding debt and capital expenditure: five-year trend ($m)

Outstanding debt

260.4

Sound financial management also requires a balance of affordability by the city to fund debt while increasing its asset base to meet community needs. The percentage of assets funded by debt remained consistent at 2 to 3 per cent over the five-year period 2008–12, but subsequently increased to 4.5 per cent in 2012/2013 largely due to the additional debt transferred from AW. The ratio in 2015/2016 remains at 4.5 per cent. Assets funded by debt: five-year trend (%)

Capital expenditure

228.2

PERCENTAGE OF ASSETS FUNDED BY DEBT

248.1 4.91

195.7 165.8

4.49 150

151

4.84 4.47

152

120 2.8

76.7

2012

2013

2014

2015

2016 2012

2013

2014

2015

2016

DEBT PER CAPITA The debt per capita graph presents the value of Council debt per resident over the past five years. Council's debt per capita has increased from $417 to $804 over the five-year period. Approximately $200 of this increase is due the debt transferred from AW. Council manages financial assets and liabilities to progressively optimise cash and debt levels. Council's strategy is to reduce debt levels to provide borrowing facility in preparation for future asset upgrades and replacements.

PERCENT OF REVENUE REQUIRED TO FUND DEBT REPAYMENTS The percentage of revenue used to fund debt repayments provides an indication of how much of Council revenue is committed to fund past borrowings. The percentage of revenue to finance debt and interest repayments has been between 4 per cent and 6 per cent in the past five financial periods as represented by the debt servicing ratio presented on the next page.

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130

FINANCIAL REPORTING

Debt servicing ratio: five-year trend (%)

Council has incurred capital expenditure and loan

5.69 4.59

4.66

4.73

5.04

repayments of $164 million in the year, which were partially funded from transfers from reserves, developer contributions, planned loan funding and provisions included in Council's rates charges. Net transfers to capital and operational reserves amounted to $144.2 million in 2015/2016 (last year $130.5 million). Part of reserves funds have been used to fund the

2012

2013

2014

2015

2016

How healthy is Council's liquidity? Another important indication in determining the financial health of an organisation is to measure its ability to meet commitments when they fall due. This indicator is commonly known as the working capital ratio and examines the value between short term assets and liabilities. A result of better than a one to one ratio reflects a strong ability by an organisation to have sufficient funds to continue to maintain its cash flows and hence meet its commitments. WORKING CAPITAL RATIO Council, on average over the past five years had 3.47 times the amount required in current assets to pay its short term liabilities. In 2016, the ratio is 3.48:1, which is an increase from 3:34 in 2015.

4.37

3.15

3.34

3.47

$152 million capital expenditure and loan redemptions incurred in the year. Funds collected in previous years may be transferred back to operations to fund operational projects or as capital funding to fund capital projects. The table below presents net transfers between reserves and operations over the past five years. Net result excludes any gain or loss on water reform: Revenues transferred to reserve to fund asset expenditure ($m) 2011/ 2012

2012/ 2013

2013/ 2014

2014/ 2015

2015/ 2016

Net result

45.6

49.3

99.4

140.6

156.2

Transfers

(42.1)

(46.8)

(91.5)

(130.5)

(144.2)

Surplus

3.5

2.5

7.9

10.1

12.0

The 2012/2013 net result and transfers exclude a gain of $42.5 million on transfer of assets from AW. The gain was incurred as a result of water reform and is unlikely to recur.

Community wealth Community wealth or community equity is measured as the net of Council assets less liabilities. Comparative trends show that Council has a healthy community equity position, which has grown steadily over the past five years. Community equity: five-year trend ($m)

5,024

2012

2013

2014

2015

4,100

4,062

2012

2013

5,204

4,322

2016

STATEMENT OF CHANGES IN EQUITY The statement of changes in equity measures the change in our net wealth and considers such items as retained earnings, revaluations of our asset base and reserves held for future capital works

STRONG FOUNDATIONS for a bright future

2014

2015

2016

131

A portion of the community wealth is cash-backed by an appropriate level of reserves held to plan for future projects which with financial planning, can place less reliance on loan borrowing in meeting the needs of the community.

Cash available: five-year trend ($m)

279,710 250,098

Council's equity has increased by $181 million over the past year mainly due to increases in asset values.

172,048 130,197

147,675

STATEMENT OF CASH FLOWS The Statement of Cash Flows identifies how Council received and spent its money during the year resulting in what cash is available at the end of the year.

2012

2013

2014

2015

2016

2015/2016 cash flows ($m) 2015/2016 Results

Sustainability measures

Opening balance

$250.1m

Our Corporate Plan identifies seven priority focus areas:

Plus cash received

$521.1m

• Building our major infrastructure (MI)

Less cash spent

($491.5m)

Cash available at year end

$279.7m

• Building our city’s image (CI) • Building our economic base (EB) • Building our environment (E) • Building our service excellence (SE)

Major sources of cash received and spent ($m)

Net cash received from trading New loans Purchase of assets (net) Repayment of debts Net cash received/ (spent)

2014/2015

2015/2016

$146.9m

$133.5m

$42.7m

–

($101.0m)

($91.6m)

($10.5m)

($12.3m)

$78.1m

$29.6m

Cash available

• Building the wellbeing of our communities (WC) • Managing growth in our city (MG). All of these priorities require both an immediate and longer-term focus, and we have included both legislated and additional measures that provide an indication of our sustainability. The Local Government Act 2009 s102 (2) states that ‘a local government is financially sustainable if the local government is able to maintain its financial capital and infrastructure capital over the long-term’.

While Council’s current cash balance is $279.7 million, it is important to note that this amount is restricted for specific purpose such as future capital works.

A lack of explanation and trend analysis can provide a misleading interpretation of our financial capital and infrastructure capital.

Council started the financial year with $250.1 million as

We have thus provided a trend analysis of the required measures plus additional measures of financial sustainability such as an interest cover ratio, a working capital ratio and an asset consumption ratio, each of which are relevant in the determination of financial sustainability.

current cash balance and ended with $279.7 million. The increase is due to a positive cash inflow from operations. Council has not undertaken any new borrowings during the financial year. Looking forward, Council’s short and long term cash flows indicate that sufficient cash is available to meet recurring activities and capital expenditure.

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132

FINANCIAL REPORTING

WHAT IS FINANCIAL CAPITAL AND INFRASTRUCTURE CAPITAL? Financial capital is the money used by Council to finance its operations. Without continued access to financial capital, Council would not be able to provide services to the community. Council needs to maintain sufficient long term financial capital to continue operating and does this by extensively planning its operations taking account of current and future asset maintenance, renewals, upgrades and expansions, as well as related operational costs required to service a growing city. Council's long term financial plan includes an assessment of Council's ability to borrow funds, access to grants and subsidies and future development contributions, which are used to finance the infrastructure required to support development in the city. Infrastructure capital refers to the physical assets that Council constructs and then maintains. All these assets need to be in a condition that provides a level of service acceptable to the community. Council's extensive maintenance, renewals and upgrade programs provide inter alia the roads, stormwater drainage, landfill, and water and wastewater assets necessary to service the city. WHAT ARE THE MEASURES AND WHAT DO THEY MEAN? Sustainability measures focus on both the present and the future. Council presents long-term financial sustainability measures, which are based on Council's budget and long-term planning processes, in its annual report. Council also presents short term financial sustainability measures in its annual report and repeats these measures including a trend analysis and explanation in its Community Financial Report. The key financial sustainability measures used by Council are described below:

The ratio is calculated as the value of PPE renewals capital expenditure divided by PPE depreciation expense. The theory is that depreciation expense represents the extent that an asset has "worn out" over the financial year while renewals capital expenditure represents the extent that the worn out portion has been replaced. The ratio is misleading and should be read in conjunction with Council long-term forecasts and financial planning. The following additional information should be considered: 1. The majority of Council PPE is comprised of infrastructure assets. 2. Council infrastructure assets have very long useful lives often in excess of 100 years. Infrastructure assets do not wear out uniformly over their lives and are not replaced uniformly either. The ratio does not take account of Council's long-term asset management and financial plans, which include estimates of when infrastructure assets will be replaced, the future costs of these replacements and how they will be funded. 3. Councils' depreciation is mainly based on a straight-line methodology. Council road pavement depreciation is based on asset condition assessments and measures of other factors that affect asset consumption (e.g. road traffic), undertaken progressively over the lives of the assets and would more accurately approximate actual depreciation, while for other infrastructure assets depreciation is determined mainly using a straight-line depreciation methodology. Council is actively reviewing depreciation methodologies for other infrastructure assets, which could lead to a change in depreciation expense in the future, as the methodology will take into account the stage of life and asset consumption factors, including the condition of the asset to determine the rate of depreciation. 4. Council's assets are "relatively new" and are well-maintained.

Sustainability measures required by legislation The three financial sustainability measures required by the Local Government Regulation 2012 are:

The asset sustainability ratio The asset sustainability ratio is an approximation of the extent to which the property, plant and equipment (PPE) assets managed by Council are being replaced as these reach the end of their useful lives.

STRONG FOUNDATIONS for a bright future

Newer and well-maintained assets tend to depreciate at a slower rate. Inclusion of Council's extensive maintenance expenditures would provide a more accurate determination of asset sustainability. For example, where a road surface is allowed to deteriorate, other road components (e.g. the road base and earthworks) would deteriorate at a faster rate than where there is a well-maintained road surface. The asset sustainability ratio was introduced in 2012 and Council has provided a trend analysis over the periods 2012â&#x20AC;&#x201C;2016 on the following page:

133

Asset sustainability ratio: five-year trend 2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

Asset renewals

$21.4m

$61.7m

$76.2m

$63.8m

$71.8m

Depreciation

$55.7m

$74.4m

$91.6m

$91.9m

$83.1m

38.4%

82.9%

83.2%

69.4%

86.4%

Ratio

82.9%

The 2011/2012 and 2012/2013 amounts were based on infrastructure assets only; although from 2013/2014 the amounts used are based on all Council PPE. An acceptable target is a ratio greater than 90 per cent. Council's current asset sustainability ratio indicates that the rate of Council's infrastructure renewal and/or replacement activity is behind that required to maintain infrastructure capital. However, this measure should be read in conjunction with the factors mentioned above to obtain a clearer measure of asset sustainability.

86.4%

83.2% 69.4%

38.4%

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

The net financial liabilities ratio The net financial liabilities ratio measures the extent to which net financial liabilities can be serviced by operating revenues and is a short-term liquidity measure. The ratio determines how well placed Council is to pay its liabilities out of current operating revenue and is calculated as the value of net financial liabilities/(assets) divided by operating revenue. Net financial liabilities/(assets) are calculated as total liabilities minus current assets and a negative measure means that Council's current assets exceed total liabilities.

This ratio does not take account of liability repayment periods, which include longer term borrowings and may be misleading. A more accurate measure of short-term liquidity is provided through the working capital ratio which compares current assets to current liabilities rather than all liabilities, and is presented in the body of this report. Council has provided a net financial liability trend below over the past five years.

Net financial liabilities (assets) ratio: five-year trend 2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

Current assets

$212.2m

$247.6m

$272.7m

$323.1m

$352.5m

Total liabilities

$182.4m

$292.9m

$327.5m

$354.4m

$346.3m

Net financial liabilities (assets)

($29.8m)

$45.3m

$54.8m

$31.3m

($6.2m)

Operating revenues

$289.4m

$386.5m

$416.8m

$450.2m

$460.7m

(10.3%)

11.7%

13.2%

6.9%

(1.3%)

Ratio

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134

FINANCIAL REPORTING

The ratio indicates that Council is well placed to meet its financial obligations. While total liabilities have exceeded current assets in the past few years, this is a result of short-term borrowings transferred from AW. In the current financial year, a reduction in borrowings has resulted in a –1.3 per cent ratio, indicating that current assets exceed total liabilities. Council has a long-term financial plan in pace that caters for short and long-term cash commitments.

11.7%

13.2%

6.9%

2011/2012

2015/2016 2012/2013

The Department of Local Government and Planning’s Financial Management (Sustainability) Guideline 2011 states that “a ratio of less than zero (negative) indicates that the current assets exceed total liabilities and therefore the local government appears to have significant financial capability to increase its loan borrowings if necessary”.

2013/2014

2014/2015 –1.3%

–10.3%

The above comment endorses Council’s strategy to maintain low borrowings in anticipation of future infrastructure assets replacement expenditures.

The operating surplus ratio The operating surplus ratio measures the extent to which revenues raised to cover operational expenses only are available for capital funding and other purposes and is calculated as net operating result (presented in the income statement) divided by operating revenue.

A positive ratio indicates that surplus revenue is available. A negative ratio indicates an operating deficit, which is considered not sustainable in the long term. Council has provided an operating surplus (deficit) trend below over the past five years.

Operating surplus (deficit) ratio: five-year trend

Operating revenues Net result Ratio

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

$289.4m

$386.5m

$416.8m

$450.2m

$460.7m

$6.8m

($7.9m)

$8.9m

$31.1m

$30.6m

2.3%

(2.0%)

2.1%

6.9%

6.6%

Council incurred an operating surplus in 2015/2016 maintaining a positive trend that commenced in the 2013/2014 financial year. The 2015/2016 result

6.9%

6.6%

includes a $4.1 million surplus made on the sale of developed land.

2.3%

2.1%

2012/2013 2011/2012

2013/2014

–2%

STRONG FOUNDATIONS for a bright future

2014/2015

2015/2016

135

Additional sustainability measures presented by Council Interest cover ratio A high interest cover ratio may also mean a restriction on future borrowings and as such is an important sustainability measure. The ratio is calculated as net interest expense (revenue) divided by operating revenue. Net interest expense (revenue) is interest expense minus interest revenue.

The interest cover ratio is an important short-term liquidity measure and provides a measure of the extent to which operating revenues are committed to funding interest expense on current loan borrowings and leases. A high interest coverage ratio indicates that a large portion of current operating revenues is being used to fund finance charges associated with borrowings and that potentially a council may not be able to meet its interest commitments.

Council has provided an interest cover trend below over the past five years.

Interest cover ratio: five-year trend 2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

Interest expense

$6.5m

$9.8m

$10.7m

$12,0m

$13.2m

Interest revenue

$7.6m

$8.5m

$7.3m

$8.2m

$10.7m

($1.1m)

$1.3m

$3.4m

$3.8m

$2.5m

$289.4m

$386.5m

$416.8m

$450.2m

$460.7m

(0.4%)

0.3%

0.8%

0.6%

Net interest expense (revenue) Operating revenue Ratio

Recent increases in borrowings have resulted in an interest expense that exceeds interest revenue, although the excess is minor and means that Council has extensive facility for future borrowing to fund capital replacement and renewal.

0.8%

0.8% 0.6%

0.3%

2011/2012 2012/2013

2013/2014

2014/2015

2015/2016

â&#x20AC;&#x201C;0.4%

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FINANCIAL REPORTING

Working capital ratio

Asset consumption ratio

The working capital ratio, which is 3.48:1, is already presented under Council's liquidity measures and commentary above and is not repeated here. The measure provides an indication of the excess of Council's current assets over current liabilities. A ratio in excess of 1:1 is a strong indicator of short term financial sustainability.

The asset consumption ratio is a measure of the written down value (WDV) of depreciable assets to their "as new" value at up-to-date prices and highlights the average aged condition of non-current assets. The ratio is potentially misleading and is dependent on the depreciation methodologies used for assets (see asset sustainability ratio comments) and is calculated as the written down value of PPE assets divided by the gross current replacement cost of PPE assets. The ratio indicates the extent that PPE assets are through their lives on average, and a high ratio indicates that assets are still new. Council has tabled an asset consumption trend below over the past five years. PPE assets are depreciable assets only and so exclude land, and earthworks. Plant and Equipment assets have also been excluded.

Asset consumption ratio: five-year trend 2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

PPE WDV

$2,400m

$3,525m

$3,791m

$3,594m

$3,677m

PPE gross

$3,647m

$5,355m

$5,802m

$5,416m

$5,370m

65.8%

65.3%

66.4%

68.5%

Ratio

Councilâ&#x20AC;&#x2122;s total PPE assets were impacted by South East Queensland Water Reform during the 2010/2011, 2011/2012 and 2012/2013 financial years when assets had been transferred to Allconnex Water (AW) and then returned on 1 July 2012. The percentage has been consistent at an average of 66.7 per cent over the past five years. It is important to read the relevance of this and other sustainability ratios presented in this report.

68.5%

66.4% 65.8%

65.8% 65.3%

2011/2012

2012/2013

2013/2014

2014/2015

2015/2016

SUMMARY Council ended the 2015/2016 financial year in a sound financial position. Our current position provides the building blocks for stability that our long term financial strategy provides for and allows Council to meet its future obligations and demands of our community in the foreseeable future.

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137

Annual financial statements 30 June 2016 TABLE OF CONTENTS Page(s)

Key financial statements Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows

138 139 140 140

Notes to the financial statements 1 Significant accounting policies 2 Analysis of results by function 3 Rates revenue 4 Gain on sale of joint venture investment 5 Employee costs 6 Material and services 7 Finance costs 8 Cash and cash equivalents 9 Trade and other receivables 10 Property, plant and equipment 11 Trade and other payables 12 Borrowings 13 Financial risk management 14 Fair value measurements 15 Provisions 16 Asset revaluation surplus 17 Cash flow information 18 Commitments for expenditure 19 Contingent liabilities 20 Contingent assets 21 Superannuation 22 Statement of activities to which the code of competitive conduct applies 23 External audit fee

141–154 155–157 158 158 158 158 158 159 159 160–162 162 162 163–164 165–170 171 172 173 174 175 175 176 177 177

Management and audit certificates Management certificate Audit report

178 179–185

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138

FINANCIAL REPORTING

Statement of comprehensive income for the year ended 30 June 2016 Note

2016

2015

$â&#x20AC;&#x2122;000

Revenue Recurrent revenue Rates revenue Fees and charges Recurrent donations, contributions and grants Interest received Profit on sale of land held for development and sale Recoverable works and commissions Sale of materials and services

381,336 30,333 13,700 10,665 4,099 11,864 8,680 460,677

369,090 28,784 14,380 8,162 10,177 11,221 8,342 450,156

91,693 40,477 12,564 2,493 175 147,402 608,079

71,330 39,731 6,253 353 117,667 567,823

129,537 185,444 98,324 14,127 2,627 430,059

127,352 183,125 93,583 12,979 2,041 419,080

21,823

8,171

Total expenses Net result

21,823 451,882 156,197

8,171 427,251 140,572

Net result attributable to: Net recurrent revenue/ (expense) Net capital revenue/ (expense) Net result for the year

30,618 125,579 156,197

31,076 109,496 140,572

24,318 24,318

561,891 561,891

180,515

702,463

Capital revenue Donated assets Capital contributions Capital grants and subsidies Gain on sale of joint venture investment Other capital revenue

Total revenue Expenses Recurrent expenses Employee costs Materials and services Depreciation and amortisation Finance costs Other expenses Capital expenses Decommissioning of infrastructure assets

5 6 7

Other comprehensive income Items that will not be reclassified to net result Increase/ (decrease) in revaluation reserve Other comprehensive income for the year Total comprehensive income for the year

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

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139

Statement of financial position as at 30 June 2016 Note Current assets Cash and cash equivalents Trade and other receivables Inventories Prepayments Non-current assets Other financial assets Investment in joint venture Property, plant and equipment Intangible assets

Non-current liabilities Borrowings Provisions

$â&#x20AC;&#x2122;000

190 5,192,749 5,345 5,198,284

190 507 5,048,339 6,142 5,055,178

5,550,736

5,378,311

11 12 15

67,698 12,850 19,457 1,356 101,361

63,575 12,426 18,289 2,483 96,773

12 15

235,293 9,640 244,933

247,992 9,619 257,611

346,294

354,384

5,204,442

5,023,927

2,658,613 2,545,829

2,634,295 2,389,632

5,204,442

5,023,927

Net community assets

Total community equity

$â&#x20AC;&#x2122;000

250,098 58,800 10,476 3,759 323,133

Total liabilities

Community equity Asset revaluation surplus Retained surplus

2015

279,709 60,342 7,810 4,591 352,452

8 9

Total assets Current liabilities Trade and other payables Borrowings Provisions Other liabilities

2016

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

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FINANCIAL REPORTING

Statement of changes in equity and statement of cash flows for the year ended 30 June 2016 Statement of changes in equity for the year ended 30 June 2016

Asset revaluation surplus $'000 2,072,404

$'000 2,249,060

Total community equity $'000 4,321,464

561,891

140,572 -

140,572 561,891

Balance at 30 June 2015

2,634,295

2,389,632

5,023,927

Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2016

24,318 2,658,613

156,197 2,554,829

156,197 24,318 5,204,442

Balance at 1 July 2014 Net result from continuing operations Other comprehensive income for the year

Note

Statement of cash flows for the year ended 30 June 2016

Retained surplus

Note

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

Cash flows from operating activities

436,884

457,516

(312,918) 123,966 9,765 (13,939) 13,700

(320,277) 137,239 7,434 (12,138) 14,380

133,492

146,915

(151,506) (897) 4,755 3,000 40,477 12,564

(149,475) (1,265) 3,736 39,731 6,253

(91,607)

(101,020)

Proceeds from borrowings (loans raised) Repayment of borrowings (capital repayments)

(12,274)

42,704 (10,548)

Net cash provided by/ (expended on) financing activities

(12,274)

32,156

29,611

78,051

250,098

172,047

279,709

250,098

Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest received Finance costs paid Recurrent donations, contributions and grants Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from sale of property, plant and equipment Proceeds from sale of share in joint venture investment Capital contributions Capital grants and subsidies Net cash used in investing activities Cash flows from financing activities

Net (decrease)/increase in cash and cash equivalents held Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period

Cash flows are included in the statement of cash flows on a gross basis using the direct method of reporting whereby major classes of gross cash receipts and gross cash payments are disclosed. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows. These statements should be read in conjunction with the accompanying notes and significant accounting policies.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies

General information Logan City Council (Council) is a not-for-profit local government entity constituted under the Queensland Local Government Act 2009 and charged with the good rule and local government of the City of Logan. The Council is domiciled in Australia. Its registered office and principle place of business are located at: 150 Wembley Road Logan Central Queensland 4114 Basis of preparation These financial statements are general purpose financial statements for the period 1 July 2015 to 30 June 2016 and have been prepared in accordance with the Local Government Act 2009, the Local Government Regulation 2012, Australian Accounting Standards, Australian Accounting Interpretations, and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB) . The financial statements are presented in Australian dollars unless otherwise noted. These financial statements were authorised for issue by Council on 23 September 2016. Recurrent/ capital classification Revenue and expenditure are presented as "recurrent" or "capital" in the Statement of Comprehensive Income on the following basis: 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. Capital expenses are the cost of decommissioning infrastructure assets. Gain or loss on the disposal of non-current assets, discount rate adjustments to restoration provisions, revaluations of property, plant and equipment, share of joint venture profit or loss, and gain or loss on market value realisation on borrowings are classified as "capital revenue" or "capital expenses" depending on whether they result in accounting gains or losses. All other revenue and expenses have been classified as "recurrent". Statement of compliance These general purpose financial statements comply with all accounting standards and interpretations issued by the AASB that are relevant to Council's operations and effective for the current reporting period. Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), to the extent that these inconsistencies are applied, the 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. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and certain classes of property, plant and equipment at fair value. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Fair value Fair value means the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date taking account of characteristics that are specific to that asset or liability. Valuation techniques and inputs used to develop fair value measurements are provided in the accounting policy notes below. The recognised fair values of financial and non-financial assets and liabilities are classified according to the following fair value hierarchy that reflects the significance of the inputs used in making these measurements: Level 1 - Fair values that reflect the unadjusted quoted prices in active markets for identical assets/liabilities. Level 2 - Fair values that are based on inputs that are directly or indirectly observable for the asset/liability (other than unadjusted quoted prices). Level 3 - Fair values that are derived from data not observable in a market. Council recognises transfers between the fair value hierarchy levels, where relevant, at the end of the reporting period. A transfer between the fair value hierarchy levels may occur if the basis of valuation was changed. Details of fair value measurements are provided in note 14.

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty In the application of the Councilâ&#x20AC;&#x2122;s accounting policies, which are described in note 1, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the critical judgements and estimations that management have made in the process of applying the Councilâ&#x20AC;&#x2122;s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: Property, plant and equipment fair value measurements Some of Council's assets and liabilities are measured at fair value for financial reporting purposes. The Council finance branch under the leadership of the Finance Manager submits asset and liability policies to Council's Finance and Governance Committee for approval. All Council policies are reviewed annually and updated where relevant. In estimating the fair value of an asset or a liability, the Council uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Council engages internal or third party qualified valuers to perform the valuation. The relevant asset owners and Council's finance branch work closely with the valuers to establish the appropriate valuation techniques and inputs to asset valuations. There is no active market for certain Council assets due to their specialist nature and in these cases fair value is calculated using either a cost- or income-based valuation technique. The fair value of Council's water and wastewater infrastructure assets is determined using an income approach based on the net present value of expected future cash flows. The fair value of other specialist assets is determined using a cost approach based on the estimated current replacement cost of the assets. The Finance Manager reports valuation findings to the Council Audit Committee annually to explain the cause of fluctuations in the fair value of the assets and liabilities. Information about Council valuation policy is disclosed in note 1(g) and the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 14. Road asset components Road assets comprise the three major components of road formation, pavement and seal. Road formation is defined as the surface of finished earthworks on which a pavement is constructed. It includes earthworks, the general shaping of the road and basic drainage, but excludes stormwater infrastructure. Formation costs are generally a significant portion of the overall road cost. Upon construction of a road asset, Council recognises the full cost of construction which is apportioned to individual asset components in the financial asset register. At the end of the year, and on recognition of contributed assets, road assets are revalued to fair value. Council uses a "Greenfield" approach to determine current replacement cost (CRC), including formation costs using unit rates determined for local government by the State Roads Alliance project, per road type to estimate the total replacement costs of the major road asset components. The valuation methodology is provided in note 14. Property, plant and equipment depreciation methodology, estimated useful lives and residual values Management reviews the depreciation methodologies, estimated useful lives and residual values of property, plant and equipment assets at the end of each reporting period based on previous experience with each asset category. Each of these estimates has the potential to affect the amount of depreciation recognised annually. Council uses standard rates of depreciation for each major asset category unless factors exist that require a different rate to be applied for particular assets. There have been no major changes during the current year and depreciation methodologies and useful lives remain as disclosed in note 1(g). Landfill and quarry rehabilitation provisions Council recognises provisions for the estimated cost of restoration in respect of refuse dumps (landfills) and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required; discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Management estimates the amount of expected restoration work based on current known restoration costs inflated using relevant cost inflation indices and then discounted to current day values; and the timing of the work based on estimated landfill or quarry volumes. Further details are provided under note 1(m).

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty (continued) Employee leave entitlements Employee leave entitlements are calculated based on the probability that employees will reach entitlement to vested sick leave and long service leave where relevant and an estimation of the timing that leave will be taken or paid out for all leave types. Management determines these probabilities based on recent leave and employment trends as recorded in Council's pay system. There have been no major variations to these trends in the current accounting period. Further details are provided in note 1(n). Revenue from contributions Council receives different types of contributions from external parties including infrastructure contributions from developers and grants and subsidies from State and Federal government. Council applies the relevant accounting policies and interpretations in determining a suitable accounting treatment for each revenue type. Management reviews and interprets development application contracts to determine whether these include reciprocal contributions in the form of a requirement that Council undertake work on specific assets, in which case a liability is recognised, instead of revenue, and revenue recognised progressively according to stage of completion of the associated work. Full details are provided under note 1(c). Impairment of non-current assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. There has been no impairment adjustment in the current financial year. 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 and has early adopted accounting standards AASB2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative - Amendments to AASB101, and AASB2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures for Not-for-Profit Public Sector Entities as described below. The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council's accounting policies. The impact of new and revised standards is summarised below: AASB2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB101 The Council has elected to apply accounting standard AASB2015-2 Amendments to Australian Accounting Standards Disclosure Initiative - Amendments to AASB101 for this financial year, even though the standard is not required to be applied until annual reporting periods beginning on or after 1 January 2016. This standard amends AASB101 to provide clarification regarding the disclosure requirements of AASB101. Specifically, the standard proposes narrow-focus amendments to address some of the concerns expressed about existing presentation and disclosure requirements and to ensure entities are able to use judgement when applying a Standard in determining what information to disclose in their financial statements. The following provisions will affect the presentation of Council's financial statements: a.

This standard provides that an entity need not provide a specific disclosure required by an Australian Accounting Standard if the information resulting from that disclosure is not material. This is the case even if the Australian Accounting Standard contains a list of specific requirements or describes them as minimum requirements. Certain notes previously included in Council's financial statements will be removed due to these not being material in nature.

In deciding whether a particular accounting policy should be disclosed, management considers whether disclosure would assist users in understanding how transactions, other events and conditions are reflected in reported financial performance and financial position. Each entity considers the nature of its operations and the policies that the users of its financial statements would expect to be disclosed for that type of entity. Certain policy notes previously included in Council's financial statements will be removed where these do not improve the understanding of Council's financial statements.

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

Adoption of new and revised accounting standards (continued) AASB2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures for Not-for-Profit Public Sector Entities The Council has elected to apply accounting standard AASB2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures for Not-for-Profit Public Sector Entities for this financial year, even though the standard is not required to be applied until annual reporting periods beginning on or after 1 July 2016. This standard makes amendments to AASB13 Fair Value Measurement to exempt not-for-profit entities from disclosures specified in AASB13 for assets within the scope of AASB116 Property, Plant and Equipment where the assets are held primarily for their current service potential rather than to generate future net cash inflows: a.

For recurring or non-recurring fair value measurements within Level 3 of the fair value hierarchy, quantitative information about the significant unobservable inputs used in the fair value measurement.

For recurring fair value measurements categorised within Level 3 of the fair value hierarchy, the amount of the total gains and losses for the period included in profit or loss that is attributable to the change in unrealised gains or losses relating to the assets held at the end of the reporting period, and the line item(s) in profit or loss in which those unrealised gains or losses are recognised; and

For recurring fair value measurements categorised within Level 3 of the fair value hierarchy, a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs to a different amount might result in a significantly higher or lower fair value measurement. Where there are interrelationships between those inputs and other unobservable inputs used in the fair value measurement, the disclosure of a description of those interrelationships and of how they might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement will also not be required.

The early adoption of this standard leads to a reduction in the extent of disclosures in Council's note 14; Fair Value Measurements. Standards that are not yet effective Council has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective with the exception of AASB 2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative - Amendments to AASB101 and AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures for Not-for-Profit Public Sector Entities as described above. At the date of the authorisation of the financial statements, the standards and interpretations that were issued but not yet effective are listed below: AASB9 Financial Instruments (effective from 1 January 2018) AASB9, which replaces AASB139 Financial Instruments: Recognition and Measurement, is effective for reporting periods beginning on or after 1 January 2018 and must be applied retrospectively. The main impact of AASB9 is to change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements the four current categories of financial assets stipulated in AASB139 will be replaced with two measurement categories: fair value and amortised cost. Financial assets will only be able to be measured at amortised cost where specific conditions are met. As a result, Council would be required to measure its financial assets, including its investments in SEQ Regional Recreational Facilities Pty Ltd, Invest Logan Pty Ltd and the Logan Country Financial Services Ltd, at fair value. However, as none of these entities have a quoted market price in an active market and fair value is unable to be reliably measured, Council has determined to continue to measure investments in these entities at cost. AASB15 Revenue from Contracts with Customers (effective from 1 January 2018) AASB15 replaces AASB118 Revenue, AASB111 Construction Contracts and a number of interpretations and provides a framework for the recognition, measurement and disclosure of revenue from contracts with customers. Due to its recent release, Council is still reviewing AASB15 to identify whether the standard will have a material impact. AASB124 Related Party Disclosures (effective from 1 July 2016) The application of AASB124 to not-for-profit entities, means that council will need to disclose more information about related parties and transactions with those related parties. Council is currently preparing for this change by identifying related parties. Related parties will include the Mayor, councillors and some council staff. In addition the close family members of those people and any organisations that they control or are associated with will be classified as related parties. The amended Australian Accounting Standards and Interpretations which were issued at the date of authorisation of the financial report, but have future commencement dates are not likely to have a material impact on the financial statements.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

The following is a summary of the material accounting policies adopted by Council in the preparation of the financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated: (a)

The Local Government reporting entity

Council has no material operating controlled entities and the financial statements presented are those of the Council only. (b)

Taxation

Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). The net amount of GST recoverable from the Australian Taxation Office (ATO) or payable to the ATO is recognised as an asset or liability respectively. The Council pays payroll tax to the Queensland Government on certain activities. (c)

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of discounts, pensioner remissions and amounts collected on behalf of third parties. Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Council's activities as described below: Rates revenue Where rate monies are received prior to the commencement of the rating period, rates revenue is recognised when the funds are received; otherwise rates revenue is recognised at the commencement of the rating period. Council offers a cash discount for the early payment of rates and a rates remission to pensioners. Cash discounts are recognised as a reduction in revenue on payment while rates remissions are accounted for as a reduced rate charge. Fees and charges Fees and charges include fees for processing applications, licensing and search fees. Revenue from fees and charges is recognised upon unconditional entitlement to the funds. Generally this is upon lodgement of the relevant applications or documents, payment of the infringement notice or when the service is provided. Contributions, grants, subsidies and donations Council receives different types of contributions from external parties including infrastructure contributions from developers and grants and subsidies from State and Federal government. Contributions are measured at fair value and, unless contributions are reciprocal, are recognised as revenue when Council obtains control over the contribution or the right to receive the contribution, when it is probable that the future economic benefits will flow to Council, and if the contribution can be measured reliably. Council did not have any reciprocal grants at the reporting date. Control over a contribution is normally obtained upon receipt or upon prior notification that the contributed amount or asset has been secured based on the arrangements that exist between the contributor and Council. Reciprocal contributions are contributions in which Council sacrifices goods or services of approximately equal value directly to the contributor. Reciprocal contributions do not include the provision of goods and services by Council to third party beneficiaries even if this is a condition of the contribution. A liability is recognised, rather than revenue, if contributions are provided on condition that Council make a reciprocal transfer to the contributor and that reciprocal transfer has not taken place prior to the reporting date. Revenue is recognised as reciprocal performance obligations under funding agreements are fulfilled. Non-reciprocal contributions are recognised as revenue irrespective of whether conditions are imposed on Council's use of the funds. A liability and expense are recognised if and when Council fails to meet specific conditions attaching to the contribution and part or all of the contribution has to be repaid. Infrastructure contributions Infrastructure contributions may be in the form of cash contributions, land contributions or works performed by developers which are then provided to Council as completed works. Where cash infrastructure contributions provided by developers are used to provide a separately identifiable reciprocal supply to the community in the form of community assets, these contributions are initially recognised as a liability and revenue is recognised progressively based on the stage of completion of the associated works.

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(c)

Revenue recognition (continued)

Physical assets are recognised as revenue when the development becomes "on maintenance", which is the point at which Council obtains control of the assets and when there is sufficient data in the form of drawings and plans to determine the approximate specifications and values of such assets. Physical assets contributed to Council by developers are non-cash infrastructure assets (donated assets) in the form of road works, stormwater, water and wastewater infrastructure, and parks equipment recognised at fair value as revenue and non-current assets on receipt. Non-cash contributions below asset acquisition thresholds are recognised as revenue and expenses. Land held for development and resale Revenue is recognised when the risks and rewards have been transferred and Council retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the units sold. Due to the nature of agreements entered into by Council, this is considered to occur on the signing of a valid unconditional contract of sale. Interest income Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the council and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition. Recoverable works Recoverable works revenues are prepaid and held in an unearned revenue account until Council has entitlement and revenue is recognised on completion of the work. (d)

Financial assets and financial liabilities

Financial assets and financial liabilities are recognised when the council becomes a party to the contractual provisions of the instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied. Financial assets classifications Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held-tomaturity’ investments, ‘available-for-sale’ financial assets, and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets classified at fair value through profit or loss Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates interest earned on the financial asset and is included in the ‘interest received’ line item. Held to maturity investments Financial assets with fixed or determinable payments and fixed maturity dates that the Council has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are short-term deposits measured at amortised cost using the effective interest method less any impairment. Interest is recognised on an accrual basis. Available for sale financial assets Investments in unlisted shares that are not traded in an active market are classified as available-for-sale financial assets and stated at fair value. Council had no investments in listed shares or listed redeemable notes at the report date Loans and receivables Trade receivables, loans, and other sundry receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Sundry receivables are short-term rates and other debtors recognised at amortised cost less impairment.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(d)

Financial assets and financial liabilities (continued)

Financial liabilities classifications Financial liabilities are classified as either financial liabilities, ‘at fair value through profit or loss’, or ‘other financial liabilities measured at amortised cost’ (other financial liabilities). Financial liabilities classified at fair value through profit or loss Council had no financial liabilities at fair value through profit or loss at the reporting date. Other financial liabilities Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs and subsequently at amortised cost. Council borrows from the Queensland Treasury Corporation (QTC) and amortised cost is determined using the QTC book rate methodology, with interest expense recognised on an effective yield basis. Financial assets categories Cash and cash equivalents Cash and cash equivalents include cash on hand, all cash and cheques receipted but not banked at the year end, on-call deposits, term deposits with financial institutions, other short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. On-call deposits are deposits in the Queensland Treasury Corporation's (QTC) cash fund and are financial assets classified at fair value through profit or loss on initial recognition. Short-term deposits are classified as held to maturity investments. Receivables Trade receivables, loans, and other receivables (classified loans and receivables) are recognised initially at amounts due at the time of service or delivery and subsequently at amortised cost using the effective interest method, less impairment. Trade receivables are generally due for settlement within 30 days from invoice date. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Loans and advances to community organisations are recognised at the amount provided less any amounts repaid. The imposition of interest, loan terms, and the provision of security for loans will vary from contract to contract. Other financial assets Investments in subsidiaries Council had no investments in trading subsidiaries at the reporting date. Council's wholly-owned subsidiary, Invest Logan Pty Ltd, is not consolidated as the entity is not trading. Equity instruments Equity instruments are measured at fair value being the quoted price for equity shares where an active and liquid market exists for the shares. Where there is no active and liquid market and no relevant valuation technique, Council considers that cost is an appropriate measure of fair value and investments are measured at original cost. Dividends on equity instruments are recognised in profit or loss when Council’s right to receive the dividends is established. Financial liabilities categories Trade and other payables Trade and other payables (classified as other financial liabilities) are recognised as a liability at the time the amount owed can be measured reliably and when it is probable the account will have to be paid. This is at the time of the goods being received or the service being performed. The amount recognised for each creditor is based on purchase or contract costs. The amounts are unsecured and are normally settled within 30 working days.

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(d)

Financial assets and financial liabilities (continued)

Borrowings Borrowings (classified as other financial liabilities) are initially measured at fair value; net of transaction costs incurred which are charged as an expense against Council's net result; and subsequently at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised as an expense charged against Council's net result over the period of the borrowings using the QTC book rate methodology. Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expelled. The difference between the carrying amount of a financial liability that has been extinguished and the consideration paid is recognised as finance cost expenses charged against Council's net result. In accordance with the Local Government Regulation 2012 council adopts an annual debt policy that sets out council's planned borrowings for the next nine years. Council's current policy is to only borrow for capital projects and for a term no longer than the expected life of the asset. Council also aims to comply with the Queensland Treasury Corporation's borrowing guidelines and ensure that sustainability indicators remain within acceptable levels at all times. De-recognition of financial assets Council derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss. On de-recognition of a financial asset other than in its entirety, Council allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss. Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the financial asset have been affected. For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of estimated future cash flows, discounted at the financial assetâ&#x20AC;&#x2122;s original effective interest rate. For financial assets that are carried at cost, the amount of the impairment loss is measured as the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, the expected uncollectible amount is adjusted against the allowance account. Subsequent recoveries of amounts are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. The collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance (impairment) account is used when there is objective evidence that Council will not be able to collect amounts due according to the original terms of the receivables. The amount of the impairment loss is recognised as an expense charged against Council's net result within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off to expense and the impairment allowance is reversed. Subsequent recoveries of amounts previously written off are credited against other expenses resulting in an increase in Council's net result. Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate debts, Council does not impair any rate receivables.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(e)

Financial risk management

Council minimises its exposure to financial risk in the following ways: Council has been allocated a category 2 investment power per the Statutory Bodies Financial Arrangements Regulation 2007 and limits fund investments to category 2 authorised investments as provided in the Statutory Bodies Financial Arrangement Act 1982 as amended. Investments are for periods of less than one year in banks and other financial institutions with suitable defined asset quality and credit ratings. Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia. Council does not invest in derivatives or other high risk investments. When Council borrows, it borrows from the Queensland Treasury Corporation. Borrowing by Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982 and Statutory Bodies Financial Arrangements Regulation 2007. Details of financial instruments and the associated risks are disclosed in note 13. The maximum credit risk exposure of receivables is the carrying amount of these assets as disclosed in note 9. Rates debtors are secured against the property, which can be sold to recover unpaid rates. (f)

Inventories

Inventories include stores inventory held for distribution, recoverable works and land held for sale. Inventory held for distribution is measured at actual cost unless there is an identified loss in service potential, in which case inventories held for distribution are measured at the lower of original and current replacement cost. Recoverable works are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Cost includes the cost of acquisition, direct materials and labour, directly attributable borrowing costs and an appropriate proportion of direct overheads where relevant. Costs are assigned on the basis of weighted average cost. Borrowing costs and other holding charges incurred after development is complete are recognised immediately as expenses. Costs of purchased inventory are determined after deducting rebates and discounts. Land held for sale is measured at the lower of cost or net realisable value. Cost is assigned by specific identification and includes the cost of acquisition and development and borrowing costs. When development is completed, borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in the cost of land held for sale are those costs that would have been avoided if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. (g)

Property, plant and equipment

Asset classes Council property, plant and equipment (fixed asset) classes comprise land, buildings, plant and equipment, roads and drainage, water and wastewater, landfill and quarry, and capital work-in-progress. Fixed assets are held for use in the production or supply of Council goods or services or for administrative purposes. Measurement on initial recognition Fixed assets are initially measured at cost (being the fair value of the assets given as consideration after discount), other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management including borrowing costs where relevant, and an initial estimate of the costs of dismantling and removing the item, and restoring the site on which it is located. Non-monetary assets contributed to Council (contributed or donated assets) are recognised as assets and revenues at fair value by Council valuation. Fixed assets in the course of construction for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Measurement subsequent to initial recognition Subsequent to initial recognition, assets within each class of asset, excluding plant and equipment, but including major plant and equipment, are measured at fair value less accumulated depreciation and accumulated impairment. Major plant and equipment is defined as that component of plant and equipment with a gross carrying value in excess of $1m. Council had no recorded major plant and equipment at 30 June 2016. Any plant and equipment with a gross carrying value of less than $1m is measured at cost less accumulated depreciation and accumulated impairment. Revaluations are performed with sufficient regularity such that asset carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(g)

Property, plant and equipment (continued)

Bases used to determine fair value Due to the nature of Council's business, there is not always an active market for Council's assets. Where there is an active market, as is the case with most land and some building assets, a market approach is used to determine fair value, which is based on recent purchase or sales prices for similar assets in the same or a similar location. Where there is no active market for similar assets and a market approach is inappropriate, fair value is determined using a valuation technique. An income approach using a discounted cash flow (DCF) analysis is used for water and wastewater infrastructure assets. Council has resolved that its water services business unit is to be operated on a for-profit basis. Council's water services business unit is a commercially focussed business unit the principal activities of which are the provision of water and wastewater services. Its business goal is to maximise financial returns and cash flows to support Council's other operations. Other Council infrastructure and specialised building assets are valued using a current replacement cost approach. Fair value is determined based on the current replacement costs of similar assets purchased or constructed by Council or the cost to Council to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. Fixed asset fair value measures are classified under a fair value hierarchy required by Australian Accounting Standard AASB13, Fair Value Measurement, as described under the paragraph Fair Value within Council's Significant Accounting Policies. Details of fair value classifications and the techniques used to determine fair value are disclosed in note 14, Fair value measurements. Revaluation adjustments Any revaluation increase arising on the revaluation of fixed assets is recognised in other comprehensive income and accumulated within equity, except to the extent that it reverses a revaluation decrease for the same asset class previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of fixed assets is recognised in profit or loss to the extent that it exceeds the balance, if any, held in the revaluation surplus relating to a previous revaluation of that asset class. Where an asset is disposed of, that portion of the asset revaluation surplus that relates to that asset remains in revaluation surplus. Restrictions on title and property, plant and equipment pledged as security There is neither restriction on title nor has Council pledged any item of property, plant and equipment as security for Council or third party liabilities or debt other than those disclosed in note 10 Property Plant and Equipment. Land under roads Land under roads is recognised as a non-current asset where Council holds title or a financial lease over the asset. Council does not currently have any such land holdings. The land under road network within the council area has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994. This land is controlled by the State pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements. Capital and operating expenditure Wages and materials expenditure incurred for the acquisition or construction of assets is treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised. Non-current asset threshold An asset acquisition threshold of $5,000 applies to all assets individually except for land and networked assets. The asset acquisition threshold for land is $1 and the $5,000 threshold applies collectively to networked assets. Networked assets are assets that are either not separately identifiable or are networked for operational reasons (e.g. computer cabling). Asset disposals An item of property, plant and equipment is derecognised upon disposal, write off (decommissioning), or when no future economic benefits are expected to arise from the continued use or disposal of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. Council may decommission part or all of an existing asset during new construction. Where an asset is decommissioned the carrying value of the decommissioned asset is recognised as a capital expense in profit or loss.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(g)

Property, plant and equipment (continued)

Depreciation of property, plant and equipment Depreciation is recognised so as to write off the cost or valuation of depreciating assets (i.e. fixed assets other than freehold land, artwork and properties under construction) less their residual values over their estimated useful lives, using the straight-line, reducing balance or a consumption-based method where consumption can be accurately determined. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The depreciation methodology used for buildings assets was changed from a consumption-based to a straight-line methodology during the year. Council owns a wide range of assets and asset lives are determined based on the nature of the asset, durability, use, technology changes and other factors relevant to Council's business. Asset classes are further subdivided into sub-classes and asset groups. Separately identifiable parts of an asset that are of significant value and have different lives are recognised as separate asset components and depreciated separately. Major spares purchased specifically for particular assets that are above the recognition threshold are capitalised and depreciated on the same basis as the asset to which they relate. Asset depreciation methods, depreciation periods for asset classes, and major sub classes, are tabled below. Asset class Land Buildings

Plant and equipment

Roads and drainage

Water and wastewater Waste landfill Quarry

Asset sub-class Freehold land Administration buildings Residential buildings Community & Sports centres Toilet blocks Cultural assets Library materials Parks equipment Parks facilities Operational plant Vehicles Artwork Roads surface Pavements Earthworks Bridges Drainage - Box culverts Drainage - Headwalls Drainage - Pipes Drainage - Pipes large diameter trenches Drainage - Short-lived pits Drainage - Long-lived pits Public lighting Water infrastructure Wastewater infrastructure Water and sewerage facilities Waste cells Quarry

Depreciation periods Not depreciated 39 - 140 years (straight line) 8 - 82 years (straight line) 20 - 108 years (straight line) 42 - 110 years (straight line) 6 - 75 years (straight line) 2 - 8 years (straight line) 1 - 50 years (straight line) 1 - 75 years (straight line) 1 - 36 years (straight line) 1 - 10 years (trucks-straight line; cars and utility vehicles-reducing balance) Not depreciated 14 - 65 years (consumption based) 50 - 75 years (consumption based) Not depreciated 30 - 100 years (straight line) 100 years (straight line) 100 years (straight line) 100 years (straight line) 200 years (straight line) 50 - 100 years (straight line) 200 years (straight line) 40 years (straight line) 15 -90 years (straight line) 40 - 160 years (straight line) 10 - 150 years (straight line) 1 - 6 years (remaining airspace) 15 years (straight line)

Gains or losses on disposals are determined by comparing net disposal proceeds with carrying amount. Council does not transfer amounts accumulated in revaluation surplus to retained earnings on disposal. (h)

Intangible assets

Intangible assets that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Asset amortisation periods for intangible asset classes are 1-10 years.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(h)

Intangible assets (continued)

Finite intangible assets with a cost or other value exceeding $5,000 are recognised as intangible assets in the financial statements. Finite intangible assets with a lesser value are expensed when incurred. Intangible assets with indefinite useful lives that are acquired separately are recognised as intangible assets, are not amortised, and are carried at cost less accumulated impairment losses. Council has no internally generated research and development. Intangible assets comprise purchased software only. (i)

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership, excluding legal ownership, to the lessee. All other leases are classified as operating leases where substantially all the risks and benefits remain with the lessor. Council as lessor Council had no third party finance leases provided at the reporting date. Council leases land to community sporting bodies as a community service, but retains responsibility for their continued use, maintenance and insurance. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. (j)

Impairment of non-financial assets

At the end of each reporting period, the Council reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of any impairment loss. Recoverable amount is the higher of fair value less costs to sell and value in use. Any amount by which the asset's carrying value exceeds the recoverable amount is recorded as an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. When 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 immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment on an ongoing basis. If an indicator of impairment exists, Council determines the asset's recoverable amount. (k)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the capital cost of those assets until such time as the assets are substantially ready for their intended use or sale. An asset is considered to be "substantially ready" once physical construction of the asset is complete. Borrowing costs not directly attributable to the acquisition, construction or production of qualifying assets or incurred subsequent to construction, and finance costs incurred through the discounting of provisions, are recognised as expenses charged against Council's net result in the period incurred. (l)

Provisions

Provisions are recognised when Council has a present legal or constructive obligation as a result of a past event, it is probable that Council will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value for money and the risks specific to the liability. Any increase in provision due to the passage of time is recognised as a finance cost. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(m) Rehabilitation (restoration) provisions A provision is made for the cost of restoration in respect of refuse dumps (landfills) and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required; discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Increases in provisions for restoration are recognised as finance costs to the extent that these are due to the passage of time. Assets carried under the cost model For assets carried under the cost model, increases in restoration provisions are recognised as an increase in asset carrying values and amortised over the life of the asset. Decreases in restoration provisions are recognised as a decrease in asset values unless the decrease exceeds the carrying amount of the asset, in which case the excess is recognised immediately as a gain resulting in an increase in Council's net result. Assets carried under the revaluation model For assets carried under the revaluation model, increases in restoration provisions are recognised as a reduction in revaluation surplus, or if the increase exceeds the balance in revaluation surplus for the asset class, as an expense charged against Council's net result. Decreases in restoration provisions are recognised as an increase in revaluation surplus, except to the extent that the decrease in provision reverses a previous revaluation decrease that was recognised as an expense charged against Council's net result. In this case the decrease in provision is recognised as a gain resulting in an increase in Council's net result. Landfill restoration The provision represents the present value of the anticipated future costs associated with the closure of Council landfill sites, decontamination and monitoring of historical residues and leaching on these sites. The provision recognised for landfills is reviewed at least annually and updated based on the facts and circumstances available at the time. Current landfill cells are expected to close in the period between 2022 and 2026. Quarry rehabilitation The provision represents the present value of the anticipated future costs associated with the closure of the Kingston quarry site, decontamination and monitoring of historical residues and leaching on the site. The provision recognised for the quarry is reviewed at least annually and updated based on the facts and circumstances available at the time. The quarry site is expected to close in 2027. (n)

Employee benefits

Liabilities are recognised for employee benefits such as wages and salaries, annual leave, vested sick leave, and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Liabilities that are expected to be settled within 12 months after the reporting date are measured at the amount expected to be paid when the liabilities are settled and are not discounted to present value. Liabilities that are expected to be settled at least 12 months after the reporting date are measured as the present value of the estimated future cash flows to be made in respect of services provided by employees up to the reporting date. The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the employee remaining in the Council's employment or other associated employment which could 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. Salaries and wages A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. This liability represents an accrued expense and is reported in Note 11 as a payable. Leave classifications As Council does not have an unconditional right to defer leave liabilities beyond 12 months all leave balances, except where there is no current entitlement, are classified as a current liabilities. In all cases, amounts expected to be settled within 12 months are calculated on current salary levels including related employee on-costs. Amounts not expected to be settled within 12 months are calculated on projected future salary levels and related on-costs discounted to present value. Annual and sick leave Council has an obligation to pay accumulating annual leave, and vested sick leave to qualifying employees, and liabilities have been recognised for these obligations. Council does not recognise a liability for non-accumulating sick leave. Annual and sick leave liabilities represent accrued expenses and are reported in Note 11 as payables.

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 1.

Significant accounting policies (continued)

(n)

Employee benefits (continued)

Long service leave Council has an obligation to pay accumulating long service leave to qualifying employees and a liability has been recognised for this obligation based on the probability that employees with different service levels will reach entitlement. As the amount and timing of the obligation depends on the number of years of service, the liability is reported in Note 15 as a provision. Superannuation Payments to defined contribution and to defined benefit retirement benefit plans are recognised as an expense when employees have rendered services entitling them to the contributions. The superannuation expense for the reporting period is the amount of the contribution the Council makes to the superannuation plan which provides benefits to employees. The local government superannuation (LG Super) scheme is a multi-employer plan. As LG Super is unable to account to Council for its proportionate share of any obligation, plan assets or costs associated with the defined benefit plan, the plan is accounted for as if it were a defined contribution plan. Superannuation arrangements are further detailed in note 21. (o)

Components of equity

Council equity consists of a retained surplus and an asset revaluation surplus. As a local government entity, Council has no contributed equity. (p)

National competition policy

Council has resolved to apply the National Competition Policy requirements of the Local Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation) and has undertaken the following steps: i

Determined that Council's Water and Wastewater, and Waste services business activities are significant business activities as defined in the Act, and undertaken public benefit assessments to establish that the benefits of applying competitive neutrality principles to these activities outweighs the cost. Significant business activities are business activities of a local government that are conducted in competition, or potential competition, with the private sector (including off-street parking, quarries, and sporting facilities); and meet expenditure thresholds prescribed under the Regulation.

Commercialised the identified significant business units by applying full cost pricing to their activities and creating separate business units within the Council.

iii

Determined that Council's building certification and plant fleet services activities are prescribed business activities as defined in the Regulation and applied the Code of Competitive Conduct to these activities. A prescribed business unit is defined as a business activity that meets an expenditure threshold prescribed under the Regulation. The competitive code of conduct 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.

Determined that the Roads & Drainage Service Group no longer meets the criteria as a significant or prescribed business activity in terms of competing with external business. In addition, given the new City's requirements, there is no excess capacity to pursue external business opportunities in the short to medium term.

Implemented full cost pricing by pricing the goods and services of significant and prescribed business activities on a commercial basis.

Including activity statements for significant and prescribed business activities. Significant business activity statements and further explanation are provided in note 2, while prescribed business activity statements, consumer cross-subsidies and community services obligations are provided in note 22.

(q)

Comparative figures and rounding

Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year. Amounts have been rounded to the nearest $1,000 to enhance the readability of the reports.

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Notes to financial statements 30 June 2016 2.

Analysis of results by function

Council's Strategy, Leadership and Performance Team (SLPT) have determined Council functions and activities based on service delivery. The streams are Road & Water Infrastructure Services, Community & Customer Services, Strategy & Sustainability, and Organisational Services. Council business units and the Corporate Revenue branch are reported separately as management considers that such disclosures are meaningful to users of Council's financial reports. (a)

The activities of Council are categorised into the following broad functions:

Council business units Council's Water and Wastewater Services, and Waste Services activities are classified as significant business activities under the Local Government Regulation 2012 for National Competition Policy (NCP) purposes and are accounted for as separate business units. Council's building certification and plant fleet services are classified as prescribed business activities under the Local Government Regulation 2012 and Council has applied the Code of Competitive Conduct to these business activities. Council has undertaken an assessment and determined that there were no new significant business activities started in the current financial year. Water and wastewater services Council's water and wastewater services business unit is a commercially focused business unit the principal activities of which are the provision of water and wastewater services. Its business goal is to maximise financial returns and cash flows to support Council's other operations. Water services consist of three key areas comprising asset management, water treatment and quality managed by the water business branch; infrastructure planning, design and construction managed by the water infrastructure branch; and maintenance and supply services managed by the water operations branch. Waste services The goal of this function is to protect and support our community and natural environment by sustainably managing refuse. The waste services branch is responsible for the collection of household waste, kerbside clean ups, servicing of litter bins, bulk disposals at landfills, waste transfer stations, the Logan recycling market, gas extraction from landfills, municipal bulk solid waste collection, the management of waste vegetation, maintenance of closed landfills, household hazardous waste services and environmental monitoring of current and former waste disposal facilities. Corporate revenue The objective of the Corporate Revenue stream is to manage corporate revenues and investments. Corporate revenue consists of activities primarily related to the collection of general rates and financial service activities. Financial service activities comprise Council's treasury function which is responsible for the administration of council borrowings and investments. Road infrastructure services The objective of the roads infrastructure services stream is to ensure that the community is serviced by a high quality and effective road and drainage network. The stream consists of the key operational areas of Council that are not classified as large business areas for NCP purposes including road construction and maintenance, road infrastructure planning and delivery, and disaster management and specialist engineering support. Community and customer services The objective of the Community and Customer Services stream is ensure that Logan is a healthy, vibrant, contemporary and connected community. The stream includes marketing, sport, leisure & community facilities, media & communication, library & cultural services, animal & pest services, community services, customer services, and parks. Strategy and sustainability The goal of the Strategy and Sustainability stream is to support the local business economy to ensure that it is strong and sustainable. The stream includes strategy & planning, development assessment, economic development, environment & sustainability, and city standards. Organisational services The objective of the Organisational Services stream is to support Council business units and city services. The stream consists of governance, finance, people & culture, information services, plant fleet services, and administration.

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

STRONG FOUNDATIONS for a bright future

5,418 14,619 398

3,940 3,822 344

568

197 397,874

12,885

3,086

131,694

5,517

4,636

30,734

162,773 877

$'000 184,520

$'000 43,710 12,749 67,316

Rates, fees and charges

Grants and contributions

411,669

32,375 170,373 991

11,779 98,375

158,434

$'000 187,495

$'000 40,174

Total expenses

Net result

37,902

682

10,964

4,104

10,978 878

2,061

Other recurrent revenue $'000 8,235

35,308

481

4,177 6,542

1,659 13,170 1,052

Other recurrent revenue $'000 8,227

Reconciliation of revenue and expenses to Council's Income Statement Total revenue

Total

Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services

Waste services

Water and wastewater services

Year ended 30 June 2015 Segments

Total

Water and wastewater services Waste services Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services

Rates, fees and charges

Grants and contributions

87 (26)

(24,436) (13,586) (105,581) (58,750) (31,311) (62,237) (430,059)

$'000 235,896 34,121 195,322 100,392 13,360 25,012 3,976 608,079

(26,895) (60,764) (419,080)

567,823 2015 $'000 567,823

353 2016 $'000 608,079

(427,251) 140,572

(451,882) 156,197

559

2,006

(55,576)

14,257

32,795

(11,425) (106,884)

(25,522)

$'000 236,465 186,333 69,032

Total recurrent expenditure $'000 (132,014)

Total revenue

Total recurrent expenditure $'000 (134,158)

Total revenue

26,935

(167) (39)

$'000

Other capital revenue

2,668

2,753

(175) 29

$'000

Other capital revenue

Income and expenses have been attributed to the following segments as set out in note 2(a):

(b)

Year ended 30 June 2016 Segments

Analysis of results by function (continued)

(8,171)

(365)

(177)

167 (5,375)

(272)

Total capital -related expenditure $'000 (2,149)

(21,823)

(253)

(59) -

(13,442)

Total capital -related expenditure $'000 (8,069)

(427,251)

(61,129)

(26,895)

(55,753)

(11,258) (112,259)

(25,794)

$'000 (134,163)

Total expenses

(451,882)

(62,490)

(58,809) (31,311)

(24,436) (13,586) (119,023)

$'000 (142,227)

Total expenses

140,572

(59,123)

(41,496)

175,075 (43,227)

7,001

$'000 102,302

Net result

156,197

(58,514)

(45,449) (6,299)

9,685 181,736 (18,631)

$'000 93,669

Net result

Notes to financial statements 30 June 2016

156 FINANCIAL REPORTING

(607)

150,791 (346,294)

(3,414) (4,348)

286,462 60,051

5,550,736

(9,021) (13,813) (26,470)

45,141

270,939 3,165,429

$'000 1,571,923

Total liabilities $'000 (288,621)

(4,820) (354,384) 2015 $'000

72,234 156,114 5,378,311 2016 $'000

150,184 5,204,442

Total liabilities Net assets

(354,384) 5,023,927

5,204,442

5,378,311

(346,294)

5,550,736

(3,629)

287,672

283,048 55,703 (172)

(17,883) (27,486)

56,778 240,508 3,047,952

(9,466)

Total liabilities $'000 (290,928)

36,120

$'000 1,517,053

Total assets

5,023,927

155,942

67,414

284,043

222,625 3,020,466

47,312

$'000 1,226,125

Net assets

Year ended 30 June 2015

257,126 3,138,959

$'000 1,283,302

Net assets

Reconciliation of assets and liabilities to Council's Statement of Financial Position Total assets

Total

Waste services Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services

Water and wastewater services

Total assets

Year ended 30 June 2016

The financial position of business segments set out in note 2(a) is presented below:

(c)

Segments

Analysis of results by function (continued)

Notes to financial statements 30 June 2016

157

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FINANCIAL REPORTING

Notes to financial statements 30 June 2016 Note

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

Analysis of revenue and expenditure from continuing operations 3.

Rates revenue 136,960 48,734 33,989 75,108 72,422 29,545 396,758 (15,422) 381,336

General rates Environmental and community service charge Water access charges Wastewater charges Water consumption Garbage charges Less discounts given and pensioner remissions 4.

130,045 48,063 32,833 72,538 72,252 28,254 383,985 (14,895) 369,090

Gain on sale of joint venture investment

During the current financial year, Council disposed of its investment in a joint venture entity called the Greenbank Commercial Centre Pty Ltd (the centre) in which Council and Pub Lane Investments Pty Ltd each had a 50% share in the development of a shopping centre and certain small business premises on Lot 202 on RP184971, in the Parish of Perry. The centre is a limited liability company and as such there has been a legal separation between the parties to the joint arrangement and the joint arrangement itself. There has been no contractual or other arrangement, or circumstances which would indicate that Council, or any of the joint venturers, had rights to the assets or obligations for the liabilities of the centre. The investment was not considered material to the Council. Council has disposed on its 50% share in the Greenbank Commercial Centre (Pty) Ltd effective 25 October 2015. Details of the disposal value and gain on sale are provided below: 3,000 (507) 2,493

Proceeds on disposal Carrying value of the investment Gain on sale of investment 5.

Employee costs 87,737 16,244 12,703 1,623 11,230 129,537

Wages and salaries Leave entitlements Superannuation Councillors' remuneration Other employee related expenses

86,202 16,816 12,386 1,604 10,344 127,352

Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties. Total Council full-time equivalent employees at 30 June 2016 were 1,402 (last year 1,336). 6.

Materials and services 67,102 50,893 13,448 15,795 38,206 185,444

Utilities and water charges Contracted services Other materials and minor contracts Plant hire and running costs Operational services 7.

Finance costs Queensland Treasury Corporation (QTC) interest incurred Account charges Finance costs due to discounting Finance costs incurred Less borrowing costs capitalised Finance costs expensed

STRONG FOUNDATIONS for a bright future

13,229 994 188 14,411 (284) 14,127

71,651 42,342 12,540 16,486 40,106 183,125

11,991 840 787 13,618 (639) 12,979

159

Notes to financial statements 30 June 2016 Note

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

Cash and cash equivalents

Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the statement of financial position as follows: 690 236,405 52,012 289,107 (9,398) 279,709

Cash and bank On-call deposits Short-term deposits Less trust funds Total cash assets

46 204,883 52,039 256,968 (6,870) 250,098

Trust funds Under the Local Government Regulation 2012 s200, a Local Government must establish a trust fund to be used to hold money that is paid to the Local Government to be held in trust or as a deposit on behalf of a third party. Council performs only a custodian role in respect of these funds and they are not considered revenue nor brought to account in the financial statements. 9.

Trade and other receivables Current Rates and utility charges Other trade receivables Less receivables impairment

es and Utility Charg Other debtors

18,408 42,661 61,069 (727) 60,342

20,682 38,814 59,496 (696) 58,800

A prompt payment discount of 5% is offered on rates that are paid by due date provided all arrears rates have also been paid. Interest at 11% per annum compounded daily is charged on all rates and charges which remain unpaid at the end of each rating quarter. No interest is charged on other debtors. Allowances for doubtful debts are recognised depending on the type of debt and risk of non-collection. An ageing by receivables type is provided in note 13. There is no concentration of credit risk for rates and utility charges and other receivables other than by geographical location.

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(4,637) (18,663)

Disposals by sale

96,628

563,125

1,790,383 5,192,749

Balance at 30 June 2016

Carrying value 30 June 2016

Reclassifications

Revaluations

934 (106,170)

Impairment losses allocated to revaluation reserve

Write off/ decommissioning

Opening balance (1 July 2015)

1,822,291

1,685 563,125

Depreciation

Accumulated depreciation

Balance at 30 June 2016

Reclassifications

Revaluations 6,983,132

(3,581)

(1,807)

(9,301) (40,486)

Disposals by sale (80,910)

Write off/ decommissioning

91,693

243,199

566,828

151,506

$'000

$'000 6,870,630

Land

Total

Total additions

Note

Donated assets

Transfers from work-in-progress

Additions

Opening balance (1 July 2015)

Gross carrying amount

10. Property, plant and equipment

251,230

59,077

(1,092)

19,012

(4)

(440)

4,926

36,675

310,307

(9,631)

1,868

(64)

(1,523)

3,402

2,545

857

316,255

$'000

Buildings

93,245

98,093

1,313

(380)

(4,197)

13,515

87,842

191,338

7,699

(645)

(5,971)

25,523

3,641

5,703

16,179

164,732

$'000

Plant and equipment

2,743,034

980,627

(139,117)

(6,951)

46,977

1,079,649

3,723,661

899

(104,804)

(20,381)

117,142

63,979

52,455

708

3,730,805

Roads and drainage infra $'000

1,236,377

539,327

12,315

(1,044)

22,102

505,954

1,775,704

31,673

(2,555)

40,650

22,514

18,136

1,705,936

Water and wastewater Infra $'000

190,138

95,576

(308)

934 3,325

(10,284)

8,198

93,711

285,714

(652)

(3,185)

(16,841)

31,519

1,559

29,960

274,873

Water and wastewater facilities $'000

13,869

17,683

(1,705)

910

18,460

31,552

(2,881)

115

34,318

$'000

Landfill & Quarry

101,731

24,848

(108,914)

133,762

76,883

$'000

Work in progress

Notes to financial statements 30 June 2016

160 FINANCIAL REPORTING

LOGAN CITY COUNCIL

Carrying value 30 June 2015

Balance at 30 June 2015

Revaluations

Write off/ decommissioning

5,048,339

566,828

1,822,291

(22,172)

Disposals by sale -

(5,087) (253,550)

Opening balance (1 July 2014) 91,922

566,828

6,870,630 2,011,178

Depreciation

Accumulated depreciation

Balance at 30 June 2015

Reclassifications

Revaluations

Write off/ decommissioning (10,897)

(30,343)

Disposals by sale 307,618

(8,474)

Total additions

675 (660)

221,926

Donated assets

Increase/ (decrease) in restoration -

675

1,121

577,710

149,475

$'000

$'000 6,379,903

Land

Total

71,330

Transfers from work-in-progress

Additions

Opening balance (1 July 2014)

Gross carrying amount

Note

Property, plant and equipment comparatives at 30 June 2015

10. Property, plant and equipment (continued)

279,580

36,675

2,566

(470)

3,201

31,378

316,255

5,273

(1,301)

3,083

2,866

217

309,200

$'000

Buildings

76,890

87,842

(398)

(5,087)

12,444

80,883

164,732

(48)

(653)

(7,814)

18,513

858

9,170

8,485

154,734

$'000

Plant and equipment

2,651,156

1,079,649

(233,621)

(20,077)

45,639

1,287,708

3,730,805

427,212

(25,384)

101,617

44,510

57,107

3,227,312

$'000

Roads and drainage infra

1,199,982

505,954

(22,080)

(1,005)

21,860

507,179

1,705,936

(107,366)

(2,484)

112,834

25,962

86,872

1,702,952

$'000 Infra

Water and wastewater infra

181,162

93,711

(3,867)

(222)

8,184

89,616

274,873

(16,681)

(521)

16,082

275,993

$'000

Water and wastewater facilities

15,858

18,460

3,452

594

14,414

34,318

10,077

3,329

1,121

2,208

20,912

$'000

Landfill Quarry

76,883

(34,207)

(174,305)

140,098

111,090

$'000

Work in progress

Notes to financial statements 30 June 2016

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Notes to financial statements 30 June 2016 10. Property, plant and equipment (continued) Additions for 2015/16 financial sustainability statement Note

2015/16 financial year

Additions analysis

Total $'000

Total additions

243,199

82,283

2016 $'000

2015 $'000

Note

2014/15 financial year

Renewals $'000

Other $'000

Total $'000

Renewals $'000

Other $'000

160,916

221,926

62,966

158,960

Renewals analysis Renewals Less Plant & Equipment Renewals additions

82,283

62,966

(10,471)

(17,655)

71,812

45,311

Water Reservoir impairment Significant recent investment in trunk water mains and facilities in Logan South has rendered ground level reservoirs with a carrying value of $934,000 at Greenbank and Cedar Vale surplus to requirements. These reservoirs have been fully disconnected from the water network, but their structures remain in place pending a decision on their demolition. There is no expected recoverable value in relation to these assets. Restrictions on title and property, plant and equipment pledged as security Council has entered into a Bill of Mortgage agreement with the Queensland State Department of Communities (the department) as security over grant funding of $1,210,000 provided by the department for the purpose of building a respite centre on land owned by Council at 36 Fawkner Street, Slacks Creek. The Bill of Mortgage would only have effect if Council was to breach certain clauses in the funding agreement (e.g. allowing the facility to be used for a purpose other than that stipulated in the lease) and failed, when required, to remedy the breach. The Bill of Mortgage is held by the State Government over the Logan Central Respite Centre situated at 36 Fawkner Street, Slacks Creek and expires in 2032. 11. Trade and other payables 2016 $â&#x20AC;&#x2122;000 47,199 12,054 7,027 1,418 67,698

2015 $â&#x20AC;&#x2122;000 42,075 12,762 7,379 1,359 63,575

Current Non-current Total borrowings

12,850 235,293 248,143

12,426 247,992 260,418

Market (fair) value at year end

292,334

284,883

Current Creditors and accruals Annual leave Sick leave Other leave entitlements 12.

Borrowings

The Local Government Regulation 2012 requires that a local government prepares and adopts a debt policy for the financial year, including planned borrowings for the current and the next 9 financial years and the period over which the local government plans to repay existing and new borrowings. Council borrows from the Queensland Treasury Corporation (QTC) at a fixed interest rate for periods of between 3 and 20 years. Borrowings are used principally to finance the cost of new capital works and asset acquisitions. Market value represents the value of debt if Council repaid the debt at balance date including interest and penalties classified as level 1 under the fair value hierarchy. Expected final repayment dates vary from 15 March 2021 to 15 March 2035. There have been no defaults or breaches of loan agreements during the financial reporting period. Principal and interest payments are made quarterly in arrears. Council does not have an approved bank guarantee facility, has no credit standby facilities or bank overdrafts, and there were no unused financing facilities available to the Council at the reporting date.

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Notes to financial statements 30 June 2016 13. Financial risk management Logan City Council's activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity risk. Exposure to financial risks is managed in accordance with Council policies on financial risk management, which focus on managing the volatility of financial markets and minimising potential adverse effects on Council performance. Council uses different methods to measure the different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate risk, ageing analysis for credit risk and short term investment strategies to ensure sufficient funds are available to meet short term liquidity requirements. (i) Credit risk Credit risk exposure refers to the situation where Council may incur financial loss as a result of another party to a financial instrument not discharging their obligations. In the case of rate receivables, Council has the power to sell property to recover any defaulted amounts, which protects Council against credit risk. In other cases, Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk including an age analysis of outstanding receivables. Council is exposed to credit risk through its investments with Queensland Treasury Corporation (QTC) and deposits held with other financial institutions. The QTC Cash Fund is an asset management portfolio that invests with a wide variety of high credit rating counterparties. Deposits are capital guaranteed. Other investments are held with highly rated financial institutions and whilst not capital guaranteed, the likelihood of credit failure is remote. By the nature of Council's operations, there is a geographical concentration of risk in Council's area. The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the gross carrying amount of those assets net of any impairment. No collateral is held as security relating to the financial assets held by Council. The following table represents Council's maximum exposure to credit risk: Financial assets Cash and cash equivalents Loans and receivables Equity instruments Joint venture entity Total financial assets

Note

2016 $'000 289,107 60,342 190 349,639

2015 $â&#x20AC;&#x2122;000 256,968 58,800 190 507 316,465

Cash and cash equivalents include on-call deposits in the Queensland Treasury Corporation's (QTC) and Perennial Investment cash funds classified and measured at fair value. Unless otherwise noted, on-call deposits are held with a maximum call term of two days. On-call deposits include trust fund monies of $9,398,000 (last year $6,870,000). No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired and are stated at the carrying amounts as indicated. No receivable amounts have been impaired. The following table represents an analysis of the age of Council's receivables that are either fully performing, past due or impaired at balance date:

Type Rates and utility charges Other trade receivables Total Percentage

Ageing of receivables as at 30 June 2016 - $'000 Past due Fully performing >30 days >60 days >90 days 18,408 38,898 422 254 3,087 38,898 422 254 21,495 64% 1% 35%

Total 18,408 42,661 61,069 Note 9

Type Rates and utility charges Other trade receivables Total Percentage

Ageing of receivables as at 30 June 2015 - $'000 Past due Fully Performing >30 days >60 days >90 days 20,682 35,926 248 62 2,578 35,926 248 62 23,260 61% 39%

Total 20,682 38,814 59,496 Note 9

Rates are levied quarterly in advance and are secured against the property under section 95 of the Local Government Act 2009. Council's receivables impairment at balance date was $727,000 (last year $696,000). Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value.

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Notes to financial statements 30 June 2016 13. Financial risk management (continued) (ii) Liquidity risk Liquidity risk refers to the situation where Council may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation for capital works. Council manages its exposure to liquidity risk by maintaining sufficient cash reserves to cater for unexpected volatility in cash flows and by undertaking maturity analysis. The following table sets out the liquidity risk of financial liabilities held by Council in a format as it might be provided to management. The amounts disclosed in the maturity analysis are provided by the Queensland Treasury Corporation and represent the contractual undiscounted cash flows at balance date: Financial liabilities

Note

QTC borrowings Maturing in 1 year or less Maturing in over 1 to 5 years Maturing in more than 5 years Trade and other payables

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

25,872 103,023 227,216 356,111 67,698 423,809

25,502 101,605 249,373 376,480 63,575 440,055

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table. (iii) Interest rate risk Interest rate risk arises on interest-bearing financial instruments recognised in the statement of financial position (e.g. Council investments and borrowings) and on some financial instruments not recognised in the statement of financial position (e.g. borrowing commitments). Borrowing risk is managed by borrowing only from the QTC and having access to a mix of floating and fixed funding sources such that the desired interest rate exposure can be constructed. Interest rate risk in other areas is minimal. Council does not undertake any hedging of interest rate risk. Council's Treasury function manages cash allocations daily to maximise Council return and minimise risk exposure.

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Notes to financial statements 30 June 2016 14. Fair value measurements (i) Recognised fair value measurements The following table presents Council's assets and liabilities measured and recognised at fair value at balance date. All fair value measurements are recurrent and categorised as either level 2 or level 3 fair value measurements. There have been no transfers between the fair value hierarchical levels described in note 1 during the current financial period. Council has no assets and liabilities measured at fair value on a non-recurring basis. The fair values of financial and non-financial assets that are not traded in an active market are determined using valuation techniques. These valuation techniques maximise the use of observable data where it is available and rely as little as possible on 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 are 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 and where there is no active market for the assets. At 30 June 2016

Note

Level 2 $'000

Level 3 $'000

Total $'000

Non-financial assets Land Buildings - Commercial Buildings - Residential Buildings - Total Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Landfill & quarry At 30 June 2015

10 10 10 10 10 Note

563,125 1,584 1,584 564,709

Level 2 $'000

566,828 1,755 1,755 568,583

10 10 10 10 10

(ii) Disclosed fair values

249,646 249,646 2,743,034 1,236,377 190,138 13,869 4,433,064 Level 3 $'000 277,825 277,825 2,651,156 1,199,982 181,162 15,858 4,325,983

563,125 249,646 1,584 251,230 2,743,034 1,236,377 190,138 13,869 4,997,773 Total $'000 566,828 277,825 1,755 279,580 2,651,156 1,199,982 181,162 15,858 4,894,566

Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred. The fair value of borrowings disclosed in note 12 is provided by the Queensland Treasury Corporation and represents the contractual undiscounted cash flows at balance date. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their shortterm nature. (iii) Valuation techniques used to derive fair values and transfers between levels The values of transfers between the different levels of the fair value hierarchy are disclosed below. Transfers between levels will occur where inputs used in making individual asset and liability fair value measurements no longer satisfy the current level of classification. There have been no changes in valuation techniques used for fair value measurement during the year. Specific valuation techniques used to value Council assets include:

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Notes to financial statements 30 June 2016 14. Fair value measurements (continued) Land 30 June 2016 Land fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a desktop update of the assets effective 30 June 2016. The land values have been indexed to make them current effective 30 June 2016. The valuer has undertaken research to determine any indication of a change in land value by suburb, region, land use, and land size throughout the council area over the 12 months since the previous land valuation. This research was used to determine the amount of indexation applied to land values effective 30 June 2016. 30 June 2015 During the previous comprehensive valuation, undertaken effective 30 June 2015, land assets were valued using a range of approaches. Where there was an active market, the market approach was adopted, where the asset's value was primarily dependent on its income generating capability, the income approach was used. For other types of land, the cost approach was adopted: Level 2 valuation inputs An analysis of available market evidence indicated that the direct comparison approach to the land valuations, which is classified as level 2 under the fair value hierarchy disclosed in Council's policy note, was the most appropriate method for the valuation of land held in freehold title, as well as land used for special purposes or restricted in use under current zoning rules. The valuation reflected specific considerations for: 1) Contaminated sites - several sites within the valuation were found to be or potentially be contaminated by activities carried out on these sites by the council. As these valuations are to represent market value (the current replacement cost of the land), the current market value would be to acquire "non-contaminated" land and such any instances or possibilities of contamination have been disregarded within this valuation. 2) Zoning - A number of parcels of land owned by the council have been given zonings that relate to Public Open Space, Conservation Areas, and similar locality specific zonings. Council has placed these zonings on the properties, which predominantly only apply to council owned land, are not representative of surrounding land uses and would not be considered normal in an open market situation. As such, the valuer analysed and investigated areas surrounding the subject land and determined what would the highest and best use for the land and has valued the land on this basis. During the 30 June 2015 valuation, sales prices of comparable land sites in close proximity were determined and then adjusted for differences in key attributes such as property size. The most significant inputs into this valuation approach were price per square metre. Level 3 valuation inputs For land assets, such as some parks and reserves, for which there was no observable market evidence of sales prices for comparable sites in close proximity, land assets were valued using the level 3 valuation input hierarchy using the professional judgement of the valuer, who adjusted the price per square metre of sales from sites not in close proximity, which provided only a low level of comparability. Buildings Buildings fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a desktop update of the assets effective 30 June 2016. The desktop valuation adjusted values from the previous comprehensive valuation, undertaken effective 30 June 2015, by reference to indexation to make them current effective 30 June 2016. The indexation percentage was derived from reference to actual costs where details have been provided of recent construction, costing guides issued by the Australian Institute of Quantity Surveyors, Rawlinson's (Australian Construction Handbook), Construction Data from the Australian Bureau of Statistics, and the valuer's own internal market research and costings. As this was a desktop valuation, the valuer did not physically inspect any assets. The assets were inspected as part of the 30 June 2015 valuation. For the 30 June 2016 valuation, any changes in physical characteristics or condition, including impairment, were provided as part of the valuation input provided by the council. During the 30 June 2015 valuation, the gross current value of the assets was assessed on the basis of replacement of a new asset having similar service potential including allowances for preliminaries and professional fees. Gross current value costings were derived from reference to costing guides issued by the Australian Institute of Quantity Surveyors, Rawlinson's (Australian Construction Handbook), and the valuer's own internal market research and costings.

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Notes to financial statements 30 June 2016 14. Fair value measurements (continued) During the full valuation undertaken effective 30 June 2015, where there was no depth of market, fair value was determined based on the gross current value less accumulated depreciation calculated to reflect the consumed or expired service potential of the asset. The depreciation of the assets was carried out on a component level by conducting a condition assessment on each of the various components of each building. Each building component was individually assessed and depreciated using a straightline depreciation methodology. The total fair value of the asset was the accumulation of the individually depreciated building components. Where a depth of market could be identified, the valuer assessed the fair value of the assets on the basis of the best estimate of the price reasonably obtainable in the market at the date of valuation. In this instances, the fair value of the building was the difference between the market value of the asset, as a whole, less the market value of the land component. Level 2 valuation inputs Level 2 valuation inputs were used to determine the fair value of a range of properties including the bulk of residential and commercial properties. The residential buildings fair value was derived from the sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant inputs into this valuation approach were price per square metre. Commercial buildings were generally derived using a combination of a sales direct comparison approach and a capitalisation of income approach. Fair value was derived from sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant inputs into this valuation approach were rental yields and price per square metre. Level 3 valuation inputs Under the level 3 valuation approach, the cost to replace the asset was calculated and then adjusted to take account of an accumulated depreciation. The valuer disaggregated the building into different components and for each component determined a value based on the inter-relationship between factors such as asset condition, legal and commercial obsolescence, and the determination of key depreciation-related assumptions such as residual value and the pattern of consumption of the future economic benefit. Infrastructure assets Due to their specialist nature there is no active market for Council infrastructure assets and fair value is determined using a valuation technique. At 30 June 2016, water and wastewater infrastructure assets were valued using a discounted cash flow (DCF) valuation technique, while all other infrastructure assets were valued using a current replacement cost (CRC) valuation technique. Full details are provided under the infrastructure categories below. For CRC valuations, fair value was the asset's current replacement cost less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. Council first determined the gross cost of replacing the full service potential of the asset and then adjusted this amount to take account of the expired service potential of the asset. Current replacement cost was measured by reference to the lowest cost at which the gross future economic benefits of the asset could currently be obtained in the normal course of business. Where existing assets were over designed, had excess capacity, or were redundant, an adjustment was made so that the resulting valuation reflected the cost of replacing the existing economic benefits based on an efficient set of modern equivalent assets to achieve the required level of service output within the council's planning horizon. The unit rates (labour and materials) and quantities applied to determine the CRC of an asset or asset component were based on a "Greenfield" assumption meaning that the CRC was determined as the full cost of replacement with a new asset including components that may not need to be replaced, such as earthworks. Fair value was determined using methods relevant to the asset class as described under individual asset categories below.

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Notes to financial statements 30 June 2016 14. Fair value measurements (continued) Roads Roads and associated infrastructure fair values were determined by Council asset management officers effective 30 June 2016. Current replacement cost (CRC) Council categorises its road infrastructure into urban and rural roads and further sub-categorises these into sealed and unsealed roads. Urban roads are managed in segments of around 200m, while rural roads are managed in segments up to 1km in length. All road segments are then componentised into formation, pavement and seal (where applicable). Council assumes that environmental factors such as soil type, climate and topography are consistent across each segment. Council also assumes each segment is designed and constructed to a specific pavement design based on traffic volumes, predicted vehicle type usage and material types. The vast majority of new roads built within Logan are through subdivisional work. These roads are gifted to Council by the developer, so while the pavement design is known, the construction cost of these roads is not known to Council. CRC was calculated by reference to asset linear and area specifications, whether the segment is in a Rural or Urban environment, the road hierarchy and surface type of the segment. The combination of these factors is mapped to a suite of LG stereotypes developed by the Roads Alliance Valuation Project (RAVP). The RAVP stereotypes are based on the Queensland Department of Transport and Main Roads (TMR) Work Breakdown Schedules (WBS) that consider Terrain, Environment, Soil Type and Region. The RAVP project analysed the TMR data and developed stereotypes relevant for Local Government based on the TMR information and assumptions. A full valuation of road infrastructure is undertaken every year by Council officers. CRC at 30 June 2016 was determined by Council engineers using the Roads Alliance Valuation Project schedule of unit rates. As planned Council continues to align the rates with the Roads Alliance Valuation Project rates annually. Accumulated depreciation In determining the level of accumulated depreciation, roads were disaggregated into significant components which exhibited different useful lives. A consumption assessment was undertaken based on four Austroads pavement health indices, each expressed as a percentage and incorporated into the World Bank's HDM deterioration model to provide an estimate of current health, the proportion of health remaining, and the remaining useful lives of assets. The four health indices used were: 1) The Pavement Health Roughness Index (PHNI), which is a function of both the surface roughness and of lane average annual daily traffic (AADT). Perfect health (as indicated by roughness) is retained for all traffic levels up to a roughness of 40 NAASRA (National Association of Australian State Road Authorities) per roughness counts per kilometre. 2) The Pavement Health Rutting Index (PHRI), which is a function of mean rut depth, annual rainfall and lane AADT. Perfect health (as indicated by rutting) is retained for all levels of traffic and rainfall until mean rut depth is 2mm. 3) The Surface Health Cracking Index (SHCI), which is a function of the percentage area of cracking, the annual rainfall and the lane-AADT. A larger percentage cracking and annual rainfall combined with high traffic levels causes a migration of base and sub base material resulting in damage to the underlying pavement from the ingress of water. 4) The Surface Health Texture Index (SHTI), which is a function of the percentage of road affected by texture distresses, rainfall and lane AADT. The index covers surface distresses caused by ravelling and stripping, leading to the loss of stone, which affects the waterproofing provided by the road surface

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Notes to financial statements 30 June 2016 14. Fair value measurements (continued) Bridges Current replacement cost (CRC) A full valuation of bridge assets was undertaken by independent valuers, Jeff Roorda and Associates (JRA) effective 1 July 2015. This was primarily undertaken to remove the 40% residual value. Each bridge was assessed individually, with the valuation varying according to the material type used for construction, the deck area, condition and size. As part of the revaluation JRA also provided unit rates as at 30 June 2016. Accumulated depreciation In determining the level of accumulated depreciation, remaining useful lives were calculated based on condition assessments. The condition assessments were made using a seven point scale with 0 being the lowest and 6 being the highest. A 0 condition assessment indicates an asset with a very high level of remaining service potential. A 6 condition assessment indicates an asset has reached its end of life. Drainage Current replacement cost (CRC) A full valuation of drainage infrastructure was undertaken by independent valuers, Jeff Roorda and Associates (JRA), effective 30 June 2015. The revaluation process reviewed the currency and accuracy of the asset register and updated unit rates and useful lives using evidenced-based techniques and in accordance with Australian Accounting Standards. JRA revalued the assets against the material revaluation categories of pipes, pits, channels, box culverts and headwalls. Asset values have been reduced, primarily due to a review of unit costs. All asset categories are further subdivided into material components and separate useful lives applied where relevant. Major parts of the 30 June 2015 revaluation were: (1) A review of unit costs - JRA applied a full set of first principles based unit costs linked to the latest edition of Rawlinsons cost estimating guide. JRA rates have been cross-checked and found to be materially comparable with the drainage cost matrix prepared in 2014 by aQuenta consulting for the LGAQ roads alliance, (2) Adjustment to components and useful lives to reflect current service standards and renewal practice, pits were separated into a short-life component, the upper section of the pit that requires partial renewal and a long-life component, the concrete submerged chamber that does not require renewal, and (3) Large diameter pipes (>600mm diameter) have been split into pipe and trench components to reflect the lower cost of pipe relining for large pipes in line with Council's modern equivalent renewal practice. At 30 June 2016, unit rates were increased in line with the 0.47% increase in the Queensland Construction and Bridges index. Accumulated depreciation As part of the revaluation process, Council firstly reviewed and defined its current and projected levels of service. Useful lives were reassessed based on the current interpretation of the actual life expected from the assets based on the current capital commitment by the Council and the ongoing maintenance regime and intervention levels. This ensured that useful lives were reflective of the period of time that the asset would be in service. Remaining useful life was determined based on asset condition, where available, or age, where no condition data was available. These lives were revisited as part of the annual review and it was determined that they remained appropriate so were left unchanged. As it is unlikely that any material value will be recoverable from Council's infrastructure assets when they reach the end of their useful lives, no allowance has been made for residual values to be applied to these assets. Waste landfill cells Current replacement cost (CRC) Waste landfill cells fair values were determined by Council engineers effective 30 June 2016. CRC was calculated by reference to landfill cell area and volume specifications, estimated labour and material inputs, services costs, and overhead allocations. Material and services costs were determined by reference to existing supplier contracts and labour costs by reference to Council's EBA. Accumulated depreciation Fair value was determined through assessment of the remaining air space for each landfill cell, which was also used to determine percentage cell capacity used in the year. Waste landfill valuations are included in level 3.

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Notes to financial statements 30 June 2016 14. Fair value measurements (continued) Water and wastewater Council's water business is treated as a single cash-generating unit for asset valuation purposes. Council's water and wastewater infrastructure assets were valued effective 30 June 2016 using a discounted cash flow (DCF) income approach. The DCF approach estimated the price at which an orderly transaction to sell the assets would take place between market participants at the measurement date under current market conditions. The valuation was based on cash flows and efficiencies that could reasonably be expected to be earned by a market participant under current market conditions, and is the potential exit price that could be expected at the measurement date. In using the DCF model, land, buildings, plant, equipment and work-in-progress asset values were deducted from the DCF valuations to determine water and wastewater infrastructure and facilities carrying values. Land and buildings assets values were determined independently at market value or using a current replacement cost where there is no active market, while plant and equipment and work in progress assets are valued at cost. For DCF purposes, post-tax nominal cash flows were estimated for a period of 10 years and the Gordon growth model used to determine cash flows from year 11 to "in perpetuity" (terminal value). Cash flows were discounted to present value using a calculated weighted average cost of capital (WACC) determined using an assumed 60% debt and 40% equity capital structure. Cash flow projections were effectively earnings before interest and tax (EBIT), instead of earnings before interest, taxation, depreciation and amortisation (EBITDA) as it is necessary for capital expenditure (CAPEX) to equal depreciation when applying a perpetuity model. Changes in working capital were considered to be a cash flow requirement. (iv) Changes in level 3 assets The following table presents the changes in level 3 assets for the years ended 30 June 2015 and 30 June 2016: Buildings

Closing balance 30 June 2014 Transfers into level 3 Additions Disposals Reclassifications Fair value increments/ (decrements) Asset depreciation and write off expenditure Closing balance 30 June 2015 Transfers into level 3 Additions Disposals Reclassifications Fair value increments/ (decrements) Asset depreciation and write off expenditure Closing balance 30 June 2016

$'000 275,801 3,083 -

Roads and drainage infra $'000 1,939,604 101,617 48

Water and wastewater infra $'000 1,195,773 112,834 -

Water and wastewater facilities $'000 186,377 16,082 -

2,718

660,833

(85,286)

(3,777) 277,825

(50,946) 2,651,156

3,401 (955) (8,537)

Landfill & Quarry

Total

$'000 6,498 3,329 -

$'000 3,604,053 236,945 48

(12,814)

6,625

572,076

(23,339) 1,199,982

(8,483) 181,162

(594) 15,858

(87,139) 4,325,983

117,142 830

40,650 -

31,519 (344)

115 (18)

192,827 (955) (8,069)

(17,184)

34,313

19,358

(7,444)

(1,176)

27,867

(4,904) 249,646

(60,407) 2,743,034

(23,613) 1,236,377

(14,755) 190,138

(910) 13,869

(104,589) 4,433,064

(v) Uncertainty The valuation techniques used in the determination of fair values maximise the use of observable data where it is available, are based on past actual outcomes and rely as little as possible on entity specific estimates. Where estimates are used, these represent the most probable outcome in management's judgement and are subject to annual review against actual outcomes in subsequent periods. The disclosure of valuation estimates is designed to provide users with an insight into the judgements that management has made in the determination of fair values. (vi) Valuation processes Council's valuation policies and procedures are set by the City Treasury Committee of the executive management team, which comprises the Deputy CEO: Organisational Services and Finance Manager. They are reviewed annually taking into consideration an analysis of movements in fair value and other relevant information. Council's current policy for the valuation of property, plant and equipment (recurring fair value measurements) is presented in note 1(g).

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Notes to financial statements 30 June 2016 15. Provisions Note Employee benefits Restoration provisions Third party claims Current Non-current

2016 $'000 22,197 6,084 816 29,097

2015 $â&#x20AC;&#x2122;000 21,485 6,048 375 27,908

19,457 9,640 29,097

18,289 9,619 27,908

1.88% 2.67%

2.69% 2.70%

Average discount rates used in estimating provisions Employee benefits Restoration provisions (i) Employee benefits The provision for employee benefits represents vested long service leave entitlements accrued on behalf of employees. Council estimates the probability, amount and timing of leave payments based on Council's leave policy stipulations, current pay levels, and leave settlement trends to determine expected future costs, which are then discounted to present value at a discount factor based on Commonwealth bond yields rates over the relevant period. (ii) Restoration provisions Council has a legal obligation to restore quarry sites used in Council operations and has prepared site management and post closure plans to deal with the filling and future use of quarry sites. The provision is the present value of the estimated cost of restoring the quarry site to a useable state at the end of its useful life. Council also holds an Environmental Protection Agency licence to operate a number of landfills. The licence includes a legal obligation to restore any affected area. Standard landfill practice is to progressively level the site through use of top soil and then re-grass the affected area. Council estimates and discounts expected future costs to restore landfill cells to present value at a discount factor based on Commonwealth bond yields rates over the relevant period. (iii) Third party claims Council raises provisions based on the expected amount and timing of valid third party compensation claims. Where compensation claims are subject to adjudication through the courts or there is uncertainty in terms of the validity or amount of a claim, amounts may be disclosed as a contingent liability. (iv) Movements on provisions

Carrying amount at 30 June 2014 Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount Carrying amount at 30 June 2015 Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount Carrying amount at 30 June 2016

Employee benefits $'000 19,565

Restoration provisions $'000 5,493

Third party claims $'000 608

Total provisions $'000 25,666

2,477 -

1,170 -

603 (149)

4,250 (149)

(1,238)

(721)

(687)

(2,646)

681

106

787

21,485

6,048

375

27,908

2,610

634

3,251

(1,967)

(90) -

(193)

(90) (2,160)

119

188

22,197

6,084

816

29,097

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Notes to financial statements 30 June 2016 16. Asset revaluation surplus Movements in the asset revaluation surplus were as follows: Balance at beginning of period

2,634,295

2,072,404

Net adjustment to capital non-current assets at end of period to reflect a change in fair value: Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Landfill & Quarry Asset impairment: Water and wastewater facilities Change in value of future rehabilitation cost: Landfill & Quarry Balance at the reporting date

(3,581) (17,144) 34,313 19,358 (6,510) (1,176) 25,260

(10,897) 2,707 660,833 (85,286) (12,814) 6,625 561,168

(934) (934)

(8)

723

2,658,613

2,634,295

309,905 101,541 2,161,691 77,449 8,027 2,658,613

313,486 118,685 2,127,378 65,535 9,211 2,634,295

Closing revaluation surpluses by asset class: Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure & facilities Landfill & Quarry

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Notes to financial statements 30 June 2016 Note 17.

Cash flow information

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

Reconciliation of net result attributable to Council to net cash flow from operating activities Net result attributable to Council

156,197

140,572

98,324 111 (14) 21,823 188

93,583 (270) 25 8,171 331 49 841

(900) 2,466 (91,693) (91)

(728) 25,198 (71,330) (349) (4) -

Add: non-cash expenses: Depreciation Bad and doubtful debts Stock adjustment Capital expenses Carbon tax permits Increase in restoration provision Borrowing costs accrued/ due to discounting Less: non-cash revenues: Interest revenue accrued Cost of goods sold Donations of assets (Gain)/ loss on sale of property, plant and equipment Share of joint venture entity comprehensive income (Gain)/ loss on sale of joint venture investment Reduction in restoration provision

(2,493) (90)

Less: Capital contributions, grants and subsidies classified as cash inflows from investing activities: Capital contributions Capital grants and subsidies

(40,477) (12,564)

(39,731) (6,253)

Decrease/ (increase) in operating assets net of non-cash revenues and expenses and non-cash amalgamation transactions: (753) 214 (833)

Receivables Inventories Prepayments

3,050 411 (78)

Increase/ (decrease) in operating liabilities net of non-cash revenues and expenses and non-cash amalgamation transactions: Payables Provisions Other liabilities Net Cash from operating activities

4,130 1,081 (1,134)

1,605 (9,186) 1,008

133,492

146,915

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Notes to financial statements 30 June 2016 Note

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

18. Commitments for expenditure (a)

Operating lease commitments No later than 1 year Later than 1 year but not later than 5 years Later than 5 years

(b)

1,016 1,460 2 2,478

685 1,824 10 2,519

Capital commitments At the reporting date the local government had entered into contracts for the following capital expenditures of a material nature: Plant, equipment and infrastructure assets These expenditures are due for payment: Not later than one year Later than 1 year but not later than 5 years Later than 5 years

(c)

54,446 54,446

61,407 61,407

54,446 54,446

61,407 61,407

Contractual commitments Contractual commitments at balance date not recognised in the financial statements are as follows: Waste contracts Waste and recyclables collection Recyclables processing Green waste management Operational contracts Maintenance Transport Water Other These expenditures are due for payment: Not later than one year Later than 1 year but not later than 5 years Later than 5 years

269 34 69

280 36 107

115 2,326 1,864 4,677

491 30 3,816 5,046 9,806

4,677 4,677

9,806 9,806

Council has entered into a contract for an eight year period ending in July 2019 for waste and recyclable collection services. Council is liable only for services as provided.

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Notes to financial statements 30 June 2016 Note 19. Contingent liabilities

2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

Details and estimates of maximum amounts of contingent liabilities are as follows: 934 919 2,460 4,313

Liability claims Infrastructure offsets Local Government Workcare maximum exposure Liability claims

1,053 53 2,775 3,881

Council is a defendant in a number of claims that arise as a result of the operations of council and its ownership of public assets. All liability claims are subject to review and are only provided for when genuine and not contingent on a future event. Liability and insurance claims not provided for are disclosed as contingent liabilities. Information in respect of individual claims has not been disclosed on the basis that Council considers such disclosures would seriously prejudice the outcome of these claims. Infrastructure offsets Council enters into infrastructure agreements with developers where trunk infrastructure is to be contributed to Council in lieu of charging infrastructure charges. Where the value of infrastructure provided exceeds the value of the infrastructure charges required, a refund may arise. Any such refund is contingent on the developer successfully completing the work and will be disclosed as a contingent liability up until the point of Council approval of the development. Once the development has been approved any remaining excess is recognised as an actual liability. Council has reassessed the basis of contingent liability disclosures during the 2015/16 financial year in order that Council's disclosures are in line with Local Government industry practice. Local Government Workcare Logan City Council is a member of Local Government Workcare (LGW) scheme, which is a self-insurance agreement between participating local governments, local government controlled entities and the Local Government Association of Queensland (the LGAQ). The scheme provides workers' compensation cover to its members under a joint self-insurance licence. Under this scheme, Council has provided a proportionate bank guarantee to cover any bad debts which may remain should the self-insurance license be cancelled because of insufficient funds being available to cover outstanding liabilities. Only LGW may call on any part of the guarantee were the above circumstances to arise. The latest audited financial statements for LGW are as at 30 June 2015 and show accumulated member funds (equity) of $33,510,366 (2014: $27,397,130) meaning that the likelihood of a claim against Council's guarantee is remote. Local Government Mutual liability self-insurance pool Logan City Council is a member of the local government mutual liability self-insurance pool, Local Government Mutual (LGM) Queensland. LGM provides claims and risk management services, insurance placement, fund management and consulting services to collectively exercise control over and manage the legal liability exposures confronting local government. In the event of the pool being wound up or if 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. The latest audited financial statements for LGM Queensland are as at 30 June 2015 and show accumulated member funds (equity) of $41,971,699 (2014: $26,013,447) meaning that the likelihood of a claim is remote. 20. Contingent assets In January 2013, the Logan City Council region was subject to flooding as a result of Cyclone Oswald an event that has been recognised by the Queensland Government as a disaster and subject to disaster relief funding. The table below provides a summary of the total value of disaster relief claims submitted, approved and contingent on future approval by the Queensland Reconstruction Authority: -

Total claims amounts Claims approved Claims contingent on future approval

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5,885 (4,754) 1,311

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Notes to financial statements 30 June 2016 21. Superannuation

Note

2016

2015

Local Government Superannuation Scheme The Council contributes to the Local Government Superannuation Scheme (Qld) (the scheme). The scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits. The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation. The scheme has three elements referred to as the City Defined Benefits Fund (CDBF) which covers former members of the City Super Defined Benefits Fund, the Regional Defined Benefits Fund (RDBF) which covers defined benefit fund members working for regional local governments and the Accumulation Benefits Fund (ABF). Council does not have any employees who are members of the CDBF and therefore is not exposed to the obligations, assets or costs associated with this fund. The ABF is a defined contribution scheme as defined in AASB 119. Council has no liability to or interest in the ABF other than the payment of the statutory contributions as required by the Local Government Act 2009. The RDBF is a defined benefit plan as defined in AASB119. The Council is not able to account for the RDBF as a defined benefit plan in accordance with AASB119 because the scheme is unable to account to the Council for its proportionate share of the defined benefit obligation, plan assets and costs. The funding policy adopted in respect of the RDBF is directed at ensuring that the benefits accruing to members and beneficiaries are fully funded as they fall due. There are currently 69 entities contributing to the RDBF plan and any changes in contribution rates would apply equally to all 69 entities. Council has made 5.1% of the total contributions to the plan for the 2014/15 financial year. To ensure the ongoing solvency of the RDBF, the scheme's trustee can vary the rate of contributions from relevant local government employers subject to advice from the scheme's actuary - normally when the assets of the RDBF are insufficient to meet members' benefits. As at the reporting date, no changes had 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. Any amount by which the fund is over or under funded would only affect future benefits and contributions to the RDBF, and is not an asset or liability of the Council. Accordingly there is no recognition in the financial statements of any over or under funding of the scheme. As at reporting date the assets of the scheme are sufficient to meet the vested benefits. The most recent actuarial assessment of the scheme was undertaken as at 1 July 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." In the 2015 actuary report the actuary has recommended no change to the employer contribution levels at this time. The next actuarial investigation will be made as at 1 July 2018. Superannuation contributions The amount of superannuation contributions paid by Logan City Council during the reporting period was $14,508,000 (last year: $12,667,000) in respect of employees and $181,000 (last year: $181,000) in respect of elected members.

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Notes to financial statements 30 June 2016 22. Statement of activities to which the code of competitive conduct applies National competition policy note Logan City Council applies the code of competitive conduct to the following prescribed business activities: Plant fleet services workshop and Plant fleet services fleet. The competitive code of conduct 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 costs which would not have been incurred if the primary objective of the activities was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO's by the Council. Activity statements are for activities subject to the competitive code of conduct • •

Logan Water Revenue for services provided to the Council Revenue for services provided to external clients Less expenditure (excluding return on capital) Surplus/ (deficit)

$'000

Logan Waste $'000

3,269 235,895 239,164 (179,528) 59,636

Community service obligations Cleansing remissions to eligible pensioners Water, sewerage and cleansing remissions to eligible community organisations Household hazardous waste Free tipping for community organisations Animal removal Natural disasters/ emergencies Total

530 34,122 34,652 (30,563) 4,089

Workshop $'000 3,667 456 4,123 (4,214) (91) Logan Water $'000

979 979

Fleet Internal $'000 9,700 627 10,327 (7,728) 2,599

Fleet External $'000 9,893 9,893 (9,171) 722

Logan Waste $'000 229 18 53 32 120 452

23. External audit fee The Auditor-General of Queensland is the auditor of Logan City Council. External audit fees of $199,000 (last year $221,000) were incurred in relation to the audit of the financial statements. There are no non-audit fees included in this amount.

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FINANCIAL REPORTING

Management certificate 30 June 2016

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Audit report 30 June 2016

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Audit report 30 June 2016

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Audit report 30 June 2016

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Audit report 30 June 2016

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Audit report 30 June 2016

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FINANCIAL REPORTING

Audit report 30 June 2016

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Audit report 30 June 2016

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APPENDICES

Appendices This section includes background information relevant to the main report, indexes and contact information for our organisation and elected representatives.

Strong foundations for a bright future: A rare international volleyball match between Australia and China, hosted by Logan City Council at the Logan Metro Indoor Sports Centre.

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APPENDICES

Expenses Reimbursement Policy CP ID: OS Date adopted: 18/11/2014 File no: 888737-1 Minute number: 344/2014

POLICY TITLE

POLICY STATEMENT:

Expenses Reimbursement

The following are the arrangements in place for expenses reimbursement for the councillors of Logan City Council.

STREAM

1. Conferences and seminars

Organisational Services

BRANCH

Where councillors have received approval to attend a conference, seminar or workshop, Council will make payment of behalf of the councillor and/or reimburse any reasonable expenses incurred by the councillor associated with their attendance.

Governance

POLICY OBJECTIVE To meet the requirements of section 250 (requirement to adopt expenses reimbursement policy or amendment) of the Local Government Regulation 2012 that requires Council to have an expenses reimbursement policy for its councillors.

POLICY SCOPE This policy is the Council's expenses reimbursement policy as required by the Local Government Regulation 2012 and is consistent with section 4 (Local government principles underpin this Act) and section 104 (financial management systems) contained in the Local Government Act 2009. This policy excludes councillors cash remuneration which is determined by the Local Government Remuneration and Discipline Tribunal.

DEFINITIONS Term

Definition

Council business

Business conducted on behalf of Council and/or approved by Council. Council business includes attending an event or function to perform official duties or as an official Council representative at an industry, corporate or civic event.

Councillors

Includes the Mayor and 12 councillors of the Logan City Council.

Further information is provided for in the following Council adopted policies: (a) corporate travel and accommodation (b) councillor conferences and professional development (c) conference and seminar attendance. 2. Training and professional development Each year, Council will make an allocation for councillors to undertake professional development courses relevant to their role as a local government councillor. 3. Civic allowance Council currently has an existing policy titled ‘Mayor's and Councillors' Civic Allowance’. This policy allows the reimbursement of civic related expenses while a Councillor is conducting Council business. Further information is contained in the policy titled ‘Mayor's and Councillors' Civic Allowance’. 4. Daily meals and refreshments Councillors have access to meals and refreshments provided by Council's canteen provider at no cost. 5. Facilities All facilities provided to councillors remain the property of Council. Such facilities must be accounted for when a councillor leaves office and councillors are expected to responsibly look after all publicly funded facilities and assets provided to them. The following are the facilities that council considers necessary for councillors to undertake their role as local government councillors: (a) office accommodation, office based equipment and executive support (b) Office space and access to meeting rooms

STRONG FOUNDATIONS for a bright future

Council provides an office, office furniture and access to corporate meeting rooms and kitchenettes for Council business.

189

Council provides permanent executive and administration support staff to the Mayor and councillors for Council business purposes only.

(d) Computer and internet

Councillors are provided with a desktop computer with internet access for Council business use.

6. Safety equipment and Council uniforms Councillors will be provided with personal protective equipment when required for a relevant site inspection. Councillors will be provided a uniform allowance of $165 per annum for any Council approved uniforms. Councillors will be provided with a name badge.

(e) Smart phones and tablets

7. Vehicles

Councillors are provided with a council landline telephone in the Council administration centre and a smart phone.

Councillors are provided with a Council owned and maintained vehicle for full and unrestricted use.

Smart phones are provided to assist councillors undertaken their roles and responsibilities under the Local Government Act 2009, however Council’s smart phone plans are capped for calls and data and any call or data usage over and above the allocated limit may be required to be reimbursed by the councillor.

Fuel cards and an E-toll transponder are also provided. Further terms and conditions are provided for in the vehicle lease agreement which outlines the councillors obligations in terms of ensuring the vehicle is appropriately used and maintained.

Tablets are available to the councillor in accordance with the management directive titled 'Portable Personal Computing Devices'.

Individual car parking allocations are provided at the City administration centre for councillor vehicles.

(f) Fax and/or scanner

Councillors are provided with access to a facsimile and scanner for business use.

(g) Printer, photocopier, paper shredder

Councillors are provided access to a printer, photocopier and paper shredder for business use.

(i) pens

Council may decide to provide legal indemnity, pursuant to section 107 (Insurance) of the Local Government Act 2009, to cover costs incurred through any inquiry, investigation, hearing or legal proceedings into the conduct of a councillor, or arising out of, or in connection with the councillor’s performance of their civic functions.

(ii) paper

9. Superannuation

(iii) note paper

As Council has resolved to be treated as an "eligible governing body" in accordance with the Taxation and Administration Act 1953, councillors can be recognised as employees for superannuation purposes and the superannuation guarantee contributions of 12% can be paid.

(h) Stationery

Councillors are provided with stationery for Council business purposes only, including, but not limited to:

(iv) letterhead (v) business cards (vi) envelopes (vii) ‘With Compliments’ slips (viii) councillor magnetic decals for their Council vehicle

Council stationery is not to be converted or modified in any way without approval of the Chief Executive Officer and can only be used for carrying out the functions of the role of councillor.

(i) Publications and newspapers

Councillors are provided with copies of relevant legislation, daily newspapers, books and journals considered necessary for undertaking their duties.

(j) Other administrative necessities

Subject to Council approval and inclusion in this policy, councillors may be provided with any other administrative necessities to meet the business of Council.

Bulk mail arrangements are managed under the bulk mail guidelines approved from time to time by the City Leadership and Cabinet (CLC) and issued by the Governance Manager.

Council will provide councillors a copy of the electoral roll for their division in hard copy or electronically. The Governance Manager will provide six (6) monthly updates or as necessary. The Mayor is provided with the entire city voters roll.

8. Insurance cover and legal costs Councillors may be covered under Council's insurance policies while they are undertaking Council business. Insurance cover will be taken out for public liability, professional indemnity, Councillor’s liability, personal accident, group salary continuance (where eligible), international and domestic travel insurance.

Blue Cards will be arranged upon request of the councillor.

RELATED POLICIES/LEGISLATION/ OTHER DOCUMENTS: Doc ID

Document Type

Document Name

6290313

Policy

Corporate Travel and Accommodation

6288459

Policy

Councillor Conferences and Professional Development

6577300

Policy

Conference and Seminar Attendance

5985245

Policy

Mayor’s & Councillor’s Civic Allowance

7080047

Management Directive

Portable Personal Computing Devices

6694453

Administration

Vehicle Leasing Scheme Terms and Conditions

8248376

Management Directive

Vehicle Leasing Scheme

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APPENDICES

Legislative index LOCAL GOVERNMENT ACT 2009 Requirement Identifying beneficial enterprises

Chapter

Section

Page

N/A (Logan City Council did not conduct any beneficial enterprises during the 2015/2016 financial year).

A local government’s annual report for each financial year must contain a list of all the beneficial enterprises that the local government conducted during the financial year. Identifying significant business activities A local government’s annual report for each financial year must— (a) contain a list of all the business activities that the local government conducted during the financial year; and

154–155

(b) identify the business activities that are significant business activities; and

118, 121, 154–155

(c) state whether or not the competitive neutrality principle was applied to the significant business activities, and if the principle was not applied, the reason why it was not applied; and

118, 154

(d) state whether any of the significant business activities were not conducted in the preceding financial year, i.e. whether there are any new significant business activities.

155

Annual report must detail remuneration

201

(1) The annual report of a local government must state— (a) the total of all remuneration packages that are payable (in the year to which the annual report relates) to the senior management of the local government; and

(b) the number of employees in senior management who are being paid each band of remuneration

(2) The senior management, of a local government, consists of the chief executive officer and all senior executive employees of the local government.

(3) Each band of remuneration is an increment of $100,000.

(4) To remove any doubt, it is declared that nothing in this section requires the exact salary of any employee in senior management to be separately stated in the annual report.

STRONG FOUNDATIONS for a bright future

191

LOCAL GOVERNMENT REGULATION 2012 Requirement Financial sustainability statements

Chapter

Section

178

Page

181–185

(1) A local government’s current-year financial sustainability statement must state the relevant measures of financial sustainability for the financial year to which the statement relates. (2) A local government’s long-term financial sustainability statement must state— (a) the relevant measures of financial sustainability for the 9 financial years following the year to which the statement relates; and

181

(b) an explanation of the local government’s financial management strategy that is consistent with the long-term financial forecast.

116

Community financial report

179

125

(1) A local government must prepare a community financial report for each financial year. (2) The community financial report for a financial year must— (a) contain a summary and an analysis of the local government’s financial performance and position for the financial year; and

127–128, 136

(b) be consistent with the general purpose financial statement for the financial year; and

125

(d) be written in a way that can be easily understood by the community.

125

Financial statements The annual report for a financial year must contain—

183

(a) the general purpose financial statement for the financial year, audited by the auditor-general; and

179–180

(b) the current-year financial sustainability statement for the financial year, audited by the auditor-general; and

184–185

182

(d) the auditor-general’s audit reports about the general purpose financial statement and the current-year financial sustainability statement. Community financial report

179–180, 184–185 5

184

The annual report for a financial year must contain the community financial report for the financial year. Administrative action complaints

125–136 5

187

(1) The annual report for a financial year must contain— (a) a statement about the local government’s commitment to dealing fairly with administrative action complaints; and

119

(b) a statement about how the local government has implemented its complaints management process, including an assessment of the local government’s performance in resolving complaints under the process.

119

(2) The annual report must also contain particulars of— 119

(a) the number of the following during the financial year— (i) administrative action complaints made to the local government;

119

(ii) administrative action complaints resolved by the local government under the complaints management process;

119

(iii) administrative action complaints not resolved by the local government under the complaints management process; and

119

(b) the number of administrative action complaints under paragraph (a)(iii) that were made in a previous financial year.

119

LOGAN CITY COUNCIL

ANNUAL REPORT 2015/2016

192

APPENDICES

Requirement Overseas travel

Chapter

Section

Page

188

(1) The annual report for a financial year must contain the following information about any overseas travel made by a councillor or local government employee in an official capacity during the financial year— (a) for a councillor—the name of the councillor;

121

(b) for a local government employee—the name of, and position held by, the local government employee;

121

(d) the purpose of the overseas travel;

121

(e) the cost of the overseas travel;

121

(2) The annual report may also contain any other information about the overseas travel the local government considers relevant. Expenditure on grants to community organisations

121 5

189

The annual report for a financial year must contain a summary of— (a) the local government’s expenditure for the financial year on grants to community organisations; and

121

(b) expenditure from each councillor’s discretionary fund, including—

121

(i) the name of each community organisation to which an amount was allocated from the fund; and

121

(ii) the amount and purpose of the allocation.

121